NCUA Finalizes 2020 Pandemic-Era Rule on Credit Union Paycheck Protection Program Loans

November 4, 2026

The National Credit Union Administration (NCUA) issued a final rule that adopts as final the revisions to its capital adequacy rule and member business lending rule that were first made in an interim final rule published on April 27, 2020. The rule confirms that Paycheck Protection Program (PPP) loans receive a zero percent risk weight under the NCUA’s risk-based capital regulations and allows federally insured credit unions to exclude PPP loans pledged as collateral for the Federal Reserve’s PPP Liquidity Facility from the definition of total assets when calculating the net worth ratio. It also excludes PPP loans from the definition of commercial loans under the member business lending rule. The NCUA Board adopted the 2020 interim rule as final without change; the Board’s action is dated November 2, 2026, and the rule was published and took effect on November 4, 2026. The NCUA notes that the risk-weight and total-assets provisions had already been carried forward in a December 2021 final rule, so this action makes no forward-looking changes to its regulations.

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