Posts Tagged ‘Small business’

SBA floorplan financing

When the SBA announced its dealer floorplan financing program on July 6, the industry described it as “the first step in improving access to credit for dealers.” Three weeks into the program, dealers are still finding it difficult to find banks willing to get involved with dealer floorplan financing.

Dealers trying to take advantage of the SBA floorplan lending program are encountering difficulties in finding local banks that can handle these loans. Even if they[dealers] do find these banks, dealers are saying the SBA approved branch banks are showing little or no interest in lending floorplan money to dealers, even with the 80 percent backing from SBA. Part of the reason for this is a lack of familiarity with what’s required in approving dealer floorplan lending plans.

To provide banks with more concrete information about the dealer floorplan lending program, SBA has completed a checklist and instructions for applying for a 7(a) loan as part of the dealer floorplan program. The Marine Retailers Association of America (MRAA) said in a recent dealer advisory that it expects more banks to look at the 7(A) loan program for dealer floorplans as the application process become better established and financial institutions are more comfortable in making these loans.

Dealers that have questions about the SBA approved banks should call their local field office at 916/735-1986 or e-mail their questions to: 7aquestions@sba.gov.

Source Boat and Motor Dealer

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