Employee Paycheck and Small Business Protection Act

Key Provisions

• The bill would tell the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA) to set up programs. These programs would fully insure certain business payment accounts up to $100,000,000 per depositor or member at each institution. These 'covered transaction accounts' are for businesses, non-profits, or local governments. They are mainly used for payments like payroll and vendor bills. They also must be non-interest bearing or pay very low interest. The FDIC and NCUA would collect data and analyze impacts. They would then create final rules for these programs within 30 months. Existing plans to restore the federal insurance funds would be extended by 8 years.
• The bill would create a framework for a temporary program. This program would fully insure all money in certain transaction accounts for up to 180 days. This period could be extended by 90 days. It would only be activated if top officials determine a failure to do so would harm U.S. financial stability or the economy. These officials include the FDIC, the Federal Reserve, and the Treasury Secretary, consulting with the President. Banks or credit unions that are already failing would not be eligible. If activated, agency heads would need to testify to Congress.
• Both the permanent and temporary programs could be paid for in two ways. They could use money from the existing federal insurance funds. They could also charge fees to the banks and credit unions that join the programs. Congress would have oversight. This includes requiring testimony and reports, especially if rules are delayed or programs are extended.