President's Plan Will Help Small Business, Says Tonko

Statement

President's Plan Will Help Small Business, Says Tonko

U.S. Rep. Paul Tonko (D-Amsterdam) said today that President Obama's plan to unfreeze credit markets will be good news for small businesses, which have had a tough time getting loans as the nation's economy has slowed. Rep. Tonko attended the President's announcement in the East Room of the White House this morning.

The President's plan will raise government loan guarantees and eliminate upfront fees for the Small Business Administration's 7(a) loan program, and is eliminating fees for borrowers and lenders for the SBA's 504 program. The administration also says it will buy up to $15 billion of small business loans from banks using TARP funds. This will free up credit and allow banks to make more loans to small businesses.

"Small business is the heart of our local and national economies, over the last decade it's where 70% of new jobs were created," said Rep. Tonko. "They have struggled to expand, make payments and even keep workers on their payrolls as the economy slowed and credit tightened. These new changes by President Obama should provide the incentives to banks to provide more loans for small businesses so they can begin to drive our economic recovery."

Rep. Tonko took concerns he's heard from small business leaders in the Capital Region to this morning's meeting. "We have heard from local small businesses, especially those in the manufacturing and emerging technology sectors, who are seeking increased access to federal funds for the research and development they need to bring their products to market. I spoke to officials from the Small Business Administration about these concerns today, and they are committed to finding ways to help small business thrive as the economy starts to grow again. I will continue to work with the SBA to ensure that the small businesses in the Capital Region and throughout the country can access the credit they so desperately need."

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