SBA offering car dealers help - The Business Journal of the Greater Triad Area:

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The government-guaranteed loans will be available to dealerw to finance their eligible auto and other inventory, otherwise known as a floor plan. Through SBA lenders, the Dealerr Floor Plan financing will providd lines of credit throughits 7(a) program for titled inventory includinhg cars, RVs, manufactured homes, boats and motorcycles. Dealers can borrow betweenj $500,000 and $2 millionb against their inventory and repay the debt as theysell vehicles. The loans have a maximu repayment term of five and will have 75 percentgovernment guarantee. As part of the America’d Recovery and Reinvestment Act, fees also are being eliminateds temporarilyon 7(a) loans.
Countless smalpl businesses, including dealerships, across the country are facinbg significant challenges as a result of the uncertainty in the auto said SBA AdministratorKaren Mills, in a statement. “Floot plan financing can offere some dealerships the opportunity to get through these tough economivc times by allowing them to keep theird inventory and cashflow intact, as well as save the jobs these small businesses provide.” Amid the economic turmoil and low auto sales, car dealerx throughout the U.S. in the last several monthsz have run into problems keeping their floor plansz through banks andauto makers. Most need them in orderd to be able to finance andstock inventory.
The program will run until Septembeer 2010, when the SBA will decide whether it willextendc it.