Yesterday President Obama announced that he intends to target a portion of the remaining TARP bailout funds to the needs of Small Businesses.

According to a summary of the president’s proposal posted on www.whitehouse.gov, this new plan would increase the funds available through Small Business Administration microloans from $35,000 per business to $50,000 to business and the funds available through 7(a) loans from $2 million per business to $5 million per business.

7(a) loans are typically used to purchase machinery, equipment, and real estate and can also be used to re-finance existing debts.  In contrast, micro-loans cannot be used to …