The funds will be given to small local community banks to lend through the SBA loans programs. Obama has be feeling a push from some who say that lending part of the TARP money to small businesses will help the economy grow and create jobs, especially on the local level. Communities around the country will be looking for a portion of this capital to get in the hands of their local businesses, as soon as possible. The funds will be going to the community banks and then dispersed to local businesses through the Small Business Administration. The SBA loans guarantee will help lenders feel more comfortable in lending further monies, along with the infusion of capital in their coffers.
The proposal has very few details at this time, and no dollar amount is available, according to congressional and industry officials. The ABA (American Bankers Association)
"Community banks feel like the government assistance efforts to date have left them on the sidelines," said Mark Tenhundfeld, a senior vice president at the bankers' association.
With only $320 billion left in TARP fund money, it will be welcome in the local business community. No further information was given about how it could affect the SBA Microloans program. http://www.sbaloans-
For more information about the SBA Loans Program http://www.sbaloans-
