FI showroom red and grey logo
MenuMENU
SearchSEARCH

SBA Dealer Financing Program Gets Enhancements

Enhancements made possible by the passage of the Small Business Jobs Act have been implemented into a variety of programs operated by the U.S. Small Business Administration (SBA). Among the programs benefiting from the bill is the agency’s dealer financing program.

by Staff
October 12, 2010
3 min to read


WASHINGTON — Enhancements made possible by the passage of the Small Business Jobs Act have been implemented into a variety of programs operated by the U.S. Small Business Administration (SBA). Among the programs benefiting from the bill is the agency’s dealer financing program.

Signed into law by President Barack Obama in late September, the Jobs Act has allowed the SBA to increase loan limits for its dealer financing program from $2 million to $5 million, ending a yearlong campaign by industry associations to expand the program.

Ad Loading...

Detailed in the January issue of F&I and Showroom, the National Automobile Dealers Association’s efforts to rebuild retail and dealer financing began at the height of the credit crisis in late 2008. The association’s two-pronged attack included efforts to get retail, lease and dealer financing included in the Term Asset-Backed Securities Loan Facility. The association also looked to the SBA to help restart dealer financing.

The association’s efforts resulted in the creation of the SBA’s Dealer Floor Plan Pilot Initiative, which was launched in July 2009. Among other things, it provided lenders with a 75 percent guarantee for loans of up to $2 million. The main goal was to get lenders with a history in dealer financing back into the market. Unfortunately, the guarantees weren’t enough.

The program’s low turnout led the NADA to commission a lender study to identify what it would take to attract sources to the program. The study resulted in 14 suggested program enhancements, all of which were contained in a letter sent to the SBA on Oct. 26. Among the recommendations was a request for loan limits to be increased to $5 million, which the industry won through Congress’ passage of the Jobs Act.

“Across the country, there are small businesses owners who are in a position to take that next step to grow and create jobs, and these larger loan sizes provide another tool to help them do just that,” SBA Administrator Karen Mills said.

The bill now provides the agency with enough funding to support an estimated $14 billion in lending to small businesses. The Jobs Act also includes additional resources to help increase lending to small businesses, including the State Small Business Credit Initiative, which was announced last week by the Department of Treasury. It will support $15 billion in lending through local programs and the Small Business Lending Fund, which will provide capital to local, community banks to increase their lending to small businesses.

Ad Loading...

Additionally, the new law contains $12 billion in tax credits for small businesses, including higher deductions for investing in new machines and equipment, zero capital gains for those who buy and hold small business stocks for five years, and a doubling of the maximum deduction for startups to $10,000.

For more information about the SBA’s loan programs, visit www.sba.gov.

More Auto Finance

Auto Financeby Lauren LawrenceFebruary 23, 2026

Auto Loan Forecast Bucks Market Trend

Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.

Read More →
Auto Financeby Hannah MitchellFebruary 11, 2026

Auto Credit More Plentiful

Growing access shows greater lender appetite for risk as consumers take on heavier debt burden in an inflated market.

Read More →
Auto Financeby Hannah MitchellJanuary 27, 2026

Auto Loans Long as Stretch Limos

More consumers, faced with ever-rising car prices, are adapting by agreeing to longer loan terms despite the cost of added interest payments.

Read More →
Ad Loading...
A person holds a stack of cash with a small red toy car on top.
Auto Financeby StaffJanuary 20, 2026

AutoPayPlus Launches RePayPlus

The reinsured biweekly payment program offers auto dealers with customer retention and reinsurance structure.

Read More →
F&Iby Hannah MitchellJanuary 12, 2026

Auto Credit Access Loosens

December brought some of the best borrowing availability for consumers in years, though lenders tightened their reins on riskier segments of the market.

Read More →
A hand holding small burlap money bags next to a toy red car, symbolizing auto financing, loan payments, and dealership profitability.
Industryby StaffNovember 14, 2025

Report Uncovers $4.7B Opportunity for Auto Dealers

Solving mismatched payment quotes can boost sales, profits

Read More →
Ad Loading...
Industryby Hannah MitchellNovember 10, 2025

Auto Loans More in Reach

October easier to tap despite approval rates falling

Read More →
Industryby Hannah MitchellNovember 3, 2025

Q3 Auto Loans Reveal Stress

Data reflect growing finance activity on the extreme ends of credit risk scale

Read More →
Industryby Hannah MitchellOctober 15, 2025

Debt-Strapped Auto Consumers on the Rise

The amounts owed on under-water trade-ins reach new highs.

Read More →
Ad Loading...
F&Iby Hannah MitchellOctober 10, 2025

Helping the Credit-Crunched

Though many auto consumers are finding it challenging to trade, dealers can leverage conditions to help them get over the hump.

Read More →