1:27 P.M. EDT

THE PRESIDENT:  Please, everyone, have a seat.  Have a seat.  Have another one of those cookies that's being passed around.  (Laughter.)

Speaker Pelosi, distinguished members of the House and Senate, honored guests, the Taoiseach and his entire delegation, all the extraordinary leaders from Ireland, Northern Ireland, who are here -- thank you so much for joining us in this wonderful St. Patrick's Day tradition.

As Speaker Pelosi mentioned, this lunch was begun under Tip O'Neill and Ronald Reagan, two men of Irish stock who loved a good scrap, but who also knew how to work together to find common ground, and to put the differences of the day aside in favor of laughter and good cheer at the end of the day.

In fact, looking at all of you, I'm reminded of a greeting President Reagan once offered the guests at this gathering.  "On St. Patrick's Day," he said, "you should spend time with saints and scholars.  So I have two more stops to make."  (Laughter and applause.) 

But, it is -- (laughter) -- it is wonderful to see so many wonderful Irish Americans, as well as so many who wish they were.  (Laughter.) 

People help you discover a lot about yourself when you're running for President.  As has been mentioned, it was brought to my attention last year that my great-great-great grandfather on my mother's side hailed from a small village in County Offaly. 

Now, when I was a relatively unknown candidate for office, I didn't know about this part of heritage, which would have been very helpful in Chicago.  (Laughter.)  So I thought I was bluffing when I put the apostrophe after the O.  (Laughter.)  I tried to explain that "Barack" was an ancient Celtic name.  (Laughter.)

Taoiseach, I hope our efforts today put me on the path of earning that apostrophe.

And of course, this St. Patrick's Day seems different than most because there's one person missing -- as it's already been mentioned -- one person who has touched all of us fortunate enough to walk these halls with his mentorship and his friendship; the hardest-working Irish American we know; friend to all, father to some:  Teddy Kennedy.  He sends his best, along with -- (applause.)

If I may speak seriously for a moment -- earlier this morning, I mentioned briefly the recent attacks in Northern Ireland by those who would seek to challenge a hard-earned peace.  And I told the Taoiseach, not all Americans are Irish, but all Americans support those who stand on the side of peace; and this peace will prevail.

This peace will prevail because the response of the people of Northern Ireland and their leaders to these cowardly attacks has been nothing short of heroic -- true profiles in courage.  They've condemned this violence, refrained from the old partisan impulses, made it absolutely clear that the future is too important to cede to those who are mired in the past.  The sight of former adversaries mourning and praying and working together this week should inspire us all, and strengthen our resolve to see that this peace does not falter.

And today, we also reflect on the fact that the past and the future of our nations are forever intertwined.  The Irish came to America with the dream of a better life, but they didn't just wait for somebody to hand it to them -- they helped forge the very promise of America:  that success is possible if you're willing to work hard for it.

Irish hands have signed our founding documents and fought in our wars.  They've helped build our greatest cities.  Through tragedy and triumph, despite bigotry and hostility, and against all odds, the Irish created a place for themselves in the American story.  We are a nation blessed with so many immigrant and ethnic groups that have contributed to that story -- and in doing so, they helped fashion a better life for all of us.

Now our challenge tomorrow, and in the months and years ahead, is to try and remember some of that spirit of this day -- to work together with a renewed commitment to overcome the obstacles that stand in our way, and toil just as passionately as our forebears to bring about a better life for all Americans.

And so to paraphrase some wise Irishman or woman -- may we govern -- may we who govern have the hindsight to know where we've been, the insight to know where are, and the foresight to know where we are headed. 

Taoiseach, thank you so much for being here and your lovely wife and the entire delegation.  Happy St. Patrick's Day to all of you.  Thank you.  (Applause.)

END
1:32 P.M. EDT

 

10:56 A.M. EDT

PRESIDENT OBAMA: Hello, everybody. Happy St. Patrick's Day.

I just want to say that we are incredibly honored to have the Taoiseach here, and his entire team. This is an affirmation of one of the strongest bonds between peoples that exist in the world. You know, when you think about the history of Ireland and the enormous impact it has had on our own history, and the fact that you've had people from Ireland who have shed blood on behalf of this country's independence and its freedom, that it has had probably as much impact on our culture and our traditions as any country on earth.

The bond and the friendship that is felt between the United States and Ireland is something that I think everybody understands, but as the Taoiseach just mentioned, we can't take for granted and we have to continually build upon.

