Bailing Out Small Business

President Obama urged Republicans to stop blocking a $30 billion spending package designed to help small businesses obtain loans through community banks. Republicans argue that the money doesn't exist to pay for the measure and that Democrats have been spending recklessly without regard.

Executive Online Editor at the Wall Street Journal joined Varney and Company to discuss what the possible bailout means for small businesses.

"You need strong banks in order to have strong businesses," said Murray. "Small businesses do have a legitimate problem here. Big businesses are sitting on big piles of cash [and] have plenty of access to the credit markets - small businesses don't have the same luxury."

The administration's plan would take $30 billion in taxpayer money to give to community banks across the country. In turn, the banks would then give out loans to local businesses looking to expand or hire additional workers.

The loans could also be used to buy necessary goods or services the business needs to generate a healthy profit.

Murray added that the legislation includes targeted tax breaks for small businesses and programs that expand small-business loans guaranteed through the government.

"Access to capital for small business is a serious problem issue and it's one of the things holding back the economy, but it's not the biggest, it's probably not even in the top two," explained Murray. "Number one is uncertainty about the economy. Where are we going? Number two is uncertainty about the tax and regulatory environment they [businesses] are going to be operating in."