Treasury website:
An overview of the Auto Supplier Support Program is below. A full fact sheet on the program can be found here:
http://www.treasury.gov/cgi-bin/redirect.cgi?http://www.treas.gov/press/releases/docs/supplier_support_program_3_18.pdf
• The program will provide suppliers with access to government-backed protection that money owed to them for the products they ship will be paid no matter what happens to the recipient car company.
• Participating suppliers will also be able to sell their receivables into the program at a modest discount. This will provide suppliers with desperately needed funding to operate their businesses and help unlock credit more broadly in the supplier industry.
• The program will be run through American auto companies that agree to participate in the program. Suppliers to those companies that agree to maintain qualifying commercial terms will have the opportunity to request this government backed protection. If granted, the supplier will pay a small fee for the right to participate in the program.
• The Treasury Department has made available up to $5 billion in financing under this program.
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