Need a Loan or Dealer Floor Plan Program?

Temporary relief is on the way to leagues of small businesses and boat dealers suffering financial hardships, thanks to two new loan programs offered by the Small Business Association including ARC Loans and DFP Loans.

ARC LOANS

Effective June 15, the SBA will start guaranteeing America’s Recovery Capital (ARC) loans, which are deferred-payment loans of up to $35,000. These are available to established, viable, for-profit small businesses that need short-term help in making principal and interest payments on existing, qualifying debt. ARC loans are interest-free and 100% guaranteed, plus are free of SBA fees and interest. Repayment begins 12 months following final disbursement and carry over a five year period.

“These ARC loans can provide the critical capital and support many small businesses need to make it through these tough economic times,” said SBA Administrator Karen G. Mills. “This will help viable small businesses continue to grow and thrive and create new jobs in communities across the country.”

Click here for information on the loans.

DEALER FLOOR PLAN (DFP) LOAN PROGRAM

The new pilot program that offers government guaranteed loans to finance inventory for boat, auto and RV dealerships begins on July 1 under the auspices of the SBA’s 7(a) program. These loans come with a 75% government guarantee, with maximum repayment terms of five years and are available for a minimum of $500,000 up to $2 million. The loan is only available for inventory that can be titled.

“The availability of floor plan loans through this SBA program will provide marine dealers with a potential source of financing urgently needed by many, and stimulate orders to manufacturers who will build and ship new product,” said NMMA President Thom Dammrich whose association worked with the SBA, Congress, the National Marine Bankers Association, the MRAA and the Recreational Vehicle Industry Association, to develop this much-needed new initiative.

Eligibility for DFP loans require small business status, with total annual receipts under $7 million, or tangible net worth not to exceed $8.5 million, with an average net income after federal income taxes for the preceding two complete fiscal years not in excess of $3 million. Some 1200 institutions are approved to make SBA; to view the available list of lending sources, visit www.sba.gov/localresources/index.html.

For more information about the loan programs, contact SBA at 800-8-ASK-SBA or contact Cindy Squires with the NMMA at (202) 737-9766 or email csquires@nmma.org.

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