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

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The government-guaranteed loans will be available to dealerss to finance their auto andother inventory, known in the industry as a floor plan. Througb SBA lenders, the deale floor-plan financing will providwe lines of credit throughthe 7(a) programj for titled inventory, including cars, recreationalk vehicles, boats and motorcycles. Dealers can borroww $500,000 to $2 million against their and repay the debt as theysell vehicles. The loans, whicb have a maximum repayment term of five will have a 75 percentgovernmenf guarantee. As part of the American Recovery andReinvestmengt Act, fees on 7(a) loans are also being eliminated temporarily.
“Countless smallo businesses, including dealerships, across the country are facing significany challenges as a result of the uncertaintt in theauto industry,” SBA Administrator Karen Mills “Floor-plan financing can offer some dealershipds the opportunity to get through these tough economic times by allowing them to keep theie inventory and cash flow intact, as well as save the jobs thesr small businesses provide.” Amid the economifc turmoil and low auto sales, car dealerzs nationwide have run into problems keeping their floof plans through banks and auto manufacturers. Most need them to be able to financed andstock inventory.
The prograj will run until Septemberf 2010, when the SBA will decide whether toextend it.