New video highlights banking industry response to COVID-19

A new video released by ABA today highlights the many ways America’s banks have stepped up to support customers and communities facing unprecedented challenges during the coronavirus pandemic.

As lawmakers discuss whether to spend more money for coronavirus relief, Federal Reserve Chairman Jerome Powell has told the Senate banking committee the central bank is ready to use all tools to support the economy. The pace and the breadth of the downturn brought by the pandemic "are without modern precedent and are significantly worse than any recession since World War II," Powell said. Read more.
CFPB releases video on receiving EIPs via prepaid debit card

With approximately 4 million individuals receiving their CARES Act economic impact payment on a prepaid debit card beginning this week, the Consumer Financial Protection Bureau today released an informational video in both English and Spanish on how they can access their funds.‌
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Consumers may receive their payment on a Visa-branded, prepaid card issued by MetaBank. The video provides an example of what the card will look like and instructs consumers that they must activate their card in order to access the funds. Once the card is activated, consumers may use it to get cash, request a check or make purchases anywhere that Visa debit cards are accepted.  Watch the video .  Learn more . ‌
Powell, Mnuchin: MSLP to be operational by end of May 

Top policymakers today said that they expect the Main Street Lending Program “to be up and running by the end of the month,” according to comments made by Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin in the Senate Banking Committee hearing. Both noted that starting the program—which is intended to provide up to $600 billion in credit to small and midsize firms—has been a top priority, though Powell qualified that given the complexity, the MSLP's launch might slide "a day or two into June."
 
“Main Street is in a class by itself” among the Fed’s 13(3) facilities, Powell noted, acknowledging the challenges of standing up a program intended to serve small, medium and large firms from “very different industries with very different credit needs—some of them asset-based, some of them cash-flow based,” he said. “It’s a very complex undertaking and people are working literally around the clock and have been for weeks to get it ready by the end of this month.”
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In related news, the Fed announced that it would hold a drop-in session on May 22 at 2 p.m. EDT and an informational webinar on May 28 at 2 p.m. EDT for potential lenders in the MSLP. The drop in session will provide an opportunity for lenders to ask questions about the program, while the webinar will give lenders a chance to learn more about the infrastructure and operations of the MSLP.
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Registration for these live sessions will be limited to two representatives per institution, and recordings will be available after each program.  Register now .
As bankers await release of Form 1502, SBA extends submission deadline

In updates to its Paycheck Protection Program FAQs yesterday, the Small Business Administration announced that it will extend the deadline for lenders to submit the still-yet-to-be-released Form 1502, which must be completed in order for lenders to receive their processing fee. The deadline will be extended to May 29, 2020, or 10 calendar days after disbursement or cancellation of the PPP loan, whichever is later.
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This update came shortly after Treasury Secretary Steven Mnuchin signaled in yesterday’s virtual Senate Banking Committee hearing that the deadline would be moved. The previous deadline for submitting the form was May 22.
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In other PPP news, SBA released updated lending figures last night. As of May 19 at 5 p.m. EDT, SBA had approved 4.37 million PPP loans amounting to $512.9 billion across both PPP rounds, leaving more than $156 billion in congressionally appropriated funds available. The totals were lower than previous sums reported, as certain borrowers with access to other forms of liquidity returned funds in advance of Monday’s deadline.  Read the FAQs .  View PPP lending data .

Several US public companies that received Paycheck Protection Program loans have returned the money, but at least 30 are hanging on to the funds. These firms are warning shareholders that the companies might be audited and that unfavorable findings could lead to civil, criminal and administrative penalties. Read more .
Mnuchin: Treasury prepared for losses on corporate aid

The Treasury Department is "fully prepared to take losses in certain scenarios" on $500 billion in aid for companies, Treasury Secretary Steven Mnuchin has told the Senate banking committee. Mnuchin also said he expects the economy to recover this year but warned of "permanent damage" if stay-at-home orders are not lifted. Read more.
Annual membership meeting goes virtual
CBA Membership Meeting - join us online
 
In light of the restrictions and safety measures in place amid the COVID-19 pandemic, the Colorado Bankers Association will be hosting its annual membership meeting virtually.
 
Join us May 21 at 10 a.m. to participate in leadership elections for the 2020-2021 year and to discuss pressing issues related to the effect of the pandemic on the banking industry. The meeting will be immediately followed by a board of directors meeting.  
 
Nominees for the 2020-21 year are: 
Chairman : Nathan Ewert, FNB Fort Collins 
Incoming chairman : Mike Brown, Alpine Bank 
Treasurer : Mark Hall, Vectra Bank 
 
When: May 21, 2020 - 10 a.m.
Colorado Bankers Association
303-825-1575 | 303-825-1585