Latest Update on Stimulus Package and Government Spending

Capitol Hill building

The California and Nevada Credit Union Leagues have been working with our Congressional Delegation, as well as the Credit Union National Association (CUNA) and others, to identify the likelihood of a congressional spending deal that includes stimulus measures that impact both your credit union and your members. The below update is based on facts that we know as of this morning, verified through several Members of Congress and others.

The Leagues want to stress that no deal has been agreed to, no vote has been taken, and no actual text of legislative language has been produced. However, at this point a stimulus and spending deal does appear to be in the process. We want to provide as much advance notice for you to prepare for decisions your credit union will have to make.

Timing
The Leagues anticipate that a vote will take place no later than late Friday evening (or a continuing resolution will be needed) on a package of legislation that will include government funding and stimulus measures to avoid a government shutdown. Whether this is taken in two separate votes or one large package together, remains to be seen. The government runs out of funding at midnight on Friday night/Saturday morning.

Stimulus Package
As of this morning, congressional leaders appear to be coalescing around a package with a price tag of $900 billion.

It is believed to include: 1) stimulus checks in the $600 - $700 range (qualifications pending); 2) unemployment extension with a boost of $300 per week through sometime in March; 3) Paycheck Protection Program (PPP) funds in the neighborhood of $257 billion in new funding. The status of non-fiscal measures, such as extending several banking provisions of the CARES Act, at this time appear likely to be included. We stress “likely.” Length of the extension and any terms or conditions are still to be determined. We do know that senior banking committee officials on both sides of the aisle have expressed support for their inclusion. (A reminder: the League coordinated at letter from the Nevada House Delegation and engaged the California delegation to support a second bipartisan letter to build support for these measures in the House of Representatives).

Additional Terms
For PPP, we are working with our Congressional Delegation to establish some sort of timeline with the Small Business Administration and Treasury Department. Because this new tranche will allow a second round for small businesses, new policies and procedures will be expected from those agencies. Additionally, we anticipate some form of PPP forgiveness; however, details and requirements will depend on the final language.

The Leagues also expect additional funds for Community Development Financial Institutions and Minority Depository Institutions. Both will take some time to implement, and several congressional offices have committed to aiding us in identifying timing.

The Leagues will keep you posted on the details as they come together. We will be engaged through this whole process.

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