IBANYS Weekly E-Newsletter |
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Visit our website at www.ibanys.net to review our daily updates on COVID-19.
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2021 "Come Back Celebration" Executive Fall Meeting
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The President's Message
By John Witkowski, President & CEO
A reminder: Our new address is:
Independent Bankers Association of New York State
194 Washington Ave, Suite 420
Albany, NY 12210
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A few notes & reminders for all:
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Come Back Celebration Success! THANK YOU to all of our sponsors/companies that supported our event and to a great line up of speakers. See details below in newsletter.
- IBANYS’ Chief Credit Officers Committee held its second meeting this morning. A main topic of discussion was CECL. Thanks to all who participated, and to Chairman Rob Nichols, EVP & Chief Credit Officer at Pioneer Bank.
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IBANYS and Greencheck are co-hosting a Cannabis Roundtable on September 28th - 2:00 - 4:00 p.m. Please see details below in today's newsletter to learn more and to register.
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On September 9, U.S. Small Business Administration (SBA) Administrator Isabella Casillas Guzman announced major enhancements to the COVID Economic Injury Disaster Loan (EIDL) program, a federal disaster relief loan designed to better serve and support our small business communities still reeling from the pandemic. The SBA is ready to receive new applications immediately from small businesses looking to take advantage of these new policy changes.
The SBA Upstate New York District Office will lead a webinar providing an overview of the changes to the COVID EIDL program, instructions for how to apply, and resources for applicants. There will also be an opportunity for participants to ask questions.
Thursday, September 16, 2021
10:00 AM – 11:00 AM EDT
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The Buffalo Bills Alumni are hosting a weekend event on Friday, September 24 and Saturday, September 25 to support local charities of Western NY and the Cure the Blue Foundation.
Please click below for the complete brochure for registration information for the Friday night Gala, Saturday golf tourney, and sponsorship opportunities which include tickets for all events.
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IBANYS "Come Back Celebration"
Executive Fall Meeting
September 13-14, 2021
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Successful Meeting!!
Monday, what a beautiful day to kickoff our "Come Back Celebration". We had "wall to wall" sunshine and our golfers and boat tour participants enjoyed their respective day. The cocktail hour held on the outside patio was enjoyed by all followed by dinner and our Keynote speaker Steven "Steve" Ingalls, President of Catalyzer.
On Tuesday, our speakers shared their knowledge and expertise with our attendees on an array of different topics.
Our "Come Back Celebration" had a little something for everyone. We want to thank all those who attended, our sponsors and our speakers.
Please mark you calendars and save the dates June 13-15, 2022 for IBANYS Annual Convention which will be held at the Turning Stone Resort and Casino.
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ASSOCIATE MEMBERS & PREFERRED PARTNERS |
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Live Webinar
September 23, 2021
12pm EST
The webinar will address onboarding treasury services with an automated workflow.
Click the webinar title to register.
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presents
Barret Executive Leadership Academy:
Strategic Planning and Talent Development
with Mike Synk
This program is designed to provide bank executives tangible takeaways as they build talent recruitment, development, and management strategies.
Topics include:
- The Connection Between Strategy & Talent Development
- Creating a Talent Inventory
- Using Scorecards
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Do I Have the Right Mix of Talent
SEPT. 22
10:00 AM - 3:00 PM CST
(1 hour lunch break)
Via Zoom
Cost: $295
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Cannabis Banking in New York: Practical Guidance
Tuesday, September 28, 2021 2PM EST | 2 Hours
In March of 2021, New York became the 15th state to legalize adult-use cannabis — joining a growing number of states that have expanded from their initial medical-only programs. While retail sales aren’t expected to start until 2022, New York is predicted to become one of the nation’s largest markets in short order.
To help financial institutions operating in New York to prepare for a new, multi-billion dollar industry, the Independent Bankers Association of New York State and Green Check Verified are hosting the complimentary webinar, “Cannabis Banking in New York: Practical Guidance,” on September 28 at 2pm (EST).
