ALEXANDRIA, Va. (March 27, 2020) – National Credit Union Administration Chairman Rodney E. Hood issued the following statement today after the Coronavirus Aid, Relief and Economic Security Act was signed into law by President Donald J. Trump:
“The Coronavirus Aid, Relief and Economic Security Act provides vital economic support and regulatory relief, and will ensure that credit unions play a critical role in the economic recovery following the coronavirus outbreak.
“Most importantly, the act provides the NCUA Board with the power to expand access to and increase the borrowing authority for the Central Liquidity Facility. This will enhance its role as a liquidity backstop for the credit union system.
“Furthermore, the act allows credit unions to provide guaranteed loans to businesses and self-employed individuals through the U.S. Small Business Administration’s paycheck protection program. This will permit credit unions to assist members with payroll, benefits, and other eligible expenses.
“The act provides the NCUA Board with the ability to increase share insurance coverage for noninterest-bearing transaction accounts. I look forward to working with my fellow board members to provide additional coverage for credit union members with applicable accounts that have balances above the current limit of $250,000.
“The act offers relief from accounting requirements and impairments resulting from loan modifications for borrowers affected by the coronavirus pandemic. I am also pleased that Congress provided temporary relief from the implementation of the Financial Accounting Standards Board’s current expected credit losses methodology.”