3
Lending fund would help small business
To view this content, Javascript must be enabled and Adobe Flash Player must be installed.
TEXT OF INTERVIEW
Bill Radke: President Obama heads to Nashua, New Hampshire today, pitching a plan to boost small business. And here it is: the president wants to give $30 billion in repaid bank bailout money to community banks. Marketplace's Amy Scott is here live. Hi, Amy.
Amy Scott: Hi.
Radke: So helping small banks help small business, how's that going to work?
Scott: The president wants to set up a Small Business Lending Fund, which would apply to about 8,000 small and community banks. Banks that used the money to increase lending to small businesses would pay lower taxes. And I spoke about this earlier with Lynn Tilton, who runs a private equity fund that invests in small and mid-sized businesses. She is in favor of using bailout money to help these businesses, but says, you know, the kinds of companies that need these loans are risky, and banks are under a lot of pressure to reduce their risk.
Lynn Tilton: Giving money to community banks that are already sitting on problem loans and problem balance sheets and then asking them to go up against regulators to make high-risk loans is not going to accomplish the goal.
Radke: Fair enough, Amy, then what would accomplish that goal?
Scott: Well, Tilton pitched her own plan to the White House, which would encourage private investors to help fund small businesses. But the lending program is just part of the president's plan. He's also pushing tax cuts for companies that create jobs or increase wages, as well as higher limits for loans given through the small business Administration. And the idea here is, you know, if you help small businesses, you help create jobs.
Radke: Marketplace's Amy Scott. Thank you.
Scott: You're welcome.
I don't see how giving community banks 30 billion dollars to Community banks to lend will work when you have a majority of U.S small businesses who's personal and business credit has been affected due to the economic downturn small business owners are tired of the political correctness jargon so lets call it what it is. what needs to happen which we know won't is credit score forgivness and lending done not based on personal or business credit but lending done on the type of business, time in business and past performance. Obama won't see much results in job creation unless his administration begins to think along those lines
Lynn Tilton had been predicting the crash since late 06 warning about the the Big Bank Derivative debacle that was coming. She's also been telling the Obama Administration since early 09 that Tarp for Small/Mid Banks funding Small/Mid Company's would help American workers rebuilding the economy. Brava!
I liked what Lynn Tillton said aboult getting more jobs in usa with more labor jobs and this is what Obama needs to work on I am a person thats worked all my life working with my hands.In my older years at 57 i have been thinking of how to fix problems we have and like to be a helpfull citizen if i can
