Removing Barriers Blog

COVID-19: Phase 3 Passes Senate & House
Posted March 27, 2020 by CUNA Advocacy

Through direct CUNA and League advocacy, credit unions will be able to better serve their members affected by the latest coronavirus disease (COVID-19) relief legislation. The bill, passed by the Senate late Wednesday and then the House on Friday afternoon, 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.

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 National Credit Union Administration’s (NCUA) Central Liquidity Facility (CLF), 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 at www.americascreditunions.org.