Obama administration looks to spin off program from TARP for small business

[boston bean]

Source: WaPo

The Obama administration is developing a major initiative to tackle the economic and political problem of unemployment by getting federal bailout funds into the hands of small businesses.

The proposal involves spinning off a new entity from the Troubled Assets Relief Program that could give banks access to the government money without restrictions, such as limits on executive pay, as long as they use it to make loans to small businesses. But officials are not yet certain whether carving the program out of the TARP would be the best way to lure banks to participate in small business lending, sources familiar with the matter said on condition of anonymity because the plans were not final.

As an alternative, officials are prepared to ask Congress to modify the TARP itself, easing the pay limits and other restrictions that would be imposed on small business lenders taking the money, the sources said.

Since the summer, the administration has been facing an uncomfortable dynamic in the economy. The ranks of the jobless have been growing, while big financial firms that got taxpayer bailout money have been thriving. In response, officials have been trying to recast the TARP as aid for Main Street rather than Wall Street.



Read more: http://www.washingtonpost.com/wp-dyn/content/article/2009/12/10/AR2009121003931.html?hpid=topnews

[Lucky Luciano]

1. could be a good idea if done right, ie - it would make the stimulus which

was a bit small, the right size.

[doc03]

2. You want jobs, quit scaring the hell out of

employers and the consumers. How in the hell does an employer know whether to hire someone or not when he doesn't know what that HC fiasco will cost him. How are you going to give the consumer confidence to go out and buy anything when he doesn't know what the hell is going on in Washington. That's what makes jobs people buy things. You don't know if your taxes are going up, if you will be forced to buy health insurance, if your employer provided benefits will be taxed. I thought from the beginning it was a mistake to take on all this controversial stuff. The deficit is going through the roof and all they can do is dream up more spending, what a f----g mess.

[PJPhreak]

3. Ummmmmm...Why does this sound like another "Gimme"

for the banks?

Maybe this statement...

"The proposal involves spinning off a new entity from the Troubled Assets Relief Program that could give banks access to the government money without restrictions, such as limits on executive pay, as long as they use it to make loans to small businesses.

Sorry,I think this sux!

[boston bean]

4. ding ding ding, we hve a winner!

never believe the headline!