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RVIA’s Economic Efforts Making A Difference

As the nation continues to struggle with extreme market conditions, RVIA has received good news on the legislative front regarding one of the industry's most challenging economic problems- lack of dealer floor plan and consumer financing.

RVIA is now having direct discussions with the Treasury Department and the Federal Reserve asking them to include RV dealer floor plan and consumer loans in the list of securities they will purchase as part of an asset-backed term loan facility (TALF).  The Chairman of the House Financial Services Committee clarified on the House floor on January 14 that the Federal Reserve should include RV dealer floor plan and consumer loans in TALF to encourage banks to make these loans on traditional terms and improve the availability of credit.

In other positive news, legislation introduced on January 9 (HR 384), addresses the release of the second half of the $700 Billion TARP funds  and contains a provision that permits the Treasury Department to include RV dealer floor plan loans and consumer loans in TALF.  

Currently, the list of securities purchased by TALF is limited to auto floor plan and consumer loans, student loans, credit card loans and Small Business Administration loans.  But Congressmen Peter De Fazio (D-Ore) and Joe Donnelly (D-Ind) persuaded Committee Chairman Barney Frank to modify his bill to include RV loans in TALF. 

While President Obama asked for TARP funds this week without limiting conditions, the legislative language has helped in RVIA’s conversations with the Treasury Department about the state of the RV industry and the need for improved credit flow. 

What would inclusion of RV business and consumer loans in TALF mean to the RV industry?  TALF has been given $20 billion from TARP to directly purchase business and consumer loans that have been packaged into securities.  Once banks see there is a secondary market for these loans - a market that does not exist today - they will be inclined to make the loans to businesses and consumers, thus improving the availability of credit.

Another piece of positive legislative news, unrelated to RV financing, is that the House Ways and Means Committee has released its proposed Economic Recovery Package (not yet assigned a bill number) which will provide critical tax, health, job training benefits and incentives to create jobs.

Included in the bill is a provision which extends the two-year carry back period for net operating losses (NOL) to five years for businesses, excluding companies receiving TARP benefits, as well as Fannie Mae and Freddie Mac. RVIA along with a broad coalition of businesses and associations supported this provision.

For complete details on the package, visit:



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