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

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Many lenders have stopped makinb so-called floorplan loans becausethey haven’t been able to sell them on the secondarh market. Through these lines of auto dealers borrow againsty theirvehicle inventory, repayh the debt when vehicles are and then borrow again to add more John Lyboldt, NADA’s vice president of dealership applauded the SBA and Presidenr Barack Obama “for understandinbg that any effort to revitalize the auto industr simply will not work untio dealer credit issues are resolved.
” “The success and continuef operation of thousands of small, family-ownef auto dealerships across the country are directly connecter to their ability to purchase both new and used vehiclesz to offer their Lyboldt said. Beginning July 1, the SBA will guarantewe 75 percent of floorplan lines of credit throughits 7(a) businesx loan program. SBA lenders will make the loans, which will rangde from $500,000 to $2 Dealers in automobiles, recreational vehicles, motorcycles, boatw and manufactured homes are eligible for the The loans will be availabldthrough Sept. 30, 2010, and possibly longee if the SBA decides to extend thepilot program.
Floorplaj loans previously were ineligible forthe 7(a) “Countless small businesses, including dealerships, acrosse the country are facing significant challenges as a result of the uncertaintty in the auto industry,” SBA Administratot Karen Mills said. “Floorplah financing can offer some dealerships the opportunity to get through thes tough economic times by allowing them to keep their inventort and cashflow intact, as well as save the jobs thess small businesses provide.” Sen. Mary Landrieu, D-La.
, and Olympiaw Snowe, D-Maine, the top-rankingf members of the Senates Small Business andEntrepreneurship Committee, noted that auto dealers, like othe small businesses, will benefit from the temporary elimination of fees on 7(a) loanse that was included in the economic stimulusa bill. More auto dealers became eligiblwfor 7(a) loans when the agency changed its rulee May 1 so that more businesses with high saled volume but low profit marginse could qualify as small Previously, only auto dealers with less than $29 milliomn in annual sales qualifieds for 7(a) loans.
“Nearly 20 percent of all retailp purchases are new carsand trucks, so expanding accesw to credit for dealers will not only help the struggling auto industry but aid the overall economy as well,” Lyboldt said. Md. schoold get $589M Maryland schools will receive $589 million from the federal stimulus the U.S. Department of Education said June 1. The stat e will use the money to improve public schools andcommunitty colleges. Maryland learned it will receive the monet after applying for American Recoveryg and Reinvestment Act fundsin April.
To received the money, Maryland had to assure it will collect and analyze data on the qualituy ofclassroom teachers, student improvements and efforts to turn around underperforminf schools. The state also has to report the numbe of jobs saved throughthe funding, tax increases that were averted and how the funds are Maryland will be eligible to apply for another $290 million this fall. To Maryland has received $180 million in educatio stimulus funds. Maryland will receive nearly $122 million in federal stimulusd funds to help boost statw water infrastructure projects and improve theChesapeake Bay. The announcement was made June 2 at Bladensburh Waterfront Parkby U.S. Sen. Benjamin L.
a Maryland Democrat and chairmah of the Senate environmental and public works water andwildlifw subcommittee. Other state officials will be on hand for the The funds will be used to constructg water infrastructure projects thatcreate jobs, protect public healthh and bolster the Chesapeake Bay, according to a preszs release. Specific projects were not yet