May 13th, 2010
02:25 PM ET
5 years ago

A TARP-free revamp for $30 billion lending plan

New York (CNNMoney.com) - President Obama and several members of Congress are drafting legislation for a new, $30 billion fund that would infuse community banks with capital specifically earmarked for small-business lending.

The plan is the latest spin on a proposal Obama first unveiled in October and touted in his State of the Union address. The idea went nowhere, thanks in part to the unpopularity of Obama's plan to fund the program with money from the Trouble Asset Relief Program. Congress didn't want TARP treated like a piggy bank, and community bankers didn't want the stigma of taking funds from a program known for Wall Street bailouts.

But small business lending remains a glaring trouble spot - a critical problem because small companies are traditionally the country's main generator of new jobs. Banks have slashed billions from credit lines, and small firms weakened by the recession are struggling to meet tighter underwriting standards.

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Filed under: Economy • Financial Reform • President Obama
soundoff (7 Responses)
  1. aproudmemberoftheunpatrioticmob

    The corrupt slime and his merry band of thieves can figure out more ways to rob the hard working people of America than anyone in history. He tries to pretend he is taking the money from the banks, exactly who has money in the banks? Hard working taxpayers. His constituents have EBT cards that transfer money from out pockets to support their drug habits. Greece and Spain are learning that the socialist structure that Obozo is trying to impose on us doesn't work, to bad the crook in cheif of the libertards won't learn the lesson and those of us who actually work for a living have to suffer.

    May 13, 2010 03:02 pm at 3:02 pm |
  2. Seth

    Just another 30 Billion...

    Pay as you go... right.... Liars!

    May 13, 2010 03:08 pm at 3:08 pm |
  3. precious

    The President is too busy reforming America, he doesn't have time to worry about "jobs". That will have to happen on its own.

    We have to have change first. Remember "change=reform".

    May 13, 2010 03:21 pm at 3:21 pm |
  4. Dean

    This is a joke. My wife could not get loan from the SBA because I have to much money in my retirement account. Funny I thought retirement accounts were for retirement and not keeping a struggling small business going.

    May 13, 2010 03:26 pm at 3:26 pm |
  5. GI Joe

    Hey – put the republicans back in charge. They will spend the rest of the TARP on another war – something meaningful to the fear-mongering, war-mongering, old white men AND they'll give the wealthy more tax cuts !!

    (note the sarcasm in the above)

    May 13, 2010 03:28 pm at 3:28 pm |
  6. Fat Finger culprit

    Vrrroooom, Vroooom, there go those somoking money printing preses making all that funny money again. A wheelbarrel of cash for bread soon

    May 13, 2010 03:32 pm at 3:32 pm |
  7. Hongli

    This is a " NO WIN " situation for the President. Darn if "YOU DO "and darn if "YOU DON'T.

    May 13, 2010 03:51 pm at 3:51 pm |