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Schumer Wants Federal Direct Loans for Small Businesses

WNYC Newsroom

NEW YORK, NY October 05, 2008 —New York Senator Charles Schumer says he wants the Small Business Administration to make short-term loans available to companies that are hurting.

SCHUMER: Because the banks are frozen in what they're doing, it hurts small business that depend on these daily and weekly lines of credit.

REPORTER: Small businesses, like Bill Petrick's Bilan Floor Covering, are facing a crisis. Petrick says his line of credit is crucial to staying in business.

PETRICK: There are often times that I'm awaiting payment on a large project and in the interim period while I'm awaitng this payment, my line of credit covers my day to day costs and my operating account. If I was to lose that line of credit, I would probably have to close my business.

REPORTER: Senator Schumer proposes creating a temporary small business direct loan program modeled after the student loan program.


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