Energy Department Finishes Guidelines For $25 Billion Auto Loan In 30 Days

November 6, 2008 7:48 a.m. EST

Washington, D.C. (AHN) - The Energy Department issued Wednesday the interim rules for the $25 billion loan under the Advanced Technology Vehicles Manufacturing Incentive Program.

Under the guidelines, which will be effective upon publication in the Federal Register, there is no limit how much loan Ford Motor, General Motor and Chrysler could be granted. To qualify for a loan, Energy Secretary Samuel Bodman must determine if the applicant is financially viable without additional federal funding and could pay interest and principle payments on time.

The department completed the interim rules in 30 days, half of the two months it was mandated by the law the created the program.

But the top 3 car manufacturers feel the $25 billion is not sufficient to meet their large capital requirement to produce vehicles that would meet higher fuel efficiency and cleaner emission standards. They plan to seek an audience with House Speaker Nancy Pelosi to ask for another $25 billion loan.