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White House Eyes Bailout Funds to Aid Small Businesses

The Obama administration is developing an initiative to take money from the $700 billion rescue program for the banking system and make it available to...
July 21, 2009

The Obama administration is developing an initiative to take money from the $700 billion rescue program for the banking system and make it available to millions of small businesses, which officials say are essential to any economic recovery because they employ so many people. Some economists estimate that small businesses, defined as firms with fewer than 500 workers, employ most of the country's workforce.

A proposal being floated by senior Treasury Department officials calls for using the bailout funds to expand a government program that helps small companies borrow from banks at low rates to keep their businesses going, the sources said. These "working-capital" loans would come with few restrictions and could be used to buy inventory, hold on to employees and pay off short-term debt. Administration officials said discussions are in the early stages and that no plan is expected before the fall. Concepts now on the table may evolve or be scrapped altogether, they said. No dollar figure has been set.

White House Eyes Bailout Funds to Aid Small Firms (Washington Post 7/11/09)

U.S. Small Business Funding Dry, Getting Drier (Reuters 7/14/09)