The Small Business Administration (SBA) is allowing small businesses to qualify for guaranteed loans based on net worth and average income, giving more credit to marine dealers. Previously, a marine dealer would only be eligible for the SBA 7(a) guaranteed loan program if annual receipts totaled less than $7 million. Now, eligibility for 7(a) loans reflects the true size of a business rather than simply relying on information from receipts. Marine dealers can qualify for loans to be used for working capital and refinancing debt if:

• its tangible net worth is less than $8.5 million
• its average net income after taxes in the past two years is less than $3 million

However, this change is temporary and will only last until Sept. 30, 2010.