---
title: Coronavirus Relief Bill Lowers Community Bank Leverage Ratio, Delays CECL for All Banks
description: The final version of the $2.2 trillion coronavirus relief bill passed by the U.S. Senate would make life easier for community banks this year. The bill temporarily lowers the community bank leverage r
image: https://intel.invictusgrp.com/hubfs/blog-headers-depositblog.webp
---

[![Invictus Analytics Logo 2025 _ BL](https://intel.invictusgrp.com/hs-fs/hubfs/Invictus%20Analytics%20Logo%202025%20_%20BL.png?width=200&height=46&name=Invictus%20Analytics%20Logo%202025%20_%20BL.png "Invictus Analytics Logo 2025 _ BL")](https://www.invictusgrp.com)

Open menu

- [Home](https://www.invictusgrp.com)
- About Us 
    - [About Invictus](https://www.invictusgrp.com/about-invictus-group)
    - [Client Testimonials](https://www.invictusgrp.com/client-testimonials)
    - [Message from the Chairman](https://www.invictusgrp.com/message-from-chairman)
    - [The Leadership Team](https://www.invictusgrp.com/our-team)
    - [Job Opportunities](https://www.invictusgrp.com/jobs)
- Our Offerings 
    - [Capital Stack](https://www.invictusgrp.com/capital-stack-old)
    - [M&A Advisory Services & SI](https://www.invictusgrp.com/ma-advisory-si)
- Our Insights 
    - [Invictus Intel Blog](https://intel.invictusgrp.com)
    - [M&A Deal Blog](https://mablog.invictusgrp.com/)
    - [Bank Insights Newsletter](https://www.invictusgrp.com/invictus-bank-insights-newsletter-the-invictus-group)
    - [White Papers](https://www.invictusgrp.com/white-papers)
    - [Webinars & Videos](https://www.invictusgrp.com/webinars-and-videos)
- [Client Login](https://www.invictusanalytics.com/)

[ Let's Talk ](https://www.invictusgrp.com/contact)

[![Invictus Analytics Logo 2025 _ BL](https://intel.invictusgrp.com/hs-fs/hubfs/Invictus%20Analytics%20Logo%202025%20_%20BL.png?width=200&height=46&name=Invictus%20Analytics%20Logo%202025%20_%20BL.png "Invictus Analytics Logo 2025 _ BL")](https://www.invictusgrp.com)

Close menu

- [Home](https://www.invictusgrp.com)
- About Us 
    - [About Invictus](https://www.invictusgrp.com/about-invictus-group)
    - [Client Testimonials](https://www.invictusgrp.com/client-testimonials)
    - [Message from the Chairman](https://www.invictusgrp.com/message-from-chairman)
    - [The Leadership Team](https://www.invictusgrp.com/our-team)
    - [Job Opportunities](https://www.invictusgrp.com/jobs)
- Our Offerings 
    - [Capital Stack](https://www.invictusgrp.com/capital-stack-old)
    - [M&A Advisory Services & SI](https://www.invictusgrp.com/ma-advisory-si)
- Our Insights 
    - [Invictus Intel Blog](https://intel.invictusgrp.com)
    - [M&A Deal Blog](https://mablog.invictusgrp.com/)
    - [Bank Insights Newsletter](https://www.invictusgrp.com/invictus-bank-insights-newsletter-the-invictus-group)
    - [White Papers](https://www.invictusgrp.com/white-papers)
    - [Webinars & Videos](https://www.invictusgrp.com/webinars-and-videos)
- [Client Login](https://www.invictusanalytics.com/)

[ Let's Talk ](https://www.invictusgrp.com/contact)

## Coronavirus Relief Bill Lowers Community Bank Leverage Ratio, Delays CECL for All Banks

The final version of the $2.2 trillion [coronavirus relief bill](https://www.appropriations.senate.gov/imo/media/doc/FINAL%20FINAL%20CARES%20ACT.pdf) passed by the U.S. Senate would make life easier for community banks this year. The bill temporarily lowers the community bank leverage ratio to 8 percent and postpones the new accounting standards known as CECL.

The 880-page Coronavirus Aid, Relief, and Economic Security (CARES) Act must still be approved by the House and signed by the president.

The bill also loosens requirements for troubled debt restructurings and loan modifications for borrowers affected by the coronavirus economic crisis.

