Middle-Market Public Policy Roundup

In this week’s roundup, we look at negotiations in Congress over a new stimulus package. We also preview a hearing hosted Friday by the Congressional Oversight Commission for the CARES Act, where ACG’s CEO Tom Bohn will deliver comments about the Federal Reserve’s Main Street Lending Program. We also give an update on two nominees to lead the Securities and Exchange Commission, who cleared a committee vote.

Stimulus Package Could Be Approved by Week’s End

The Trump administration said it’s working around the clock with lawmakers to negotiate the next round of stimulus funding, which could arrive later this week, after previous indications suggested it could take longer.

House Speaker Nancy Pelosi, D-Calif., and Senate Minority Leader Chuck Schumer, D-N.Y., met with Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows multiple times to hammer out deal but didn’t divulge specific policy items.

“They made some concessions, which we appreciated. We made some concessions, which they appreciated. We’re still far away on a lot of the important issues,” Schumer told reporters after the meeting. “The fundamental disagreement is the scope and depth of the problem and its solution.”

That’s a big improvement over the sentiment put forward on Monday by Pelosi, who said a deal might not happen until mid-August.

Lawmakers are deliberating on the contents of the next stimulus package, which could be a blend of two competing legislative efforts being advanced by Senate Republicans—who back the recently-introduced HEALS Act—and House Democrats, who support the HEROES Act.

As yet, none of the HEALS Act’s component bills have been brought to vote.

A version of the HEROES Act was passed in the House in May to supplement the first round of stimulus funding but died in the Senate. Last week, House lawmakers revived the bill.

Senate Republicans praise the HEALS Act, which is a package of around nine separate bills, for being one-third the cost of the House Democrats’ $3 trillion plan. But House lawmakers say it doesn’t provide enough relief for renters or mortgage holders.

The Senate plan also doesn’t restore the weekly $600 federal unemployment bonus to jobless Americans, which ended on Friday and could lead to a wave of evictions in the coming weeks if lawmakers don’t settle on a plan soon.

Tendayi Kapfidze, chief economist at mortgage aggregator LendingTree, told CNBC on the same day unemployment bonuses depleted that mass evictions could have far-reaching effects, potentially straining credit markets as banks face a surge of delinquent property payments.

ACG CEO to Testify on Main Street Loans Before CARES Oversight Commission

ACG President and CEO Tom Bohn will offer testimony about the efficacy of the Main Street Lending Program before the Coronavirus Aid, Relief, and Economic Security (CARES) Act Congressional Oversight Commission.

The public hearing will be held on Friday, Aug. 7, and begin at 10 a.m. Eastern.

Eric S. Rosengren, president of the Federal Reserve Bank of Boston, which is managing the Main Street Lending Program facility, will speak for the first hour.

Bohn will focus his remarks on borrowers, including results of a recent survey about members’ experience with the program. You can watch the hearing here.

SEC Nears Full Staff Levels After Committee Approval

The Securities and Exchange Commission is one step closer to a full bench on Wednesday after a committee voice vote approved two candidates to fill vacancies at the agency.

During an executive session of the Senate Banking Committee, current SEC Commissioner Hester Pierce and Caroline Crenshaw, an attorney who has served at the SEC since 2013, were cleared for a vote before the full Senate—which will likely occur sometime after the August recess.

Peirce, whose term ended on June 5, is seeking approval for a second term. Crenshaw is looking to take over the position left vacant by her former boss, Robert Jackson, who stepped down in February when his term expired.