HELP FIX THE FLOORPLAN PROBLEM!
Contact Your U.S. Senators and Urge Them to
Support
Small Business Administration (SBA) Loans
for RV Floorplan Loans
RV dealers and their volunteer leaders agree: the number one issue
facing the RV industry is financing. The Obama
Administration must turn its attention on the severe impact of the
credit crisis on RV dealers and the urgent need for floorplan
credit. Without retail credit and floorplan loans, even
well-capitalized dealers can be out of business. Preserving
floorplan lending is essential to keeping dealers in business and
purchasing new RVs. The RV industry will not recover until the retail
credit and floorplan problem is fixed.
RVDA is urging the President and Congress to support the following
policy recommendations. These recommendations also have the
support of the National Automobile Dealers Association (NADA).
1. Expand access to Small Business Administration (SBA) lending
capacity for dealers. The Administration has the statutory
authority to expand the SBA size standard that today excludes many
dealers. Also, the Administration has the statutory authority to
allow SBA's guarantee program to be used for floorplan loans that
currently are ineligible under the program. An emergency directive
implementing these two changes would increase access to credit for small
business dealers all across the country.
2. Restore liquidity for RV retail and floorplan lenders. Work with
the Federal Reserve Board to make sure that the Term Asset-backed
Securities Loan Facility (TALF) injects essential liquidity by
revitalizing securitization of RV retail and floorplan loans. If TALF is
too cumbersome to meet this objective in the short term, then create
another mechanism to restore lending in these areas. Time is of the
essence.
President Obama's pick for the SBA's new administrator, Karen Mills,
told Senators at her confirmation hearing that she "would be very
interested" to look at the SBA floorplan loan policy "quickly and see
what the possibilities are to help." It's time to urge the
Administration and Congress to transfer those words into action.
Please contact your U.S. Senators and urge them to support changes in
SBA loan policies that can help RV dealers.
To contact your U.S. Senators click
here.
RVDA will post regular updates and more information at www.rvda.org. Thanks for your
support.
Mike Molino, CAE
President, RVDA
