WASHINGTON, D.C. – U.S. Senators Shelley Moore Capito (R-W.Va.) and Ben Cardin (D-Md.), members of the Senate Committee on Environment and Public Works (EPW), along with Representatives Collin Peterson (D-Minn.) and John Katko (R-N.Y.), today applauded the House of Representatives’ passage of their bill, the Reinvigorating Lending for the Future (RLF) Act of 2020, legislation to reduce barriers to lending for recipients of capitalization grants through the U.S. Economic Development Administration’s (EDA) Revolving Loan Fund Program. The bill now heads to President Donald J. Trump’s desk for his signature.
“Access to working capital is critical for small businesses right now, particularly those in rural areas and those recovering from coronavirus. This bipartisan bill works to address that issue and the red tape surrounding dispersing aid,” Senator Capito said. “I’m proud to have joined with Senator Cardin on this legislation, and I appreciate Representatives Peterson and Katko sponsoring it in the House. I look forward to President Trump signing it into law soon.”
“EDA’s revolving loan fund program has been an important resource for supporting business development in communities grappling with economic hardship. I have been pleased to see such bipartisan support for the program,” said Senator Cardin. “Our bill will enhance the revolving loan fund program’s effectiveness by empowering the economic development professionals who manage these RLFs to devote more of their time and expertise assisting the businesses and communities they serve."
“The Reinvigorating Lending for the Future Act is needed now more than ever as communities work to rebuild our rural economies as a result of the COVID-19 pandemic. This bipartisan legislation requires no additional funding, it just creates more flexibility for regional economic development. Ultimately this legislation returns decision making to the local units of government, eliminates unnecessary reporting and is just good common sense,” said Representative Peterson.
“I’m proud to announce the passage of the Reinvigorating Lending for the Future (RLF) Act of 2020, bipartisan, bicameral legislation that will allow more Central New York businesses to access funding through the EDA’s Revolving Loan Fund Program. At a time when our community continues to face significant financial uncertainty due to the COVID-19 pandemic, this legislation takes important steps to remove red tape that can often hinder accessibility of loans through this program. Working with both Republicans and Democrats in Congress, I will continue to promote economic development in underserved areas and ensure programs like the Revolving Loan Fund Program are responsive to our community’s evolving needs,” said Representative Katko.
BACKGROUND:
Under current policy, fund recipients must keep up with burdensome reporting requirements that discourage operators from utilizing the Revolving Loan Fund Program to its maximum potential while straining EDA resources. By responsibly vacating the federal interest for those funds made to revolving loan fund operators with a demonstrated track record of success, the RLF Act will promote lending to businesses and create jobs.
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