Suozzi, King, Meeks, Zeldin, Rice (Entire Long Island Delegation) Join Together to Hold Banks, Small Business Administration, and Treasury Department Accountable to Help “Small”er Small Businesses; Demand that Senator McConnell, Federal Government Help NY

Today, Congressman Tom Suozzi (NY-03) joined Representatives Peter King (NY-02), Gregory Meeks (NY-05), Lee Zeldin (NY-01), and Kathleen Rice (NY-04) to stress the importance of holding banks, the Small Business Administration, and the Treasury Department accountable so that they do not only focus on large small businesses when approving loans, but also “small” small businesses seeking loans for less than $150,000.

Data from Small Business Administration, shown by Suozzi at the press conference (slides attached), demonstrates that a disproportionate amount of small business loans have gone towards those seeking more than $150,000, indicating that “smaller” small businesses may be getting left behind. Moreover, the Members expressed concern that financial institutions are being incentivized to prioritize larger loans requested by bigger small businesses because they require larger processing fees. Currently, processing fees are based on the balance of the financing outstanding at the time of final disbursement.

The Long Island Delegation also demanded more federal help for New York and Long Island in the fight against the current COVID-19 pandemic, especially considering Senate Majority Leader Mitch McConnell’s recent comments that hard hit state governments should file for bankruptcy instead of receiving more help from the federal government. 

“Now that the federal government has done its job to increase the funding available for small business loans, the banks and the Treasury Department must understand that we will be watching to ensure they take care of the little guys,” said Rep. Tom Suozzi, who represents three of the five hardest-hit counties in America. “I want to thank each of my colleagues on Long Island for joining me in this fight, and for standing in solidarity in the fight for New York in the face of Mitch McConnell’s wrongheaded comments. Our constituents have been hit harder than anywhere else in the country and we will continue to fight for our hospitals, our heroes working in essential government jobs, our residents and small businesses.”

“Every effort must be made by lenders -particularly bigger banks- and the Administration to ensure that funds are awarded to small businesses which are the backbone of Long Island,” said Rep. Peter King. “In the next round of legislation there has to be funding for state and local governments. Mitch McConnell cannot have one-man veto power over New York and Long Island!”

“Small businesses are in desperate need of assistance, and while PPP will help them make ends meet until we come through on the other side of this crisis, they’ve competed with major corporations better positioned to apply for relief. In strengthening and replenishing PPP, we’ve partly addressed this by allocating a set-aside for small community banks,” said Rep. Gregory W. Meeks. “Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs). This will help small businesses that don’t have relationships at the largest banks apply for the program. However, there is far more that needs to be done. Moreover, New York is clearly the epicenter of this crisis, and there is no question that Congress must act immediately to provide aid for localities.”

“Whether it’s providing hotspots PPE, expanding testing, supporting small businesses or providing additional federal funding to hard-hit areas, every level of government’s response to the coronavirus has continued to be non-partisan. Now is not the time to waver. We are all in this together and that includes doing everything in our power to support our small businesses, hospitals, state and local governments, and others impacted especially hard by coronavirus,” said Rep. Lee Zeldin. “Our nation’s small businesses employ nearly 50% of our nation’s workforce, and the vital funding that has been their lifeline while our Main Streets are shuttered should have never been allowed to lapse. Thankfully, Congress has gotten its act together to replenish these critical funds, and, as they’re dispersed, we must ensure they’re going to the hardworking Americans who truly need it, not a company flush with cash or an individual comfortably sitting on massive wealth.”

“No matter what Mitch McConnell or anyone else says – we will make certain Congress provides New York and Long Island with every penny of federal aid we need to overcome this crisis,” said Rep. Kathleen Rice. “I’m proud to be working alongside my colleagues in the Long Island Delegation to get this virus under control and ensure our constituents are taken care of.”

New York is currently the epicenter of pandemic and deserves special attention as a part of the federal response. Three counties represented by the Members, Queens, Suffolk, and Nassau, rank top 5 in the nation in confirmed cases. New York State has more than 30% of the cases and the deaths related to COVID-19. However, In the first $30 billion distributed to hospitals, the Administration only gave New York hospitals 6% of the funds despite our disproportionate number of cases.

The New York Delegation, including all five Members from today’s press conference, has already sent several letters to the Administration and Congressional Leaders asking that the New York State Government, New York State hospitals, and New York State local governments receive special attention as part of the federal response to coronavirus. Suozzi and King have led several of these letters, including two to the Administration asking for hospital aid to be based on the rate of infection and not data unrelated to the pandemic, and another with the entire New York and New Jersey Delegations asking Congressional Leaders for a special fund that should be distributed to states based on the rate of infection.