President Barack Obama on Tuesday will call for a new, $30 billion small business lending fund drawn from bailout funds as part of his push for new job creation.
The president will unveil his new "Small Business Lending Fund" during an appearance in Nashua, N.H., part of the series of new proposals meant to bolster economic growth and new jobs.
"Jobs will be our number one focus in 2010," Obama will say, according to excerpts of prepared remarks released by the White House. "And we’re going to start where most new jobs do – with small businesses."
The plan closely resembles a proposal floated by freshman Sen. Mark Warner (D-Va.) last winter, which will see the new fund would support lending to small businesses by smaller and community banks. The funds for the new proposals will be drawn from unspent leftovers of the Troubled Asset Relief Program (TARP).
"These are the small, local banks that work most closely with our small businesses – that provide them their first loan, and watch them grow through good times and bad," Obama will say. "Combined with my proposal back in December to continue waiving fees and increasing guarantees for SBA-backed loans, this will help small banks do even more of what our economy needs – ensure that small businesses are once again the engine of job growth in America."
The new fund will be slightly smaller, though, than the $50 billion called for by Warner and a handful of other senators.
The support for new lending is "particularly critical right now, as bank lending standards have tightened, and many small businesses are struggling to get loans," the president will say.
Obama will also reiterate support for plans for job growth outlined last Wednsday in his State of the Union Address, including a new tax credit for businesses' new hires, and an elimination of capital gains taxes on small business investments, among other plans.