The U.S. Small Business Administration (SBA) has announced a Dealer Floor Plan (DFP) financing pilot program under the SBA 7(a) loan program for qualifying small businesses including new and used motorcycle, automobile, RV, manufactured home, and boat dealerships. The DFP pilot program is effective from July 1, 2009 through September 10, 2010, at which time the SBA will decide whether or not to extend the program.
DFP loans will be made only for inventory that can be titled. Available loan amounts will range from $500,000 to $2 million with a maximum repayment term of five years and will come with a 75 percent government guarantee. Additionally, borrowers will receive the fee reduction benefit provided by the American Recovery and Reinvestment Act of 2009.
“Taking advantage of the SBA Dealer Floor Plan financing program may be just the lifeline some dealerships need to get through these challenging economic times,” said MIC President Tim Buche.
The SBA’s FAQ on the Dealer Floor Plan Financing program can be found at http://www.sba.gov/floorplanfinancing.
