Access to Credit for Small Businesses Impacted by the COVID–19 Crisis Act of 2020

To extend certain temporary credit union provisions enacted under the CARES Act, to include an exception for disaster area member business loans made by insured credit unions, and for other purposes. 1. Short title This Act may be cited as the Access to Credit for Small Businesses Impacted by the COVID–19 Crisis Act of 2020 2. Temporary credit union provisions (a) Temporary credit union provisions (1) Extension of sunset Section 4016(b)(2) of the CARES Act ( 12 U.S.C. 1795a December 31, 2020 December 31, 2021 (2) Conforming amendment Section 307(a)(4)(A) of the Federal Credit Union Act ( 12 U.S.C. 1795f(a)(4)(A) December 31, 2020 December 31, 2021 (b) Exception for disaster area member business loans made by insured credit unions (1) In general Section 107A(c)(1)(B) of the Federal Credit Union Act ( 12 U.S.C. 1757a(c)(1)(B) (A) in clause (iv), by striking or (B) in clause (v), by striking the period and inserting ; or (C) by adding at the end the following: (vi) made by an insured credit union that has received a composite rating of either 1 or 2 under the Uniform Financial Institutions Rating System or an equivalent rating under a comparable rating system, the proceeds of which will be used to aid in the recovery from the COVID–19 pandemic, if— (I) the extension of credit is being made during the period beginning on the date of enactment of this clause and ending 1 year after the termination date of the emergency declared by the President on March 13, 2020, under section 501 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act relating to the Coronavirus Disease 2019 (COVID–19) pandemic); and (II) the extension of credit does not threaten the safety and soundness of the insured credit union. . (2) Rulemaking Not later than the end of the 30-day period beginning on the date of the enactment of this Act, the National Credit Union Administration Board shall issue an interim final rule to define— (A) when an extension of credit aids in the recovery from the COVID–19 pandemic for purposes of section 107A(c)(1)(B)(vi) of the Federal Credit Union Act (as added by paragraph (1)); and (B) when such extension of credit does not threaten the safety and soundness of the applicable insured credit union.

Summary: Access to Credit for Small Businesses Impacted by the COVID-19 Crisis Act of 2020 This bill eases certain restrictions on credit unions regarding liquidity and lending. The bill extends waivers applicable to National Credit Union Administration Central Liquidity Facility membership and credit-extension restrictions through December 31, 2021. These waivers currently expire on December 31, 2020. (The National Credit Union Administration Central Liquidity Facility serves as a lender to credit unions that are experiencing certain liquidity shortfalls.) The bill also temporarily provides credit unions with an exception to limits on outstanding member business loans. Specifically, a loan does not count towards this limit if (1) it is used for recovery from the COVID-19 (i.e., coronavirus disease 2019) emergency, (2) it is made by an insured credit union that has received a specified soundness rating, (3) it is made during a specified time period, and (4) it does not threaten the safety and soundness of the insured credit union.