The Recreation Vehicle Industry Association (RVIA) today (Nov. 18) announced the addition of a workshop on a USDA guaranteed loan program during the upcoming 47th Annual National RV Trade Show, Dec. 1-3 at the Kentucky Exposition Center (KEC) in Louisville.
The seminar, presented by Mark Brodziski, business and community program director for the U.S. Department of Agriculture (USDA), will outline specifics of the Business and Industry (B&I) Guaranteed Loan Program designed to save or create jobs in rural areas across America. According to the e-newsletter RV Today Express, Brodziski will cover a number of items of interest to RV industry members, including:
- Who Can Get a USDA Loan? USDA loans are available to ALL businesses — dealers, manufacturers, suppliers — in rural areas with less than 50,000 in population. If a company’s headquarters location is not in a rural area, but the plant or business location that needs the funding is, the project should be eligible.
- Is Money Available? USDA provides guarantees on bank loans, it does not make loans. USDA state offices received their regular fund allocation for 2009, and guaranteed funding is available. The federal guarantee (70% to 80%) and a ready secondary market for repurchase of the loans makes the loans attractive to banks and financial institutions.
- What Kinds of Loans Are Available? There is no minimum loan amount, and up to $10 million can be approved in most states. Loans of more than $10 million require Washington, D.C., USDA approval. Loans can be used for: working capital; debt refinancing; equipment, land, machinery or another business purchase; construction, enlargement or modernization of a business; and more. However, B&I loans are not offered for floorplan/revolving credit purposes.
- Do Many Lenders Participate in This Program? Yes, this is not a pilot program. USDA loans are well-established and made through local lending institutions. B&I lenders are very aware of and comfortable with B&I loans because they’ve been involved with them for a number of years. Lenders in qualifying areas participating in B&I loans include banks, credit unions, and savings and loans. Some national lenders also participate.
Brodziski will also discuss the terms and timing of loans, type of assistance available, equity requirements, interest rates, eligible lenders and much more. “This is sure to be an informative program and one that may be the answer for many industry members looking for financing,” noted Dianne Farrell, RVIA vice president of government affairs.
The workshop will be held Wednesday, Dec. 2 in Room C208 of the KEC. Registration is required, and a full breakfast for workshop attendees will be served at 7:30a.m.; the program begins at 8:00a.m. Registration fee is $40.