Congressional Tri-Caucus Introduces Proposals to Assist Minority Dealers

Washington, DC – Congressman Joe Baca (D-Rialto) today convened a joint hearing of the Congressional Hispanic Caucus (CHC) Task Forces on Corporate America and Technology, Communication, and the Arts to discuss the financial stability of minority-owned auto dealerships in the current economic downturn. 

“Minority owned auto-dealerships provide important jobs and services in many of our communities across the nation,” said Rep. Baca.  “As our nation continues to work to retool and revamp the auto industry for the twenty-first Century, we must ensure our minority dealers are not squeezed out of the picture.”  

Speakers at the hearing included representatives from the minority-owned dealerships of General Motors, Ford, and Chrysler.  The meeting was also attended by leaders of the Congressional Black Caucus (CBC) and the Congressional Asian Pacific American Caucus (CAPAC).  By meeting’s end, the CHC, CBC, and CAPAC agreed on a set of proposals to urge the Obama administration to adopt in order to assist minority auto dealers.  These included:

• Waive AAA Requirements for Automobile Loans Under the Term Asset-Backed Securities Lending Facility (TALF);
• Enact a support program for minority-owned auto dealerships similar to the auto supplier support program; and 
•  Enact a support program for minority-owned auto dealerships similar to the Emergency Dealer Assistance Program.

“Many of our minority auto dealers have already invested their entire savings into keeping their businesses afloat,” concluded Rep. Baca.  “Now, many banks are refusing to give them the capital necessary to replenish vehicles for their floor plans – and yet these same banks are relying on the government to stay solvent.  Collectively, we must work to unfreeze the credit market and remove the obstacles from banks that threaten to put too many of our minority-owned dealerships out of business.”