$30 billion plan to "boost employment"

[Atash Hagmahani]

http://www.cnbc.com/id/37634730

I'm just reporting the news.

After the worst recession in decades, many small businesses report trouble getting credit.

Obama's proposal would establish a $30 billion fund to boost lending to small businesses looking to hire and expand operations by providing additional capital to community banks.

The House of Representatives' Financial Services Committee approved the Small Business Lending Fund Act last month by a vote of 42-23.

The White House official said Obama will call on the House to approve the plan along with a new state Small Business Credit Initiative that would spur more than $20 billion in new lending through state-based programs.

"And he'll urge Congress to pass other small business proposals including elimination of capital gains taxes for small businesses and new tax relief for small start-ups to spur new business creation," the official said.

With U.S. unemployment at 9.7 percent in May despite an apparent return of economic growth, Obama is under enormous pressure to ease the plight of the jobless.Voters are likely
to punish his Democratic Party in congressional elections in November.

"This legislation would eliminate capital gains taxes for investment in small firms, which will help move capital to these companies across America," Obama said after meeting small businesses owners. "And it would provide tax relief to small start-ups to encourage folks to open up businesses, too."

Job growth and government spending are major issues in November congressional elections in which Republicans hope to gain ground on large Democratic majorities in the House and the Senate.

[hippiechick]

Spending 30 billion more that we don't have!

[wander]

I read a report some time ago about the complaints of businesses regarding credit. They interviewed some 1000 businesses as well as banks, and asked about credit problems, only some 5% reported they couldn't get/give credit lines because of bank problems, most were because they didn't want the terms of the loan or because they were in bad financial shape.