Small Business Finance News
SBA To Help The Auto Industry
Written by Miriam Lamey
Published: 5/29/2009
New financing program should also boost the economy.
A recent press release from the Small Business Administration announced great news for small businesses in that the organization will offer floor plan financing to some auto dealerships.
The Dealer Floor Plan (DFP) financing package will start July 1 of this year and loan guarantees for the DFP program will be available under the SBA's 7(a) loan scheme.
The floor plan financing works to allow dealers to take out these loans against their inventory and pay back the money as they sell their product.
These loans will be made available to those who sell autos, RVs, manufactured home, boats and motorcycles.
SBA administrator, Karen Mills explained how this new system will both aid the economy and hopefully prevent more workers from losing their jobs., presenting inspiring news for small business owners in this field.
"Floor plan financing can offer some dealerships the opportunity to get through these tough economic times by allowing them to keep their inventory and cash flow intact, as well as save the jobs these small businesses provide," she said.
The SBA plans to run this offer until September 2010, when it will then reevaluate the economy and auto industry to see if the DFP program needs to be extended.
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