MRAA Asks Dealers to Thank White House

In an announcement dated May 28, the Federal Small Business Administration announced a government guaranteed loan program for boat floor plan financing. For more information, the SBA has provided a copy of their press release, information about the new program, and frequently asked questions on its website, sba.gov/floorplanfinancing/. Under the Dealer Floor Plan pilot program, $160 billion will be made available through lines of credit under the SBA 7 (a) program. The DFP loans will be made through SBA lenders for titled inventory. The program will run through September 2010, at which time the SBA will make a determination of whether or not to extend the program.

"MRAA is very excited about the decision of the SBA and the White House to allow federal government loan guarantees for many boat dealers. The program goes into effect on July 1, but we recommend dealers learn as much as possible and apply early for the guarantees. This program is badly needed in our industry and will help many dealers at a critical time," said Ed Lofgren, MRAA Chairman.

MRAA asks dealers to thank the President for supporting our industry and approving the SBA proposal. Go to www.whitehouse.gov and click on the "Contact Us" button, enter the required information, and simply write a brief thank you note.

Dear MRAA Member,

I know you have at least considered the idea of becoming a Marine Industry Certified Dealer in the past. Well, things have changed, and I would like to give you an update. Please take a look at the information listed below. As you read, I would ask you to consider the first step by participating in a new webinar workshop only. It is just $500 - with no travel required, and with no continuing commitment beyond it. Today thousands of customers are visiting the Discover Boating website and are seeing who is a Certified dealer and who is not. As you know, given the option almost 80% of consumers would be more likely to do business with a Certified dealer.

In response to the times, there is a new focus for Marine Industry Dealership Certification. Obviously during this economic downturn dealers are looking for innovative ways to lower their costs, become more efficient, and try to find new revenue opportunities in service and sales. In response we have slashed the costs of overall certification and also have developed a new direction and content for Certification for dealers that is working well. Today, a number of dealers are taking advantage of these changes as a very inexpensive but powerful way to help insure that they will survive in rough times.

KOKOMO, IND. – The U.S. Small Business Administration will offer government guaranteed loans to finance inventory for eligible auto, recreational vehicle, boat and other dealerships under a new pilot program announced today by SBA Administrator Karen Mills.

Dealer Floor Plan (DFP) financing will be available beginning July 1, according to Mills. She announced the new program during a visit to Kokomo, Ind., with Dr. Ed Montgomery, President Barack Obama's Director of Recovery for Auto Communities and Workers.

SBA Launches New 100-Percent Guarantee ARC Loan Program To Help Struggling Businesses

"MRAA has been notified of some very positive news that will possibly help many of you in the very near future – a loan program from the Small Business Administration", said Phil Keeter, President of MRAA.

WASHINGTON – Small businesses suffering financial hardship as a result of the slow economy may be eligible to receive temporary relief to keep their doors open and get their cash flow back on track through to a new loan program announced today by SBA Administrator Karen G. Mills.

Beginning on June 15, SBA will start guaranteeing America's Recovery Capital (ARC) loans. ARC loans are deferred-payment loans of up to $35,000 available to established, viable, for-profit small businesses that need short-term help to make their principal and interest payments on existing qualifying debt. ARC loans are interest-free to the borrower, 100 percent guaranteed by the SBA, and have no SBA fees associated with them.

"These ARC loans can provide the critical capital and support many small businesses need to make it through these tough economic times," said Administrator Mills. "Together with other provisions of the Recovery Act, ARC loans will free up capital and put more money in the hands of small business owners when they need it the most. This will help viable small businesses continue to grow and thrive and create new jobs in communities across the country."

As part of the Recovery Act, the ARC program was created as a no-interest, deferred payment loan to help small businesses that have a history of good performance, but as a result of the tough economy, are struggling to make debt payments.

ARC loans will be disbursed within a period of up to six months and will provide funds to be used for payments of principal and interest for existing, qualifying small business debt including mortgages, term and revolving lines of credit, capital leases, credit card obligations and notes payable to vendors, suppliers and utilities. Repayment will not begin until 12 months after the final disbursement. Borrowers don't have to pay interest on ARC loans. After the 12-moth deferral period, borrowers will pay back the loan principal over a period of five years.

ARC loans will be made by commercial lenders, not SBA directly. For more information on ARC loans, visit www.sba.gov