CHICAGO — A recently announced government lending program designed to reinvigorate credit markets has the NMMA asking for help to convey the importance of support for marine floorplan loans, which could be included in the program's second round of funding in April.
On March 3, the Treasury Department and the Federal Reserve Board released details of a new lending facility called the Term Asset-Backed Securities Lending Facility, or TALF, a component of the Consumer and Business Lending Initiative. The program has the potential to generate up to $1 trillion of lending for businesses and households, according to a statement by the Treasury and the Fed.
TALF is designed to reignite securitization markets by providing financing to investors to support their purchases of certain AAA-rated asset-backed securities. In the first round of the TALF program, the Federal Reserve Bank of New York will lend up to $200 billion to eligible owners of certain AAA-rated ABS-backed eligible securities for auto loans, credit card loans, student loans and SBA-guaranteed small business loans. Additional items will be available for a second round of funding in April, and among the items being actively considered are ABS backed by non-auto floorplan loans.
The NMMA requests that its members and other interested parties contact their members of Congress, the Treasury Department and the Federal Reserve Bank of New York to urge the inclusion marine floorplan loans backed by ABS into TALF.
"Including marine floorplan loans as an eligible security under TALF would provide important new liquidity to this credit market and help relieve the mounting pressure on marine retailers and marine manufacturers," according to a statement from the NMMA. "Failure to include marine dealer/floorplan loans, and any consumer credit assistance for the marine industry, in TALF would be inequitable and exacerbate an increasingly fragile financial market required for basic business operation in the U.S. marine sector."
The NMMA's full action alert, which includes key points for NMMA members to share with Congress and well as Congressional contact info, is available here.
The group is asking its members to distribute the alert to employees, distribution networks, suppliers and others.
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