President Barack Obama Friday proposed the next in a series of measures aimed at assisting small businesses and creating jobs.
Speaking at a mechanical contracting firm in Maryland, Obama said small businesses are the key to boosting hiring in an economy that continues to shed jobs despite a return to economic growth.
The president's remarks come after the Labor Department released a report earlier in the day showing that non-farm payroll employment fell by 20,000 jobs in January following a revised decrease of 150,000 jobs in December.
Despite the continue job losses, the reported also showed that the unemployment rate fell to 9.7 percent in January from 10.0 percent in December. With the unexpected decrease, the unemployment rate fell to its lowest level since a matching rate in August of 2009, although it still remains at a historically high level.
"Far too many of our neighbors and friends and family are still out of work," Obama said. "We can't be satisfied when another 20,000 have joined their ranks and millions more Americans are under-employed, picking up what work they can."
He added, "Even as we take additional steps to hasten that recovery, we know that there are limits to what government can do to create jobs. The true engine of job creation will always be businesses."
Obama noted that over the past 15 years, small businesses have been responsible for creating 65 percent of new jobs in the country.
After having already called for a tax credit for small businesses that add workers this year and proposing an additional $30 billion in federally backed loans, Obama Friday called for legislation to allow the Small Business Association to help firms refinance their commercial real estate mortgages.
"Right now even companies with great credit histories are facing challenges refinancing at what are historically low rates," he said. "Property values have fallen and lending has dropped."
He added, "As a result, many businesses that would otherwise survive this downturn are at risk of defaulting, which in turn will lead to even lower property values and less lending, not to mention lost jobs."
Obama also called for increasing the cap for SBA guaranteed loans and lines of credit.
"Next week, Congress will start debating many of the jobs proposals I've outlined today and in recent days, many of the proposals to benefit small business, many of the proposals to spur hiring," he said. "What I strongly urge is that we work quickly and we work together to get this done."
He added, "America's small businesses are counting on us."
SBA Administrator Karen Mills, said that the proposals would be another set of important tools for her agency to help boost small businesses.
"In the tight credit market of the last two years, lines of credits have been cut for small firms," Mills said. "Raising the limit on SBA Express loans to $1 million will mean more small business owners will have quicker access to this source of capital to help restock inventories and support larger revenue sales, and literally take that next step to grow their business and create new jobs."
She added that many small businesses have been facing falling commercial property values, endangering even strong creditworthy employers.
"With many of them now facing mortgages coming due in the next few years, the ability to refinance into SBA's 504 loan will give them the chance to lock in long-term, stable financing, as well as protect jobs by protecting small businesses from foreclosure," she said.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.