Small Business Drive To Recovery

All across America, even today, millions of Americans are hard at work. They’re running the mom and pop stores and neighborhood restaurants we know and love. They’re building tiny startups with bid ideas that could revolutionize an industry, maybe even transform our economy. They are the more than half of all Americans who work at a small business, or own a small business. And they embody the spirit of possibility, the relentless work ethic, and the hope for something better that’s at the heart of the American Dream.

They also represent a segment of our economy that has been hard hit by this recession. Over the past couple of years, small businesses have lost hundreds of thousands of jobs. Many have struggled to get the loans they need to finance their inventories and make payroll. Many entrepreneurs can’t get financing to start a small business in the first place. And many more are discouraged from even trying because of the crushing costs of health care — costs that have forced too many small businesses to cut benefits, shed jobs, or shut their doors for good.

Small Businesses have always been the engine of our economy, creating 65% of all new jobs over the past decade and a half, and they must be at the forefront of our recovery. That’s why the Recovery Act was designed to help small businesses expand and create jobs. It’s provided $5 billion worth of tax relief, as well as temporarily reducing or eliminating fees on SBA loans and guaranteeing some of these loans up to 90%, which has supported nearly $13 billion in new lending to more than 33,000 businesses.

In addition, our health reform plan will allow small businesses to buy insurance for their employees through an insurance exchange, which many offer better coverage at lower costs; and we’ll provide tax credits for those that choose to do so. This past week, President Obama called on Congress to increase the maximum size of various SBA Loans, so that more small business owners can set up shop and grow their operations. President Obama has also announced that the federal government will be taking additional steps through the Financial Stability plan to make more credit available to the small local and community banks that so many small businesses depend on. The banks who know their borrowers, who gave them their first loan and watched them grow.

The goal here is to get credit where it’s needed the most. Businesses that support families, sustain communities, and create the jobs that power our economy are the businesses that need the credit the most. That’s why President Obama has enacted the Financial Stability plan in the first place, back when many of our largest banks were on the verge of collapse; our credit markets were frozen; and it was nearly impossible for ordinary people to get loans to buy a car or home or pay for college. The idea was to jumpstart lending and keep our economy from spiraling into a depression.

Fortunately, it worked. Thanks to the American Tax payers, we have now achieved the stability we need to get our economy moving forward again. But 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 open their doors, grow their operations, and create new jobs. It’s time for those banks to fulfill their responsibility to help ensure a wider recovery, a more secure system, and a more broadly shared prosperity. President Obama is prepared to take every appropriate step to encourage them to meet those responsibilities. Because if it’s one thing we’ve learned, it’s that here in America, we rise and fall together.

Our economy as a whole can’t move ahead if small businesses and the middle class continue to fall behind. This country was built by dreamers. They’re the workers who took a chance on their desire to be their own boss. The part time inventors who became the full time entrepreneurs. The men and women who have helped build the American middle class, keeping alive that most American of ideals — that all things are possible for all people, and we’re limited only by the size of our dreams and our willingness to work for them.

We need to do everything we can to ensure that they can keep taking those risks, acting on those dreams, and building the enterprises that fuel our economy and make us who we are.

Working with Small Business to Drive Recovery

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