In what is most likely to be the final jobs bill before the interim elections, Congress gave final approval to a piece of legislation aimed at boosting lending to small businesses, which by and large includes auto dealers. tax cuts, loans, and stimulus provisions easing the flow of credit were all part of the bill designed to show that the Democrats are serious about boosting the economy.
The major inflection point for auto dealers comes in the form of federally guaranteed loans of between $2 million and $5 million. The poor sales remain the biggest challenge facing small businesses, difficulty getting loans and tight credit restrictions did not help.
Many Republicans in Washington are against the bill, which included other provisions that allowed the Treasury to purchase shares in community banks, and other aspects unrelated to the auto industry.
– By: Stephen Calogera
Source: Automotive News (Subscription Required)