Treatment of Emergency Amendments: Paycheck Protection Program Liquidity Facility and Paycheck Protection Program Loans
Key claim: The National Credit Union Administration finalized rules ensuring Paycheck Protection Program loans and related Federal Reserve liquidity borrowings do not count against credit unions’ regulatory capital ratios or member business lending limits.
Abstract
(Rule · National Credit Union Administration) The NCUA Board (Board) is issuing a final rule adopting as final the revisions to the capital adequacy rule and the member business lending rule made under an interim final rule (IFR) published in the Federal Register on April 27, 2020.
Why this matters
The final rule preserves credit unions’ regulatory capital and member business lending capacity by retaining special treatment for PPP lending and associated Federal Reserve liquidity funding. It makes the interim treatment permanent rather than introducing a new lending program or changing borrowers’ repayment obligations.