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Senators ask Obama to help restore liquidity of floorplan lenders

November 15, 2010

Sen. Jeanne Shaheen (D-N.H.), a member of the Senate Small Business Committee, is enlisting fellow senators to sign a letter urging President Obama to restore all types of credit—retail loans, working capital loans, and wholesale inventory (or "floorplan") loans—to help the nation’s auto dealers.

The letter cited floorplan credit as the most critical to dealers. "A dealer losing access to floorplanning will close within a matter of days," the letter states. "This problem is not limited to dealers with domestic nameplates and is not limited to any one region of the country."

The letter calls on Obama to expand access to Small Business Administration lending capacity for dealers and to work with the Fed to see that the Term Asset-backed Securities Loan Facility (TALF) injects essential liquidity for floorplan loans.

"If TALF is too cumbersome to meet this objective in the short term," the letter states, "then create another mechanism to restore lending in these areas. Time is of the essence."

The NADA urges Illinois dealers to ask Sen. Dick Durbrin to sign the letter. His Chicago office is 312-353-4952.