Though President Barack Obama's plan to devote $30 billion of the federal bailout funds to small business loans may help entrepreneurs, the Wall Street Journal says it is unlikely to break the "lending logjam" facing the country.

Gene Sperling, a counselor to Treasury Secretary Timothy Geithner, says that "the president's plan will mean $30 billion in capital for smaller banks, which has the potential to leverage a far higher amount of actual new small-business lending."

However, some analysts believe that with demand and credit remaining low, the effect will be minimal. The Wall Street Journal reports that some bankers claim that with business being "consumer-driven," loan volume will only increase along with jobs and consequent spending.

Representative Nydia Velazquez, Chair of the House Committee on Small Business, called for legislators to be "open to new approaches," to help businesses that "still can't find affordable loans." She suggested that pending legislation allowing the Small Business Administration to make direct loans would be more effective.

According to E-Credit Daily, the National Federation of Independent Business has said it does not want to accept Trouble Asset Relief Program funds.