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

jiqatili.wordpress.com
The government-guaranteed loans will be available to dealeres to finance their eligible auto andothe inventory, otherwise known as a floor plan. Through SBA the Dealer Floor Plan financint will provide lines of credit throughits 7(a) program for titled inventory includinf cars, RVs, manufactured homes, boats and motorcycles. Dealers can borros between $500,000 and $2 million againsg their inventory and repay the debt as theysell vehicles. The loanxs have a maximum repayment term offive years, and will have 75 percenyt government guarantee. As part of the America’ws Recovery and Reinvestment Act, fees also are being eliminated temporaril yon 7(a) loans.
Countless small businesses, including dealerships, acrosds the country are facing significant challenges as a resulft of the uncertainty in the auto said SBA AdministratorKaren Mills, in a statement. “Flooer plan financing can offer some dealerships the opportunity to get througbh these tough economic times by allowing them to keep theirr inventory and cashflow intact, as well as save the jobs these small businesses provide.” Amid the economic turmoilp and low auto sales, car dealers throughout the U.S. in the last severapl months have run into problems keepiny their floor plans through banks andauto makers. Most need them in orde r to be able to finance andstock inventory.
The prograj will run until September 2010, when the SBA will decided whether it willextend it.