The Treasury Department said the program was not meant to save every firm, saying that “the failure of certain suppliers is a natural, albeit painful, part of the business cycle.”

“But as the restructuring process moves forward, the Administration is committed to helping stabilize the industry, protect American jobs, and give consumers the confidence and the means to purchase cars,” the Treasury said in a statement.

Michigan lawmakers hailed the plan. Rep. Sander Levin, D-Royal Oak, said the program was a “valuable first step.” Sen. Debbie Stabenow said the plan was “a very significant sign that they understand the importance of suppliers, and they want to help.”

With industry analyst firm Grant Thornton predicting last week that up to 500 U.S. auto suppliers are on the brink of failure, rescuing the auto supply chain had risen to the top priority for the Obama administration’s auto task force. The weakest U.S. sales in four decades triggered massive cuts in production over the past few months, leaving suppliers struggling for cash.