United States Senate
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CRAPO, IDAHO CHAIRMAN RICHARDC , SHER , PATRICK PENNSYLVANIA JACKREED ISLAND TIMSCOTT SOUTHCAROLINA ROBERTMENENDEZ JERSEY BENSASSE NEBRASKA JONTESTER, MONTANA TOMCOTTONARKANSAS MARK WARNER MIKE ROUNDS , SOUTHDAKOTA EUZABETHWARREN , MASSACHUSETTS DAVIDPERDUE GEORGIA BRIAN SCHATZ THOM TILUS CAROLINA CHRIS VAN HOLLEN MARYLAND United States Senate JOHN KENNEDY LOUISIANA CATHERINE CORTEZ MASTO, NEVADA MARTHA ARIZONA DOUG JONES COMMITTEEONBANKING, HOUSING AND JERRY MORAN, KANSAS TINA SMITH MINNESOTA KEVIN CRAMER , NORTH DAKOTA KYRSTEN , ARIZONA URBAN AFFAIRS WASHINGTON , DC 20510-6075 GREGG RICHARD DIRECTOR LAURA SWANSON , DEMOCRATIC STAFF DIRECTOR July 31, 2020 The Honorable Steven T. Mnuchin Secretary Department ofthe Treasury 1500 Pennsylvania Avenue NW Washington, DC 20220 The HonorableJerome H. Powell Chairman BoardofGovernorsofthe FederalReserve System 20th Street and ConstitutionAvenue NW Washington, DC 20551 Dear Secretary Mnuchinand ChairmanPowell: The Federal Reserve and Treasury Departmentrecently announced that they would be extending various 13( 3 ) emergency lendingprograms by three months, throughDecember31, 2020, inorder to “ facilitate planningby potential facility participants and providecertainty that the facilities will continueto be availableto help the economy recover.” There are also still funds availableunder section4003(b )(4 ) of the CARES Act intendedfor Federal Reserve 13(3 ) facilities and I encouragethe FederalReserve and Treasury Departmentto quickly expandthe Main Street Lending Programby settingup an asset-based lendingprogramand commercial real estate program. Establishinga facilityto accommodateasset-based lendingcould openaccess to critical resourcesfor several industriesthat couldnototherwiseaccess the MSLPbasedon earnings or cash flow metrics. Suchasset-based lendingwouldbe predicatedon pledgedcollateral. Addressingthe uniquecircumstancesfaced by commercialreal estate, includingsecuritized commercialmortgages, whether through access inthe MSLPor a separatefacility. Severaloptions havebeen circulatedandshouldbe carefullyconsideredincraftingthe appropriateterms. The FederalReserveandTreasuryhavetakenimportantsteps to support the broader economy and I look forwardto workingwithyoubothto continueto expand the MainStreet LendingProgram . Sincerely, Mike Crapo Chairman.