SBA restarts flooring loan program
February 8, 2011
Filed under Features
A loan program aimed at helping dealers access flooring financing will be relaunched Wednesday, according to the U.S. Small Business Administration.
The Dealer Floor Plan (DFP) Pilot Loan program, which was first available in July 2009, has been reintroduced because of a provision in the Small Business Jobs Act of 2010. With the Jobs Act, dealers can now borrow 7(a) loans up to $5 million, up from the previous $2 million limit. The new program will run through Sept. 30, 2013.
“As a result of the credit crunch in late 2008 and early 2009, dealerships saw a significant decline in the availability of this type of inventory financing,” SBA Deputy Administrator Marie Johns said in a press release. “SBA’s original DFP pilot program was launched as a way to expand the availability of floor plan financing and the Jobs Act added further enhancements to that program, including allowing for larger loan sizes.”
The program is open to qualified small businesses, including dealers of new and used motorcycles, automobiles, RVs, manufactured homes and boats. Those qualifying include business with up to $15 million net worth and $5 net income over two years.
Details of the program are available at www.sba.gov/content/dealer-floor-plan-financing-program-0 or by calling 800/U-ASK-SBA or 704/344-6640.