WASHINGTON, D.C. — U.S. Small Business Administration officials announced at the National Automobile Dealers Association's convention this weekend that a pilot loan program aimed at increasing access to inventory financing for auto, boat, RV and other dealerships will be relaunched Wednesday.

SBA indicated the Small Business Jobs Act of 2010 included a provision for relaunching SBA's Dealer Floor Plan Pilot Loan program, which first became available in July 2009. The administration said the pilot is part of the SBA's overall 7(a) loan guarantee program.

Officials pointed out 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.

SBA noted the program will be effective through Sept. 30, 2013.

"As a result of the credit crunch in late 2008 and early 2009, dealerships saw a significant decline in the availability of this type of inventory financing," SBA deputy administrator Marie Johns explained.

"SBA's original DFP pilot program was launched as a way to expand the availability of floor plan financing and the Jobs Act added further enhancements to that program, including allowing for larger loan sizes," Johns continued.

The administration reiterated that floor plan financing is the revolving line of credit that allows a dealership to obtain financing through SBA's 7(a) program for inventory that can be titled, such as vehicles, RVs, manufactured homes, boats and trailers.

As each piece of collateral is sold by the dealer, SBA stressed the loan advance against that piece of collateral is repaid. As the loan is repaid, the dealer can borrow against the line of credit to add new inventory.

The administration emphasized the program is available to qualifying small businesses, including new and used automobile, motorcycle, RV, manufactured homes and boat dealers. The administration noted it has issued a new maximum alternative size standard to allow businesses with $15 million net worth and $5 million in net income measured over two years to have program access.

Officials also said all SBA-approved lenders may make DFP loans. They mentioned lenders with more than $1 billion of floor plan lines of credit in their current portfolios may apply for delegated authority, which could expedite the lending process.

SBA indicated complete program rules and regulations will be available today on the website of the Federal Register and in print editions tomorrow

Officials added that a procedural guide to the program will be posted on the SBA website at http://www.sba.gov/content/dealer-floor-plan-financing-program-0.

Borrowers interested in obtaining a DFP loan should contact their lender or their nearest SBA field office to get a list of SBA-approved lenders in their area who may be participating in the program.

Local district offices and contact information, as well as information on this and other SBA programs and resources, can be found at http://www.sba.gov/ or by calling the SBA Answer Desk at (800) U-ASK-SBA.

"Dealerships are a cornerstone of local business communities," Johns stressed. "As we continue to see our economy recover, the relaunch of this pilot provides another tool, alongside SBA's other programs, to help them succeed and create jobs in their local communities."