Obama: Time for Banks to Step Up, Make Small Business Loans

October 24, 2009

(ChattahBox)—With the U.S. unemployment rate hovering near 10 percent, President Obama urged banks to step up to the plate and start making loans to struggling small businesses, to help grow the economy and create new jobs. The President said, that the nation’s taxpayers bailed out the banks when they needed help to survive and now it was time for them to return the favor and release funds into the stalled economy.

Earlier in the year, many banks received taxpayer funds through the $700 billion federal bailout package, but banks have been slow to issue small business loans, forcing many firms into bankruptcy and stagnating the growth of new business ventures.

During Obama’s weekly radio address he warned banks that the White House would take additional steps to ensure banks participated in the nation’s financial recovery, instead of impeding it.

“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 the President. “And we’re going to take every appropriate step to encourage them to meet those responsibilities,” he cautioned.

The White House sweetened Obama’s stern words with the offer of government capital to small banks at better terms, to make it easier for community banks to issue small business loans.

“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 credit-worthy small businesses, and make the loans they need to open their doors, grow their operations, and create new jobs,” said Obama.

Despite the rebound on Wall Street, unemployment remains high and the creation of new jobs through small businesses will be the key to a true economic recovery.

“Small businesses have always been the engine of our economy — creating 65 percent of all new jobs over the past decade and a half — and they must be at the forefront of our recovery,” Obama said.

Source


Comments

5 Responses to “Obama: Time for Banks to Step Up, Make Small Business Loans”

  1. Carol on October 24th, 2009 2:30 pm

    No kidding, do you think it is time to help the small businesses. Banks are
    refusing loans on qualified small business. How about lets give some cash
    to big banks or better yet stimulus package that doesn’t work. How about a tax break for starters. Not only is the small business man suffering but everyone who does business with them.

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  5. Loan Bad Credit on July 21st, 2010 3:49 pm

    you do think it is time to help the small businesses. Banks are
    refusing loans on qualified small business. How about lets give some cash
    to big banks or better yet stimulus package that doesn’t work…………

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