Money Matters, Simplified.
Obama urges support to small businesses
by Jaspreet Virk - October 24, 2009 - comments
Noting the important role played by small businesses, Obama stated that the government will work to make it easier for them to get loans and create more employment
New York, October 24 -- As the nation’s economy is trying to recover from the worst economic downturn since the Great Depression, President Barack Obama in his weekly radio address underscored the importance of small businesses, calling them “the engine" of growth.
In his prepared remark, the president stated, "While credit may be more available for large businesses, too many small business owners are still struggling to get the credit they need.
"These are the very taxpayers who stood by America's banks in a crisis--and now it's time for our banks to stand by creditworthy small businesses, and make the loans they need to open their doors, grow their operations, and create new jobs."
Small businesses worst hit
The small businesses have been hit the hardest during recession, leading to an increase in jobless rate. They have contributed 65 percent of all new jobs over the past 15 years.
But with the recent economic contraction, they have been struggling to get financial assistance, facing high costs, resorting to layoffs etc, thus contributing to high unemployment.
The unemployment rate is increasingly inching toward 10 percent. The jobless rate in September stood at 9.8 percent, an all time high in the last 26 years.
Assistance to small businesses
Noting the important role played by small businesses, Obama stated that the government will work to make it easier for them to get loans and create more employment.
"The goal here is to get credit where it's needed most -- to businesses that support families, sustain communities and create the jobs that power our economy," Obama stated.
The economic stimulus injected into the economy has already provided this sector $5 billion in tax relief, supported small loans up to 90 percent, slashed fees for Small Business Administration loans etc.
Further, the health reforms will help small businesses by making them eligible for tax credits for providing health insurance to their employees, stated Obama.