And so this visit gives us an opportunity to talk about some of the very important bilateral issues that we face; also to talk about some of the global issues that both the United States and Ireland want to take leadership in. We are grateful for the lasting friendship that exists between us.

I, personally, take great interest on St. Patrick's Day because, as some of you know, my mother's family can be traced back to Ireland -- and it turns out that I think our first Irish ancestor came from the same county that Taoiseach once represented. So we may be cousins -- (laughter) -- we haven't sorted that through yet. But even if by blood we're not related, by culture and affinity, by friendship and mutual interest, we are certainly related. And this gives us an opportunity to just continue to strengthen the incredible bonds that we have between the two countries.

So thank you so much.

Q Will you visit -- President, will you visit --

PRESIDENT OBAMA: I hope so.

TAOISEACH COWEN: Can I first of all thank President Obama and Secretary of State and all his team for the wonderful welcome here to the White House. As President Obama has said, it's a great tradition here in the United States for a warm welcome for Ireland, and we deeply appreciate that welcome. And as I said, in area of contribution, since I came to America over this weekend, this relationship is based on substance, it's based on a very engaged America working with a contemporary, modern Ireland, helping to shape our history at home and helping us to contribute so much more by reason of our unity of purpose and our common values. And it is a great day for the Irish in America today, and I'm very conscious of that.

More than 44 million of our 70 million diasporas of the world are residing in the United States of America. And all of us, my own family, have reason to be very grateful to this country. After all, it's gone down the generations further as we've progressed -- and thankfully go home and marry childhood sweethearts and end up with Taoiseachs coming over here to meet a man whose forebears, as he said, was in my electoral district (inaudible). But since we're not related -- before coming to Ireland, the only thing I can say to him is he's not going to share a slate with me over there, because I can't compete with this man even in Ireland. (Laughter.) Because he would be very, very welcome.

And we look forward to an excellent discussion, as I said, on issues of mutual interest. And we are deeply grateful and appreciative of the wonderful access that our country is accorded on this great day for Ireland. And he reminds us, of course, that we are not simply an island nation, but a disperse global family -- and nowhere is that more celebrated than is this great country.

PRESIDENT OBAMA: Just one last point that I would like to make, and that is although I think it's wonderful that he visited the Oval Office and Washington, what you're really missing out on is the South Side Irish Parade in Chicago -- (laughter) --

TAOISEACH COWEN: I've been there.

PRESIDENT OBAMA: -- which I believe is one of the great events in America. It is a lot of fun. Although as President I don't think I could have as much fun as I could before I was President at that parade, because I have press following me all the time.

But, anyway, welcome, thank you so much for being here. Thank you, guys; appreciate it. We got to get down to business.

END
11:01 A.M. EDT

3:04 P.M. EDT

THE VICE PRESIDENT:  Thank you.  (Applause.)  Thank you.  (Applause.)  Folks, thank you very, very much.  Man, it's good to be with you.  (Applause.)  It's good to be with you.  (Applause.)  Please, thank you very, very much.  (Applause.)  Thank you.  (Applause.)  It's good to be home with all of you.  (Applause.)  Thank you so much.  I appreciate that warm welcome.  And understand that the feeling is mutual.

Let me begin by thanking Harold.  Harold was always an ally and a good acquaintance.  But during the campaign, and since the campaign, we've become close personal friends.  I want to tell you that I know of no labor leader, I know of no business leader, I know of no leader who bleeds more for the losses of his men and women, and who cares more about their physical and financial security than Harold Schaitberger.  And, Harold, they're lucky to have you, and you're lucky to have them.  It's a good marriage.  (Applause.)  

Now, about that bell.  (Laughter.)  I got two things about the same time:  I got a bell, and a German Shepherd puppy.  (Laughter.)  And I got 13 acres that is fenced in, in the middle of 75 acres.  I always voted for public housing -- I never knew it was going to be this good.  (Laughter.)  And guess what -- (applause) -- German Shepherd puppies respond to bells.  (Laughter.) 

Ladies and gentlemen, I think we should start by -- I want to personally -- give a personal thank you.  As they say, as the President says, a shout out to Mayor Nutter of Philadelphia for keeping those fire stations open.  (Applause.)  We did it.  We did it.  (Applause.)  Five engine companies and two truck companies, and more importantly, all those jobs saved.  It was one of the first pieces of the economic Recovery Act we were actually able to put to work, and put to work the way we want to see that money put to work.  We want to see it -- put the money into saving jobs, but also, particularly saving jobs that are absolutely essential to the community, the safety and well-being of the community. 

