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Engel Submits Written Testimony Urging Federal Help for Non-Profits

Engel Submits Written Testimony Urging Federal Help for Non-Profits

Congressman Eliot L. Engel today submitted written testimony to the Board of Governors of the Federal Reserve System urging the Fed to include substantial financial support for American non-profits as part of their new “Main Street Lending Program.”

The program is currently set to provide $600 billion in bank lending to small and mid-sized businesses for coronavirus relief, but does not include lending provisions for non-profits, which stand on the frontlines of the fight against COVID-19.

“The non-profit community, and higher education institutions in my district and across the country, are doing everything they can to both help people in their urgent time of need and survive the economic fallout of this global pandemic,” Engel wrote. “These institutions, which are often educationally based and serve minority communities, employ millions of Americans and are in desperate need of the type of federal support the business community is currently receiving. We cannot turn our backs on them, especially at this critical moment in our history.”

 

Full text of the Congressman Engel’s testimony can be found below:

 

The Honorable Jerome Powell

Chairman

Board of Governors of the Federal Reserve System

20th Street and Constitution Avenue NW

Washington, D.C. 20551

 

Dear Chairman Powell,

 

The unprecedented COVID-19 pandemic has thrown our economy into dangerous, uncharted waters. As such, it is incumbent upon the federal government to take drastic action to help American workers, businesses, and organizations through this difficult time. That must include non-profit organizations.

The Federal Reserve’s recently announced Main Street Lending Program will support up to $600 billion in bank lending to small and mid-sized businesses. This is a helpful move by the Federal Reserve, but it does not include lending options for the non-profits. The non-profit community, and higher education institutions in my district and across the country, are doing everything they can to both help people in their urgent time of need, and survive the economic fallout of this global pandemic. These institutions, which are often educationally based and serve minority communities, employ millions of Americans and are in desperate need of the type of federal support the business community is currently receiving. We cannot turn our backs on them, especially at this critical moment in our history.

The non-profits in my district have been hit particularly hard as we have been the epicenter of the COVID-19 outbreak in the country. The non-profit community has been reeling as early as March 9th and they need additional federal assistance. It is unacceptable that these groups are left out of this relief effort by the Federal Reserve. The work these groups do not only generates economic opportunities, but also provides important assistance to the community and strengthens community engagement. Supporting our non-profits is critical and essential work.

I urge the Federal Reserve to provide substantial lending options to non-profit institutions as part of the Main Street Lending Program.

 

Sincerely,
 

Eliot L. Engel

Member of Congress