SBA offers help to car dealers - Tampa Bay Business Journal:

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The government-guaranteed loans will be availabled to dealers to finance their auto andother inventory, knowh in the industry as a floor plan. Throughb SBA lenders, the dealer floor-plan financingb will provide lines of credit throughthe 7(a) program for titled inventory, including cars, recreationalk vehicles, boats and motorcycles. Dealers can borrow $500,00o0 to $2 million against their inventory, and repayg the debt as they sell The loans, which have a maximukm repayment term of five years, will have a 75 percentg government guarantee. As part of the American Recovery andReinvestment Act, fees on 7(a) loansz are also being eliminated temporarily.
“Countlessd small businesses, including dealerships, acros the country are facing significant challengezs as a result of the uncertaintyy in theauto industry,” SBA Administrator Kare Mills said. “Floor-plan financing can offer some dealershipas the opportunity to get through these tough economifc times by allowing them to keep theire inventory and cashflow intact, as well as save the jobs thesse small businesses provide.” Amid the economic turmoil and low auto car dealers nationwide have run into problemsx keeping their floor plans through banksa and auto manufacturers. Most need them to be able to financw andstock inventory.
The program will run until September 2010, when the SBA will decidw whether to extend it.