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

Bill: 116-hr-6550
Sponsor: full_name: Rep. Sherman, Brad [D-CA-30]
Introduced: 2020-04-17
Policy area: Finance and Financial Sector
Subjects: Administrative law and regulatory procedures

Bank accounts, deposits, capital

Cardiovascular and respiratory health

Credit and credit markets

Disaster relief and insurance

Emergency medical services and trauma care

Infectious and parasitic diseases

National Credit Union Administration

Small business
Latest action: action_date: 2020-04-17
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2020-04-17
action_desc: Introduced in House
text: <p><b>Access to Credit for Small Businesses Impacted by the COVID-19 Crisis Act of 2020 </b></p> <p>This bill temporarily provides credit unions with an exception to limits on outstanding member business loans. Specifically, for a three-year period, loans used for recovery from the COVID-19 (i.e., coronavirus disease 2019) emergency do not count towards this limit. </p>

tv_txt: I 116th CONGRESS 2d Session H. R. 6550 IN THE HOUSE OF REPRESENTATIVES April 17, 2020 Mr. Sherman (for himself, Mr. Young , Ms. Bonamici , Mr. Fitzpatrick , Ms. Norton , Mrs. Napolitano , Mr. Gonzalez of Texas , Mr. Cook , Mrs. Hayes , Ms. Finkenauer , Ms. Brownley of California , Mr. Huffman , Mr. Pascrell , Mrs. Demings , Mr. Garamendi , Mr. LaMalfa , and Mr. Van Drew ) introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Federal Credit Union Act to provide an exception from the member business loan cap for loans made to aid in the recovery from the COVID–19 emergency.

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. Exception for disaster area loans (a) In general Section 107A(b) of the Federal Credit Union Act ( 12 U.S.C. 1757a(b) ) is amended— (1) in paragraph (1), by striking or at the end; (2) in paragraph (2), by striking the period and inserting ; or ; and (3) by adding at the end the following: (3) a member business loan, the proceeds of which will be used to aid in the recovery from the COVID–19 emergency, if— (A) the extension of credit is being made before the end of the 3-year period beginning on March 13, 2020; and (B) the extension of credit does not seriously 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 regulations to define— (1) when an extension of credit aids in the recovery from the COVID–19 emergency for purposes of section 107A(b)(3) of the Federal Credit Union Act ( 12 U.S.C. 1757a(b)(3) ); and (2) when such extension of credit does not seriously threaten the safety and soundness of the applicable insured credit union.