Title: Access to Credit for Small Businesses Impacted by the COVID–19 Crisis Act of 2020
Policy area: Finance and Financial Sector

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.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3676 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 3676

 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.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 11, 2020

   Mr. Wyden introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 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.

    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 2020''.

SEC. 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 note) is amended by striking ``December 
        31, 2020'' and inserting ``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)) is amended 
        by striking ``December 31, 2020'' and inserting ``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)) is amended--
                    (A) in clause (iv), by striking ``or'' at the end;
                    (B) in clause (v), by striking the period and 
                inserting ``; or''; and
                    (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.
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