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Congress passes NMMA-backed small business legislation

October 20th, 2010 / By: / Industry News

The National Marine Manufacturers Association (NMMA) applauded the passage of HR 5297, the Small Business Jobs and Credit Act of 2010. The legislation will extend the Small Business Administration’s (SBA) Dealer Floor Plan (DFP) Program for marine and other product dealers to 2013 from its current expiration date of later this month, raises loan caps from $2 million to $5 million and enables a 100-percent advance rate.

NMMA worked closely with House and Senate offices, White House and Treasury Department officials since early this year on these critical SBA DFP provisions. NMMA applauds the leadership of Senate Small Business Committee Chairman Mary Landrieu (D-La.) for her leadership on this legislation, which will be key to saving jobs within recreational boating, one of our nation’s remaining U.S.-based manufacturing industries. In June, NMMA President Thom Dammrich appeared before the Senate Small Business Committee urging inclusion of these provisions in the final legislation. NMMA and the marine industry were also mentioned several times during floor debate of the bill.

“An expanded and enhanced SBA DFP Program will more effectively serve those already participating while allowing other businesses the opportunity to take advantage of what it has to offer,” Dammrich said. “Congress has now provided a great deal of certainty with this program, and we strongly encourage lenders to utilize this important program to get credit flowing again to responsible marine companies throughout the United States.”

Extending the program to 2013 will attract a greater number and variety of lenders, shifting focus away from large financial institutions to the preferred regional and local lenders that serve as long-term partners for small businesses. The increase in loan caps from $2 to $5 million will help both dealers and manufacturers, who often hold $5 million of inventory at a time, build new manufacturing facilities or purchase specialized equipment. In addition, the 100-percent advance rate conforms to standard industry practice. Outside of the SBA DFP Program, the legislation also establishes an NMMA-supported Small Business Lending Fund that would make $30 billion in low-cost capital available to banks with assets under $10 billion to lend to small businesses. The bill also includes more than $12 billion in important, targeted tax relief.

The legislation will now go to the President’s desk to be signed into law. NMMA extends its thanks to the many marine organizations and businesses that contacted their Members of Congress to encourage support for this bill. For more information, contact Mat Dunn at 202-737-9760; mdunn@nmma.org.

Source: National Marine Manufacturers Association

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