Removing Barriers Blog

COVID-19: Senate passes Phase 3 stimulus legislation
Posted March 26, 2020 by CUNA Advocacy

Late last night, the Senate passed phase 3 of the stimulus legislation after many hours and days of negotiations.

CUNA and Leagues advocated on several issues in this bill. Credit union provisions in the bill include language on:  

  • 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. 

This is a large, comprehensive bill. As with any piece of legislation this size, compromises have been made and, frankly, we expect it includes provisions that might cause us concern. We continue to review the final text to identify other provisions that may impact credit unions.