The head of the country’s largest union federation is calling on lawmakers to redirect bailout funds meant for Wall Street to small businesses.

In prepared remarks before a conference hosted by the Economic Policy Institute Tuesday, Richard Trumka, president of the AFL-CIO, said money from the Troubled Asset Relief Program (TARP) needs to be plugged into economic programs that will help America’s Main Street.

“Banks aren’t lending to small business. We should establish a fund to lend TARP money directly to small- and medium-sized businesses at commercial rates, managed by the community banks left out of the Wall Street bailout, with the banks taking first dollar risk,” Trumka said. “If small businesses can get credit, they will create jobs.  And we need jobs now.”

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