In the News

The $2.2 trillion federal stimulus and stability package partially authored by U.S. Rep. Richard E. Neal includes more than $375 billion in small business relief.

That includes $349 billion for forgivable loans to small businesses to pay their employees and keep them on the payroll; $17 billion for debt relief for current and new SBA borrowers; and $10 billion in immediate disaster grants.

But on Tuesday, business and nonprofit leaders told the Springfield Democrat about the limitations of the program and their fear that small businesses won’t survive long enough during the coronavirus lockdown to take even get the loan.

“What happens in the interim,” asked Greylock Federal Credit Union President and CEO John L. Bissell Tuesday during a telephone town hall with Neal. “Again, we are concerned. We may lose some of these small businesses that would have preferred to keep going.”

It was the second telephone town hall for Neal, whose district includes Greylock’s Pittsfield headquarters.

Neal is chairman of the powerful House Ways and Means Committee charged with writing tax law and overseeing the Internal Revenue Service. He and Dr. James Lederer of Berkshire Health System answered questions about the spread of the virus and supplies.

Neal also discussed the unfolding situation at the Holyoke Soldiers Home.

Neal said he and his congressional colleagues worked with Treasury Secretary Steven Mnuchen on the plan so it puts the loans out into the economy through the U.S. Small Business Administration and its lending partners: community banks and credit unions, across the country.

"We think you know your customer best," Neal said.

Neal said the concern is legitimate.

"That was one of the challenges that we had," Neal said. "The challenge is to get the money into the pipeline."

Benjamin Quick , executive director of the nonprofit Pioneer Valley Riverfront Club said payroll is his most pressing worry with club training and competitions over for the time being. He said his bank had no information for him on ways to take advantage of the programs.

Later Wednesday, the SBA and Treasury Department announced what they called a "robust mobilization effort" of banks and other lending institutions to provide small businesses with the capital.

Neal also spoke about his desire to get individual payments -- $1,200 for most single tax filers-- out to people and into the economy. He said it’s a problem that the IRS is asking low income folks who don’t normally file a tax return file one just to get the check.

Folks had to do that in order to get stimulus checks during the Great Recession.

Tuesday, Neal called for using Medicaid records to get checks to people who are on the lower income scale.

He also predicted another round of stimulus that would include an infrastructure building plan: roads, bridges, rail, harbors, airports and broadband.

It's a theme President Donald Trump also hit Tuesday

One caller Tuesday asked about broadband internet connectivity , saying it's an especially important issue now with kids home from school trying to do homework.

Neal said he’s already helped with federal funding for broadband expansion but more needs to be done.