U.S. Sen. Shelley Moore Capito (R-WV) and U.S. Rep. John Katko (R-NY) unveiled bipartisan, bicameral legislation that aims to promote lending to businesses and create jobs by improving access to revolving federal loan funds.
Specifically, the Reinvigorating Lending for the Future (RLF) Act of 2020 would reduce barriers to lending for recipients of capitalization grants through the U.S. Economic Development Administration’s (EDA) Revolving Loan Fund Program, according to a bill summary provided by the senator’s office.
“Revolving loan funds are a valuable tool to provide working capital and other assistance to businesses in underserved areas, particularly as they recover from the COVID-19 pandemic,” Sen. Capito said. “Unfortunately, administrative red tape sometimes discourages these critical resources from being deployed.”
The bill, she added, “will ensure that those revolving loan fund operators with a track record of success are more easily able to lend to West Virginia businesses at this important time for our economy.”
Sen. Capito on June 25 sponsored S. 4075 with lead original cosponsor U.S. Sen. Ben Cardin (D-MD). Rep. Katko and U.S. Rep. Collin Peterson (D-MN) in their chamber introduced the same-named companion bill, which doesn’t yet have a number in the congressional record.
“At a time when our communities are facing significant financial uncertainty due to the COVID-19 pandemic, our legislation takes an important step to remove red tape that can often hinder a business’s ability to receive through the EDA’s Revolving Loan Fund Program,” Rep. Katko said. “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.”