January 14, 2009

Lakewood, CO – Today, U.S. Rep. Ed Perlmutter (CO-07), a member of the House Financial Services Committee and the House Rules Committee introduced amendments regarding changes to be included within the new TARP reconditioning bill to be voted on tomorrow by the House. (H.R. 384, to Reform the Troubled Assets Relief Program of the Secretary of the Treasury and Ensure Accountability Under Such Program, or, TARP II).

The following amendments from Perlmutter will directly address getting credit flowing to Main Street where the impact will benefit small businesses, farmers, and individuals:

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.

“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,” said Perlmutter. “These amendments will 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.

These amendments will be included in the “Manager’s Amendment” which will be voted on by the full House tomorrow.

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