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NAFCU’s Thaler reiterates CU needs ahead of SBC hearing
Ahead of Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell's testimony before the Senate Banking Committee today, NAFCU Vice President of Legislative Affairs Brad Thaler highlighted how credit unions have stepped up to help their communities and called on Congress to make changes to the Central Liquidity Facility (CLF) made by the Consolidated Appropriations Act permanent.
In the letter, Thaler also reiterated opposition to a proposed IRS reporting requirement which would require financial institutions like credit unions to send savings and checking account information to the IRS for accounts that exceed the $10,000 or more in deposits or withdrawals annually. The provision was not included in the House-passed version of the Build Back Better Act (BBBA); however, reports note that several Senators and the Treasury Department are in negotiations to potentially modify the provision and include it in the final legislation.
In addition, Thaler detailed faults present in the proposal to grant the SBA with direct lending authority that is included in the House version of the BBBA.
"Although provisions in the BBBA allow for the continuation of small business lending through public-private partnerships with credit unions and other third-party lenders similar to what was done under the PPP, NAFCU has concerns that a new SBA direct loan program will lead to unintended consequences," wrote Thaler.
NAFCU has been steadfast in its advocacy against this provision and will remains engaged with the SBA and Congressional leaders to voice credit union concerns around the proposal.
Relatedly, Thaler reiterated opposition to a proposed IRS reporting requirement which would require financial institutions like credit unions to send savings and checking account information to the IRS for accounts that exceed the $10,000 or more in deposits or withdrawals annually. The provision was not included in the House-passed BBBA; however, several Senators and the Treasury Department are in negotiations to modify the provision and include it in the final legislation.
During the hearing, Yellen and Powell will provide an update on implementation of coronavirus relief and discuss the Fed's monetary policy. The hearing, scheduled for 10:00 a.m., will be livestreamed on the committee's website.
The association will continue to work with Congress to ensure credit unions have the tools needed to provide support for their members amid the pandemic.