The Small Business Administration reports that small businesses are predicted to lead economic recovery as SMBs have created 64 percent of net new jobs in the past 15 years. Now, the administration is making an effort to spur business formation – and job generation – with an appeal to increase credit for small businesses.
According to USA Today, the Obama administration has sent a proposal to Congress requesting that it create a $30-billion program to unfreeze credit for SMBs. The fund would support and small- and medium-sized businesses to enable them to increase lending to small businesses, making business formation easier for entrepreneurs.
The program was originally unveiled in January, but President Barack Obama recently announced it has been expanded to include a new state small business credit that would support efforts by state governments to provide loans to small businesses.
The revised legislation has the support of the House Small Business Committee. Nydia Velazquez, head of the committee, is quoted as saying in USA Today, “the committee will work to ensure that whatever Congress moves forward accomplishes [continuing job growth].”
The president seems to be advocating job growth through every avenue possible. He emphasized job generation should be one of businesses’ top priories at the Business Council conference in Washington, D.C. last week.