CA Legislature: CUs Should be Ready to Spring Into Action in 2021

Sacramento capitol building

California state lawmakers have started returning to the state capitol. After an extended recess due to spiking COVID-19 cases, the California State Legislature must move quickly to address issues facing residents and households.

Gov. Gavin Newsom released his budget recently and has called on the legislature to quickly approve $2 billion for schools to reopen, $2.4 billion in direct aid for low income families, and $650 million for small businesses that have been directly impacted by the pandemic.

The governor has also indicated he wants $300 million to be pushed out to help with the COVID-19 vaccine rollout as well. Despite the surprise budget surplus recently announced, the legislature and the governor have their work cut out for them in 2021.

Credit unions should be ready to spring into action at any point over these next nine months as the California Credit Union League keeps the industry's leaders informed of bills that could impact credit unions.

Commercial Loan Relief Survey
The League has received a request from state lawmakers to help inform them as they begin crafting targeted legislation on financial relief to business sectors that need it the most, given California’s slow economic recovery.

To that end, the League has asked a handful of California credit unions that are involved in commercial business loans (commercial mortgages) to fill out a new survey on number of loans, outstanding dollar amounts, forbearance details, and types of industries receiving assistance.

This data collection effort will help quantify the size, nature, and industries within credit unions’ commercial mortgage lending relief efforts so appropriate state legislative solutions can be considered. Credit unions' response is MORE IMPORTANT than ever as California’s 2021 legislative year kicks off.

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