Congressional Oversight Commission Confirms CARES Act Mainly Helping Big Biz
Report Says Small Businesses and Ordinary Americans Not Seeing Enough Impact From Federal Stimulus
WASHINGTON, D.C. – Today, the Congressional Oversight Commission released their second report on the implementation of the CARES Act, and the federal response to the economic effects of the COVID-19 crisis. The report lays out in stark terms how the federal response has helped big businesses stay afloat while “there is less evidence that the actions of the Treasury and the Federal Reserve have been as beneficial for small and mid-sized businesses and state and local governments.”
Accountable.US issued the following statement in response to these reports:
“The bipartisan Congressional Oversight Commission laid barewhat the rest of the country has known for weeks – the Trump administration’s bailout has helped big businesses, while small businesses and hard working Americans fall further behind,” said Kyle Herrig, President of government watchdog Accountable.US. “Congress must take action to ensure that every sector of the American economy gets help during this pandemic, not just the wealthy and well-connected.”
KEY POINTS FROM THE OVERSIGHT COMMISSION REPORT:
- “In some areas of the economy, such as the ability of larger companies to issue debt to continue operations, the agencies’ actions have had a clear and powerful impact. But there is less evidence that the actions of the Treasury and the Federal Reserve have been as beneficial for small and mid-sized businesses and state and local governments.”
- Over 11 Weeks After The CARES Act, “The Majority” Of The Fed’s $2 Trillion In Emergency Lending Facilities Were “Not Operational”—The Fed Had Only Made $6.7 Billion In Purchases By June 18, 2020.
- The Lending Facility For State And Local Governments Has “Extended Assistance To Only One State” And The Congressional Oversight Commission Said “It Is Unclear” If The Facility Has Helped To Lower The Cost Of Borrowing For Governments.