COVID-19: Credit Unions, Congress, and States Take Action

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California Gov. Gavin Newsom
California Gov. Gavin Newsom

President Donald Trump has signed into law H.R. 748, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) — legislation that provides economic stimulus to the nation to address to the Coronavirus pandemic outbreak.

 Credit unions fought and won several provisions in this bill, including:

  • Granting eligibility in the Treasury Department’s Paycheck Protection Program for small businesses to keep their employees paid and employed. All credit unions, regardless if they are an SBA provider or not, are allowed to serve small business needs in this program. Details will be forthcoming.
  • Credit unions won eligibility for the Transaction Account Guarantee Program (TAG) addressing coverage to non-interest bearing transactional accounts; language suspending accounting rules for Troubled Debt Restructures; and increased access to the Central Liquidity Facility.
  • Guidance will begin coming from the administration over the next few days. Please stay tuned to the California and Nevada Credit Union Leagues’ alerts for future updates.

The Credit Union National Association (CUNA) and the Leagues will be providing further guidance in the coming days.

California Update
California Governor Gavin Newsom announced that more than 200 state-chartered credit unions and banks have committed to providing financial relief to the state’s consumers amid the economic fallout from the Coronavirus pandemic. Due to the response of so many credit unions, our movement was framed in a positive light by Governor Newsom as he made several references to what credit unions do.

Click here to see a brief synopsis on:

  • What the Governor assured California’s leaders and residents during his press conference.
  • An update on our ongoing conversations with the Department of Business Oversight and the department’s specific requests of credit unions.

The Governor’s ongoing live-stream Facebook page briefings (scroll down to view) are keeping residents and the news media informed.

The League continues to work with the Governor’s office and the DBO on how we will assist Californians during this crisis. We are advocating daily for all credit unions operating in the state to have a voice in the state’s ongoing economic response. Now that we know what the DBO expects of credit unions, we urge you to post clear instructions on the front page of your website detailing the best channels that members can use to contact you regarding your financial relief options — and the exact process for obtaining relief.
 
Governor Newsom has also released an updated list of essential services and critical infrastructure industries, as well as information about whether state public health orders override local orders.

The Governor also issued an executive order on Friday banning the enforcement of eviction orders for renters affected by COVID-19 through May 31, 2020. The order prohibits landlords from evicting tenants for nonpayment of rent and prohibits enforcement of evictions by law enforcement or courts. It also requires tenants to declare in writing, no more than seven days after the rent comes due, that the tenant cannot pay all or part of their rent due to COVID-19.

Nevada Update
In response to the economic fallout from the Coronavirus pandemic, Nevada Governor Steve Sisolak is working with the attorney general to research which relief efforts the state can move forward on regarding mortgage and rent-related issues. See the "Financial Institutions Division" and "Mortgage Lending Division" areas of the Department of Business and Industry’s webpage here, which give credit unions guidance for working with local consumers.

The department is also routinely posting timely information and resources. Please see its recent guidance and announcements on COVID-19.

The Nevada Governor also announced the creation of the COVID-19 Response, Relief and Recovery Task Force, which is aimed at mobilizing the private sector to assist in ongoing efforts undertaken by state agencies and the Nevada Health Response Center.

Additionally, he issued an executive order to force closure of non-essential businesses across the state. His previous directive to close non-essential businesses did not include an official order. You can read his official remarks.

Questions?
Email our response team at COVID19@ccul.org.

COVID-19 Updates on League App
Download the League App to stay informed daily.

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