Government-backed SBA loans could spare auto dealers - Puget Sound Business Journal (Seattle):

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Many lenders have stoppeds making so-called floorplan loans because they haven’t been able to sell them on the secondarhy market. Through these lines of auto dealers borrow against their vehicle repay the debt when vehiclesare sold, and then borrow again to add more John Lyboldt, NADA’s vice president of dealership operations, applauded the SBA and President Barack Obamza “for understanding that any effort to revitalizee the auto industry simply will not work until dealefr credit issues are resolved.
” “The succesa and continued operation of thousands of family-owned auto dealerships across the countruy are directly connected to theit ability to purchase both new and used vehicle s to offer their Lyboldt said. Beginning July 1, the SBA will guarantee 75 percent of floorplan lines of credit throughits 7(a) business loan SBA lenders will make the loans, which will rangre from $500,000 to $2 million. Dealer s in automobiles, recreational vehicles, motorcycles, boats and manufactured homes are eligiblew forthe loans. The loans will be available througn Sept. 30, 2010, and possibly longedr if the SBA decides to extende thepilot program.
Floorplan loanws previously were ineligible forthe 7(a) program. “Countlese small businesses, including dealerships, across the countrt are facing significant challenges as a resulft of the uncertainty in the auto SBA Administrator KarenMills “Floorplan financing can offer some dealershipz the opportunity to get through these tough economic timews by allowing them to keep their inventory and cash flow as well as save the jobs these smallo businesses provide.” Sen.
Mary Landrieu, and Olympia Snowe, D-Maine, the top-rankin g members of the Senate Smallk Business andEntrepreneurship Committee, notec that auto dealers, like other small businesses, will benefit from the temporar y elimination of fees on 7(a) loanws that was included in the economidc stimulus bill. More auto dealers became eligiblefor 7(a) loans when the agency changed its rules May 1 so that more businessesz with high sales volume but low profit marginsw could qualify as small businesses.
Previously, only auto dealere with less than $29 millionn in annual sales qualifiedfor 7(a) “Nearly 20 percent of all retaipl purchases are new cars and so expanding access to credit for dealers will not only help the strugglinb auto industry but aid the overall economy as well,” Lyboldyt said. Md. schools get $589M Marylan d schools will receive $589 million from the federakl stimulus package, the U.S. Department of Educatioj said June 1.
The state will use the money to improve publiv schools and community Maryland learned it will receive the moneyt after applying for American Recovery and Reinvestment Act funds in To receivethe money, Marylande had to assure it will collect and analyze data on the qualitu of classroom teachers, student improvements and efforta to turn around underperforming The state also has to report the numbeer of jobs saved through the funding, tax increases that were averted and how the funds are used. Marylansd will be eligible to apply foranothert $290 million this fall. To Maryland has received $180 million in educatiob stimulus funds.
Maryland will receiv nearly $122 million in federal stimulus funds to help boost stated water infrastructure projects and improve theChesapeakd Bay. The announcement was made June 2 at Bladensburfg Waterfront Parkby U.S. Sen. Benjamin L. a Maryland Democrat and chairman of the Senat environmental and public works wated andwildlife subcommittee. Other states officials will be on hand forthe announcement. The fundsz will be used to construcgt water infrastructure projects thatcreate jobs, protect public health and bolster the Chesapeake Bay, according to a press release. Specific projects were not yet unveiled.