The U.S. Senate passed a bill last Thursday that would make more money available to small businesses and potentially create 700,000 jobs. This bill sounds like it would be really helpful to small businesses like Toyota Albuquerque and other car dealerships, so then why are some Republicans opposed to the bill that President Obama so desperately wants to pass? The cars at Honda New Orleans practically sell themselves, but when consumers go there in hopes of driving away in a new car, they are unable to obtain reasonable financing.
With dealerships like Ford New York and the entire auto industry as a whole creating vehicles that are more eco-friendly and gas sippers rather than guzzlers, it makes sense that Americans need to be purchasing these new and improved cars. Just like there are programs in place that will make it financially easier for folks to upgrade their household appliances, by helping out the dealerships and small businesses, it will make it easier for Americans to purchase the more fuel efficient cars they want and need.
Republicans fear that the bill is awfully similar to the Troubled Assets Relief Program, which was the government’s bailout program a couple years ago. The new loan terms under the bill that passed 61 to 38 in the Senate will allow dealerships to obtain loans in the amount of $5 million, which is an increase from the current $2 million. All funds are federally guaranteed and distributed by the Small Business Administration. Those opposed to the bill fear that lenders will make risky decisions that will put us right back in financial crisis, and we have worked too hard to dig ourselves out of previous risky loans.
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