Consumers who need access to credit during coronavirus crisis and other emergencies faced a very close call this week when some in Congress tried to sneak a provision into the COVID-19 economic rescue package that would have limited options for consumer cash and credit at the worst possible time. Policymakers who understand the devastating impact so-called rate caps have on workers and families ensured the coronavirus rescue package did not include one.

While consumers were spared for the moment, as Congress considers additional initiatives to rescue the U.S. economy, it’s clear Speaker Nancy Pelosi and House progressives will not, to paraphrase Rahm Emanuel, let the global COVID-19 crisis go to waste.

Speaker Pelosi and her followers doubled down on legislative proposals full of billions of dollars of handouts and subsidies, despite intense criticism for their previous bloated, bailout-rich coronavirus “relief” packages, now known as #coronapork. Members of Congress, analysts, watchdog groups and many others sounded the alarm about giveaways to special interests and progressive pet projects such as the Green New Deal, the USPS, student debt forgiveness and financial “reform” wish list items that would hurt the very consumers their supporters claim they want to help.

I wrote last month about how the American public is being deceived into supporting leftist consumer lending policies under the guise of “military and veteran protections,” and true to form, House Financial Services Committee progressives tried unsuccessfully to sneak this pet financial services initiative into the COVID-19 response package. Senate Banking Democrats proposed a “Coronavirus Relief” 36 percent rate cap on all consumer loans, while the House version would cripple non-bank lenders by prohibiting them from collecting money from borrowers for months.

California has been one of the hardest hit states in the nation with the coronavirus.

Thousands of COVID-19 cases have been confirmed and dozens have tragically died. Unfortunately, for consumers in the Golden State, a new state rate-cap law went into effect earlier this year that will severely restrict their access to credit at one of the worst possible moments. With government-mandated stay-at-home orders, a majority of employers are banned from opening their doors, and workers ready and able to work are banned from working.

There’s no question these orders will save lives – which is and should be our first priority. But what about the families facing economic hardships through no fault of their own? Due to the California legislature’s ill-advised, and now ill-timed, rate cap law, Californians have fewer options to get the credit they might need for rent, food, utilities and other essentials to weather the coronavirus storm.

California policymakers aren’t the only ones making bad decisions for their consumers. Virginia and Ohio have also passed or are close to passing rate cap laws that would make scarce credit access even scarcer in these states. Congress should not follow in their footsteps now or after American life and our economy recovers. Even before the coronavirus crisis, reports showed 40 percent of Americans did not have funds to cover a $400 emergency. Now the emergency is greater than any of us could have imagined, and consumers in some states have fewer options to meet the credit challenges it has created.

Make no mistake – it appears that we are headed for a recession or worse. Restricting access to credit will exacerbate the financial impact of an economic downturn for millions of American families. Now is not the time for back room deals and special interest giveaways. Now is the time for real solutions. Restrictions on access to credit would decimate the innovative non-bank financial institutions that are built on the notion of providing financial services to all Americans, regardless of socioeconomic status or credit history.

As Congress considers additional coronavirus relief packages, it is critical to resist any attempt by progressive liberals to write themselves and their donors a blank check for a of social and corporate reforms that have nothing whatsoever to do with America’s unfolding medical and economic crisis. Now is the time for everyone, regardless of their political party, to exhibit leadership and restraint to resuscitate the economy, create jobs, and save lives.

Ray Haynes is a former California legislator and served as National Chairman of the American Legislative Exchange Council. Haynes can be reached at ray-haynes@hotmail.com.

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(24) comments

HwyRovr

27 MARCH 2020 1530 UPDATE

Here is the impeached loser Republiscums keep backing – At Fridays Dog and Pony Show the impeached fool demanded Governors Appreciate Him to Get Help, “If They Don’t Treat Me Right, I Don’t Call!”

Ahead of the Dog and Pony Show the impeached fool, in the Oval Office, signed the coronavirus stimulus package into law alongside Senate Majority leader Mitch McConnell and House Minority leader Kevin McCarthy…but no Democrats because Trump is a petty b$#@h.

