Recognizing that many small businesses are still struggling to secure credit, President Barack Obama announced a plan that would encourage community banks to issue more small business loans.

Under the plan, community banks with under $1 billion in assets would be eligible for lower-cost capital if they submit a small business lending plan and document their lending in quarterly reports, said the White House. If approved, the banks would pay the government a 3 percent dividend instead of 5 percent.

Obama also said he will seek legislation raising the limits for Small Business Administration loans from $2 million to $5 million and as much as $5.5 million for manufacturing, according to Bloomberg News.

The president said these steps will lead to “more jobs, more growth, and a stronger economic recovery.”

Some legislators and small business owners have complained that the administration’s recovery efforts have focused too narrowly on bailing out big banks.

Obama asked Treasury Secretary Timothy Geithner and SBA administrator Karen Mills, to gather a group of regulators, congressional leaders, lenders, and small business owners “to determine what additional steps we can take to get credit flowing to small businesses that want to expand,” said Bloomberg News.