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Staff Photo by John Rawlston
Stacy W. Greenwood, general manager of the Cleveland Boat Center, talks with customer Brandi Fielder in the store's showroom on Wednesday. The business is the first marine dealership in the nation to receive a loan under the Small Business Administration's Dealer Floor Plan.
CLEVELAND, Tenn. -- A local boat shop is the first marine retailer in the nation to receive a loan through a pilot program handled by the Small Business Administration, according to a national marine retailers group.
According to the Marine Retailers Association of America, Cleveland Boat Center, 3125 Waterlevel Highway, is the first business of its kind to receive a dealer floor plan loan to help finance inventory after the economic climate dried up credit sources.
Randy Wattenbarger, who has owned Cleveland Boat Center for 37 years, said existing lenders either got out of marine inventory financing or changed the way they provided their loans.
"It really left a lot of dealers in a quandary," he said.
The SBA program guarantees Mr. Wattenbarger a line of credit from $500,000 to $4 million, he said. The arrangement will help stock the store until the recession-hit economy improves.
"We feel it will help us maintain profitability in these difficult times," Mr. Wattenbarger said.
Shane Jackson, loan officer at Citizens National Bank in Athens, Tenn., said he was happy to help steer the loan through the process.
"Citizens National Bank is proud to be able to offer these types of loans to small businesses like Randy's that have been a part of our community for many generations," Mr. Jackson said.
Ed Lofgren, chairman of the Marine Retailers Association of America, said the federal government directed the Small Business Administration to administer the stimulus program in April, and it is finally beginning to pay off.
Trade group officials "have worked tirelessly with SBA to bring about solutions to the crisis," he said. "We are extremely excited that these efforts are beginning to bear fruit."
Mr. Wattenbarger said the loan will help keep Cleveland Boat Center's prices down and inventory up.
"Our SBA loan has provided our business with manageable terms and increased flexibility," he said. It is helping us preserve jobs and keep boats available to local boaters at a price they can afford."
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