Obama offers plan to offer credit to small firms

CHILLICOTHE, Ohio (Reuters) - Democratic presidential candidate Barack Obama on Friday proposed a new loan program for small businesses, saying it would help stem job losses amid the deepening financial crisis.

Obama told a campaign rally in Chillicothe, Ohio that he would put in place a credit facility for small businesses similar to one set up after the September 11 attacks. The program would be offered through the Small Business Administration.

"That's one of the many steps we can and should take to help stop job losses and turn this economy around," Obama said.

The Democratic candidate's campaign said the small-business proposal was not a reaction to the huge plunges in financial markets in recent days but was a short-term proposal aimed at easing the impact of the credit crisis on small firms.

(Reporting by Caren Bohan)