SBA offers car dealers help – Puget Sound Business Journal (Seattle):

The government-guaranteed loans will be available to dealers to finance their auto andother inventory, knownb in the industry as a floor plan. Through SBA lenders, the dealer floor-plan financing will provide linesw of credit throughthe 7(a) program for titled inventory, including cars, RVs, boats and Dealers can borrow $500,000 to $2 milliobn against their inventory and repay the debt as they sell The loans have a maximum repayment term of five year s and will have a 75 percent government guarantee. As part of the Americajn Recovery andReinvestment Act, fees also are beinfg eliminated temporarily on 7(a) loans.
“Countless small including dealerships, across the country are facing significanrt challenges as a result of the uncertainthy in the auto says SBA AdministratorKaren Mills. “Floor-plan financing can offer some dealerships the opportunity to get througy these tough economic times by allowiny them to keep their inventory and cash flow as well as save the jobs these smallkbusinesses provide.” Amid the economic turmoil and low auto car dealers throughout the country have run into problemw keeping their floor plans throughu banks and auto Most need them to be able to finance and stocko inventory.
The program will run until Septembef 2010, when the SBA will decide whether toextende it.
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