WASHINGTON—Panelists before the Senate Banking Committee earlier this week offered their views on whether the CARES Act has helped to stabilize the economy amid the coronavirus pandemic, as well as their thoughts on what more is needed to ensure consumers, small businesses, and communities can recover effectively.
The hearing featured representatives from the U.S. Chamber's Center for Capital Markets Competitiveness, American Action Forum, and Economic Policy Institute as senators explored implementation of Title IV of the CARES Act.
Ahead of the hearing, NAFCU Vice President of Legislative Affairs Brad Thaler outlined several provisions of the CARES Act that NAFCU and credit unions would like to see additional efforts on, including parity with banks as it relates to capital flexibility, permanence of changes to the Central Liquidity Facility (CLF), relief for mortgage servicers as forbearance requests increase, and more.
During the hearing, lawmakers and panelists noted the stress forbearances have put on the mortgage market.
Other Discussion Points
In addition, the discussion covered the Small Business Administration's paycheck protection program (PPP) and how it has supported small businesses, though some noted more needs to be done for mid-sized businesses.
The importance of the community development financial institutions (CDFIs) in supporting communities and small businesses was also raised, including support for additional CDFI funding and future set asides specifically for CDFIs to lend under the PPP. A House Financial Services subcommittee is set to hold a hearing today on CDFIs and minority depository institutions.