Administration Plans to Loan $5B to Auto Parts Manufacturers

By GottaLaff

The Big 3 aren't getting the money, struggling parts suppliers are:

The Obama administration announced today that it will offer as much as $5 billion in assistance to support the web of auto parts manufacturers that supply the U.S. car industry.

The program in essence improves the cash flow for the struggling auto parts manufacturers who sell their products to U.S. auto companies.

Typically, the supply companies receive payment from the car companies about 45 days after the parts are delivered. The federal program will guarantee those payments from participating auto companies, which already include GM and Chrysler.

Press release here.

Obama to announce steps to aid small businesses

By GottaLaff

What a socialist:

U.S. President Barack Obama will announce steps on Monday to make it easier for small business owners to borrow money, using $730 million in stimulus funds to cut lending fees, boost loan guarantees and expand other programs, officials said. [...]

The Obama administration believes small businesses, which accounted for about 70 percent of new job growth over the past 10 years, will ultimately drive the recovery from the current recession, one of worst in decades, a U.S. official said. [...]

Obama and Treasury Secretary Timothy Geithner will announce a plan to increase federal guarantees under the SBA's most widely used loan program, an official said. [...]

The administration also plans eliminate a number of borrower and lender fees on loans originated through its main loan program and a program to encourage long-term borrowing for major fixed assets like land and buildings.

As part of his financial stability plan in February, Geithner said the administration would boost secondary lending markets that buy up loans and would encourage small business lending by targeting markets that buy small business loans.

Bush Will Deign To Save Detroit

Just catching bits and pieces off MSNBC. 17 bil with lots of strings attached. More when I get it.

WASHINGTON - President George W. Bush will make an announcement about a rescue plan for the ailing U.S. automakers at 9 a.m. ET Friday, the White House said.

He's expected to announce that automakers will get $13.4 billion in short-term financing, which would come from the government's $700 billion financial bailout fund. An additional $4 billion could be available in February.

The auto companies must use the funds to become financially sound. If they are not financially viable by March 31, 2009, the loans will be called and all of the funds will be returned to Treasury. By the government's definition, financial viability is a positive net present value, which takes into account all current and future costs and can fully repay the government loan.

White House, Democrats Reach Deal on $15 Billion Auto Aid

By GottaLaff

Early reporting:

Democratic leaders and the White House reached a deal to provide billions of dollars in relief to the ailing U.S. auto industry, a senior congressional aide told Reuters on Friday.

The package, which Democratic leaders hope to win passage of next week and send to President George W. Bush, totals between $15 billion and $17 billion, the aide said, speaking on condition of anonymity.

The amount is less than the $34 billion the auto guys requested . It's an interim move until Obama takes office, apparently. Pelosi is reported to have changed her tune after the latest unemployment report.