Key lawmaker urges administration to agree on legislation on lending to small business

Lawmaker urges work on small business loans

WASHINGTON — A key House Democrat is urging the Obama administration to work on a measure with lawmakers seeking to send bailout money directly to small businesses rather than through banks.

Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, said Friday, “I would urge the administration to work closely” with the head of the Small Business Committee to agree on legislation.

The administration has proposed using $30 billion of leftover money from the $700 billion federal bailout program to help community banks increase lending to small businesses. But many lawmakers want the money to be dispensed directly by the federal Small Business Administration.