Following relentless ICBA advocacy on behalf of the nation's community banks, President Donald Trump signed into law bipartisan economic stimulus legislation responding to the coronavirus outbreak.
The Coronavirus Aid, Relief, and Economic Security Act includes several ICBA-advocated measures that will better enable community banks to provide needed credit in local communities.
Trump signed the bill into law Friday after it passed the House on a voice vote following a unanimous vote in the Senate earlier in the week.
ICBA President and CEO Rebeca Romero Rainey thanked community bankers for being on the front line helping local communities during the coronavirus pandemic. "While you have stood strong for your customers and communities, ICBA has been standing strong in Washington to shape and advance this critical legislation to support you during this uncertain time," she said.
The CARES Act:
- enhances the Small Business Administration’s 7(a) loan program,
- provides net-operating-loss tax relief,
- authorizes robust FDIC deposit insurance coverage for transaction accounts,
- delays implementation of the Current Expected Credit Losses accounting standard,
- ensures coronavirus-related loan modifications are not classified by regulators as troubled debt restructurings,
- reduces the Community Bank Leverage Ratio from 9 percent to 8 percent during the COVID-19 national emergency, and
- funds USDA Commodity Credit Corporation support for livestock and specialty crop producers.
ICBA offers a summary of key provisions in the law, including mortgage-forbearance measures, and is encouraging regulators to issue guidance as soon as possible to answer questions regarding the details.
ICBA will continue to provide information to community bankers about the new law as the details come into focus. Additional information and resources about the COVID-19 response are available on ICBA's Crisis Response and Preparedness Center.