House passes latest phase of COVID-19 relief legislation Posted by AVCU on 8:07 AM

The House passed the HEROES Act 208-199 Friday night, the latest proposal to provide relief from the coronavirus disease (COVID-19) pandemic. CUNA supports several provisions in the bill and has concerns with others.

“House passage of the HEROES Act starts a process for a new round of recovery legislation intended to help consumers, small businesses and the economy in general weather and rebuild from the crisis,” said CUNA President/CEO Jim Nussle. “We were happy to see a number of the provisions that will help credit unions remain in a position to serve their members and communities, but we were disappointed that the legislation includes several provisions that would actually make it more difficult for consumers and small businesses to access safe and affordable financial services.”

CUNA and Leagues will continue their engagement as the Senate puts together its package, with a priority to include additional beneficial policy proposals to help small businesses and communities not included in the House legislation.

“This is the first step in the process, not the last word,” Nussle said.

Highlights of the bill include:

• A $1 billion appropriation for the Community Development Financial Institutions (CDFI) Fund, which CUNA has called for;
• CUNA-supported clarification to previous COVID-19 relief legislation, including enhancements to the Employee Retention Payroll Tax Credit and making clear that federal credit unions are eligible to participate in this credit as well as in a previous bill’s paid sick leave and family leave payroll tax credits;
• Two new payroll tax credits in the legislation, one to provide relief for businesses and fixed costs, one to help with employee benefit expenses, both of which are supported by CUNA; and
• Inclusion the of the text of the Secure and Fair Enforcement (SAFE) Act, which would offer protections to financial institutions serving legal, cannabis-based businesses.

The Senate is expected to draft its own COVID-19 relief legislation in the coming weeks, which would require the two chambers to come together on a compromise bill once it passes.

CUNA is strongly advocating for member business lending relief to be included in the next phase of relief legislation. House and Senate bills exempting business loans from the cap for one year after the pandemic have been announced,

NCUA Chairman Rodney Hood has also expressed his support for raising the cap to 20% of assets (up from the current 12.25%) in letters and testimony to the Senate Banking Committee.