Obama Prepares to Help Small Businesses
October 20, 2009 by Stephen Kersey
Filed under Business
Small businesses are all but starving for cash after the financial crisis has left many of the largest banks unwilling to lend money. President Obama hopes to reverse this trend by introducing a series of initiatives that will hopefully increase bank lending to small businesses, the cornerstone of the American economy.
Image: Pete Souza, White House Photographer
Among the programs that Obama plans to incorporate is a program that would increase the maximum amount of money that businesses can borrow through the Small Business Administration’s main loan program, which currently stands at $2 million.
The Federal Reserve will also allow wider access to the TARP program, which will hopefully increase lending in smaller community banks.
According to Treasury Secretary Timothy Geithner, every bank in America has a responsibility to provide the credit required for small businesses to expand because of their part in creating the financial crisis. However, the 22 biggest TARP recipients have not increased their lending to small businesses, instead choosing to pay outstanding balances with the money, a problem Obama hopes to fix.
