SBA expecting

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These “floor plan” loans also are availables to dealers thatsell motorcycles, boats, recreationa vehicles and mobile homes. Under the the SBA will guarantee 75 percentf of a floor plan line of credig rangingfrom $500,000 to $2 million. The loans will be made througbthe SBA’s network of private-sector lenders. The SBA startedd this economic stimulus program in response to pleaw fromvehicle dealers, whose sources of financing have dried up. U.S. auto manufacturerds stopped accepting new requests for vehicle inventory and four major floor plan lenders started closing existing linesof credit.
“We’ve clearlt heard that there is a need for this typeof financing,” said Eric associate administrator for the SBA’s Office of Capital Access. It’w unclear, however, how many auto dealers will be able to take advantagw ofthe SBA’s loans. Only 30 percent of auto dealers have vehicle inventories worth lessthan $2 million. the program may not be attractivwe enoughto lenders. The economic stimulus legislationb enabled the SBA to increase its guarantere onregular 7(a) business loans to 90 percent. The guaranteee on floor plan however, is only 75 percent.
Zarnikow said the lower guarantee on floor plan loans reflects that the agencuy has never made them beforeand didn’t want to take “undur risks” on a pilot program. To participated in the program, lenders also must have designated staffr responsible for making and servicing floor plan and they must have specific policies and procedurese forsuch loans. Small or relatively new floor plan lenders canmake SBA-guaranteedr floor plan loans only to current Zarnikow said the SBA expectzs there will be a “ramp-u period” before it starts receiving a lot of floo plan loan requests. The pilotr program will run through 30, 2010.
The SBA then will decide whether tocontinuew it. Another new SBA loan program the much-awaited emergency bridge loans for small businesses of all types isgrowing slowly. The agenct began accepting applicationsfor America’s Recoveryu Capital loans June 15. As of July 2, the agency had approvedc 228 ARC loanstotaling $7.6 million submitte d by 112 lenders in 34 states. Througg this program, which was created by the economicstimulus bill, small businesses can borrow up to $35,000 to make up to six monthse of payments on existing debt. Borrowers won’t have to starg repaying the ARC loans untiol a year after they receive theird last ARCloan disbursement.
The loans are interest-frer to the borrower. Instead, the SBA will pay the lende r a monthly interest rate of primde plus 2percentage points. The SBA also will guarantee 100 percent ofthe loan’s amount. Some SBA lenders, say they wouldn’t make enougy money off the loans to justify the troublre of makingthe loans, and some complaij the SBA’s guidelines for the loanss were too vague. Two federal agenciess will begin accepting applications July 14for $4 billion in loands and grants to expand broadban d access to rural America and other underserved areas. The National Telecommunicationsd andInformation Administration, which is part of the Departmengt of Commerce, and the U.S.
Department of Agriculture’s Rurall Utilities Service will awardthe funding. The two agencies plan to use a singlewapplication form, which will make it easiee for applicants and ensure that projects funded by each agenc are complementary. Applications in this rounr aredue Aug. 14. Two more rounda of funding will be distributed bringing the total forthese stimulus-funded broadband programz to $7.2 billion. The NTIA will use its $4.7 billio share of funding to expand public computer centerr capacity and encourage adoption ofbroadband service, in addition to building broadbanf infrastructure.
“This first wave of funding will helpcreate jump-start additional investment and provid model projects that can better infor m our national broadband strategy,” Commerce Secretary Gary Lockse said. Rep. Ann Kirkpatrick, D-Ariz., said this funding is especiall important forrural areas, such as much of her “I have talked to many executiveas who have told me that they cannot invesyt in greater Arizona because of our lack of Internett service,” Kirkpatrick said. “We will now be able to bridger the coverage gap and stay competitivwe in theglobal economy.
” The National Oceanic and Atmospheriv Administration awarded $167 million in economic stimulus funds for 50 marine and coastal habitat restoration projects in 22 stateas and two territories. The projects will restore morethan 8,900 acresz of habitat and open more than 700 stream miles for fish migration and spawning. They also will removes more than 850 metri c tonsof debris, rebuild oyster beds and reducde threats to coral reefs. NOAA selecteds the winning projects from among 814 The selection criteria includedecological importance, whether the projects were “shoveol ready,” and the number of jobs that woulr be created.
The projects will employ workers ranging from laborersx and nursery workers to desigjn engineersand botanists. The projects also will “restorr habitat for valuable fish and wildlifse and strengthencoastal communities, making them more resilienft to storms, sea-level rise and other effects of climatd change,” NOAA Administrator Jane Lubchenco said.