President Obama and his cabinet has finally made progress in promises of aid for small business. A new lending program has been proposed to the tune of $30 billion in funds for business owners.
The drawback, as small business owners see it, is that the money will not be given in a direct manner. The money will funnel through small community lenders, who still hold the right to deny new loan applications.
The move to use small lenders was one President Obama felt was necessary in order to grow the banks of America and increase lender competition. While that may indeed be of benefit, small business owners are somewhat disgruntled by the news.
The current proposal states that only banks with $10 billion and less in assets will be able to participate in the program. This only excludes a short list of the thousands of banks currently registered to do business in the United States.
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Tom Evans describes the concerns of those skeptical of the bill. There are many possibilities that could lead this proposal to fail.
Proponents of the bill remain adamant in thinking this will continue to bolster the economy, which has already been shown to be on the rise for the year of 2010. Legislators are eagerly editing the bill to get it passed in Washington.
