TARP funds may be routed to small businesses

There has been a lot of talk this week in Washington about possibly diverting as much as 700 billion dollars from the TARP fund and using it to make government backed loans to small businesses. This is probably a good use of those funds as long as there is proper oversight into how the money is dolled out. Small Business are the backbone of our economy and employ almost 50% of the workers in the U.S. They also create 60%-80% of the new jobs created which is something this economy needs direly at the moment.

These small business also account for 45% of the payroll of private companies in the US so any help given to these businesses should help to provide more revenue into the economy and help a lot of people. Of course this plan is still in the maybe phase and many are wondering if transferring the funds from TARP would actually be legal or whether it would take a vote from congress to help these small businesses. As someone who is a small business owner I’m looking at this deal closely and hopefully it will pass as I could use a loan to expand and hire more workers.

We need to stress that this is only an idea at the moment and may never come to fruition. These loans may go to the SBA for administration of the funds. Several small business owners have expressed a lot of interest in this type of program.

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