WASHINGTON: The Obama administration is setting aside $30 billion from the financial bailout fund for a program designed to encourage lending to small businesses to aid the economic recovery.
An internal document obtained by The Associated Press spell out how the Treasury Department plans to spend money from the fund before it expires in October 2010. The document show $40 billion would go to consumer and business lending programs.
Of that amount, $30 billion would support lending to small companies, according to a Treasury official who spoke Friday on condition of anonymity because no final decisions on the program have been made.
President Barack Obama said in October that the administration would create an expanded business lending program but officials have had trouble finalizing the details.
Another Treasury official, who also spoke on condition of anonymity, said a range of options were still being considered and key members of Congress were being consulted. He said final decisions were not expected until next year.
The internal briefing paper showed the administration is projecting it will commit an additional $21 billion to mortgage relief efforts. That’s on top of $29 billion already committed, bringing that program up to the $50 billion the administration has projected.
