Rep. Brad Sherman (D-Calif.) on Friday introduced a bill that would exempt credit union loans made during the declared coronavirus crisis from the member business lending cap for one year after the end of the COVID-19 emergency declaration, according to CUNA.
The House is expected to return to session next week to work on the next phase of COVID-19 relief legislation.
“Businesses and communities around the country are facing economic hardships that haven’t been seen in generations, and this bill will help credit unions deploy much needed capital to those businesses,” CUNA President/CEO Jim Nussle said. “Credit unions have served as financial first responders since the onset of the pandemic and will be vital to the nation’s recovery efforts. This bill will bolster those efforts going forward.”
As many small businesses have been coping with the financial effects of the pandemic, credit unions have been extending access to capital, both in providing individualized support products and facilitating access to the Paycheck Protection Program.
Rep. Sherman’s legislation would allow credit unions to continue to support these Main Street employers well after the PPP has run its course, according to CUNA.
Co-sponsors of Sherman’s bill include Reps. Don Young (R-Alaska), Brian Fitzpatrick (R-Pa.), Maxine Waters (D-Calif.), Suzanne Bonamici (D-Ore.), Vicente Gonzalez (D-Texas), Eleanor Holmes Norton (D-D.C.), Joe Neguse (D-Colo.), J. Luis Correa (D-Calif.), Alan Lowenthal (D-Calif.), Jeff Van Drew (R-N.J.) and David Trone (D-Md.).