Former mayor who advocated for guaranteed income to advise the governor of California – Next city
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 made headlines on how it improved the well-being of low-income residents, will become ” Special Advisor on Economic Mobility and Opportunities ”for California Governor Gavin Newsom, reports the Sacramento Bee.
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 implemented in Stockton, such as college scholarships. “We must strive to end poverty in California,” he said.
Banks Call on Congress to Further Extend Paycheck Protection Program
President Biden revised 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, reports The New York Times.
The changes were aimed at getting more money for sole proprietors by fine-tuning the formula that determined how much money they were eligible to receive; some sole proprietorships under the old rules were told they were eligible for $ 1 loans.
But very large banks, such as Bank of America or JPMorgan Chase, have said bluntly that they will not meet 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 Thursday to extend the paycheck protection program for another 60 days, Inc. reported. The measure could be presented to the full House next week.
Illinois May Ban Payday Loans
Illinois could join the dozen states with strong protections against predatory lending, WTTW reports.
Illinois Predatory Loan Prevention Act, which awaits Gov. JB Pritzker’s signature after passing 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 predatory loans from Illinois will create more space for responsible lenders. The reader cited a CDFI, the Capital Good Fund, a nonprofit organization that provides small loan amounts up to a maximum annual rate of 24%. Its borrowers have average credit scores below 600 and only 5% default on their loans, the Reader said.