May 25th, 2010
07:27 AM ET
8 years ago

Obama to urge Congress to pass small business jobs package

President Obama will meet with small business owners Tuesday.

President Obama will meet with small business owners Tuesday.

Washington (CNN) - President Barack Obama will use a meeting with small business owners Tuesday to urge Congress to pass a proposed package that will allow small business to expand and create jobs.

Obama will welcome mom-and-pop business owners from around the country to the event, as part of Small Business Week observances.

Since October, the president has pledged to increase small business lending and provide tax incentive to jump-start new jobs– going so far as to mention "small business" 14 times in his State of the Union address in January.

Data from Small Business Administration (SBA) show that small companies have generated 64 percent of net new jobs every year over the past 15 years.

Yet, these businesses have been particularly hard hit by the recession.

A Senate report last year found that American businesses with fewer than 20 employees have suffered steeper job losses than bigger companies.

But in order for Obama to push through his Small Business Jobs Package, Congress will have to act.

"Government can't create jobs, but it can help create the conditions for small businesses to grow and thrive and hire more workers," Obama will say in his remarks Tuesday. "Government can't guarantee a company's success, but it can knock down the barriers that prevent small business owners from getting loans or investing in the future."

One of his proposals is for Congress to recycle $30 billion of the remaining Troubled Asset Relief Program (TARP) funds into a new government lending program offering capital to community banks that boost their small business lending this year.

In the current economic climate, small companies are still widely reporting problems finding the capital they need to fund their operations.

The Small Business Lending Fund would target banks with assets of under $1 billion, which collectively account for more than half of the nation's small business lending, according to White House estimates.

Those banks would be able to borrow money from the Treasury at a dividend rate as low as 1 percent if they use the cash to make more small business loans this year than they did in 2009.

Other proposals include giving businesses tax credits for hiring new workers, eliminating capital-gains tax on investments in small business, and allowing companies to write off, instead of depreciate, new equipment.

"I urge both chambers to act on these proposals as soon as possible," Obama will say in his remarks. "This shouldn't be a partisan issue. This shouldn't be an issue of big government versus small government. This is an issue of putting our government on the side of the small business owners who create most of the jobs in this country."

Filed under: Economy • Jobs • President Obama
soundoff (6 Responses)
  1. Peter E

    Pretty much everything republicans have asked for during the past year. Now that doesn't mean republicans will support it. I'm sure they'll find a way to depict this also as a totalitarian government takeover only because now it comes from Obama.

    May 25, 2010 08:34 am at 8:34 am |
  2. EqualPolitics4Everyone

    His small jobs proposal is the wrong way to go about it. What it actually does is give incentive for small businesses not to hire more workers.

    Read it for yourselves liberals.

    May 25, 2010 08:46 am at 8:46 am |
  3. Blutarski

    Thanks Mr. President, and Congress, the economy is doing great, now that you have spent billions in taxpayer money to correct the problem. Unemployment, and mortgage foreclosures are still a big problem. I can't wait to see how your Health Care "fix" works out. And to think, you accomplished so much in just 18 months. Well, in fairness, the Dems have been in charge of Congress since 2008, so its only been about two and a half years for them to accomplish all of their goals. Watch the Dow and NASDAQ, its quite a show. Oh, I know its all Bush's fault, right Barney?

    May 25, 2010 08:47 am at 8:47 am |
  4. S.B. Stein E.B. NJ

    If we can get loans and other forms of financial help to small businesses (because bank won't do it), then that might speed the recovery. We also need to see if we can banks to loan money to these small businesses. I would have hoped that there is a way for both large and small banks to lend to small businesses easier.

    May 25, 2010 08:51 am at 8:51 am |
  5. DOG1

    I'm curious to see what the republicans will find that they don't like about trying to help small business. The first one I can think of is that they consider "small business" to be those that only make 100 Million$ to 1 Billion$ a year. Anything less than that they're not concerned with because the bribes, (oops, "campaign contributions") are insignificant and not worth any effort to really help them, just use them as talking points on Foxnews.

    May 25, 2010 08:54 am at 8:54 am |
  6. haren

    Before wall street speculator and Republican who wish Obama to fail kill this economy on the fear of Europe, I need Obama to address the nation, that USA's economy is not in danger and US corporation will be on the Virge of making profit.
    Do you think that Europe is going to allow Greece to go bankrupt?
    Like Germany USA should also ban Short selling of stock.

    May 25, 2010 08:54 am at 8:54 am |