Small Business Finance News
TARP Proposal Could Help SMB Job Creation
Written by Jenna Weiner
Published: 11/19/2009
The ALF-CIO will ask that TARP funds provide credit to SMBs.
The American Federation of Labor and Congress of Industrial Organizations are planning a proposal for President Obama that could mean good news for small business owners.
At the upcoming White House forum on joblessness, AFL-CIO President Richard Trumka will present a case for money from the Troubled Asset Relief Program to be loaned at commercial rates to small- and medium-sized businesses that are unable to get credit from larger banks.
Trumka believes unemployment should be a top political concern, particularly because of what he perceives as a racial divide, with unemployment reaching 15.5 percent for blacks and 13 percent among Hispanics. He believes this climate could disenfranchise American workers across the racial spectrum and cost billions of dollars to fix.
While Benjamin Jealous, president of the National Association for the Advancement of Colored People, supports Trumka's TARP proposal, he feels the racial situation is less dire. "[T]his is fundamentally about the majority of the country."
The TARP proposal has the potential to create jobs for all Americans. "If small businesses can get credit, they will create jobs. And we need those jobs now," Trumka said.
According to MerchantCircle, 12.6 percent of SMB owners expect to increase their payroll "somewhat" within the next three months in the midst of what is expected to be one of the worst holiday sales seasons in decades.
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