Is the SBA's Floorplan Loan Program working?

[XDCX]

I've read a number of stories about the SBA's Floorplan Loan Program for dealers who are in jeopardy of closing their stores because they're not able to secure Floorplan financing. Chrysler even makes reference to the program on the DealerConnect Home Page.

Is the program working?

As the list of dealerships that have been closed due to GMAC grows I have to wonder why the SBA program didn't provide any assistance?

I read a story over the weekend where the SBA has not issued a single Floorplan Loan to any boat/marine dealers - despite the fact the program's been active for over a month.

I wonder if the SBA has issued any loans to car dealers?

Here's a link to the news report - click here

[scooter]

I have not written in a while, and I hate to have my current message be a negative one but here goes...This SBA floorplan program is a joke and a complete waste of time. I called the SBA department and had them send me the list of eligible banks (it was over 500 banks). I was told to call some of our local banks for this program, this list was a few years old and some of the contact people on the list were no longer working there. I called about 10-12 banks and none of them were doing the program, they said they did not have the manpower to do the inventory inspections. After getting numerous rejections, I called the regional SBA office in Fresno. They told me that none of the banks have signed up for the program, even though, at the time, SBA was advertising that they have been accepting applications!!!! The SBA rep said how they work is they produce a product like the floor plan program and then wait for dealers to call the banks, and then they determine the need by how many banks call them to sign up. This is government false advertisement at its finest, what a crock of $hit. I have called the banks again and now not getting many call backs, and same goes for the SBA. I did write a letter to our local Senators and Speaker of the House and still waiting to hear back from them. Anyway we will keep fighting the battle and do what we have to do. Hey it feels pretty good to be involved in the dealership foum again, talk to you soon....

[XDCX]

Originally Posted by scooter

Anyway we will keep fighting the battle and do what we have to do. Hey it feels pretty good to be involved in the dealership foum again, talk to you soon....

scooter - It's great to hear from you again and I'm sorry that you've been battling with your local banks and the SBA.

It's frustrating that the NADA, the OEMs and the politicians all make reference to this wonderful program from the SBA to help dealers but it doesn't work. What good is a SBA loan guarantee if none of the banks want to participate?

To the extent there are dealers across the country who are closing down because GMAC has pulled their flooring, I wonder if there are ANY dealers who have benefited from the SBA program?

Please let us know if you think there's anything we can do to help. I have contacts at the Wall Street Journal and the L.A. Times if you think a national spotlight might help your situation.

[blauto]

I had the same experience as Scooter. I saw the announcements from NADA regarding the new program, called them, and they new nothing. THey told me to go to SBA web site. This happened 2 or 3 times. I actually called NADA and asked them why they would take credit for a program that had absolutely no users nor would ever have. I finally called SBA office in Philadelphia. Talked to heads of that department. They had no idea why I would call them looking for a floorplan. Nobody had ever done a floorplan. THis last month they announced a new refined version. I actually got 4 names of Banks and administrators. One of the administrators still worked for the banks, and the only one that would even consider a loan was to an existing customer who had some serious cash on deposit.
The up side - I got to be on a first name basis with the SBA administrator - Andrea.

[XDCX]

Originally Posted by blauto

I had the same experience as Scooter. I saw the announcements from NADA regarding the new program, called them, and they new nothing. THey told me to go to SBA web site. This happened 2 or 3 times. I actually called NADA and asked them why they would take credit for a program that had absolutely no users nor would ever have.

blauto - Great post. Thanks for sharing your experience.

In my opinion this issue deserves national attention. It's a perfect example of a government agency creating a program that no one can use.

Based on the posts in this thread I'm willing to bet there's not a single dealer in the country who has managed to use this program. The NADA and the OEMs love to promote this program, but what good does that do if none of the SBA Banks are willing to participate?

[srt]

We went through the motions on this and it was laughable. All the banks were not interested. It seems like alot of these current ideas from Washington are total CRAP.

[crowe]

SBA Floor Plan??
“just one loan has been approved through the floor plan lending project, although the SBA "says others are in the queue”
http://money.cnn.com/2009/08/31/smal...ce=yahoo_quote

[XDCX]

Originally Posted by crowe

SBA Floor Plan??
“just one loan has been approved through the floor plan lending project, although the SBA "says others are in the queue”
http://money.cnn.com/2009/08/31/smal...ce=yahoo_quote

Thanks for the update - I just had a chance to read that article.

It's amazing that after all they hype from the NADA and the OEMs that there has only been ONE dealer who has been able to use the SBA's program. What a disgrace.

[Marie]

We haven't been able to find a bank that works on this program.

[XDCX]

Originally Posted by Marie

We haven't been able to find a bank that works on this program.

Marie - First post - Welcome to DealershipForum.com

I think you've discovered what every other dealer who's investigated this program has discovered - the SBA Floorplan Loan Program is a joke.

In my opinion, the only thing worse than identifying a problem and failing to resolve it is identifying a problem and then creating a program that appears to fix the problem but actually doesn't do anything.

The OEMs, NADA and government all pat themselves on the back for helping create a worthless program that does nothing to help the dealers. It's a shame there has not been more media attention on what a failure this program has been and how many dealers have been forced to close because they could not get a floorplan loan.

Sorry for the rant - this topic is like touching a raw nerve with me.