Winning the Cuyahoga

POTUS visits Cleveland Tuesday to promote innovation agenda, small businesses.

And: Obama appoints Steve Case Tues. to Presidential Council on Jobs and Competitiveness.

THE PRESIDENT: Well, I’m not going to make any long remarks in the opening; just to say that since Tim and I moved to Washington, I think our biggest priorities have always been to make sure that we stabilized the capital markets and made sure that they’re working for businesses large and small.

I think Tim did extraordinary work in our first two years to make sure that the capital markets sort of regained some sense of normalcy. But what we’re well aware of is that if you’re a big company, it’s very easy to borrow right now, and you can borrow very cheaply. If you’re a medium-sized company, you may be doing okay. If you’re a small business, capital is still tough -- partly, as I understand it, because one of the key ways that small businesses were able to get loans was because it had some sort of assets that they could offer up as collateral. And if those asset values have declined, that makes it that much more difficult. And small community banks that were the source of a lot of lending for small businesses are still working their way through some problems. Many of them were involved in the real estate market one way or another, and that creates difficulties, as well.

So we know we still have some challenges. I assume that Tim has already described to you what we’re doing both on the SBA side and at Treasury to try to loosen up capital for entrepreneurs and business people like yourselves. But with that, we’re interested in finding out in more detail where you think we can be most helpful.

Obama stopped in while Austan Goolsbee was fielding online questions as part of the Advise the Adviser program.

He sat with Goolsbee at a wooden table in a small meeting room at Cleveland State University while a Goolsbee read one question and a moderator read a second from a laptop. Aides said 1500 questions had been submitted by the time the program started.

"Cleveland is a great example of...cities that are starting to reinvent themselves," Obama said.

As those cities lose jobs from heavy manufacturing, Obama said, they're turning to small business to fill the void.

The first question was about access to capital; the second about workforce development.

He said many parts of the country are focusing on an industry, setting up partnerships between businesses and colleges to provide training and skilled workers and the jobs for them to fill.

The session was streamed live as advertised.

Pool Report #4

Feb, 22

Cleveland, Ohio,

The pool was taken into a forum entitled “Access to Capital and Tax Breaks for Small Businesses” that was taking place in a conference room and being chaired by Treasury Secretary Timothy Geithner.

There were about 40 participants, mostly males in business suits seated around a squared table set up.

Obama strode in as the conversation was turned to the difficulty small businesses find in securing capital for growth, with the words “Has Tim solved everything for you already?”

He said he was not going to make long remarks, but told the meeting that since he and Geithner had come to Washington, their biggest priority had been to stabilize capital markets and make sure the markets are working for businesses large and small.

He then went on to speak about how it was more difficult for small enterprises to get financing than larger ones because in many cases they used assets as collateral and the crisis had seen the value of assets decline. As he spoke, several of the businessmen in the room nodded in agreement at his remarks.

Travel Pool Report 3a

On the ride from airport to Cleveland site, Carney also was asked more about Libya and Sen. John Kerry's proposal.

"We're looking at his proposals but are focused today on need to end the bloodshed and for the government to respect the universal rights of the Libyan people," Carney said.

Obama met with a breakout session on small business, with 25 people seated at a u-shaped conference table.
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“What we want to figure out is how can we help you to succeed,” he said at the outset.

.Phillip Davis, the first of 4 people to speak while pool was present, told Obama that he had a fast growing business selling microwaves. He said his biggest problem is “access to capital” to help him meet demand for sales in Europe.

He urged Obama to change tax policy to allow people to invest in small business without having to pay capital gains.

“That is such a good idea,” a smiling Obama responded, “that we implemented it last year.”

He noted with pride that the government last year had cut the capital gains tax to zero for profits made on investments in small business. It was, added SBA Administrator Karen Mills one of 17 tax cuts highlighted in materials distributed by the White House.

“This was not a setup,” said Obama.

When another business owner, Ariana Kirkpatrick, started to tell Obama about the need for capital, he said he expected the subject to come up frequently.

Travel Pool Report 5

Clarification: Jay Carney rode in Wire 1 van from airport to event. He advises that he told those aboard that van that POTUS would announce that Steve Case would join the Jobs and Competitiveness Council.

Obama opening remarks are open press. One note: the audience of about 140 business, seated in a gymnasium, was absolutely silent while waiting for the president. Polite applause, then quiet again as he walked out to join breakout sessions.

Travel pool report 4

Obama was met on the icy tarmac by Gov. John Kasich and US Rep. Marcia Fudge.

Motorcade uneventful - but for one noteworthy addition.

Mr. Carney rode in the press van. With the press. In the same van.

A man of the people.

Gaggle add: Carney said he does not anticipate POTUS speaking about Libya.

-Steve Thomma
McClatchy

Travel pool report 2

Air Force One landed in Cleveland at 10:52 am.

Carney gaggled en route. On Libya, he referred to earlier statements opposing violence and
said Secretary of State Clinton would make a statement at 230 pm.
On pirates, he said Obama over the weekend authorized use of force if threat to hostages was imminent. He said Obama was notified of the hostages' deaths at 442 am by John Brennan.
On budget, he said OMB has had contingency plans since 1980 for government shutdowns and that they've been updated periodically. He said White House is optimistic that a deal can be worked out to finance the government.
Transcript to follow.

Travel note: two stars for new leather seats on AF1

Pool report 1

President Obama arrived at Andrews via Marine One at 9:44 am.
Accompanying Obama on Marine One: Jay Carney, Valerie Jarrett, Gene Sperling.
Already on board: Cabinet members Steven Chu, Tim Geithner, Gary Locke, and Hilda Solis.
Also on board: Austan Goolsbee.
AF1 rolling at 9:54 am.