Obama Announces Plan To Aid Small Businesses
The New York Times:
Seeking to ease the credit freeze for small businesses, the Obama administration will inject $15 billion into the industry, buying up securities that are linked to small-business loans.
In announcing the latest cylinder of his government’s economic recovery effort, President Obama said the infusion was needed because “small business owners are really struggling” because their credit lines had been pulled.
“This is still just going to be a first step in what is going to be a continuing effort to make sure that people get credit out there,” Mr. Obama said in an appearance in the East Room of the White House.
Administration officials said that by the end of March the Treasury Department would begin making direct purchases of securities backed by loans guaranteed by the Small Business Administration, and would purchase new securities. Even small businesses with good credit histories have seen lending dry up, the White House said in a news release that announced the new initiatives.
Photo: Doug Mills / The New York Times.
