U.S. Central Bank to Reduce Minimum Borrowing Amount to $100,000
Federal Reserve Chairman, Jerome Powell, is calling on Congress to return to the negotiating table to push another round of stimulus to help pull the U.S. economy out of a coronavirus-induced recession.
“All of us lived through the years after the global financial crisis, and for a number of those years fiscal policy was very tight,” Powell said in a virtual press conference on Nov. 5. “Further [economic] support is likely to be needed to avoid further spread of the virus and help individuals who, with the expiration of the CARES Act payments, are seeing their savings dwindle.”
Powell spoke about close contact industries, such as restaurants, and emphasized their need for targeted, sustained help. Rates will be kept at near zero until they believe that they are at maximum employment, a huge push to put fiscal stimulus into the economy.
Last month at the National Association for Business Economics Virtual Annual Meeting, Powell reiterated the fact that small businesses are struggling.
“Too little support would lead to a weak recovery, creating unnecessary hardship for households and businesses,” he said in his speech.
On Friday, the Federal Reserve announced its Main Street lending program will be adjusted to better support small businesses. The U.S. central bank will reduce the minimum amount that can be borrowed to $100,000 from $250,000. In addition, the fees associated with the loans have been adjusted to encourage smaller loans.
In an interview with Fox News, Frank Knapp, Jr., co-chair of Small Business for America’s Future, emphasized the need to prioritize policies that will help small businesses recover from the devastating effects of the pandemic.
“We also encourage our current Congressional lawmakers to absorb the message voters sent in electing Biden: they want leaders to take the pandemic seriously, listen to science and stop with the political theater,” he said. “Do not wait until after the inauguration to pass legislation that will help small business weather Covid-19. Get it done now. Small businesses cannot wait any longer.”
Small business owners continue to vocalize the need for stable and solutions-oriented governance. The need for legislation to pass quickly is clear.
The Alliance to Save the American Dream is a non-profit organization dedicated to three core goals.
1. Develop an Ideas Factory to give small businesses and industries a centralized place to share innovative ideas that must be considered.
2. Build a unique Resources portal for small businesses to go to for answers or resources that address a wide range of issues or challenges.
3. Offer a new networking opportunity for small business owners to connect while also giving them a platform to share their own personal stories.
For more information, visit savetheamericandream.com.