Wednesday, December 2, 2020

Week of March 30

In This Issue…

OBA weekly call with bankers concerning COVID-19 response available for download

The OBA is hosting weekly conference calls to discuss banking issues related to the COVID-19 pandemic. The latest call took place this morning and there were more than 100 participants.

The call lasted nearly 40 minutes and includes much information from the officials to help banks going forward.

To download/listen to the teleconference call, click here.

To register for future calls, contact Jeremy or Megan at the OBA!

Here is a quick recap of SOME of the questions that were answered during the call.

Question: When will Treasury release the 1-page SBA application for the Paycheck Protection Program?

Answer: We don’t have a specific time for release, but we have an expectation it will be released sometime today (March 31, 2020). We will let you know immediately.

Question: Is there any revenue restriction on the program? There has been some discussion there is a restriction of $7.5 million?

Answer: We are not aware of any such revenue restriction but will await treasury’s guidance for a more accurate answer.

Question: How long before these loans can be sold into the secondary market?

Answer: These loans can be sold into the secondary market after the loan forgiveness process has been completed.

Question: May a lender participate in the Payroll Protection Program through SBA?

Answer: Our best information at this point in time is that banks and other lenders are not eligible for PPP loans.

Question: Will banks need to be a preferred lender under SBA rules to initiate payroll loans and not just SBA-approved lenders?

Answer: The program will eventually open up to all lenders, but it helps early to be a 7(a) lender. These lenders will the first to participate.

Question: How will the processing fee the SBA is to pay lenders for initiating these loans function?

Answer: It’s our understanding that this fee will be paid within 5 days of disbursing funds.

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Treasury releases assistance for small businesses, information for lenders

As the COVID-19 pandemic continues to have an effect on our economy, small businesses are taking a large brunt of the issues.

The Treasury recently released resources for those businesses, centered around the Paycheck Protection Program. Banks should feel free to share it with any of their commercial customers.

The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses.

Small businesses and eligible nonprofit organizations, veterans organizations and tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.

  • For a top-line overview of the program CLICK HERE
  • If you’re a lender, more information can be found HERE
  • If you’re a borrower, more information can be found HERE
  • The application for borrowers can be found HERE

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SBA Form 750 available for bankers

Several bankers have asked about where to find Form 750 from the SBA, which is the Lender’s Loan Guaranty Agreement (Deferred Participation).

Click here to find and download it from the SBA website. When completed, you can email your form to DelegatedAuthority@sba.gov.

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Interested in leading our Emerging Leaders? Let us know … TODAY!

The OBA would like to hear from bankers interested in serving as chairperson of the Emerging Leaders Division. The deadline to submit the chairperson interest form is today, March 31.

Click here for more information or contact megan@oba.com.

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OBA education corner …

Hey all you cool cats and kittens! Take a few minutes away from watching Tiger King on Netflix and check out what the OBA has cooking online! While live events and seminars are currently on hold, the OBA’s education department has plenty of webinars lined up:

NOTE: Effective March 16, and until further notice, TTS (our webinar provider) has extended the OnDemand access period for all ‘Live Plus Five (Days)’ registrants to 60 days (versus five business days). Also, they are waiving the $75 per location fee for additional locations.

  • Pandemic Planning: A New Reality, New Regulatory Guidance: Are You Prepared?, April 6, webinar — With the recent pandemic classification of the Coronavirus (COVID 19) and the March 6 release of the FFIEC updated Pandemic Plan, banks are focusing on their Pandemic Plan to comply with regulatory guidance and CDC recommendations.
  • Treasury Management: A Powerful Tool to Increase Deposits and Fee Income, April 9, webinar — In this course, you will gain a deeper understanding of how the Sales, Treasury Management, IT, Marketing, and Deposit Operations team members must collaborate to successfully sell and implement the products and services at your institution. We will cover the ideal organizational design for Treasury Management and how to incentivize the sales team.
  • New FFIEC Business Continuity Management Handbook, April 10, webinar — This webinar will consist of an overview of the new BCM Booklet and provide insight in how to develop your BCM Program.
  • Robbery Prevention & Response, April 13, webinar — In this session, find out what makes a robber choose his target, and learn ways to safeguard you and your institution against these criminals. Every employee can play a role in prevention, and all should be well versed in the safest method of response. Recent case studies and trends will also be examined to extract lessons learned.
  • What You Need to Know About Escrows, April 14, webinar — This program provides comprehensive coverage of the flood regulations, Regulation X and Regulation Z escrow rules. We explain, step-by-step, how to establish, maintain and cancel escrow accounts under the amended requirements.
  • BSA/AML for Lenders, April 15, webinar — This two-hour program will assist your bank in determining whether your BSA Compliance Program adequately includes controls, such as training, policies and procedures, monitoring, etc for loan products in addition to deposit products. It will also teach you how to conduct due diligence on related account parties (i.e., guarantors, signatories, or principals) as well as beneficial owners.
  • SAR: Line by Line, April 16, webinar — During the webinar you will review line-by-line the text fields and requirements to complete the SAR. There are fields for cybercrimes, notes to FinCEN and narrative instructions. You will receive highlighted screen shots showing you how to complete and a SAR Handbook to help with timing, referral forms and other tools to help with your SAR filings.
  • Signature Card Danger Zones, April 21, webinar — This is a “must attend” webinar in order to learn more about risks, liability and losses that can occur due to signature card contract. And, most importantly, how to avoid these issues!

Also, are you interested in joining an OBA board or committee? Click here to complete the Committee Interest Form for 2020-2021. We would love for you to get involved!

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