Obama: Time for big banks to help small businesses

Categories: Barack Obama | Politics | News
  • On Saturday, October 24, 2009, as part of his weekly radio and internet address to the nation, President Barack Obama made mention of the difficulty currently being experienced by small business owners in procuring loans.

    "These are the very taxpayers who stood by America's banks in a crisis, and now it's time for our banks to stand by creditworthy small businesses and make the loans they need to open their doors, grow their operations and create new jobs," President Obama said.http://hosted.ap.org/dynamic/stories/U/US_OBAMA_SMALL_BUSINESSES?SITE=MIDTN&SECTION=HOME&TEMPLATE=DEFAULT

    "It's time for those banks to fulfill their responsibility to help ensure a wider recovery, a more secure system and more broadly shared prosperity," said President Obama.http://hosted.ap.org/dynamic/stories/U/US_OBAMA_SMALL_BUSINESSES?SITE=MIDTN&SECTION=HOME&TEMPLATE=DEFAULT

  • History

    The original $700 billion financial bailout package passed by congress in November of 2008, and the $787 billion stimulus package passed earlier this year have not thawed the slow down lending to small business by banks, which started at the onset of the financial crisis.http://dealbook.blogs.nytimes.com/2008/11/13/financial-bailout-package-shifts-focus/

    Earlier in the week, President Obama had made comments critical of the banking industry, accusing them of "using every bit of influence they have to maintain the status quo that has maximized their profits at the expense of American consumers, despite the fact that recently those same American consumers bailed them out as a consequence of the bad decisions that they made."http://www.google.com/hostednews/ap/article/ALeqM5gVE9gbATk5C003RQgUu08cxJm09AD9BHFMMG0

    In this same time period, President Obama also asked Congress to increase the size of certain loans from the Small Business Administrationhttp://www.sba.gov/ and announced a plan designed to incentivize smaller banks to increase loans to small business.http://www.forbes.com/2009/10/21/loans-banking-obama-entrepreneurs-finance-obama.html

    In his weekly radio and internet address this Saturday, October 24, 2009, President Obama used the platform to advance the notion of larger banks increasing their lending to small business, but offered no further specific measures as to how his administration would be involved in this, if at all.http://www.whitehouse.gov/the-press-office/weekly-address-president-obama-says-small-business-must-be-forefront-recovery

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