So I -- and I was in Philadelphia this morning.  I'm there a lot.  This morning my mom was operated on.  She's 92 years old, and God love her, she came through.  She broke her hip, and she came through the operation incredibly well.  I told her that -- (applause) -- those of you who've met my mom, you know she's fairly politically astute -- (laughter) -- and she still runs the show.  And so I said, "don't worry, Mom -- last night I went up to see her, and with, obviously, my brothers and my sister and my wife and my brother-in-law and sister-in-law and my daughter and my -- everybody is up, because Mom-Mom runs the show.  You think I'm joking -- I'm not.  (Laughter.) 

And I said, "Mom, don't worry, I'll be here when they take you up.  And you were here for me, joking for every operation."  My brother leaned down to her.  He said, "Mom, you know how you always say, 'I'd rather be there than you?'  He said, "Mom, I'm glad it's you instead of me."  (Laughter.)  And he has got this sense of humor, and he made her laugh. 

But, I said, "I cleared my schedule tomorrow."  She said, "Valerie said you were talking to the fire fighters."  I said, "Yes, Mom, but I'll get a chance to talk to them again."  She said, "Joey, talk to the fire fighters."  Then she turned to my sister, "And, Valerie, you're still doing that St. Patrick's Day speech in Scranton, aren't you, tomorrow?

So, ladies and gentlemen, it's evidence -- and I'm not joking -- it's evidence that my family -- I always tell you about how I owe you and how much I care about you all.  But my whole family does, because my family knows what you've done for me -- not just in my political life, what you've done for them.  You know, I told you before I owe you all.  I owe the fire fighters in my state. 

I will not bore you again, but my mom remembers and knows full hand, since she helped me raise my children, when your guys used the jaw of life to save my two boys.  My mom knows, and so when she said, talk to them -- she didn't know exactly when -- but talk to them -- because she also knows you saved my life.  And you know the story behind that.  And she also knows you saved my home, because this isn't just about me and my sons and my wife, it's -- I just think you guys underestimate the impact you have on families. 

The job you do every day that you do -- you put on that helmet, you put on that gear, you jump on the back of that truck, and you jump on that ambulance and you do what you got to do, and you say that's your job.  Well, to you it's a job; to us it's our lives.  And we owe you.  And I just want you to know that it is something that everyone in my family fully understands.

I would not have ever become a United States senator, and obviously I wouldn't be here if that hadn't happened were it not for the fire fighters in my state.  As I've told you before and I'll say it again for the national press, we got three political parties in Delaware -- Democrats, Republicans and fire fighters.  (Applause.) 

And I didn't realize it, but every once in a while -- every once in a while I say a lot of things.  (Laughter.)  I have a bad habit of telling you what I think.  (Laughter.)  And in my first campaign in 1972, I stood before the fire fighters in my state -- all professional, both volunteer and paid -- and they were all together.  And I said, look, folks, I need your help.  And I said -- and I used the phrase, there are three political parties in the state, and if you've got to have one, I choose the fire fighters.  Well, the firefighters kept my back my entire political career, as well as in terms of my personal life.  And so I owe you in more ways than one.

You know, each and every day, I, like you, read the papers about another fire fighter who's lost his life, another father of three who courageously heads into a building to save an entire building of families, but tragically leaves his own life behind  -- and a family behind.  For me, this debt is personal, like it is for so many.  And there is only one way to repay that debt -- and I mean this sincerely, and I hope my career has demonstrated I mean it -- is to equip you, is to train you, and is to give you everything you need not only to protect our lives, but to protect those of your fellow fire fighters.  (Applause.)

Like you, I don't want to read another obituary about a fire fighter who lost his life by putting himself in harm's way for the good of the community.  I don't want to open the newspaper and see the story of Kevin Kelley of the IAFF Local 718 in Boston, who died in an apparatus accident, leaving behind a wife and three daughters.  I don't want to read more about Michael Darrington's family -- I don't want anymore Michael Darringtons of International Fire Fighters Local 92 in Toledo; or Brion Newkirk of your union Local 888 in Greeley, Colorado; or Jeff Mann of Local 1883 in Henderson, Nevada -- or any other -- any other women and men who have, and we know, will lose their lives.  The list is -- sadly goes on.

Now, look, I understand -- I'm a realist.  I'm a pragmatist.  I understand we can't make an inherently dangerous profession safe.  I get that.  I know that.  So when I say these things sometimes my critics say, well, this is an inherently dangerous profession.  I say, I get that.  But we certainly can make an inherently dangerous profession safer than it is today.  (Applause.)  We can do that in the process.  

