PACB Coronavirus Resource Library

PACB Coronavirus Resource Library

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Click on each section title below to be taken directly to that area of our coronavirus resource center:

1. PACB RESOURCES & UPDATES

2. ICBA RESOURCES & UPDATES

3. LEGISLATIVE RESOURCES & UPDATES

4. ASSOCIATE MEMBER RESOURCES & UPDATES



Coronavirus Resources for Community Bankers and Consumers

The Pennsylvania Association of Community Bankers (PACB) is helping support the banking industry and its consumers navigate the Coronavirus (COVID-19) pandemic by offering information and resources from state and federal regulatory agencies, health organizations, and industry allies. Regulatory agencies have encouraged financial institutions to work with customers impacted by the coronavirus. Customers experiencing difficulties beyond their control should work directly with their financial institutions.

  1. PA Department of Banking and Securities: Coronavirus Information and Guidance https://www.dobs.pa.gov/Businesses/COVID-19%20Information%20and%20Guidance/Pages/default.aspx
  2. PA Department of Health:  https://www.health.pa.gov/topics/disease/Pages/Coronavirus.aspx
  3. PA Governor’s Office: https://www.pa.gov/guides/responding-to-covid-19/
  4. Independent Community Bankers of America (ICBA) Coronavirus Resources: https://www.icba.org/news/Crisis-Preparedness?utm_source=informz&utm_medium=email&utm_campaign=informz&_zs=Iw77W&_zl=uLS12
  5. OCC Bulletin: Pandemic Planning — Working With Customers Affected by Coronavirus and Regulatory Assistance https://www.occ.gov/news-issuances/bulletins/2020/bulletin-2020-15.html
  6. FDIC Coronavirus Information for Bankers and Consumers https://www.fdic.gov/coronavirus/index.html
  7. Federal Reserve: https://www.federalreserve.gov/
  8. CDC: https://www.cdc.gov/coronavirus/2019-ncov/cases-updates/summary.html?CDC_AA_refVal=https%3A%2F%2Fwww.cdc.gov%2Fcoronavirus%2F2019-ncov%2Fsummary.html
  9. PACB was invited to join a series of Pennsylvania Bankers Association (PBA) C-suite Coronavirus regional conversations today. Here is a link to understand the various PBA regions: https://www.pabanker.com/member-services/pa-bankers-groups/
  10. On March 17 federal bank regulatory agencies announced two actions to support the U.S. economy and allow banks to continue lending to households and businesses.
    Federal Banking Agencies Provide Banks Additional Flexibility to Support Households and Businesses
    Interagency Statement on the Use of Capital and Liquidity Buffers
    Federal Register Notice
    Federal Banking Agencies Encourage Banks to Use Federal Reserve Discount Window – posted 3/16/2020


PACB RESOURCES & UPDATES

UPDATE 05/21/2020 – Additional guidance has just been issued from SBA regarding PPP Lender Processing Fee Payment and 1502 Reporting Process. The purpose of this Notice is to inform Paycheck Protection Program (PPP) Lenders of the reporting process through which PPP Lenders will report on PPP loans and collect the processing fee on fully disbursed loans which they are eligible to receive.

Download the SBA Procedural Notice here.


UPDATE 05/20/2020 – Governor Tom Wolf yesterday announced that businesses and employees in the real estate industry may conduct limited business-related activities statewide and provided guidance for this industry to operate in red phase and yellow phase counties.

The real estate guidance requires businesses and employees to follow all applicable provisions of the Guidance for Businesses Permitted to Operate During the COVID-19 Disaster Emergency to Ensure the Safety and Health of Employees and the Public, which includes provisions requiring that every person present at a work site, business location, or property offered for sale, wear masks/face coverings, and provisions requiring the establishment of protocols for execution upon discovery that the business has been exposed to a person who is a probable or confirmed case of COVID-19

The governor’s office reported that all in-person activities should be scheduled and limited to no more than the real estate professional and two people inside a property at any time, exercising appropriate social distancing.

According to a statement issued by the governor’s office, “When conducting settlements/closings utilize remote notary, powers of attorney or the exchange of contract documents electronically or by mail wherever possible. Where it is not possible to conduct settlement/ closing via remote notary or POA, attendance in-person must be limited to required signatories and their legal counsel or real estate professional only, and steps to preserve social distancing must be followed to the maximum extent possible.”


UPDATE 05/18/2020 – The U.S. Department of the Treasury and U.S. Small Business Administration released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the application.  Click here to view the application and instructions.

The application sheds new light on the forgiveness process, raises a few new issues and confirms previous information which, candidly, we hoped would change.

Among those items:

  1. The application provides a step by step calculation methodology which will help the borrower identify reductions in the forgiveness amount.
  2. Instructions on the application maintain the 75%/25% thresholds for payroll versus nonpayroll expenses in the forgiveness calculation.
  3. Flexibility has been provided for the Covered Period of the loan. It now allows for an eight-week period that begins on the first day of the borrower’s first payroll period following their PPP Loan Disbursement Date (Alternative Payroll Covered Period).
  4. It appears that the SBA will decide whether the borrower should have refinanced an Economic Impact Disaster Loans (EIDL) and determine how that affects the borrower’s forgiveness.
  5. The borrower must, once again, affirm and acknowledge that they received a PPP loan with an original principal amount in excess of $2 million.
  6. Borrower certifications, like those in the original application process, are included in the Loan Forgiveness Application, along with a clear warning:
    The Borrower’s eligibility for loan forgiveness will be evaluated in accordance with the PPP regulations and guidance issued by SBA through the date of this application. SBA may direct a lender to disapprove the Borrower’s loan forgiveness application if SBA determines that the Borrower was ineligible for the PPP loan.
  7. The borrower must provide information on individual employee payroll expenses, rather than averages.
  8. The application once again affirms that the forgiveness amount will not be affected for instances in which the borrower made a good-faith, written offer to rehire an employee during the Covered Period which was rejected by the employee. It also allows for a reduction in the number of FTEs for any employee who was fired for cause, voluntarily resigned or voluntarily requested a reduction of their hours.
  9. The application provides additional safe harbor for any borrower who reduced FTE employee levels between February 15 and April 26, but who restored those employee levels no later than June 30.

Community bankers who continue to have trouble with the SBA’s E-Tran and SBA Connect Lender Gateway portals can direct assistance questions to the SBA at 833-572-0502 or cls@sba.gov. Additional guidance and resources are available on Treasury’s PPP webpage


UPDATE 05/05/2020 – Last week, Governor Tom Wolf announced that beginning Friday, May 8, stay-at-home restrictions in 24 counties will move from red to yellow. These counties include: Bradford, Cameron, Centre, Clarion, Clearfield, Clinton, Crawford, Elk, Erie, Forest, Jefferson, Lawrence, Lycoming, McKean, Mercer, Montour, Northumberland, Potter, Snyder, Sullivan, Tioga, Union, Venango, and Warren.

Pennsylvania’s remaining 43 counties still are under a stay-at-home order and continue to be listed in the red phase. As such, the PACB office located in Dauphin County remains closed.

PACB offices will remain closed temporarily to employees and visitors when the stay-at-home order for Dauphin County is lifted until we have policies, procedures, scheduling, and equipment in place to maintain proper social distancing, cleanliness, and ensure the safety of our employees and members.

We are confident we are closer now to reopen and being able to gather in person, although observing proper CDC guidelines for distancing, cleaning, and staying safe.


UPDATE 05/04/2020 – Small Businesses Were at a Breaking Point. Small Banks Came to the Rescue. Community lenders punched above their weight in the Paycheck Protection Program, the government’s lifeline to small businesses

The Wall Street Journal article by Peter Rudegeair, Orla McCaffrey and Liz Hoffman: https://www-wsj-com.cdn.ampproject.org/c/s/www.wsj.com/amp/articles/small-businesses-were-at-a-breaking-point-small-banks-came-to-the-rescue-11588590013


UPDATE 04/29/2020 – Paycheck Protection Program (PPP) Lending Operations Update

SBA and Treasury value all lenders and their small business customers.

To ensure access to the PPP loan program for the smallest lenders and their small business customers, starting at 4 p.m. today EDT through 11:59 p.m. EDT, SBA systems will only accept loans from lending institutions with asset sizes less than $1 billion dollars. 

Please note, lending institutions with asset sizes less than $1 billion will still be able to submit PPP loans outside of this time frame. Please also note that lenders with asset sizes greater than $1 billion will be able to submit loans outside of today’s 4pm -11:59pm EDT reserved processing time.

This reserved processing time applies today April 29, 2020. SBA and Treasury will evaluate whether to create a similar reserved time again in the future.

SBA and Treasury continue to monitor loan system performance and will continue to provide frequent updates to the lending community.


UPDATE 04/28/2020 – PACB has been sharing your feedback regarding the second round of PPP lending with our congressional delegation. US Representative Dan Meuser (PA-9) invited PACB community bankers to participate in a call with Rep. Patrick McHenry who is the ranking Republican congressman on the House Financial Services Committee at 10:30 a.m. on Wednesday, April 29, 2020. They want to hear your concerns and successes with the PPP and discuss other banking issues related to the Coronavirus.

PDATE 04/28/2020 – PACB has been sharing your feedback regarding the second round of PPP lending with our congressional delegation. US Representative Dan Meuser (PA-9) invited PACB community bankers to participate in a call with Rep. Patrick McHenry who is the ranking Republican congressman on the House Financial Services Committee at 10:30 a.m. on Wednesday, April 29, 2020. They want to hear your concerns and successes with the PPP and discuss other banking issues related to the Coronavirus.

Time and Date: 10:30 a.m. Wednesday, April 29
Call (877) 229-8493;  PIN:118349
Mobile one-click: (877) 229-8493,,118349#

The SBA Deputy Administrator asked PACB to distribute the following PPP Lending Operations Update for Tuesday, April 28, 2020 “SBA and Treasury value all lenders and their small business customers. For the benefit of small business customers and their employees, SBA and Treasury are working on ways to optimize the loan processing system. Starting today, Robotic Processing Automation (RPA), which are robotic systems used by some banks to mimic human data entry, may not be used to submit Paycheck Protection Program loans into SBA’s E-Tran loan system.  RPAs burden the processing system and diminish its capabilities. Without RPAs, the loan processing system will be more reliable, accessible, and equitable for all small businesses. Application Programing Interface (APIs) will still be permitted. If you are a lender who needs assistance converting your submission process to a non-RPA API, contact Sheri McConville. (Sheri.Mcconville@sba.gov)”


UPDATE 04/27/2020 – Minority-owned businesses anxious as second round of Paycheck Protection Program begins.


UPDATE 04/24/2020 – Community Banks Ready to Deliver Another Round of Payroll Relief for Small Business

PACB applauds passage of 2nd round of payroll loans to help small-business workers

HARRISBURG (April 23, 2020) — On behalf of the Pennsylvania Association of Community Bankers (PACB), President and CEO Kevin L. Shivers today issued the following statement on legislation passed by Congress authorizing $310 billion in additional funding for small businesses and their employees through the Payroll Protection Program (PPP).

“Community banks delivered big for small business during the last round of payroll protection loans and they are ready to do it again,” said PACB president and CEO Kevin L. Shivers. “During the last round, Pennsylvania banks processed over $15 billion in loans that were delivered to over 69,000 small businesses over 14 days. We expect this new round of funds to be processed even faster. 

“When the last round of funding ran out, PACB teamed-up with community bankers across Pennsylvania, our federal allies at the Independent Community Bankers of America and community banking state trade associations across the nation to aggressively lobby that the new funding tranche included $60 billion for the small-business customers of community banks. This will ensure small businesses in communities across Pennsylvania have a proportionate allocation of PPP funding.

“Pennsylvania’s community bankers are grateful for the leadership of US Sen. Pat Toomey, and the support of US Sen. Robert Casey, Jr., US Reps. Madeleine Dean (PA-04), GT Thompson (PA-15), and the other members of the Pennsylvania congressional delegation who voted for this new round of funds.” 

The first round of $350 billion in PPP funding was included in the federal CARES Act was enacted last month. Over 1 million loans were processed across the nation over 14 days. Over 140 community banks are headquartered or do business in Pennsylvania.


UPDATE 04/23/2020 – The US House has voted overwhelmingly to pass the $484 Billion Stimulus Package with Round 2 of PPP Loans. (388-5)  “The legislation won the necessary majority at 5:30 p.m. EDT as lawmakers continued to show up in groups to vote under rules designed to keep them safe during the coronavirus pandemic. The legislation will now go to the desk of President Trump, who has promised to sign it quickly into law.  Be vigilant about watching for PPP funds to become available and SBA to begin accepting PPP loan applications after the President signs.

https://www.nytimes.com/2020/04/23/us/coronavirus-live-news-coverage


UPDATE 04/22/2020 – Late Tuesday afternoon, the US Senate passed bipartisan legislation that includes an additional $310 billion to restart the Paycheck Protection Program. PACB expects US House consideration on Thursday. We expect the President to sign the bill immediately. 

During the last round of funding, Pennsylvania banks processed over $15 billion in loans that were delivered to over 69,000 small businesses and charities over 14 days. 

PACB expects this new round of funds to be processed even faster. 

We want to make sure every community bank who wants to participate in the PPP understands the process to activate an account with the USSmall Business Administration, or is aware of 3rd party providers who can assist their small-business customers.

The following PACB associate members approached PACB offering their services to community banks. We are not endorsing any provider, but want to share the information with you and let you do your due diligence quickly to prepare for the new round if you choose to participate. 

Associate Member Third Parties Directly Assisting with PPP Loans/applications and Processing

StreetShares provides community banks and credit unions Business Lending-as-a-Service, a branded end-to-end solution to offer small business lending. Community banks and their customers receive a completely digital, business lending experience with instant pre-qualification and digital decisioning. This allows Banks to open or expand their small business lending in a cost-efficient, low risk, and time-effective way. It is a partnership for the bank and not a project. No expensive software to buy, no people to hire, and no resources required from the bank. Business Lending-as-a-Service can be stood up in30 days or less.

Two PACB Associate Members – Fiserv and StreetShares – partner to provide a fully digital PPP loan application process with E-Tran electronic connection and submission. Here is a link to the demo of the application along with a pdf containing more explanation.

With the next round of PPP funding perhaps available as soon as Thursday or Friday, community banks may want to consider this turnkey process.

StreetShares is committed to getting banks launched in 24-48 hours to participate and offer PPP loans in this format.

Austin Anderson, Bus. Dev. Exec.
StreetShares
571-325-2963
aanderson@streetshares.com

Innovative Financing Solutions is a bank and business advisory firm specializing in the development and implementation of sound and profitable government guaranteed loan programs for community banks and growing regional banks.

Michael D. Ryan, Pres./CEO
Innovative Financing Solutions
484-485-2756
mryan@innovfs.net


UPDATE 04/21/2020 – PACB is pleased that the US Senate just passed the 2nd tranche of small business payroll protection program funding. This bill earmarks $60B for PPP loans by community banks!

CBS 21 Reporter Michael Gorsegner covered the story on this evening’s news: https://local21news.com/news/local/small-banks-looking-for-piece-of-pie-to-help-small-businesses


UPDATE 04/21/2020 – Senate Majority Leader McConnell today announced that a deal was reached this afternoon in Washington, DC, for the next round of paycheck protection (PPP) loans. The proposal still needs to be approved by both chambers and signed by the President. We expect that process to begin later this week.

We confirmed with Sen. Toomey’s staff certain details of plan:

$320B for PPP Loans. Of this, $250B in PPP lending is unrestricted

The plan earmarks $60B for smaller lending institutions. Of this: $30B is earmarked for banks and Community Financial Institutions, like CDFIs and Minority Depository Institutions with assets less than $10B; and $30B for banks with assets between $10-50B.

Additionally, $50B is available for EIDL loans and $10B for EIDL Advance loans. Additionally, $2.1B is earmarked for SBA administrative expenses.

We were told the new legislation also clarifies language that agricultural enterprises are eligible for PPP.  

Additionally, the PACB staff raised several of your questions with ICBA staff in Washington and want to report to you what we have learned.

Q. What is the amount of the PPP that is taxable?
A. The forgiveness of a PPP loan is not taxable to the borrower (unlike the usual treatment of debt forgiveness).

Q. How does a bank know the loan has been funded?
A. We are still awaiting SBA guidance.

Q. Any update on SBA fees?
A. We’re still awaiting word from SBA – word is that fees will be flat and not stacked or blended.

Q. Any more clarity regarding the sudden appearance of third-party agents.
A. Below is guidance from ICBAs FAQ’s on agents:

The obligation of a lender to pay the appropriate agent fee does not commence unless the bank has agreed that the accounting firm/CPA is acting as an agent for the bank. Please see guidance provided below from the American Institute of Public Accountants (AICPA) to their members in support of best industry practices.

“The law is clear that agents cannot collect a fee from an applicant but must instead collect a fee from the lender. If you choose to be an agent, we suggest you (the Accounting Firm) contact the lender before embarking on the engagement and get a written agreement with them so you get paid. You should have a conflict waiver in the agreement with the lender, just like in your loan assistance engagement letter with the client. Disclose this arrangement with your client as well.”


UPDATE 04/19/2020 – Last night an FAQ was posted to the state Health Department’s website relating to businesses that are permitted to continue in-person operations. As we discussed on Friday’s joint association calls, the Health Department order applies to banks operating in Pennsylvania. Given this order takes effect this evening I wanted you to see the FAQ as quickly as possible.

https://www.health.pa.gov/topics/Documents/Diseases%20and%20Conditions/COVID-19%20Workplace%20Safety%20Questions.pdf

You will notice question 8 on page 2 in the FAQ is specific to banking and financial services. “Q. Do banks and financial institutions need to comply with the masking requirement if there are associated security concerns with face coverings? A. Yes. Bank employees should wear masks at all times. Customers can be asked to remove their masks to reveal their face and then recover their face after the bank employee has identified the customer. This should take place within a minimum distance of six feet.”

