WASHINGTON (Feb. 2, 2010) — President Obama is scheduled today to call on Congress to appropriate $30 billion from the Troubled Relief Asset Program (TARP) to give to community banks for low-interest loans to small businesses.
He planned to make the announcement at a town hall meeting in Nashua, N.H., the White House said.
This plan is the culmination of plans the Obama administration announced last October to designate TARP money for Small Business Administration-backed loans. President Obama renewed his call for aid to small business in his State of the Union address Jan. 27.
The Obama plan reportedly will set up a Small Business Lending Fund targeting banks with assets of under $10 billion. Those banks will be eligible for U.S. Treasury Dept. loans at a dividend rate as low as 1 percent if they use the money to increase loans to small businesses.