The big honchos got their billions in bail out loan money from President Obama’s Troubled Asset Relief Program or TARP over the last 12 months. It looks like the President is now setting his sights to doing the same for small businesses in trouble. Hopefully, his proposal gets congressional nod soon enough.
The initiative would grant small community banks with assets below $1 billion to get loans with lower 3% interest rates than the prevailing 5%. It will also increase the SBA lending limit from $35,000 to $50,000.
The National SBA has been in batting for this government support on small scale enterprises and it’s good to hear that the bill gets re-introduced by the Senate Committee on Small Business and Entrepreneurship chaired by Mary Landrieu (D-LA). The only question is, will it still help or it’s too late?