WASHINGTON—Discussions continued over the weekend between Administration and congressional representatives about a so-called phase IV relief package, with the credit union trade associations urging specific types of support.
The talks were taking place at the same time a Friday jobs report indicated the economic recovery from the coronavirus pandemic may be running out of steam. According to the Bureau of Labor Statistics, the economy added 661,000 jobs in September, with the unemployment rate stood at 7.9%.
Late last week the House voted to pass an updated HEROES Act COVID-19 relief legislation, with CUNA writing to House leadership offering its input and suggestions. The House bill, however, is likely to face tough sledding in the Senate.
“We appreciate the swift response that Congress and the administration have undertaken to address the economic consequences of the pandemic," the letter reads. "More needs to be done, and still more will need to be accomplished in the months and years ahead. As financial first responders, America’s credit unions stand willing and able to help consumers and small businesses during the crisis and into recovery.”
The letter calls for inclusion of House and Senate bill language that would provide for the simple forgiveness of Paycheck Protection Program (PPP) loans under $150,000.
Provisions Supported
CUNA said it supports the following provisions in the bill:
- An emergency appropriation of $1 billion for the Treasury’s Community Development Financial Institutions Fund
- Exempting of Economic Impact Payments from garnishments, as well as the bill’s enhancements to the CARES Act Employee Retention Payroll Tax Credit
- Inclusion of the SAFE Banking Act, which would offer protections to financial institutions serving legal cannabis-based businesses
Concerns Expressed
CUNA said it is concerned with:
- A blanket prohibition of certain debt collection actions, which CUNA said it believes could disrupt creditors’ ability to actively manage loan portfolios
- Suspension of negative credit reporting, which CUNA said it believes could “undermine the usability of credit reports” and result in reduced credit access
CUNA also called on Congress to include provisions extending Troubled Debt Restructuring and Central Liquidity Facility enhancements through 2021 and to give NCUA additional authority to adjust capital requirements for credit unions impacted by the crisis.