A new economic team in place - time to tackle small business!

    President-elect Obama officially announced the key members of his economic team today.    He tapped Timothy Geither, for Secretary of the Treasury, and Larry Summers as Directory of the National Economic Council.   Also named were Christina Romer, Chair of the Council of Economic advisors, and Melody Barnes and Heather Higginbottom as Director and Deputy Director of the Domestic Policy Council. 

   Response has been positive to these appointments from many corners and from Republicans and Democrats alike.   Senator Richard Shelby (R-AL) said "...I believe he will be up to the challenge.  He knows a lot about the economy, and he knows a lot about problems...I think he will do well."    Let's hope all Americans, from both parties and all walks of life will work together to alleviate this difficult economic situation.   We are encouraged.

    Little action to date has been taken to provide targeted stimulus to small business.   Talk of a stimulus plan was overshadowed by a $25 billion auto bailout plan that failed to garner support in Congress last week.   A skeptical Congress asked the Big Three to come back with a more comprehensive plan after the Thanksgiving recess.   The Senate and House will likely return the second week in December to consider the auto bailout if a plan can be fashioned that is more acceptable to Congress.

    Also, it is expected that Congress will not pass any additional broad stimulus bill until the new Administration comes into power in January.   Prominent Members of Congress, such as Senate Majority Leader Reid, have suggested small business measures such as temporary guarantee and oversight fee elimination, for lenders in the SBA's 7(a) and 504 loan programs.   This is an issue WIPP has been ferverently pressing as a way to free up much needed capital for small businesses.

    The Obama team is reported eyeing a large 2 year stimulus package which they hope will create 2.5 million new jobs.   Obama's plan may include provisions that he proposed in his small business plan during the camapign.   Those include:   lifting the capital gains tax for start-up businesses; expanding the SBA loan and micro-loan programs; making the Research and Development tax credit permanent; and implementing the Women's Procurement Program that was signed into law eight long years ago.

    Both the House and Senate Small Business Committees took action last week to push the Treasury Department to free up credit to small businesses.   Senators Kerry and Snowe sent a letter to Secretary Paulson urging him to use some of the bailout funds to purchase pooled SBA loans to stimulate the flow of capital to small businesses.   The Committee expressed its worry that none of the bailout money has translated ino small business credit.   The House Small Business Committee held a hearing to urge the Treasury to free up capital for small business lending.   In addition, Chair Velazquez urged more agressive lending through the SBA small business loan program.   Both Committees demanded that the Treasury Department and Federal Reserve work with the SBA and take bold action to jumpstart lending.   The Treasury Department has come under fire from Capitol Hill for using the bailout money to buy up other banks, instead of freeing up lending.

    Check WIPP's and SBTV.com's websites for up to the minute information.