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Obama promises to help small businesses

By Rhonda Straw     Mar 16, 2009 in Business
President Barack Obama says help is on the way for small business owners who are hurting during the recession. The President called small businesses the "heart of the American economy."
President Obama has made it easier for small business owners to borrow money. Up to $15 billion dollars was spent to ensure credit is available for small business loans. Obama said during an event attended at the White House that , "Small businesses are the heart of the American economy. They're responsible for half of all private sector jobs and they created roughly 70 percent of all new jobs in the past decade."
The $730 million dollar program for small businesses released today, March 16th, 2008, includes a $787 billion dollar stimulus package approved by congress last month. The programs are to help the economy out of the recession.
The funds are to be used to reduce the fees on the Small Businesses Administrations main loan program. Other funds will be used to increase the loans guaranteed by the federal government to 90 percent.
Not all are happy with this agreement. States House Minority Leader John Boehner, R-Ohio, "Today's White House conference is simply an attempt to provide political cover for the job-killing burden the President's budget would place on our nation's small businesses. The cornerstone of this budget is the largest tax hike in history, and the majority of those hit by the budget’s income tax increase are small businesses."
The Republican message did not have the backing of the Chamber of Commerce. They have only praise for the plan. "The small business owners who are struggling to gain capital and stay afloat were offered a helping hand by the president today," said Chamber President Thomas J. Donohue.
Eric Cantor R-PA, House Minority Whip, called the plan, a "welcome sign, which we support."
This followed a weekend of bad publicity for other bailout plans.
More about Business, Loan, Obama, Small business
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