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The House is expected to return to session this week as lawmakers continue to work on details of a Phase 4 coronavirus relief package – dubbed CARES 2 – to provide more support for consumers, workers, and small businesses. House Speaker Nancy Pelosi, D-Calif., is expected to unveil House Democrats' proposal this week. Among the issues NAFCU is pushing hard to get included in the package is relief for credit unions under the arbitrary member business lending (MBL) cap.

In addition, NCUA Chairman Rodney Hood is set to testify before the Senate Banking Committee tomorrow as senators discuss financial regulators' efforts to supervise and provide relief to financial institutions amid the coronavirus pandemic. The House Financial Services Committee also announced it will hold a virtual roundtable Wednesday with the financial regulators. 

NAFCU is working closely with the NCUA to secure relief and resources for the industry. The association has recently met with Hood and NCUA Board Members Todd Harper and J. Mark McWatters to discuss various issues, including the Small Business Administration's (SBA) paycheck protection program (PPP), examination flexibility, capital relief, the current expected credit loss (CECL) standard, MBL reforms, and funding for the Community Development Financial Institutions (CDFI) funds and Community Development Revolving Loan Fund (CDRLF).

Amid the pandemic, NAFCU has continued to work closely with Congress – in conversations and letters –  to make legislative changes that allow the NCUA to grant greater flexibility to credit unions as it relates to MBL, capital, CECL, the NCUA's Central Liquidity Facility (CLF), forbearances, loan maturity limits, underserved communities, and more. Hood and Harper have also sent letters to lawmakers outlining their support for various legislative changes.

While details of the next coronavirus relief package have yet to be released, it could include changes to the PPP to allow small businesses to take greater advantage of loans, funding for state and local governments, protections for workers, more stimulus payments for individuals and families, renter and homeowner assistance, and more funding for programs that support low-income communities.

Friday, Rep. Brad Sherman, D-Calif., introduced a revised version of his MBL relief bill in an effort to get it included in the next coronavirus relief package. The revised bill would allow credit unions with CAMEL rating of 1 or 2 to exempt from their MBL cap loans made within the year from when the national emergency that was declared on March 13, 2020 expires to small businesses to aid in their recovery of the coronavirus pandemic. Ten other lawmakers representing both parties signed on as cosponsors, including House Financial Services Committee Chairwoman Maxine Waters, D-Calif.

NAFCU will continue its direct outreach and advocacy with lawmakers to ensure credit union concerns are addressed in the final package. Related to small business support, a Roll Call article last week highlighted the association's call for relief under the MBL cap and more set asides in additional PPP funding that allow smaller financial institutions, such as credit unions, to provide loans to smaller businesses in their communities.

Also happening this week:

• NAFCU's Regulatory Committee meets tomorrow;
• today, NAFCU is offering a webinar focused on small dollar lending and payday alternative loans; and
• tomorrow, NAFCU is offering a webinar on preventing, detecting, and responding to identity theft.

Stay tuned to NAFCU Today for the latest regulatory and legislative developments. Access the association's coronavirus resources here.