Letter to Jerome H. Powell, Chair for Board of Governors - Rep. Schiff Urges Federal Reserve to Include Nonprofits in Main Street Lending Program

Letter

Dear Chair Powell:

As you work to finalize and implement the Main Street Lending Program, I write to request that you include nonprofits as eligible to receive loans under this lending facility. Like businesses, many larger nonprofits have seen existing revenue streams severely cut at a time when the need for charitable services is growing, and are faced with difficult choices about cutting services or laying off employees. The Coronavirus Aid, Relief, and Economic Security Act was passed to provide relief to entities impacted by the pandemic, and assisting large nonprofits is well within Congress's intent.

Nonprofits with fewer than 500 employees may be eligible for assistance under Small Business Administration administered programs, but larger entities likely cannot access programs like the Payroll Protection Program. I am concerned that nonprofit entities, that millions of Americans rely on, will therefore be left out of the relief Congress intended in the CARES Act.

Therefore, I strongly urge the Federal Reserve to include nonprofits institutions as eligible for the Main Street Lending Program, and to ensure that they can fully access the assistance it provides.

Thank you in advance for your consideration of this urgent matter.

Adam B. Schiff

Member of Congress

Source