Taught by Green Check Verified subject matter experts, this three part educational event covers the following topics:
Session 1: The Fundamentals of Cannabis Banking (60 minutes)
- Essential terminology: cannabis/marijuana/hemp, THC/CBD
- Defining cannabis businesses and identifying their needs
- Federal and state cannabis law, guidance, and regulations
- FinCEN’s 2014 marijuana banking guidance: what you need to know
- Locating and onboarding cannabis businesses
- Ongoing monitoring and working with your examiner
Session 2: Special Considerations in New York (30 Minutes)
Every state’s legal cannabis market has its own particular challenges and opportunities, and New York is no different — especially given the potential size of the program. In this session, we explore where the New York market is headed based on comparable state programs, and what banks operating in the state need to know to safely and effectively work with this industry.
Session 3: Quantifying the Risks and Rewards (30 minutes)
We’ll review a case study, based on an institution that’s currently banking cannabis in a state with a new adult-use program, and use that information to conduct both a financial modeling and risk assessment exercise. From the financial modeling exercise, you will learn to identify the products and services you can (and should) offer to cannabis businesses beyond simply accepting deposits, as well as what fees can be assessed. We’ll also review the primary costs associated with running a program. The risk assessment exercise will not only help you provide a point-in-time assessment of your readiness to bank the industry but also highlight the operational decisions that must be made when working with cannabis-related funds.
Session 3: Special Considerations in New York (30 Minutes)
Every state’s legal cannabis market has its own particular challenges and opportunities, and New York is no different — especially given the potential size of the program. In this session, we explore where the New York market is headed based on comparable state programs, and what banks operating in the state need to know to safely and effectively work with this industry.
Takeaways
- Copies of all presentation materials
- A cannabis banking policy template
- A copy of the sample financial model developed during the session
- A copy of the sample risk assessment developed during the session
- 90-day access to a recording of both sessions
Audience
- Board members
- CEO
- CFO
- Compliance and risk officers
- Branch operations managers
- Business development teams
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Leadership is a lifestyle! The ICBA LEAD FWD Summit is back for its ninth year and is your ticket to becoming the best leader you can be. |
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Community bank customers weigh in on IRS monitoring
Community bank customers have joined the industry in expressing opposition to the Biden administration’s proposal to require banks to report their customers’ account information to the IRS.
Consumer Alert: Consumers have already sent thousands of messages to their members of Congress opposing the plan via ICBA’s new Consumer Alert webpage.
Consumer Outreach Vital: ICBA is encouraging community bankers to direct their customers to the site to demonstrate public opposition extends beyond banks themselves.
Custom Resources: Meanwhile, community bankers are using ICBA’s customizable email and social media content to raise opposition, with the #KeepMyBankingPrivate hashtag already garnering hundreds of thousands of impressions.
Details: ICBA President and CEO Rebeca Romero Rainey details the multi-faceted consumer campaign—including ICBA’s custom resources—in a post on Main Street Matters and LinkedIn.
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Portfolios Morph
Investment securities have undergone big changes this year.
By Jim Reber
If there’s a constant in the world of a community bank investment manager, it’s disappointment. If you buy a bond today and yields go down tomorrow, you wish you’d have bought more; if yields go up, you wish you had bought none. If your overall portfolio has unrealized gains, you lament the poor yields that are available; if you are presented with attractive rates on new offerings, it means you’ve got losses on the balance sheet.
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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.
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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.)
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Governor Hochul's nomination of Adrienne Harris as Superintendent of Financial Services faces resistance from some legislators and activists on the left for her past comments on regulation involvement with certain industry groups including fintechs. “The way we tend to regulate financial services, and most industries in the United States, is – and I always took a little bit of an issue with this – it’s sort of like the list of no-no’s,” Harris said in a 2020 interview, extolling the benefits of a light regulatory touch. The State Senate won’t vote on the nomination until January, but it has provoked significant consternation among some Democrats —including Deputy Majority Leader Michael Gianaris (D-Queens), who said he will vote against her confirmation. https://www.nysfocus.com/2021/09/14/adrienne-harris-fintech-hochul/
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After months of delays, appointments are finally being made to New York state’s cannabis control board. The board will regulate the budding industry by issuing or revoking licenses, and crafting regulations for home-grown cannabis consumption. Read More
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Governor Hochul was viewed favorably by a more than 2-to-1 margin in the first poll by the Siena College Research Institute conducted during her tenure, but a sizable share of voters have yet to form an opinion on her. 42% percent of registered voters viewed the new governor favorably; 17% held an unfavorable view. Two in five New Yorkers don’t yet have an opinion of her. New York voters gave her high marks for taking a more collaborative approach to governing than her predecessor, and a majority were energized by having a woman governor for the first time. Siena poll: Hochul popular, but still somewhat unknown.
