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New campaign alerts dealers of SBA loans

November 15, 2010

A new Motor Vehicle Dealer Loan Guaranty Campaign has been launched to inform small new-car and -truck dealers about their eligibility for guaranteed loans from the Small Business Administration.

The campaign, organized by the SBA with the National Automobile Dealers Association and the National Association of Minority Automobile Dealers, tries to educate dealerships with total annual receipts of less than $29 million about their eligibility for SBA 7(a) guaranteed loans.

Small dealers who have been affected by recent economic conditions may benefit from the program. The SBA guarantees loans made by local lenders for small business applicants who cannot obtain credit on a conventional basis. Loan eligibility does not mean automatic application approval.

The SBA indicated loan proceeds can be used for any "worthwhile purpose," including working capital and the refinancing of existing debts, but not for inventory floor planning.

Questions about the program can be directed to the NADA Hotline, 888-672-5147, 7:30 a.m. to 3:30 p.m. CST, Monday through Friday. Callers should indicate that they are seeking assistance in applying for or obtaining an SBA-guaranteed loan.

Note: The NADA will not be able to answer questions on specific loan applications.

 

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