Rep. Katko Introduces Bipartisan, Bicameral Legislation to Cut Red Tape, Promote Economic Development in Central New York During COVID-19 Pandemic

Press Release

U.S. Rep. John Katko (R, NY-24) today announced the introduction of the Reinvigorating Lending for the Future (RLF) Act of 2020, bipartisan, bicameral legislation that reduces barriers to lending through the U.S. Economic Development Administration (EDA) Revolving Loan Fund Program. Rep. Katko introduced this measure alongside U.S. Rep. Collin Peterson (D, MN-7). Companion legislation was introduced in the Senate by U.S. Senators Shelley Moore Capito (R-WV) and Ben Cardin (D-MD).

The EDA's Revolving Loan Fund Program enables regional development organizations and other local intermediaries to provide loans to businesses that have been unable to access capital through traditional sources. Unfortunately, current law requires indefinite reporting on loans made through this fund, placing a significant burden on local intermediaries and reducing access to assistance for struggling businesses. By reducing onerous reporting requirements and promoting continued investment in economic development, the RLF Act would help to expand the availability of EDA assistance in Central New York and across the country.

"I'm proud to announce the introduction of the Reinvigorating Lending for the Future (RLF) Act of 2020, bipartisan, bicameral legislation that will allow more Central New York businesses to access funding through the EDA's Revolving Loan Fund Program," said Rep. Katko. "At a time when our community continues to face significant financial uncertainty due to the COVID-19 pandemic, my legislation takes important steps to remove red tape that can often hinder a business's ability to receive loans through this program. Working with both Republicans and Democrats in Congress, I will continue to promote economic development in underserved areas and ensure programs like the Revolving Loan Fund Program are responsive to our community's evolving needs."

"The Economic Development Administration's Revolving Loan Fund is an important tool in the rebuilding of our rural economies as a result of the COVID-19 pandemic. This bipartisan legislation would remove red tape that discourages organizations from utilizing the RLF and gives more control back to local organizations to support business development and job growth," said Rep. Peterson.

"Revolving loan funds are a valuable tool to provide working capital and other assistance to businesses in underserved areas, particularly as they recover from the COVID-19 pandemic," said Senator Capito. "Unfortunately, administrative red tape sometimes discourages these critical resources from being deployed. This legislation will ensure that those revolving loan fund operators with a track record of success are more easily able to lend to West Virginia businesses at this important time for our economy."

"This legislation will improve the effectiveness of EDA's revolving loan fund program. For decades, this program has been a vital resource for communities across Maryland to build entrepreneurial capacity and foster business development in the face of economic downturns," said Senator Cardin. "Our bipartisan bill ensures this program will remain focused on these goals, while empowering the economic development professionals who manage these funds to spend more time assisting the businesses and communities they serve."