Employee Paycheck and Small Business Protection Act

Summary

Creates new FDIC and NCUA insurance programs that fully protect certain business, nonprofit, and municipal transaction accounts up to $100 million per entity at each bank or credit union. It also authorizes a temporary FDIC Transaction Account Guarantee Program that can be triggered in a crisis to insure such accounts for up to 180 days (with a one‑time 90‑day extension) after high‑level agency approvals and a Treasury determination; the bill sets data collection, oversight, reporting, funding, and automatic termination rules for that temporary program.

• FDIC and NCUA must create programs insuring 'covered transaction accounts' up to $100 million per entity at each bank or credit union.
• Covered transaction accounts are business, nonprofit, or municipal operational accounts that are non‑interest bearing or pay below‑market interest and are used mainly for transactions like payroll and vendor payments.
• FDIC may operate a Temporary Transaction Account Guarantee Program to insure such accounts for up to 180 days, with one possible 90‑day extension, but only after 2/3 board approvals and a Treasury determination.
• Agencies must start collecting data within 90 days of enactment to design program rules and eligibility criteria.
• Temporary program funding may come from assessments on participating institutions and use of the Deposit Insurance Fund.
• Implementation of the temporary program triggers near‑term congressional testimony and a GAO report; the temporary program automatically terminates within a limited window unless approved to continue.
• Insolvent institutions are ineligible for the temporary guarantee; the program targets operational transaction accounts, not general retail deposits.
• The insured amounts under these programs are excluded from existing net insured amount calculations under current law.