COVID-19 relief bill w/ CU provisions signed into law Posted by AVCU on 6:55 AM

The House passed and President Donald Trump has signed into law the latest coronavirus disease (COVID-19) relief bill Friday, one with several provisions for credit unions. CUNA/League advocacy helped ensure credit unions were included in several provisions that, through drafting oversight, had only included banks.

“This bill is vital to ensuring credit unions can continue to offer services to members as their needs evolve as the full effects of the COVID-19 pandemic continue to be felt,” said CUNA President/CEO Jim Nussle. “We thank the legislators for recognizing our concerns, and we will continue our engagement to ensure credit unions are a part of any forthcoming legislative solutions.”

Credit union provisions in the bill include language:

• 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.
• Including credit unions in a current expected credit loss (CECL) delay for those entities currently required to comply with CECL.