Senators Tell NAFCU Congressional Caucus More Pandemic Help Is Needed
Senators don't know how or when an agreement will be reached and warn CUs,"The storm is not over."
Senators from both sides of the partisan divide said Monday that while Congress has provided billions of dollars to small businesses devastated by the coronavirus crisis, additional assistance is needed.
But in presentations to the NAFCU virtual Congressional Caucus, the senators made it clear that there is little agreement on the details of that assistance.
“We have a lot more to do,” Senate Minority Leader Chuck Schumer (D-N.Y.) told those watching the virtual conference. He added that the House has passed comprehensive legislation to provide assistance to state and local governments and additional lending under the Paycheck Protection Program.
But the legislation, written by the Democratic majority in the House, remains stalled in the Senate. “Unfortunately, the Republican majority has kept the Senate on pause,” he added.
However, Senate Banking Chairman Mike Crapo (R-Id.) said the Senate could have passed a more limited bill last week, but the legislation did not receive sufficient support to advance it to the floor.
He said that he hopes Congress will reach a bipartisan agreement on some provisions that will help financial institutions weather the regulatory headaches caused by quickly enacted stimulus legislation.
Crapo said he believes there is bipartisan support for a streamlined Paycheck Protection Program loan forgiveness process and for proposals to make it clear that lenders are not held responsible if a borrower provides false information on their loan documents.
He said while it appears the economy is bouncing back, “The storm is not over.”
He added, “More may be required of you before this crisis is over.”
Senate Banking ranking Democrat Sherrod Brown said credit unions have responded well to the coronavirus crisis.
He emphasized the role that community financial institutions played in helping small businesses in their communities. “People are seeing how important it is to have local financial institutions,” he said.
He criticized the Trump Administration for focusing on Wall Street, rather than local communities. “Too often the administration only looks out for the big guys,” he said. “It’s always about helping Wall Street.”
However, Brown criticized some unnamed credit unions for garnishing members’ economic stimulus funds and for imposing overdraft fees during the economic crisis.