Minority Dealers Seek Financial Aid

http://www.EmploymentCrossing.com Disadvantaged minority-owned car dealerships need $500 million dollars in direct loans and loan guarantees, the National Association of Minority Automobile Dealers has told Congress. The groups chairman, Desmond Roberts, says a "substantial" number of minority dealers -- black dealers in particular who own domestic franchises are in "dire straits." He describes a disadvantaged dealer as any dealer who has been turned down even for high interest loans. Many minority dealers fit that description face failure by year end, he adds. The CEOs of the Big Three automakers are asking congressional leaders to fund a $25 billion loan program for the industry. Roberts says the minority dealers' request has a precedent. As part of the deal that bailed out Chrysler in 1979, the Carter Administration set aside $12 million in direct loans and $200 million to $300 million in guaranteed loans to assist minority auto dealers. When Roberts became a dealer in 1984, there were 125 black entrepreneurs that owned GM dealerships, Roberts says. Currently, there are fewer than 50. GM has about 340 minority owned dealerships out of 6,550. Two hundred and seventy-one of Ford Motor Co.'s 4,056 dealerships are owned by minority dealers.

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YouTube | September 20, 2008

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