Reps. Kim and Norcross Lead Call on Federal Reserve to Expand Main Street Lending Program to Additional Small Businesses
Reps. Kim and Norcross Lead Call on Federal Reserve to
Expand Main Street Lending Program to Additional Small Businesses
WASHINGTON, DC – Today, Congressman Andy Kim (NJ-03) and Congressman Donald Norcross (NJ-01) were joined by Democratic members of the New Jersey House delegation in calling on the chairman of the Federal Reserve, Jerome Powell, to expand eligibility of the Main Street Lending Program to additional businesses to help save jobs and bolster economic growth during the current crisis.
The letter was signed by Congressman Andy Kim (NJ-03), Congressman Donald Norcross (NJ-01), Congressman Josh Gottheimer (NJ-05), Congressman Frank Pallone (NJ-06), Congressman Tom Malinowski (NJ-07), Congressman Albio Sires (NJ-08), Congressman Bill Pascrell (NJ-09), Congressman Donald Payne Jr. (NJ-10), Congresswoman Mikie Sherrill (NJ-11) and Congresswoman Bonnie Watson-Coleman (NJ-12).
“It is our understanding that the MSLP was established to complement the Small Business Administration’s efforts by helping small and medium-sized businesses access emergency liquidity,” said the delegation members. “While we understand that the Federal Reserve has a responsibility to carefully evaluate risk and maximize the likelihood that loans made with taxpayer dollars are repaid, we fear that overly stringent qualifying requirements will be too exclusionary for many business and industries and could therefore have a devastating impact on thousands of working families in our districts.”
In the letter, the members asked Chairman Powell to, “clarify the eligibility for certain businesses like developers and operators of real estate assets that take a more active role in managing properties than traditionally passive businesses.” This clarity is necessary as the, “program applies blanket SBA guidance to determine eligible borrowers, which states that passive businesses that do not actively use or occupy the assets acquired are ineligible, but does not factor in instances of active management where owners are engaged in the construction, financial planning and oversight of their businesses.”
Congressmen Kim and Norcross have been leaders in helping working people recover from the economic impact of the Coronavirus crisis. As a member of the House Select Committee on the Coronavirus Crisis, Congressman Kim has been an outspoken proponent of transparency and accountability through the Paycheck Protection Program (PPP) and other federal economic assistance efforts. Congressman Norcross has advocated for inclusion of labor organizations and other non-profits in the PPP to ensure workers had the support they needed, which was granted in the second round of the CARES Act.
The full letter on this issue can be found by clicking here.