TARP Funds for Small Businesses?

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TARP Funds for Small Businesses?

Jul 10, 2009
Posted by Molly Nelson - According to this article in The Washington Post, senior Treasury Department officials are considering a proposal to expand the scope of the $700 billion Troubled Assets Relief Program (TARP) to strengthen the SBA's popular 7(a) loan program.


This initiative would be a shift from the original purpose of TARP, as it would direct billions of bailout dollars towards saving jobs instead of righting the financial system.  The loans would have few restrictions and could be used for a variety of immediate expenses, and the government would cover most of the losses on the federal loan even if a firm failed despite receiving this help.   

"Small business is the backbone of American jobs and innovation," said Matthew Vogel, a White House spokesman. "We are deeply committed to continuing to work every single day to devise and implement policies that will help small businesses through these challenging economic times."


Administration officials want to prevent small businesses from closing, and some officials say small companies are key to reversing growing unemployment.  Officials said discussions are in early stages and plans are not expected before the fall. 


[Hat tip: Washington Post]

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