Obama unveils plan for small businesses

The measures were announced by Mr. Obama on the premises of Metropolitan Archives, a 13-employee record storage and delivery company in Landover, Maryland.

“I know that times are tough and I can only imagine what many of you are going through, in terms of keeping things going in the midst of a very tough economic climate, but I guarantee you this: This Administration is going to stand behind small businesses," President Obama said. "You are our highest priority because we are confident that when you are succeeding, America succeeds."

New Measures
A collaboration between Treasury department and Small Business Administration aims to make capital easier to obtain for all the community banks.

The president asked lawmakers to increase the cap on Small Business Administration loans from $2 million to $5 million, increase 504 loans to $5.5 million and also increase the agency’s microloans to $50,000.

Money which would be coming from the government's $700 billion Troubled Asset Relief Program (TARP) would be provided to small banks at low rates.

"Of all the steps we're taking to move this economy from recession to recovery, I continue to believe that the success of our small businesses will be a foundation upon which our future prosperity is built," Obama said in his address. "So we will continue to do whatever we can to help these businesses grow and thrive. And I am confident that the steps we announced today will do just that for small business owners across the country."

Help to franchisees and community banks
The need to unveil a small business initiative and increase the loan size was due to the fact that top notch people liked to put money in 4-5 franchises which would help the owners of the franchise.

The initiative would also help the community banks raise more money and increase employment opportunities in both urban and rural areas.

Surrounded by small business owners, Obama acknowledged that there's still a "long way to go" before the economy fully recovers.