- That same Siena poll also found that 40% of voters think the worst of the pandemic is over, while 44 % say the worst is still to come -- a major change from May, when voters thought the worst was over by a 69%-19% margin.
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The purpose of the attached notice is to provide additional guidance for situations when SBA 7(a) guaranteed loan proceeds will be used to refinance a short-term loan originally made with the intent to be refinanced with the SBA-guaranteed loan. Please read the notice in its entirety and reach out with any questions.
Valerie Shoudy, Lender Relations Specialist Grace Conners, Lender Relations Specialist
U.S. Small Business Administration
224 Harrison St., Suite 506 | Syracuse, NY 13202
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PRESS OFFICE
SBA Administrator Guzman Enhances COVID Economic Injury Disaster Loan Program to Aid Small Businesses Facing Challenges from Delta Variant
Increased Loan Cap to $2 Million, Expanded Use of Funds to Pay and Prepay Business Debt, Streamlined Review Processes, and Deferred Payments; First Approval and Disbursement of Loans of $500,000 or Less Also Introduced.
WASHINGTON – Today, U.S. Small Business Administration (SBA) Administrator Isabella Casillas Guzman announced major enhancements to the COVID Economic Injury Disaster Loan (EIDL) program, a federal disaster relief loan designed to better serve and support our small business communities still reeling from the pandemic, especially hard-hit sectors such as restaurants, gyms, and hotels. The SBA is ready to receive new applications immediately from small businesses looking to take advantage of these new policy changes.
“The SBA’s COVID Economic Injury Disaster Loan program offers a lifeline to millions of small businesses who are still being impacted by the pandemic,” SBA Administrator Isabella Casillas Guzman said. “We’ve retooled this critical program – increasing the borrowing limit to $2 million, offering 24 months of deferment, and expanding flexibility to allow borrowers to pay down higher-interest business debt. We have also ramped up our outreach efforts to ensure we’re connecting with our smallest businesses as well as those from low-income communities who may also be eligible for the companion COVID EIDL Targeted Advance and Supplemental Advance grants totaling up to $15,000. Our mission-driven SBA team has been working around the clock to make the loan review process as user-friendly as possible to ensure every entrepreneur who needs help can get the capital they need to reopen, recover and rebuild.”
Key changes being announced by the SBA include:
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Increasing the COVID EIDL Cap. The SBA will lift the COVID EIDL cap from $500,000 to $2 million. Loan funds can be used for any normal operating expenses and working capital, including payroll, purchasing equipment, and paying debt.
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Implementation of a Deferred Payment Period. The SBA will ensure small business owners will not have to begin COVID EIDL repayment until two years after loan origination so that they can get through the pandemic without having to worry about making ends meet.
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Establishment of a 30-Day Exclusivity Window. To ensure Main Street businesses have additional time to access these funds, the SBA will implement a 30-day exclusivity window of approving and disbursing funds for loans of $500,000 or less. Approval and disbursement of loans over $500,000 will begin after the 30-day period.
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Expansion of Eligible Use of Funds. COVID EIDL funds will now be eligible to prepay commercial debt and make payments on federal business debt.
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Simplification of affiliation requirements. To ease the COVID EIDL application process for small businesses, the SBA has established more simplified affiliation requirements to model those of the Restaurant Revitalization Fund.
The enhancements to the COVID EIDL program will allow more businesses greater and more flexible support from the over $150 billion in available COVID EIDL funds. Additionally, these changes will help entrepreneurs access capital at a time when, according to a recent Goldman Sachs 10,000 Small Businesses survey, 44 percent of small business owners report having less than three months of cash reserves, and only 31 percent reporting confidence in gaining access to funding.
How to apply
Eligible small businesses, nonprofits, and agricultural businesses in all U.S. states and territories can apply. Visit www.sba.gov/eidl to learn more about eligibility and application requirements. The last day that applications may be received is December 31, 2021. All applicants should file their applications as soon as possible.
