Nearly 80 percent of boat dealers have applied for a loan from the Small Business Administration as part of the federal stimulus programs, but the vast majority of those who responded to a survey conducted by the Marine Retailers Association of the Americas report a lack of clarity on where things stand.
“I have applied, and according to my banker, our funds have been ‘reserved’ with the SBA,” commented one dealer. “Still waiting to hear on what the next steps will be, and I have been given no indication as to when I might receive the funds.”
Responses to the question: What is your intention related to loans
made available through the stimulus programs for your dealership?
In a survey fielded by the MRAA from April 7 through April 9, a total of 78 percent of dealers reported that they had already applied for a loan and another 10 percent indicated that they plan to apply. There were 453 dealers that responded to the survey, including 213 written comments.
Generally, the open-ended comments outline a lack of clarity on when the loans will be funded and what, if any, next steps will be necessary. Individual dealers report filing for loans as far back as March 19th. At the time, the Economic Injury Disaster Loan process was open for applications. Those EIDL loans were intended to help cover six months’ worth of operational expenses and promised an advance of $10,000 within three days of application.
“It has been slow and not much information or update on where I stand on the loans,” wrote one dealer. “It says 3 days. It now has been 14 days. Also did the PPP on Friday and have not heard anything back on that also.”
“I have not heard back on my SBA loan request or the payroll request yet,” commented another. “It has been more than three days, and I have not received the $10,000 grant.”
“I applied for the EIDL loan on March 19th and the $10K advance on March 30th, but have not seen any funds as yet,” said another.
While the survey did not specifically ask whether or not any loans had been funded, no dealer’s open-ended comments indicated anyone had received their loan.
Survey comments seemed to suggest a general understanding that the loan programs were instituted quickly and both the SBA and their local banks were still trying to figure out the details.
“My local lender says it will be another week or two before they can get to my application,” explained one dealer. “They received so many they had to place a hold on accepting any further.”
“It took a week and a half for all the communication to get ironed out regarding how to calculate, what documents were required and creating an online app,” outlined another dealer. “I know that the banks had a lot of concerns that took time to resolve with the government. The app finally got into the bank yesterday, so we’ll see how smooth it goes from here.”
“The process was slow, as the administrators of the stimulus programs are trying to figure it all out too,” another dealer reported. “They are making it up as they go along. Let’s hope it all comes together soon.”
“I am in the queue, and they say someone will contact me to complete the forms,” wrote another dealer, “but I’m concerned by the time they get to us, funds may be gone to others.”
“It’s not good,” summarized one dealer. “Had to update our app six times because the process keeps changing.”
And there has been a clear lack of follow up from the banks on the status of loans.
“On Friday last week, I applied for the PPP through my bank as well as a local credit union,” noted one dealer. “Both have allowed me to make the initial online request, but neither is ready to complete the process or willing to let me know if I will be accepted.”
“I applied with my local credit union who is SBA affiliated,” commented another dealer. “Haven’t heard back from them nor will they return my emails or phone calls.”
But for the most part, the dealer respondents held out hope that the system would get ironed out sooner rather than later.
“So far, so good,” noted one dealer. “It’s a complicated and time-consuming bureaucratic process. The forms changed midway in the process, so at that point we had to start over. It should be worth the effort, especially in support of our employees. We’re expecting the money to be in sometime next week.”
“We have the approval,” said another. “Just waiting to find out when and how we will be funded.”