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The NCUA issued a new Letter to Credit Unions Monday providing an update on agent members of the Central Liquidity Facility (CLF), as allowed by the CARES Act. All 11 corporate credit unions have joined the CLF as agent members, increasing the borrowing capacity of the CLF and enhancing the amount of liquidity available to small- and medium-sized credit unions.

"As agent members, the corporate credit unions have purchased the CLF capital stock for their member credit unions with assets less than $250 million," said NCUA Chairman Rodney Hood in the letter. "Therefore, all credit unions with assets less than $250 million that are members of a corporate credit union (covered credit unions) are now eligible to apply for a loan from the CLF. With this action, the corporate credit unions have extended CLF coverage to more than 3,700 credit unions and increased the CLF’s borrowing capacity by over $13 billion."

Hood explained that credit unions covered by these CLF agent members "should work directly with your corporate credit union to request a CLF loan. Covered credit unions do not need to contact the CLF." He also provided additional information on how to join the facility if a credit union is not covered by an agent member nor a regular member of the CLF.

The NCUA last month issued an interim final rule to implement the changes made by the CARES Act. A previous Letter to Credit Unions further detailed the CLF changes.

As Congress considers additional coronavirus relief packages, NAFCU is advocating that changes made to the CLF are made permanent. The association's Share Insurance Fund (SIF) Committee received an update directly from NCUA CLF President Owen Cole last month.