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SBA’s Floor Plan Loan Program In Effect As of July 1, 2009

Beginning July 1, RV dealerships are able to apply for Small Business Administration (SBA) guaranteed floor plan financing, designed to make it easier for dealers to borrow against their inventory and increase cash flow.

RVIA and its industry partners worked diligently to convince the SBA to include floor plan loans in its 7(a) loan guarantee program. Earlier this spring, the SBA also announced an expanded size standard for its 7(a) loan program, a change that means that more than 70,000 additional small businesses – including approximately 75 percent of RV dealers – are now eligible to apply for an SBA 7(a) loan. 

Program Overview:
Through the Dealer Floor Plan (DFP) financing pilot program, SBA provides loan guarantees for lines of credit through its 7(a) program. DFP loans are made through SBA lenders only for inventory that can be titled, such as autos, RVs, manufactured homes, boats and trailers.  The pilot program runs through Sept. 30, 2010, at which time SBA will determine whether to extend the program. Applicants will need to meet the usual 7(a) program eligibility requirements.

How It Will Work:
Under the DFP pilot program, DFP loans are available for a minimum of $500,000 up to the $2 million allowable under the 7(a) program, with a maximum repayment term of five years. Borrowers also benefit from the temporary elimination of fees on 7(a) loans made possible by the American Recovery and Reinvestment Act of 2009. DFP loans guarantees will be from 60-75 percent, depending on the type of collateral and the lenders advance rate against the wholesale price of the inventory.

Who It Will Help:
The DFP program allows SBA lending partners to prudently extend a critical line of credit in these tough economic times to viable RV dealerships. It helps restore their cash flow and in turn, save their business and countless jobs. It provides the access to capital many of them need at this critical time as they go through the transition brought on by larger changes within their industry.

Because of the severe decrease of dealer floor plan financing over the last several months, each of these loans could keep open a viable business that would have otherwise closed.

Further details of the DFP program along with FAQs, a program Fact Sheet, and the SBA's Federal Register notice on the DFP program is available at: Visit for more information on SBA-guaranteed programs.  



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