Many small businesses are having difficulty finding the loans they need to keep their small businesses afloat. President Barack Obama addressed this problem in his weekly radio announcement, calling upon large banks who have received government aid to begin rectifying this.
"These are the very taxpayers who stood by America's banks in a crisis--and now it's time for our banks to stand by creditworthy small businesses, and make the loans they need to open their doors, grow their operations, and create new jobs."
Seven million jobs have been lost nationwide since the start of the recession in December 2007 and President Obama believes the neglect of small business by banks to be partly at fault.
"Our economy as a whole can't move ahead if small businesses and the middle class continue to fall behind," he said. Many small time entrepreneurs are unable to receive the financing required to begin their own companies or maintain previously existing start ups through the downturn.
Earlier this week, President Obama announced his response to the deficit of small business lending. His plan, according to a White House fact sheer, would declare community banks with less than $1 billion in assets, eligible for lower-cost capital, provided they put forward a small business lending plan and documentation of their lending in quarterly reports.
"The goal here,” he says “is to get credit where it's needed most--to businesses that support families, sustain communities, and create the jobs that power our economy."
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