The community bank relief provisions would last until the president terminates the national emergency or on December 31, 2020.

No bank will have to comply with any provision of the current expected credit loss standard during that time. FDIC Chair Jelena McWilliams had previously urged the Financial Accounting Standards Board to [postpone CECL](https://intel.invictusgrp.com/2020/03/how-much-better-will-banks-be-if-cecl-dies-the-answer-might-surprise-you) during the crisis.

Community banks have lobbied to lower the community bank leverage ratio to 8 percent ever since regulators came out with their 9 percent rulemaking. Banks that chose to opt into the new capital framework would have done so on their March 31 Call Reports.

While the bill gives only temporary relief to community banks on these issues, many [industry observers expect fierce lobbying](https://www.icba.org/news/news-details/2020/03/26/community-bank-provisions-of-the-cares-act?utm_source=informz&utm_medium=email&utm_campaign=informz&_zs=I7caU&_zl=03V22) to extend the provisions, perhaps permanently.

 

## More recent posts

![Invictus CEO to Moderate Regulatory Panel at ](https://intel.invictusgrp.com/hubfs/AdobeStock_901521336-1.jpeg)

[banking](https://intel.invictusgrp.com/tag/banking), [Capital Plan for Community Banks](https://intel.invictusgrp.com/tag/capital-plan-for-community-banks), [Community Banks Capital Plan](https://intel.invictusgrp.com/tag/community-banks-capital-plan), [capital planning](https://intel.invictusgrp.com/tag/capital-planning), [liquidity](https://intel.invictusgrp.com/tag/liquidity), [stress testing](https://intel.invictusgrp.com/tag/stress-testing), [Trade War Recession](https://intel.invictusgrp.com/tag/trade-war-recession), [Capital Requirements for community banks](https://intel.invictusgrp.com/tag/capital-requirements-for-community-banks), [community bank regulations](https://intel.invictusgrp.com/tag/community-bank-regulations), [Global Oil Shock](https://intel.invictusgrp.com/tag/global-oil-shock), [Stagflation](https://intel.invictusgrp.com/tag/stagflation), [Banking CRE](https://intel.invictusgrp.com/tag/banking-cre), [Banking Construction](https://intel.invictusgrp.com/tag/banking-construction), [Concentration Limits](https://intel.invictusgrp.com/tag/concentration-limits), [CRE Banking Strategies](https://intel.invictusgrp.com/tag/cre-banking-strategies)

### [Invictus CEO to Moderate Regulatory Panel at "Concentrate 2026" *Author: Patti Casaleggio, Invictus Analytics * As regulatory scrutiny and expectations around commercial real estate (CRE) continue to evolve, staying ahead of supervisory trends has never been more critical for community and...](https://intel.invictusgrp.com/invictus-ceo-to-moderate-regulatory-panel-at-concentrate-2026)

![Preparing for the Possibility of a Global Oil Shock and Stagflation Scenario](https://intel.invictusgrp.com/hubfs/AdobeStock_1939288070-1.jpeg)

[banking](https://intel.invictusgrp.com/tag/banking), [Capital Plan for Community Banks](https://intel.invictusgrp.com/tag/capital-plan-for-community-banks), [Community Banks Capital Plan](https://intel.invictusgrp.com/tag/community-banks-capital-plan), [capital planning](https://intel.invictusgrp.com/tag/capital-planning), [liquidity](https://intel.invictusgrp.com/tag/liquidity), [stress testing](https://intel.invictusgrp.com/tag/stress-testing), [Trade War Recession](https://intel.invictusgrp.com/tag/trade-war-recession), [Capital Requirements for community banks](https://intel.invictusgrp.com/tag/capital-requirements-for-community-banks), [community bank regulations](https://intel.invictusgrp.com/tag/community-bank-regulations), [Global Oil Shock](https://intel.invictusgrp.com/tag/global-oil-shock), [Stagflation](https://intel.invictusgrp.com/tag/stagflation)

### [Preparing for the Possibility of a Global Oil Shock and Stagflation Scenario *Author: Adam Mustafa CEO, Invictus Analytics * What happens when inflation reaccelerates from already elevated levels while economic growth slows? This is the defining challenge behind Invictus Analytics’ latest Oil Price Shock...](https://intel.invictusgrp.com/preparing-for-the-possibility-of-a-global-oil-shock-and-stagflation-scenario)

