GMAC LLC, the auto and home lender that was bailed out in December, will receive more than $7 billion of government funds to provide financing for customers of Chrysler LLC and General Motors Corp., according to two people familiar with the matter.

A second payment may follow, said one of the people, who requested anonymity because the talks are not public. GMAC agreed on April 30 to fund Chrysler customers and dealers after the automaker filed for bankruptcy protection.

Gina Proia, a spokeswoman for GMAC, and Treasury spokeswoman Jenni Engebretsen declined to comment Wednesday.

GMAC, which received $6 billion from the government five months ago, has been deemed critical to the survival of GM and Chrysler, two of the country's three biggest automakers.

With GM facing possible bankruptcy following Chrysler's filing, the companies want a lender offering lower rates and flexible terms for borrowers to compete with Ford Motor Co. and Toyota Motor Corp., said Jeremy Anwyl, the chief executive of Edmunds.com, a research firm in Santa Monica, Calif.

"They need that relationship to be competitive against Ford and Toyota and other players out there that have strong finance arms that can actually stretch and help them sell more cars," Anwyl said in a phone interview.

The contract with the government includes a four-year agreement for GMAC to be the preferred provider of incentive-laden retail financing for Chrysler, and originate loans to customers who had relied on Chrysler Financial.

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