Phillippi and other analysts said GM's stock rally was fueled by speculation that an agreement on the loan program was near. They said GM benefited more than Ford Motor Co. because the loans would help assuage concerns about its liquidity. David Healy of Burnham Securities Inc. said the loans should give GM some more breathing room. 'If the government is going to bail out the banking system, they may pay similar attention to GM,' he said. 'That should help with their liquidity issues.' After the market's close on Friday, GM announced that it would draw down the remaining $3.5 billion of a $4.5 billion secured credit facility arranged two years ago to 'maintain a high level of flexibility for its ongoing restructuring during these uncertain times in the capital markets.' The automaker also announced a $322 million debt to equity exchange, issuing 28.3million new shares of common stock against convertible debentures maturing in June. The money will be used to retire $750 million in debt due in October and pay more than $1.2billion to Delphi Corp. as part of its reorganization. Ford's stock closed up a penny Friday at $5.29. Analysts already think Ford, which secured a $23 billion finance package two years ago, has enough money to make it until 2010 when the full benefits of a new contract between Detroit's automakers and the United Auto Workers go into effect. But many have worried that GM might not be able to make it until then. Auto and heavy-duty truck parts suppliers visited more than 40 Congressional offices Friday, urging legislators and key aides to fund the auto loans next week before the legislative session ends. 'We felt very positive about the reception we got on Capitol Hill,' said Ann McCulloch, director of external affairs for the Motor and Equipment Manufacturers Association. McCulloch, whose organization represents 700 suppliers, said they reminded lawmakers that Congress and the president agreed last year as part of the Energy Independence and Security Act to provide $25 billion in low interest loans to help the domestic auto industry retool to make more fuel-efficient vehicles. The funding to guarantee the loans is under consideration and has risen to $7.5 billion, from an estimated $3.5 billion. The chief executives of GM, Ford and Chrysler LLC, other auto executives and the governors of at least 10 states have also actively lobbied legislators. U.S. Rep. Joe Knollenberg, R-Bloomfield Hills, said he expects the loans will be passed next week as part of the continuing resolution, which allocates money for the ongoing operation of government. 'This is not a bailout,' Knollenberg said. 'You've got the support of the House speaker, and both presidential candidates. ' Staff Writer David Shepardson contributed to this article.