Dems agree on auto bridge loan plan

WASHINGTON, Dec. 5 (UPI) -- Congressional Democrats said Friday they have agreed on a plan for short-term loans that one lawmaker said would carry U.S. automakers "well into" next year.

Congressional leaders said they expected to hold votes on the legislation during a special session next week, The New York Times reported.

Rep. Barney Frank, D-Mass. -- chairman of the House Financial Services Committee -- told NBC News Friday night the plan involves using funds from a $25 billion loan that has already authorized for technology upgrades, to allow automakers to meet cash flow needs in the short term.

"What we believe is that $25 billion will get us well into the next year," he said.

Frank said Congress would reserve the right to replace that money with funds from a U.S. rescue fund that President George W. Bush has resisted using to help the Big Three automakers address their immediate cash problems. He said Congress would have a freer hand in the matter after Bush leaves office.

"They won't be able to stop us then," Frank said.

Earlier in the day, he said the jump in U.S. unemployment helped galvanize support for federal assistance for automakers. With a bad economy and a jump in unemployment from 6.5 percent to 6.7 percent in November, doing nothing to help the automakers would "make things worse," he said after a hearing on whether the government should provide $34 billion to Detroit automakers.

Chief executive officers from Ford Motor Co., General Motors Corp. and Chrysler LLC were on Capitol Hill for two days of testimony on their request for government aid, appearing before the House Financial Services Committee Friday and the Senate Banking Committee Thursday.

The United Auto Workers president, in advocating approval of a bridge loan, said his union believes GM and Chrysler will have to liquidate if they don't get some sort of funds.