April 1, 2020                                                                                                      No copyright infringement intended
 

 
 
 
 
CFT
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In-sites
An Information Resource Center


To assist community banks in these uncertain times ACB has compiled a repository of current information from various sources regarding the status of the impact of the coronavirus on our industry.  Click on the link for the latest information from these sources.  Be vigilant and be safe. 
 
Treasury Releases Information on SBA Program! 
Yesterday afternoon, the Treasury Department released some initial information regarding the Small Business Administration's $349 billion lending program under the Coronavirus Aid, Relief, and Economic Security Act. More information will be released by the SBA soon. 

Frequently Asked Questions 
Who is eligible to lend
How will lenders be compensated
And more

Find out Here!

 
CARES Act with Community Bank Measures Signed  

The Coronavirus Aid, Relief, and Economic Security (CARES) Act includes several measures that will better enable community banks to provide needed credit in local communities.  President Trump signed the bill into law after it passed the House on a voice vote following a unanimous vote in the Senate.

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 .

 
SBA Planning Guidance on New Loan Program     

The Small Business Administration is working to issue guidance 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.
 
New analyses from the Economic Innovation Group, and Senate Small Business Committee offer additional information on the program.

 
Agencies Extend Call Report Filing Deadline

Federal regulators are permitting banks to delay filing their March 31 call reports for 30 days. The Federal Financial Institutions Examination Council encouraged financial institutions to contact their primary federal regulator ahead of the official filing date if they anticipate a delayed submission.

 

The FFIEC members also said financial institutions have built up substantial levels of capital and liquidity over the past decade, positioning them well to support the needs of households and businesses. The agencies said they will provide guidance on how to identify workers as essential critical infrastructure workers.

 

ICBA this week 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. It and additional resources are available on ICBA's Crisis Response and Preparedness Center.

 
Bank Exams Delayed     

The Federal Reserve is temporarily cutting back on its bank examinations, particularly for companies with assets less than $100 billion, as the coronavirus pandemic continues to disrupt the U.S. economy. The Fed is also giving the banks it supervises more time to resolve any outstanding non-critical supervisory findings, which the regulator said will "allow firms to focus on heightened risks in this current environment and assist consumers."
 
The central bank is also postponing the planned implementation of its payment system risk policy changes by six months to Oct. 1 from April 1 because of the ongoing coronavirus pandemic. The policy on payment system risk establishes the maximum levels of daylight overdrafts that depository institutions may incur in their Federal Reserve accounts.

 
Fintech Window of Opportunity     

Fintechs have spotted a window of opportunity for them to try lending to small businesses themselves through the government's $349 billion emergency loan plan under the Small Business Administration program, American Banker reports. About 1,700 banks and credit unions are currently joining the SBA program. But fintechs expect a massive loan demand, making their participation in the emergency lending program a sensible possibility, according to the news outlet.

 
Credit Bureaus Push Back     

Credit bureaus are pushing back against legislation introduced by Democrats last week seeking into implement a four-month moratorium on all negative credit reporting, American Banker reports. In a letter, House Democrats said that the coronavirus pandemic will have "crippling, long-term, and devastating effects" for those unable to afford the unfavorable credit events that will result from missed payments if credit reporting agencies are not willing to adjust. However, the companies stated that preventing negative information would lead to less accurate loan decisions, the news outlet reported.


 

Postponed Due Health Concerns -
Watch for Re-Schedule Details


Compliance Conference - September 9 & 10, 2020

Management & Directors Conference - November 10, 2020

** Watch For Details **