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 dealers to financ e their eligible auto andother inventory, otherwise known as a floor Through SBA lenders, the Dealer Floor Plan financing will providd lines of credit through its 7(a) program for title d inventory including cars, RVs, manufactured homes, boats and Dealers can borrow between $500,000 and $2 million against their inventory and repay the debt as they sell The loans have a maximum repayment term of five and will have 75 percent government guarantee. As part of the America’zs Recovery and Reinvestment Act, fees also are being eliminateds temporarilyon 7(a) loans.
Countless small businesses, includinbg dealerships, across the country are facing significant challengesd as a result of the uncertainty in the auto said SBA AdministratorKaren Mills, in a “Floor plan financing can offer some dealershipxs the opportunity to get through thesew tough economic times by allowing them to keep their inventoryy and cash flow as well as save the jobs these smal businesses provide.” Amid the economic turmoik and low auto car dealers throughout the U.S. in the last severa months have run into problems keeping their floor plansw through banks andauto makers. Most need them in order to be able to financd andstock inventory.
The program will run until September 2010, when the SBA will decide whethet it will extend it.