Trade Groups Say IRS Coronavirus Payment Process is Confounding Credit Unions, Members

The Internal Revenue Service’s portal to provide information to consumers about their federal coronavirus Economic Impact Payments is providing inaccurate information to many financial institutions and their customers, creating confusion for everyone involved, trade groups said last week.

“The information provided by the portal is often inaccurate, causing confusion for recipients because it is not updated in a sufficiently timely manner, resulting in erroneous messages to recipients,” groups including the Credit Union National Association, the National Association of Federally-Insured Credit Unions, the American Bankers Association and the Independent Community Bankers of America, wrote in a letter to IRS Commissioner Charles Rettig.

Biden Signs PPP Extension Legislation

President Biden on Tuesday signed legislation that will extend the deadline for businesses to apply for Paycheck Protection Program loans from March 31 to May 31.

The legislation, H.R. 1799, also allows the Small Business Administration to continue to process loans until June 30. This will allow loans that are in the pipeline on May 31 to be processed.

Comments Mostly Support NCUA’s Risk-Based Net Worth Rule

National Credit Union Administration Chairman Todd Harper thinks the proposed rule is “half-baked” but credit union trade groups are endorsing a proposal to increase the threshold for credit unions to be defined as “complex.” The proposed rule states that any risk-based net worth requirement would only apply if a credit union has more than $500 million in assets at a quarter’s end. The definition impacts the effect of the Risk-Based Capital Rule that goes into effect on Jan. 1, 2022.

After Two-Month Hiatus, Credit Union Trade PACs Resume Political Giving

The Credit Union National Association and the National Association of Federally-Insured Credit Unions stopped making campaign contributions after the insurrection at the U.S. Capitol, but will now resume them. CUNA was the 12th largest contributor to the 147 Senators and Representatives who objected to the counting of the electoral votes for Joe Biden, according to the Center for Responsive Politics.

House Sponsors High on Marijuana Banking Passage

House supporters of marijuana banking legislation are feeling confident that their bill, named The SAFE Banking Act of 2021, will pass the House (as it did in the last session) and then a version of it, unlike last session, will be considered in the Senate. The bill would provide a safe harbor for credit unions and banks that provide services to cannabis-related businesses in states where marijuana is legal. Currently those businesses are forced to operate on a cash basis.