Senators in the U.S. Congress were unable to come to agreement on HR5297, a bill that includes, among provisions on small business job generation, the extension and improvement of the Small Business Administration’s Dealer Floor Plan Pilot program (DFP), RVIA Today Express is reporting
The House passed the bill in June; however, the House version does not include language on the DFP. The Recreation Vehicle Industry Association (RVIA) is a member of a coalition of associations that are engaged in ensuring the inclusion of the DFP’s extension and improvements in HR5297.
The sticking point in the Senate is a disagreement between Democrats and Republicans about the number and nature of amendments that can be offered on the bill. Despite support from the White House for the legislation, and a strong push from Senate Majority Leader Harry Reid, D-Nev., prior to the Senate’s departure for summer recess, the two parties could not come to agreement. Once the bill does pass the Senate, it could go either to conference between the two houses, or the House might accede to the Senate version.
“The Senate intends to take up HR 5297 upon its return in mid-September. The DFP language is not seen as a controversial point on the bill, except that the increased cap on SBA 7(a) loans to $5 million from $2 million, which includes for the DFP program, might be viewed unfavorably by a few in the House,” said Dianne Farrell, RVIA vice president of government affairs.
Additional improvements to the DFP in HR 5297 include:
- A guarantee of up to 100% of the value of the goods financed (currently capped at 80% for RVs).
- An extension of the DFP sunset to Sept. 30, 2013 (currently, Sept. 30, 2010);
- The temporary elimination of fees on loans for borrowers which was originally legislated under the American Reinvestment and Recovery Act of 2009.
These key improvements are among those sought by RVIA and the coalition even prior to the formal announcement of the DFP by SBA on July 1, 2009. However, the guarantee percentage would remain at 60% to 75% of the loan, and the repayment term would stay at not more than three years.
The DFP provides floorplan financing for assets that can be titled under state law, including automobiles, recreation vehicles, boats and manufactured homes.