December 23, 2020

IBANYS Weekly E-Newsletter

Visit our website at www.ibanys.net to review all our daily updates on COVID-19 beginning on March 16.

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As 2020 draws to a close, the staff at IBANYS wishes everyone a safe, healthy and joyous holiday season and Happy New Year. Our next newsletter will be published on Wednesday, January 6, 2021.

The President's Message By John Witkowski, President & CEO With Christmas and New Year's Day upon us, 2020 is ending as we might have expected. There was major news out of Washington, as Congress passed the long-negotiated and awaited next round of coronavirus relief package, only to learn the president may not sign it without the changes he wants made. In Albany, the budget crisis continues as the package did not include any assistance to state and local governments, and the possibility of a special session to address these and other issues is still being considered! Some legislators want to increase taxes on the highest earners in the state, but the Governor wants to hold off on any changes until next year--still hoping for federal assistance before the April 1 budget deadline. We are obviously preparing for a new administration in Washington, with many new officials who will soon be in place in positions that will directly impact community banks. There will be several new members of the New York Congressional Delegation to inform and educate about the importance of community banks. . .and, an emboldened and strengthened Democratic majority in the State Senate and Assembly will likely pose new challenges with their agenda in Albany. We will cover these and other important items in today's newsletter. Then, we'll take a brief hiatus during the week between Christmas and New Years before resuming publication on Wednesday, January 6, 2021 -- the same day the NYS Legislature convenes for the new year. ********** We wish you happy holidays, and hope you are staying healthy and safe. As always, we thank you all for all you do for community banking in our state. The IBANYS team is looking forward to working with and supporting all of our Preferred Partners, Associate Members and Community Banks in New York State in 2021.

IBANYS 2021 Virtual Education Meetings

IBANYS 2021 HR Update - Live Webinar This program will provide updates on New York and federal employment laws. Topics will include New York’s Paid Sick Leave Law, complicated leave issues for COVID-19 absences, travel restrictions and quarantine requirements for employees, COVID-19 accommodations, mandatory vaccinations for employees, and legal issues for remote employees.  Click here to learn more & to register

Mark Your Calendars & Save these dates -- More information coming soon!!

Thursday, February 4, 2021 - Compliance Webinar - 8:30 a.m. - 12:30 p.m. Tuesday, March 2, 2021 - Directors Webinar - 8:30 a.m. - 2:00 p.m. Watch your emails and the weekly newsletter for more information on these programs and additional dates to be added.

WEBINARS

IBANYS Webinars Are you participating in IBANYS webinars? Now is the time! IBANYS webinars provide timely, important information on subjects of interest to New York community bankers including human resources, business development, investment, compliance and security and much more. They are valuable not only for their content, but for their convenience and low-cost. Take part from the comfort and privacy of your office, without leaving the bank.  Click for full list of webinars

Subscription Tokens The More You Buy, The More You Save   How does it work: Tokens can be used to purchase live or recorded webinars anytime, with no expiration! Tokens for both live and recorded webinars are available for an additional fee. (What’s the difference? Click here for the full description.)   Once you have your Subscription Token code, you can immediately register for webinars by using the code at checkout! (Subscription tokens not applicable for full series registrations, or other specials.)

