January 21, 2009

Lakewood, CO – Today, the House passed HR 384, the TARP Reform and Accountability Act. Included within the bill are three provisions from U.S. Rep. Ed Perlmutter (CO-07), a member of the House Financial Services Committee and the House Rules Committee to address getting credit flowing to Main Street where the impact will benefit small businesses, farmers, and individuals. The provisions include:

1. Small Businesses and Farms: An amendment ensuring small businesses are eligible for TARP funding in order to gain adequate access to capital to fund their needs in the constricting credit markets.
2. Debtor In Possession: An amendment to ensure companies who are in Chapter 11 have continued access to financing so they can reorganize their businesses rather than liquidating their assets and going out of business.
3. Tighten Priority Rights for Auto Industry Loans: An amendment to provide for priority rights for emergency loans made to the auto industry in December.

“I’m pleased the House passed this important measure to get money and credit moving directly to Main Street,” said Perlmutter. “It took a lot of time for our economy to get to this level, and it’s going to take a lot of work to stabilize this ship. The important thing we have to do is to keep our businesses going, keep people working and keep money flowing. These provisions address some of those concerns, and help safeguard taxpayers for the money loaned to the auto industry back in December.”

Congress passed TARP in September of last year after several major banks, insurance companies, and stock brokers failed and many financial experts and Secretary Paulson feared an old fashion run on the banks if nothing was done.

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