Time to Take TARP Money and Use it For Small Businesses

by Fred Abramson on October 19, 2009 · 2 comments

The big banks are no longer in crisis mode. But how does that help small business? It doesn’t. This is an important issue for economic recovery. In the past, small businesses created 60-70 percent of new jobs coming out of recovery.

The federal bailout legislation, know by the moniker “TARP” is once again on everyone’s minds. The big banks are no longer in crisis but the money is not flowing. Many small businesses cannot simply wait for the big banks to begin to lend more freely in the next quarter or three.

A Senator from Virginia, Mark Warner has an idea. Why doesn’t the government take some of the TARP money and use it for small businesses. Banks, large and small, are still recovering. Senator Warner’s proposal, to re-allocate TARP funds is a plan to assist small business.

Senator Warner’s proposal is a step in the right direction. What small businesses need now is easy access to credit. What do you think?

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