Former mayor who pleaded for guaranteed income to advise California governor
Former Mayor of Stockton, who has championed guaranteed income, joins Newsom administration
Michael Tubbs, the former mayor of Stockton, Calif., Whose three-year Basic Income experience was the headlines for how he has improved the well-being of low-income residents, will become a “Special Advisor on Mobility and Economic Opportunity” for California Governor Gavin Newsom, the Sacramento Bee reports.
The unpaid position involves serving on Newsom’s Council of Economic Advisors, working with businesses and economic development officials, and possibly working with lawmakers to advance guaranteed income laws. Tubbs also told the Bee that he wanted to lobby for other anti-poverty measures he had implemented in Stockton, such as college scholarships. “We should strive to end poverty in California,” he said.
Banks Call on Congress to Further Extend Paycheck Protection Program
President Biden overhauled the paycheck protection program in February to help very small businesses get more money, but some banks said there was not enough time to adjust to the changes before the program expires on March 31, The New York Times reports.
The changes were aimed at getting more money for sole proprietorships by fine-tuning the formula that determined how much money they were eligible to receive; some sole proprietorships under the old rules were advised that they were qualified to $ 1 loans.
But very large banks, such as Bank of America or JPMorgan Chase, have bluntly said they will not comply with the new guidelines: Bank of America stopped accepting new freelance applications on Tuesday, and JP Morgan Chase has told The Times he “does not plan” to use the new loan formula until he stops accepting applications.
The result was what some business owners called “chaotic” and others a “monstrous failure,” the Times reported, leading many lenders and businesses to request an extension of the program.
On Thursday, a House committee agreed on Thursday to extend the Paycheck Protection Program for an additional 60 days, Inc. reported. The measure could pass before the plenary chamber next week.
Illinois May Ban Payday Loans
Illinois could join dozen states with strong protections against predatory lending, WTTW reports.
The Illinois Predatory Lending Prevention Act, which awaits Gov. JB Pritzker’s signature after passing the state senate 35-9 and state house unanimously, would cap annual interest rates on short-term loans at 36%.
The average payday loan in Illinois has an interest rate of 297%, WTTW said.
the Chicago Reader reported in February that some community development financial institutions (CDFIs) believe that the removal of bad loans from Illinois will create more space for responsible lenders. The reader cited a CDFI, the Capital Good Fund, a nonprofit that offers small loans with an APR of 24%. Its borrowers have average credit scores of less than 600 and only 5% defaults on their loans, the Reader said.