![Evaluating the CBLR at 8%: Should Your Bank Adopt it?](https://intel.invictusgrp.com/hubfs/AdobeStock_381681511-1.jpeg)

[banking](https://intel.invictusgrp.com/tag/banking), [Capital Plan for Community Banks](https://intel.invictusgrp.com/tag/capital-plan-for-community-banks), [Community Banks Capital Plan](https://intel.invictusgrp.com/tag/community-banks-capital-plan), [capital planning](https://intel.invictusgrp.com/tag/capital-planning), [liquidity](https://intel.invictusgrp.com/tag/liquidity), [stress testing](https://intel.invictusgrp.com/tag/stress-testing), [Trade War Recession](https://intel.invictusgrp.com/tag/trade-war-recession), [Capital Requirements for community banks](https://intel.invictusgrp.com/tag/capital-requirements-for-community-banks), [community bank regulations](https://intel.invictusgrp.com/tag/community-bank-regulations), [cblr](https://intel.invictusgrp.com/tag/cblr)

### [Evaluating the CBLR at 8%: Should Your Bank Adopt it? *Author: Adam Mustafa, CEO, Invictus Analytics * Federal banking agencies recently finalized a rule lowering the Community Bank Leverage Ratio (CBLR) threshold from 9% to 8%, effective July 1, 2026. At first glance, the change...](https://intel.invictusgrp.com/evaluating-the-cblr-at-8-should-your-bank-adopt-it)

## Footer

[![Invictus Analytics Logo 2025 _ BL](https://intel.invictusgrp.com/hs-fs/hubfs/Invictus%20Analytics%20Logo%202025%20_%20BL.png?width=200&height=46&name=Invictus%20Analytics%20Logo%202025%20_%20BL.png "Invictus Analytics Logo 2025 _ BL")](https://www.invictusgrp.com)

Invictus is the essential resource for bank executives, boards of directors and investors in navigating the new world of banking. Our mission is to provide our clients a competitive advantage through data intelligence, industry expertise and disruptive analysis.

[LinkedIn

](https://www.linkedin.com/company/invictusgroup/) [YouTube

](https://www.youtube.com/@InvictusGroupAnalytics)

### ABOUT US

- [ About Us ](https://www.invictusgrp.com/about-invictus-group)
- [ Message from Chairman ](https://www.invictusgrp.com/message-from-chairman)
- [ Our Leadership Team ](https://www.invictusgrp.com/our-team)
- [ Privacy Policy ](https://www.invictusgrp.com/privacy-policy)

### OUR OFFERINGS

- [ Capital Stack ](https://www.invictusgrp.com/capital-stack-old)
- [ M&A Advisory Services & SI ](https://www.invictusgrp.com/ma-advisory-si)

### OUR INSIGHTS

- [ Invictus Intel Blog ](https://intel.invictusgrp.com)
- [ M&A Deal Blog ](https://mablog.invictusgrp.com/)
- [ Bank Insights Newsletter ](https://www.invictusgrp.com/invictus-bank-insights-newsletter-the-invictus-group)
- [ White Papers ](https://www.invictusgrp.com/white-papers)
- [ Webinars & Videos ](https://www.invictusgrp.com/webinars-and-videos)

© 2026 by Invictus Group®, Invictus®, Invictus Group®, FreeCapital®, and LoanLayering® are registered trademarks of Invictus

```json
{
  "@context" : "https://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "Adam Mustafa",
    "url" : "https://intel.invictusgrp.com/author/adam-mustafa"
  },
  "dateModified" : "2022-12-06T22:18:29.417Z",
  "datePublished" : "2020-03-26T20:55:36.000Z",
  "headline" : "Coronavirus Relief Bill Lowers Community Bank Leverage Ratio, Delays CECL for All Banks",
  "image" : [ "https://intel.invictusgrp.com/hubfs/blog-headers-depositblog.webp" ],
  "mainEntityOfPage" : {
    "@id" : "https://intel.invictusgrp.com/2020/03/news-alert-coronavirus-relief-bill-lowers-community-bank-leverage-ratio-delays-cecl-for-all-banks",
    "@type" : "WebPage"
  },
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "url" : "https://intel.invictusgrp.com/hubfs/Website%20Graphics/logo-Invictus.png"
    },
    "name" : "Invictus Group LLC"
  }
}
```