Floor Plan Financing Program Law and Legal Definition
Dealer Floor Plan financing is available through Small Business Administration’s 7(a) loan guarantee program. An open-end extension of credit is guaranteed to a small business concern for purchase of eligible retails foods for resale. Eligible retail goods include an automobile, recreational vehicle, boat, and manufactured home. An open-end extension of credit has a term of not more than 5 years. Credit given is in an amount not less than $ 500,000 and not more than $ 5,000,000. The lender for an open-end extension of credit may allow the borrower to draw funds on the line of credit in an amount equal to not more than 100 percent of the value of the eligible retail goods to be purchased.
