Obama's plan of backing up small business lending

Jane Saseen wrote an article in Business Week about Obama's plan of backing up small business lending.

In a move that took even some of his allies by surprise with the timing, President Barack Obama on Mar. 16 unveiled a package of measures aimed at boosting lending to small business by freeing up the frozen markets for credit that serve the nation's entrepreneurs.

With Treasury Secretary Timothy Geithner by his side, Obama told roughly 200 small businesses representatives gathered in the East Room of the White House that he would commit $15 billion from the Troubled Asset Relief Program (TARP) so that the government can purchase loans backed by the Small Business Administration from the banks that have originated them. The moves come on top of earlier Administration efforts to ease the strains on small business lending. As part of the stimulus package, the government agreed to increase the guarantee it provides to banks on SBA-backed loans from the current 75% to 90%, as well as temporarily reducing some fees linked to Small Business Adminstration loans.

Now the question is: Can Obama successfully do this? Well, I really hope he can. Read more about this news here: Can Obama Jolt Small Business Lending?