In the weekly radio address, President Barack Obama emphasized once again that small businesses in America need to be running before we see an improvement in the economy. He also mentioned that many such businesses were struggling under the credit crunch and need support from the banks.
“It’s time for those banks to fulfill their responsibility to help ensure a wider recovery,” Obama said. “We’re going to take every appropriate step to encourage them to meet those responsibilities.”
This week the president declared novel measures to solve the credit issue small business have been suffering. Besides capital booster into community banks, Obama has requested congress to increase the restrictions for small business administration (SBA) loans from $2 million to $ 5 million for the manufacturing sector.
Said the president, “The goal here is to get credit where it’s needed most — to businesses that support families, sustain communities, and create the jobs that power our economy,”
In the coming weeks the president has requested Treasury secretary, Timothy Geithner and SBA Karen Mills to assemble a conference of banking officials, congressional leaders, financial regulators, lenders, and business persons to come up with further steps to advance credit to small businesses who would like to develop or expand. Many banks have self imposed restrictions on lending and have been hesitant to loan money.
In the weekly radio address, the president also mentioned that his novel health care plan would permit small businesses to purchase insurance at much lower rates. The president did mention that the present day exorbitant costs of health care have discouraged many would be entrepreneurs from even trying to establish a business. This has resulted in lack of opportunities and lost jobs in the American economy. Added the president, “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,”
The president went on to say that he is well aware of the economic crises and the impact it has had on the average American. The president did mention that his aides are working intensely behind the scenes with senate leaders to merge legislation that will help ease health costs and at the same time offer hope to the millions of uninsured Americans. These proposed health care changes are felt to be the biggest since the evolution of Medicare nearly 43 years ago. However, not all agree with the president’s plan and feel that he has not kept up many of his pre-election promises.