A TARP-free revamp for $30 billion (small-business) lending plan

[sabra]

Source: CNN Money

NEW YORK (CNNMoney.com) -- President Obama and several members of Congress are drafting legislation for a new, $30 billion fund that would infuse community banks with capital specifically earmarked for small-business lending.

The plan is the latest spin on a proposal Obama first unveiled in October and touted in his State of the Union address. The idea went nowhere, thanks in part to the unpopularity of Obama's plan to fund the program with money from the Trouble Asset Relief Program. Congress didn't want TARP treated like a piggy bank, and community bankers didn't want the stigma of taking funds from a program known for Wall Street bailouts.

But small business lending remains a glaring trouble spot -- a critical problem because small companies are traditionally the country's main generator of new jobs. Banks have slashed billions from credit lines, and small firms weakened by the recession are struggling to meet tighter underwriting standards.

A Thursday report from TARP's watchdog, the Congressional Oversight Panel, spotlighted the severity of the shortfall. "Small business credit remains severely constricted," the report's authors wrote. "Unable to find credit, many small businesses have had to shut their doors, and some of the survivors are still struggling to find adequate financing."

Read more: http://politicalticker.blogs.cnn.com/2010/05/13/a-tarp-free-revamp-for-30-billion-lending-plan/?fbid=VP2LgjjHQ1T

[Deep13]

1. "...latest spin on a proposal Obama first unveiled in October ..."

tick, tick, tick, tick, tick....

[DimplesinMI]

2. How about Small Business Grants President Obama

That way, Small Business, like mines....that have been beaten up by the economy could go directly to the Fed Gov, instead of the banks that will not lend nothing to us? We are still awaiting on you President Obama....remember, small businesses are the number 1 job creator. It is time that you stop forgetting about us, already!

[leveymg]

3. Should've been $300 billion 15 months ago, along with the rest of the 2nd New Deal that never was.

Seriously less enchanted every day that passes . . .