Toomey Statement on Announced Changes to the Main Street Lending Program
Allentown, Pa. - U.S. Senator Pat Toomey (R-Pa.), a member of the Congressional Oversight Commission, issued the following statement regarding the announced changes to the Main Street Lending Program:
"These changes to the Main Street facility will expand credit to otherwise viable businesses - many of which were forced to close and send their workers home by the government in response to the COVID-19 crisis.
"The Fed sensibly eliminated barriers that could have blocked loans to family-owned pass-through businesses and eased administrative burdens on lenders and borrowers by using LIBOR. Finally, for the newly-eligible distressed firms now able to access the Main Street lending facility, the Fed thoughtfully protected the taxpayer by having banks retain a larger portion of the loan on their books.
"I appreciate the work of the Fed and Treasury on this program and look forward to continuing our work to ensure Fed resources established in the CARES Act are used in an appropriate, equitable, and pro-growth manner while also protecting taxpayers."