Report: Bill aimed at giving auto dealers more credit is signed into law

1044439287 Report: Bill aimed at giving auto dealers more credit is signed into lawThe federal government is keeping up its effort to stimulate the economy, while the economy is keeping up its resistance to those efforts. The latest effort to prod spending comes in a bill that, among other things, increases the federal guarantee for small dealer floorplan loans from the Small Business Administration from $2 million to $5 million. Part of the bill would also reinstate fee waivers that ran out in May, meaning loan applicants could save more than $50,000 in fess alone on a $2 million loan.

Federal floorplan assistance has been around for a year, but banks haven’t been receptive and some believe that raising the limit won’t change that. It is customers who are needed to provide the real relief, and in the words of a former Federal Reserve vice chairman, “If the economy grows at one and a half percent, we’re spitting in the wind because there’s no demand.”

The bill passed the House and Senate along party lines and President Obama signed it into law yesterday afternoon. This is expected to be the last jobs bill to leave Congress before the midterm elections in November.

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