Government Small Business Bailout Likely Coming

July 11, 2009

Washington (ChattahBox) – The Obama administration is reportedly considering a new add-on to the $700 billion Troubled Assets Relief Program (TARP), which would draw small businesses under the emergency cash umbrella.

According to an official statement from the White House, no plans have been created, nor are expected to be for a few months. But the chance that small businesses will be extended the same offer that big banks, life insurance agencies, and the auto industry was, is good.

“Small business is the backbone of American jobs and innovation. We are deeply committed to continuing to work every single day to devise and implement policies that will help small businesses through these challenging economic times” White House Spokesman, Matthew Vogel, was quoted by The Washington Post.

The measure would create a line of credit that would cover many immediate and crucial costs to businesses with 500 or less employees. If the company were to go under, the government would cover a majority of the costs in order to cushion the fall, and allow those same businesses to use whatever revenue they could to recreate themselves.

Lawrence Summers, the National Economic Council Director, has reportedly been critical of this idea, and is not yet lending any support to the creation of a plan. But Treasury Secretary Timothy Geithner has been pushing for the plan, and it is now officially on the table, if not in the works.

Source


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2 Responses to “Government Small Business Bailout Likely Coming”

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