WASHINGTON—President Barack Obama is expected Tuesday to urge Congress to pass legislation that would create a $30 billion fund to incite banks to extend credit to small businesses, according to a White House official.
The proposal, which Mr. Obama outlined in February, is part of a broad effort by the administration to spur small-business growth amid a lending slowdown caused by the economic downturn. Such efforts include several tax breaks and changes to Small Business Administration lending programs.
This plan is too little too late. It would be much better if the government got out of the way and stopped punishing the rich, you know, those who are making over $200,000.00 a year and stop stifling the entrepreneurship of the American people. Why be in business if the government is going to tell you how to run it, who to employ, how much you should pay for health insurance, how long you will take care of that employee once he leaves your company and how much you should actually keep of the money you do make? You have to have the means to make the money and make a business grow before you can avail yourself of a tax credit or pay back a business loan.
The legislation will help the government "knock down the barriers that prevent small business owners from getting loans or investing in the future," Mr. Obama will say, according to a copy of his prepared remarks.
The push for the House and Senate to act on Mr. Obama's proposal comes after a government panel recently reported that the administration's $700 billion financial bailout may not help small business growth. The panel also noted in its report that the government's efforts to stabilize the financial sector haven't increased small-business loans.