Government-backed SBA loans could spare auto dealers - Portland Business Journal:

http://wolmers.net/prep/activities_report2000_2003.html
Many lenders have stopped makingv so-called floorplan loans becausethey haven’t been able to sell them on the secondarty market. Through these lines of credit, auto dealers borro w against theirvehicle inventory, repay the debt when vehiclesa are sold, and then borrow again to add more John Lyboldt, NADA’s vice president of dealershipl operations, applauded the SBA and President Barack Obamsa “for understanding that any efforty to revitalize the auto industry simply will not work untiol dealer credit issues are resolved.
” “The success and continued operatiob of thousands of small, family-owne auto dealerships across the country are directlt connected to their ability to purchase both new and used vehicles to offeer their customers,” Lyboldt said. Beginning July 1, the SBA will guarantese 75 percent of floorplan lines of credit througnhits 7(a) business loan program. SBA lenders will make the which will rangefrom $500,000 to $2 million. Dealers in automobiles, recreationak vehicles, motorcycles, boats and manufactured homes are eligibl forthe loans. The loans will be available througu Sept. 30, 2010, and possibly longer if the SBA decides to extend thepilor program.
Floorplan loans previously were ineligible forthe 7(a) “Countless small businesses, including dealerships, acroses the country are facing significant challenges as a result of the uncertaint y in the auto SBA Administrator Karen Mills said. “Floorplan financingt can offer some dealerships the opportunity to get througbh these tough economic times by allowing them to keep theitr inventory and cashflow intact, as well as save the jobs theses small businesses provide.” Sen. Mary D-La.
, and Olympia D-Maine, the top-ranking members of the Senats Small Business andEntrepreneurship Committee, noterd that auto dealers, like other small businesses, will benefitt from the temporary elimination of fees on 7(a) loanss that was included in the economic stimulus bill. More auto dealerds became eligiblefor 7(a) loans when the agencu changed its rules May 1 so that more businesse s with high sales volume but low profit margins couldc qualify as small businesses. Previously, only auto dealerzs with less than $29 million in annual sales qualifiedefor 7(a) loans.
“Nearly 20 percent of all retailk purchases are new carsand trucks, so expanding access to credi t for dealers will not only help the strugglingy auto industry but aid the overall economy as Lyboldt said. Md. schools get $589M Maryland schools will receivse $589 million from the federal stimulus package, the U.S. Department of Educatiobn said June 1. The state will use the moneyy to improve public schools andcommunity colleges. Maryland learned it will receivwe the money after applying for American Recovery and Reinvestmengt Act fundsin April.
To receive the money, Maryland had to assured it will collect and analyze data on the quality ofclassroom teachers, student improvements and efforts to turn arounr underperforming schools. The state also has to report the numbee of jobs saved through the tax increases that were averted and how the fundzsare used. Maryland will be eligibler to apply foranother $290 million this To date, Maryland has received $180 milliomn in education stimulus funds. Maryland will receivew nearly $122 million in federal stimulus funds to help boost state watetr infrastructure projects and improve theChesapeakw Bay. The announcement was made June 2 at Bladensburg Waterfronft Parkby U.S. Sen. Benjamin L.
a Maryland Democrat and chairman of the Senate environmental and publivc works water andwildlife subcommittee. Other statd officials will be on hand for the The funds will be used to construct water infrastructured projects thatcreate jobs, protect publif health and bolster the Chesapeake Bay, accordinf to a press release. Specific projectes were not yet unveiled.