Sen. Loeffler on economic relief, stock trades and the coronavirus

U.S. Sen. Kelly Loeffler, R-Georgia, joined the Neighbor on a conference call Wednesday to discuss the stimulus package signed by Congress two weeks ago, what she has been doing during the pandemic and allegations that she used nonpublic information regarding the threat posed by the coronavirus while trading stocks weeks before the collapse of the U.S. economy.

This interview has been lightly edited for length and clarity.

Neighbor: Good afternoon, Senator. We’ve been following the news out of Washington, hearing that relief is on the way. Many people are still wondering when that relief will arrive, whether it’s checks for individuals or loans for small business people in danger of closing. What advice do you give them?

Loeffler: That’s an important question, because one of the things that I was focused on as we drafted this legislation was not only the amount but the speed at which we addressed this health crisis and kept the economy moving forward and giving certainty to businesses and families. So I have been really at the forefront of this, whether it’s the ... economic impact checks for families — so the $1,200 per person, $500 per child checks — or the small business loans: the SBA Paycheck Protection Plan to enable businesses to get that liquidity quickly. … If you look at when we signed the bill, it was two weeks ago today and then it was passed into law two days later by the president. And the Small Business Administration plan was stood up, operationalized last Friday. In order to move legislation that size — $2 trillion, which is roughly 10% of our GDP in 2019 but amplified by the leverage effect of it in the economy — we’re talking about a package that has … the firepower of about a third of our U.S. economy being deployed in a matter of a few weeks. It’s a lot. That being said, I think that we have more bureaucracy to get out of the way. The bill did a good job of cutting red tape. We need to continue to cut red tape. We’re doing that in the form of the feedback that we’re giving directly to the Treasury. For example, I’ve spoken with (Treasury) Secretary (Steve) Mnuchin twice now since the SBA program started, in addition to writing letters detailing the areas of delay and confusion caused for the banks and the borrowers. So I am taking point on this to make sure that Georgians are heard in this and that they’re served quickly.

Q: Is the $2 trillion dollars enough?

A: This remains to be seen. Like everything with this virus outbreak, every day we’re learning more about the situation, we’re learning about the health impacts, we’re learning about economic, educational, terrible small business impacts. And so as … the landscape evolves and the information becomes more complete, we are looking at that. In fact, I was on the phone last night with (Senate Majority) Leader (Mitch) McConnell. We were talking through the expectation that we will add to the Small Business Administration program. So topping up the $350 billion (with) another $250 billion, so $600 billion available for that program so that people aren’t left out, so that they don’t feel panicked if they’re not getting that instant approval. Now, that said, there is talk of a fourth piece of legislation, and I have been on the phone around the clock literally every day since we passed this legislation hearing about what gaps we might have missed or need to fill in for. But that’s offset by the fact that we need to implement this legislation. We need to start the payments going out, which they are now, but we need to see how that settles into the economy over the next few weeks and then look at what makes sense to address these gaps. The areas that I’m hearing most about do relate to small businesses. They relate to areas of liquidity and being able to keep their employees attached to them. And we know that this is important, not just because employees need their income, but they need their health insurance. They have careers, they have families and livelihoods that depend on these small businesses staying open. So as we learn more about the viability of this program to achieve those goals, we’re going to go back and look at what else needs to be done. ... Your question, “is this enough?” We won’t know until we get the full aspect of (the Main Street Lending) Program defined and deployed. So that program … really encompasses businesses that are not small, they don’t qualify as small businesses. Small businesses are defined as having 500 employees or fewer. But we know that there are many important companies with 500 employees or more. … That Main Street loan is meant to provide larger businesses with a backstop on their liquidity and enables them to benefit from easier access to credit. That is critical because often the customers or the suppliers of large businesses are small businesses. So those large businesses need to pay those small businesses for their inputs and their service. And so it’s a really 360-degree view of our economy to serve families, small businesses and large businesses.

Q: Senator, I’m interested in hearing how the pandemic is affecting you personally. For instance, where are you sheltering in place? Are you wearing a mask or a scarf or something like that when you go out? Are you eating takeout, and if so, where are you getting takeout from? Tell me a little bit about how you personally are enduring this crisis.

