In Southern California, where a once-thriving small-business economy has been hard-hit by the economic meltdown, hope and skepticism greeted President Obama’s proposals last week to help small firms by jump-starting lending and rewarding firms that add jobs.

“They realize small-business growth is the only way we are going to survive this,” said Ruben Guerra, head of the Latin Business Assn. in Los Angeles. But so far, he says, “small business is not getting part of the action; big business is getting all the dollars.”

Obama’s plan to reverse the alarming loss of small-business jobs nationwide includes $30 billion for community banks that promise to make more small-business loans. He also wants to give businesses a $5,000 tax credit for each new worker and another credit for giving raises. And he has asked Congress to extend a tax credit that lets a small firm immediately write off 50% of the cost of new equipment against their tax bills. The goal is to give cautious small-business owners an incentive and the resources to expand, while helping get the economic recovery moving.

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