Small Business Loan Proposal Nears Completion
A proposal by Senator Mark Warner to supplement lending to small businesses has now passed both chambers of Congress. Craig Carper reports.
Senator Warner’s plan creates a 1.5 billion dollar State Small Business Credit Initiative under which small banks will only receive federal funds as they make qualified loans to small businesses. Warner says this will improve access to credit by improving the lenders' ability to lend to businesses who would otherwise not qualify for a loan.
Warner: When you think about a recovery from a recession, historically two-thirds of the jobs created coming out of a recession are coming from small businesses. We’ve not seen that job growth because small businesses have not had access to credit. This will be a significant step towards getting those small businesses the credit they need and it’s also paid for so it does not add to the deficit.
The House and Senate legislation must now be reconciled before it is sent to President Obama for his signature.
Craig Carper, WCVE News