Pocono News Section

Bank, Business React to Obama Proposal

Bank, Business React to Obama Proposal - Friday, February 5, 2010 at 3:25PM EST

Reported by: Laurie Monteforte
Friday, Feb 5, 2010 @ 03:25pm EST
EAST STROUDSBURG, MONROE COUNTY - President Obama announced a plan that he said could help small businesses. He wants to take $30 billion from the big banks repaid bailout funds and give it to small banks to loan small businesses.

Cyphers Auto Parts has been in business for 70 years. Three generations of family have been involved. But Carl Cypher is worried about the future. He explained, "Business is slow because our customers don't have any business."

Cypher is thinking about refinancing the business but he doesn't support the President's small business lending proposal. He said,"I think Barack Obama ought to stay out of the banking business and try to run the country as a President and protect us with national security and stay out of private businesses business."

When Cyphers refinances he wants to go to a bank that takes no government money at all. He explained, "Because banks who don't have to take government money have been running their banks in a good business way."

He's leaning toward ESSA Bank and Trust. It's a a Monroe County based bank that hasn't taken government money. ESSA President and CEO Gary Olson said, "We probably would not be interested in taking advantage of the program."

He told Eyewitness News many banks would be nervous about taking money from the President's plan. He explained, "The experience with the TARP dollars that came out had made banks very wary of government programs."

He added his bank doesn't need government help. It never made risky loans. He smiled, "ESSA has never stopped lending. We have plenty of money to lend." It's money that could help people like Carl Cyphers stay in business without help from the government.

The President believes his proposal would stimulate the economy and create jobs. Friday he outlined plans that would allow the Small Business Administration to help businesses refinance.