Obama has been criticized for not helping small businesses in this bad economy. On Wednesday, he announced that “there’s still too little credit flowing to our small businesses” and he plans to do something about it. The proposed plan would allow small community banks to borrow money from the Treasury Department’s Troubled Asset Relief Program at a lower interest rate. These banks, in turn, could then loan money to small businesses. The Small Business Administration’s loan caps would also be raised but need to be approved by Congress.

There is concern that some small banks would not take advantages of the loans due to the restrictions that would be in place. This does not necessarily mean that any small business would be able to get a loan. Small business that do not have a strong business plan should consider getting a business plan writer to help solidify that plan. Banks also look at past performance and the ability to pay back such loans.