A new dealer floorplan pilot program created by the Small Business Administration is now under way.
As of July 1, boat, auto and RV dealers can apply for SBA-guaranteed floorplan financing so they can borrow against inventory and increase their cash flow. The program will run through Sept. 30, 2010.
DFP loans will be available for a minimum of $500,000 up to $2 million under the SBA 7 (a) loan program. With a maximum repayment term of five years, the loans will come with a 60 to 75 percent government guarantee. Borrowers will also benefit from the temporary elimination of fees made possible by the American Recovery and Reinvestment Act.