Making use of the $730 million in stimulus funds for slashing lending fees, raising loan guarantees and expanding other programs, President Obama will announce the provision of federal lending aid for the stressed small-business owners, on Monday.

The most fundamental aspects of the proposed measure would consist of an immediate reduction of lending fees for small-business, as well as a raise in the government guarantee on a few Small Business Administration (SBA) loans to 90 percent.

In addition, as per the officials familiar with the proposals, the government also intends taking aggressive steps in the direction of improving bank liquidity, with the over $10 billion set aside for unfreezing the secondary credit market.

Talking about the measures NBC's "Meet the Press" Christina Romer, chair of the White House Council of Economic Advisers, said that the government intends thrusting "a significant amount" of finances for encouraging small business lending.

Refraining from divulging the exact figures, Romer said: "We know that small businesses are the engine of growth in the economy. We absolutely want to do things to help them."

It can be expected that within the next few weeks, the SBA will reveal some more initiatives as part of the stimulus plan, so as to assist the small-businesses, which are being considered vital for holding back job losses and propping up economic growth!