I've read the studies conducted by the U.S. Fire Administration that found that most fire departments -- most fire departments are unable to respond to many of the common emergencies with the existing staff they have.  I read another study, the National Institute of Occupational Safety and Health, which I referenced to you last time I spoke to you, that identified -- and I want the public to hear this -- the lack of staffing is the key cause of fire fighter fatality.  (Applause.)  Lack of staffing.  (Applause.)

Look, folks, basically it's clear -- it's clear to me, it's clear to you, we got to make it clear to every American and every senator and congressperson, governor, county council person and mayor -- it's clear to me that the single greatest reason for fire fighters' deaths is that there's simply not enough fire fighters.  I've read the studies, but you have lived the reality. Each and every day, you strap on your helmet and jump on the back of that truck.  Look, ladies and gentlemen, my friends, I promise you that this is about to change in this administration.  (Applause.)

Folks, I know you know me.  But let me tell you about a guy you're going to get to know a lot better if you don't already -- is the President of the United States of America, Barack Obama.  He is as committed as I have been my whole career, and his when he was a legislator and as a senator, to making your job easier and less dangerous, both with better equipment, more fire fighters, and continued better training.

You know, we've already increased funding for stations, equipment, better training, more protective clothing.  We included $210 billion in the Recovery Act.  We're committed to increasing funding for SAFER, which will go directly to fire departments, so you can hire more trained fire fighters to work by your sides and retain -- important point -- retain fire fighters who are in danger, as they were in Philadelphia, of being laid off. 

Finally, the Public Safety Employee Cooperation Act, blocked by the last administration, will pass this time, and the President will sign it and he'll sign it with pride.  (Applause.) With pride, he'll sign it.  (Applause.)

Look, folks, I don't want to take too much of your time.  As my mother would say, God love you -- you've had to hear about 300 speakers already and there's 400 behind me.  (Laughter.)  But, folks, the truth is, as you commit to saving the lives of Americans who are in danger, you continue to do that and we will continue, Barack Obama and I will continue to do everything we can to not only deal with saving their lives but saving your lives.  They're not just puffed-up platitudes.  This is your new government taking bold action to ensure that as a community of fire fighters, you are as strong as possible. 

It's in our nation's own naked self-interest, because when your community -- your community -- and I don't mean the one you live in -- the community I'm talking to right now, the men and women in front of me, and the tens of thousands of you across America, when your community is stronger, my community, the community I live in, is safer.  It's that simple, straightforward.

You've heard me say it before.  You know what you've heard me say, and I want to -- I'm going to continue to repeat it as long as there's a breath in me.  Everybody has their own image of 9/11, that tragic day, the tragic events, where there's the towers crumbling, the Pentagon ablaze, that -- those brave Americans taking control of a cockpit and taking down a plane before it could take out its target in Washington, D.C., killing hundreds of Americans. 

But I tell you, you've heard me say it, the single most vivid image emblazoned in my consciousness relating to 9/11 was that grizzled fireman coming out of that dust and human debris, but with a sense of rectitude and determination on his face.  That single image, at a moment when America needed images, lifted America off its knees.  That single image inspired the American people, let them know, just like the look on his face, we will get through this and by darn we will nail those guys who did it to us.  That's the image that came through.  It wasn't just all your fire fighters who lost their lives.  It was the resolve. 

And the thing about you guys that I love about you men and women is you're crazy.  (Laughter and applause.)  You're crazy.  You're the same guys I hung out with in my neighborhood.  (Laughter.)  When it came time to picking a team, you were the guys I wanted on my team.  I usually got them, too.  (Laughter.)  You're the guys, and women, who have that grit and determination that was communicated to the whole world.

You know, you guys jump off the back of the apparatus after a fire, and the interesting part that not as many Americans know is you take off that gear, and half the time some of you are hustling to get out of the fire hall, because you got to coach your daughter in her Little League game; you got to go to the Pop Warner game; you got to make sure that you show up with that group of people you help organize to build that ramp for the veteran who was paralyzed in Afghanistan or in Iraq. 

Folks, the thing about you all that people don't get, is it runs through your whole being.  The very thing that made you firefighters make you such darn good citizens.  Think about it.  Think about any other profession.  How many people are so involved in the things in the community that matter to people's lives? 

I know you like the excitement.  As I said, you're crazy.  (Laughter.)  I know you like the excitement.  I know it.  But the thing you guys all try to hide is the pride you take in trying to help other people.  You all go, yeah, yeah, yeah, right, yeah, right -- because it's not supposed to be.  In a sense, that's a little bit too -- how do I say it -- that's not tough stuff.  But that's what you guys have in your gut, a desire to help.

