Obama to banks: Help small businesses

Banks should return the favor they received in their recent taxpayer-financed bailout by lending more money to small businesses, President Barack Obama said Saturday.

In his weekly radio and Internet address, Obama said too many small business owners remain unable to get credit despite administration steps to jump-start lending, which was virtually frozen when the financial crisis took hold last year.

“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,” Obama said.

“It’s time for those banks to fulfill their responsibility to help ensure a wider recovery, a more secure system and more broadly shared prosperity,” said Obama.

The president said the administration will “take every appropriate step to encourage them to meet those responsibilities.” He did not specify what those steps might be.

Obama’s were the latest instance of the populist tone he has employed to pressure the financial industry.

Earlier this week, Obama criticized the banking and finance industries for working through Congress to try to weaken the Consumer Financial Protection Agency he has proposed. He accused them of “using every bit of influence they have to maintain the status quo that has maximized their profits at the expense of American consumers, despite the fact that recently those same American consumers bailed them out as a consequence of the bad decisions that they made.”

The financial bailout package cost taxpayers $700 billion.

In his address Saturday, Obama said small businesses have created nearly two-thirds of the nation’s new jobs over the past decade and a half.

“They must be at the forefront of our recovery,” he said.

This year’s $787 billion economic stimulus package made $5 billion in tax breaks available to small business and cut the costs of Small Business Administration loans, Obama said. Last week, he asked Congress to increase the size of some SBA loans and announced a plan to provide low interest loans to small banks that agree to lend more money to small businesses.

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On the Net:

Obama address: http://www.whitehouse.gov

2 Responses to "Obama to banks: Help small businesses"

  1. Carl Nemo  October 25, 2009 at 12:49 pm

    “Banks should return the [favor] they received in their recent taxpayer-financed bailout by lending more money to small businesses, President Barack Obama said Saturday….extract from article my brackets

    What is this little children’s hour? You don’t loan hundreds of billions of dollars as a “favor”. It either makes good business sense or it doesn’t. In this case it has turned out be a bad deal for the lender; ie., American tax slaves, and a very good deal for criminally disposed bankers, mega-insurers, and Wall Street movers and shakers all facilitated by the corrupt Fed~U.S.Treasury~White House axis of evil.

    They loaned this money with minimal published guidelines and when those to whom they’ve loaned the money don’t play fair, they whine and beg them to do so. Say what! What is this, some type of sick joke on the American people?

    The majority of the American people said not only no, but hell no to their Congressional District reps, but these knaves with a globalist agenda thumbed their noses at their constituents and authorized not only the Bush/Paulson shakedown, but the second $787 billion go around under Obama/Geithner.

    Dozens if not a hundred or more players need to be rounded for high crimes and brought to justice for trade violations, lying under oath, and for misappropriation of government funds…period!

    Either Obama is the most naive, cubby ever to be elected to high office or my suspicion he’s one uv’em simply groomed to fill the White House as a one term president until the flagship party; ie., the “Rethuglicans” can regain their stranglehold on D.C. politics as usual.

    The “Demoncrats” are cut from the same cloth as the rethugs except they generally act as enablers for their wasteful policies. Twenty of the past twenty eight years have been held by Republican presidents, the so called party of conservatives who’ve managed to run our public debt up from 800 billion starting with Ronald Reagan to the mind-numbing $11 trillion up to Obama’s watch not including all the debt baggage this guy has slapped on our collective backs pushing us way over the $12 trillion mark.

    There seems to be no end in sight. We are witnessing the destruction of our nation, its currency and financial instruments along with our forced continual involvement in adventuristic, engineered wars we can ill afford in faraway places.

    Carl Nemo **==

  2. bogofree  October 25, 2009 at 10:42 am

    To WOW (Walk On Water) some were “Too big to fail” and some are too small to give a s**t about. Talk about sloppy seconds! I won’t even get into how the “worker bees” are getting treated.

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