WASHINGTON–Both the House and Senate are back in session this week, with a new CU-supported bill having dropped, and two key issues of interest to credit unions on the hearing agenda.
Reps. Brad Sherman (D-CA) and Brian Fitzpatrick (R-PA) have introduced legislation that would provide an exemption from the credit union member business lending (MBL) cap for loans made to small businesses as they recover from the coronavirus national emergency.
The Access to Credit for Small Businesses Impacted by the COVID–19 Crisis Act of 2021 has support from the trade associations.
“NAFCU applauds Representatives Brad Sherman and Brian Fitzpatrick for introducing legislation that will help our nation’s small businesses and local communities recover from the coronavirus pandemic,” said NAFCU President and CEO Dan Berger. “Credit unions have long sought to provide essential loans to small businesses – including many owned by minority populations – more so than their counterparts in the banking industry. This bill will help ensure credit unions are able to provide small businesses with the funding they need to keep their doors open, pay their employees, and continue to provide important services in their communities. NAFCU strongly supports this bill, and we will boldly advocate for its passage.”
CUNA CEO Jim Nussle released a statement saying, “Thanks to Reps. Sherman and Fitzpatrick for their bipartisan introducing this to ensure that all available business credit is deployable during and after the pandemic so small businesses can get back to business and Main Street communities can recover quickly. We look forward to engaging further with Congress to advance this bipartisan legislation.”
The Access to Credit for Small Businesses Impacted by the COVID–19 Crisis Act of 2021 is designed to help ensure credit unions have the flexibility necessary to be able to provide their member businesses with the access to credit they need during the pandemic and throughout the economic recovery.
Hearings Scheduled
Meanwhile, the hearing that will be getting the most attention from credit unions will take place today when Senate Banking Committee convenes for a hearing on the nomination of Rohit Chopra to lead the Consumer Financial Protection Bureau.
More Aggressive Posture
Chopra has already indicated the CFPB will be taking a more aggressive posture toward regulation, news largely unwelcomed by credit unions, especially after the Trump administration largely dialed back much of the CFPB’s oversight.
The same hearing will also include the nomination of GaryGensler to be a member of the Securities and Exchange Commission. The hearing will be webcast live at http://www.banking.senate.gov.
CUNA Sends Letter
In advance of the hearing, CUNA sent a letter to the Senate saying it continues to have “significant concerns about the untenability of the Bureau’s single Director structure. Stability of leadership and clarity of mission are critical features of any efficient and effective regulatory body. The CFPB – as it stands – has neither. There may be no better sign of that instability than the fact that Congress is now considering a new Director nomination for the third time in nine years despite the role’s statutory term of five-years. For that reason and others, we believe the best path forward for the CFPB is for Congress to pass legislation establishing a multi-person, bipartisan commission to lead the Bureau, as was originally proposed by the Obama administration in 2009.
“Now is a particularly critical time for Congress to act on commission legislation. In June 2020, the U.S. Supreme Court issued a landmark opinion in the Seila Law case striking down the ‘for-cause’ removal provision in the Consumer Protection Act,” CUNA continued. The practical effect of the Court’s decision was to render the Director removable by the President for any reason…”
The full CUNA letter can be found here.
Wall Street Vs. Workers
Separately, Ryan Donovan, chief advocacy officer with CUNA, said the trade group will also be paying attention to a Thursday hearing before the Senate Banking Committee titled, “Wall Street vs. Workers: How the Financial System Hurts Workers and Widens the Racial Wealth Gap.”