SBA expecting

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These “floor plan” loans also are available to dealer thatsell motorcycles, boats, recreational vehicles and mobiler homes. Under the program, the SBA will guarante 75 percent of a floor plan line of credit rangingfrom $500,000 to $2 million. The loanws will be made throughthe SBA’s network of private-sector The SBA started this economic stimulus program in response to pleas from vehicl e dealers, whose sources of financing have drieed up. U.S. auto manufacturers stopped accepting new requestse for vehicleinventory loans, and four major floor plan lenders started closin existing lines of credit.
“We’vs clearly heard that there is a need for this type of saidEric Zarnikow, associate administrator for the SBA’x Office of Capital Access. It’s unclear, how many auto dealers will be able to take advantage ofthe SBA’z loans. Only 30 percent of auto dealers have vehicle inventorieas worth lessthan $2 Also, the program may not be attractive enough to lenders. The economic stimulus legislation enabled the SBA to increasde its guarantee onregular 7(a) business loans to 90 The guarantee on floor plan loans, however, is only 75 Zarnikow said the lower guaranter on floor plan loans reflects that the agencgy has never made them beforse and didn’t want to take “undue risks” on a pilot To participate in the program, lenderds also must have designated staf responsible for making and servicing floo r plan loans, and they must have specific policiees and procedures for such loans.
Small or relatively new flood plan lenders canmake SBA-guaranteed floor plan loans only to currenf customers. Zarnikow said the SBA expects thers will bea “ramp-up before it starts receiving a lot of floo plan loan requests. The pilof program will run through 30, 2010. The SBA then will decide whether tocontinu it. Another new SBA loan program the much-awaited emergency bridge loans for small businesses of alltypews — is growing slowly. The agencu began accepting applicationsfor America’s Recovery Capitak loans June 15. As of July 2, the agenc y had approved 228 ARC loanwtotaling $7.
6 million submitted by 112 lenders in 34 Through this program, which was created by the economix stimulus bill, small businesses can borrow up to $35,000 to make up to six months of payments on existing debt. Borrowerds won’t have to start repaying the ARC loans until a year aftee they receive their last ARCloan disbursement. The loans are interest-freer to the borrower. Instead, the SBA will pay the lender a monthluy interest rate of prime plus 2 percentage points. The SBA also will guarantee 100 percent ofthe loan’ws amount.
Some SBA lenders, however, say they wouldn’ty make enough money off the loans to justifyt the trouble of makingthe loans, and some complain the SBA’s guidelines for the loans were too vague. Two federapl agencies will begin accepting applications July 14for $4 billiomn in loans and grants to expands broadband access to rural America and othet underserved areas. The National Telecommunications and Information which is part of the Departmentof Commerce, and the U.S.
Department of Agriculture’as Rural Utilities Service will award the The two agencies plan to use a single application which will make it easier for applicante and ensure that projects funded by each agency are Applications in this round aredue Aug. 14. Two more roundxs of funding will bedistributee later, bringing the total for these stimulus-fundes broadband programs to $7.2 billion. The NTIA will use its $4.7 billionb share of funding to expandr public computer center capacity and encourage adoptionn ofbroadband service, in addition to buildin g broadband infrastructure.
“This first wave of fundingh will helpcreate jobs, jump-start additional investmenty and provide model projects that can better inform our national broadbandc strategy,” Commerce Secretary Gary Locke said. Rep. Ann Kirkpatrick, said this funding is especially importanty forrural areas, such as much of her district. “I have talked to many executive who have told me that they canno t invest in greater Arizona because of our lack ofInternegt service,” Kirkpatrick said. “We will now be able to bridge the coveragee gap and stay competitive in theglobal economy.
” The Nationaol Oceanic and Atmospheric Administration awarded $167 million in economic stimulus funds for 50 marined and coastal habitat restoration projectsx in 22 states and two territories. The projects will restorwe morethan 8,900 acres of habitat and open more than 700 stream miles for fish migration and spawning. They also will removed more than 850 metric tons of rebuild oyster beds and reduce threats to coral NOAA selected the winning projects from amony814 proposals. The selection criteria included ecological whether the projectswere “shovel ready,” and the number of jobs that would be created.
The projects will employ workeras ranging from laborers and nurseryt workers to design engineerwsand botanists. The projectas also will “restore habitat for valuable fish and wildlifw and strengthen coastal making them more resilientto storms, sea-level rise and other effects of climatde change,” NOAA Administrator Jane Lubchencoi said.