Obama unveils plan to boost small business credit

President Barack Obama, looking for ways to drive down high US unemployment in an election year, on Friday proposed to expand credit for small businesses and urged Congress pass laws to boost jobs."What I hope -- what I strongly urge -- is that we work quickly and we work together to get this done. America's small businesses are counting on us," Obama told a gathering of small business owners near Washington.Obama proposed Congress temporarily expand credit through two Small Business Administration programs, the latest in a series of White House efforts to improve the flow of credit to small businesses, which are a core source of new US jobs. His plan could become part of fresh legislation to aid U.S. employment percolating in Congress -- on top of a $787 billion stimulus package that Obama signed in February 2009. Or lawmakers could opt to go with their own ideas. The US Senate will begin debate next week on a series of bills to boost employment. The House of Representatives already passed a $155 billion jobs package in December.  US unemployment dipped to 9.7 percent in January, the lowest reading since September 2009, but the economy still shed another 20,000 jobs and Obama said these somewhat mixed numbers "are a cause for hope but not celebration." US growth jumped at a 5.7 percent annual pace in the fourth quarter but the recovery is still fragile. As a result, the White House wants to continue to stimulate activity with fiscal policy and prevent a double-dip recession.Eligibility restrictions                                      Obama's latest proposal to aid small business credit involved expanding an existing SBA program to support refinancing of owner-occupied commercial real estate loans. The White House estimates the plan would help refinance up to $18.7 billion worth of commercial real estate per year that might otherwise be foreclosed and liquidated.  To be eligible, small businesses must have certain types of first mortgage loans maturing within the next year. Firms would have to be current on payments for the previous year. Obama also proposed a temporary increase in the cap on SBA Express loans to $1 million from $350,000. The added cost would largely be covered by fees, a White House official said.  The official said expanding the loan size would help a broader range of small businesses. Announcement of the two programs comes just days after Obama proposed using $30 billion from the TARP bank bailout program to create a lending fund for small businesses. He has also suggested a $33 billion tax credit for small businesses that hire new workers, or increase the size of their payrolls by paying people more money in 2010.Other elements of the Senate's "jobs agenda" include extending unemployment insurance and aid to cash-strapped states, tax credits for businesses that buy new equipment, and incentives to weatherize homes that would also save energy.