The Recreation Vehicle Dealers Association (RVDA) praised the Small Business Administration (SBA) for reviving its pilot loan program aimed at increasing access to inventory financing for RV and other vehicle dealers.
The rules and regulations for the pilot will be available Monday (Feb. 8) on the SBA’s website and through links from the RVDA Lenders Toolbox at www.rvda.org. Dealers can start submitting loan applications for the federally backed loans on Tuesday.
“We are pleased that SBA is moving forward with the program and that the maximum size for floorplan loans is now $5 million,” said RVDA President Mike Molino. “RVDA worked with the agency on a number of ideas to improve the program. We look forward to reviewing the new rules and providing useful information to members interested in exploring SBA loans.”
SBA said that borrowers interested in obtaining a DFP loan should contact their lender or their nearest SBA field office to get a list of SBA-approved lenders in their area who may be participating in the program. Local district offices and contact information, as well as information on this and other SBA programs and resources, can be found at www.sba.gov or by calling the SBA Answer Desk at (800) U-ASK-SBA.
The Small Business Jobs Act of 2010 included a provision for continuing the Dealer Floor Plan (DFP) Pilot Loan program, which is part of the SBA’s overall 7(a) loan guarantee program. The Jobs Act also increased the maximum size for 7(a) loans to $5 million, up from $2 million.