Additionally, I wanted to share with you a letter signed by me on behalf PACB members to Pennsylvania’s congressional delegation. The letter urges lawmakers to act quickly to approve additional funding for the PPP program and make additional changes to strengthen the lender safe harbor to facilitate and speed loan processing; create more flexibility with regard to loan disbursements; and more reasonable loan rates and terms.

The Independent Community Bankers of America (ICBA) has activated an action page for community bankers to quickly write their members of Congress. The website is https://icba.quorum.us/campaign/25772/

If you choose to write a letter to Congress, could you please send a copy to me or PACB’s Director of Government Relations Allision Coccia so that we can track the letters and any responses that follow. Allison’s email address is allison@pacb.org.

As always, if you have any questions or require additional information, please do not hesitate to contact me.


UPDATE 04/16/2020 – Update on Paycheck Protection Program (PPP)

In the near future, SBA expects the amount of processed PPP loan volume to reach the maximum amount authorized and appropriated by Congress. Once the authorization limit is reached, SBA will not be able to accept any new loan applications for the Paycheck Protection Program. 

This will mean that lenders will no longer be able to load PPP applications into the Capital Access Financial System (CAFS or E-Tran) [the Lender Gateway]. SBA is unable to maintain a queue for PPP applications. Further, PPP loan amounts may not be adjusted by lenders within the CAFS system. 

Additionally, once the authorization limit is reached, SBA will no longer be able to accept new lender applications to become PPP lenders. 

SBA is reaching out to the lending community to make them aware of this eventuality so that they may prepare and inform their small business customers of the situation.

SBA will continue to inform its lending partners of new updates should Congress authorize additional funds.  

Bill Briggs
Deputy Associate Administrator, Office of Capital Access
U.S. Small Business Administration

Here is the link to their press release: https://home.treasury.gov/news/press-releases/sm981


UPDATE 04/15/2020 – Earlier today, state Health Secretary Rachel Levin ordered that beginning Sunday, employers must require all employees and customers to wear masks at work. The order also requires companies to provide masks for workers, and deny entry to customers who are not wearing one. As well, the order requires businesses undertake other mitigation and cleaning protocols. Failure to comply could result in citations, fines or license suspension.

The order can be found here: https://www.governor.pa.gov/wp-content/uploads/2020/04/20200415-SOH-worker-safety-order.pdf


UPDATE 04/04/2020 –Despite SBA Portal Problems and Network Crashes, Community Banks Are Determined to Help Their Small-Business Customers” – PACB Press Release

“About one-third of community banks reported they could access the US Small Business Administration portal. Many more were locked-out for hours and network disruptions made the delays even longer.”


UPDATE 04/04/2020 – SBA Administrator Jovita Carranza today announced that SBA issued guidance clarifying that all faith-based organizations impacted by Coronavirus (COVID-19) are eligible to participate in the Paycheck Protection Program and the Economic Injury Disaster Loan program, without restrictions based on their religious identity or activities, to the extent they meet the eligibility criteria outlined in the CARES Act that was passed by Congress, signed into law by President Trump, and implemented by the Paycheck Protection Act Interim Final Rule.

“Following the passage of the emergency economic relief assistance, the Administration and Congress acted to ensure that small businesses and non-profits alike have access to critical funds to keep their workers paid and employed,” said Carranza. “Faith-based organizations have always provided critical social services for people in need, and SBA will make clear that these organizations may access this emergency capital.”

The Paycheck Protection Program is designed to keep small business workers employed and provide small businesses with capital through the nation’s banks and other lending institutions, with support from the SBA. The Paycheck Protection Program’s maximum loan amount is $10 million with a fixed 1% interest rate and maturity of two years. SBA will forgive the portion of loan proceeds used for payroll costs and other designated operating expenses for up to eight weeks provided at least 75% of loan proceeds are used for payroll costs.

The Economic Injury Disaster Loan program provides qualifying small businesses and non-profits with working capital up to $2 million with low interest rates and terms extending up to 30 years.

“While every American is being affected by COVID-19, the impact of this pandemic is particularly hurting our schools and places of worship, and disproportionately impacting the underrepresented communities, the sick, the elderly and the lower income,” added Carranza. “It’s vitally important that organizations focused on delivering critical social services and meeting community needs remain viable, particularly during this economically challenging time.”


UPDATE 04/03/2020 – Pennsylvania’s Community Banks Working Hard to Deliver Small-Business Payroll Relief” – PACB Press Release

“Community banks are handling the mission being given to them despite new rules being issued only 12 hours ago.”


UPDATE 04/02/2020 – Treasury.gov posted the SBA’s Interim Final Rule on the PPP.


UPDATE 04/02/2020 – PACB updates education calendar with new program dates, virtual learning, excellent learning opportunities.

PACB has revised our educational calendar in order to provide quality programming and personal connections, when those connections are deemed safe and appropriate. Until then our virtual learning is in full force!

Please know that PACB continues to diligently serve the banking industry in these times and is focused on supporting members and keeping the public and policy-makers informed regarding the strength and soundness of the banking system. 

Thank you for all that you are doing to keep the financial system for communities, businesses, neighbors and friends in the Commonwealth stable and strong.

PACB will be here to connect you when the time for connection is here!


UPDATE 04/01/2020 – Banks remain open, but make adjustments” by Jarrad Hedes, Times News Online

“As a small community bank, we know our customers,” said Craig Zurn, president and chief executive officer of Jim Thorpe Neighborhood Bank. “We have staff personally calling on some of our customers to make sure they are OK and to reassure them that we are still here to take care of their financial needs, questions or concerns. We are all in this together.”


UPDATE 03/30/2020 – Pennsylvania Gov. Wolf today expanded the list of counties where residents ordered to stay home. Additionally, Maryland Governor Larry Hogan declared the state of Maryland to shelter in place. PACB reminds banks with Pennsylvania and Maryland employees to provide their employees with a letter on company letterhead, along with the DHS CISA guidance and the Secretary Mnuchin statement.  The Mnuchin Memo is attached. A link to the ICBA sample letter for employees is below.

The Stay at Home order now includes these 26 counties: Allegheny, Beaver, Berks, Bucks, Butler, Carbon, Centre, Chester, Cumberland, Dauphin, Delaware, Erie, Lackawanna, Lancaster, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Philadelphia, Pike, Schuylkill, Washington, Wayne, Westmoreland and York counties. All stay-at-home orders now extend through April 30.

According to U.S. Department of the Treasury and Department of Homeland Security guidance, the financial services sector are identified as a Critical Infrastructure Sector. The guidance from DHS and Treasury identifies essential critical infrastructure workers during the COVID-19 response emergency, and provides guidance to state and local officials as they work to protect their communities.  The ICBA prepared a draft letter for bankers to prepare on bank letterhead for their employees. The letters identify the employee’s job description matches the criteria laid forth in the attached guidance, and they should be considered essential workforce, and shall be permitted to perform these critical functions throughout the COVID-19 emergency.

https://www.icba.org/docs/default-source/icba/crisis-response/coronavirus/draft-essential-worker-letter.docx?sfvrsn=50d22b17_2


UPDATE 03/30/2020 – PACB Schedules Member Call with ICBA to Discuss 7a Lending/PPP Program in CARES Act.

The ICBA government affairs team will explain the new CARES Act and PPP program with PACB members at 4 p.m. on Wednesday, April 1. If you would like to participate in the discussion, please RSVP to Jena Wolgemuth.


UPDATE 03/26/2020 – PACB President and CEO Kevin Shivers recently appeared on the Lincoln Radio Journal to discuss the community bankers response to the COVID-19 pandemic. The interview linked below on the Lincoln Radio Journal is broadcast on 900 radio stations across Pennsylvania.

http://www.lincolnradiojournal.com/commentary.php?title=Newsmaker_Interview


UPDATE 03/26/2020 – The US Senate passed the Coronavirus Stimulus bill last night.  It now goes on to the House for a vote.  It includes the following important provisions related to financial services:

  • Enhancing the Small Business Administration’s 7(a) loan program,
  • Providing net-operating-loss tax relief,
  • Authorizing robust FDIC deposit insurance coverage for transaction accounts,
  • Delaying implementation of the Current Expected Credit Losses accounting standard,
  • Ensuring coronavirus-related loan modifications are not classified by regulators as troubled debt restructurings,
  • Reducing the Community Bank Leverage Ratio from 9 percent to 8 percent during the COVID-19 national emergency, and
  • Funding USDA Commodity Credit Corporation support for livestock and specialty crop producers.

Language and specifics remain elusive. ICBA was not able to release a summary yet either.  As soon as we have details we will facilitate an all member call with ICBA to review its important provisions.


UPDATE 03/25/2020 – Community bankers from each PACB region provided feedback on what they are doing as a result of the coronavirus pandemic. A summary of comments follows:

  1. Most bank activity is being done over phone, online or in the bank parking lot, with very limited lobby access. 
  2. Almost every transaction can be handled via the drive thru, phone/email, in the parking lot.
  3. Some banks reported they require a phone conversation prior to coming in the branch, with the intent to exhaust all possible ways to serve the client without them having to enter the branch. 
  4. Lobby visits now by appointment, limited to safe deposit box, loan closing where information is gathered ahead of time or electronically and interaction is for signature only; Coin and currency (change orders), customers asked to pre order and wait outside; Wire transactions, large currency transactions with business customers (communication with customer in advance regarding process)
  5. Banks are instructing employees to ask customers if they have traveled in the last 10 days or have been to any of the six PA counties that are shelter in place and whether they have had any illnesses or symptoms of illnesses or have been exposed to someone who has.  Banks reserve the right to restrict access to anyone they don’t feel comfortable allowing in to the offices.
  6. Opening accounts by obtaining information over the phone, preparing papers and running them out to the parking lot, or via drive-thru, where the customer is waiting in their car.  
  7. Banks are rotating front-line staff, 2-3 days on and then 2-3 days off, while instructing staff aged 70+ to stay at home, with pay, while most back-office staff is able to work remotely.

What is the proper course of action to take if/when an employee tests positive?

From the CDC: If an employee is confirmed to have COVID-19 infection, employers should inform fellow employees of their possible exposure to COVID-19 in the workplace but maintain confidentiality as required by the Americans with Disabilities Act (ADA). The fellow employees should then self-monitor for symptoms (i.e., fever, cough, or shortness of breath): https://www.cdc.gov/coronavirus/2019-ncov/downloads/sick-with-2019-nCoV-fact-sheet.pdf

What is the proper protocol for cleaning/sanitizing an office? What products are effective?

Please see the guidance from the CDC: https://www.cdc.gov/coronavirus/2019-ncov/community/organizations/cleaning-disinfection.html

How do banks prepare for COVID-19?

https://www.cdc.gov/coronavirus/2019-ncov/community/guidance-business-response.html


UPDATE 03/24/2020 – Tune in to the Pennsylvania Cable Network (PCN) at 12:10 p.m. on Wed. March 25, to hear PACB President and CEO Kevin Shivers discuss the response by community bankers to the Coronavirus pandemic.

Missed the broadcast? VISIT PCNTV.COM/CORONAVIRUS/, scroll down to the FREE TO WATCH – Coronavirus Impact section & select Coronavirus Impact 03/25/20


UPDATE 03/22/2020 – Pennsylvania’s Banks Committed to Providing Essential Services to Consumers and Businesses During COVID-19 Health Emergency” – A joint industry news release

“Access to financial institutions is essential for consumers, businesses and working families to quickly utilize the checks that the federal government seeks to provide as soon as possible and, if necessary, access, manage, and utilize any other assets they may have, such as retirement, securities and trust accounts.”


UPDATE 03/20/2020 – Community banks are showing their strength amid COVID-19 crisis” op-ed by Kevin Shivers, Central Penn Business Journal

“The top priority of our Pennsylvania Association of Community Bankers (PACB) family is to protect the health and well-being of our employees, our customers, and every Pennsylvanian. To that end, our members have taken significant safety measures, such as expanded drive-thru banking hours and lanes and assigned tellers to meet the increased demand. In addition to their responsibility to keep customers and employees safe, community banks also are making special arrangements with customers who still depend on personalized banking services.”


UPDATE 03/20/2020 – As community bankers across Pennsylvania navigate choppy waters, the PACB would like to convene a peer discussion for bankers. This is a forum for our members to gather and learn how each is dealing with the access, HR and other issues everyone is currently experiencing. Additionally, PACB wants to serve as a clearinghouse for useful resources so everyone can pull through this pandemic and the economic fallout.  

On Monday, March 23rd at 4:00 pm, PACB will host a conference call/video for all of its members to work through the current situation, as well as post questions that our associate members can provide answers/insight to. PACB is here to be a resource for you at this time and we feel the ability to speak to your peers and ask questions will prove to be a benefit to you.

In order to participate in this 45 minute conference, please email jena@pacb.org and you will receive connection details.

We will remind everyone that the PACB anti-trust policy will be complied with during these calls.


UPDATE 03/19/2020 – Federal banking regulators are looking to offer banks additional regulatory points for lending to mid- to low-income consumers who have been impacted by the coronavirus pandemic, Reuters reports, citing an official within a banking agency. One of the plans being discussed is to offer regulatory credits to lenders through the Community Reinvestment Act. Additionally, regulators are also considering pushing banks to show customers leniency in the repayment of automobile and home loans.

After taking emergency actions over the past week, the U.S. Federal Reserve could take additional measures to ease liquidity strains facing the financial system and the U.S. economy more broadly. Potential options for the Fed involve steps that either require congressional approval or that the central bank can undertake already. They include technical measures like increasing its interventions into short-term funding markets as well as broadening the range of parties the Fed can loan to, like small business and municipal bond issuers.


UPDATE 03/16/2020 – PACB staff will be working remotely, effective immediately, in response to the coronavirus (COVID-19) pandemic.  We hope to be back in the office some time during the week of March 30, but we will be guided by the recommendations of the the Governor, PA Department of Health, and other relevant public health officials in making that decision. 

Despite the fact that we are taking this extraordinary step, our staff is committed to carrying out ongoing responsibilities.  We will be readily accessible by email or by leaving a voicemail on our office phone system.  Although we will not be physically present in the PACB office, we are committed to being readily available to our members and allies.



ICBA RESOURCES & UPDATES

UPDATE 05/26/2020 – ICBA is calling on community bankers to provide Congress with policy recommendations for the next COVID-19 relief bill.

With Congress considering what to include in the next relief package, ICBA’s Be Heard grassroots action center offers a customizable letter to lawmakers on pro-community bank provisions.

The custom letter emphasizes ICBA-advocated policies on Paycheck Protection Program reform, capital and accounting relief, liability protections, a tax exemption for serving rural communities, and more.

ICBA will continue working with Congress and the Trump administration to implement pro-growth policies as the debate over the next stimulus continues.


UPDATE 05/22/2020 – The Small Business Administration released long-sought guidance on submitting the initial SBA Form 1502 for Paycheck Protection Program loans. Lenders are required to submit the form to report on PPP loans and collect the processing fees on fully disbursed loans.

In a new Procedural Notice, the SBA lays out how to create an account with the Fiscal Transfer Agent and use the portal to submit loan information. Lenders must use separate 1502 reports for PPP loans as opposed to regular 7(a) loans.

Under an interim final rule approved earlier this week, the deadline to submit the initial SBA Form 1502 for PPP loans is now the later of: (1) May 29, 2020, or (2) 10 calendar days after disbursement or cancellation of the PPP loan.

That interim final rule also extends the repayment date for the PPP certification safe harbor regarding the borrower’s need for the loan. Under that policy, any borrower that applied for a PPP loan prior to April 24 and repaid the loan in full by May 18 will be deemed by SBA to have made the required certification in good faith.

ICBA and community bankers have repeatedly called on the agencies to provide needed PPP guidance. Additional PPP guidance and resources are available on Treasury’s PPP webpage and ICBA’s COVID-19 resource center.


UPDATE 05/21/2020 – The OCC released its final rule to reform Community Reinvestment Act regulations. Because the FDIC and Federal Reserve declined to sign on to the rule, it will apply only to national banks and savings associations.

The 372-page final rule clarifies what qualifies for CRA consideration, updates how banks define assessment areas, and introduces quantitative measures to assess the volume and value of activity, among many other provisions. The rule is set to take effect in October, though examination standards will not be in place for two years.

The FDIC said Wednesday it will not join the OCC in finalizing the agency proposal and that it recognizes the outsized effort of community banks to support small businesses and families amid the COVID-19 pandemic. The Federal Reserve said in December that it would not join the other agencies when the rule was proposed.

In a statement, ICBA said it supports provisions in the final rule allowing community banks up to $2.5 billion in assets to remain under the existing CRA framework—as advocated by ICBA in its comment letter. The new opt-in threshold is up from $500 million in the OCC’s proposal.

Among other updates that reflect ICBA advocacy, the final rule also provides that retail loan originations sold within a year of origination will receive credit for 100 percent of the origination value—up from 25 percent for loans sold within 90 days. It also will provide additional consideration to minority depository institutions, as advocated by ICBA.

However, community banks remain concerned that the new regulatory framework is too complex and would impose new and excessive data-collection costs that could inhibit their ability to serve local communities, ICBA President and CEO Rebeca Romero Rainey said. ICBA will continue reviewing the final rule and working with all regulatory agencies on CRA modernization.


UPDATE 05/20/2020 – The Small Business Administration said it is extending the deadline for Paycheck Protection Program lenders to submit the initial SBA Form 1502, for which the agency has yet to provide detailed guidance.

In the latest update to its PPP frequently asked questions, SBA said it is extending the deadline for lenders to electronically upload the initial SBA Form 1502 to the later of: (1) May 29, 2020, or (2) 10 calendar days after disbursement or cancellation of the PPP loan.

