NEWS FROM THE U.S. SENATE
FOR IMMEDIATE RELEASE: September 16, 2020
Bipartisan Management of Senate Committees on Indian Affairs and Banking, Housing, and City Affairs Name on the Treasury Division and Federal Reserve Board to Higher Have interaction Tribes on Entry to CARES Act Funding
WASHINGTON – U.S. Senators Tom Udall (D-N.M.), vice chairman of the Senate Committee on Indian Affairs, John Hoeven (R-N.D.), chairman of the Senate Committee on Indian Affairs, Sherrod Brown (D-Ohio), rating member of the U.S. Senate Committee on Banking, Housing, and City Affairs, and Mike Crapo (R-Idaho), Chairman of the U.S. Senate Committee on Banking, Housing and City Affairs are encouraging Treasury Secretary Steven Mnuchin and Chairman of the Federal Reserve Board Jerome Powell to extend entry to lending packages created underneath the CARES Act for Tribal governments as they face rising financial pressure from the COVID-19 pandemic.
“Tribes and Tribally-owned companies from throughout Indian Nation have been severely impacted by the financial strains introduced on by the COVID-19 pandemic. These companies, from motels, convention facilities, eating places, and leisure venues to gasoline stations and purchasing malls, are a few of the greatest employers and earnings mills for Tribal and close by non-Tribal communities. Not like different governments, Tribes shouldn’t have a standard tax base to generate authorities income; as a substitute, Tribes depend on their companies to generate income for presidency operations and important providers, resembling well being care, public security, and social providers, for his or her communities,” the senators wrote in a letter to Secretary Mnuchin and Chairman Powell.
“Title IV of CARES Act and Part 13(3) of the Federal Reserve Act present authority for the Division of the Treasury and the Federal Reserve Board to deal with the numerous financial points confronted by Tribes and their enterprises throughout these difficult instances. Two packages created underneath that authority, the Foremost Avenue Lending Program (MSLP) for firms and the Municipal Liquidity Facility (MLF) for governments, present aid for these entities by offering or facilitating loans,” continued the senators. “Additional, by expressly together with Indian Tribes within the definition of ‘States,’ Congress gave Treasury broad authority to account for the distinctive financing wants of Tribal governments and their enterprises.”
Within the letter, the bipartisan group of lawmakers expressed appreciation for the Division of Treasury contemplating the distinctive lending challenges Tribes face when growing these packages. Shifting ahead, the senators urged the Treasury and the Federal Reserve Board to extend Tribal entry to each the MSLP and the MLF as Congress meant.
“Because of the distinctive nature of Tribal governments and Tribal enterprise money owed, Tribes and their companies are unable to totally make the most of the MSLP and the MLF. Accordingly, we encourage you to supply Tribes and Tribally-owned companies better entry to the MSLP and MLF,” the senators concluded.
The total letter may be discovered beneath and HERE.
The Honorable Steven Mnuchin
Secretary
U.S. Division of the Treasury
1500 Pennsylvania Avenue NW
Washington, D.C. 20220
The Honorable Jerome Powell
Chairman
Federal Reserve Board
20th Avenue and Structure Avenue NW
Washington, D.C. 20551
Expensive Secretary Mnuchin and Chair Powell:
We write to convey your consideration to the financial influence confronted by Tribes and Tribally-owned enterprises from the COVID-19 pandemic, and to advocate that the Division of Treasury and the Federal Reserve Board proceed to have interaction Tribes find methods to maximise their aid underneath the Coronavirus Assist, Reduction, and Financial Safety (CARES) Act (Public Legislation 116-136).
Tribes and Tribally-owned companies from throughout Indian Nation have been severely impacted by the financial strains introduced on by the COVID-19 pandemic. These companies, from motels, convention facilities, eating places, and leisure venues to gasoline stations and purchasing malls, are a few of the greatest employers and earnings mills for Tribal and close by non-Tribal communities. Not like different governments, Tribes shouldn’t have a standard tax base to generate authorities income; as a substitute, Tribes depend on their companies to generate income for presidency operations and important providers, resembling well being care, public security, and social providers, for his or her communities.
Almost 500 Tribally-owned companies have quickly closed because of the outbreak of COVID-19, which has left greater than 700,000 individuals out of labor. Regardless of these closures, many Tribal enterprises should proceed to satisfy their monetary obligations to their associate banks whereas on the identical time combating the virus of their group.
Title IV of CARES Act and Part 13(3) of the Federal Reserve Act present authority for the Division of the Treasury and the Federal Reserve Board to deal with the numerous financial points confronted by Tribes and their enterprises throughout these difficult instances. Two packages created underneath that authority, the Foremost Avenue Lending Program (MSLP) for firms and the Municipal Liquidity Facility (MLF) for governments, present aid for these entities by offering or facilitating loans. Additional, by expressly together with Indian Tribes within the definition of “States,” Congress gave Treasury broad authority to account for the distinctive financing wants of Tribal governments and their enterprises.
We admire that the Division of Treasury thought of the distinctive lending challenges Tribes face because it developed these packages. For instance, the Division included Tribes and their companies within the MSLP in order that they’ve the choice of searching for long run monetary aid to deal with the financial impacts of COVID-19. Nevertheless, as a result of MSLP debtors are prohibited from making distributions (dividends) to shareholders, Tribes have been unable to take part, as revenues generated by Tribally-owned companies should be distributed to Tribal governments for important authorities providers pursuant to Tribal and federal regulation. The Federal Reserve Board reviewed this prohibition and subsequently up to date its steering to exempt Tribes, allowing income from Tribally-owned companies to be distributed to help important authorities and group providers. As with the distribution prohibition, we encourage you to proceed to seek out methods to fulfill the route of Congress and supply better Tribal entry to each the MSLP and the MLF.
As well as, Tribal governments and Tribally-owned companies should typically search loans from personal banks, and that debt is just not handled in the identical method as State and Municipal authorities debt. Tribes are additionally unable to entry tax-exempt debt because of varied statutory restrictions and ambiguities. And since Tribal lands are held in belief by the federal authorities, they can’t be used for collateral or lending functions. In brief, because of the distinctive nature of Tribal governments and Tribal enterprise money owed, Tribes and their companies are unable to totally make the most of the MSLP and the MLF. Accordingly, we encourage you to supply Tribes and Tribally-owned companies better entry to the MSLP and MLF.
Thanks to your consideration to this vital matter. We look ahead to persevering with to work with you on the financial response to the COVID-19 pandemic’s impacts on Indian Nation.
Sincerely,
###
Contact: Ned Adriance (Udall) 202.228.6870
Source link
