Washington – Today Rep. Mike Thompson (CA-05), Rep. Adam Schiff (CA-28) and Rep. Susan Davis (CA-53) lauded the announcement by the Federal Reserve that it will temporarily lift restrictions that had previously made it difficult for Wells Fargo small business customers to access the resources provided in the CARES Act to cope with disruptions due to Coronavirus. The Members had previously written to the Chairman asking him to make this kind of change. You can read that letter here.
“The Federal government must be doing everything in its power to help small businesses who have been hit hard financially by the Coronavirus, including easing restrictions that could have locked some small businesses out of the emergency loan programs,” said Thompson. “That’s why we wrote to the Federal Reserve asking it to make this change and why we are glad to see them do so, only a day later. This is good news for small business owners and their employees, and I will continue working to bring relief to small businesses and everyone hit hard across our district.”
“I’ve heard from many small businesses and nonprofits in my community who were struggling to access Paycheck Protection Program (PPP) loans, in particular through Wells Fargo, given the restrictions placed on that bank after it failed so many consumers in its business practices. Notwithstanding the need to maintain careful oversight of Wells Fargo, their small business customers should not suffer from lack of access to PPP,” said Schiff. “That’s why I joined colleagues in writing to Federal Reserve Chairman Powell to resolve this issue, and I’m pleased that the Fed has acted quickly to provide targeted and temporary relief to Wells Fargo bank’s asset restrictions, allowing them to make loans through the Paycheck Protection Program for small businesses. I am determined to do everything in my power to support small businesses and individuals hurt by this crisis, and I will continue to monitor the execution of coronavirus financial relief programs to ensure that Americans can access this vital aid.”
“We are in an ‘all hands-on deck’ moment and banks in a position to help people should not be on the sidelines,” said Davis. “I’m pleased the Federal Reserve has relaxed these rules to ensure that small businesses that need relief get that help.”
You can click here to read the full announcement from the Federal Reserve.
Congressman Mike Thompson is proud to represent California’s 5th Congressional District, which includes all or part of Contra Costa, Lake, Napa, Solano and Sonoma Counties. He is a senior member of the House Committee on Ways and Means where he chairs the Subcommittee on Select Revenue Measures. Rep. Thompson is Chairman of the House Gun Violence Prevention Task Force. He is also Co-Chair of the bipartisan, bicameral Congressional Wine Caucus and a member of the fiscally-conservative Blue Dog Coalition.
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