If you own a small business, you might be getting your own TARP funding soon. According to Washington Post reporting by David Cho, the White House is considering a proposal to use bailout money for loans to small businesses in the hopes of spurring more hiring.
The plan is to set up a new TARP entity that would allow banks to access funds without restrictions, so they in turn could offer attractive small-business loans. Similar proposals to stimulate bank lending failed because banks were hesitant to tie themselves to TARP restrictions.
The idea that a business loan will convince small-business owners to hire is controversial. SBOs I talk with just roll their eyes at the thought of adding debt and head count with the economic climate so unclear.
For small-business owners reading this, what do you think? Would attractive (presumably low interest) loans convince you to do some more hiring?