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MONDAY, NOVEMBER 23, 2009
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12

Bailouts May Be Offered to Small Businesses

TARP funds, meant to save banks, could be used to save jobs

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(Newser) – The Obama administration is working on a plan that would take money from the TARP—the $700 billion fund intended to rescue banks—and lend it to small businesses, the Washington Post reports. The money would come with few restrictions, and the government would pick up as much as 90% of the tab should the businesses fail. Most of the country’s jobs, proponents argue, come from companies with fewer than 500 employees.

But shifting TARP money to them would be the most dramatic change in direction yet for the windblown fund, which has already strayed far from its original mandate by helping auto companies and life insurers. Timothy Geithner supports the plan, sources tell the Post, but Larry Summers is skeptical.

Treasury Secretary Tim Geithner, right, and National Economic Council Director Lawrence Summers, left, await the arrival of President Barack Obama in the East Room of the White House, Feb. 6, 2009.
Treasury Secretary Tim Geithner, right, and National Economic Council Director Lawrence Summers, left, await the arrival of President Barack Obama in the East Room of the White House, Feb. 6, 2009.   (AP Photo/Charles Dharapak)
In this June 18, 2009 file photo, Treasury Secretary Timothy Geithner testifies on Capitol Hill in Washington before the Senate Banking Committee.
In this June 18, 2009 file photo, Treasury Secretary Timothy Geithner testifies on Capitol Hill in Washington before the Senate Banking Committee.   (AP Photo/Susan Walsh)
Treasury Secretary Timothy Geithner, left, talks with National Economic Council Director Lawrence Summers in the Rose Garden of the White House, May 22, 2009.
Treasury Secretary Timothy Geithner, left, talks with National Economic Council Director Lawrence Summers in the Rose Garden of the White House, May 22, 2009.   (AP Photo/Haraz N. Ghanbari)
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12 comments
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Fondue
Jul 11, 09 8:45 AM CDT
Just do it already. Small business is hurting too. Reply
Vote up! Vote down!
+3
NovThird2010
Jul 11, 09 9:16 AM CDT
Does this administration think anything through before pulling the "chicken little" scenario? Chairman Barry will soon be the "boy who cried wolf" too many times. 2010 elections cannot come too soon. Reply
Vote up! Vote down!
-1
IN RESPONSE:
JaneMP
Jul 11, 09 10:46 AM CDT
infidel--please remind me what soultions have the Republicans come up with for this problem--other than mmore tax breaks for the wealthy. This IS a serious situation and I thank God it's not in the hands of McCain and Palin.
Vote up! Vote down!
+1
IN RESPONSE:
NovThird2010
Jul 11, 09 12:21 PM CDT
JaneMP. Reaganomics. Same method used by JFK. Chairman Barry is all about power and has no interest in what would truly benefit the average American. He is already losing support among congressional democrats who are recognizing the massive negative effects of the Interlloper-in-Chief's fascist policies. "Nobama in 2010!"
Vote up! Vote down!
-1
IN RESPONSE:
JaneMP
Jul 11, 09 10:11 PM CDT
NOBama--oh, yes, Reagonomics was so successful. Please explain again how it differs from the usual Republican plan of lower taxes on the rich and no regulation:? It's worked so well so far. Every time a Republican gets in, a Democrat has to come in afterward and clean up the mess.
Vote up! Vote down!
+1

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