UPDATE 1-Obama urges bipartisan support for $30 bln job aid

(Adds more Obama remarks, background)

WASHINGTON, May 25 (BestGrowthStock) – President Barack Obama,
seeking to boost U.S. jobs in an election year, called on
Tuesday for Congress to pass a $30 billion package to aid
small business lending that he hopes will increase hiring.

Obama, who has been criticized for not doing enough to
generate job growth, proposed the plan in February.

“I’m calling on Congress to pass (the) small business jobs
package as soon as possible,” Obama said in remarks prepared
for delivery at the White House. “I urge both chambers to act
on these proposals as soon as possible. This shouldn’t be a
partisan issue.”

He made no mention of the outlook for the economy or the
current state of financial markets in the text of his speech.
Stocks were down sharply on Wall Street amid concern about
European banks and higher short-term funding costs.

The House of Representatives Financial Services Committee
approved its version of a bill to boost small business lending
by a 42-23 vote last week, with no Republican support. House
Speaker Nancy Pelosi said the legislation would be brought up
for vote soon in the full House.

Obama, who is to meet with Republican senators later on
Tuesday to discuss his legislative agenda, is anxious to show
that his administration is focused on jobs.

U.S. unemployment is at 9.9 percent and will be a dominant
concern for voters in the November mid-term congressional
elections, where Republicans hope to take control of the House
from Obama’s Democrats and increase their numbers in the

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.

In addition, the Obama administration proposes small
business credit measures at the state level that could generate
up to $20 billion in private lending by leveraging $2 billion
of federal funding.

“Government can’t create jobs, but it can help create the
conditions for small businesses to grow and thrive and hire
more workers,” Obama will tell small business owners gathered
in the White House Rose Garden.

Stock Market Investing

(Reporting by Alister Bull and Steve Holland; Editing by
Vicki Allen )

UPDATE 1-Obama urges bipartisan support for $30 bln job aid