Albany Update

The new coronavirus relief/stimulus package approved by Congress this week did not include any funding assistance for state and local governments. With New York State facing a multi-billion dollar budget gap -- due in large part to the pandemic -- the NYS Legislature has still not ruled out convening a a year-end "lame duck" session to consider raising taxes on the wealthy, and perhaps extending an eviction moratorium for renters. The State Senate and Assembly have yet to agree on the specifics of how to address the revenue shortage, including whether and how to increase taxes on the highest earners in the state, or on providing protections for renters and undocumented immigrants.  Governor Cuomo urged the Legislature to wait until the April 1 state budget deadline to consider tax plans and other remedies, as he hopes the incoming Biden administration might provide federal help. The Governor had been seeking $15 billion in aid from Congress. The NYS Legislature released its session calendar for 2021. The session opens January 6, and is scheduled to adjourn June 10. There are currently 60 session days scheduled. As in 2020, the session will be primarily virtual. This year, the Legislature changed its rules to allow for virtual/remote voting and meetings, and a similar model will likely be used in 2021. As of now, it appears that the State Capitol will remain closed to lobbyists and the general public. The 2021 legislative agenda may very well include additional forbearance legislation for residential investment properties and commercial retail space mortgage payments. To read the legislation, and IBANYS' Memo in Opposition: Click here to read the legislation. Click here to read IBANYS Memo in Opposition. Democrats in the Legislature appear to have big plans on what they can get done in the 2021 session. In the third straight year of one-party rule in Albany, Democrats appear more emboldened than ever. They now control more than two-thirds of the seats in the Assembly and the state Senate -- veto-proof majorities. https://www.cityandstateny.com/articles/politics/new-york-state/what-expect-2021-state-legislative-session.html?mc_cid=27ed641c41&mc_eid=e55c2af3e3 The New York state Capitol remains closed to the general public on the eve of a legislative session where lawmakers will consider key issues including raising taxes and adjusting the state budget. The Capitol was closed to visitors on March 14 after two state legislators tested positive for the coronavirus, and access restrictions have remained in place ever since. Both chambers of the Legislature passed resolutions allowing members to cast their votes remotely. The Governor and legislative leaders said there are no plans to reopen the Capitol, citing the continuing pandemic.  Governor Cuomo released new guidance for the state’s rent relief program, reopening the application period and expanding eligibility after roughly $60 million of a federal allotment of $100 million for the program went unused. The federal funds are set to expire at the end of the year, however, and tenant advocates criticized the governor for waiting to take action to expand eligibility for the program. Under the new criteria for eligibility, households no longer have to have been considered rent-burdened before the pandemic to qualify, but must have a household income level at or below 80% of the area median income pre-pandemic, and have lost income between April 1 and July 31.

Washington Update

Congress passed a $2.3 trillion government funding and coronavirus relief measure that, once signed into law, will keep the federal government running for the rest of the fiscal year, send $600 in direct payments to Americans, revive a $300-per-week supplemental benefit for the unemployed and provide billions of dollars in aid for businesses. The passage of the $900 billion COVID-19 stimulus package caps months of negotiations that followed the $2.2 trillion CARES ACT enacted in March. President-elect Joe Biden pledged that additional aid - especially relief for state and local governments, which was not included the latest package - would be forthcoming once he takes office.  IBANYS summarized the changes to the Paycheck Protection Program (PPP) included in the new coronavirus relief/stimulus package approved this week. To read the summary: Click here. ICBA noted that Coronavirus relief/stimulus bill contains community bank-advocated provisions. Months of relentless advocacy by ICBA (with strong support from IBANYS) and community bankers, with the support of their small business customers, helped secure our advocated provisions that will ensure continued support for consumers and small businesses amid the ongoing coronavirus pandemic, ICBA President and CEO Rebeca Romero Rainey explained in a message to community bankers. “Through tens of thousands of phone calls and direct messages to your members of Congress, you made your voices heard, community bankers, and once again Washington paid attention.” The message followed a national news release outlining the ICBA-advocated provisions in the stimulus package, which will: Simplify Paycheck Protection Program loan forgiveness; Fully forgive Economic Injury Disaster Loan advances, ending the EIDL debt trap; Support a new round of PPP lending; Allow tax deductibility of business expenses paid with PPP funds; Extend troubled debt restructuring (TDR) relief; Provide agricultural sector support. A more detailed summary prepared by ICBA can be found here and will be updated with additional information as it is known.  President Trump now wants Congress to change the $900 billion coronavirus relief bill (and $1.4 trillion government funding measure) passed this week by increasing the $600 stimulus checks to $2,000 (or $4,000 per couple), to get rid of provisions in the larger government spending bill he described as "wasteful spending and much more" and to provide more funding for small businesses. The President suggested he might not sign the legislation passed by Congress this week. House Speaker Pelosi responded Democrats would meet as soon as Thursday to advance the $2,000 stimulus checks: "Let’s do it!" she tweeted. However,multiple sources said the president's comments were unlikely to prompt any renegotiation. Senator Ben Cardin, top Democrat on the Senate Small Business Committee, believes the window for so-called Paycheck Protection Program loans should reopen within a matter of days "because that process is understood." He expects the Trump administration will could be ready to begin issuing a new wave of payroll support loans to small businesses by the beginning of the year.