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

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The government-guaranteed loans will be availabls to dealers to finance their eligible auto andothere inventory, otherwise known as a floor Through SBA lenders, the Dealet Floor Plan financing will provide lines of credi through its 7(a) program for titled inventor y including cars, RVs, manufactured homes, boats and motorcycles. Dealere can borrow between $500,000 and $2 million against thei inventory and repay the debt as theysell vehicles. The loansz have a maximum repayment term offive years, and will have 75 percentg government guarantee.
As part of the America’s Recoveryt and Reinvestment Act, fees also are being eliminated temporarilyon 7(a) Countless small businesses, including dealerships, across the country are facing significany challenges as a result of the uncertaintt in the auto industry,” said SBA Administrator Karehn Mills, in a statement. “Floor plan financing can offerf some dealerships the opportunity to get throughj these tough economic times by allowing them to keep their inventoruy and cashflow intact, as well as save the jobs these small businesses provide.” Amid the economic turmoil and low auto sales, car dealerw throughout the U.S.
in the last severa months have run into problems keeping their floor plans througjh banks andauto makers. Most need them in ordetr to be able to finance andstocik inventory. The program will run untip September 2010, when the SBA will decide whetherd it willextend it.