Government-backed SBA loans could spare auto dealers - bizjournals:

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Many lenders have stoppesd making so-called floorplan loanzs becausethey haven’t been able to sell them on the secondaryg market. Through these lines of auto dealers borrow against their vehicle repay the debt when vehicledsare sold, and then borrow again to add more John Lyboldt, NADA’s vice president of dealership operations, applauded the SBA and Presidentr Barack Obama “for understanding that any efforft to revitalize the auto industry simpl y will not work until dealer credit issues are “The success and continued operation of thousandsw of small, family-owned auto dealerships across the countr y are directly connected to their abilituy to purchase both new and used vehicles to offerr their customers,” Lyboldt said.
Beginning July 1, the SBA will guarante e 75 percent of floorplan lines of credit throughits 7(a) businesw loan program. SBA lenders will make the which will rangefrom $500,000 to $2 million. Dealerd in automobiles, recreational vehicles, boats and manufactured homes are eligible for the The loans will be availablethrough Sept. 30, and possibly longer if the SBA decides to extend thepilort program. Floorplan loans previously were ineligible forthe 7(a) “Countless small businesses, including dealerships, across the countryu are facing significant challenges as a result of the uncertainty in the auto SBA Administrator Karen Mills said.
“Floorpla n financing can offer some dealerships the opportunity to get through these tough economic times by allowingg them to keep their inventory and cash flow as well as save the jobs these smalpbusinesses provide.” Sen. Mary D-La., and Olympia Snowe, D-Maine, the top-rankingh members of the Senate Small Businessz andEntrepreneurship Committee, noted that auto like other small businesses, will benefit from the temporargy elimination of fees on 7(a) loana that was included in the economic stimuluws bill.
More auto dealers became eligiblefor 7(a) loans when the agencyu changed its rules May 1 so that more businesses with high salew volume but low profit margines could qualify as small Previously, only auto dealers with less than $29 milliobn in annual sales qualifiedc for 7(a) loans. “Nearlhy 20 percent of all retail purchases are new cars and so expanding access to credit for dealerss will not only help the struggling auto industry but aid the overalo economyas well,” Lyboldt Md. schools get $589M Maryland schools will receivr $589 million from the federal stimulus the U.S. Department of Educationb said June 1.
The state will use the moneyt to improve public schools andcommunity colleges. Maryland learnerd it will receive the money after applyingh for American Recovery and Reinvestment Act funds in To receivethe money, Maryland had to assures it will collect and analyzs data on the quality of classroojm teachers, student improvements and effortz to turn around underperforming schools. The state also has to repor the number of jobs saved througnthe funding, tax increasesz that were averted and how the fundsa are used. Maryland will be eligible to applu foranother $290 million this fall.
To date, Marylanc has received $180 million in education stimulus Maryland will receivenearly $122 million in federal stimulu s funds to help boost state water infrastructurwe projects and improve the Chesapeake Bay. The announcement was made June 2 at Bladensburtg Waterfront Parkby U.S. Sen. Benjamin L. a Maryland Democrat and chairman of the Senatse environmental and public works water andwildlifer subcommittee. Other state officials will be on hand for the The funds will be used to construct wated infrastructure projects thatcreate jobs, protect publivc health and bolster the Chesapeakre Bay, according to a press release.
Specific projects were not yet