HwyRovr

FRIDAY 1100 UPDATE

The $2.2 trillion coronavirus relief bill, which features both direct payments to the American public and loans to small businesses as well as more corporate bailouts, has ended up as the largest disaster relief package in the history of the United States. And while the impeached president and his family of crooks were supposed to be blocked from benefiting from the stimulus package, it seems as though some of the provisions featured in the fine print of the 880-page corporation-friendly emergency relief bill offers up a loophole for both the impeached president himself and his son-in-law Jared Kushner to reap the benefits after all.

Despite Democrats’ efforts to include provisions that disallow the impeached president, along with other government officials and their families from dipping into the proverbial honey pot, the New York Times now reports that overwhelming swell of the bill during negotiations had led to an additional provision for benefits for special interests, and it will mean Kushner will get a check after all.

The block against government officials receiving a cut of the relief package appears to only apply to those who “directly or indirectly” control 20 or more percent of a company. Ivanka’s husband has a habit of splitting up his ownership between himself and his parents and siblings, often leaving him with ownership over less than 20 percent criteria of the company.

And it seems as though Kushner may not be the only member of the losers clan that’s eligible for the exceptions.

Provisions outlined in the bill allowing for companies with multiple hotels to qualify as a small business, making them eligible for the loans, as well as benefits regarding tax breaks for restaurants that could ultimately serve as a cut of the stimulus package for the president himself, as is crooked Organization owns a small chain of hotels as well as several restaurants.

These fine-print provisions could ultimately allow the impeached president to receive massive tax breaks as well as the small business loans allowed in the package provided he continues to pay his employees — though reports have indicated that hundreds of workers have already been laid off.

Honestly, it comes as no surprise that the impeached losers jockeys in Congress sank their teeth in and refused to relieve the American public until they found a way to benefit the scumbag, and by default themselves. All while the rest of us out here in the real world will barely be getting enough to make ends meet.

HavasuGuy

“Coronavirus Relief” 36 percent rate cap on all consumer loans is a problem? So we should let banks and loan companies charge more than 36% on loans so they can own the people who need their help? What a great way to "Keep America Great"...

deaton

“Coronavirus Relief” 36 percent rate cap on all consumer loans is a problem? (HG 3/27/20) Hey, HavasuGuy[batman] don't want to pay a 36% interest rate, borrow money from someone who offers a "competitive interest rate" it's called a "Free Market"!! "Bad Credit" who's fault it that? Go to a Pawn Shop! Or you can try a Mob "Loan Shark" see what interest they charge, maybe broken knee caps? OR, maybe your Union! [thumbup][rolleyes] Deaton

HavasuGuy

What union? Your childish remarks really stink up this comment board, show your intelligence and aren't worth the time of day. I have a tip for you so you can relieve that tRUMP syndrome you suffer from. The next time he starts to walk, plant your feet firmly to the ground and your head should slide right out. Don't bother responding, from now on I will not even read your childish garbage comments. Live the virus, I'm social distancing myself from your diseased remarks. Goodbye dumbass.

VA172

deaton. Is HG admitting he can't handle you? He acts more like a die hard liberal than a conservative republican that he claims he is.

VA172

HG. I'm really disappointed in you with your hurtful language. All you will manage to do is upset deaton and make him feel bad.

Comment deleted.
VA172

[smile][thumbup]

HwyRovr

Attaboy, Grover, keep kissing Scut's butt. You do it so well!

simon1dog

"As Congress considers additional coronavirus relief packages, it is critical to resist any attempt by progressive liberals to write themselves and their donors a blank check for a of social and corporate reforms that have nothing whatsoever to do with America’s unfolding medical and economic crisis." Amen

HwyRovr

UPDATE

Once again proving Republiscums cannot be trusted the Senate was about to approve the largest recovery bill in U.S. history on Wednesday night when Minority Leader Chuck Schumer hit pause, realizing something was missing — revised language designed to bar the impeached president from getting money for his own businesses had mysteriously disappeared. .

