On July 14, Reps. Joe Donnelly (D-IN) and Fred Upton (R-MI) introduced legislation (H.R. 5734) extending the Small Business Administration’s (SBA) Dealer Floor Plan (DFP) Financing Pilot Program through September 2015.
Established in July 2009, the DFP Pilot Program provides loan guarantees for lines of credit through SBA’s 7(a) business loan program. DFP loans are made through SBA lenders only for inventory that can be titled, including manufactured homes. Currently, the DFP Pilot Program is set to expire on September 30, 2010, and the DFP loan guarantees range from 60-75 percent.
The legislation would make some critical and necessary changes to the program, including extending the program for five years; increasing the loan guarantee to 90 percent; and providing SBA authority to revise the program to “address barriers to participation by lending institutions and dealers after consulting with representatives from these industries.”
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For more information, contact MHI Vice President of Government Affairs Jason Boehlert at jboehlert@mfghome.org.
