Obama to Ask Congress to Raise SBA Loan Limits
President Obama will ask lawmakers for legislation boosting the maximum size of three types of Small Business Administration loans, the White House said Wednesday.
The proposed bill is part of the administration’s three-pronged initiative to free up credit for small businesses, according to the Dow Jones News Service.
In addition to the loan legislation, the White House will make it easier for small banks to provide credit to small businesses under the Treasury Department’s Financial Stability Plan.
The president also will call for Treasury Secretary Tim Geithner and SBA Administrator Karen Mills to convene a conference of regulators, congressional leaders and small business owners to establish further steps the government can take to help small businesses get better access to capital.
The SBA in July made guaranteed floorplan loans available to RV dealers, but few have taken advantage of the program because of the $2 million loan limit and financial institutions reluctance to participate.
The focus on small businesses comes as the White House begins to wind down other pieces of the Troubled Asset Relief Program (TARP).
White House spokesman Robert Gibbs said Obama hears daily from small businesses struggling to get access to credit.