WASHINGTON — President Obama has proposed raising the maximum loan size for SBA-backed loans to small business, MRAA reported in a release to its members this week.
Specifically, the President called for increasing the size of SBA 7(a) loans for dealer floorplan financing from $2 million to $5 million; increasing the size of SBA 504 loans used for purchase or expansion of physical plants from $2 million to $5 million for standard borrowers and from $4 million to $5 million for manufacturers; and increasing the size of microloans from $35,000 to $50,000.
MRAA said that it and a coalition of big ticket retailers and manufacturers have worked with the administration to increase the loan limits, especially for 7(a) loans for dealer floorplan financing.
“MRAA has assisted the SBA in setting up workable loan programs for the marine industry,” Ed Lofgren, MRAA chairman, said in the release. “We understand several dealers are in the final review process for the SBA floorplan financing loan guarantees. This announcement will only enhance the program and make it available to more small sized dealers and hopefully help dealers get through these tough times.”
The proposal must now be considered by Congress. A fact sheet on the proposal can be found here.