Rep. Schiff Urges Federal Reserve to Include Nonprofits in Main Street Lending Program
Changes Must be Made for Larger Nonprofits to Access Payroll Protection Program
Washington, DC – Today, Rep. Adam Schiff (D-CA) sent a letter to Federal Reserve Chairman urging the Fed to include nonprofits as eligible to receive loans from the Main Street Lending Program.
“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,” Schiff wrote in the letter.
Nonprofits with fewer than 500 employees may be eligible for assistance under Small Business Administration administered programs, but larger entities 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,” his letter continued. “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.”
Read the full letter below:
The Honorable Jerome H. Powell
Chair
Board of Governors
Federal Reserve
2001 Constitution Ave NW
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