banks

Rachel takes a look at five of the Austin-area based banks and credit unions recommended by you the readers.

Related... (via Republic of Austin)

Officials in Washington are looking for ways to improve the climate for small businesses. President Obama on Wednesday will announce a set of initiatives that will provide more credit to more small businesses, and help small banks get access to bailout funds.

» E-Mail This     » Add to Del.icio.us

With U.S. unemployment near 10 percent, small businesses — which the government says created 64 percent of new jobs in the past 15 years — will need to play a major role in the recovery.

But, as they try to gear up for the holidays, some owners — like The Chocolate Truffle's Carlo Bacci — say banks and credit card companies are stunting their growth.

To date, banks have received more than half of the $700 billion of federal bailout money. Neil Barofsky, the special inspector general for TARP — the Troubled Asset Relief Program — is in charge of tracking those funds.

In his quarterly report, he says more than 80 percent of the banks surveyed reported using the government money for lending.

The country's banks have sold billions of dollars in stock to raise capital and shore up their finances. Banks are under pressure to raise more capital before the government will allow them to repay the bailout money, also known as TARP funds.

Banks are eager to repay the funds so they can avoid the special requirements that come along with the bailout money.