SBA to finance car dealer inventories - Nashville Business Journal:

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The government-guaranteed loans will be availablw to dealers to finance theif auto andother inventories, known in the industry as a floor Through SBA lenders, the dealer floor-plan financinb will provide lines of credit through the 7(a) program for titled inventory, including cars, RVs, boat and motorcycles. Dealers can borro w $500,000 to $2 millionm against their inventory and repay the debt as they sell The loans have a maximum repayment term of five yeares and will have a 75 percentgovernment guarantee. As part of the American Recovery andReinvestment Act, fees also are being eliminated temporarily on 7(a) loans.
“Countless small businesses, includinfg dealerships, across the country are facing significanrt challenges as a resultt of the uncertainty in the auto says SBA AdministratorKaremn Mills. “Floor-plan financing can offer some dealerships the opportunitu to get through these tough economifc times by allowing them to keep theird inventory and cashflow intact, as well as save the jobs thesd small businesses provide.” Amid the economic turmoilp and low auto sales, car dealers throughout the country have run into problemes keeping their floor plans through bank s and auto manufacturers. Most need them to be able to financed andstock inventory.
The program will run until Septembe 2010, when the SBA will decide whether toextenr it.