The Obama administration officials are working on a plan to assist small businesses by diverting some of the $700 billion in bank bailout money to these struggling firms.

White House along with U. S. Treasury is considering such a move under pressure for not doing sufficient to fix the economy.

Moreover, Republicans are criticizing the Obama administration that a $787 billion economic stimulus is not working.

Small businesses are one of the largest sources of job creation in the U. S. economy.

The plan would expand a Small Business Administration lending program, under which small companies would be able to borrow money from banks at low rates to keep their businesses running.

However, the talks about the plan, which is aimed at reviving the economy by saving jobs, are in the preliminary stages and a final plan is not expected before autumn.

Resources informed that Timothy Geithner, treasury secretary has already expressed his support for the plan.

It should be noted that the US Treasury possesses about $127 billion in uncommitted TARP funds at its disposal.

In case a company defaults, the government would come forward and repay about 90 percent of the loan.