Though small business owners and advocates welcomed the effort, some of the latter worried that the money might not immediately get to those who need it most.

The measures include boosting bank liquidity with up to $15 billion aimed at unfreezing secondary credit markets for Small Business Administration loans, reducing small business lending fees and increasing the government guarantee on some SBA loans to 90 percent.

"This could have a real impact, if it would allow us to get financing where we could resume growing," said Jack Magdiel, CEO of Right Way Trucking in Bountiful. "I think we would be very good candidates for some kind of stimulus like this."

Bankers and small business advocates, though, were uncertain how helpful the measures will be to Utah small businesses, because the provisions announced by Obama and Treasury Secretary Timothy Geithner appeared to address only SBA loans and borrowers.

"There is still a huge segment of the entrepreneur population out there that needs to be served and is not, as it would seem, through the ... package," said Kathy Ricci, executive director of the Utah Microenterprise Loan Fund, referring to loans that are not backed by the SBA.

Candace Daly, Utah state director of the National Federation of Independent Business, said her 4,000 members "definitely need that type of help." But she is concerned that the funds won't get to businesses that need credit.

"We all saw that the money that the Bush administration sent out to the banks last year did not get anywhere. It just stayed in the banks," Daly said. "I just hope there is sufficient accountability to make sure it gets to small business. And I hope it spurs the economy."

Under the administration's initiative, the government will step in to buy SBA loans that investors have been reluctant to purchase on the secondary market, which has gummed up the flow of credit. The $15 billion will come from the remaining $350 billion in the recently passed bank bailout package.

The government will also use money from the $787 economic stimulus package signed into law last month to immediately reduce small-business lending fees that can be as much as $75,000 per loan.

And the administration will raise the guarantee on government-backed SBA loans to 90 percent, from 85 percent on loans up to $150,000 and 75 percent on loans of more than $150,000. That means banks will recoup more money if a borrower defaults.

A provision of the small business package requires the 21 largest banks receiving taxpayer help to report monthly on how much lending they do to small businesses. Smaller lenders getting government help, such as Zions Bank, are being asked to report quarterly on small business loans.

Kelly Matthews, chief economist for Wells Fargo Bank's Utah operations, said he had hoped the government wouldn't focus the package only on SBA lending. But he was heartened that the secondary SBA loan market might be unlocked.

"I think that all the banks that I'm aware of are very anxious to make loans to small business," Matthews said. "Part of the problem is that the securitization part of business lending has screeched to a halt. Maybe this program will be sort of like a secondary market for banks to sell loans."

Obama detailed the package of aid at a meeting of small business owners gathered at the White House East Room.

"You deserve a chance. America needs you to have that chance," Obama said.

With Geithner at his side, Obama said the nation has small businesses to thank for many of the new jobs, roughly 70 percent in the past decade.

Peter Morgan, executive vice president of Zions national real estate department, said the package will help small business borrowers secure loans. But Morgan isn't sure the 90 percent loan guarantee will unfreeze the secondary market for SBA loans.

"They have said they have earmarked $15 billion to help buy these loans from banks, but what they have not said is at what price," Morgan said, worrying that banks might not have enough incentive to sell.

Key points of SBA initiatives
The Small Business Administration will purchase up to $15 billion in small business loans made by community banks, using bank bailout money from Congress. The purchases enable banks to provide new credit to small businesses, which are responsible for 70 percent of job creation.

The nation's 21 largest banks receiving government bailout money will be required to provide monthly reports on how much lending they do to small businesses.

The government guarantee of Small Business Administration loans will be increased to 90 percent, on a temporary basis. Currently the government insures SBA loans for 75 percent or 85 percent of their total value, depending on the size of the loan.

Fees on SBA loans will be eliminated temporarily.