Obama Stands by Small Businesses

In case any small business owners have had any doubt about the president’s priorities when it comes to the economy, President Obama has stated that small businesses are essential the American economy and has noted the problem that small businesses have nowadays in getting credit.

Image: Zuma Press

Obama’s weekly radio and Internet address gave the President the opportunity to urge America’s banks to step up their lending to creditworthy small businesses, stating that it is the banks’ responsibility to finance the small business engine. He also announced several programs that would spur lending, such as capital injections into community banks that would allow them to lend more freely.

The Small Business Administration has also come into Obama’s sights as a way to spur lending on the part of banks, with the President urging Congress to raise the limits of SBA loans from $2 million to $5 million and as much as $5.5 million for manufacturing. Obama has also called for a conference between regulators, financial leaders, lenders, and entrepreneurs to help solve the problem.