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The Senate passed the $1.5 trillion omnibus to fund the government through Sept. 30 with ICBA-advocated provisions related to the SBA’s 504 loan program, LIBOR, and cyber incident reporting.
504 Program: Due to unusually high demand, the 504 program is on pace to exhaust its $7.5 billion lending authorization level in June, which would shutter it more than three months before the fiscal year ends Sept. 30.
After ICBA and other groups called on Congress to increase the 504 program’s authorization level, the omnibus sets funding authorizations at $11 billion for the regular 504 program and $5 billion for debt refinancing.
LIBOR: Meanwhile, the absence of clear guidance and a consistent federal standard for “tough legacy” contracts with interest rates based on LIBOR poses uncertainty, reduced liquidity, and increased volatility for investors, consumers, and securities issuers.
The omnibus includes an ICBA-supported provision directing the Federal Reserve to determine replacement rates that can be used for contracts lacking fallback language, by providing a safe harbor should the contract not specify a non-LIBOR replacement rate.
Cyber Reporting: Finally, policymakers have worked to advance bipartisan cyber incident reporting legislation for critical infrastructure that avoids excessive burdens on community banks.
An ICBA-supported provision in the omnibus establishes a cyber incident regime at the Cybersecurity and Infrastructure Security Agency that ensures timely information sharing, includes liability protections, and requires CISA to harmonize its regulations.
Next: Following House and Senate passage this week, the legislation is set to be signed by President Joe Biden today to avoid a government shutdown.