ICBA released a summary of the ICBA-advocated provisions in the Senate-passed Coronavirus Aid, Relief, and Economic Security Act, which is expected to pass the House and be signed into law as soon as today.
Following relentless ICBA advocacy, the CARES Act includes several ICBA-advocated measures to help community banks support their communities. The bill would:
- enhance the Small Business Administration’s 7(a) loan program,
- advance net-operating-loss tax relief,
- increase the amount of interest expenses businesses may deduct on their tax returns,
- ensure robust FDIC deposit insurance coverage,
- delay implementation of the Current Expected Credit Losses accounting standard,
- provide temporary relief from troubled-debt-restructuring classifications,
- reduce the Community Bank Leverage Ratio from 9 percent to 8 percent during the COVID-19 emergency, and
- support livestock and specialty crop producers.
ICBA is encouraging regulators to issue guidance to answer open questions regarding the details of these provisions and will continue to keep community bankers informed of these developments.
Additional information and resources about the COVID-19 response are available on ICBA's Crisis Response and Preparedness Center.