Democrats and Republicans had already agreed to a rewritten clause, but the update somehow had not made it into the final printed legislation.

For two hours, Schumer and fellow Democrats held up the bill — written to boost a faltering economy amid the coronavirus outbreak — while the stricter language was put back into the bill. The Senate passed the $2 trillion package just before midnight.

The change was meant to close a loophole in the original clause that barred loans to businesses that were at least 20 percent owned by presidents or their children, spouses and in-laws. The updated language extended the ban to businesses in which several family members collectively have a 20 percent stake.

For Democrats, it was a small victory after three years of fruitless efforts to block Trump from linking his private business interests with America’s highest public office.

Mr Lemons

"language designed to bar the impeached president from getting money for his own businesses"

The "language" wasn't targeted specifically to the President as you (and most media) imply. Those excluded from participating and benefiting from the $2 trillion package are as follows in the actual H. R. 748:

The President, the Vice President, the head of an Executive department, or a Member of Congress; and the spouse, child, son-in-law, or daughter-in-law, as determined under applicable common law, of an individual described in subparagraph.

EXECUTIVE DEPARTMENT.—The term ‘‘Executive department’’ has the meaning given the term in section 101 of title 5, United States Code.

MEMBER OF CONGRESS.—The term ‘‘member of Congress’’ means a member of the Senate or House of Representatives, a Delegate to the House of Representatives, and the Resident Commissioner 5 from Puerto Rico.

So it includes Dianne Feinstein and her stock-selling hubby and all members of the House and Senate and their families. Unfortunately, Hunter Biden can take advantage of the bail out.

Comment deleted.
deaton

“Never let a CRISIS go to waste!” Rahm Emanuel (Big “D”) former Obama Chief of Staff, Former Chicago Mayor [thumbdown][crying] Deaton

HwyRovr

Yeah, those "nasty" Democrats and their efforts to protect the average American while the Republiscums wanted to give more billions to corporations without oversight aqlong with allowing our crooked impeached president to have total control over $500 billion dollars, again with no oversight. Did you notice this idiot was upset about monies being provided to the postal service? What's up with that?

DO NOT, ever, under any circumstances, allow Republiscums unfettered access to tax dollars. Having an IG watching the spending of these funds is not only necessary, it is vital.

Mr Lemons

"aqlong"

snd

YOU ARE A IDIOT WITH BLINDERS ON. MISERABLE HUMAN BEING.

HwyRovr

"an" - PLEASE TURN OFF YOUR CAPS LOCK. I somewhat agree, however saying such a thing about Lemonhead goes against another requirement, to wit, BE NICE.

VA172

ha ha, Rovr tells someone to be NICE. You prove everyday what a comedian you are.

HavasuGuy

I agree Hwy, there is no need for snd to call Mr. Lemons those mean and unkind names. I'm not sure what aqlong means, but I'm sure it's not a bad word...

snd

IT IS YOU MR ROVR THAT IS THE IDIOT. My sincere apology to Mr. Lemons.

Mr Lemons

snd - You can leave your caps lock on if you feel like it. You described Heavy Rover, accurately. Why he can't accept a compliment is beyond me.

HwyRovr

Who is "Heavy Rover?" What is it with you pathetic losers and all these weird people that seem to float about in your massively empty craniums? And simply because some fool says, "You can leave your caps lock on if you feel like it," it does not negate the newspapers demand that you 'TURN YOUR CAPS OFF LOCK OFF." Gawd but you're an ignorant bunch!

VA172

Can't wait for the debates this fall. Can Old Sleepy Joe stay awake long enough to debate Trump, that is if he remembers where to go.

VA172

USPS bailout did not belong in this bill. On another note why did Pelosi get millions of dollars for the Kennedy Center? What does that have to do with the stimulus bill?

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