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RVDA Proposes Changes to SBA Floorplan Program
Posted By RVBusiness On August 5, 2009 @ 1:16 pm In Breaking News | No Comments
The National RV Dealers Association (RVDA) requested several changes to the Small Business Administration’s (SBA) Dealer Floorplan (DFP) loan program designed to get SBA inventory financing loans to eligible dealers.
In comments filed with the agency today (Aug. 5), RVDA said that while the association “appreciates SBA’s recognition that RV dealers are struggling with wholesale dealer floor plan credit . . . RVDA requests that SBA consider revising its DFP rules and regulations to encourage more lenders to enter dealer floor plan financing.”
RVDA revealed its request in a new release issued this morning.
The DFP is a pilot program that began July 1 and is scheduled to expire in September 2010. DFP loans are available for a minimum of $500,000 up to $2 million and used to finance the purchase of floorstock for auto, RV and boat dealers.
“Despite the best intent of the SBA, RVDA and its dealers are finding that the details in the proposed regulations of the program are failing to encourage new lenders to enter into dealer inventory lending,” RVDA told the SBA.
Based on comments from dealers and RV finance professionals, in the press release RVDA made several recommendations it said are designed to make the program effective, including:
In the comments, RVDA also offered its assistance to SBA and the lending community to help make the DFP program a success.
“RVDA is extremely supportive of the SBA DFP program and recognizes its potential, to help our small business members. However, some structural barriers are apparent and need revision in order to stimulate lending activity. RVDA stands ready to help educate financial institutions on the benefits of lending to the RV industry,” RVDA told the agency.
At the upcoming RV Dealers International Convention/Expo, SBA representative Ed Brown and RV finance consultant Bill Thompson of Cardinal Points Network LLC, will conduct a workshop on SBA Dealer Flooplan Financing on Oct. 7. RVDA also has complete information on the SBA DFP program, including links to SBA regional offices, in the RV Lender’s Tool Box at www.rvda.org.
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