WASHINGTON, D.C. – Today, the Congressional Oversight Commission (COC) released its monthly report on the CARES Act. The report reflected that the CARES Act is helping some large corporations while small and mid-sized businesses continue to struggle. Some of the aid is not necessarily helping keep workers employed, all at a time when workers are facing their federal unemployment payments from being cut off. From the report:
- “The evidence available to the Commission suggests that while some companies that have been able to borrow through the capital markets are using the funds to maintain or even expand payroll, other companies have cut payroll while continuing to issue dividends to shareholders. It is also clear that some of the companies that have been able to borrow since the announcement of these facilities were in strong financial condition.”
- The Main Street Lending Program (MSLP) cannot by design “help businesses facing serious declines in revenue that cannot take on additional debt to address that problem.”
- “[I]t’s clear to the Commission that [Treasury Department and Federal Reserve] are not going to impose mandatory payroll requirements on businesses that borrow through the MSLP unless Congress mandates it in new legislation.”
The COC’s findings once again emphasize the need for greater transparency and oversight in the next relief package in order to ensure the businesses that need assistance most. Accountable.US has outlined the priorities for new small business relief HERE.
Accountable.US released the following statement on behalf of its president, Kyle Herrig:
“The Oversight Commission’s report highlights the need to protect workers and small businesses. As with the Paycheck Protection Program, federal aid during this crisis has been available to large corporations and the well-connected but has left behind those who need it most. As workers face their federal unemployment benefits being cut off, Congress needs to ensure that the next relief bill includes measures to guarantee transparency and oversight as well as mechanisms to get federal aid to those most in need — anything less will only lead to more of the same.”