Employee Paycheck and Small Business Protection Act
Sponsored By: Representative Waters, Maxine [D-CA-43]
Introduced
Summary
Creates a temporary guarantee that will fully insure eligible business transaction accounts up to $100 million per institution. It is aimed at keeping payroll and vendor payments flowing for businesses, nonprofits, and municipalities.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 4 benefits, 0 costs, 0 mixed.
Bigger insurance for business payment accounts
If enacted, banks and credit unions would insure covered business payment accounts up to $100 million per institution. Accounts must be for a business, nonprofit, or local government, used mainly for payroll and vendor payments, and pay no or very low interest set by regulators. This extra coverage would sit on top of normal insurance rules. It would start when the FDIC and NCUA issue final rules.
Crisis backstop for payroll accounts
In a crisis, banks and credit unions could get a temporary program that fully insures covered payroll and vendor accounts for up to 180 days. Starting it would require two‑thirds votes at the FDIC or NCUA and the Federal Reserve, plus a Treasury decision (with the President) that it is needed. Insolvent institutions could not join. The agencies could use their insurance funds and charge participating institutions. They could add one 90‑day extension with the same approvals and a report to Congress. The program would end no later than 270 days unless Congress approves more time. Leaders would testify within 45 days, and GAO would report within 90 days of starting the program.
Agencies to study data and set limits
Within 90 days, the FDIC and NCUA would start collecting data to design expanded coverage and set who qualifies. They must look at safety, system stability, competition (including minority and rural institutions and CDFIs), and whether holders can meet payroll and vendor payments. A public report would be due in 18 months, with data to House and Senate banking committees. Proposed rules would be due in 18 months and final rules in 30 months. Final rules must use common definitions and set one maximum insurance amount for both banks and credit unions. If late, agency heads must testify and GAO would review.
More time to rebuild insurance funds
Any FDIC or NCUA restoration plans in place at enactment would be extended by 8 years. The 8 years would start when the agencies’ final rules under this bill take effect. This could ease near‑term pressure on institutions while funds are rebuilt.
Sponsors & CoSponsors
Sponsor
Waters, Maxine [D-CA-43]
CA • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov