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House committees review state of small biz economy, coronavirus response
The House Small Business Committee Thursday held a hearing to discuss the state of the small business economy amid the coronavirus pandemic. Ahead of the hearing, NAFCU shared how credit unions have stepped up to ensure small businesses in their communities are supported amid the pandemic, and reiterated how providing credit unions with relief from the arbitrary member business lending (MBL) cap would allow the industry to provide more assistance.
During the hearing, several witnesses discussed how the committee can be helpful to small businesses, specifically regarding improving the Small Business Administration’s (SBA) paycheck protection program (PPP) and economic injury disaster loan (EIDL) program.
The hearing also discussed the role of community development financial institutions (CDFIs) helping small businesses in their communities. Committee Ranking Member Blaine Luetkemeyer (R-MO) noted importance of the extension of the troubled debt restructuring (TDR) relief, which has allowed credit unions to work with their members amid the pandemic.
In addition, NAFCU monitored Thursday’s House Financial Services Committee hearing to review the response to the coronavirus pandemic where witnesses and committee members discussed how to ensure consumers have the resources and relief needed to recover from inflicted financial difficulties.
Ahead of the hearing, NAFCU highlighted ways in which credit unions have helped members impacted by the pandemic and offered suggested measures to be included in the next coronavirus relief package to support these efforts.
During the hearing, the committee discussed the pros and cons of providing additional economic impact payments (EIPs) to households and state and local governments and the benefits of using private entities for emergency loan programs, such as the PPP.
NAFCU will continue to work closely with the Biden administration, Congress, and regulators to seek tools that allow credit unions and their members to recover from the pandemic and thrive.