Obama Eyes TARP Funds for Job Creation

Posted December 7, 2009 at 2:45pm

President Barack Obama on Monday said that he is considering using some funds from the Troubled Assets Relief Program to spur job creation.

Obama, who spoke to reporters at the White House following a meeting with Turkish Prime Minister Recep Tayyip Erdogan, said TARP had turned out to cost less than expected and that while some money “can be devoted to deficit reduction,— other money could be used to help small businesses.

“The question is, are there selective approaches that are consistent with the original goals of TARP — for example, making sure that small businesses are still getting lending — that would be appropriate in accelerating job growth?— Obama said. “Small businesses and some medium-sized businesses are still feeling a huge credit crunch — they cannot get the loans that they need to make capital investments that would allow them to then expand employment. And so that’s a particular area where we might be able to make a difference.—

The president added that he will be “addressing that tomorrow— in remarks he is slated to give detailing a variety of job-creation ideas. But White House Press Secretary Robert Gibbs later suggested that the amount of detail Obama will provide on the use of TARP funds for jobs will be contingent on how ready the proposal is for airing Tuesday.

Gibbs added that Obama’s remarks Tuesday would not include the “totality— of his proposals on the jobs front.