House passes updated HEROES Act with CDFI funding, SAFE Banking Act
The House voted Thursday night to pass an updated HEROES Act COVID-19 relief legislation. CUNA wrote to House leadership Wednesday noting areas it supports, specific concerns and additional suggestions.
“We appreciate the swift response that Congress and the administration have undertaken to address the economic consequences of the pandemic," the letter reads. "More needs to be done, and still more will nee d to be accomplished in the months and years ahead. As financial first responders, America’s credit unions stand willing and able to help consumers and small businesses during the crisis and into recovery.
CUNA supports the following provisions in the bill:
- An emergency appropriation of $1 billion for the Treasury’s Community Development Financial Institutions Fund;
- Exempting of Economic Impact Payments from garnishments, as well as the bill’s enhancements to the CARES Act Employee Retention Payroll Tax Credit;
- Inclusion of the SAFE Banking Act, which would offer protections to financial institutions serving legal cannabis-based businesses;
CUNA’s is concerned with:
- A blanket prohibition of certain debt collection actions, which CUNA believes could disrupt creditors’ ability to actively manage loan portfolios;
- Suspension of negative credit reporting, which CUNA believes could “undermine the usability of credit reports” and result in reduced credit access;
CUNA also called on Congress to include provisions extending Troubled Debt Restructuring and Central Liquidity Facility enhancements through 2021 and to give NCUA additional authority to adjust capital requirements for credit unions impacted by the crisis.