The Marine Retailers Association of America applauded President Obama's proposal Wednesday to raise the maximum size of SBA-backed loans to small businesses.
"Marine retailers have been hard hit by the recession. MRAA has assisted the SBA in setting up workable loan programs for the marine industry," said MRAA chairman Ed Lofgren. "We understand several dealers are in the final review process for the SBA floorplan financing loan guarantees. This announcement will only enhance the program and make it available to more small-sized dealers and hopefully help dealers get through these tough times."
Specifically, President Obama called for:
- Increasing the size of SBA 7(a) loans used for dealer floorplan financing from $2 million to $5 million
- Increasing the size of SBA 504 loans used for purchase or expansion of physical plants from $2 million to $5 million for standard borrowers (supporting a total project of $12.5 million) and from $4 million to $5 million for manufacturers (supporting a total project of $13.75 million)
- Increasing the size of microloans from $35,000 to $50,000.