President Barack Obama plans on Tuesday to unveil his proposed $30 billion funds for Small Business Lending at a town hall meeting in Nashua, New Hampshire.
Small businesses...have created roughly 65% of all new jobs over the past decade and a half, Obama said in Nashua, N.H., on Tuesday afternoon.
And I think we should make it easier for them to open their doors, expand their operations and hire more workers, Obama said.
The funds will come from the remaining Troubled Asset Relief Program (TARP). The initiative targets banks with assets of under $10 billion, which collectively account for more than half of the nation's small business lending, according to White House estimates.
Those banks would be able to borrow money from the Treasury at a dividend rate as low as 1% if they use the cash to make smaller business loans this year than they did in 2009.
Banks with less than $1 billion in assets would be able to receive capital infusions of up to 5% of their assets, and banks with assets of $1 billion to $10 billion would be eligible to access investments totaling 3% of assets.
More than 8,000 of the country's 8,400 banks would be eligible to participate under these terms, according to government estimates.