A: I am sheltering in place. I am doing exactly what’s been asked by Gov. Kemp, by the president. We all have to lead by example and it’s important that each of us does our part. .. If I do have to go out (to) let’s say pick up a prescription, I do wear gloves. I have a mask that I put on. … And, (it’s), important to do that to keep not just myself but others safe, because … it’s not clear in terms of how (the coronavirus) is communicable and who is carrying it. … My husband and I, one of the things we look forward to in the evening is ordering from one of our favorite restaurants. We feel strongly about supporting small businesses. So we’ve really been trying to go to these restaurants’ websites, order online the family meals, use Uber eats. We’ve hit the Chick-fil-A drive thru several times. But we’re also looking for ways to help. So a couple of days ago, the governor let me know that … two Georgia couples were stuck in Florida coming off a cruise ship. They were unable to travel commercially because they were not tested for COVID. They were on a cruise ship that did have several dozen cases of COVID-19. We volunteered our plane to serve as their transportation back to Georgia. So our pilots were willing to do that and now have self-quarantined after that flight. But I really want to commend our pilots for being willing to get those amazing couples back to Georgia on Georgia soil after a month at sea. And we just continue to look for ways that we can help. I had a couple of hospitals I sent lunch from Chick-fil-A to today and have really just also been reaching out to small businesses around the clock, literally on the phone with chambers of commerce, the National Federation of Independent Businesses, helping them navigate through the CARES Act and letting them know that my office is here for them. So I really have kind of a 24/7 command center in my home. My husband is dealing with his business from home. And I’ve gotten to see my cat a lot more. I never get to see my cat, so that’s been a nice, pleasant opportunity. But I’m also trying to get outside. … In the evening (I) try to go for a 10 minute walk or something to get fresh air.

Q: So when you refer to your home, is that in Georgia or are you in Washington?

A: No, I’m here in Atlanta. Georgia is home. … I’ve never spent so much time in my home. It’s been good to be here and also good to be able to be connected through Zoom, Skype, any other kind of phone calls and just constantly reaching out to people.

Q: Senator, you’ve gone on record several times speaking to the recent stock trade issue, and I saw a press release today that you’re changing the way you’re handling some of the investments. For constituents in Georgia who still have misgivings, what do you want them to know?

A: First and foremost, I have not profited or attempted to profit at any time based on my service in the Senate. In fact, I went to the Senate to step away from my private sector work, from a lucrative career. I donate my paycheck in the Senate to charities around Georgia. … How can people be confident that’s true? I don’t direct my own investments. My husband and I long ago separated from any involvement in our portfolios because we have spent over two decades in the financial services business. In the course of that business, you can come into contact with material, nonpublic information and it’s just best that you take yourself out of those decisions … not so that you’re not even making them (but) so that you avoid the optics of it. ... It really was a political attempt to try to tie a stock trade that was reported in my portfolio to a day I went to a meeting, a meeting where there was no material, nonpublic information shared. It was the day that Dr. (Anthony) Fauci (director of the National Institute of Allergy and Infectious Diseases) came out of the meeting and said the risk is low, there’s no need for a travel ban, we have the resources we need. And it was really a time for senators to meet the heads of our national health organizations. And this portfolio decision was 100% not related to anything I ever did or said. I didn’t even know about the transactions until long after they occurred. … In fact, I’ve signed away my ability to influence those portfolios long ago. So I just wanted to take that off the table as a future opportunity for attack. I appreciate that the transparency reporting was put in place for that reason, but it’s being abused by the media and by my political opponents. So I just wanted to take that off as a distraction because I hope everyone can see that I’m in Georgia working very, very hard. And in just three months I’ve made a difference for Georgia. I’ve demonstrated that I’m there for the right reason and I’m not going to be intimidated by these political attacks. I’m going to continue to do the work and fight for Georgia.

Q: As our senator ... what message do you want to send to your constituents who are sheltered in place and suffering through this pandemic?

A: First of all, I know this is an uncertain, very challenging time and that’s why I am fighting so hard for Georgia in terms of legislation, in terms of delivering on the promises that we’ve made to the American people to help them through this time. My office works around the state with families and businesses, whether it’s veterans seeking assistance with Veterans Affairs or medical needs or farmers that need us to hear them in terms of their needs. As the conditions change in the ag community, they know that I’m up there advocating (for) them. I want to hear from them. I’m very accessible and just really applying my integrity and work ethic (to) everything I’m doing in the Senate and very proud of the record I’ve established in three months.

Q: Anything else you’d like to say? A closing statement, if you will?

A: I would just say, my heart goes out to everyone impacted by this health emergency. I’m grateful for our frontline Americans that are helping us manage through this. While many shelter in place, there’s many out on the front lines whether driving a truck, delivering food to people like me from restaurants, doctors and nurses, our military who has mobilized. So I just want to say thank you to everyone who is doing their part.