President Obama proposed to use some $30 billion from theTARP bank bailout program and steer it into a lending fund for small businessesin hopes of sparking job creation.
The lending program, which the president unveiled in anappearance in New Hampshire, would be limited to banks with $10 billion or lessin assets, a sector that encompasses roughly 8,000 banks.
The program is part of a small-business program thepresident discussed in last week's State of the Union address. At that time, heannounced a $33 billion program to provide up to $500,000 in tax credits forbusinesses that add jobs or increase wages beyond the rate of inflation.
In the $3.8 trillion budget for 2011 which was proposedyesterday, the draft proposes to eliminate all capital gains taxes onsmall-business investment and raise the limit on Small Business Administrationloans from $2 million to $5 million.
"While the program announced today is a step in theright direction, it's important to remember that access to credit is not thelargest problem keeping small businesses from hiring. The No. 1 problem facingsmall business is lack of sales. Until consumers resume spending, smallbusiness owners will remain reluctant to start hiring," said SusanEckerly, senior vice president of the National Federation of IndependentBusiness.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access