On the National level, the National Automobile Dealers Association (NADA) has been working with the Treasury Department to reopen the floorplan securitization market and thereby providing capital to the traditional floorplan lenders who will then have the resources they need to once again extend floorplan financing to dealers. This program is called TALF.
The initial release of TALF monies did not apply to floor plans and is not expected to significantly enhance the availability of credit for floorplan loans. The NADA is attempting to modify the eligibility criteria in subsequent fundings of the TALF as soon as possible.
On a state level, New Hampshire needs to ensure that floorplan lenders stay in the floorplan market.
If lenders do exit the marketplace or withdraw individual lines of credit, New Hampshire needs to ensure that those lenders give the affected dealers an adequate amount of time to find a new line of credit.
New Hampshire needs to encourage state banks or credit unions to enter the floorplan marketplace especially to assist dealers with floorplan needs of less than $4 million.
New Hampshire should also consider alternatives to encourage other nontraditional lenders to enter the floorplan financing market.