Today, President Obama today signed legislation that will
raise limits to $5 million on federally guaranteed loans available to
thousands of small auto dealers. Previously, the limit on the pilot program for the U.S. Small Business Administration was set at $2 million.
Over 18 months ago, we at Auto Dealer People and Auto Dealer Monthly lobbied hard for dealers to submit their own testimony for it to be submitted as part of dealers Bob and Mary Cockerham's testimony to the U.S. Senate. We were at first excited when it appeared that their efforts had been rewarded by the Senate to help give qualified dealers in dire need, the floor plan support they needed.
Over the last 18 months we learned that it was only a token victory as l
have cited government red tape and fees, their own staffing constraints
and lack of familiarity with floorplan financing to turn a deaf ear towards dealers. Only 61 SBA-backed floor plans have been approved, and they total just $61M.
While I am hopeful, to me, with the critical November elections approaching, this seems more like a political ploy than anything that will appreciably help dealers. Whether $2M or $5M, you still have to have a willing lender.
What do you think?