JODEY r_‘. anamoron Page 45 comm-res om 19m Distmcr, Tram- WAYS AND MEANS 5:.ii-it'i'MMtrTEE31 102E] Lnrirswaam Hausa 0H“. .., 5 -.-:iI. Fa: [2021229365 ,3 (Empress of the [flatten $talfifi Sufi-G CrIESI’lT 5 nil; I'. S-IJWE Eti‘J “it‘gigztfi’EZ‘EH Fe) 5335': ars—' " I 31mm of Reprrswtanhra Washington. Jae; 20515—4319 l. BHOL‘K GHI- E 131? Haas AVEN : 5- m. MG L- ESFiEJ‘C’t. TX 39-101 IGDfil'u‘tiIi—IE-il fair t‘JOGlTE-i' 91533 March 31, 2020 The Honorable Jerome [-1. Powell Chairman The Honorable Steven T. Mnuchin Secretary Board ofGoventors of Department of the Treasury The Federal Reserve System 20‘'1 Street & Constitution Avenue, Northwest Washington, DC 20551 1500 Pennsylvania Avenue, Northwest Washington, DC 20220 The Honorable Jelena McWilliams Chairman Federal Deposit Insurance Corporation The Honorable Jovita Carranza Administrator US. Small Business Administration 550 17‘“ Street, Northwest 409 3"1 Street, Northwest Washington, DC 20429 Washington, DC 20416 The Honorable Joseph M. Otting Comptroller General of the United States Office ofthe Comptroller of the Currency 400 7‘“ Street, Southtvest Washington, DC 20219 Dear Chairman Powell, Chairman McWiliiams, Comptroller Otting, Secretary Mnuchin, & Administrator Carranza: Thank you for your leadership in these trying times. As the nation deals with the COVID-l9 pandemic, we must continue to work together to ensure that efforts are carried out quickly, responsibly, and with the best interest ofthe American people. Much of the food, fuel, and fiber that is essential to our nation’s economic and national security is produced in the 19m Congressional District of Texas. Community banks make much of this possible, acting as the lifeblood to rural economies. in fact, they will be essential to the economic rebound in our nation, providing access to credit for small businesses, families, and individuals. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides authority to regulators to offer emergency relief to banks so that they can infuse their communities with the liquidity and support they need. Agencies have already undertaken meaningful actions in providing assistance, recommendations and guidance to deal with the COVID-IQ pandemic with reSpect to numerous banking regulations and standards. I encourage you to continue this helpful endeavor by maximizing the additional authority given to you by Congress, through the CARES Act, with respect to the following provisions, in addition to any other tools at your disposal: For example, ample time to comply should be granted to community banks if they fall below the eight percent Community Bank Leverage Ratio (CBLR). Earthen-more, in order to maintain long-term F'r'll’iTEE ON RECYCLED fir-”ER ' Page 4? economic growth, the CBLR should be maintained at the minimum eight percent threshold. allowed by FL I 15-174. beyond the COVID-l 9 pandemic. Additionally, and with respect to Debt Guarantee Authority. all transaction accounts should be fully backed without a maximum guarantee limit in order to provide assurance to depositors that their deposits are safe at any amount, which is critical for payroll operations and liquidity. Lastly, the banking industry is poised to play an enormous role in administering Small Business Administration (SBA) loans and reinvigorating our economy. Bank regulators — along with Treasury and the SBA -- should ensure that community banks are provided full information and access to the new SBA programs such as the Paycheck Protection Program and all Federal Reserve liquidity facilities. In this crisis, time is ofthe essence. We are at a critical juncture, and we must look to every available resource and action possible to get our economy roaring again. Thank you for considering these ideas as we work collectively to protect the health of our citizens and the economy. Si el ey C. An'ington Member of Congress