Access to Credit for Small Businesses Impacted by the COVID–19 Crisis Act of 2021

Bill: 117-hr-1471
Sponsor: full_name: Rep. Sherman, Brad [D-CA-30]
Introduced: 2021-03-01
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: 2021-03-01
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2021-03-01
action_desc: Introduced in House
text: <p><b>Access to Credit for Small Businesses Impacted by the COVID-19 Crisis Act of 2021</b></p> <p>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. </p>

tv_txt: I 117th CONGRESS 1st Session H. R. 1471 IN THE HOUSE OF REPRESENTATIVES March 1, 2021 Mr. Sherman (for himself and Mr. Fitzpatrick ) introduced the following bill; which was referred to the Committee on Financial Services A BILL 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.

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 . 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.