Coronavirus Cash Crunch: MoCo Lawmakers Push For Moratorium

ROCKVILLE, MD — Montgomery County lawmakers are urging financial institutions and public utility companies to help struggling customers weather the coronavirus cash crunch.

In a statement on Wednesday, all nine county council members called on these businesses to institute a 60-day moratorium on customer defaults and work with residents who can't pay their bills.

"This is a critical moment for our community to come together," said Councilmember Hans Riemer, chair of the council's Planning, Housing, and Economic Development Committee. "While we do what we must to control the spread of this disease, we must support our local businesses so we can bounce back when the danger is past. Creditors like banks and landlords need to do their part to be flexible and adapt to these unique circumstances."

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To help county residents through this economic slowdown, council members are suggesting that banks waive fees, extend payment deadlines, provide payroll advances, extend low- and zero-rate loans, and implement other forgiving measures.

"As a former small business owner, I know how important it is to have adequate resources even when times are good. In these most difficult and unprecedented times, this becomes even more critical," said Council President Sidney Katz.

Utility companies — such as the Washington Suburban Sanitary Commission and Pepco — have already pledged to suspend service disconnections and waive late payment fees. The county council said these accommodations should be made for at least 60 days.

"Our residents and our small businesses will need time and assistance to recover from these unprecedented shut downs due to the COVID-19 virus. We must work together to rebuild during this time point for our local economy," said Councilmember Will Jawando.

SEE ALSO:

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