Amid misgivings over his spending blueprint, President Barack Obama will provide billions of dollars in federal lending aid aimed at struggling small business owners, the AP reports. The package, to be announced tomorrow, includes $730 million from the stimulus plan that will immediately reduce small-business lending fees and increase the government guarantee on some Small Business Administration loans to 90%.
“It's a huge step in the right direction,” said one official from the Chamber of Commerce. Republicans have sought to build on some bipartisan misgivings over Obama's ambitious spending blueprint. They say Obama's budget proposal to raise taxes will hurt small businesses, which face higher dividend taxes and limits on itemized deductions.