Access to Credit for Small Businesses Impacted by the COVID–19 Crisis Act of 2021
Bill: H.R.1471 | Sponsor: Rep. Sherman, Brad (D-CA)
Policy area: Finance and Financial Sector

Summary:
Access to Credit for Small Businesses Impacted by the COVID-19 Crisis Act of 2021
This bill 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.

To amend the Federal Credit Union Act to include an exception for 
disaster area member business loans made by insured credit unions, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Access to Credit for Small 
Businesses Impacted by the COVID-19 Crisis Act of 2021''.

SEC. 2. EXCEPTION FOR DISASTER AREA MEMBER BUSINESS LOANS MADE BY 
              INSURED CREDIT UNIONS.

    (a) In General.--Section 107A(c)(1)(B) of the Federal Credit Union 
Act (12 U.S.C. 1757a(c)(1)(B)) is amended--
            (1) in clause (iv), by striking ``or'' at the end;
            (2) in clause (v), by striking the period and inserting ``; 
        or''; and
            (3) 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.''.
    (b) 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--
            (1) 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
            (2) when such extension of credit does not threaten the 
        safety and soundness of the applicable insured credit union.
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