The U.S. Small Business Administration (SBA) has instituted a pilot program that is intended to provide small businesses with the tools and resources they need to survive in the current economic climate. Through their Dealer Floor Plan program, the SBA will offer government-guaranteed loans to finance inventory for eligible motor vehicle dealers, including motorcycle retailers to help restore their cash flow, and in turn, save their businesses and countless jobs.
Because of the severe decrease of dealer floor plan financing over the last several months, each loan will most likely keep open a business that would have otherwise closed. A number of large, traditional floor plan lenders have recently left the market due to their inability to sell loans into the secondary market.
DFP loans will be available for a minimum of $500,000 up to a maximum of $2 million. A loan fee reduction will be extended to borrowers, and the maximum loan guarantee will be 75%. Maximum loan terms will be 5 years.
The program will run through September 30, 2010, at which time the SBA will determine whether to extend the program further.
For more information, and how to identify and contact the SBA-approved lender nearest to you, go to www.sba.gov .
Posts
