FAQs

Frequently Asked Questions

What is a PAC?


A political action committee, or PAC, is used by trade associations, small and large businesses and corporations to support candidates running for public office. PACs rely on voluntary contributions from individuals who unite for the purpose of electing those who support their interests. The LSTA PAC is your PAC. The most important role that PAC contributions play is to build relationships with members of Congress and their staff. Thereby, when an issue does arise and the member and/or their staff needs to be educated on it, the relationship has already been established and they’re able to look to us to educate them on our position on key issues. PAC contributions open the door to allow understanding to happen.




What is the LSTA PAC?


The Loan Syndications and Trading Association Political Action Committee (LSTA PAC) is a voluntary, nonpartisan, federal political action committee. The PAC, formed by the Business Loans Coalition as part of the LSTA’s advocacy efforts, is funded solely by PAC-eligible individual members of the Coalition and employees of LSTA member companies that have provided authorization in writing to the LSTA. The LSTA PAC allows members to pool personal, voluntary financial contributions to provide one collective voice that ensures our industry’s interests are protected and promoted in the political arena. One hundred percent of member contributions go directly toward supporting federal political candidates who support and champion the loan asset class.




Why was the LSTA PAC formed?


The LSTA is the leading advocate for the U.S. syndicated loan market and promotes fair and equitable market principles while representing the shared interests of the loan market participants. The LSTA partakes in a wide array of activities in their mission to support the U.S. syndicated loan market and provides members with a way to collaborate and coordinate in all areas of the industry. The LSTA’s ability to effectively deliver on its mission depends on responsible public policies that benefit and support the industry. That’s why the LSTA formed the Business Loans Coalition, its grassroots advocacy affiliate organization, to provide industry members a way to get involved. The LSTA PAC was formed to support and expand upon the Coalition’s overall political advocacy efforts, giving members the opportunity to directly impact and advance the syndicated loan market through political engagement at the federal level.




Why does the association need a PAC?


Federal and many state laws prohibit corporate trade associations, such as the LSTA, from contributing funds directly to federal candidates. Instead, eligible individuals can make voluntary contributions to the organization’s political action committee (PAC) to support candidates running for Congress.




Why is the LSTA PAC important?


Legislative decisions made in Washington, D.C. have the ability to impact our industry and the way our member firms do business. The LSTA PAC helps build relationships with policymakers and educate them about our issues so they can make more informed decisions. The PAC is our voice in the political space, allowing us to support candidates for Congress who understand and value our industry.




Who is eligible to contribute to the LSTA PAC?


Individual members of the Business Loans Coalition are eligible to contribute to the LSTA PAC. Employees of the LSTA’s corporate member firms who have provided the LSTA PAC with prior authorization are also eligible to contribute to the PAC. Individual contributors must also be U.S. Citizens or permanent resident aliens (i.e., green card holders) to participate.




How does the PAC choose which candidates receive financial support?


Contribution decisions are made by the LSTA PAC Board of Directors. The LSTA PAC only contributes to federal incumbent candidates seeking reelection to federal office on a nonpartisan basis. The following criteria are used by the LSTA PAC as guidelines when considering candidates for support: (1) Voting records and views on issues critical to our industry.
(2) Membership on relevant key committees that oversee our business issues.
(3) Leadership position or potential on those key committees.
(4) Locations of LSTA members and member firms in the member’s state or district.
(5) The member’s potential for election success and election competitiveness.




How is the LSTA PAC governed?


The LSTA PAC is governed by a Board of Directors made up of three individuals. Each individual will serve two-year terms, with no limit on the number of terms. One board position will be designated as a member-elected position, in which members of the Business Loans Coalition may select and/or vote on that representative at designated periods. The Board of Directors will expand to a full nine-member board within the first six months of 2020.




How may I contribute to the LSTA PAC?


To contribute, simply visit the “Support the PAC” page on this website and select your desired contribution type and amount.




How much should I contribute to the LSTA PAC?


Every contribution, regardless of amount, makes a difference. Members may contribute any amount, up to the maximum $5,000 per individual per calendar year.




How much can the LSTA PAC contribute to candidates?


The LSTA PAC can legally contribute up to $5,000 per election (primary, general and runoff) per federal candidate or to another federally registered PAC. There is no aggregate limit on PAC contributions to all federal candidates in any one calendar year.





Contributions to the LSTA PAC are not tax deductible. Contributions are used for political purposes and are voluntary. You may refuse to contribute without reprisal. The guidelines are merely suggestions. You are free to contribute more or less than the guidelines suggest and the association will not favor or disadvantage you by reason of the amount contributed or the decision not to contribute. Federal law requires the LSTA PAC to use our best efforts to collect and report the name, mailing address, occupation and the name of the employer of individuals whose contributions exceed $200 in a calendar year.

About the LSTA

 

The BLC is an affiliate organization of the Loan Syndications and Trading Association (LSTA). Since 1995, LSTA has been the leading advocate for the U.S. syndicated loan market, fostering cooperation and coordination among all loan market participants, facilitating just and equitable market principles and inspiring the highest degree of confidence among investors in corporate loan assets. The LSTA promotes a fair, orderly, efficient and growing corporate loan market and provides leadership in advancing and balancing the interests of all market participants.

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