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President Barack Obama launches small business initiatives

US President Barack Obama has ordered a series of modest steps aimed at helping small businesses.

This is his latest election-year effort to counter Republican attacks on his economic record and show voters he is trying to tackle high unemployment.

The initiatives call for accelerating federal payments to government contractors.

The move is also for streamlining paperwork, and making it easier for small firms to get access to loans and tax credits.

This follows Obama's call for a one-year extension of Bush-era tax cuts for families earning less than $250,000 (€204,000).

It is thought that part of a re-election strategy is to cast himself as a champion of the middle class and the Republicans as the party that favours the rich.

Obama is directing government agencies to pay their bills on an accelerated timeline to all prime contractors for the next year within 15 days as opposed to 30 days.

He is calling on Congress to let small businesses write off up to $250,000 in capital investments in 2013.

He is encouraging the Small Business Administration is revamping its Small Loan Advantage programme to raise the maximum loan amount from $250,000 to $350,000 and streamline the loan process.

But Republicans argue that tax cuts should be maintained for everyone, including high earners.

They say letting taxes rise for wealthier Americans will punish many small businesses and discourage them from creating jobs.

Obama was due to discuss his proposed incentives for small business growth and hiring as part of a broader meeting with Democratic congressional leaders at the White House today.

Republicans have accused Obama of trying to divert attention from his economic stewardship.

This is considered the top issue on which his re-election hinges - after government data last week showed another month of weak job growth.

Other initiatives, the US Small Business Association is launching "QuickApp," a streamlined application process for surety bonds.

The SBA's Disaster Loan Program is streamlining its online application process to give families and businesses easier access to rebuilding funds.

The administration is working on regulatory reforms to the New Markets Tax Credit to make it easier to attract private sector funds for startups and small businesses in lowerincome communities.