COVID-19 Relief Bill Includes Provisions to Benefit Credit Union Members
FOR IMMEDIATE RELEASE
March 25, 2020
The Senate today will vote on its Phase III coronavirus disease (COVID-19) stimulus package, supported by the Credit Union National Association (CUNA) and its League partners. The bill was amended to include credit unions in several provisions that, through drafting oversights, had previously only included banks and other lenders in provisions meant to support and protect consumer finances.
“The credit union priorities addressed in this bill are a direct result of tireless advocacy over the last few days and weeks on behalf of CUNA and the Leagues, and we look forward to continued engagement demonstrating how credit unions continue to be there for their members and communities,” said CUNA President/CEO Jim Nussle. “The concerns addressed in this bill will help enhance consumer access to safe and affordable financial services through a local credit union.”
Provisions in the bill important to credit unions include:
- Making credit unions eligible to participate in the paycheck protection program, which would allow for 100% federally guaranteed loans to small businesses that maintain their payroll;
- Reestablishing the Transaction Account Guarantee Program, in which the government guarantees certain noninterest-bearing transaction accounts;
- Including credit unions in troubled debt restructuring, allowing credit unions to further modify existing loans;
- Expanding NCUA’s Central Liquidity Facility, which serves as a liquidity lender to credit unions experiencing unusual or unexpected liquidity shortfalls; and
- Including credit unions in a current expected credit loss (CECL) delay for those entities currently required to comply with CECL.
As the legislative and executive policy responses to the COVID-19 crisis continue to take shape, CUNA and the Leagues are engaging lawmakers to support policies that enable and enhance credit unions’ service to their communities during the COVID-19 crisis. A collection of these efforts can be found in the COVID-19 Response Center.
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 115 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.