The U.S. Small Business Administration is now offering government guaranteed loans to finance inventory for eligible auto, recreational vehicle, boat and other dealerships under a new pilot program announced by SBA Administrator Karen Mills.

Dealer Floor Plan (DFP) financing will be available beginning July 1. Under the DFP pilot program, the SBA will provide loan guarantees for lines of credit through  its 7(a) program. DFP loans will be made through SBA lenders only for titled inventory,  including autos, RVs, manufactured homes, boats and motorcycles.  The pilot program will  begin July 1 and will be available through Sept. 30, 2010, at which time the SBA will make the determination of whether or not to