SBA re-launches Dealer Floor Plan loan program

Feb. 7, 2011

Feb. 7, 2011 — The U.S. Small Business Administration (SBA) on Feb. 8 plans to re-launch a loan program meant to increase access to inventory financing for dealerships.

First made available in July 2009, the Dealer Floor Plan (DFP) pilot loan program was originally offered as a way to expand the availability of floor plan financing during the credit crunch of the time, said SBA Deputy Administrator Marie Johns. The Small Business Jobs Act of 2010 included a provision for re-launching the program with a maximum loan increase from $2 million to $5 million.

“Dealerships are a cornerstone of local business communities,” Johns said. “As we continue to see our economy recover, the re-launch of this pilot provides another tool, alongside SBA’s other programs, to help them succeed and create jobs in their local communities.”

DFP financing is a revolving line of credit that allows dealerships to get financing for automobiles, RVs, boats and other inventory that can be titled, according to the SBA. As inventory is sold, a loan advance against each item is repaid, and the dealer can borrow against the line of credit to add new inventory.

The program is available to qualifying small businesses. Rules and regulations for the program will be posted Feb. 8 on The Federal Register website and a procedural guide to the program will be posted on the SBA site.

Sponsored Recommendations

Best Body Shop and the 360-Degree-Concept

Spanesi ‘360-Degree-Concept’ Enables Kansas Body Shop to Complete High-Quality Repairs

How Fender Bender Operator of the Year, Morrow Collision Center, Achieves Their Spot-On Measurements

Learn how Fender Bender Operator of the Year, Morrison Collision Center, equipped their new collision facility with “sleek and modern” equipment and tools from Spanesi Americas...

ADAS Applications: What They Are & What They Do

Learn how ADAS utilizes sensors such as radar, sonar, lidar and cameras to perceive the world around the vehicle, and either provide critical information to the driver or take...

Banking on Bigger Profits with a Heavy-Duty Truck Paint Booth

The addition of a heavy-duty paint booth for oversized trucks & vehicles can open the door to new or expanded service opportunities.