WASHINGTON -- Small businesses would receive $880 million from an $850 billion stimulus package proposed by Democrats in the House of Representatives.

The federal funds would extend over a two-year period. Businesses in rural areas would receive $100 million in both grants and loans while $250 million would be earmarked for urban areas. Another $100 million would help boost industrial technology services with $430 million towards new direct lending and loan guarantees for small businesses.

Meanwhile, the National Federation of Independent Business recently reported that its small business optimism index dropped from 87.2 in November to 85.2 for December. The decline is second to a record low of 80.1 in February 1980. The NFIB has pushed for suspending payroll taxes for U.S. employers and employees for six months to tide small businesses over.