This article is about how president Obama flew to New Hampshire for a Town Hall meeting and promoted his plan of lending $30billion to small businesses. He wants to increase employment so that unemployment is less than 10%. His proposal would need to be approved from the Congress as $30 billion would be redirected from the government's Troubled Asset Relief program. The funds would form the Small Business Lending Fund and would provide money to small businesses. The president has also planned to continue to waive fees and guarantee that small firms would get loans. He also proposed tax breaks that would increase the number of workers hired in the firms or increase wages or number of hours worked in existing firms.
The new lending firm would only be available to banks with assets under $10 million. It seems as though this may really benefit small businesses who may have trouble getting loans and additional finances as banks sometimes may be hesitant to giving out loans to small companies with few assets.
1 comment:
I think this would be a good idea but is this really the right time to be lending out even more money? I think there would need to be strict guidelines imposed and that only certain small businesses should get loans. This would help to get more people working. It is good that in the US, many small businesses succeed. In the article for class, "Vive la difference!", it explains how France lacks start-ups and its small businesses have trouble growing.
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