A Rumor or Power Play?

After every election the rumor mill swirls with half-truths and delusions of grandeur.

There are “unnamed” sources who are lobbying House Democratic Caucus Chairman Hakeem Jeffries (D-NY) to challenge House Speaker Nancy Pelosi.  When asked by reporters, Jeffries swiftly denied those rumors.

To some this may seem like a power play, however it looks more like leverage to get a promotion.  Remember, Nancy Pelosi is a prolific fundraiser for her members ($227M this cycle alone) and is feared and respected by many in her conference. Any serious challenge would be done quietly and without leaks to the press.

Back in 2004 Senator Chuck Schumer made a similar play while running for U.S. Senate.  The idea was floated by “unnamed sources” that Schumer (given his popularity in the state) might run for Governor of New York, muddying the waters for Eliot Spitzer.   However, that November after he won reelection, Schumer was given the coveted position of Chairman of the Democratic Senatorial Campaign Committee catapulting him to the third most powerful position in the Senate.  This opened the path for him to eventually become Senate Minority Leader.

Look to see Jeffries take on an expanded leadership role under Speaker Pelosi in 2021.

Another Round of PPP and EIDL

There has been a bill in Congress (S.4227) that would add an additional $180 billion to the EIDL program. The Small Business Administration was hopeful this bill would move through on its own without being tangled up in the COVID stimulus mess.

The bill would add $100 billion into the EIDL program and lift the $150,000 cap on loan funds.  Small businesses would be able to access the up to $2 million that the CARES act originally provided. In addition, there is $80 billion available for the EIDL grant program as many businesses did not receive the full $10,000.  Under this provision those businesses would automatically receive difference in funds deposited into their bank account.  There is also talk about the SBA 7a program covering 100% of the loan to help businesses get back on their feet.

Look for Congress to come back in the Lame Duck Session to do a deal on stimulus.  It is likely a small business package similar to the aforementioned proposal will be in there.