Administration considers help for small business

WASHINGTON -- The Obama administration is considering using money from the $700 billion financial bailout fund to provide further assistance to the nation's struggling small businesses, in a continuing attempt to find a way to make up for clogged credit.

Officials said Friday that no plan had emerged although small business has been a subject of staff level talks in Obama's economic team.

But the officials stressed that the plans underscore that the White House and Treasury Departments, together with the Small Business Administration, are aware of the problems confronting main street America.

Two officials spoke on condition of anonymity because they were discussing internal administration deliberations in which no decisions have yet been announced.

One idea under consideration is using a program that helps banks lend to small businesses at low rates.

"This idea, among many others, has been discussed, but nothing is imminent," said White House spokesman Matthew Vogel. "The administration is continually in policy discussion focused (on) how we can best serve the taxpayers by speeding along economic recovery."

Officials said the idea could ultimately end up being scrapped in favor of something else.

The administration is still trying to implement a program for small businesses that it announced last March when it devoted $15 billion from the Troubled Assert Relief Program to buy securities in secondary loan markets. The idea behind that plan was that the purchase of securities would improve credit conditions for small business.

The ideas now being discussed include providing more direct assistance to small businesses. One official said that the administration is trying to be careful that any money from TARP goes to businesses that have been hurt by the credit crisis, not simply troubled small businesses.

The administration discussions were first reported on the Washington Post Web site.