Schumer Wants Federal Direct Loans for Small Businesses
Sunday, October 05, 2008
New York, NY —
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.