Federal Reserve Chair Jerome Powell and Treasury Secretary Steve Mnuchin testify before a Senate panel. Powell said new lending programs will launch by June 1. Mnuchin defended the administration's support for reopening the economy.
Treasury Secretary Steven Mnuchin speaks during a meeting with restaurant industry executives about the coronavirus response, in the State Dining Room of the White House, Monday, May 18, 2020, in Washington.
The Fed’s Main Street Lending program, announced in March, will extend up to $600 billion in loans to companies with up to 15,000 employees. The Treasury has provided $75 billion to offset any losses from the loans, drawn from $454 billion that Congress provided Treasury to support Fed loans in the relief package.
Lawmakers from both parties have criticized the Payroll Protection Program, which initially provided $349 billion in forgivable loans to small companies but has been plagued by a host of problems. Many businesses were unable to get loans before the initial funding was exhausted. A second round of loans faced computer processing delays and a number of publicly traded companies ended up receiving money that Mnuchin demanded be paid back to the government.
Mnuchin also said that the $1,200 stimulus checks from the relief package have added up to $240 billion in direct payments for millions of Americans, with a typical family of four receiving $3,400. Late Monday, Treasury said that this week it is sending out nearly four million payments on prepaid debit cards. The payments were approved in late March, though Treasury warned that it would take time to issue the funds to those without bank accounts.
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