My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

Will TARP Soon Cover Small Business?

Guest Writer
Owner of Make a Living Writing
min read
Opinions expressed by Entrepreneur contributors are their own.
obama-finance.jpgPresident Barack Obama's small business rescue plan, which has been around for more than a year, came back into the spotlight Wednesday, when Obama announced three specific proposals aimed at funneling more loan money to small businesses.

The big questions: Can he get these initiatives passed anytime soon? And if so, would it help?

While big banks got billions in Troubled Asset Relief Program (TARP) funds in the past year, little of those funds were used for small-business lending. Instead, small business has been caught in an unprecedented lending and credit crunch for two solid years. 

The new initiatives aim to change that by:

• Granting community banks with less than $1 billion in assets new power to borrow at a lower rate -- 3% instead of the 5% currently offered. In return, participating banks would be required to submit a lending plan demonstrating how they will use the funds to expand their small-business lending.

• Increasing the lending limit on major SBA-guaranteed loan programs from $2 million to $5 million. SBA's micro-loan program would also expand its limit, from $35,000 to $50,000.

• Also calls for the convening of a Treasury Dept.-SBA small business lending conference, to work on ensuring small businesses have access to credit.

The National Small Business Association weighed in immediately with its opinion that time is of the essence in passing these type of reforms, and that more needs to be done to make sure banks increase their small business lending.

Most of this we've heard before, and bill drafts for them have been introduced before. And were introduced again Wednesday, by Senate Committee on Small Business and Entrepreneurship Chair Mary Landrieu (D-La.)

Can Obama get this done? If so, is it too little too late? Or would it help your business? Voice your opinion in the comments below.

More from Entrepreneur

Brittney's a Certified Financial Planner who can help you manage your business and personal finances and navigate the ups and downs of starting a business.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Are you paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.

Latest on Entrepreneur