The Small Business Administration is set to introduce a new guaranteed loan program for vehicle dealerships today at Salem State College, as well as announce the start of a long-expected loan program intended to keep businesses afloat in the turbulent economy.

The event is a chance to discuss a brand-new loan program for auto, recreational vehicle, motorcycle, boat and manufactured home dealers. Such dealers will be able to borrow $500,000 to $2 million in a floor plan financing deal. With such a program, dealers borrow against their inventory, and then repay that debt as they sell their inventory or borrow against the line of credit again to add new inventory.

The program comes with a 75 percent government guarantee, and has a maximum repayment period of five years. The program is in effect until September 2010. At that point, the SBA will re-evaluate the program and consider renewing it.

Members of the SBA are joining Congressman John F. Tierney, D-MA, to lay out the new plans, as well as discuss the successes SBA borrowers have seen for new programs already underway this year under federal economic stimulus packages.

Also, after first announcing the America’s Recovery Capital program in February, the SBA has unveiled the start date for the up-to-$35,000, 100 percent guaranteed loan program on June 15. ARC loans have no fees and no interest, and are specifically meant to provide an extra boost to otherwise-successful small businesses that need cash to stay alive during the recession. These loans will be disbursed within a period of up to six months, and can be used for payments of principal and interest for debts such as mortgages, capital leases and credit card obligations.