You know, everything you set your mind to, you succeed, because you're family.  It's awful when a life is lost, but only you guys, cops and the military make sure, like we say -- they say in the battlefields of Afghanistan and Pakistan, we leave no one behind.  Well, what people don't understand about you all is not only no one behind in the building; you leave no family behind who has lost someone in the building. 

Folks, you know, look, you're the core of the communities we live in.  And it's time we began to recognize your value.  We did for that brief shining moment after 9/11, but it began to fade a little bit.  It's time you not only got the momentary respect, but the sustainable respect you deserve.  And by the way, don't, as I said before, don't tell me you respect me and tell me I can't organize.  Don't tell me you respect me and you're not going to give me the sufficient training.  Don't tell me you respect me and not give me the machinery and apparatus I need to do my job.  Don't tell me you respect me and tell me I got to do my job with fewer people, knowing I'm putting my other comrades at risk.  Respect is more than a word.

And so my objective and the President's objective is to institutionalize that respect.  It's not just about saying when you do something for us, thank you, and I really appreciate it.  It's about the institutional respect of giving you the equipment, the training, the manpower, the capacity to protect yourself and your communities.

Look, folks, I can still see that fireman on 9/11 as vividly as I did back then.  I see the firemen who saved the lives of my boys.  I see the firemen that saved my life and took me down -- got me to Walter Reed.  I see the firemen standing out my side -- outside my house in a pouring rain, and a woman firefighter and a police officer, a woman police officer, giving my wife a coat to put around her, taking their coat off because she was in her bathrobe and it was soaking through.

I can still see those guys in masks looking through the windows, that I could hardly see into my home.  I see it when I see each of you.  I see it when I talk to Harold*.  I see the embodiment of sacrifice and courage that gave America and continued to provide some of its backbone.  And it's time we thanked you all for what you do.  It's time we repay an immeasurable debt that we have you, not a political constituency, but to the men and women who personally change the lives of so many of us.

It isn't about -- you've heard this trite phrase -- Democrats and Republicans.  Hell, some of you guys are still stupid enough to be Republicans.  (Laughter and applause.)  I don't get it.  I don't get it.  That's a joke.  I say to the national press -- they clap -- it is a joke.  It is not a gaffe.  It's a deliberate joke.  (Laughter and applause.)  But guess what?  Even you guys didn't vote for me, I still love you.  (Laughter.)  Not as much as I love the others, but I still love you.  (Laughter.) 

Look, this is about kinship of character and commitment to country.  I'll remember forever how indebted I am to all of you.  I'll remain forever your friend, no matter what you do.  I love you all.  And I thank you on behalf of our government.  I thank you on behalf of our President.  I thank you on behalf of the tens of thousands of people, the people just assembled in this room, just you all -- the thousands of people whose lives you've changed, who also owe you a debt.

Ladies and gentlemen, let's get to work.  Thank you.  (Applause.)

END
3:28 P.M. EDT

 
 

12:29 P.M. EDT

THE PRESIDENT: Thank you very much. First of all, Marco, thank you for the wonderful introduction. I don't know if people heard properly here, but this is a all-natural health food restaurant in Philly. (Laughter.) So I asked him what was the equivalent at his shop for a cheese steak. (Laughter.) And he described for me -- what was it, a chicken --

MR. LENTINI: It's our Chicken Italiano. (Laughter.) It's a chicken cutlet, spinach Florentine, sharp provolone, all on an Italian ciabatta bread. (Laughter.)

THE PRESIDENT: Right. So I wanted to know if there was Whiz on that. (Laughter.) And he said, no. (Laughter.)

Marco is an example of what small business is all about. And I think Cynthia is an example of what community banks are doing all across the country, partnering with small businesses in order to create jobs and opportunity and entrepreneurship that's been the driving force in our economy for so very long.

So I thank all of you, particularly the small businesses and community bankers who are here today. And I thank the two of you, as well as some of the other entrepreneurs that we met, and bankers that we met, before this public event. Thank you for sharing your stories.

I also want to thank the Chair and Ranking Member of the Senate Committee on Small Business and Entrepreneurship, Senators Mary Landrieu and Olympia Snowe. Please give them a big round of applause. (Applause.) As well as the Chair and Ranking Member of the House Committee on Small Business, Congresswoman Nydia Velazquez and Congressman Sam Graves, who are here as well. (Applause.) I want to thank them publicly for being here, but also so much of the good work that our proposals today are building on has to do with the vigilance that they've shown on their committees. So we very much appreciate that.

