White House attempts to free up small business loans

Lawmakers in congress are now reviewing a $30 billion program proposed by President Barack Obama aimed at increasing access to loans for small businesses.

The program, which was outlined by the President during his State of the Union speech earlier this year, would create a $30 billion dollar fund to help support small- and medium-sized banks and encourage them approve small business loans. Part of the proposal would also include a new state tax credit to support separate state efforts to provide small business loans.

New York Congresswoman Nydia M. Velazquez, head of the House Small Business Committee, said the proposal would help rebuild the economy. "Getting capital to small business is going to be critical to sustaining our recovery and continued job growth," she said.

One administration official said that some states had created their own programs to help small businesses, but that many of those programs were scaled back because of budget cuts.

USA Today says that supporting state programs is an effort to merge multiple ideas to help small business owners.

The newspaper also says the program originally planned to use leftover money from the financial bailout program, but that the funding now has no links to the Troubled Assets Relief Program.

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