Congressional Oversight Commission on Lending During COVID-19 Pandemic

The Congressional Oversight Commission, created by the CARES Act to oversee economic stabilization efforts due to the coronavirus pandemic, held its first hearing on the efficacy of the Main Street Lending Program. Federal Reserve Bank of Boston President and CEO Eric Rosengren testified that although only 54 requests had been submitted and eight loans given from when the program began in June 2020 to the end of July, he expected increased interest if the economy did not improve. Commissioners expressed concerns about the length of time it took to begin the lending program, a lack of interest from borrowers and lenders, and questions about how much it had helped small and medium sized businesses. In the second panel, advocates for the banking industry and business industry testified about the challenges facing the program and offered recommendations for changes, such as lowering the minimum loan amount, adjusting the affiliation rule, and requirements for who benefits from the loans. close