Lenders are required to submit the form to report on PPP loans and collect the processing fees on fully disbursed loans to which they are entitled, though SBA has yet to provide guidance on the Form 1502 reporting process.

PPP lenders should not report their PPP loans on SBA Form 1502 until the SBA has released additional guidance, SBA 7(a) Fiscal and Transfer Agent Colson Services Corp. says in an online advisory.

The previous Form 1502 deadline for loans approved before the form is available was this Friday, May 22. SBA said the new deadline will be implemented through revisions to its PPP interim final rules.

Additional PPP guidance and resources are available on Treasury’s PPP webpage and ICBA’s COVID-19 resource center.


UPDATE 05/19/2020 – ICBA launched a new Paycheck Protection Program loan campaign to connect small businesses with community banks that continue to offer these loans.

The multichannel effort features a focused community bank finder along with targeted efforts on multiple social and digital channels, including Facebook’s Economic Relief for Small Businesses Portal.

ICBA also added to its Tell Your Story Toolkit new graphic assets that community banks can use to promote their PPP lending.

A recent ICBA survey found that community bankers funded some 80 percent of loan requests during the first round of PPP. The SBA has reported that community banks with less than $10 billion in assets have made roughly $63 billion in loans during the second round, while those with between $10 billion and $50 billion in assets account for some $30 billion.


UPDATE 05/18/2020 – The Small Business Administration and Treasury Department released the Paycheck Protection Program Loan Forgiveness Application and instructions.

The application form and instructions inform borrowers how to apply for forgiveness of their PPP loans, consistent with the CARES Act. The SBA also said it will also soon issue regulations and guidance to help borrowers complete their applications and inform lenders of their responsibilities.

The form and instructions include:

  • Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles.
  • Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after borrowers received their PPP loan.
  • Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness.
  • Statutory exemptions from loan forgiveness reduction based on rehiring by June 30.
  • The new exemption for borrowers whose good-faith, written offers to rehire workers were declined.

ICBA and community bankers have repeatedly called on the agencies to provide guidance on PPP loan forgiveness.

Community bankers who continue to have trouble with the SBA’s E-Tran and SBA Connect Lender Gateway portals can direct assistance questions to the SBA at 833-572-0502 or cls@sba.gov. Additional guidance and resources are available on Treasury’s PPP webpage and ICBA’s COVID-19 resource center.


UPDATE 05/15/2020 – The Small Business Administration said it has marked some loans in Paycheck Protection Program lender portfolios with a “research” status requiring further review by lenders by 5 p.m. (Eastern time) today.

The SBA issued a document with step-by-step instructions on how to use a new search functionality within the E-Tran Servicing section of the Capital Access Financial System to locate loans with the “research” designation and to review and confirm records on those loans.

The SBA said lenders should review all fields in these files for accuracy and completeness, including borrower names and employer identification numbers or Social Security numbers. If necessary, lenders should contact borrowers to determine whether a loan should be cancelled, SBA said.

The SBA also announced it has changed how it receives PPP loan data from lenders via E-Tran. Business type will now determine whether a loan application should be submitted with either an SSN or EIN. SSNs can no longer be used in place of a primary taxpayer identification number for types of businesses that require an EIN, it said.


UPDATE 05/14/2020 – The SBA and Treasury Department announced a safe harbor that will apply to reviews of good-faith certifications concerning the necessity of Paycheck Protection Program loan requests.

In the latest update to their frequently asked questions on the program, the agencies said any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.

The agencies said:

  • Borrowers with loans below this threshold are generally less likely to have access to adequate sources of liquidity, and the safe harbor will promote economic certainty for them.
  • The SBA previously said all PPP loans over $2 million—and other loans as appropriate—will be subject to review.  
  • Borrowers with loans greater than $2 million that do not satisfy this safe harbor may still have an adequate basis for making the required good-faith certification.
  • If SBA determines that a borrower lacked an adequate basis for the required certification, it will seek repayment of the outstanding PPP loan balance and will inform the lender that the borrower is not eligible for loan forgiveness.
  • If the borrower repays the loan after receiving notification from SBA, the agency will not pursue administrative enforcement or referrals to other agencies.
  • SBA’s determination on these certifications will not affect its loan guarantees, which remain in place.

Community bankers who continue to have trouble with the SBA’s E-Tran and SBA Connect Lender Gateway portals can direct assistance questions to the SBA at 833-572-0502 or cls@sba.gov. Additional guidance and resources are available on Treasury’s PPP webpage and ICBA’s COVID-19 resource center.


UPDATE 05/13/2020 – The FDIC approved a proposed rule to mitigate the effects of participating in the Paycheck Protection Program and other emergency programs on deposit-insurance assessments.

The proposed rule also would apply to the Federal Reserve’s PPP Lending Facility and Money Market Mutual Fund Liquidity Facility. It would ensure banks are not subject to significantly higher assessments for participating in these programs.

The FDIC is proposing an effective date by June 30, 2020, and an application date of April 1, 2020, which would ensure that the changes are applied to assessments starting in the second quarter.

Comments are due seven days after publication in the Federal Register.


UPDATE 05/06/2020 – ICBA called on the Treasury Department and Small Business Administration to provide additional guidance on the process for obtaining forgiveness of Paycheck Protection Program loans.

In a letter, ICBA urged the agencies to:

  • Reconsider the SBA’s non-statutory requirement that 75 percent of PPP loan proceeds must be spent on retaining payroll. ICBA recommends lowering the payroll expense requirement to no more than 50 percent to help small businesses meet other overhead costs.
  • Provide a straightforward, easy-to-apply approach to loan forgiveness, such as developing a PPP loan-forgiveness calculator that will allow borrowers and lenders to easily determine the forgiven amount.
  • Establish a presumption of compliance for all loans with an original balance of $1 million or less based on the borrower’s certification that the funds were used in accordance with the terms of the program.
  • Address the many questions that have arisen related to PPP loan forgiveness, such as the consequences if borrowers spend less than 75 percent of their PPP loans on payroll and what constitutes full-time staff and new hires.

UPDATE 05/05/2020 – The Treasury Department updated its Paycheck Protection Program frequently asked questions with new guidance on loan forgiveness, seasonal employers, and nonprofit hospitals. The latest updates note that:

  • SBA and Treasury intend to issue an interim final rule excluding laid-off employees whom borrowers have offered to rehire (but who decline to return to work) from the loan-forgiveness-reduction calculation.
  • Seasonal employers that elect to use an alternative base period to calculate maximum PPP loan amounts can make all required certifications on the Borrower Application Form.
  • Nonprofit hospitals may qualify as nonprofit organizations under the CARES Act.

The SBA reported Sunday that between April 27 and May 1, lenders with less than $10 billion in assets made more than $55 billion in loans during the second round of the PPP. Lenders with between $10 billion and $50 billion in assets made nearly $28 billion in PPP loans during that time.

ICBA, affiliated state associations, and community bankers worked to ensure at least $60 billion of the PPP funds were aside for community financial institutions, including at least $30 billion for institutions under $10 billion in assets and another $30 billion for those with between $10 billion and $50 billion in assets.

Community bankers who continue to have trouble with the SBA’s E-Tran and SBA Connect Lender Gateway portals can direct assistance questions to the SBA at 833-572-0502 or cls@sba.gov.

Additional guidance and resources are available on Treasury’s PPP webpage and ICBA’s COVID-19 resource center.


UPDATE 05/04/2020 – The Small Business Administration on Friday released guidance for Paycheck Protection Program lenders on selling whole PPP loans.

According to the SBA procedural notice, loans must be sold to lenders that have signed loan guarantee agreements. SBA’s prior written consent is not required for whole-loan sales, though originating lenders must immediately notify SBA’s Office of Credit Risk Management.

Also Friday, the IRS released a notice on deductibility for federal income tax purposes of certain otherwise deductible expenses incurred in a taxpayer’s trade or business when the taxpayer receives a PPP loan.

Specifically, the IRS notice clarifies that no deduction is allowed if the payment of the expense results in forgiveness of a covered loan under the CARES Act and the income associated with the forgiveness is excluded from gross income for purposes of the law.

Community bankers who continue to have trouble with the SBA’s E-Tran and SBA Connect Lender Gateway portals can direct assistance questions to the SBA at 833-572-0502 or cls@sba.gov.

Additional guidance and resources are available on Treasury’s PPP webpage and ICBA’s COVID-19 resource center.


UPDATE 05/01/2020 – The Treasury Department confirmed that while the SBA plans to review individual Paycheck Protection Program loans, the reviews will not affect SBA’s guarantee of loans for which lenders complied with their PPP obligations.

In the latest update to Treasury’s frequently asked questions on the program, the department reiterated its announcement earlier this week that it will review all loans over $2 million, in addition to other loans as appropriate, after lenders submit borrower loan-forgiveness applications. Additional guidance on that is still to come.

The key point is that the reviews will not affect loan guarantees for lenders that follow the obligations set forth in paragraphs III.3.b(i)-(iii) of the April 2 Paycheck Protection Program Rule. These obligations are further explained in the first FAQ in the Treasury document.

In other words, lenders that meet their obligations will not be penalized if borrowers do not meet theirs, and the guarantee will remain.

Community bankers who continue to have trouble with the SBA’s E-Tran and SBA Connect Lender Gateway portals can direct assistance questions to the SBA at 833-572-0502 or cls@sba.gov.

Additional guidance and resources are available on Treasury’s PPP webpage and ICBA’s COVID-19 resource center.


UPDATE 04/30/2020 – The Small Business Administration for nearly eight hours yesterday only accepted Paycheck Protection Program loans from lenders with less than $1 billion in assets. The SBA said it reserved its systems for these banks between 4 p.m. and 11:59 p.m. (Eastern time) to ensure access for the smallest lenders and their small-business customers.

The SBA noted that lenders of all sizes will continue to be able to submit PPP loans outside this timeframe. The agency said it will work with the Treasury Department to evaluate whether to create a similar reserved time again in the future.

ICBA, affiliated state associations, and community bankers worked to ensure at least $60 billion of the PPP funds have been set aside for community financial institutions, including at least $30 billion for institutions under $10 billion in assets and another $30 billion for those with between $10 billion and $50 billion in assets. This has helped community banks meet their PPP customers’ needs.

The SBA reported earlier this week that community banks under $10 billion in assets neared the $30 billion in PPP funds set aside for them by the law restarting the program. These entities will continue to be able to submit loans to be funded by the $250 billion in general funds authorized for the second phase of the PPP.

ICBA President and CEO Rebeca Romero Rainey this week said in a national news release that many community banks found themselves continually kicked out of the SBA systems after the PPP went live. Community bankers can direct E-Tran and SBA Connect Lender Gateway assistance questions to the SBA at 833-572-0502 or cls@sba.gov.

Additional guidance and resources are available on Treasury’s PPP webpage and ICBA’s COVID-19 resource center.


UPDATE 04/29/2020 – Community banks under $10 billion in assets neared the $30 billion in Paycheck Protection Program funds set aside for them by the law restarting the program, according to reports of Small Business Administration data.

The SBA reportedly said that as of 1 p.m. (Eastern time) Tuesday, these institutions made 331,119 approved loans worth nearly $30 billion. They will continue to be able to submit loans to be funded by the $250 billion in general funds authorized for the second phase of the PPP.

Lenders with between $10 billion and $50 billion in assets have been approved for nearly 84,000 loans worth more than $10 billion. The law allocated $30 billion of the overall $310 billion for these institutions.

Overall, the SBA said it has approved more than 475,000 loans worth more than $52 billion from more than 5,100 lenders. The agency said the average loan size under phase two of the PPP is $111,000, down from $207,000 in the first round. Roughly 85 percent of the loans have been worth $150,000 or less, it said.

ICBA continues encouraging community bankers to use its Be Heard grassroots alert to tell policymakers to ensure community banks have equitable access to PPP systems and to demand answers on why so many community banks have been locked out from submitting loans.


UPDATE 04/28/2020 – ICBA has heard loud and clear about the many problems community bankers have had with the relaunch of the Paycheck Protection Program—and they are unacceptable, ICBA President and CEO Rebeca Romero Rainey said in a message to community bankers.

Romero Rainey encouraged community bankers to use ICBA’s Be Heard grassroots action center to tell policymakers to ensure community banks have equitable access to PPP systems. The grassroots alert also demands answers and solutions about why so many community banks were locked out from submitting loans.

The message followed a national news release in which Romero Rainey said most community banks found themselves continually kicked out of the E-Tran system after the PPP went live and received little information from the SBA and Treasury.

The SBA told Congress that it has implemented “pacing” for its CAFS/E-Tran system to limit the number of PPP applications that can be submitted each hour. The agency said the pacing may cause users to experience error messages in both the Connect Lender Gateway and E-Tran, a message that the application is taking longer than normal to process, server timeout messages, or a lack of access to the systems. SBA is advising lenders to continue trying to enter new applications.

The SBA separately said that it processed more than 100,000 PPP loans by more than 4,000 lenders by 3:30 p.m. (Eastern time) Monday. The agency said that E-Tran response times have been slowed partly because there are double the number of users accessing the system compared with any day during the initial round of PPP. The SBA is actively working to ensure system security and integrity while loan processing continues, it said.

Treasury and SBA also released additional PPP guidance that said the minimum amount of lender-approved and SBA-ready PPP loans that a lender must have ready for the XML file submission process is now 5,000 loans—down from 15,000. Those XML files of 5,000 or more approved PPP loans were due to SBA by 9 p.m. (Eastern time) last night.

Community bankers can direct E-Tran assistance questions to the SBA at 833-572-0502 or cls@sba.gov. Additional guidance and resources are available on Treasury’s PPP webpage and ICBA’s COVID-19 resource center.


UPDATE 04/27/2020 – The Small Business Administration and Treasury Department on Sunday announced measures they will take during the next phase of the Paycheck Protection Program.

In a message to lenders, the agencies announced the following measures:

  • Pacing the number of loans processed in the E-Tran system for participating lenders when processing resumes at 10:30 a.m. (Eastern time) today.
  • Instituting a maximum dollar amount at 10 percent of PPP funding authority that any lending institution will be able to originate, exclusive of the additional $60 billion preserved for lenders with assets under $50 billion.
  • Implementing operational standards to ensure that lenders access PPP funds based on their asset size.
  • Ensuring the PPP continues to operate on a first-come, first-serve basis.
  • Issuing new guidance allowing lenders that have received a significant amount of loan applications to make a one-time bulk submission of XML files to E-Tran.

ICBA this weekend confirmed that any PPP applications received by lenders prior to April 25 can be processed based on guidance in effect prior to that day. Any applications received by lenders moving forward will have to comply with new Treasury and SBA guidance.

That clarification follows this weekend’s release of additional resources for PPP participants, including:

All additional prior guidance can be found on Treasury’s PPP webpage. Additional resources for community banks are available on ICBA’s COVID-19 resource center.

The new law restarting the PPP dedicates at least $30 billion for loans from institutions under $10 billion in assets and another $30 billion for those with between $10 billion and $50 billion in assets. This allocation reflects ICBA, affiliated state association, and community banker advocacy for dedicating program funds for loans from community banks under $50 billion in assets.


UPDATE 04/24/2020 – The House passed bipartisan legislation to restart the Paycheck Protection Program and dedicate a portion of the funding exclusively to community banks, sending the bill to President Trump to be signed into law.

The bill authorizes an additional $310 billion in PPP funds with at least $60 billion set aside for loans made by community financial institutions, including minority depository institutions and Community Development Financial Institutions.

Specifically, the bill dedicates at least $30 billion for loans from institutions under $10 billion in assets and another $30 billion for those with between $10 billion and $50 billion in assets.

The allocations reflect repeated ICBA and community banker calls for policymakers to quickly pass a PPP funding extension and dedicate at least a quarter of the funds for loans from community banks under $50 billion in assets. ICBA has also urged the Treasury Department and SBA to immediately prepare to administer the community bank funding allocation.

The White House indicated President Trump will sign the bill into law today.

More information on the program and other elements of the federal response to the COVID-19 emergency is available on ICBA’s online resource center. ICBA will continue keeping community bankers posted of the very latest information as the agencies begin to restart the PPP and allocate funds.


UPDATE 04/23/2020 – The House today is set to take up Senate-passed legislation that includes an additional $310 billion to restart the Paycheck Protection Program with at least $60 billion set aside for community banks.

The bipartisan bill responding to the COVID-19 outbreak dedicates at least $30 billion of the PPP to institutions under $10 billion in assets and another $30 billion to those with between $10 billion and $50 billion in assets.

ICBA and the nation’s community bankers have repeatedly called on policymakers to quickly extend the PPP and dedicate at least a quarter of the funds to community banks under $50 billion in assets.

In an American Banker op-ed published ahead of the Senate vote, ICBA Chairman Noah Wilcox urged Congress to ensure the legislation includes these policies.

ICBA also this week urged the Treasury Department and SBA to begin preparing to administer the community bank funding allocation. Community bankers can continue to use ICBA’s Be Heard grassroots action center to urge Congress to immediately approve the legislation.


UPDATE 04/22/2020 – The Senate passed bipartisan legislation that includes an additional $310 billion to restart the Paycheck Protection Program and an ICBA-advocated $60 billion minimum set aside for community banks.

The legislation responding to the COVID-19 outbreak dedicates at least $60 billion of the PPP funds to community financial institutions, including $30 billion for institutions under $10 billion in assets and another $30 billion for those with between $10 billion and $50 billion in assets.

ICBA and the nation’s community bankers have repeatedly called on policymakers to quickly pass a PPP funding extension and dedicate at least a quarter of the funds to community banks under $50 billion in assets.

In an American Banker op-ed published ahead of the vote, ICBA Chairman Noah Wilcox called on policymakers to ensure the legislation includes the ICBA-advocated policies to support local communities.

