One hurdle is many critics call the package a bailout -- noting that the government could defer repayment of the loans for up to five years -- and that it would cost taxpayers $3.75 billion to guarantee $25 billion. Automakers and the United Auto Workers say an even larger package of $50 billion over three years is necessary -- something that would cost $7.5 billion. Because Detroit's Big Three auotmakers have subinvestment grade credit ratings, they face expensive borrowing costs. The direct loans would give them the lowest available interest rates -- and save them $100 million per $1 billion borrowed. Sen. Barack Obama, the Democratic presidential nominee, has endorsed the $50 billion package, while his Republican rival, endorsed the $25 billion package in the energy bill that was signed into last December by President Bush. The energy bill also hiked fuel efficiency standards but it didn't allocate any money to fund the $25 billion direct loan program created by Congress. Last week, Rep. Joe Knollenberg, R-Bloomfield Township, spoke with President Bush's top economic advisor, Keith Hennessey, who is director of the National Economic Council, urging the administration to support a direct loan package, said Knollenberg's spokesman, Nate Bailey. Knollenberg also spoke with U.S. Transportation Secretary Mary Peters last week, a spokesman for Peters confirmed. Last week, Michigan members of Congress held a conference call to discuss the prospects for getting the proposal through Congress in September. There are a number of other hurdles including the Energy Department must write the rules for awarding money. A 2005 bill that OK'd $2 billion in loan guarantees on a variety of energy fronts still hasn't given out any money. Only one auto maker is among the 16 finalists -- start-up electric car company Tesla Motors. Another question is what collateral would the automakers have to put up to qualify for the loans. Auto lobbyists were in Denver last week pushing for support for the program at the Democratic National Convention. They are at the Republican National Convention in St. Paul this week. You can reach David Shepardson at (202) 662 - 8735 or [email protected].