Latest numbers from the SBA, an update on Economic Impact loans
CARES Act changes coming on call reports, stress tests
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Here are the latest numbers from SBA as of noon today
$220 B in 900,000 loans by 4,500 lenders. The pace is accelerating and the current $350B is expected to be exhausted sometime between Wednesday and Friday of this week.
Congress seems intent on appropriating another $250B to the PPP program but hasn’t done so yet and partisan differences have developed. The earliest the Senate can act is this Thursday and the House this Friday.
As an update on direct payments, Treasury’s 75M ACH payments late last week actually turned out to be 81M, additional batches of 15M each are expected 4/22 and 4/29. Paper checks will be processed as we explained last week: starting 4/20 Treasury will send 70-100M printed checks at 5M/wk (max Treasury can produce) so it will take 14-20 weeks or 3-5 months.
Later this week a web site will go up that will allow citizens to provide the government with your routing number and their account number so their payment can be sent by direct deposit versus paper check. As identifiers, they will need to provide from the last tax statement they filed with IRS their adjusted gross income and amount of taxes due.
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The Small Business Administration and the Treasury Department late on Friday updated their Paycheck Protection Program FAQ document to address a question many lenders faced related to closing loans. SBA and Treasury clarified that lenders do not need a separate SBA authorization document prior to issuing a PPP loan.
The Federal Reserve is modifying this year's stress test to include how banks have performed during the coronavirus pandemic. The test will "analyze how banks' portfolios are responding to real, current events, not just to the hypothetical event that we announced earlier this year," says Randal Quarles, vice chairman for supervision.
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In a letter to bank CEOs Thursday night, the federal banking agencies restated that they would not take action against institutions that submit their March 31, 2020, Call Report after the filing deadline, provided that the report is submitted within 30 days of the original filing date. The agencies encouraged banks to contact their primary regulator if they anticipate a delayed filing. The filing date for the Call Report—except for certain institutions with foreign offices—is April 30.
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FREE webinar series on PPP program continues tomorrow
CBA tomorrow will continue hosting its open forum series to give bankers an opportunity to ask questions related to the PPP program.
Bank attorneys and experts will be on-hand to to provide the most information they are able, although we know not every question can yet be answered. Additional guidance and details from SBA are still awaited.
Future forums will continue on Tuesdays and Fridays at 10 a.m. through the month of April. Below is the link to join the meeting.
Meeting ID: 706 624 572
Dial by phone: 1 669 900 6833 |
Meeting ID: 706 624 572
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Paycheck Protection Program Liquidity Facility
This presentation is about the Federal Reserve’s PPPLF
• The PPPLF provides term funding to depository institutions (DIs) that originate loans to small businesses (under the PPP).
• While the PPPLF supports the Small Business Administration’s Paycheck Protection Program (PPP) by providing funding to DIs that are PPP lenders
Speaker:
Nicholas Sly, Assistant Vice President, Economist and Denver Branch Executive Federal Reserve Bank of Kansas City
When:
April 15 3 p.m.
Price:
Free
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Paycheck Protection Program (PPP)
This webinar will answer key questions regarding the Paycheck Protection Program (PPP) eligibility, terms, applications and other related topics.
Speakers will include: Darlia Fogarty, President Compliance Alliance and Elizabeth Madlem, Associate General Counsel for Compliance Alliance
April 17 1 p.m.
Price: Free
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To help guide the CBA Board of Directors, please take a couple minutes as your bank’s CEO (or designee) to complete this questionnaire regarding the industry's response to, and experience with COVID-19 lending
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ADA Litigation webinar
Your bank is still at risk
Banks remain vulnerable to litigation related to website and physical accessibility for Americans with disabilities and laws enacted to protect them.
Banks are vulnerable to these lawsuits, experts say, because they operate websites and mobile applications that promote products and services as well as let consumers conduct transactions.
Attorney Ryan Sugden, with CBA associate member law firm Stinson, will provide information on how banks can address or insulate themselves from potential violation.
When:
Thursday, April 16, 9 a.m.
Presenter
: Ryan Sugden, attorney, Stinson
Price
: Free
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Avoiding and effectively dealing with lender liability litigation during a downturn
This webinar will focus on measures lenders can take to avoid, minimize, and effectively deal with claims and litigation from borrowers, guarantors, competing lienholders and others. Topics for discussion will include:
- Identifying loans, borrowers, and collateral likely to produce litigation
- Best practices for loan forbearance, modification, and workout negotiations and documentation
- Common lender liability claims and defenses
- Best practices for record preservation and discovery
When:
April 23 from 10-11 a.m.
Presenter:
Scott Sandberg, attorney, Spencer Fane LLP
Price
: $50 members $75 non members
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Colorado Bankers Association
303-825-1575 | 303-825-1585
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