For additional information on COVID EIDL and other recovery programs please visit www.sba.gov/relief. Small business owners may call SBA’s Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard of hearing) or email DisasterCustomerService@sba.gov for additional assistance. The center is open Monday through Friday from 8 a.m. to 8 p.m. EST. Multilingual representatives are available. Small business owners may also contact SBA’s Resource Partners by visiting www.sba.gov/local-assistance.
Application Process and Fraud Control Enhancements
In addition to the policy enhancements, the SBA has invested in optimized processes and increased capacity to improve the customer service experience for applicants. Directed by Administrator Guzman to swiftly and drastically enhance COVID EIDL, the revamped management team implemented new processes and performance management such as prioritizing personnel for COVID EIDL and increasing the average number of loan application decisions made. The SBA accelerated daily processing of loan increases from close to 2,000 applications to more than 37,000 applications daily. Loan officer productivity also went from 1.86 applications per day to 15 applications per day. As a result of these increased loan review rates, the 600,000+ loan increase backlog has been cleared and new applications can be processed immediately. At the same time, and to ensure taxpayer dollars are used to support businesses that need COVID EIDL funding most, the SBA has increased fraud controls and is working in collaboration with the SBA Inspector General to closely monitor the program.
All business owners that have received previous loans through the SBA’s Paycheck Protection Program (PPP), Restaurant Revitalization Fund (RRF), or Shuttered Venue Operators Grant (SVOG) can still benefit from COVID EIDL. To learn more about the application process, visit www.sba.gov/eidl.
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About Economic Injury Disaster Loans
In response to COVID-19, small business owners, including agricultural businesses, and nonprofit organizations in all U.S. states, Washington, D.C., and territories can apply for the COVID-19 Economic Injury Disaster Loan (EIDL). The purpose of EIDL is for small businesses to meet financial obligations and operating expenses that could have been met had the disaster not occurred.
About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start and grow their businesses. It delivers services to people through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.
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Treasury has suspended changes to Fannie and Freddie made in the final days of the Trump administration that were designed to help the mortgage giants exit government control, with the FHFA noting Fannie and Freddie can still build capital while those rules are in review. Senate Banking Chairman Sherrod Brown (D-OH) said the Trump-era changes were "haphazard" while Senator Pat Toomey (R-Pa.), Ranking GOP Member of the Committee, said the pause could risk "overheating an already-hot market. Reuters
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Community banks should continue using ICBA resources to spread the word about the IRS bank reporting proposal, ICBA President and CEO Rebeca Romero Rainey writes in anew blog post. Blog: In the post, Romero Rainey notes that ICBA’s campaign resources are generating a vocal response from consumers concerned about the proposals’ impact on privacy and small businesses. Latest: While the proposal was not included in legislative language that the House Ways and Means Committee continues considering today, lawmakers have many opportunities in the coming weeks to add it to the pending budget reconciliation package. Resources: ICBA’s customizable email text and social media content help community bankers urge consumers to contact Congress in opposition to the plan.
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House and Senate Republicans pushed back against an ICBA-opposed IRS reporting proposal while ICBA continues urging community bankers to activate consumers using custom resources. Senate Finance Committee Ranking Member Mike Crapo (Idaho) and House Ways and Means Ranking Member Kevin Brady (Texas) introduced legislation to prohibit the new bank reporting requirements, among other provisions. Meanwhile, a joint letter to key policymakers from 142 House Republicans said the proposal is not necessary or helpful in closing the gap between taxes owed and paid. With the House Ways and Means Committee continuing its markup of major spending legislation tomorrow, ICBA continues offering customizable email text and social media content to help community bankers urge consumers to contact Congress in opposition. Nearly 60,000 consumers have sent nearly 180,000 messages to their members of Congress expressing opposition to the IRS plan.
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ICBA urged the House Financial Services Committee to use an upcoming subcommittee hearing on the future of banking to examine the role of credit unions on banking industry consolidation. Letter: In a letter to the committee, ICBA said credit union acquisitions of taxpaying community banks is a product of the tax exemption and lax National Credit Union Administration oversight. Latest: Following two recent deals that marked the 100thand 101stcredit union acquisitions of community banks since 2003, ICBA issued a national news release noting these purchases eliminate locally based lenders, exacerbate consolidation, and cut regulatory safeguards. Grassroots: Community bankers can continue urging Congress to hold hearings on credit union acquisitions via a customizable message to lawmakers on ICBA’s Wake Up page and its Wake Up Messaging Playbook.
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