Bush approves funding for $25 billion program
GOVERNMENT LOANS FOR AUTOMAKERS
Automotive News | October 1, 2008 - 9:18 am EST
WASHINGTON — Funding now is available to launch a $25 billion program of low-interest federal loans to automakers and suppliers.
Late Tuesday, Sept. 30, President Bush signed a broad spending bill that keeps government operating in the new fiscal year that began today.
The measure includes $7.5 billion to initiate the industry loan program, which was authorized but not funded by an energy law enacted last year.
The bill signing starts a 60-day period during which the Energy Department must write rules that will govern operation of the loan program.
Automakers, mainly the Detroit 3, and their congressional allies say they hope loans will be available early next year. But Bush administration officials say it may take as long as 18 months to meet legal and procedural requirements before the loans are issued.
The loan program, championed initially by the UAW, is designed to help companies retool to produce more fuel-efficient vehicles. Increasingly, the loans are viewed as a financial lifeline for companies hit by plunging vehicle sales and soaring credit costs.
There may be more credit relief for the industry if Congress and the White House can agree on a separate $700 billion rescue plan for the nation’s financial system.
