The Small Business Administration (SBA) announced this month that the agency has permanently increased its RV dealer size standard to $30 million in annual revenue. Previously, only RV dealers with annual revenue under $7 million qualified for SBA programs, according to a news release.
The Recreation Vehicle Dealers Association (RVDA) worked with the Recreation Vehicle Industry Association (RVIA) and other trade groups to secure a temporary increase in the SBA size standards to $30 million in revenues during the recession. RVDA staff discussed size standards several times with SBA staff, including a joint industry meeting with SBA Administrator Karen Mills. RVDA was able to explain the industry’s need for the larger annual revenue classification due to the high cost of RV dealer inventories.
RV dealer SBA size standards primarily apply to SBA loan and other financing programs. SBA recently broadened and enhanced its 7(a) Business Loan Guarantee Program making its financing terms more favorable for small businesses, including RV dealers.
As part of that effort, SBA extended its 7(a) Business Loan Guarantee Program to Dealer Floor Plan Financing. This will enable more than 90% of RV dealers to participate in SBA’s financing programs as that program is reconfigured to be more effective and useful for banks and dealers. For questions or more information on the change in size standards, or the SBA Dealer Floor Plan Financing program, visit the RVDA Lenders Toolbox at www.rvda.org or send an e-mail firstname.lastname@example.org.