What the Economic Stimulus Package Means for Credit Unions

The Senate took action late last night, passing the $2 trillion economic stimulus bill that now heads to the House for approval, and includes key provisions giving credit unions parity with banks.

The Association has been working with Senators Ben Cardin and Chris Van Hollen to ensure credit unions have the ability to help members impacted by COVID-19. Senator Van Hollen joined us earlier this week for a virtual town hall where he spoke directly with credit unions and responded to questions submitted by participants.  Here are provisions in the Coronavirus Aid, Relief and Economic Security Act (CARES Act, S.3548) that include credit unions:

• Including credit unions in a current expected credit loss (CECL) delay for those entities currently required to comply with CECL.
• Expanding NCUA's Central Liquidity Facility, which serves as a liquidity lender to credit unions experiencing unusual or unexpected liquidity shortfalls. 
• Making credit unions eligible to participate in the paycheck protection program, which would allow for 100% federally guaranteed loans to small businesses that maintain their payroll. (click here for details on qualifying and requirements)
• Reestablishing the Transaction Account Guarantee Program, in which the government guarantees certain noninterest-bearing transaction accounts.
• Including credit unions in troubled debt restructuring, allowing credit unions to further modify existing loans.