WASHINGTON, D.C. – On Friday, Congressman Blaine Luetkemeyer (MO-03) was joined by 35 colleagues in sending a letter urging Congressional leadership to extend the Troubled Debt Restructuring (TDR) provision included in the CARES Act. Currently set to expire on December 31, 2020, extending this provision will give financial institutions the ability to work with customers through this difficult economic period, benefiting countless American businesses and consumers.

“In March of this year economic shutdowns hit communities across the country. By passing the CARES Act, Congress acted quickly to respond to the health threat we were yet to fully understand and a shutdown with an unknown end date. At the time, December 31, 2020 was believed to be an appropriate expiration date for numerous emergency measures, including Section 4013, the suspension of Trouble Debt Restructuring (TDR) classification of loans. However, with the end of the year quickly approaching and millions of businesses still in need of relief an extension of Section 4013 along with further forbearance for lenders is critical to our recovery and the survival of businesses in every state of the country.” 

“While the success of Section 4013 has been praised by borrowers and lenders alike, without Congressional action it will expire on December 31. Allowing it to expire would have a drastic and adverse impact on the ability of consumers and businesses to access credit now and a TDR classification would further hurt their ability to access credit in the future. Expiration could also result in many loans going into foreclosure.”

The full letter can be found HERE.