Oct 22, 2009

New Lending to Help Small Businesses

Yesterday President Obama announced some new lending to help small businesses: smaller community banks who loan to small businesses will be able to borrow at low rates from the Treasury Department's Troubled Asset Relief Program and the current loan caps on some SBA programs will be raised, though Congress will need to approve the raising of caps on the SBA loans. According to Jeremy Quittner of Business Week, changes to the SBA program that we reported on previously have encouraged about $13 billion in new lending, so these stimulus programs do seem to be providing some much needed loans to small businesses.