Looking ahead toward implementation by the Treasury Department and SBA, ICBA urged the agencies to begin preparing to administer the community bank funding allocation.

With the bill headed to the House for a final vote tomorrow, ICBA continues calling on community bankers to urge Congress to immediately approve the additional PPP funding and community bank allocation via ICBA’s Be Heard grassroots action center.


UPDATE 04/21/2020 – With the Senate scheduled to reconvene today amid negotiations over the next bill responding to the COVID-19 outbreak, ICBA is urging community bankers to continue their grassroots outreach on the Paycheck Protection Program.

While congressional and administration officials continue negotiations for some $300 billion in additional PPP funding, ICBA is working to ensure lawmakers include an ICBA-advocated provision that would dedicate 25 percent of the funds to community banks.

ICBA continues calling on community bankers to urge Congress to immediately approve additional funding for the PPP and the carve-out for community banks. ICBA offers a custom message to lawmakers on its Be Heard grassroots action center.

The Senate is set to reconvene at 4 p.m. (Eastern time) today, and the House has alerted its members to be ready to convene in Washington by 10 a.m. tomorrow for a recorded vote. ICBA will keep community bankers updated on the latest developments.


UPDATE 04/21/2020 – The Treasury Department today corrected a previous notice to financial institutions clarifying that Economic Impact Payment checks will be dated for this Friday, April 24—not tomorrow, April 22, as previously stated.

Treasury began mailing hard-copy checks on Saturday, with twice-daily mail pick-ups starting yesterday. Some customers have begun seeking to deposit the post-dated checks, including through remote deposit.

While Treasury has not yet issued written guidance on accepting the checks, banks are not expected to return EIP checks deposited before the April 24 pay date.

More information on the EIPs are available on ICBA’s COVID-19 resource center. ICBA will continue to keep community banks informed of the latest developments.


UPDATE 04/20/2020 – ICBA President and CEO Rebeca Romero Rainey called on community bankers to tell Congress to immediately approve additional funding for the SBA’s Paycheck Protection Program now that it has exhausted its funds.

Romero Rainey urged community bankers to use ICBA’s Be Heard grassroots action center to tell policymakers to immediately approve at least $250 billion in new PPP funds.

The customizable grassroots alert also calls on lawmakers to dedicate 25 percent of program funds to community banks with $50 billion or less in assets.

ICBA’s other suggested reforms include more workable loan terms, more flexibility in the timing of loan disbursements, expanded PPP loan uses, a robust lender safe harbor, and suspending “beneficial ownership” rules.


UPDATE 04/17/2020 – With the SBA’s Paycheck Protection Program officially out of funds, ICBA is urging community bankers to tell Congress to immediately approve additional funding for the small-business program.

Community bankers can use ICBA’s Be Heard grassroots action center to tell policymakers to immediately approve at least $250 billion in new PPP funds.

The customizable grassroots alert also calls on lawmakers to dedicate 25 percent of program funds to community banks with $50 billion or less in assets.

ICBA’s other suggested reforms include more workable loan terms, more flexibility in the timing of loan disbursements, expanded PPP loan uses, a robust lender safe harbor, and suspending “beneficial ownership” rules.


UPDATE 06/16/2020 – ICBA called on policymakers to immediately approve additional funds for the Paycheck Protection Program as the initial round of program funds run out. ICBA is urging Congress to advance at least $250 billion in additional funds immediately for the Small Business Administration program.

ICBA is urging community bankers to use its Be Heard grassroots action center to tell policymakers to immediately approve the new PPP funds.

ICBA also strongly supports dedicating 25 percent of program funds to community banks with $50 billion or less in assets. ICBA’s other suggested reforms include:

  • More workable loan terms to ensure community banks are not expected to extend credit at rates that are below funding costs.
  • More flexibility in the timing of loan disbursements to ensure the smooth flow of funds.
  • Expanded PPP loan uses to help small business meet significant non-payroll expenses.
  • A robust lender safe harbor to facilitate and speed loan processing.
  • Temporarily suspending “beneficial ownership” rules for applicants that are not current customers.

ICBA this week called for the additional funds and reforms in a message to congressional leaders. In a separate joint letter with more than 250 state and national organizations, ICBA on Wednesday again called on lawmakers to quickly advance additional funds.

ICBA will continue working with policymakers to continue the program and ensure it reaches as many small businesses and employees as possible.


UPDATE 04/15/2020 – The Treasury Department and Small Business Administration issued a new interim final rule answering key ICBA questions about the Paycheck Protection Program relating to bank directors, partnerships, self-employed borrowers, and more. The new interim rule supplements the one that was issued on April 2.

  • Participating PPP lenders are not barred by existing SBA restrictions from lending to outside bank directors and shareholders that own less than 30 percent equity in the bank. The rule notes that lenders should comply with all other state and federal regulations concerning loans to associates.
  • Officers and key employees of a PPP lender may not obtain a PPP loan from the lender in which they are associated but may borrow from a different PPP lender.
  • Self-employed individuals should complete IRS Schedule C for 2019, line 31, to determine self-employment income for 2019, and use that amount both for computing the maximum loan amount and for computing the allowable salary/payroll costs that may be forgiven during the eight-week period following loan disbursement. Self-employed individuals that have employees should also include the gross wages and tips computed using 2019 IRS Form 941.
  • Partners in a partnership should apply for PPP loans at the partnership level, not as self-employed individuals. Instead, self-employment income of active partners (up to $100,000 annualized) may be reported as a payroll cost by the partnership.
  • Pledging 7(a) loans to a Federal Reserve Bank or Federal Home Loan Bank, among others, does not require the SBA’s prior written consent or a notice to the SBA.
  • Businesses that are otherwise eligible for a PPP loan are not rendered ineligible due to receipt of legal gaming revenues if certain conditions are met.

Treasury and SBA also released updates to their PPP FAQ document. Among the newest FAQs, the agencies clarify that lenders must collect the information and certifications contained in the borrower application form and fulfill their obligations under the PPP final rule before submitting a PPP loan application.

ICBA is adding this latest information to its frequently asked questions on the PPP and other elements of the federal response to the COVID-19 outbreak. More information from the agencies is available on the SBA’s PPP landing page.

SBA is taking questions at 7aPaycheckLoanProgramQuestions@sba.gov. However, the auto reply notes that SBA might not be able to provide an individual response due to the high volume of inquiries and cannot answer E-Tran or Capital Access Financial System questions via that email address. E-Tran assistance questions should continue to be directed to the hotline 833-572-0502 or cls@sba.gov.

Further, SBA has clarified that E-Tran users should choose “PPP” from the drop-down menu, not “7(a),” which will apply a set of requirements that aren’t relevant to PPP.

ICBA will continue keeping community bankers informed of the very latest developments on the PPP and other elements of the federal response to the COVID-19 pandemic.


UPDATE 04/14/2020 – Join ICBA Thursday, April 16, for the next Community Bank Briefing on the coronavirus outbreak. Spots are limited and are expected to fill up. Be sure to register ASAP:

ICBA Community Bank Briefing #6: COVID-19 Regulatory Update & Q&A
April 16 | 2 p.m. (Eastern)

This briefing addresses ICBA’s continued advocacy related to the COVID-19 outbreak, federal banking agency action to date–including Q&A on the SBA “Paycheck Protection Program”–and the remarkable response of community banks across the country.

ICBA experts highlight the latest guidance from the Treasury and SBA. While key questions remain unanswered, the ICBA team addresses the action it continues to take to push for more details and information for community banks.

Participants are encouraged to bring questions to the briefing as the ICBA team spends a majority of the time taking inquiries from community bankers.

Speakers:

  • Rebeca Romero Rainey, ICBA President & CEO
  • Karen Thomas, Senior Executive Vice President, Government Relations & Public Policy
  • Paul Merski, Group Executive Vice President, Congressional Relations
  • Chris Cole, Executive Vice President, Senior Regulatory Counsel
  • Ron Haynie, Senior Vice President, Mortgage & Finance Policy
  • Steve Keen, Vice President, Congressional Relations
  • James Kendrick, First Vice President, Accounting & Capital Policy

REGISTER HERE


UPDATE 04/14/2020 – ICBA Chairman Noah Wilcox and ICBA Vice Chairman Brad Bolton went on the Fox Business network to discuss how community banks are meeting the needs of their small-business customers amid the COVID-19 pandemic.

Appearing on Monday’s episode of Mornings with Maria, Wilcox and Bolton said community banks have stepped up to the challenge and are closing loans under the Paycheck Protection Program despite problems accessing the program’s loan portal.

Wilcox told host Maria Bartiromo that his Minnesota Lakes Bank is making roughly 40 percent of its PPP loans to new customers that have been turned away by larger financial institutions, while Bolton urged small businesses to use ICBA’s Community Bank Locator to find a community bank near them.

The interview followed ICBA President and CEO Rebeca Romero Rainey’s Friday appearance on the CBS Evening News, where she said community banks need more responsiveness and clarity from the Small Business Administration on the PPP. That broadcast cited letters from ICBA and state banking associations seeking updates to the PPP, including enhanced support for SBA systems and additional funds allocated for community banks.

ICBA continues to press the Treasury Department and SBA for answers to the questions that remain unanswered about the PPP, including whether banks can lend to their directors with eligible small businesses and whether owner draws or distributions count as payroll costs.

ICBA continues to update its frequently asked questions on the PPP with the latest from the SBA’s frequently asked questions and other information available on the agency’s PPP landing page.


UPDATE 04/13/2020 – The Treasury Department and Small Business Administration this weekend answered key questions about the Paycheck Protection Program. In updates to the agencies’ PPP frequently asked questions, the agencies confirmed:

  • Lenders do not need to receive the usual separate SBA Loan Authorization document for the PPP loan in order for it to be guaranteed, though lenders must execute SBA Form 2484 (the PPP Lender Application form) for each PPP loan and receive a loan number for each originated PPP loan.
  • Lenders may include in their promissory notes for PPP loans any terms and conditions, including those relating to amortization and disclosure, that are not inconsistent with Sections 1102 and 1106 of the CARES Act, the PPP interim final rule and guidance, and SBA Form 2484. (For example, the act, interim rule and Form 2484 specify the 1 percent interest rate, two-year maturity and six-month payment deferral.)

SBA has also launched an email address for questions at 7aPaycheckLoanProgramQuestions@sba.gov. However, the auto reply notes that SBA might not be able to provide an individual response due to the high volume of inquiries and cannot answer E-Tran or Capital Access Financial System questions via that email address. E-Tran assistance questions should continue to be directed to the hotline 833-572-0502 or cls@sba.gov.

Further, SBA has clarified that E-Tran users should choose “PPP” from the drop-down menu. Do not choose “7(a),” which will apply a set of requirements that aren’t relevant to PPP.

ICBA has added this latest information to its own FAQs on the PPP and other elements of the federal response to the COVID-19 outbreak, including details of the Federal Reserve’s new liquidity facility for PPP loans. These latest updates follow PPP clarifications earlier this week related to promissory notes, disbursements, and loan forgiveness.

Nevertheless, key questions remain unanswered, ICBA President and CEO Rebeca Romero Rainey noted in a weekend message to community bankers. ICBA continues to ask Treasury and the SBA to provide definitive guidance on whether banks can lend to their directors with eligible small businesses and when owner draws or distributions count as payroll costs.


UPDATE 04/10/2020 – The Federal Reserve took several actions to support the federal response to the COVID-19 pandemic, including providing details and a term sheet on its previously announced facility for SBA-guaranteed Paycheck Protection Program loans and launching a new Main Street Lending Program.

The Fed’s Paycheck Protection Program Facility provides liquidity by extending credit at a rate of 35 basis points on a non-recourse basis to eligible financial institutions that originate PPP loans, taking the loans as collateral at face value.

Through the Main Street Lending Program, the Fed will purchase up to $600 billion in four-year loans to companies with up to 10,000 workers or revenues of less than $2.5 billion. Banks will retain a 5 percent share and sell the remaining 95 percent to the Main Street facility, with principal and interest payments deferred for one year.

Under the Main Street Lending Program, eligible banks may originate new Main Street loans or use the facility to increase the size of existing loans to businesses. The minimum loan size is $1 million. The loans carry a four-year maturity and an adjustable rate of SOFR plus 250-400 basis points.

The Fed also expanded its Primary and Secondary Market Corporate Credit Facilities and Term Asset-Backed Securities Loan Facility, which together will support up to $850 billion in credit. And it established a Municipal Liquidity Facility that will offer up to $500 billion in lending to states and municipalities.

The Fed released detailed term sheets on the PPP liquidity facilitynew and expanded loans under the Main Street Lending Program, and the other programs. Additionally, ICBA updated its frequently asked questions on the federal response to COVID-19 with details of these and other emergency programs.


UPDATE 04/09/2020 – The Treasury Department and Small Business Administration answered key ICBA questions about the Paycheck Protection Program. In new updates to the agencies’ PPP frequently asked questions, they confirmed the following:

  • Lenders may use their own promissory note or an SBA form of promissory note for PPP loans. SBA Standard Loan Note (Form 147) is posted on the SBA website.
  • The lender must make the first disbursement of the loan no later than 10 calendar days from the date of loan approval.
  • The eight-week period of borrower payroll costs that determines the amount of forgiveness for PPP loans begins on the date the lender makes the first disbursement of the PPP loan to the borrower.

Meanwhile, pages 21-24 of the interim final rule detail the documentation and attestations lenders need to obtain from borrowers. The rule says the SBA will hold harmless any lender that relies on such borrower documents and attestation, as required by the CARES Act.

ICBA has added information from the Treasury/SBA FAQs to its own FAQs on the PPP. Nevertheless, key questions remain unanswered. ICBA continues to ask Treasury and the SBA to provide definitive guidance on:

  • Whether banks can lend to their directors with eligible small businesses, and
  • Whether owner draws or distributions count as payroll costs.

ICBA President and CEO Rebeca Romero Rainey said ICBA will let community bankers know as soon as there are answers to these questions. “And we thank you for all of your efforts to support local communities throughout the United States at this challenging time,” she wrote in a message to community bankers.


UPDATE 04/08/2020 – The Small Business Administration launched its long-awaited portal to facilitate Paycheck Protection Program access. The new portal allows non-SBA-certified lenders to:

  • Create an account on SBA Connect.
  • Request authorization to the Paycheck Protection Lender Gateway by providing their FDIC or Federal Reserve number and authorization number.
  • Proceed to the Lender Gateway to begin submitting loan authorization requests.

The SBA launched the portal while ICBA Chairman Noah Wilcox and ICBA Vice Chairman Brad Bolton participated in a virtual White House meeting with President Donald Trump, Treasury Secretary Steven Mnuchin, and SBA Administrator Jovita Carranza to discuss the status of the PPP.

Wilcox and Bolton cited ICBA’s informal survey in which more than one-third of community bank respondents said they were unable to access the PPP system after its launch. At the meeting, Mnuchin said he is working with congressional leaders to approve another $250 billion for the PPP as soon as this week.

These developments follow the Treasury and SBA release of frequently asked questions on the PPP related to verifying borrower calculations, SBA affiliation rules, and more. ICBA has added information from those FAQs to its own FAQs on the PPP, which it continues to update with new information as it comes in.

The latest updates follow the announcement of a Federal Reserve facility to provide term financing backed by PPP loans and the SBA’s Friday night release of its Lender Agreement, an application for non-SBA-certified lenders to apply to enter the PPP system, input borrower applications, and register for SBA loan guarantees.


UPDATE 04/07/2020 – The Federal Reserve said it will launch an ICBA-advocated facility to provide term financing backed by loans originated under the Small Business Administration’s Paycheck Protection Program.

The announcement follows this weekend’s ICBA call for a secondary market facility for the Fed to purchase program loans from originating institutions. In its Saturday night letter responding to community bank problems accessing the PPP, ICBA also called on policymakers to enhance the overburdened SBA systems, increase program funds, and dedicate funds to community banks.

Meanwhile, ICBA continues calling on policymakers to immediately launch its PPP portal for non-SBA lenders, which have had many problems accessing the new program. The SBA on Friday night released its Lender Agreement, an application for non-SBA-certified lenders to apply to enter the PPP system and input borrower applications.

The SBA continues encouraging lenders who need assistance to call its Lender Customer Service Line at 833-572-0502, though community bankers who have called that number are reporting mixed results on the agency’s assistance. PPP resources are available on the Treasury and SBA websites.

ICBA continues encouraging community bankers to weigh in on the launch of the program by completing a new survey on PPP access and processing. ICBA President and CEO Rebeca Romero Rainey said in a Main Street Matters post Friday night that one community bank left out is one too many.


UPDATE 04/06/2020 – Following the flawed launch of the Paycheck Protection Program, ICBA this weekend urged the Treasury Department and SBA to update the program so every community bank can access the system.

“Nearly 48 hours after the Program went live, hundreds of lenders are still trying to get approval to access the SBA system so they can process loans,” ICBA President and CEO Rebeca Romero Rainey wrote in a letter to the agencies.

In its letter, ICBA called on policymakers to:

  • Support and enhance the overburdened SBA systems.
  • Increase program funds beyond the $349 billion appropriated.
  • Allocate at least 25 percent of existing and future program funds for banks with $50 billion or less in assets.
  • Launch a secondary market facility with the Federal Reserve to purchase program loans from originating institutions.

ICBA has worked tirelessly through the weekend to address the problems community banks have encountered in attempting to access the PPP, which Romero Rainey laid out in a new Main Street Matters post. “In my opinion, one community bank left out is one too many,” she wrote.

ICBA will continue working with policymakers to implement these recommendations to address the PPP’s failed technology links and portals and ensure access for community banks.


UPDATE 04/05/2020 – Join Community Banker University Tuesday, April 7, for a webinar on the practical implications of the COVID-19 pause for community banks. Spots are limited and are expected to fill up. Be sure to register ASAP:

The Great Pause of 2020: What COVID-19 Means for Community Banks

April 7 • 11 a.m. (Eastern)

History may reflect the current environment as “The Great Pause of 2020.”

