SBA Revisits Inventory Financing
Credit unions and other lenders looking to increase access to inventory financing for auto, boat, RV and other dealerships will be able to do so again through the relaunch of an SBA pilot loan program.
The Small Business Jobs Act of 2010 included a provision for relaunching the SBA's Dealer Floor Plan Pilot Loan program, which first became available in July 2009 and was made available again Feb. 8, according to the SBA. The pilot is part of the SBA's overall 7(a) loan guarantee program. The Jobs Act also increased the maximum size for 7(a) loans to $5 million, up from $2 million, which includes loans made through the DFP pilot program.