Obama renews push for $30 bln small business plan

* Act quickly, Obama will say

* Jobs, spending major issues in November elections

* Plan cleared House committee last week

By Steve Holland

WASHINGTON, May 25 (BestGrowthStock) – President Barack Obama is to
renew a push on Tuesday to persuade the U.S. Congress to
approve a $30 billion plan to spur lending to small businesses
and trigger job creation.

Obama, who has been criticized for not doing enough to
generate job growth, proposed the plan back in February. The
proposal has faced questions as to whether or not it would
work.

During the worst recession in decades, many small
businesses reported having trouble getting credit.

The legislation would establish a $30 billion fund to boost
lending to small businesses looking to hire and expand their
operations by providing additional capital to community banks.

The House of Representatives’ Financial Services Committee
approved the Small Business Lending Fund Act by a vote of 42-23
last week. House Speaker Nancy Pelosi said at the time the
legislation would be brought up for a vote soon in the full
House.

Obama is to urge both the House and the Senate to act on
the proposals as soon as possible during a 11:15 a.m. EDT (1515
GMT) White House event honoring Small Business Owners of the
Year.

“This shouldn’t be a partisan issue. This shouldn’t be an
issue of big government versus small government,” Obama will
say, according to excerpts of his remarks released by the White
House.

“This is an issue of putting our government on the side of
the small business owners who create most of the jobs in this
country,” he will say.

Job growth and government spending are major issues in
November congressional elections in which Republicans hope to
gain ground on large Democratic majorities in the House and the
Senate.

Some Republicans have opposed the lending plan, arguing it
was the wrong prescription for battered small businesses. They
have said it would encourage more government involvement in
private businesses along the lines of the $700 billion Wall
Street bailout known as the Troubled Asset Relief Program
(TARP).

The plan calls for the government to inject capital into
independent banks. In return the banks would pay the
government a dividend, but the dividend rate would decline as
their lending to small businesses increased.

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(Editing by Eric Beech)

Obama renews push for $30 bln small business plan