SBA Says Iowa Now Designated as Disaster Area

Small businesses in Iowa can now apply to receive low-interest federal disaster loans from the U.S. Small Business Administration after the SBA approved a recent request by Gov. Kim Reynolds. Small businesses that have been financially affected by the spread of COVID-19 since Jan. 31 may qualify for loans to pay fixed debts, payroll, accounts payable and other bills. More details and applications are available online. Read more.

SBA Disaster Assistance Webinars for Small Businesses



The SBA’s Iowa District Office will host two Webinars this week to give an overview of assistance available to Iowa small businesses through the SBA’s Economic Injury Disaster Loan program. Webinars will be identical in content, and both will be held from 2:30-4:00 pm on Tuesday, March 24 or Thursday, March 26.

The webinars will discuss loan program details, eligibility, application requirements as well as where and how to submit a loan application. There will also be information on counseling assistance available from SBA Resource Partners (Iowa Small Business Development Centers, SCORE, Women and Business Center and Veterans Business Outreach Center).

Attendees will join the webinar via Skype. CLICK HERE to register for the March 24th webinar. There will be a visual presentation, but you can join by audio only at (202) 765-1264 using ID# 118151981#

CLICK HERE to register for the March 26th webinar. You can join by audio only at (202) 765-1264 using ID# 480330157#.

How to help small-biz customers during the pandemic

A new ICBA Main Street Matters post offers a checklist of tactics community bankers can deploy to support their small-business customers during the coronavirus pandemic.

The post from ICBA's Deborah Matthews Phillips encourages community bankers to maintain communication, help small businesses make the most of digital solutions, and offer educational tools. Read the post.

Interagency Statement on Loan Modifications by Financial Institutions Working with Customers Affected by the Coronavirus

The FDIC, the Board of Governors of the Federal Reserve System (FRB), the Office of the Comptroller of the Currency, the National Credit Union Administration, the state banking regulators, and the Consumer Financial Protection Bureau issued the Interagency Statement on Loan Modifications and Reporting by Financial Institutions Working with Customers Affected by the Coronavirus to encourage financial institutions to work constructively with borrowers impacted by the Coronavirus Disease 2019 (referred to as COVID-19) and provide additional information regarding loan modifications.

Statement of Applicability to Institutions with Total Assets under $1 Billion: This Financial Institution Letter (FIL) applies to all FDIC-supervised institutions.

Federal Reserve Actions

extensive new measures to support the economy

The Federal Reserve is committed to using its full range of tools to support households, businesses, and the U.S. economy overall in this challenging time. The coronavirus pandemic is causing tremendous hardship across the United States and around the world. Our nation's first priority is to care for those afflicted and to limit the further spread of the virus. While great uncertainty remains, it has become clear that our economy will face severe disruptions. Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes and to promote a swift recovery once the disruptions abate.   Read more.

technical change to support the U.S. economy and allow banks to continue lending

The Federal Reserve Board on Monday announced a technical change to support the U.S. economy and allow banks to continue lending to creditworthy households and businesses.

The interim final rule will phase in gradually, as intended, the automatic restrictions associated with a firm's "total loss absorbing capacity," or TLAC, buffer requirements, if the levels decline. TLAC is an additional cushion of capital and long-term debt that could be used to recapitalize a bank if it is in distress. The change will facilitate the use of firms' buffers to promote lending activity to households and businesses.   Read more.

FOMC statement

The Federal Reserve is committed to use its full range of tools to support the U.S. economy in this challenging time and thereby promote its maximum employment and price stability goals.

The Federal Open Market Committee is taking further actions to support the flow of credit to households and businesses by addressing strains in the markets for Treasury securities and agency mortgage-backed securities. The Federal Reserve will continue to purchase Treasury securities and agency mortgage-backed securities in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions. The Committee will include purchases of agency commercial mortgage-backed securities in its agency mortgage-backed security purchases. In addition, the Open Market Desk will continue to offer large-scale overnight and term repurchase agreement operations. The Committee will continue to closely monitor market conditions, and will assess the appropriate pace of its securities purchases at future meetings. Read more.

Coronavirus and Financial Crime

by Becki LaPorte, reprinted from Computer Services Inc.

In the past weeks, COVID-19 (“Coronavirus”) has affected nearly every aspect of day-to-day life. To combat the pandemic, businesses have already taken many steps. Most have needed to work toward constant cleanliness and reassure customers through email. The travel industry has offered incentives for customers to keep traveling, while constantly providing updates on the virus. Business emails, news programs, social media and even grocery store small talk cannot avoid the topic. As such, people around the world have given and received information and advice on almost every facet of the virus, from preventative measures and latest cancellations to the status of toilet paper at Costco.

Sometimes it seems as if there is as much misinformation as there is information. While most of us do our best to filter through the advice they find helpful or ludicrous, that general sense of public unease and concern offers an opportunity for scammers to shine. Financial institutions must consider whether they are inoculating themselves for the onslaught of crime designed to take advantage of the confusion. Read more.

Resources and Tips on Avoiding Coronavirus Scams

Top coronavirus myths, hoaxes and scams

Scammers are taking advantage of fears surrounding the Coronavirus. The surge in myths, hoaxes and scams surrounding COVID-19 shows no sign of abating. In some cases, the scam plays off the myth. In other cases, it’s simply misinformation. Here are some of the worst misinformation, scams and hoaxes.

If you see a suspected scam, call the hotline for the National Center for Disaster Fraud at 1-866-720-5721 or email the NCDF at disaster@leo.gov, the department said. The NCDF is a part of the Justice Department.