Private lenders pledge to increase small business lending

Vice President Joseph Biden and Small Business Administration head Karen Mills recently announced pledges by 13 private lenders to increase U.S. small business loans by a total of $20 billion over the next three years. The additional funding is expected to help boost small business growth and hasten economic recovery.

"We know that many small businesses ... still face challenges in accessing the capital they need to buy inventory, take on that next new order and hire new workers," said Mills, speaking at the headquarters of Solon, Ohio-based small business Wrap Tite. "These commitments by our lending partners ... will provide billions of capital to help small businesses all across the country grow and create jobs, and drive local economic growth."

One of the lenders, Citigroup, committed $7 billion in loans this year, with plans for $8 billion next year and $9 billion in 2013, The Wall Street Journal reports. Other lenders include some of the largest banking institutions in the country, such as Wells Fargo, JPMorgan Chase and Bank of America.

Biden noted that the American Jobs Act will also be stimulating small business growth by offering a 6.2 percent payroll tax cut for small business hires or wage increases within the sector.