The MRAA Educational Foundation and the American Boat & Yacht Council (ABYC) announced today that they have partnered to provide scholarships to attend any one of eight (8) ABYC technical workforce training and certification courses offered throughout the United States and Canada. These scholarships will be available to any and all MRAA members in good standing, and will include course fees, the study guide and the certification examination free of charge to those awarded the scholarship. A total of ten (10) scholarships worth up to $849 each will be awarded and will be honored through December 31, 2010.

You can apply online HERE.

This scholarship was founded in memory of Kevin Lodder, Lodder Marine, Fairfield, Ohio. Kevin was dedicated to the marine recreational business. The recipients of this scholarship will receive tuition at attend the Spader Total Management Workshop in Sioux Falls, South Dakota and a travel stipend of $800 to offset travel expenses (see below).

Two scholarships will be awarded in November 2009 during the Marine Dealer Conference & Expo in Orlando, Florida

Criteria

1. Applicant must be a MRAA member in good standing.
2. Applicant must be employed in a marine dealership and can have a position in any area of the dealership.
3. Dealerships can directly apply for the scholarships.

MRAA wrote recently to the federal Small Business Administration in response to the agency's Notice and Request for Comments on its new pilot initiative to establish lines of credit for floor plan financing for recreational boat dealerships. MRAA is very concerned that the guidelines as written are geared more to the business model of auto dealerships and if the guidelines remain unchanged boat dealers will not qualify for the program.

MRAA has heard from hundreds of boat dealers expressing very serious concern about the financial difficulties of several banks and financial institutions, which are unable to meet the financial demands of our industry and have significantly changed lending policies. These new banking policies, in part, caused the SBA to establish its new pilot program to allow for floor plan financing.

However, several problems with the first draft of the SBA guidelines adversely impact the success of the program with regard to boat dealerships. MRAA asked the SBA to amend its guidelines to allow for application of the program in non-title and title states, to eliminate the $500,000 threshold for minimum loan amount, to increase the maximum loan amount to $4,000,000 from $2,000,000, to use SBA loan proceeds to refinance existing or new inventory at the existing lender or for the acquisition or refinance of inventory at a new lender, to expand the definition of franchise-only dealers since that business model does not apply to recreational boating, to allow banks to be considered experienced on a case-by-case basis, and to be less restrictive on the requirement that boat dealers have to provide monthly financial statements.

"We are asking the SBA to amend its guidelines with these recommendations, which will go a long way to ensure success of the program for boat dealers. We will continue to work the SBA to craft workable guidelines," said Ed Lofgren, MRAA Chairman.

The letter that MRAA sent to Grady Hedgespeth, Director, Office of Financial Assistance, U.S. Small Business Administration is available for download in PDF format.

The federal Small Business Administration has completed a check list and guaranty application submission instructions for applying for a 7 (a) loan needed for boat floor plans. The SBA expects Lenders to maintain a complete file, including copies of all SBA forms. In addition, the SBA reminds applicants to ensure the application is complete when it is submitted.

MRAA expects more financial institutions will begin to look into the SBA 7 (a) loan guarantee program for floor plan financing, as the application process becomes established and banks become comfortable with the new program. The latest SBA instructions are dated July, 2009, but slight revisions are probable in the future.

The instruction sheet contains specific guidelines for Dealer Floor Plan applications. For example, SBA Form 4, Form 4-1, and Form 4, Schedule A are specifically identified and must be completed in the loan process. Download it in PDF format HERE.

As a reminder, applicants must first find a participating bank or financial institution. The loan officer at that bank will be able to assist in this process, but your review of these instructions and check list will greatly help your understanding of the loan application process. If you have any questions, the SBA advises boat dealers to call the local SBA field office, 916-735-1986, or email your questions to the SBA at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .