Obama Administration Hopes To Boost Small Business Lending
Written by Jenna Weiner
TARP funds may help smaller banks begin lending again.
President Obama addressed growing concerns about the credit freeze on small business lending during remarks in a meeting with his board of economic advisors on Monday.
Although economic indicators point to a return to growth in the economy, Obama said that job losses will continue to mount in the months ahead as businesses begin investing again and banks begin to approve more loans for small business owners.
"We anticipate that we're going to continue to see some job losses in the weeks and months to come," Obama said. "As I said before, there is always a lag of several months between businesses starting to make profits again and investing again and then actually rehiring again."
In other financial news for small business owners, the Treasury has announced that it is extending funds from the Troubled Asset Relief Program (TARP) as a way to help small community banks provide small business loans.
Banks with less than $1 billion in assets will be able to receive loans from TARP at a 3 percent dividend, less than larger institutions have to pay back under the plan.
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