Menendez Pushes for PPP Extension, Sustained Housing Pandemic Relief

Press Release

U.S. Senator Bob Menendez (D-N.J.), a senior member of the Senate Banking Committee, today pushed for an extension of the popular Paycheck Protection Program (PPP) during questioning of Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell. PPP, which has delivered $718 billion in relief for struggling small businesses throughout the pandemic, is due to expire next week if Congress fails to act. The senator also stressed the need to continue programs designed to avert a looming housing crisis by helping people stay in their homes.

"In February, three out of every ten small businesses said that they likely would not survive 2021 without additional government assistance,"said Sen. Menendez. Fortunately, the American Rescue Plan included $7.25 billion for PPP loans and second draw PPP loans. But if Congress doesn't reauthorize the program in the next seven days this money will never reach struggling small businesses. It would be reckless and cruel to let this program expire when there are still $50 billion of desperately-needed PPP funds remaining and businesses waiting for relief."

He asked Secretary Yellen if the economy has recovered to a point where it's safe to let PPP lapse.

"Of course the economy is not in a place where small businesses that have been affected are able to thrive," Secretary Yellen responded. "I'm not sure how much money remains in the program, but there is some, and I would be supportive of an extension."

Sen. Menendez then had an exchange with Chair Powell over the need to continue providing housing assistance for struggling families, given the current high mortgage and rental payment delinquency rates. As of March 1, there were an estimated 13.5 million adults behind on rent and an additional 10.3 million adults behind on their mortgage payments, according to the Center on Budget and Policy Priorities. Minority communities are disproportionately impacted with 33 percent of Black renters, 20 percent of Latino renters, and 16 percent of Asian renters reporting that they were behind on rent, compared to 13 percent of white renters.

The American Rescue Plan included $25 billion dollars in rental assistance, nearly $10 billion dollars in homeowner assistance, and $100 million in housing counseling funding, one of Sen. Menendez's priorities, that can help renters and homeowners avoid foreclosure or eviction.

"The level of distress was very, very high and has recently been coming down a bit, but it's still quite material, so that crisis is not, is certainly not over," Chair Powell said. "The fiscal response [from Congress] has been remarkable, frankly."

"But a fiscal response that leaves millions of people out of their homes, whether they be as renters or homeowners, isn't going to be a fiscal response that's going to provide us long-lasting benefits, is that fair to say?" interjected Sen. Menendez.

"I would say it is, yes," Chair Powell responded.

The senator reserved his remaining time to question both officials on their respective efforts to increase diversity at the Fed and Treasury. Chair Powell and Secretary Yellen each committed to making diversity within their ranks a priority.

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