CIT Group Inc.’s board has approved a deal with major bondholders to keep the company out of bankruptcy with a $3 billion rescue loan, the Associated Press reported. The emergency loan gives the commercial lender some desperately needed breathing room to refinance maturing debt amid a major liquidity squeeze. CIT representatives were not immediately available to comment on the reported financing deal. The emergency loan would provide temporary financing to CIT so it could launch a debt exchange offer to free itself from upcoming debt maturities. Under the deal, CIT’s main bondholders would give the company $3 billion at an initial interest rate of about 10.5 percent, according to a New York Times report. CIT’s failure could pose a major threat to the economy, industry representatives have warned.

Commercial mortgages at U.S. banks have been failing at the fastest rate in nearly 20 years, The Wall Street Journal said, citing its own analysis. Losses on loans used to finance commercial spaces would reach about $30 billion by the end of 2009 at the current rate, the article said. The estimated $30 billion loss is based on financial reports filed by more than 8,000 banks for the first quarter. The commercial real estate market, valued at about $6.7 trillion, represents 13 percent of the U.S.’s gross domestic product.

Charles Schwab Corp., the largest U.S. online brokerage, denied allegations by New York Attorney General Andrew Cuomo of civil fraud in its marketing and sale of auction rate securities (ARS), Reuters reported. The Wall Street Journal earlier reported that Cuomo, as part of his investigation into the sales of ARS, told a Schwab affiliate that his office is planning to sue it for civil fraud, citing an official notice sent on Friday. His letter cites e-mails and testimony that allegedly show that Schwab brokers had little idea of what they were selling to clients and later failed to tell them the market for ARS was collapsing. In February 2008, almost 900 Charles Schwab customers had ARS worth $789 million, but only a small fraction of that amount is outstanding now.

Office furniture and hearth products manufacturer HNI Corp. said Friday it is closing a North Carolina factory to reduce costs, the Associated Press reported. The company said the Louisburg, N.C., office furniture manufacturing plant will be closed by the end of the year. Work will be moved to other locations. The plant, which employs 93 workers, is part of the company’s largest division, The HON Co., one of the nation’s leading office furniture makers. The closing will save an estimated $1.8 million a year starting next year. The Muscatine-based company expects the shutdown to cost about $3.4 million, reducing earnings by about $800,000 in the second quarter and nearly $1 million in each of the third and fourth quarters. Another $500,000 in costs will be reported next year.

Correction: The Web site for the Iowa Finance Authority was incorrect in Friday’s BizDaily. To nominate persons for outstanding leadership in Iowa’s housing industry, go to www.IowaFinanceAuthority.gov. Winners will be recognized at the 2009 HousingIowa Conference, “Affordable Housing: Iowa’s Roadmap to Recovery,” Sept. 9-10 at the Des Moines Marriott Downtown.