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MRAA Asks Dealers to Support SBA Small Business Lending Bill |
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Late on Thursday night, July 22, the U.S. Senate voted 60 to 39 to bring closure to a filibuster of H.R. 5297, the Small Business Jobs and Credit Act, allowing a key bill for boat dealers to come to the Senate floor for a final vote on passage early this week. H.R. 5297, which has already passed the House of Representatives, would increase the loan caps for dealer floor plan financing guarantees under the SBA 7(a) loan program from the Small Business Administration from $2 million to $5 million, raise the government guarantees on SBA 7(a) loans from 75% to 90%, increase the 504 loans from $1.5 million to $5.5 million, and extend the elimination of SBA loan fees through December 31, 2010.
MRAA strongly supports this bill and asks all marine dealers to call or email their two Senate offices immediately to support the bill, H.R. 5297, and an amendment number 4450 sponsored by Senators Mary Landrieu (D-Louisiana) and George LeMieux (R-Florida) to make $30 billion available to community banks to lend to small business.
Please call today at the general switch board of the U.S. Senate at 202-224-3121 and ask to speak to your two Senators.
If you prefer to email your message, the email address usually follows the following format: senator (last name of your Senator)@(last name of your Senator).senate.gov.
ASK YOUR SENATORS TO VOTE YES ON H.R. 5297 and amendment #4450.
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HOUSE and SENATE PASS BOAT DEALER EXEMPTION to Financial Regulation Bill
On July 15, the U.S. Senate passed H.R. 4173, the House-Senate Conference Report on Financial Regulation Overhaul Bill, 60 Yea votes to 39 No votes. The House of representatives passes an identical bill on June 17 241 to 182. The Conference report now goes to the president to sign into law, which he is expected to do.
The new law was written after over a year of hearings and debate to address the causes of the financial meltdown of banks in the fall of 2008. The law, as passed today, is controversial with many believing that is does not adequately address the problems of the banking system. Wall Street generally supports the bill but Main Street has concerns.
The bill creates over 400 new federal regulations over banking, such as the creation of a financial Protection Board within the Federal Reserve Board and a Financial Service Oversight Council to further regulate banks and certain financial institutions. Lenders must follow new paperwork requirements and must get proof from borrowers that they can re-pay a loan.
"MRAA opposed this bill, because we fear it will further tighten the credit markets, create a new level of government bureaucracy and bigger government needlessly, and adversely impacts the ability of small business to create jobs," said Ed Lofgren, MRAA Chairman.
However, the good news is that after a very strong grassroots lobby effort, boat dealers have been exempted and will not be under the oversight of the newly created Financial Services Council.
MRAA thanks boat dealers for their hard work and in accomplishing what many on Capitol Hill thought was an impossible task. Again, BOAT DEALERS ARE EXEMPT.
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There’s More to the Health Care Bill Than Health Care |
MRAA has just learned the newly passed Health Care Bill will impose significant burdens on businesses by requiring them to issue a Form 1099 to all vendors where the business does more than $600.00 per year in purchases. Perhaps now we know why the Health Care bill was over 2,700 pages long.
Beginning in 2012 all businesses, tax-exempt organizations, and federal, state, and local governments will be required to issue a Form 1099 to vendors from whom they purchase goods totaling $600.00 or more during the calendar year. To meet this new requirement, businesses and other entities will have to keep track of all purchases they make by vendor. For example, is a self-employed individual makes numerous small purchases from an office supply store during a calendar year that total at least $600.00, the individual must issue a Form 1099 to the vendor and the IRS showing the exact amount of total purchases.
The problem has a very broad reach. According to an analysis by the Internal Revenue Service, about 40 million businesses and many entities will be subject to the new requirement, including roughly 26 million non-farm sole proprietorships, four million S corporations, two million C corporations, three million partnerships, two million farming businesses, one million charities and other tax-exempt organizations, and more than 100,000 government entities. All of these nearly 40 million businesses and other entities are subject to the new reporting requirements.
By reporting a purchase on a Form 1099 the purchase becomes income to the selling organization, which under previous accounting rules would have recorded the transaction as a sale. MRAA recommends all marine retailers consult with their accountants on this new requirement.
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Car/Boat Dealer Exemption Is Gaining Momentum |
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Time Critical to Act Now
After the defeat of the amendment sponsored by Rep. Luis Gutierrez (D- Illinois)(9 for to 10 against) in the conference committee on the Financial Services Reform Act yesterday, which would have stripped out marine and RV dealers for the hard fought for exclusion and substantially limited the auto exclusion, there is renewed vitality. Lawmakers are considering the exemption of auto and boat dealers from the oversight of a new consumer financial watchdog agency aimed at protecting borrowers from abusive lenders. The paperwork requirements of the act would be onerous for dealerships.
MRAA is calling its boat dealer members to immediate action by asking them to call the following Senators and Members of the House of Representatives. These Members and Senators are on the conference committee, which is negotiating the differences between the House and Senate-passed bill language.
Democratic Representatives are Frank, Kanjorski, Waters, Maloney, Gutierrez, Watt, Meeks of New York, Moore of Kansas, Kilroy, Peters, Perterson, Boswell, Waxman, Rush, Conyers, Berman, Towns, Cummings, Velazquez, Shuler and Republican Representatives are Bachus, Royce, Biggert, Capito, Hensarling, Garrett, Lucas, Barton, Smith, Issa, and Graves. Democratic Senators are Dodd, Johnson, Reed, Schumer, Lincoln, Leahy, Harkin and Republican Senators are Shelby, Crapo, Corker, Gregg, and Chambliss.
If you see your Member of Congress, call (202) 225-3121. If you see your U.S. Senator, call (202) 224-3121. Just ask to speak to either your Member of Congress or your Senator.
Ask your Member of Congress or U.S. Senator who is identified above to SUPPORT the Dealer Exemption and Inclusion of Boat Dealers.
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MRAA Welcomes News of End of Engine Assessment Redirection |
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MRAA is gratified the redirection of 85% of the Grow Boating Engine Assessment is ending July 1, 2010. This is a request we have been making since February of 2010.
MRAA also welcomed the news the Grow Boating Board of Directors had been reconvened and was taking action to re launch the program. MRAA was disappointed with the news that full funding was not being restored to Grow Boating immediately. With only 15% of the engine assessment going to fund the ongoing Discover Boating internet marketing and public relations efforts not much can change in the media marketing effort.
"Dealers who have been seeing the full Grow Boating assessment charged on their boat invoices should see those amounts reduced by 85%" was the word from Thom Dammrich, President of Grow Boating Inc. As an example the engine assessment of $41.00 for engines 100 to 199 horse power should now be $6.15 as of July 1st. For a complete listing of what the new assessment amounts should be dealers can contact MRAA's office and request the information be sent their way. There will be no change in the assessment on loose engine sales. Dealers who did not see engine assessments prior to the change should not see any changes.
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