The webinar does not focus on the medical, political, or legislative ramifications of the situation but instead focuses on how community banks can continue to operate in the current environment and the potential outlook for strategic and capital planning, regulatory issues, board governance, shareholder concerns, and other areas.

Speakers: Philip K. Smith & Greyson Tuck

REGISTER TODAY!

This webinar is free to all ICBA members and includes the opportunity to ask questions. Live event registration is limited to 900 participants.

You can also order a recording of the webinar, which is posted 24 hours after the live event.


UPDATE 04/04/2020 – With many community bankers working through the weekend to help local customers access the Small Business Administration’s Paycheck Protection Program, we are with you every step of the way and want you to have access to the latest resources from ICBA and the SBA.

ICBA today extensively updated our frequently asked questions on the PPP, including a breakdown of the additional guidance on affiliated companies issued overnight by the Treasury Department. The updated FAQs also include new information on faith-based organizations, payroll requirements, and many more details on various aspects of the program.

This follows the SBA’s release yesterday of its Lender Agreement, an application for non-SBA-certified lenders to apply to enter the PPP system, input borrower applications, and register for SBA loan guarantees. The SBA encourages lenders who need assistance accessing the agency’s E-Tran system to call its Lender Customer Service Line at 833-572-0502.

As I laid out in a Main Street Matters post last night, we know the flawed launch of the PPP has been filled with high tensions and desperate attempts by community bankers to access the SBA programs to meet the needs of their small-business customers. Too many community banks have been excluded from this process as they attempt to help their local communities through the COVID-19 challenge.

While Treasury and the SBA continue directing lenders and borrowers to their PPP webpages, ICBA and state community banking associations have clearly and repeatedly expressed community bank concerns about the program’s terms and lack of timely guidance.

And through the weekend, ICBA will continue pulling out all stops to rectify this problematic program rollout and get you what you need to serve your customers and communities. We remain committed to our mission of creating and promoting an environment where community banks flourish, and we are dedicated to preserving your stellar reputation.

Throughout this process, we will continue to keep you informed of the latest developments as soon as they are available. As always, thank you for all that you are doing—and trying to do—to serve your communities at this challenging time.


UPDATE 04/03/2020 – We know today’s flawed launch of the Small Business Administration’s Paycheck Protection Program has been filled with high tensions and desperate attempts by community bankers to meet the needs of their small-business customers, as I laid out in a new Main Street Matters post.

Community bankers have always been there to meet their customers’ needs, and to be faced with a situation like they experienced today—in which they were unable to access the SBA programs promised to America’s small businesses due to failed technology links and portals—has been beyond stressful and disappointing for community bankers.

At the time of this release, the new portal is still not up and running and there is no ETA as to when that will occur. In addition, those banks with access to the E-Tran have expressed significant challenges with user access and latency in application processing. At the same time, media reports continue to indicate successful launches through the country by community banks, few of which we have been able to confirm.

Throughout the day today we have been in constant communication with Treasury and SBA to follow through on their promise to deliver much-needed funding to the thousands of small businesses that serve as the economic engines to our nation.

Community banks make 60 percent of all small-business loans, but they have been excluded from the process, and even implicated in numerous media stories as being unable to deliver, which could not be further from the truth. Rest assured, if community banks had been given the tools to deliver, they would have delivered.

We are continuing to work through this process and have been informed that the following developments are in the works to help community banks access this program.

The SBA has posted its Lender Agreement, an application for non-SBA-certified lenders to apply to enter the PPP system, input borrower applications, and register for SBA loan guarantees. The SBA encourages lenders who need assistance accessing the agency’s E-Tran system to call its Lender Customer Service Line at 833-572-0502.

The latest updates follow the release last night of an interim final rule on the program. That rule increased the PPP interest rate to 1 percent from 0.5 percent and provided additional clarity on lender due diligence responsibilities, though access has remained extremely limited or altogether closed off for community banks across the nation.

With Treasury and SBA continuing to point lenders and borrowers to their PPP webpages, ICBA and state community banking associations have clearly and repeatedly expressed community bank concerns about the program’s terms and lack of guidance.

Throughout this difficult rollout, please know that ICBA understands the gravity of this situation and is pulling out all stops to rectify this debacle. We remain committed to our mission and dedicated to preserving the stellar reputation of community banks throughout this great nation.

We will continue to keep you informed of the latest developments as soon as they are available. Thank you again for all that you are doing—and trying to do—on behalf of your communities at this challenging time.


UPDATE 04/03/2020 – After ICBA expressed serious concerns this week about terms and needed guidance, the Treasury Department and Small Business Administration last night issued an interim final rule on the Paycheck Protection Program.

According to the new rule, the agencies increased the PPP interest rate to 1 percent from 0.5 percent and have provided additional clarity on lender due diligence responsibilities.

The rule also notes that lenders do not need to conduct verification if borrowers submit documentation supporting their requests for loan forgiveness and attest that they have accurately verified the payments for eligible costs. It says the SBA will hold harmless any lender that relies on such borrower documents and attestation, as required by the CARES Act.

These updates are reflected in the information pages and borrower application posted to Treasury’s landing page, including a lender application form.

The update follows letters from ICBA and state banking associations expressing concerns that the interest rate is below break-even for community banks, the two-year loan terms are unreasonably short, guidelines on the use of loan proceeds are excessively restrictive, and the lack of detailed guidance shifts too much liability to the lender.

In a press briefing last night with President Trump, Treasury Secretary Mnuchin said the program will go live today and asked for “patience,” despite the limited guidance.

In a message to community bankers last night, ICBA President and CEO Rebeca Romero Rainey said ICBA hears their concerns about this new program and its rollout and retains a seat at the table in Washington. “ICBA is with you, will keep you informed of the latest developments, and is working on your behalf just as you are working on behalf of your communities,” she wrote.


UPDATE 04/02/2020 – ICBA President and CEO Rebeca Romero Rainey shared the latest information on the Small Business Administration’s hot-button Paycheck Protection Program.

In a message to community bankers after a call with the Treasury Department and SBA, Romero Rainey offered updates on non-SBA lenders, additional forthcoming guidance, tomorrow’s expected launch, and the program’s interaction with Economic Injury Disaster Loans.

With today’s complimentary ICBA webinar on the PPP at capacity, community bankers can pre-order a free recording of the program, which will feature The Coleman Report’s Bob Coleman.

Further, ICBA staff will answer questions about the PPP and other aspects of the federal response to the COVID-19 outbreak at its next Community Bank Briefing scheduled for 11 a.m. (Eastern time) tomorrow.

“ICBA will continue to be at the table in Washington to shape this program, maximize community bank access, and keep you informed of the latest developments,” Romero Rainey wrote. “Thank you again for your continued commitment to your communities as we persevere through this challenging time.”


UPDATE 04/01/2020 – New information is coming in about the Small Business Administration’s hot-button Paycheck Protection Program, and we want you to be the first to know. ICBA just got off the phone with the Treasury Department and SBA, and here’s the latest on the $350 billion program:

Non-SBA Lenders: The SBA plans to shortly release a streamlined application form that non-SBA lenders can use to become an approved PPP lender. On Friday, when the program becomes live, these newly approved lenders will have access to a new portal being developed by Amazon Web Services that will allow them to input borrower application information, receive an SBA loan guarantee number, and fund loans under the PPP.

Additional Guidance Imminent: SBA will shortly provide additional guidance in the form of an interim rule that will, among other things, make clear:

  • Exactly what a borrow must attest to.
  • What the banker responsibilities are for verification.
  • Acceptable forms of borrower signatures, e.g. electronic, Docusign, scanned copies, etc.

Friday Launch: SBA expects systems for both currently certified lenders (SBA E-Tran system) and newly certified lenders (through the new portal) to go live on Friday. Banks can collect applications and supporting documentation from borrowers now, to be ready to input into the PPP systems on Friday. Treasury yesterday released initial information and resources on the PPP, including a borrower application form.

EIDL Interaction: Small-business borrowers cannot get both an EIDL (Economic Injury Disaster Loan) and PPP loan at the same time. A borrower can apply for an EIDL loan now and the PPP loan when it becomes available. If a borrower accepts the EIDL loan, and subsequently qualifies for the PPP loan, the borrower can re-finance the EIDL loan into a PPP loan. Loans are limited to one per Taxpayer Identification Number.

ICBA staff will answer questions about the PPP and other aspects of the federal response to the COVID-19 outbreak at its next Community Bank Briefing scheduled for 11 a.m. (Eastern time) this Friday.

ICBA will continue to be at the table in Washington to shape this program, maximize community bank access, and keep you informed of the latest developments. Thank you again for your continued commitment to your communities as we persevere through this challenging time.


UPDATE 04/01/2020 – ICBA launched a new resource page with answers to frequently asked questions about the federal response to the COVID-19 outbreak, including programs authorized by the Coronavirus Aid, Relief, and Economic Security Act.

The new FAQs answer questions related to the Small Business Administration’s Paycheck Protection Program, the Federal Home Loan Banks, mortgage lending, loan modifications, Federal Reserve lending support, compliance, and more.

ICBA will continue adding to this resource to provide clarity to community bankers about the COVID-19 response programs. Meanwhile, ICBA offers a brief summary of the key community banking provisions of the CARES Act.

In addition to the SBA program, the CARES Act also includes ICBA-advocated measures related to tax relief, transaction accounts, loan modifications, Current Expected Credit Losses implementation, the Community Bank Leverage Ratio, and more.

Additional resources on the COVID-19 response are available on ICBA’s Crisis Response and Preparedness Toolkit.


UPDATE 03/31/2020 – The Small Business Administration is working to issue guidance as soon as today on its $349 billion in new lending capacity under the Coronavirus Aid, Relief, and Economic Security Act. The new Paycheck Protection Program expands the SBA’s 7(a) loan program to help small businesses cover their near-term operating expenses and retain employees.

Meanwhile, ICBA offers a summary of the community banking provisions of the CARES Act and is developing frequently asked questions on the law’s key measures, including the SBA program. Further, new analyses from the Economic Innovation GroupIndependent Bankers Association of Texas and Senate Small Business Committee offer additional information on the program.

Following relentless ICBA advocacy on behalf of the nation’s community banks, President Donald Trump signed the CARES Act into law on Friday. In addition to the SBA program, the law includes tax relief, robust FDIC deposit insurance coverage for transaction accounts, and other ICBA-advocated measures.


UPDATE 03/31/2020 – Just as community bankers are working nonstop to support their local customers and communities amid the coronavirus outbreak, ICBA is working around the clock and committed to getting you the facts and resources you need as soon as possible so you can focus on running your bank.

To that end, we want you to be the first to know that Treasury Department just released initial information and resources with more to follow on the Small Business Administration’s $349 billion lending program under the Coronavirus Aid, Relief, and Economic Security Act. The new Paycheck Protection Program expands the SBA’s 7(a) loan program to help small businesses cover their near-term operating expenses and retain employees. As more information is available, we will get it to you as quickly as possible.

While speculation and misinformation have been circulating, the resources help provide some answers. Further, ICBA staff will answer questions about the program at its next Community Bank Briefing scheduled for 11 a.m. (Eastern time) this Friday.

ICBA has been at the table from the beginning, in phone calls and meetings with the Congress, White House, Treasury Department, and SBA, to shape this program and ensure community banks can participate in a user-friendly way.

Thanks to relentless advocacy, the CARES Act also includes tax relief; authority for the FDIC to provide full deposit insurance coverage for transaction accounts; troubled debt restructuring, Current Expected Credit Losses, and Community Bank Leverage Ratio relief; and other ICBA-advocated measures.

With much more information to come on these and other programs, ICBA will continue working to ensure you have the facts and the latest resources to help your customers while containing COVID-19’s economic damage in your local communities.

The entire ICBA family thanks you for your continued commitment and wishes you safety and health as we work together to persevere through this challenging time.

ACCESS THE TREASURY RESOURCES HERE


UPDATE 03/30/2020 – Join us Tuesday, March 31, for two webinars on the coronavirus outbreak. Spots are limited and are expected to fill up. Be sure to register ASAP!

  1. ICBA Community Banker University Webinar: Coronavirus in the Workplace Round #2: An Update
    March 31 | 11 a.m. (Eastern)
    The Coronavirus pandemic is not only changing the way we live, it is rapidly changing the way we work. Topics include an overview of the most recent state and federal mandates, leave and disability implications, wage and hour issues, and key considerations with furloughs and reductions-in-force.
    Speakers: Jennifer Nodes, Jackson Lewis; Janet Olawsky, Jackson Lewis
    REGISTER HERE
  2. ICBA Community Bank Briefing: COVID-19 Update With Special Guest OCC
    March 31 | 2 p.m. (Eastern)
    This third briefing focuses on the country’s national banking system and how the OCC is addressing the COVID-19 impact to the U.S. financial system. Discussion includes how the OCC is currently operating, the interagency process, national bank examinations, and bank supervision issues.
    Speakers: Joseph Otting, Comptroller of the Currency; Blake Paulson, OCC, Senior Deputy Comptroller for MidSize and Community Bank Supervision; Rebeca Romero Rainey, ICBA President and CEO (moderator)
    REGISTER HERE

These webinars are free to all ICBA members and include the opportunity to ask questions. Live event registration is limited to 900 participants.

The recordings are available to everyone 24 hours after the live events and can be ordered through our website.


UPDATE 03/30/2020 – Following relentless ICBA advocacy on behalf of the nation’s community banks, President Donald Trump signed into law bipartisan economic stimulus legislation responding to the coronavirus outbreak.

The Coronavirus Aid, Relief, and Economic Security Act includes several ICBA-advocated measures that will better enable community banks to provide needed credit in local communities.

Trump signed the bill into law Friday after it passed the House on a voice vote following a unanimous vote in the Senate earlier in the week.

ICBA President and CEO Rebeca Romero Rainey thanked community bankers for being on the front line helping local communities during the coronavirus pandemic. “While you have stood strong for your customers and communities, ICBA has been standing strong in Washington to shape and advance this critical legislation to support you during this uncertain time,” she said.

The CARES Act:

  • enhances the Small Business Administration’s 7(a) loan program,
  • provides net-operating-loss tax relief,
  • authorizes robust FDIC deposit insurance coverage for transaction accounts,
  • delays implementation of the Current Expected Credit Losses accounting standard,
  • ensures coronavirus-related loan modifications are not classified by regulators as troubled debt restructurings,
  • reduces the Community Bank Leverage Ratio from 9 percent to 8 percent during the COVID-19 national emergency, and
  • funds USDA Commodity Credit Corporation support for livestock and specialty crop producers.

ICBA offers a summary of key provisions in the law, including mortgage-forbearance measures, and is encouraging regulators to issue guidance as soon as possible to answer questions regarding the details.

ICBA will continue to provide information to community bankers about the new law as the details come into focus. Additional information and resources about the COVID-19 response are available on ICBA’s Crisis Response and Preparedness Center.


UPDATE 03/27/2020 – The ICBA and community banking star shines brightest during a challenge. Today’s House passage of the coronavirus stimulus bill with ICBA-advocated provisions—sending it to President Trump to be signed into law—proves that once again to be true.

While you have stood strong for your customers and communities, ICBA has been standing strong in Washington to shape and advance this critical legislation to support you during this uncertain time.

ICBA-advocated provisions in the Coronavirus Aid, Relief, and Economic Security (CARES) Act—which ICBA details in a new bill summary—include:

  • Enhancing the Small Business Administration’s 7(a) loan program,
  • Providing net-operating-loss tax relief,
  • Authorizing robust FDIC deposit insurance coverage for transaction accounts,
  • Delaying implementation of the Current Expected Credit Losses accounting standard,
  • Ensuring coronavirus-related loan modifications are not classified by regulators as troubled debt restructurings,
  • Reducing the Community Bank Leverage Ratio from 9 percent to 8 percent during the COVID-19 national emergency, and
  • Funding USDA Commodity Credit Corporation support for livestock and specialty crop producers.

In our national news release, we thanked policymakers for finalizing these critical measures and resources that support the economy and provide access to credit. Our thanks also go to you for being the guiding light for local communities amid this current challenge.

ICBA will continue to provide additional details and as much information as we can—as soon as we can—on the issues of importance to community banks. Meanwhile, ICBA will continue to keep you informed of the latest updates and resources on COVID-19 via our daily NewsWatch Today email and our Crisis Response and Preparedness Center.

While you are fighting for your customers and communities, know that ICBA will always be there doing the same for you. From our entire ICBA family to you and yours, we thank you for your service to our nation and wish you good health and safety as we persevere through this challenge.


UPDATE 03/27/2020 – ICBA released a summary of the ICBA-advocated provisions in the Senate-passed Coronavirus Aid, Relief, and Economic Security Act, which is expected to pass the House and be signed into law as soon as today.

Following relentless ICBA advocacy, the CARES Act includes several ICBA-advocated measures to help community banks support their communities. The bill would:

  • enhance the Small Business Administration’s 7(a) loan program,
  • advance net-operating-loss tax relief,
  • increase the amount of interest expenses businesses may deduct on their tax returns,
  • ensure robust FDIC deposit insurance coverage,
  • delay implementation of the Current Expected Credit Losses accounting standard,
  • provide temporary relief from troubled-debt-restructuring classifications,
  • reduce the Community Bank Leverage Ratio from 9 percent to 8 percent during the COVID-19 emergency, and
  • support livestock and specialty crop producers.

ICBA is encouraging regulators to issue guidance to answer open questions regarding the details of these provisions and will continue to keep community bankers informed of these developments.

Additional information and resources about the COVID-19 response are available on ICBA’s Crisis Response and Preparedness Center.


