Wednesday, October 28, 2009

President Obama, Congress, and Small Business Help

President Obama has recently been pushing for banks to lend more to small businesses - especially the banks that were bailed out by taxpayer dollars.

"These are the very taxpayers who stood by America's banks in a crisis, and now it's time for our banks to stand by creditworthy small businesses and make the loans they need to open their doors, grow their operations and create new jobs," Obama said. "It's time for those banks to fulfill their responsibility to help ensure a wider recovery, a more secure system and more broadly shared prosperity."

While President Obama has been publicly pushing the banks to lend more, there has been no word on whether the banks have acknowledged his statements or will do anything about them.

So far, $5 billion in tax breaks has been made available to small businesses from this year's $787 billion economic stimulus package. Congress has also been pushing for immediate relief. Senator Mark Warner has made a proposal:

Warner wants to create a $50 billion loan fund for small businesses by taking $40 billion of the remaining Troubled Asset Relief Program money and adding $10 billion that would be raised from banks of all sizes. The president's plan would increase the top limits on Small Business Administration loans and provide lower-cost capital to community banks, credit unions and community development financial institutions. He's asked the Treasury Department and SBA to confer with Congress members, lenders and small-business leaders to determine additional steps to help businesses.

(Source: USA Today)

You can read the entire article here. You can also find out more about programs available to you at or get answers from other business owners here.

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  1. A nice initiative by the president. Now let's wait and see the overall responses from the banks.

  2. I think this will help great to support the economy.