AIADA, NADA and NAMAD Send Joint Letter to President Obama

Dear Mr. President:

We write to convey the concerns of more than 19,000 franchised automobile dealerships on Main Streets all across America and the one million men and women who are directly employed in these local businesses. Together our associations represent every make and model of new cars and trucks (all domestic and all international nameplates) sold in the United States. Despite the fact that the best-made, most environmentally-friendly vehicles ever built are available at extremely competitive prices, the state of our entire industry is dire.

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Details on SBA Loan
Guaranty Program

NADA, NAMAD, and the Small Business Administration (SBA) have developed a joint Motor Vehicle Dealer Loan Guaranty Campaign to inform small new-car and -truck dealers about their eligibility for SBA 7(a) guaranteed loans. Small dealers who've been affected by recent economic conditions may benefit from the program. The SBA guarantees loans made by local lenders for small business applicants who cannot obtain credit on a conventional basis.

For detailed information, CLICK HERE. SBA staff will be available at NADA's Federal Regulatory Outreach Pavilion at the NADA Convention to answer dealers' questions about the program. Questions may also be directed to the NADA Hotline at 1-888-672.5147 between the hours of 8:30 A.M. and 4:30 P.M. Eastern, Monday through Friday. Callers should state that they are seeking assistance in applying for or obtaining an SBA-guaranteed loan.

David W. Westcott, Chairman
NADA Regulatory Affairs Committee

Testimony of NAMAD Before the House Financial Services Committee

Hearing on December 5, 2008

Thank you Chairman Frank and members of the Committee

I want to thank you for inviting me to speak on behalf of the small new automobile dealers in the United States.

My name is Damon Lester, and I am the President of the National Association of Minority Automobile Dealers (NAMAD). NAMAD represents over 2,000 ethnic minority automobile dealers which represent less than five percent of the overall automobile dealer network in the United States.

However, I am here today not simply to talk about ethnic minority automobile dealers but the owners of all small dealerships in the country, as the automobile industry, and this economy is facing a complete global economic meltdown. Today, small dealerships throughout the United States are suffering at an alarming rate and are running out of cash, and will close their doors if access to capital is not provided to them immediately. It is the belief of the majority of the small dealerships that they can make it through this economic turmoil that this country and the world is facing if they are provided access to capital. With this access to capital many of these dealers are convinced that they can ride out the storm that the industry and the economy is facing and survive.

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NAMAD Sends Letter of Support to the United States Treasury Department

On November 11, 2008 NAMAD President Damon Lester sent a letter to Secretary Paulson and Chairman Bernanke urging the Treasury Department to provide immediate access to capital under either the Emergency Economic Stabilization Act or other, current lending authority.

Specifically, I have asked the Treasury Department to:

• when reviewing any request associated with automobile manufacturers' "captive" finance companies, a thorough review also be conducted as to the impact automobile dealers play with the financial institutions. I also urge that financial assistance be provided to dealers at low interest rates and on favorable terms;
  
  
• dealer representatives be included in the discussions with automobile manufacturers. A healthy dealer body leads to a healthy automobile industry and a healthy economy;
  
  
• a temporary release in the lending requirements be granted to allow automobile dealers access to capital and favorable floor plan loans, which include low interest rates. I also urge that loans be made directly to automobile dealers through the federal government;
  
  
• establishment of a comprehensive automotive industry restoration package that will also provide distressed automotive dealerships owners and operators immediate access to funding that would accommodate their credit needs;

Please read the letter HERE

NAMAD Sends Letter of Support to President Bush for NADA Proposal to Implement Dealer Assistance Program

On November 4, 2008 NAMAD President Damon Lester sent a letter to the White House urging President Bush to provide immediate access to capital by way of an Automobile Dealer Emergency Loan Program and to implement steps to assist the entire retail auto industry.

1. Specifically, I have asked the President to:
   • Work with the Small Business Administration to immediately provide access to capital by way of an Automobile Dealer Emergency Loan Program.
   • Declare ethnic minority automobile dealerships a national economic disaster to qualify them for the Economic Injury Disaster Loan (EIDL) Program that is administered by the Small Business Administration
2. Provide refundable tax credits for car and truck buyers.
   • Federal support for "cash-for-clunkers"
   • Accelerated expensing/depreciation for vehicles

I've urged the President to act immediately to provide assistance to ethnic minority dealers to ensure the recovery of the nation's auto industry.

Please read the letter HERE

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