UPDATE 03/26/2020 – Following relentless ICBA advocacy, the Senate-passed Coronavirus Aid, Relief, and Economic Security (CARES) Act includes several ICBA-advocated measures to help community banks support their communities.

new ICBA analysis summarizes the key community banking provisions of the bill, which is expected to pass the House and be signed into law as soon as Friday.

There are many open questions regarding the details of the provisions described below. These questions will not be clarified until the agencies issue guidance, which we are encouraging them to do on an expedited basis. ICBA will continue to provide information to community bankers as the details of the act come into focus.

READ THE ENTIRE ICBA SUMMARY HERE


UPDATE 03/25/2020 – ICBA this week is hosting another Community Bank Briefing focused on the coronavirus pandemic and the impact on community banks. Scheduled for 11 a.m. (Eastern time) this Friday, the interactive webinar will provide an overview of the federal banking agency response and include time for questions.

A recording of last week’s ICBA briefing and additional resources remain available on the Crisis Response and Preparedness Center. The resource center also features a survey that allows community bankers to share how they are helping their communities amid the coronavirus outbreak to educate policymakers, news media, and the general public.

Community bankers who have questions or need assistance can contact ICBA at crisisresponse@icba.org.


UPDATE 03/25/2020 – ICBA posted a template letter for community bank employees affirming that they are essential workers according to guidance from the Departments of Homeland Security and Treasury.

With community bankers in certain states reporting being stopped by law enforcement as they attempt to go to work, ICBA encourages community bankers to fill out and distribute the template letter to staff to keep with them along with the federal guidance.

The template and guidance are available on ICBA’s Crisis Response and Preparedness Center under “Essential Business Management Resources.” Community bankers who have questions or need assistance can contact ICBA at crisisresponse@icba.org.


UPDATE 03/24/2020 – ICBA has been working around the clock to ensure critical measures and resources are available to help community banks support the coronavirus response, ICBA President and CEO Rebeca Romero Rainey wrote.

In a message to community bankers, Romero Rainey covered ICBA’s many advocacy efforts, including several ICBA-advocated measures in congressional stimulus legislation, regulatory relief on troubled debt restructurings, multiple Federal Reserve facilities, and guidance on “essential critical infrastructure workers.”

She also cited ICBA efforts reminding consumers that their deposits are insured, providing community banks with custom resources on its Crisis Response and Preparedness Center, and answering community banker questions submitted to crisisresponse@icba.org.

“While ICBA remains steadfast in representing community banks before policymakers and the public, we are ever grateful of your efforts to support local communities amid this global pandemic,” Romero Rainey wrote. “It’s times like this when community banks shine the brightest.”

READ THE MESSAGE HERE


UPDATE 03/21/2020 – Community Banker University, powered by ICBA is hosting three free webinars pertaining to the ongoing COVID-19 pandemic:

Preparing the Bank for the Economic Downturn

March 25 | 11:00am (Eastern) | REGISTER HERE

Banks have rushed to help their customers manage this extraordinary event. Instead of a short downturn, many are predicting a longer “U” shaped recovery. Unfortunately, many borrowers will not make it through this downturn.

Presenters will reflect on budgeting, asset quality, liquidity, accounting, capital, technology, people, and examination considerations that every bank must keep top-of-mind regardless of whether economic headwinds occur in the short- or long-term.

Coronavirus in the Workplace

March 25 | 3:00pm (Eastern) | REGISTER HERE

Get current, up-to-date information on how to legally manage your workforce while maintaining the health and safety of your workforce, how to avoid legal pitfalls associated with work-from-home arrangements and other common responses to the pandemic, and prepare for what is likely to come.

Topics include an overview of the most recent state and federal mandates, leave and disability implications, wage and hour issues, and key considerations with furloughs and reductions-in-force. There will be time to ask questions.

COVID-19: The Insurance Implications for Banks and Their Customers

March 26 | 11:00am (Eastern) | REGISTER HERE

Businesses around the country are either closing or incurring substantial reductions of business activity due to the COVID-19 virus. Learn possible ways insurance may help with the recovery from such business losses.

Discussion topics include:

  • Business interruption and contingent business interruption insurance coverage.
  • Event cancellation insurance coverage and implications.
  • Shutdown of customer business activities and its effect on banks.
  • Assignment of insurance claims and insurance rights.

UPDATE 03/20/2020 – ICBA is encouraging community bankers to share how they are helping their communities amid the coronavirus outbreak. A new survey on ICBA’s Crisis Response and Preparedness Center allows community bankers to tell their stories to educate policymakers, news media, and the general public.

Additionally, during yesterday’s Community Banking Briefing webinar, ICBA President and CEO Rebeca Romero Rainey and ICBA staff experts discussed the coronavirus (COVID-19) pandemic, its effect on community banks, and resources for your bank to use.

If you were unable to attend, there is a free recording available for viewing.


UPDATE 03/19/2020 – Unfortunately, due to coronavirus travel and meeting restrictions, ICBA cannot proceed with their usual in-person ICBA Capital Summit event in Washington, originally scheduled for April 27 – May 1, 2020.

Instead of holding the Capital Summit in person, it is ICBA’s intent to conduct portions of the meeting program in a virtual format. In the coming days, ICBA will provide information about the schedule for virtual Federal Delegate Board and committee meetings. In addition, they will be considering opportunities for additional virtual programming with policymakers.

If you have already made a hotel reservation within the ICBA room block, they are working to cancel those reservations on your behalf and request a refund of all deposits.


UPDATE 03/19/2020 – ICBA released three customizable news releases that community banks can distribute in their local communities to reassure consumers amid the coronavirus outbreak. The custom documents spotlight the safety and soundness of the banking system and deposit insurance while showcasing the strength and resiliency of the community banking industry.

ICBA at 3 p.m. (Eastern time) today also is hosting its inaugural Community Bank Briefing, which will feature ICBA staff experts focusing exclusively on the coronavirus outbreak. Space is limited for the complimentary interactive webinar, but it will be recorded and available to ICBA members afterward.

ICBA’s Crisis Response and Preparedness Center offers community banks a variety of information and resources on the COVID-19 outbreak, including a recent “Sprint Exercise” on resiliency plans and an online course on preventing the spread of the virus.

Community bankers who have questions or need assistance can contact ICBA at crisisresponse@icba.org.



LEGISLATIVE RESOURCES & UPDATES

Federal & State Financial Regulators Issue Guidance/Info on COVID-19

Interagency Statement on Pandemic Planning

PURPOSE: The Federal Financial Institutions Examination Council (FFIEC) on behalf of its member agencies1 are issuing guidance to remind financial institutions that business continuity plans should address the threat of a pandemic outbreak and its potential impact on the delivery of critical financial services. Click here to read the FFIEC Guidance.

Joint Press Release: Board of Governors, Federal Reserve System; CFPB; FDIC; OCC; NCUA; CSBS: Agencies Encourage Financial Institutions to Meet Financial Needs of Customers and Members Affected by Coronavirus

Federal financial institution regulators and state regulators today encouraged financial institutions to meet the financial needs of customers and members affected by the coronavirusThe agencies recognize the potential impact of the coronavirus on the customers, members, and operations of many financial institutions and will provide appropriate regulatory assistance to affected institutions subject to their supervision.  Click here to read the Joint Press Release.



State Legislature Changes Due to COVID-19


UPDATE 03/20/2020 – Gov. Tom Wolf’s order closing businesses that are not considered life-sustaining was updated Saturday, March 20.  A list of both life-sustaining and non-life-sustaining businesses is here. Business guidance has been updated after conversations with PACB and other financial- and businesses-stakeholders, and has been aligned with the Cybersecurity and Infrastructure Security Agency advisory released yesterday.


In response to COVID-19. Governor Wolf closed the Pennsylvania State Capitol to anyone but employees effective last Friday, March 13th.  The state legislature was previously scheduled to return to session on March 16th.

The House met for Session on Monday, March 16th to pass a series of internal rules changes that will allow the 203-member chamber to continue to conduct its business remotely during the course of the outbreak.

The Senate cancelled their Monday and Tuesday Session, but met briefly on Wednesday to pass a resolution regarding temporary emergency rules, to allow the Senate to pass legislation remotely.

The House and Senate will operate under a “12-hour call time,” meaning members should be prepared to vote remotely if called upon.

These rules will be in effect until Governor Wolf ends the coronavirus disaster declaration.

House and Senate Republican and Democrat Legislators are committed to helping Governor Wolf’s efforts to combat the coronavirus.



PA Department of Banking & Securities COVID-19 Resources

Click here and here to Read All PA DOBS COVID-19 Resources


UPDATE 04/08/2020 – The Pennsylvania Department of Banking & Securities has issued Limited Guidance for Appraisers, Notaries, Title Companies, and Home Inspectors for Transactions Begun Prior to March 6, 2020.  The following is now posted on their website.

On March 6th, 2020 in response to the spread of the novel coronavirus COVID-19, Governor Tom Wolf executed an Emergency Disaster Declaration for Pennsylvania. Subsequently, on March 19th, 2020, Governor Wolf ordered the closure of non-life-sustaining businesses.

Since that date, the Department worked in consultation with the Governor’s Office and the Department of Banking and Securities to develop guidance for appraisers, notaries, title companies and home inspectors. In response to concerns regarding residential real estate transactions, specifically those transactions initiated prior to the Emergency Disaster Declaration, the following limited guidance is being issued:

  1. In-person activities as listed below are permitted for only those residential real estate transactions which, with respect to existing homes, were under contract (signed) prior to the date of the March 6th, 2020, or, with respect to new construction, which were under a previously executed contract that provides for closing and delivery to the customer on or after March 6th, 2020 :
    • Inspections
    • Appraisals;
    • Final walk-throughs;
    • In-person Title Insurance activities.
  2. Permitted inspections, appraisals, final walk-throughs, and title insurance activities shall be arranged by appointment and limited to no more than two people on site at any one time. Exercising of social distancing during these activities is required, and wearing further protective gear (gloves, shoe covers, masks) is strongly encouraged. No construction activities may occur at such site other than limited activities necessary to stabilize the site, temporarily prevent weather damage, or make emergency repairs only. Emergency repairs, limited to performing those tasks necessary to provide repair services to customers, may continue. Further, residential construction projects that have been issued a final occupancy permit may continue such work as may be necessary to complete delivery to the purchaser. For all other residential construction projects limited activities may continue to the extent necessary to stabilize the site, temporarily prevent weather damage, or make emergency repairs only.
  3. Any real estate business which is executed remotely is permissible, including virtual or telework operation for desktop appraisals.
  4. For residential real estate contracts entered into after March 6th, 2020, in-person inspections, appraisals, final walk-throughs, and title insurance activities are prohibited until the Emergency Disaster Declaration is lifted for Pennsylvania. This does not apply to appraisals that do not require entrance into a physical location.

The COVID-19 global pandemic has created an unprecedented situation and we understand the concerns of businesses and individuals impacted by this virus. However, due to significant health concerns for the residents of this commonwealth, only in-person residential real estate activities that meet the provisions of this guidance are permissible.


UPDATE 03/20/2020 – The Pennsylvania Department of Banking and Securities has provided a process by which individual banks may seek waivers to exclude from the governor’s prohibition certain banking operations, such as the operation of trust departments, legal services, real estate and title services, etc.

Should your institution seek a waiver to continue certain financial operations, or are seeking information about the process, you can submit your request via RA-dcexemption@pa.gov  

The Department of Community and Economic Development (DCED) will email back with information about the process.

Please copy or notify the Department of Banking and Securities on your waiver application so they can track your application and possibly intervene in support. These waiver requests will be given high priority.

General information for businesses seeking information about whether they are covered under yesterday’s order, please email: ra-dcedcs@pa.gov 

The Department of Banking and Securities has provided resources about COVID-19 https://www.dobs.pa.gov/Pages/default.aspx 

From the DOBS website:The Department of Banking and Securities has received a number of questions about whether banks and other financial institutions are subject to Governor Wolf’s order that non-life-sustaining businesses in Pennsylvania close their physical locations in order to mitigate the spread of the COVID-19. 

Please be aware that banks, credit unions, and non-depository licensees are NOT required to shutdown their physical locations. Credit intermediation and related activities also do not require physical closure. Banks, credit unions, and non-depository licensees are encouraged to remain open and operational and to follow best practices for social distancing.



Federal Regulator COVID-19 Response

Federal Banking Agencies Provide Banks Additional Flexibility to Support Households and Businesses

The federal bank regulatory agencies today announced two actions to support the U.S. economy and allow banks to continue lending to households and businesses. They are:

  • A statement encouraging banks to use their resources to support households and businesses; and
  • A technical change to phase in, as intended, the automatic distribution restrictions gradually if a firm’s capital levels decline.

Read the press release here.


FDIC

UPDATE 03/20/2020 – FDIC has issued FAQ’s for Financial Institutions related to COVID-19.  If includes issues like TDR’s, deferments, delinquencies, & more, etc.

Please see the following link: https://www.fdic.gov/coronavirus/faq-fi.pdf

Here is the link to FDIC’s notice: https://www.fdic.gov/news/news/financial/2020/fil20018.html


Read all Responses to COVID-19 from FDIC here

FDIC Issued a Financial Institution Letter on Working with Customers Affected by the COVID-19

Highlights:

  • The FDIC encourages financial institutions to work with customers and communities affected by COVID-19 in a prudent manner.
  • The FDIC understands that this unique and evolving situation could pose significant temporary business disruptions and challenges.
  • The FDIC encourages financial institutions to work with all borrowers, especially borrowers from industry sectors particularly vulnerable to the volatility in the current economic environment and small businesses and independent contractors that are reliant on affected industries.
  • A financial institution’s prudent efforts to modify the terms on existing loans for affected customers will not be subject to examiner criticism.
  • The FDIC will work with affected financial institutions to reduce burden when scheduling examinations, including making greater use of off-site reviews, consistent with applicable legal and regulatory requirements.
  • The FDIC’s staff stands ready to work with financial institutions that may experience challenges fulfilling their regulatory reporting responsibilities and will act expeditiously if institutions need to temporarily close facilities.
  • The FDIC has launched a COVID-19 webpage on its public website to provide useful information to bankers, consumers, and others. Financial institutions that have questions about guidance in the statement are encouraged to contact their FDIC Regional Office

Read the FDIC FIL here.


OCC

Read all Responses on COVID-19 from OCC here


UPDATE 04/07/2020 – Bulletin | OCC 2020-35   April 7, 2020

Troubled Debt Restructurings : Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working With Customers Affected by COVID-19 (Revised)

Summary

The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, and the National Credit Union Administration (collectively, the agencies), in consultation with the state financial regulators, today issued a revised interagency statement to provide information to financial institutions that are working with borrowers affected by the coronavirus (also known as COVID-19).

Rescission

This bulletin rescinds OCC Bulletin 2020-21, “Troubled Debt Restructurings: Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working With Customers Affected by COVID-19,” issued on March 23, 2020. OCC Bulletin 2020-21 transmitted the previous version of the interagency statement.

Highlights

The revised interagency statement addresses the following:

  • Banks may elect to account and report for loans modified under section 4013 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which was signed into law on March 27, 2020. Refer to the Federal Financial Institutions Examination Council’s Supplemental Instructions to the Consolidated Reports of Condition and Income for more information on related reporting requirements.
  • When working with borrowers, banks should adhere to consumer protection requirements, including fair lending laws, to provide the opportunity for all borrowers and communities to benefit from these arrangements.

Background

The CARES Act creates a forbearance program for federally backed mortgage loans; protects borrowers from negative credit reporting due to loan accommodations related to the COVID-19 national emergency declared by the President on March 13, 2020; and provides financial institutions the option to temporarily suspend certain requirements under U.S. generally accepted accounting principles related to troubled debt restructurings for a limited period of time to account for the effects of COVID-19.

The agencies originally issued a statement on March 22, 2020, focusing on loan modifications and reporting, to encourage financial institutions to work prudently with borrowers and to describe the agencies’ interpretation of how current accounting rules under U.S. generally accepted accounting principles apply to certain COVID-19-related modifications. This revised interagency statement clarifies the interaction between the March 22, 2020, interagency statement and section 4013 of the CARES Act, “Temporary Relief From Troubled Debt Restructurings,” as well as the agencies’ views on consumer protection and fair lending considerations.

Further Information

The OCC will continue to communicate with the industry as this situation unfolds, including through additional statements, webinars, frequently asked questions, or other means, as appropriate.

Please contact Lou Ann Francis, Director for Commercial Credit Risk Policy, and James Calhoun, Technical Expert for Commercial Credit Risk Policy, at (202) 649-6670; Sarah Nawrocki, Professional Accounting Fellow, Office of the Chief Accountant, at (202) 649-6280; or Paul R. Reymann, Director for Consumer Compliance Policy, at (202) 649-7880.

Related Links


UPDATE 03/22/2020 – The Office of the Comptroller of the Currency (OCC) today announced an interim final rule to revise its short-term investment fund (STIF) rule for national banks acting in a fiduciary capacity.  The rule allows the OCC to authorize banks to temporarily extend maturity limits of these funds. The financial markets are in a period of significant stress negatively affecting the ability of banks to operate in compliance with maturity limits identified in the rule. The rule is effective immediately. The agency will accept comments for 45 days following publication in the Federal Register.

OCC Revises Short-Term Investment Fund Rule

https://www.occ.gov/news-issuances/federal-register/2020/nr-occ-2020-38-federal-register.pdf

Simultaneously to announcing the interim final rule, the OCC also announced an order extending the maturity limits for STIFs affected by the market effects of COVID-19. The order provides that a bank will be deemed in compliance with the rule if:

  • The STIF maintains a dollar-weighted average portfolio maturity of 120 days or less, as determined in the same manner as is required by the Securities and Exchange Commission SEC) pursuant to Rule 2a-7 for money market mutual funds (17 CFR 270.2a-7);
  • The STIF maintains a dollar-weighted average portfolio life maturity of 180 days or less, as determined in the same manner as is required by the SEC pursuant to Rule 2a-7 for money market mutual funds (17 CFR 270.2a-7).;
  • The bank is acting in the best interests of the STIF under applicable law in connection with using these temporary limits; and
  • The bank makes any necessary amendments to the written plan for the STIF to reflect these temporary changes.

