NEW YORK (CNNMoney.com) – As small business lending continues to dry up, the federal government is readying two new initiatives aimed at reversing the trend. To unveil them, President Obama traveled Wednesday to Maryland, where he visited a family-owned company that used a government-backed loan to fund a recent expansion.
"There are still too many entrepreneurs who can't get the loan they need to open their doors and start hiring," Obama said from the headquarters of Metropolitan Archives, a Landover, Md., company that stores and delivers paper files. "There are still too many who are struggling to make payroll and stay open. And there are still too many successful small businesses that want to expand further and hire more but just don't have the capital to do it."
The new measures - a collaboration between the Treasury Department and the Small Business Administration - aim to make capital cheaper for community banks and raise the funding limit for loans backed by the SBA.
Under the new plan, banks with less than $1 billion in assets will be able to borrow money from the government at a 3% dividend rate. That's a reduction from the 5% rate the Treasury currently offers borrowers through its Capital Purchase Program, a TARP (Troubled Asset Relief Program) initiative. To qualify, banks will need to submit a small business lending plan illustrating how they'll use the borrowed money to expand their small business lending.
Thanks for trying to help small business. The only thing that the republicans appear to support is the Bush bail out of the too big to fail banks to the tune of $700 billion.
Puuuhhhhh-llleeeaazzeee! Socialist, fraud, teleprompter reading, Nobel Prize stealin', birth certificate falsifying, community organizing, racist, country destroyin' POTUS! We are on to you!
Maybe the TRAVELER should Loan His money to the peoples who CAN't AFFORD loans while he flies all over the country and world with his family and hundreds of add-ons!!!! Put up or Shut Up Obama and stop blowing the peoples money and RECALCULATE your worthless Promises.
Time's up, piker.
You will hear the first winds of change in VA and NJ in two weeks, with an absolute hurricane blowing into DC one year later.
Dems being trounced by the voters in those governors' races are mere foreshadowing of the lame duck status the voters will hang around Barry's neck in 2010.
Why doesn't obama just give money to the banks no strings attached like g.w.
So he is going to help someone other than his big corporate and finacial firm friends?
Fat cat friends get $$$$$ bailout. Litle guy gets – words.
Will the GREEDY GOP complain about this ALSO!!!
And the wingnuts say "No!" because . . . ?
I only bank at a local credit union, and they are amazing! My husband started a business and received a loan through our credit union. They know us by name, and we've not had to deal with any of the problems my friends who use the large international banks have had! I love the idea of helping small banks give more small business loans.
So - the banks that already got billions handed to them on a silver platter to stimulate lending...then stole the money from the taxpayers...are going to get even more loaned to them cheap if they'll finally start making loans?
I don't agree with this one...the banks should be ordered to, or risk losing their FDIC charter. Or - this program should ONLY be offered to banks that received NO federal funds before or paid them all back.
Then it would be helpful.
thank you to our great leader
The problem that Obama ignores is the increasing tax burden on small business. Loans won't fix the problem, unless the loans don't have to be repaid.
This sounds like the same old process that got the US into financial difficulties. Do the democraps think things will come out different just because they are democraps?
It appears that the only way to get banks moving is to offer them a diet of things they don't like if they don't approve. Perhaps strict regulation of pay and bonuses for all management personell at banks using taxpayer money. Perhaps an increase in the rate banks and others pay for funds borrowed from the fed.
It is intolerable for banks to be profiting from those who bailed them out. Perhaps an incentive should be offered to Congress for its inaction – an opportunity for unemployment benefits unless they get off the dime.
The unions are not going to like this. He took one from the Republican playbook and do you know what's going to happen? This will absolutely create some jobs. Quickly. Very good!
...lemme guess, guys - this isnt good enough either (Repubs, righwinger, and negative thinkers)..? lol - nothing is good enough right?
Obama and those who are trying to better the country, keep doing a great job. We see your efforts and appreciate you!
Maybe if you would stop your Democratic frivilious lawsuits from the taker entitlement libs and the crooked demo-lawyer libs, small businesses would be fine.
Maybe if you stopped forcing them to hire Union where the work takes 5 times as long to complete, 10 times the cost, and is now done half as good, small businesses would be fine.
How will small businesses stay in business when they are forced to pay high taxes to recoup your 10 trillion of debt? How can small business succeed since Obama has made the dollar worthless?
Its funny you dont see alot of the left wing writing about this....You need to at least finish high school.....but when it take no brains to understand you see 300+....OBAMA needs to step down!
“Competition is the keen cutting edge of business, always shaving away at costs”
Henry Ford quotes (American industrialist and pioneer of the assembly-line production method, 1863-1947)
The Public Option that President Obama is trying to explain, is going to add competion and free choice to our healthcare system. That is the very idea of Capitalism, the last time I checked; unless things have changed. Just to let you know, Henery Ford, after doing some reading, was no fan at all of Socialism.
PS: I just heard that President Obama is ordering or is going to order the excecutives from the banks and companies they bailed out to take a 90 percent cut in pay. Take that Wall Street, you deserve that and much more. FDR put those regulations in Wall Street for a reason, and we found out the hard way, last year, why. Mr. President, I want you to give Wall Street a smaking, what for.
More LIES, WHERE ARE THE JOBS?
My bad the pay cut is 50 percent, but that is good enough to teach Wall Street a lesson.
Mr. President I'm proud of you.....keep working hard for all.
President Obama needs to reorientate his priorities and formulate policies that will produce jobs for the American people. That is how the economy will recover. Bailing out businesses alone will not revive the economy, putting people back to work will!! I think that bulk of federal stimulus money should be allocated to job creation and growth and not just allocated to bailing out businesses and banks. However, if he must loan money to the businesses, President Obama should tie the loan guarantees to job creation and growth. Tax brakes and concessions should also be tied to job creation and growth. The basis for economic recovery will be Americans working, earning and spending their disposible income.
America has an SBA (Small Business Administration) emergency loan program.
Rather than give MORE money to those good ole', trustworthy" banks, why not hire some loan officers and go into business doing THAT TOO?!?!
IF real small businesses can get loans and run their businesses without the big banks, they'll hire people, make jobs and end OUR pain. "Big Bank" isn't feeling any pain, big profits, in fact (and WE HELPED!).
SERIOUSLY, isn't this an emergency? And haven't we been jerked around by Corporate Fat Cats long enough? I have no love for Mr Geithner and what he has done TO taxpayers so far, and I really don't see him doing anything FOR citizens any time soon, same with the Central Bank... They all seem to be inbreeding and pleasuring each other, at our expense, AND LETTING US WATCH – – – with impunity.
I want this President to be the PEOPLE'S President (I DID vote for him), but he has a long way to go from where I stand! He needs to get right with his campaign promises!