The Biden Administration has been studying the Paycheck Protection Program loan processes and has made some changes designed to smooth the process, cut down on fraud, and give the smallest businesses access to the loans. For two weeks beginning on Wednesday, PPP applications will be limited to businesses with fewer than 20 employees. Other changes have been made to the program too.
The Credit Union National Association and the National Association of Federally-Insured Credit Unions have been letting the Biden administration and legislators know the actions they believe will help credit unions help their members during the pandemic. These lists are extensive, but may be tough to achieve with an administration focused on tightening up financial regulations.
The Credit Union National Association again is urging Congress to include temporary coronavirus liability protection in any new economic stimulus legislation it considers.
Consumer Financial Protection Bureau Acting Director Dave Uejio has notified agency employees that the CFPB will be tightening up supervision and enforcement policies, starting with the Military Lending Act. He is preparing the agency for the arrival of Biden’s nominee for director, Rohit Chopra, who is awaiting confirmation by the Senate.
President Biden has issued a temporary moratorium on regulations until they can be reviewed by people in his administration. His Executive Order, signed the day of his inauguration, says that, with a few exceptions, until rules are approved by someone designated by him, agencies should not send rules to the Federal Register for publication. Rules that have been published but have not become effective should be delayed for 60 days.
Consumer Financial Protection Bureau Director Kathleen Kraninger resigned Wednesday, at the request of President Biden.
President-elect Biden has chosen Rohit Chopra to lead the Consumer Financial Protection Bureau. Chopra helped Sen. Elizabeth Warren (D-Mass.) organize the bureau, so it appears that the agency will be returning to a stricter regulatory stance.