The OCC also determined that the relief provided by this administrative order terminates on July 20, 2020, unless the OCC revises this order to provide otherwise before that date.

The best compendium of issuances around COVID-19 related information is https://occ.gov/covid-19.


Pandemic Planning: Working With Customers Affected by Coronavirus and Regulatory Assistance

The Office of the Comptroller of the Currency (OCC) recognizes the potential for the Coronavirus Disease 2019 (also referred to as COVID-19) to adversely affect the customers and operations of banks.1  The OCC encourages banks to take steps to meet the financial services needs of customers adversely affected by COVID-19-related issues. The OCC will provide appropriate regulatory assistance, as warranted, to banks affected by COVID-19-related issues.

Read more from OCC here.


Federal Reserve

Read all responses to COVID-19 from the Federal Reserve here.


UPDATE 03/22/2020 – The federal financial institution regulatory agencies and the state banking regulators issued an interagency statement encouraging financial institutions to work constructively with borrowers affected by COVID-19 and providing additional information regarding loan modifications.

The agencies encourage financial institutions to work with borrowers, will not criticize institutions for doing so in a safe and sound manner, and will not direct supervised institutions to automatically categorize loan modifications as troubled debt restructurings (TDRs). The joint statement also provides supervisory views on past-due and nonaccrual regulatory reporting of loan modification programs.

https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200322a.htm


UPDATE 03/21/2020 – US Department of Homeland Security – Cybersecurity and Infrastructure Security Agency (CISA) Federal Guidance on Critical Infrastructure Workforce

Read the memorandum and Guidance here

https://www.cisa.gov/publication/guidance-essential-critical-infrastructure-workforce


The federal bank regulatory agencies released a statement encouraging banks to use the Federal Reserve’s “discount window” so that they can continue supporting households and businesses.

The discount window provides short-term loans to banks and plays an important role in supporting the liquidity and stability of the banking system. By providing ready access to funding, the discount window helps depository institutions manage their liquidity risks efficiently and avoid actions that have negative consequences for their customers. Thus, the discount window supports the smooth flow of credit to households and businesses.

Read more the Federal Reserve here.


US Department of the Treasury

UPDATE 04/02/2020 – US Treasury Guidance on SBA Paycheck Protection Program (PPP): https://home.treasury.gov/cares

ASSISTANCE FOR SMALL BUSINESSES

The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses.

Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.

  • For a top-line overview of the program CLICK HERE
  • If you’re a lender, more information can be found HERE
  • If you’re a borrower, more information can be found HERE
  • The application for borrowers can be found HERE

Secretary Steve Mnuchin Memorandum on Financial Services Sector Essential Critical Infrastructure Workers: CLICK HERE.



US Small Business Administration

UPDATE 04/26/2020 – Due to the unprecedented demand for Paycheck Protection Program loans by the nation’s small businesses and to ensure equitable access and system integrity, SBA and Treasury are taking prudent and reasonable steps to protect SBA’s loan systems for the next phase of PPP loan processing.

SBA and Treasury are implementing the following measures:

  • Pacing the number of loans processed in the E-Tran system for participating lenders when processing resumes on Monday, April 27, 2020 at 10:30 am EDT;
  • Instituting a maximum dollar amount at 10% of PPP funding authority that any lending institution will be able to originate, exclusive of the additional $60 billion preserved for lenders with assets under $50 billion (i.e. $60 billion cap);
  • Implementing operational standards to ensure that lenders access PPP funds based on their asset size;
  • Ensuring the Paycheck Protection Program continues to operate on a first-come, first-serve basis so that every small business has access to PPP loans to sustain their business and retain their employees; and
  • Issuing the following guidance (memo attached) for lenders who have received a significant amount of loan applications.

SBA and Treasury value all lenders and their small business customers and will continue to provide updates to the PPP lending community as loan processing resumes this week.


UPDATE 04/24/2020 – Joint Statement by SBA Administrator Jovita Carranza and Treasury Secretary Steven T. Mnuchin on the Resumption of the Paycheck Protection Program

WASHINGTON – Administrator of the U.S. Small Business Administration Jovita Carranza and U.S. Treasury Secretary Steven T. Mnuchin issued the following statement today on the resumption of the Payroll Protection Program (PPP):

“We are pleased that President Trump has signed into law the Paycheck Protection Program and Health Care Enhancement Act, which provides critical additional funding for American workers and small businesses affected by the coronavirus pandemic.  We want to thank Leader McConnell, Leader Schumer, Speaker Pelosi, and Leader McCarthy for working with us on a bipartisan basis to ensure that the Paycheck Protection Program is funded so that small businesses can keep hardworking Americans on the payroll.

“The Small Business Administration will resume accepting PPP loan applications on Monday, April 27 at 10:30AM EDT from approved lenders on behalf of any eligible borrower.  This will ensure that SBA has properly coded the system to account for changes made by the legislation.

“The PPP has supported more than 1.66 million small businesses and protected over 30 million jobs for hardworking Americans.  With the additional funds appropriated by Congress, tens of millions of additional workers will benefit from this critical relief.

“We encourage all approved lenders to process loan applications previously submitted by eligible borrowers and disburse funds expeditiously.  All eligible borrowers who need these funds should work with an approved lender to apply.  Borrowers should carefully review PPP regulations and guidance and the certifications required to obtain a loan.

“The Trump Administration is fully committed to ensuring that America’s workers and small businesses continue to get the resources they need to get through this challenging time.”

For more information on the Paycheck Protection Program, visit: sba.gov/paycheckprotection.


New document: Paycheck Protection Program (PPP) Report – Approvals through 4/13/2020

New document: FAQ’s on PPP – CLICK HERE

Important Resources:

Affiliation Rules: Click Here 

Interim Final Rule (IFR) on affiliation: Click Here  

FAQ on Faith-based Orgs and PPP: Click Here

Interim Final Rule: Click Here  

Borrower Application: Click Here

PPP Loan Guaranty Form: Click Here

New Lender Application For Federally insured depository institutions, federally insured credit unions, and Farm Credit System institutions (other than the Federal Agricultural Mortgage Corporation)

(Submit to delegatedauthority@sba.gov)  https://www.sba.gov/sites/default/files/2020-04/PPP–Agreement-for-New-Lenders-Banks-Credit-Unions-FCS-w-seal-fillable.pdf

More Info:

E-Tran Pro Tip:  When a lender enters a loan intro E-tran, make sure they choose “PPP” from the first drop down menu. Do NOT choose “7(a)”. If they choose 7(a), they will face restrictions that aren’t relevant to PPP.

Find a lender toolClick Here 

Lender Assistance Hotline: (833) 572-0502

Information for lenders can always be found at www.sba.gov/paycheckprotection or www.treasury.gov/cares

How to request change to info on sba.gov website: www.sba.gov/support (file a ticket)



ASSOCIATE MEMBER RESOURCES & UPDATES

From Accume Partners

We are living in unprecedented times and experiencing unprecedented business challenges.  We are also hearing great stories of companies coming together to offer support, assistance, and resources.  Accume Partners is taking an active role in providing information through our website.

  1. We’ve added a complete Covid-19 Resource Guide to our website where we’re answering client questions and providing advice and direction regarding compliance questions that are emerging as well as security and the work from home environment
    https://www.accumepartners.com/covid-19/
  2. We’ve released a new Compliance Monthly Newsletter and Resource Calendar on our website
    https://www.accumepartners.com/newsletter-type/compliance-monthly-newsletter/
    https://www.accumepartners.com/collateral/
  3. We’ve released a new AccumeView Newsletter – an Executive Cybersecurity update on our website
    https://www.accumepartners.com/newsletter-type/accumeview-executive-cybersecurity-pulse/


From Baker Tilly

The coronavirus (COVID-19) outbreak is affecting both individuals who get sick as well as organizations and industries worldwide. During this uncertain time, Baker Tilly is ready to help you with practical advice on informing and supporting your employees as well as keeping your business running.

Visit the Baker Tilly CORONAVIRUS PREPAREDNESS RESOURCE CENTER for a number of resources for community banks and small businesses.



From BKD LLP

As the country transitions to a recovery footing from COVID-19, we want to keep you updated on the economic big picture. BKD’s COVID-19 Recovery Dashboard is a dynamic data stream designed to provide a snapshot of the information that’s most important to you.

Whether you’re looking for local COVID-19 activity, unemployment rates, market response or industry metrics, the dashboard has it all in one convenient place to help you make informed decisions in real time. Click the link below to keep tabs on COVID-19 movement in your area and how it’s influencing your industry.


BKD has created a COVID-19 Resource Center to help disseminate important information for our clients and friends as we evaluate ways to mitigate the inevitable financial effects. We’ll keep you up to date with relevant news, changing guidelines, new regulations and anything else we believe you need to know.

As part of our ongoing efforts to provide up-to-date guidance on the rapidly evolving COVID-19 pandemic, BKD is launching weekly webcasts every Thursday at 3pm eastern time, covering topics many businesses and individuals have been asking us. Visit BKD’s COVID-19 Resource Center for more information.



From Burns White

As Burns White addresses the concerns raised by the pandemic, our office locations remain closed, but rest assured, your needs remain our top priority. Our team has mobilized—working remotely to continue to provide timely, high-quality legal counsel. Attorneys in all areas of the law are monitoring this dynamic situation closely to offer guidance on the frequent regulatory mandates and legal updates that may affect you and your business. If you are looking for information, COVID-19 updates are available on our homepage, and I encourage you to visit the page regularly to learn more about important legal changes. Please do not hesitate to contact us about any specific questions, concerns, or matters you may have.

As always, the people at Burns White are here to help you in any way we can. Together, we will weather this storm.



From Bybel Rutledge LLP

In a traditional in-person shareholder meeting, the board, management, and shareholders gather in a pre-determined location to conduct corporate business. A virtual meeting allows shareholders and company representatives to gather using virtual shareholder meeting services. No in-person attendance is available, but all the opportunities afforded to shareholder at a physical meeting are accessible virtually. A hybrid meeting involves a mixture of the traditional physical meeting and the new virtual meeting: shareholders  and  company representatives have the opportunity to attend either a physical meeting or a virtual one. A company must choose a virtual or hybrid meeting format that meets the respective exchange requirements, allows shareholders to exercise all the rights granted under the state of incorporation, and meets the requirements set forth by the company’s articles and bylaws. Bybel Rutledge LLP has released the following legal alert: Virtual and Hybrid Shareholder Meetings In Extraordinary Times.



From CEIS Review Inc.

Over the past 8 weeks impacts of the actions taken to safeguard everyone from the virus and “flatten the curve” have forced many changes on both our personal and professional activities. As we begin the task to assess these changes and their potential impacts we need to also evaluate what tools are available to help with these evaluations. 

CEIS Review has been a key partner to Community and Savings Banks since 1989. Through its team of experienced team of bankers we have been a able to assist our clients through difficult economic periods and we are ready again to provide that assistance today. Our Loan Review and Stress Testing teams can provide expert alternative resources while institutions are focused on day to day operations. Our outputs are excellent resources for management to employ in the decision processes for portfolio management, risk rating analysis, reserve management and capital management.  

Our remote capabilities have enabled CEIS Review to remain as a supportive function for Client Institutions.

Reach out today to discuss how CEIS Review may assist your Institution



From COCC

In these extraordinary times, COCC is proud to announce we are sending service fee rebate checks totaling approximately $1.9 million to all of our clients to our show appreciation for their dedication and service to their communities. COCC’s Board of Directors approved this rebate at its monthly Board meeting in April 2020. This rebate, which will be distributed among COCC’s core clients, represents approximately 20% of COCC’s fiscal year-end earnings in 2020.

This rebate comes in the midst of the COVID-19 crisis, which has tested our community banks and credit unions as they continue to innovate and serve their customers and members. For COCC Chief Executive Officer Richard A. Leone, these efforts underscore the strength and importance of community financial institutions.

“The leadership of our clients throughout the pandemic has been impressive and exceptional,” Mr. Leone stated. “Our clients’ commitment to innovative products and service within their communities is crucial to their customers and members as well as their local economies.”

Throughout our 53-year history, COCC’s cooperative structure has thrived with the success of both our company and our clients. Having experienced consistent financial success year after year, COCC shares our success with our clients, especially in this time of need within the communities of our clients. During this time, COCC has maintained its focus on customer service and product innovation, delivering new products and services to help our clients navigate through the pandemic all while having 95% of COCC employees working remote.

For follow up or questions, please contact Keith Arsenault at keith.arsenault@cocc.com.


With the uncertainty we currently find ourselves in surrounding COVID-19, COCC has worked to ensure that our clients can continue their operations and bring stability to their communities. Throughout the COVID-19 crisis, COCC has been actively engaged with our clients to provide innovative solutions to the issues they face during the pandemic. COCC has remained focused on service and support providing our clients in many ways including:

  • A free and integrated PPP web app/loan workflow
  • Procedural enhancements specific to COVID-19
  • System support and guidance for loan deferrals and payment modifications
  • Remote access
  • Call center support
  • Customer messaging and digital campaigns
  • Proactive advice regarding security/fraud
  • Continuous education and training

This represents a sampling of the ways we have worked with our clients to help them better serve their communities. As the COVID-19 pandemic develops, we continue to undertake new initiatives to improve the operations of our clients.

For your convenience, we have launched a webpage to provide an overview of our response to the COVID-19 pandemic. As new developments arise, we will continue to update our COVID-19 Response page here. If you have any further questions please contact keith.arsenault@cocc.com.



From CSI



From Fiserv

Two PACB Associate Members – Fiserv and StreetShares – partner to provide a fully digital PPP loan application process with E-Tran electronic connection and submission. Here is a link to the demo of the application along with a pdf containing more explanation.

With the next round of PPP funding perhaps available as soon as Thursday or Friday, community banks way want to consider this turnkey process.



From Fitech

As you continue efforts to meet the needs your customers during these challenging conditions, your focus may turn to loan payment options—specifically, the ability to accept debit card payments.

Fitech, a preferred provider of the PACB Services, Inc, can give your institution the ability to process these payments over the phone and via your website—and they can have you fully functioning in as fast as one day.

This virtual banking solution benefits provides your bank with the ability to:

  • Securely accept payments over the phone or via your website
  • Establish recurring payments
  • Lower costs of collection/collecting payments
  • Get customized, online reporting

Fitech is the leading merchant services provider committed to helping community banks be competitive and relevant in today’s market. For more than a decade, they have been investing in payment technology to meet the evolving needs of customers, and they have a proven track record of superior customer service that complements their innovative solutions. Contact Matt Mingenback, Vice President of Sales at Fitech, today at mmingenback@fitech.com or 316-518-8850.



From ICBA Securities

Vining Sparks, ICBA Securities’ exclusive broker, can assist your community bank in producing very attractive fixed rate funding strategies. Below is a very recent “playbook” that explains the strategy and the hedge accounting. For more information, you can contact your Vining Sparks account rep, or Jim Reber, ICBA Securities President, at 800-422-6442 or jreber@icbasecurities.com

Hedging Short-Term or Floating Rate Funding



From Innovative Financing Solutions

Significant Relief for Small Businesses Affected by COVID-19 is Available

The Payroll Protection Program, part of the recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act, provides the Small Business Administration (SBA) with nearly $350 billion for American small businesses impacted by the Coronavirus.

While the program has been passed into law, the SBA has yet to finalize its approval, closing and funding procedures as well as documentation requirements and forms.

While these requirements can and likely will be adjusted to some extent when SBA regulatory guidance is issued, Borrower applicants can prepare to make a formal loan application by following the steps below:

  1. Register to ensure you are notified to make a formal application with one of our Lending Partners as soon as the program becomes available. You will also be invited to an optional webinar with additional information.
  2.  Review the Payroll Protection Program Summary Guidelines
  3.  Calculate your estimated loan amount utilizing our Paycheck Protection Calculator.
  4.  Assemble required documentation to prepare for an application. 

The Senate has officially passed the CARES Act which includes significant relief to small businesses with a generous array of SBA program changes known as the Paycheck Protection Program. The House is expected to vote today or tomorrow and the President is ready to sign into law immediately. We’re optimistic SBA will quickly implement policies to facilitate application processing and we are working tirelessly to prepare for accepting applications by our Lender and Small Business Clients. The following is a high level summary of key details, however; the Small Business Investor Alliance provided an excellent detailed summary and a link to the actual bill.

As mentioned in our previous correspondence, be careful to weigh the benefits of the Paycheck Protection Program which will be administered by the SBA under the 7(a) Loan Guaranty Program versus the SBA Economic Injury Disaster Loan Program as Borrowers can only accept one.

VISIT THE IFS WEBSITE TO READ THE FULL CORRESPONDENCE



From The Kafafian Group

Performance Measurement is a proprietary and true software as a service (SaaS) profitability measurement solution of The Kafafian Group (TKG), a community financial institution consulting firm that is an affiliate member of PACB. It provides line of business, branch, and product profitability reporting to financial institutions on an outsourced basis. Performance Measurement also feeds customer profitability into an institution’s CRM or MCIF solutions. The service is an outsourced service, meaning that costing, transfer pricing, and processing is done by TKG on a tailored institution by institution basis. TKG is waiving set-up fees through June 30. This savings depends on institution size, but for a $1 billion institution, savings would be $20,000.  For institutions with less than $500 million in assets, TKG is waiving set-up fees for the Performance Insight SaaS product that helps banks make smarter, more confident decisions that drive profitability.

