Skepticism about Obama’s Small Business Lending Plan

Posted by: Mark Marich on February 15, 2010 Source: Policy Dialogue on Entrepreneurship

An article in today’s Washington Independent, “Obama’s Small Business Lending Plan Meets Skepticism,” lays out concerns with the President’s plan to make $30 billion in repaid TARP funds available for small banks to lend to small businesses.

“There’s little indication that these banks need the money — or that making it available would stimulate lending. Further, experts from both the left and the right express concern that the funds could be lost to waste or mismanagement without ever contributing to the nation’s job rolls,” reported author Martha C. White. According to her report, the problem seems to stem from difficulties finding credit-worthy borrowers.

“Supporters of the small-bank plan say the nation’s regional and community banks are better equipped to handle an influx of small-business loan requests than the Small Business Administration. Although Senator Mary Landrieu (D-La.), chair of the Senate Committee on Small Business and Entrepreneurship, spoke positively of the president’s plan to increase SBA funding in a post-State of the Union release, she pointed out that this aid comes after eight years of cutbacks the SBA sustained during the Bush administration.”

Read the entire debate, here.

Category:  Capitol Hill  Tags:  sba, landrieu, obama