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MDMA Applauds Introduction of the "IGNITE American Innovation Act"

Thursday, August 6, 2020  
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MDMA Applauds Introduction of the “IGNITE American Innovation Act”

 

WASHINGTON, DC -- The Medical Device Manufacturers Association (MDMA) today applauded the introduction of bipartisan legislation, the “IGNITE American Innovation Act,” by Congressman Dean Phillips (MN) and Congresswoman Jackie Walorski (IN) that would provide critical liquidity to support high tech manufacturing and medical technology innovators adversely impacted by COVID-19.

 

“MDMA applauds Congressman Phillips and Congresswoman Walorski for their bipartisan leadership to provide support and resources for medical technology innovators who are passionately working to develop the cures and therapies of tomorrow,” said Mark Leahey, President and CEO of MDMA.  “The COVID-19 pandemic continues to cause severe disruptions for countless innovators who are simply trying to keep their doors open and retain their workforce, and this legislation would provide some of the liquidity that is needed to help the medtech ecosystem.  While we appreciate Congress’ unprecedented efforts to stabilize the economy, the existing liquidity programs are inaccessible for many emerging, fast growing companies.  The top priorities in the United States today are to save lives, and to save jobs, and the ‘IGNITE American Innovation Act’ would go a long way towards accomplishing these critical goals.”

 

Despite Congress’ unprecedented efforts to stabilize the economy, the two primary programs intended to support businesses and their employees - the Paycheck Protection Program (PPP) and the Main Street Lending Program (MSLP) - have limited applicability for many emerging, fast growing companies. 

 

The “CARES Act” provided greater flexibility for the use of Net Operating Loss tax credits (“NOLs”) to offset taxable income and established the Main Street Lending Program (MSLP) to provide new low interest loans up to $25M to provide necessary liquidity to offset the impact of the COVID-19 pandemic on many companies.  However, for capital intensive companies without taxable income, these provisions provided no relief.  H.R. 7917, the IGNITE American Innovation Act,” is designed to help address this challenge.

 

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