February 2nd, 2010
03:11 PM ET
5 years ago

Obama calls for $30 billion small business lending fund

President Obama took questions from voters after announcing his plan for a small business lending fund in New Hampshire Tuesday.
President Obama took questions from voters after announcing his plan for a small business lending fund in New Hampshire Tuesday.

New York (CNNMoney.com) - President Obama called on Congress Tuesday to recycle $30 billion of the remaining Troubled Asset Relief Program (TARP) funds into a new government lending program offering super-cheap capital to community banks that boost their small business lending this year.

Touted last week in Obama's State of the Union address, the plan is the latest incarnation of a proposal the president first floated in October. While credit conditions for large businesses have improved over the past year, small companies are still widely reporting problems finding the capital they need to fund their operations.

Since small businesses employ about half of American workers, policymakers worry that the ongoing credit crunch they face is contributing to the nation's high rate of job losses. Improving the job market "must be our No. 1 focus in 2010," Obama said last week.

At a town hall meeting in Nashua, N.H., Obama unveiled his proposed new Small Business Lending Fund. The initiative targets banks with assets of under $10 billion, which collectively account for more than half of the nation's small business lending, according to White House estimates.

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Filed under: CNNMoney.com • TARP
soundoff (29 Responses)
  1. therealamerica

    AMEN duckunder! I hope your business continues to grow.

    February 2, 2010 04:40 pm at 4:40 pm |
  2. Mike in NYC

    Small business lending is down mainly due to a lack of demand, not supply. Refer to the National Federation of Independent Business for some good info on this.

    There's a dearth of creditworthy borrowers out there. Let's not repeat the mistake of lowering lending standards, even if it means "helping" the economy. It won't, in the long run. Like we need to be shown that again.

    February 2, 2010 04:42 pm at 4:42 pm |
  3. Showtime - Tampa

    Marc – you say "Now for the 'TAX CUT!!! TAX CUT!!!!! TAX CUT!!!!!!' Republican Economy Specialist to say that this won't gonna help to create jobs in 3...2...1..."

    what would stimulate the economy ? More providing an immediate payroll and income tax holiday (for both business and individuals) or the gov't stealing money from the tax payers and buying land for the salt marsh mouse, giving money to family planning and global warming research and taking much of the "stimulus" money and have much of that money not spent until 2012, 2013, 2014, 2015, and 2016....

    Take a guess which one would help THIS business owner more!!!

    February 2, 2010 04:43 pm at 4:43 pm |
  4. Sniffit

    @ Showtime – Tampa

    Irresponsible tax breaks to create inflationary market bubbles and temporarily give the economy a hard-on are not sound long term fiscal planning, but rather (1) short-term political planning in terms of claiming that the hollographic zing give to the economy was real and was all your doing and (2) long-term political planning for screwing over the next guy in office, who is invariably from the other party, particularly after the bubble you created bursts.

    February 2, 2010 04:43 pm at 4:43 pm |
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