While Washington has responded to the economic crisis by directing billions of dollars to help bail out banks, U.S. Senate candidate Al Franken said Friday he has a plan to help the middle class by unfreezing credit for small businesses.
Franken, a Democrat, announced his plan at a Friday afternoon news conference at W-Trek Outfitters in Duluth. W-Trek Outfitter owner Nodin Morgenstern liked what he heard.
“I am afraid of what’s happening with the economy,” he said. “I know these guys are fighting for me, for small businesses. The plan sounds solid.”
Morgenstern said lenders recently reduced his credit line, affecting his ability to pay for inventory in a timely manner. If the credit crunch continues, it could affect his ability to even secure inventory.
“Too much money is going to the wrong places,” Morgenstern said.
Franken said his plan would help small businesses like Morgenstern’s by making money more readily available, protecting existing jobs and helping create new jobs. Specifically, his plan calls for:
- Expanding the Small Business Administration’s loan guarantee program by $1 billion.
- Releasing $4 billion in direct loans to small businesses.
- Simplifying the loan approval process and eliminating fees for lenders and borrowers.
- Expanding the network of lenders.
Franken was accompanied by Rep. Jim Oberstar, D-Minn. Oberstar called the current situation “the biggest financial crisis since 1929.” He said the government needs not only to help Wall Street, but also small business, which creates about 80 percent of the nation’s new jobs.
Franken said President Bush and Sen. Norm Coleman don’t understand that “giveaways to the special interests and tax cuts for millionaire CEOs don’t create jobs. Small businesses create jobs. And we’re going to lose jobs here in Minnesota if we don’t do something to unfreeze credit for our small businesses.”
Coleman’s campaign said the senator’s support of the financial bailout bill is the way to promote small businesses.
“Senator Coleman, along with Congressman Oberstar, made the right decision by supporting the financial stabilization bill that included small business tax credits and provisions to ensure capital can stay in the marketplace during these difficult times,” read the Coleman statement. “Al Franken said he opposed this bill that is helping small business. Standing up for small business is not standing up at a press conference, it’s about having a record of doing what Senator Coleman has done — which is helping our small businesses grow and create jobs for Minnesotans.” .
Source:http://www.duluthnewstribune.com/event