Bailout Funds for Small Businesses

Posted by: Mark Marich on December 14, 2009 Source: Policy Dialogue on Entrepreneurship

In a speech at the Brookings Institution last Tuesday, President Obama proposed creating incentives for small businesses to hire more workers as part of recent efforts to boost job creation.

"There is only so much government can do," Obama said. "Job creation will ultimately depend on the real job creators: businesses across America. But government can help lay the groundwork on which the private sector can better generate jobs, growth and innovation."

Although Obama did not put a price on the proposals, they would add to the $787 billion that Congress allocated a year ago to stimulate the economy. However, the President said the cost of these new proposals could be offset by some of the $200 billion in lower-than-expected cost of TARP.

Other new measures intended to promote job creation are additional money to build roads and other construction projects and rebates for homeowners who invest in energy-saving weatherizing improvements.

The details of these new proposals will be developed in Congress, which is also working on its own proposals. Final action will likely not occur until early 2010.

Hear the speech here.

Category:  Capitol Hill  General