For more information, please contact Gregg Wagner at gwagner@kafafiangroup.com or 973-299-0300 x114


The Kafafian Group (TKG) is dedicated to helping financial institutions build strategies and perform better for a successful, long-term future. To add value to our relationship during these unprecedented times, our team is developing short, five minute videos on very specific topics for you and your colleagues to use, share, and keep everyone focused during this unusual time so you emerge stronger than ever.

Is there a specific subject you would like us to cover in a future Banking Short? Please e-mail bbuss@kafafiangroup.com and let us know. If we are not subject matter experts on a topic, perhaps we can marshal other industry experts to deliver valuable insights to you.

TKG is here for whatever you may need. Enjoy, be safe, and be healthy.

VIEW THE TKG BANKING SHORTS



From Kilpatrick Townsend

Kilpatrick Townsend’s COVID-19 Task Force is closely monitoring developments with regard to the Coronavirus (COVID-19) as well as the recommendations of federal, state, and local authorities. We will continue to make information regarding specific known legal issues available here, on our YouTube channel, and via updates to our clients who regularly receive legal alerts and related information. If you are interested in discussing an area of specific concern, we recommend that you reach out to your primary Kilpatrick Townsend point of contact. General questions may be submitted via email to: #COVID-19KTSTaskForce@kilpatricktownsend.com.



From Locke Lord LLP

The safety and well-being of our clients, personnel and families are paramount, and we continue to monitor the overall impact of the COVID-19 coronavirus (COVID-19) outbreak closely. Our preparedness plans have been evaluated and activated to ensure we continue serving our clients with little to no disruption during these unprecedented times. 

We’ve also mobilized across disciplines to create a COVID-19 Task Force that provides a coordinated response to our clients’ range of needs. This includes an FAQ section covering a host of issues, as well as links to recent QuickStudies.

We encourage you to regularly visit OUR COVID-19 CORONAVIRUS RESOURCE CENTER for the most up-to-date information. You will also find access to key contacts at Locke Lord who can put you in touch with appropriate team members.



From Luse Gorman

On March 27, 2020, the President signed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) into law. It provides over $2 trillion to combat the coronavirus (COVID-19) and stimulate the economy. The CARES Act also contains provisions that can assist financial institutions in preserving capital and easing operations. Our Alert, which summarizes these provisions, is available here.


Due to the increasing restrictions placed by federal, state and local governments on the size of in- person gatherings and public movement to reduce the health risks associated with COVID-19, many companies are evaluating whether to change their upcoming annual shareholder meetings, which are traditionally held-in person, to either a meeting held exclusively online (a “virtual meeting”) or a meeting held at a physical location that would allow shareholder or member participation via the Internet or other forms of remote communication (a “hybrid meeting”). For companies contemplating holding a virtual or hybrid annual meeting, Luse Gorman has released the following legal update: Virtual Annual Meetings in Response to COVID-19.

Additionally, in light of the impact of the coronavirus (COVID-19) pandemic on public reporting companies, on March 25, 2020, the Securities and Exchange Commission issued an order allowing public companies, subject to certain conditions, a 45-day extension to file certain periodic reports that would otherwise have been due between March 1 and July 1, 2020. On the same date, the SEC’s Division of Corporation Finance issued guidance regarding its views on disclosure and other securities law obligations that companies should consider with respect to the impact of COVID-19.

Our Alert, which summarizes the steps required for companies to avail themselves of the delayed filing deadline and the SEC’s guidance on disclosure related to the COVID-19 pandemic and related business and market disruptions, is available here.



From Main Street

Serving community financial institutions with excellence is rooted in our DNA. With the COVID-19 pandemic restricting how financial institutions perform daily activities and engage with account holders, their teams are likely wearing multiple hats managing the day-to-day needs. We understand they may be feeling overwhelmed and experiencing information overload in response to sudden and rapid changes. 

The Main Street & TargetSmart teams are here to help your association members through this unprecedented time. To help community financial institutions communicate to the account holders and communities they serve, our team has created a FREE Resource Center! This Resource Center, as well as our recent blog posts, serves as a guide for communicating effectively during this time.  We value our partnership with your association and the members you serve. If our team can support you and your members further during this time, please don’t hesitate to reach out to us.

COVID-19 Blog Topics
We have crafted several informational blogs for you to be able to share with your members to navigate these unfamiliar times. Find information regarding relief programs to help account holders, how to support small businesses through this time, and what account holders want to hear most right now.  More to come here,  so keep checking in with us.  

COVID-19 Resource Center
With limited time and resources to dedicate to crafting communications, our team has compiled an array of digital assets. These include sample social post copy, downloadable images to utilize on various social media platforms or on your website, and helpful tips and resource links. The Resource Center is designed to help take one thing off their plate and aid financial institutions in communicating with account holders during this time.  Share the Resource Center with your members today for access to free downloadable assets!



From Mosteller & Associates

Make sure you are in compliance with the latest COVID-19 requirements concerning employee postings. The Department of Labor (DOL) has released a required employment poster “Employee Rights – Paid Sick Leave and Expanded Family and Medical Leave Under the Families First Coronavirus Response Act.”

This applies to employers with fewer than 500 employeesPlease download, print, and post immediately in the same location(s) as your other required employee postings. It is also recommended to share this information electronically with your employees currently teleworking. Click here to download the Employee Rights Poster

Please contact us with any questions:(610) 779-3870 or Scott Smith at Scott@mostellerhr.com

Remember Your Employee’s Health is Vital to Your OrganizationPractice Social Distancing


Mosteller & Associates is closely following the ever-changing issues under the COVID-19 pandemic relative to organizations and their employees. We are in unchartered territory and are committed to supporting the business community and the employees of our friends and clients. How we lead, manage, and treat people (our most valuable asset) through turbulent times will serve to define who the organization is perceived to be by employees, when the crisis subsides.

Mosteller & Associates is combing government and health agency websites and newsfeeds daily and updating the guide below. As we see significant changes, we will provide a “What’s New” follow-up document. Included in the following guide are items such as an Employer Checklist, suggestions on handling employee issues concerning their health and the ability to work, plus the day-to-day changing regulatory environment with the just passed federal legislation as well as actions we are seeing from area employers. If you need more detailed guidance assistance with developing the right approach, please contact us directly at 610-779-3870.

Click here to download the attached PDF document to stay current!



From OnCourse Learning

As the number of global cases of COVID-19 nears 100,000, and the number of US infections rises, it’s time for financial institutions to dust off their Pandemic Preparedness Plans and revisit our plans for operating with a reduced staff. Pandemic Preparedness, which falls under the umbrella of Business Continuity Management, was all but removed from the updated FFIEC Business Continuity Management booklet in November of 2019, but we’ve quickly remembered that doesn’t mean that the threat of a global pandemic isn’t real.

OnCourse Learning is offering an OnDemand Recorded seminar covering the current state of the COVID-19 – the Wuhan Coronavirus – and what financial institutions need to do from a Pandemic Preparedness and Business Continuity Perspective.

CORONAVIRUS – CHECK YOUR PANDEMIC PLAN AND BCP



From Pentegra

Pentegra, a leading provider of retirement plan and fiduciary outsourcing solutions, has made several recent changes designed to help its clients who have been impacted by the COVID-19 pandemic.

“These are challenging times, unlike what most of us have ever seen,” said Pentegra President and CEO John Pinto. “Like everyone, each of us here at Pentegra is focused on the health and safety of our team and our families, and on continuing to support our clients and partners in every way possible.  We are also cognizant of the fact that many participants may be experiencing economic difficulties at this time, and are uncertain about their financial future. We want them to know that we are here for them.”

Many of Pentegra’s efforts are being made in conjunction with implementation of the Coronavirus Aid, Relief and Economic Security (CARES) Act, which includes retirement plan provisions designed to provide financial relief for participants impacted by the virus. These include expanding permissible distributions and loan rules, and extending loan repayment periods for affected participants.

Pentegra has designed a process that will make adopting these provisions as seamlessly as possible, and has created an easy way for clients to adopt all three provisions by automatic adoption with an opt-out feature.  In addition, Pentegra will be waiving any amendment fees related to adopting the CARES provisions.  

Pentegra understands that affected participants will want to take advantage of these features as soon as possible and will make coronavirus-related withdrawals and qualified loans a priority. To help affected participants, the company will also waive transaction fees related to coronavirus-related transactions.

Pentegra also recently introduced a COVID-19 and CARES Act resources page for clients—a place where they are able to access materials that provide an overview of the CARES Act and how it impacts retirement plans along with frequently asked questions regarding COVID-19 and retirement plans. View the web page here.

“It is through these efforts and others that we are helping as many people as possible navigate this challenging time,” Pinto said. “We encourage everyone – client or not – to contact us with any questions they may have on this, or other subjects. Most importantly, stay safe and be well.”


The President has signed the Coronavirus Aid, Relief and Economic Security (CARES) Act into law. The CARES Act is the third round of federal government support in the wake of the coronavirus crisis and associated economic fallout. It provides further support to both individuals and businesses impacted by, or experiencing financial consequences as a result of COVID-19.

To better understand the CARES Act provisions please watch Pentegra’s webinar, The CARES Act – What it Means For You, Your Retirement Plan and Your Participants.  We’ve also prepared a comprehensive summary of the Act, which can be accessed here; both of which are intended for you to share with your commercial business community.

Remember that during this time 401(k) Plan Sponsors still have a legal responsibility for operating their plan in accordance with ERISA.  Times like these present opportunities to help our commercial clients and their valued employees, and better position them for future success.  Pentegra is here to help you and your community navigate these changes. If you have questions, please contact Mark Hogan, Regional Director, Pentegra at 513.259.9222, or mark.hogan@pentegra.com.



From PWCampbell

Teller GuardsCLICK HERE FOR THE PDF

Most Banks have made adjustments to servicing customers in their branch or office locations.  If your Bank is still taking appointments for consultation, or providing any services in the branch these teller guards provide a safety measure to combat the spread of the virus.  If your Bank is not providing any services in the branch, upon reopening, these are a safety measure you can use to protect your employees and customers. 

PWCampbell’s Teller Guards are designed to require very little assembly by the staff allowing for no outside personnel required to be onsite and the unit, while sturdy, does not require permanent installation that would leave damage to the work surface.

If you would like more information and pricing on these, please contact PWCampbell’s Branded Environments at orders@pwcampbell.com or 412.963.0100.

Floor Graphics – CLICK HERE FOR THE PDF

Bankers continue to serve customers in any way possible including appointment consultations and branch services. PWCampbell offers customized floor graphics to help you comply with the CDC recommended protective measures to safeguard against the spread of COVID-19.  If you are seeing customers in your branch or office, or are planning for when you do reopen, these will be vital to promote social distancing for visitors. The floor graphics can be customized to your branded colors and messaging as well as shape preferences.

To get more information on customization options and pricing, please contact PWCampbell’s Branded Environments at orders@pwcampbell.com or 412.963.0100.



From RKL LLP

RKL LLP has created a resource center to help employers cut through the deluge of information and identify what your organization needs to do in both the short and long-term. You’ll find our latest updates, action items and webinar recordings. And we want to hear from you. Please use the form found on their website to submit your questions, needs and challenges. This feedback will help inform future webinars and the guidance we’re working hard to deliver during this critical time.

Please visit RKL LLP’s CORONAVIRUS EMPLOYER RESOURCE CENTER for more information.



From S&P Global

Coronavirus: The Global Impact

Subscribe to our coronavirus newsletter today. Stay up to date with the latest news and insight from S&P Global Market Intelligence, on public health, the global economy, its sectors, and commodity markets. This newsletter will be sent every Thursday.

https://www.spglobal.com/marketintelligence/en/topics/coronavirus?utm_source=coronavirusnewslettersignup

https://pages.marketintelligence.spglobal.com/Coronavirus-Newsletter-Sign-Up.html



From S.R. Snodgrass, P.C.

At S.R. Snodgrass, we’ve been working diligently to keep our community bank clients informed during this uncertain time. We’ve added new resources to our website, which are available for download, including a white paper on loan modifications and other guidance related to COVID-19. Please click here if you would like to receive our future resources via email. We encourage you to reach out to us by phone or email with questions or concerns that you have.



From Sterling Compliance LLC

As you are all working in good faith with your borrowers who are seeking payment relief  during this unprecedented, difficult time, there are many uncertainties about various aspects of the accommodations being made.  We wanted to assist with a couple of compliance  and other considerations you want to keep in mind.

Modification or Refinance: Because payment deferrals do not constitute a new obligation, even if you capitalize interest, you are not required to issue new disclosures related to Reg Z, RESPA.  However, be sure your documentation of the payment deferral is a modification and not a refinancing.  Refinancings would require all new disclosures.  Be sure your payment deferral or extension agreements are clear about the impact on the loan term – whether the loan balance will reamortize to pay off by original maturity once payments resume, or a balloon payment will be created, or whether the maturity is extended for the number of months of deferral.  Are you extending only the principal portion, or including interest and escrow? Consumers need to be clearly informed to make appropriate decisions.

Flood Insurance: You can use a prior flood determination for modifications, increases, renewals and extensions (MIRE), as long as you’re not making a new loan, under the following conditions:

  • The previous determination is not more than 7 years old. 
  • No new or revised flood map has been issued in the interim.
  • The determination was recorded on the SFHDF.

Additionally, capitalizing interest increases the loan balance and could require an increase in the amount of flood insurance required if the property is located in a SFHA.  The regulatory agencies have not issued any reprieve to this point on flood insurance requirements for modifications related to COVID-19 payment relief.

Escrow: If your payment deferrals also include deferment of escrow payments, make sure the modification agreement addresses the potential future shortfall and how that would be handled, since the bank would still be making those tax and insurance payments as scheduled on the borrower’s behalf.

Negative Reporting to Credit Bureaus: Payment deferrals generally prevent the loan from being considered past due.  You may want to evaluate whether to suspend reporting of negative information to credit bureaus more broadly during this time.  You are not required by law to report to credit bureaus, but are required by law to report information accurately if you do.  

Classifications of Loans with Payment Accommodations: The supervisory agencies continue to publish joint statements to help clarify matters for financial institutions making payment accommodations to borrowers due to COVID-19.  We encourage you to go to the link periodically to view these helpful statements.

statement issued March 22 reminds institutions that not all modifications of loan terms result in a TDR. Short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs. This includes short-term — for example, six months — modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant.

The agencies’ examiners will exercise judgment in reviewing loan modifications, including TDRs, and will not automatically adversely risk rate credits that are affected, including those considered TDRs. Regardless of whether modifications are considered TDRs or are adversely classified, agency examiners will not criticize prudent efforts to modify terms on existing loans for affected customers.

Foreclosures: President Trump on Saturday ordered foreclosures and evictions to cease for 60 days across the U.S. in response to the coronavirus pandemic.  Freddie Mac and Fannie Mae have also said they would allow forbearance options up to 12 months to borrowers affected by the pandemic. 

Fannie|Freddie Appraisal Flexibility: Appraisal Flexibility

Possible CRA Credit: You may get CRA credit for the payment deferrals and other accommodations to borrowers under financial distress due to COVID-19.  See Joint Statement on CRA Consideration for Activities in Response to COVID-19

As the pandemic situation and its impacts continue to evolve daily, Sterling Compliance remains committed to our clients and will help in any way we can.  We have received many, many questions, reviewed documents and messaging published by clients in response to the pandemic, and continue to monitor numerous sources for updates and information to help you through it.

We look forward to being able to resume travel and bank visits soon so we can see all of you in person, who we consider more than just clients, but dear friends!!  Stay well!



From Stradley Ronon

Stradley attorneys are providing briefings that discuss the impact of COVID-19 on a wide range of businesses. We are regularly monitoring federal, state and local government guidance and will provide regular updates to guide you through the changing business climate. Please click here if you would like to sign up to receive our briefings via email.

Please visit Stradley Ronon’s COVID-19 RESOURCE CENTER for more information.



From StreetShares

Two PACB Associate Members – Fiserv and StreetShares – partner to provide a fully digital PPP loan application process with E-Tran electronic connection and submission. Here is a link to the demo of the application along with a pdf containing more explanation.

With the next round of PPP funding perhaps available as soon as Thursday or Friday, community banks way want to consider this turnkey process.

StreetShares is committed to getting banks launched in 24-48 hours to participate and offer PPP loans in this format.


We are committing to having our small business lending platform launched in 7 days for any banks that need it at no cost

With branch closures or reduction in hours and staff you can still have a quick digital small business loan application and decisioning available for your small business owners. I know the government is creating programs to help but that may take some time. This is a real time solution for your small business members that will be directly impacted by this crisis. 

If we can be of service please do not hesitate to reach out.  

Here is the promotion:

We are all feeling the pressure to meet the needs of small businesses during this crisis. If we can help, please do not hesitate to let me know.

With that in mind, we are offering a time-sensitive promotion.

You can now launch Business Lending-as-a-Service in 7 days or less with all fees waived*:

  1. Online Application – No need to apply in-branch. Keep your employees and business owners safe, while funding loans in as little as 24 to 48 hours.
  2. Waived Fees – A branded experience completely free until the end of 2020, if you sign up during our limited-time promotion from March 16, 2020 – April 10, 2020; restrictions apply.   
  3. 7-day Implementation – You will have absolutely everything you need for small business lending within 7 days: technology, people, processes, and policy.

* Promotion is available from 3/16/2020 to 4/10/2020 11:59 pm EST. You must sign an order form during this period to be eligible for this promotion. StreetShares reserves the right to extend or cancel this promotion at any time. Terms, conditions, and restrictions apply. The standard “Mainstreet Heroes Kit” launch date is 7 days from the execution of the order form. Contact your StreetShares representative for details at (571) 323-6020. 



From URL Insurance Group

How will the Coronavirus (COVID-19) stimulus package benefit employers and employees?

Available On Demand – 30 minutes

Take a look at the provisions within the Coronavirus COVID-19 stimulus package and how they may provide relief.

On Demand Webinar Available Now.