Coalition, Including Credit Union Trade Groups, Pushing for Easy PPP Loan Forgiveness Bill

A coalition of trade groups, including the Credit Union National Association and the National Association of Federally-Insured Credit Unions, is pushing Congress to pass legislation that would allow businesses receiving loans of $150,000 or less from the Paycheck Protection Program to have their loans forgiven by submitting a one-page form. S. 4117, introduced by Sen. Kevin Cramer (R-N.D.) and a bipartisan group of Senate Banking Committee members, also would hold lenders harmless if a borrower’s one-page form contains falsehoods. “This bipartisan legislation would ensure our nation’s small business owners can focus their time, energy, and resources back into their business

Hood Asks Congress to Boost Member Business Lending Cap and Decrease Capital Requirements

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%.