Initiatives To Increase Credit To Small Businesses

10.21.09 | FL News Team

Initiatives that will increase credit to small businesses are set to be unveiled by President Obama. An official in the administration said the proposed plan will raise the caps for existing Small Business Administration (SBA) loans. It is also designed to give small banks better access to TARP funding to encourage more lending to small business. The White House has been examining ways to increase access to credit for small businesses. A report in the "Washington Post" says the Obama administration plans to ask Congress to raise the ceiling on the amount of money companies can receive from major lending programs at the SBA. The paper also says the Treasury Department is nearing finalization on a plan to use federal bailout funds to help community banks lend to small businesses.

In a move earlier this year, the White House temporarily relaxed restrictions on the size of businesses allowed to apply for small business loans. That is expected to allow about 70-thousand more firms to apply for a Small Business Administration loan program through the end of next September. Auto dealerships in particular are expected to benefit from the eased restrictions.