California Helping Small Business Create Jobs

Well I finished my last post, and up pops an article about President Obama’s decision to create a $30 Billion Small Business Lending Fund to assist community banks in extending credit to small businesses so they can create jobs and expand.

Some may love President Obama, some may hate him, everyone’s opinion is respected here, our purpose is to discuss this new Lending Fund.

What Is the Situation?

Well, in California 64% of the jobs created over the last 15 years were generated by small businesses.  Lending has been low and many small businesses haven’t been able to get the loans they need to create new jobs.

How Will it Work?

Community banks will be assisted to extend credit to small businesses.  The proposal will be to use $30 Billion in existing TARP funds to lend on the condition that they devote the highest percentage of their lending to small businesses and their communities.

Currently

Small businesses emply one half of the nation’s workforce but many have reported that their credit needs are not met and rely on credit cards to finance their daily oerations, up from 44 percent at the end of 2008.

Why is This Good for San Diego?

Here is what the City of San Diego has on it’s website regarding statistics here in the County: “Small businesses are the driving force of San Diego’s economy, representing more than 70,000 businesses (approximately 92 percent of all businesses in the City) and about half of San Diego’s job growth since 1991. The City of San Diego has created one of the first municipal Office of Small Business in California dedicated solely to helping small businesses succeed. The City also sets aside millions of dollars each year for programs to help small businesses prosper.”

92% of all businesses in the City of San Diego?  Hopefully that $30 Billion can be put to good use and less small businesses will have to close down.