The Senate late last week passed legislation that would protect federal pandemic economic stimulus payments to individuals from garnishment—an issue that may gain importance now that Congress is considering another round of payments.
Saying that the economic impact of the coronavirus pandemic crisis has hit low-income and minority neighborhoods the hardest, Senate Democrats Tuesday proposed using Community Development Financial Institutions to funnel billions of dollars into those areas.
All 45 Democratic senators are pushing the Trump Administration to develop a streamlined process for the smallest businesses to obtain loan forgiveness under the Paycheck Protection Program.
The 45 senators, in a letter to Treasury Secretary Steven Mnuchin and Small Business Administration Administrator Jovita Carranza, did not go as far as credit union trade groups, which have called for automatic loan forgiveness for certain borrowers.
In what could be a blow to credit unions, the Senate Armed Services Committee on Wednesday approved a 2021 defense authorization bill that would require the Pentagon to provide equal treatment for banks and credit unions on military installations.
The Paycheck Protection Program continues to be plagued by a lack of transparency and unclear rules, Democrats and credit unions said this week.
The Senate passed legislation Wednesday that would allow businesses to use a larger percentage of Paycheck Protection Program loans for non-payroll purposes.
A bipartisan group of senators has introduced legislation that would prohibit the garnishment of economic impact payments that individuals received from the federal government.
Amid some opposition from a key Democrat, NCUA Chairman Rodney Hood told the Senate Banking Committee Tuesday that Congress should decrease capital standards for credit unions, as they respond to economic problems caused by the coronavirus crisis.
Hood said that he would like Congress to authorize a temporary reduction in minimum capital requirements—reducing the level at which credit unions are considered well capitalized from a net-worth ratio of 7% to 6%. He said that the level for “adequately capitalized” credit unions should be cut from 6% to 5%.
Postal banking is back.
As policymakers battle over how to deal with the mounting losses facing the United States Postal Service, supporters of a plan to allow post offices to provide basic financial services are renewing their arguments that postal banking could help save the system.
NCUA Chairman Rodney Hood will join other financial regulators when they testify before the Senate Banking Committee on May 12.