SBA dealer financing program begins

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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.

Click here for information.

Click here for the full Marine Retailers Association of America release.

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