On the recordJuly 22, 2010
I would call this son of TARP. This carries a greater risk than the original TARP because the terms under which this money is given to banks is at a lesser rate. So that means the money that is paid back, there is less margin to cover losses. In addition, banks can continue to lower the cost of that capital by putting money out quickly to small businesses. Again, we like to see small business credit expanded, but we like to see it done in a market and healthy way. This is far riskier than the first program. Again, I know there are good intentions. All of us want to see small business thrive. All of us know that 80 percent of the new jobs are created through small business. What I would say to small businesses--and I don't think many of them support this, but to those that do--be careful what you ask for.
