WASHINGTON—House Financial Services Committee Member Barry Loudermilk (R-GA) has introduced legislation to require federal banking agencies – including the NCUA – to exclude Paycheck Protection Program (PPP) loans from certain asset calculations.
The bill, H.R. 8675, would apply to financial institutions with less than $15 billion in assets.
Last month, Loudermilk and other Republican members of the House Financial Services Committee sent a letter to the federal banking regulators flagging the rise of assets on lenders' balance sheets resulting from the PPP and other pandemic-related lending efforts. Senate Banking Committee Chairman Mike Crapo (R-ID) sent a similar letter.
“Of note, the flexibility provided to the NCUA in the CARES Act to enhance credit unions' use of the Central Liquidity Facility (CLF) has supported access to liquidity,” NAFCU said in its analysis. “NAFCU continues to call on Congress to extend this relief measure and is supporting a sign-on letter being circulated by Rep. Danny Davis (D-IL) urging House leadership to include extensions of the CLF and troubled debt restructuring (TDR) provisions in the CARES Act until the end of 2021 in the next relief package.”