§9050 — Title 15 Commerce and Trade | U.S. Code

§9050 Temporary relief for community banks

Title 15 › Chapter CHAPTER 116— - CORONAVIRUS ECONOMIC STABILIZATION (CARES ACT) › Subchapter SUBCHAPTER III— - ECONOMIC STABILIZATION AND ASSISTANCE TO SEVERELY DISTRESSED SECTORS OF THE UNITED STATES ECONOMY › Part Part A— - Coronavirus Economic Stabilization › § 9050

Last updated Apr 6, 2026|Official source

Summary

Federal banking regulators must issue a temporary rule that sets the Community Bank Leverage Ratio at 8 percent and gives qualifying community banks a reasonable grace period if they fall below that level. The rule takes effect when issued and stays in force until the COVID‑19 national emergency declared on March 13, 2020 ends, or December 31, 2020, whichever happens first. While in the grace period, a qualifying community bank keeps its qualifying status and is assumed to meet the capital and leverage tests in section 201(c) of the Economic Growth, Regulatory Relief, and Consumer Protection Act. Definitions: “Appropriate Federal banking agency” — the federal bank regulator named in section 2 of that Act. “Community Bank Leverage Ratio” and “qualifying community bank” — the meanings given in section 201(a) of that Act.

Title 15, §9050

Commerce and Trade — Source: USLM XML via OLRC

(a)In this section—

(1)the term “appropriate Federal banking agency” has the meaning given the term in section 2 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (12 U.S.C. 5365 note); and

(2)the terms “Community Bank Leverage Ratio” and “qualifying community bank” have the meanings given the terms in section 201(a) of the Economic Growth, Regulatory Relief, and Consumer Protection Act (12 U.S.C. 5371 note).

(b)(1)Notwithstanding any other provision of law or regulation, the appropriate Federal banking agencies shall issue an interim final rule that provides that, for the purposes of section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (12 U.S.C. 5371 note)—

(A)the Community Bank Leverage Ratio shall be 8 percent; and

(B)a qualifying community bank that falls below the Community Bank Leverage Ratio established under subparagraph (A) shall have a reasonable grace period to satisfy the Community Bank Leverage Ratio.

(2)The interim rule issued under paragraph (1) shall be effective during the period beginning on the date on which the appropriate Federal banking agencies issue the rule and ending on the sooner of—

(A)the termination date of the national emergency concerning the novel coronavirus disease (COVID–19) outbreak declared by the President on March 13, 2020 under the National Emergencies Act (50 U.S.C. 1601 et seq.); or

(B)December 31, 2020.

(c)During a grace period described in subsection (b)(1)(B), a qualifying community bank to which the grace period applies may continue to be treated as a qualifying community bank and shall be presumed to satisfy the capital and leverage requirements described in section 201(c) of the Economic Growth, Regulatory Relief, and Consumer Protection Act (12 U.S.C. 5371 note).

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 2 of the Economic Growth, Regulatory Relief, and Consumer Protection Act, referred to in subsec. (a)(1), is section 2 of Pub. L. 115–174,

May 24, 2018, 132 Stat. 1297, which is set out as a note under section 5365 of Title 12, Banks and Banking. section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act, referred to in subsecs. (a)(2), (b)(1), and (c), is section 201 of Pub. L. 115–174,

May 24, 2018, 132 Stat. 1306, which is set out as a note under section 5371 of Title 12, Banks and Banking. The National Emergencies Act, referred to in subsec. (b)(2)(A), is Pub. L. 94–412, Sept. 14, 1976, 90 Stat. 1255, which is classified principally to chapter 34 (§ 1601 et seq.) of Title 50, War and National Defense. For complete classification of this Act to the Code, see

Short Title

note set out under section 1601 of Title 50 and Tables.