(Thumbnail image: SOHO Blog)

“Shallal is looking to expand and add about 40 employees, but despite good business, the economy is still holding him back. He can’t get a loan... The harsh reality many small businesses face and something President Obama is now promising to tackle.” (CNN)

On Monday, President Obama met with top banking officials and ask them to expand their small business lending practices.  The request comes on the heels of a new strategy to boost jobs and find a way to curtail the country’s unemployment rate. 

We’re looking at perspectives on the current small business lending situation from CNN, FOX News, The Los Angeles Times, and My San Antonio.

First on FOX News Sunday, Missouri Senator Claire McCaskill explains how she thinks small business loans can rejuvenate employment.

“Make no mistake about it, Chris, if we’re going to grow this economy the way we should, not with government employees, but with small business growth, we’ve got to get loans out there to small businesses. I think the most important thing we have to focus on right now is credit to small businesses so they can begin adding employees, which is a healthy way back to a more sound fiscal picture.”

On CNN’s State of the Union financial expert Suze Orman said the government can pass bills to make lending easier for banks, but in the end the banks make the decision on loaning.  She had this message for banks who don’t lend to small business owners.

“If you don’t start helping those with loan modification, if you don’t start helping those that need loans, in order to do what? Have a small business.  If you don't help those that really need you, then we’re going to have to do something about it.  I don’t know what it is, John.”

On FOX and Friends, FOX Business Network’s Connell McShane brings the perspective that banks are attracted to big business loans because of their relative safety and high profits.

“The banks are saying ‘Hey listen, why are you asking us to do what essentially got us in trouble in the first place?’  That’s their argument, make what we might think are bad loans. Do you buy that? Not necessarily, but the other part of it for the banks, this is the real story, they’re able to make a profit in other areas because they’re getting free money, right? They’re able to borrow – what are interest rates? Zero. They’re able to borrow for nothing and they can invest somewhere else and make a ton of money and there’s no motivation or need for them to necessarily make these loans, even though you can make a moral or ethical argument that they should.”

The Los Angeles Times points out that not enough diligent monitoring from the Small Business Administration has actually made lending riskier.

“The Small Business Administration is failing to adequately monitor lenders in its $91 billion loan program, increasing the risk of defaults.”

My San Antonio said small business owners aren’t getting more loans because they aren’t asking for them.

“But on the other side of the equation, businesses have not been eager to expand their credit because the economy has been so week.”

So what do you think?  Should the government ask banks to lend to small businesses and do you think it will help boost jobs?

Writer: Jennifer Herseim

Producer: Nathan Giannini