PPP improvements, CARES Act relief extension needed
CARES Act provisions providing Troubled Debt Restructuring (TDR) and Central Liquidity Facility (CLF) relief will expire Dec. 31 and should be extended, CUNA wrote to the House Financial Services Committee Wednesday.
The CARES Act expanded the borrowing authority of NCUA’s CLF to 16 times the paid in capital (up from 12 times).
“We urge Congress to expand the CLF’s borrowing authority to 25 times the paid in capital, extend the expanded borrowing authority until December 31, 2021, and to make permanent the ability of corporate credit unions to act as agents for credit unions,” CUNA’s letter reads, adding that Congress should take steps to ensure the long-term viability of the CLF.
The CARES Act also exempts certain COVID-related loan modifications from TDR treatment.
“Credit unions want to help as many Americans as possible. Under the CARES Act, credit unions are required treat members with Federally backed loans in a certain way, and they have been doing that. But it’s critically important to extend that same accommodation to other borrowers who need it,” the letter reads. “We need consistency in how consumers are treated. Therefore, we urge Congress to extend the CARES Act’s temporary TDR relief for an additional year, until the end of 2021.”
CUNA also shared comments on the implementation of the Paycheck Protection Program, including: