Recently, the Obama administration supported legislation that would bring nearly $30 billion worth of funds to community banks to increase small business lending, but some officials believe more needs to be done to boost small business formation and – hopefully – hiring rates.
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.
President Barack Obama asked banks to help finance small and starting companies last year as experts predict these companies will drive economic recovery. Now, it seems a number of major financial institutions are stepping up to help business formation by offering funds to SMBs in 2010.