Small Business-Community Banker COVID-19 Relief Act of 2020

To provide temporary relief from troubled debt restructuring disclosures, to delay the implementation of certain accounting standards for depository institutions substantially affected by COVID–19, and for other purposes. 1. Short title This Act may be cited as the Small Business-Community Banker COVID–19 Relief Act of 2020 2. Sense of Congress relating to community banker-small business partnership enhancement It is the sense of Congress that a depository institution may delay any requirements for a payment on a loan made to a small business concern substantially affected by COVID–19 for the period during which such concern is unable to make any payment due. 3. Temporary relief from troubled debt restructuring disclosures Notwithstanding any other provision of law, an insured depository institution that modifies a loan to a small business concern substantially affected by COVID–19 in a troubled debt restructuring on or after March 13, 2020, shall not be required to comply with the identification and disclosures standards issued by the Financial Accounting Standards Board Accounting Standards Codification Subtopic 310–40 ( Receivables—Troubled Debt Re­struc­tur­ings by Creditors 4. Delayed implementation for CECL No Federal agency, including any of the Federal financial regulators, may require a depository institution that has been substantially affected by COVID–19 to comply with CECL for any purpose. 5. Definitions In this Act: (1) CECL The term CECL Accounting Standards Update 2016–13, Financial Instruments—Credit Losses (Topic 326) Accounting Standards Update 2018–19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses (2) Depository institution The term depository institution (3) Federal Deposit Insurance Act definitions The terms appropriate Federal banking agency insured depository institution (4) Federal financial regulators The term Federal financial regulators (A) the Department of the Treasury; (B) the Board of Governors of the Federal Reserve System; (C) the Bureau of Consumer Financial Protection; (D) the Office of the Comptroller of the Currency; (E) the Commodity Futures Trading Commission; (F) the Federal Deposit Insurance Corporation; (G) the Federal Housing Finance Agency; (H) the National Credit Union Administration; and (I) the Securities and Exchange Commission. (5) Small business concern The term small business concern (6) Substantially affected The term substantially affected by COVID–19 (A) Supply chain disruptions, including changes in— (i) quantity and lead time, including the number of shipments of components and delays in shipments; (ii) quality, including shortages in supply for quality control reasons; and (iii) technology, including a compromised payment network. (B) Staffing challenges. (C) Decrease in sales or customers. (D) Shuttered businesses. (E) Negative effects on revenue, earnings, income, debt, or equity. (F) Any additional negative effect identified by any Federal financial regulator.

Summary: Small Business-Community Banker COVID-19 Relief Act of 2020 This bill allows a depository institution to delay compliance with specified accounting standards when modifying a loan for a small business affected by COVID-19 (i.e., coronavirus disease 2019) in a troubled debt restructuring. A depository institution is not required to comply with certain accounting standards applicable to credit losses (i.e., current expected credit losses standards, also known as CECL standards) if it has been substantially affected by COVID-19.