Washington The Obama administration is setting aside $30 billion from the financial bailout fund for a range of initiatives designed to encourage lending to small businesses to aid the economic recovery.
With the financial system stabilized, the administration will focus most of its resources from the $700 billion fund on programs to revive the job market and keep people in their homes, according to an internal document obtained by The Associated Press.
The document spells out how the Treasury Department plans to spend money from the fund before it expires in October 2010. It says $40 billion would go to new and existing programs to boost consumer and business lending.
Of that amount, $30 billion would back lending to small companies, according to a Treasury official who spoke Friday on condition of anonymity because no final decisions on the program have been made. An additional $21 billion would finish funding the administration’s troubled mortgage relief program.