Now before I talk about the new steps we're taking to get credit flowing to small businesses across our country, I do want to comment on the news about executive bonuses at AIG. I think some of you have heard a little bit about this over the last few days. This is a corporation that finds itself in financial distress due to recklessness and greed. Under these circumstances, it's hard to understand how derivative traders at AIG warranted any bonuses, much less $165 million in extra pay. I mean, how do they justify this outrage to the taxpayers who are keeping the company afloat?

In the last six months, AIG has received substantial sums from the U.S. Treasury. And I've asked Secretary Geithner to use that leverage and pursue every single legal avenue to block these bonuses and make the American taxpayers whole. (Applause.) I want everybody to be clear that Secretary Geithner has been on the case. He's working to resolve this matter with the new CEO, Edward Liddy -- who, by the way, everybody needs to understand came on board after the contracts that led to these bonuses were agreed to last year.

But I think Mr. Liddy and certainly everybody involved needs to understand this is not just a matter of dollars and cents. It's about our fundamental values. All across the country, there are people who are working hard and meeting their responsibilities every day, without the benefit of government bailouts or multi-million dollar bonuses. You've got a bunch of small business people here who are struggling just to keep their credit line open -- that they are foregoing pay, as one of our entrepreneurs talked about, they are in some cases mortgaging their homes, and doing a whole host of things just in order to keep things afloat. All they ask is that everyone, from Main Street to Wall Street to Washington, play by the same rules. And that is an ethic that we have to demand.

And what this situation also underscores is the need for overall financial regulatory reform, so we don't find ourselves in this position again, and for some form of resolution mechanism in dealing with troubled financial institutions, so that we've got greater authority to protect American taxpayers and our financial system in cases such as this.

Now, we already have resolution authority -- excuse me, I'm choked up with anger here -- (laughter) -- we always -- already have some of that resolution authority when it comes to a traditional bank. But when you start getting into AIGs and some of these other operations that have a whole bunch of different financial instruments, then we don't have all the regulatory power that we need. And this is something that I expect to work with Congress to deal with in the weeks and months to come.

Well, we're here today to talk about how my administration can help the millions of small businesses bearing the brunt of this credit crisis. And Secretary Geithner and I just met with not only Marco and Cynthia, but a number of other small business owners and community lenders who shared with us experiences that are familiar to so many.

Small businesses are the heart of the American economy. They're responsible for half of all private sector jobs –- and they create roughly 70 percent of all new jobs in the past decade. So small businesses are not only job generators, they're also at the heart of the American Dream. After all, these are businesses born in family meetings around kitchen tables. They're born when a worker takes a chance on her desire to be her own boss. They're born when a part-time inventor becomes a full-time entrepreneur, or when somebody sees a product that could be better or a service that could be smarter, and they think, "Well, why not me? Let me try it. Let me take my shot." That's Marco's story, which he just shared with us.

That's Brian Conrad's story. When Brian's company eliminated his department -- Brian is sitting right there, so I don't want to embarrass him here, but it's a great story -- he lost his job, but he found his calling and started, you know, doing all kinds of work on a restaurant called the Blue Monkey, which now employs some 40 people in Pennsylvania's Lehigh Valley.

That's Carmen Jones's story. Carmen is over there. Carmen was disabled in an accident a few years ago. And in facing personal trials, she discovered a reservoir of strength and an untapped market. So today she helps companies advertise and sell their services to people living with disabilities.

This is America's story –- a place where we believe all things are possible; where we are limited only by our willingness to take a chance and work hard to achieve our dreams. But today, too many entrepreneurs can't access the capital to start, operate, or grow their business. Too many dreams are being deferred or denied by a form letter cancelling a line of credit.

And this is a consequence of the credit crisis, which began when some banks bundled and sold mortgages in complex ways to hide risk and avoid responsibility. The collapse of these mortgage-backed securities and other complex financial instruments froze the credit markets, including the markets that help small businesses access loans to cover payroll, to purchase supplies, or to expand in ways that create new jobs.

And I think it's important just to take a moment to understand -- here's how these markets work. A community bank, like the one run by Cynthia, offers an entrepreneur, like Marco, a loan to open up a restaurant. Before this crisis, Cynthia had two options. Her bank could hold the loan and receive regular payments from Marco as he pays back the amount that he borrowed plus interest. But another option was the bank could also sell part of the loan as an asset to a larger bank or to an investor. And that means that her bank could then use these new funds for more business loans and auto loans and home loans and student loans.

