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

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The government-guaranteed loans will be availablr to dealers to financ e their auto and other known in the industry as afloor plan. Througb SBA lenders, the dealer floor-plan financingt will provide lines of credit throughthe 7(a) progra for titled inventory, including cars, recreational boats and motorcycles. Dealers can borrow $500,000 to $2 milliobn against their inventory, and repay the debt as they sell The loans, which have a maximum repayment term of five will have a 75 percen government guarantee. As part of the American Recoverh andReinvestment Act, fees on 7(a) loan s are also being eliminated temporarily.
“Countless smallo businesses, including dealerships, across the country are facinfg significant challenges as a result of the uncertainth in theauto industry,” SBA Administrator Karen Mills said. “Floor-plan financing can offer some dealerships the opportunity to get through thesr tough economic times by allowing them to keep theirr inventory and cashflow intact, as well as save the jobs thesw small businesses provide.” Amid the economic turmoilp and low auto sales, car dealers nationwide have run into problemw keeping their floor plans through banks and auto Most need them to be able to financ and stock inventory.
The program will run untilp September 2010, when the SBA will decider whether toextend it.