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Last updated on Friday, May 29, 2009
(KOKOMO) - The U.S. Small Business Administration will offer government guaranteed loans to finance inventory for eligible auto, RV and watercraft dealerships beginning July 1st.
SBA Administrator Karen Mills unveiled the plan during a visit to Kokomo on Thursday with White House Auto Czar Ed Montgomery.
The goal of the initiative, known as the Dealer Floor Plan, is to help dealerships stay in business by allowing them to keep their inventory and cash flow intact.
It will stay in effect until September 2010 when the SBA will determine whether or not to extend the program.
The dealer floor plan loans can range from a half-million dollars up to two million dollars. The maximum repayment term is five years with a government guarantee of 75 percent.
The White House officials met with Senator Evan Bayh, Congressman Joe Donnelly and Kokomo Mayor Greg Goodnight in a closed-door session to outline the new plan and update them on the latest information about GM and Chrysler, both major Kokomo employers.
The SBA's Karen Mills also met with 30 to 40 small business owners to outline other SBA loan programs and benefits provided by the federal recovery act.
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