That's why this secondary market -- Cynthia's ability to resell loans -- is so important: It means banks can offer small businesses and families more credit because the bank has more money on hand. If Cynthia could get that $11 million of SBA loans that she currently holds in her portfolio, if she can get that into the secondary market, that's now $11 million that she can make work back in her community.

Today, unfortunately, there aren't nearly as many secondary buyers for these kinds of loans -- even when they're guaranteed by the Small Business Administration. So community banks cannot bring in the funds necessary to provide as many loans. And as a result, we've seen a precipitous drop in lending to small business.

The SBA typically guarantees $20 billion in loans annually. But this year, lending may fall below $10 billion. Even businesses with impeccable credit can't access loans.

So entrepreneurs and their employees pay an enormous price. But the whole country pays a price, as well, because less lending leads to fewer jobs and lower spending, which leads to less lending -- a vicious cycle that delays our recovery. And small businesses don't just provide jobs -- they provide the innovations that help us lead in the global economy.

Smaller companies produce 13 times more patents per employee than large companies. Now, think about it. Hewlett-Packard began in a garage. It was a small business. Google began as a research project -- small business. The first Apple computers were built by hand one at a time -- small business. McDonald's started with one restaurant. Marco, I know you've got ideas. (Laughter.) Small business.

Our recovery in the present and our prosperity in the future depend upon the success of America's small businesses and entrepreneurs. And that's why my administration has already taken aggressive action on their behalf.

My recovery plan, as already been noted, raises the guarantees on SBA loans to 90 percent and eliminates costly fees for borrowers and lenders that can be too costly in a recession. And these changes are being implemented now, fulfilling a campaign promise that I made. The recovery plan also includes a series of tax cuts for small businesses and tax incentives to encourage investments in small businesses. And the Treasury Department has launched the Consumer and Business Lending Initiative to help unfreeze the credit markets.

I've also proposed, as part of my budget, that we reduce to zero the capital gains tax for investments in small or startup businesses -- expanding and making permanent one of the tax cuts in the recovery plan. And my budget, as part of our health care reform efforts, calls for tax credits and other assistance to help small businesses offer coverage to their workers.

So we've already done a lot. But we've got to do more. And none of these steps will be effective unless we unlock the credit markets that are denying small businesses the loans they need to grow.

Therefore, as part of my Financial Stability Plan, the Treasury Department will begin purchasing up to $15 billion of SBA loans through the Troubled Asset Relief Program, or TARP. We will immediately unfreeze the secondary market for SBA loans and increase the liquidity of community banks. Cynthia's bank is going to be able to sell those $11 million loans so that she's got more money to lend. (Applause.)

So with this action, any lender that provides SBA small business loans will have a buyer for those loans. And in turn, community banks will no longer have to choose between providing loans to creditworthy small businesses and maintaining the required capital and liquidity.

Now, this plan is the latest step –- but by no means the last step –- in our ongoing efforts to stabilize the financial markets on behalf of businesses and consumers. We'll be outlining further steps on behalf of small businesses in the weeks and months ahead. And we will continue to do whatever is necessary to lead this economy out of recession and lay the foundation for long-term prosperity.

That's what the small business owners in this room expect us to do. They're folks like John Wilson, the president and part owner of a small business in Raleigh, North Carolina. He wrote to me a few weeks ago and participated in the meeting we just held.

And John's business, NC Design Group, sells cabinets and interior design services. And not surprisingly, it's been a tough year. Sales have fallen by half. And keep in mind, John had previously doubled what had started off as a very small business, to the point where he's providing a living for -- it was up to 40 -- 48 people. And John did all that he could to save loans. The owners, including John, have taken no compensation. But they had to reduce the size of their company from 48 employees to 34. And John just told the group of us that he personally took the time to speak to each and every person that he had to lay off. And I don't think he minds me sharing that he cried each time he did it, because it's a hard thing when somebody is working hard and committed to helping you build your business, you having to lay them off.

And now, even though they've never been late on a payment to the bank, they're having trouble keeping a credit line. It's putting his small business –- and the 34 jobs left –- in jeopardy.

Now, John is not looking for a handout. He's looking for the opportunity to succeed. And he said it best himself in his letter, and I'm quoting from the letter here: "Small business people are incredibly resilient and resourceful given half a chance," he said. "But we need the chance."

Well, I want to say to John and to every American running a small business or hoping to run a small business one day: You deserve a chance. America needs you to have that chance. And as President, I will continue to do everything in my power to ensure that you have the opportunity to contribute to your community, to our economy, and to the future of the United States of America.

