President Obama Announces New Small Business Lending Initiatives
Wednesday, October 21, 2009
President Obama, who also met today with Ann Sullivan, WIPP Government Relations, announced new small business lending initiatives. “The problem is, our small businesses have been some of the hardest hit by this recession,” said President Obama. “There's no question that the steps we've taken have improved the overall climate for small businesses across the country, but there is more we need to do. And that's why today, we're announcing new steps to support more lending to America's small businesses—steps that will lead to more jobs, more growth, and a stronger economic recovery.”
The Administration will support lending by small banks and Community Development Financial Institutions (CDFIs) through the Financial Stability Plan. This initiative will provide lower-cost capital to small banks that present small business lending plans and to CDFIs that lend to small businesses in the hardest-hit rural and urban areas.
In addition, the Administration plans to seek legislation to increase the maximum size of three types of SBA loans. Specifically, the Administration aims to: 1) Increase the maximum loan size of 7(a) loans from $2 million to $5 million; 2) Increase the maximum loan size of 504 loans to $5.5 million; and 3) Increase the maximum loan size of SBA microloans from $35,000 to $50,000.
The President also has asked Treasury Secretary Geithner and SBA Administrator Mills to convene a conference of Congressional leaders, regulators, and small business owners to establish further steps the government can take to help small businesses access capital.
to read the President's Remarks. Click here
to read the related Press Release. Click here
to view a Fact Sheet on the President's Lending Initiatives.
October 21, 2009