Thank you, everybody. Thank you. (Applause.)

 

SBA Attending (in alphabetical order by organization name)
AD PRO web, Tracy Stanhoff
American Enterprise Bank, David Schroeder, President
Argand Solar, Eric Lensch, CEO
Associated Black Charities of Maryland, Diane Bell-McKoy, CEO
Audio Description, Joel Snyder, President and CEO
Avanti Food Corporation/Gia’Pronto, Marco Lentini, Founder and President
AYT Auto, Gary Tian Zhu, Owner
Bank of the West, Cynthia L. Blankenship, Former Vice Chairman
BBVA Compass Bank, Greg Clarkson, SBA Division Manager
Belonger Corporation, Jean Marie Thiel, Founder
Bender Consulting Services, Joyce Bender, President
Bennett, Hutt @ Co, CPA and Advisors, Louis Hutt, Jr., Managing Member
Blue Monkey, Brian Conrad, President
Busboys and Poets, Andy Shallal, Owner
Business and Professional Women USA, Deborah Placket-Frett, CEO
Business and Professional Women USA, Rachel Lyons, Director of Public Policy
Caddo Solutions, Donald Kelin, President and CEO
Citizens Bank, Deborah Cole, President and CEO
CMSI, Jim DeFrancesco
Credit Union National Association, Mary Dunn
Daytner Construction Group, Theresa Alfaro Daytner
De Novo Health, Charles Ritchey, CEO
Document Systems, Inc., Joel Limerick, President
En Route, William Gehrman, President
Figueredo Enterprises, Inc., Jorge E. Figueredo, President and CEO
Giant Robot/GR2, Eric Nakamura, Co-founder and Publisher
ICS, Garland Williamson, CEO
ICV Capital Partners, William Woods, President
Independent Community Bankers of America, Paul Merski, President
Integrated Packaging Corp., Albert Fuller, President
Inter Tribal Economic Alliance, Tex Hall, CEO
Lamar Associates, Walter Lamar, President and CEO
Lebanese Taverna, Gladys Abi-Najm, Owner
Liberty Bank, Alden McDonald, Jr., CEO
Liz Hill PR, Elizabeth Hill, Owner
Madison Services Group, Ann Sullivan, Policy Director
Maryland Hispanic Chamber of Commerce, Carmen Ortiz Larsen, President
National Association of Government Guaranteed Lenders, Jane Butler
National Gay and Lesbian Chamber of Commerce, Kathryn Karasmeighan, Chief of Staff & Director of Affiliate Relations
National Restaurant Association, John Gay
National Restaurant Association, Elizabeth Johnson
National Small Business Association, Kyle Kempf, Senior Director of Government Affairs
National Small Business Association, Dan Danner
NWA Media, Aaron, Cater
NWA Media, Sarah Cater
Minority Business Roundtable, Roger Campos, President
NAGGL, Tony Wilkinson, President and CEO
NC Design Group and 1st Choice Cabinetry, John Wilson
Omni Studio, Eileen Kessler, President
Parker Muldrow & Associates, Ackneil Muldrow II
Red Hand Media, Thomas Redcorn, CEO
RVCA Clothing, Patrick Tenore, Owner & Head Designer
Seventh Generation Concepts, Ivan Makil, Founding Partner
Small Business Association, Toby McGrath
Small Business Majority, John Arensmeyer, Founder and CEO
Solutions Marketing Group, Carmen Jones, Founder and President
SONORAN BANK, Frank X. Coumides, Senior VP
Sterling Construction, Sterling Crockett, President
Susquehanna Patriot Bank, Lynn Ozer
Tanka Bar, Karlene Hunter
The Bing Group, Kirk Lewis
The Turning Point of Utah/Turning Point Centers, Debbie Sanich
Tyonek Group, Brett Garber, CEO
U.S. Dept of the Treasury, Gary Grippo, Deputy Assistant Secretary for fiscal operations and policy
US Hispanic Chamber of Commerce, David Ferriera, VP
US Hispanic Chamber of Commerce, Augustine Martinez, President
US Pan Asian American Chamber of Commerce, Susan Au Allen, National President and CEO
Virginia Hispanic Chamber of Commerce, Michel Zajur, President and CEO
Wallace Law LLC, Megan Wallace, Principal and Founder
Witeck Combs Communications, Wesley Combs, President and Co-Founder
Witeck Combs Communications, Robert Witeck, CEO and Co-Founder

END
12:46 P.M. EDT