Tuesday, December 1, 2020

Week of June 8

In This Issue…

President Trump signs Paycheck Protection Program Flexibility Act

On Friday, President Trump signed into law H.R. 7010 (Public Law 116-1420), the Paycheck Protection Program Flexibility Act, which was passed by the Senate on a voice vote earlier in the week.

“The bill is generally a good thing for the (PPP) program, but at the same time it raises some questions,” OBA Executive Vice President/Government Relations Adrian Beverage said.

Here are the highlights:

  • Extends the covered period for loan forgiveness from eight to 24 weeks after the date of loan disbursement. Existing PPP borrowers retain the option to use an eight-week “covered period” by which to create more jobs.
  • Changes the required of loan proceeds that must be used for payroll purposes from 75 to 60 percent. In addition, no less than 60 percent of the loan forgiveness amount must have been spent on payroll costs during the new “forgiveness period” of 24 months.
  • Provides a “safe harbor” from “forgiveness reductions” that’s based on the number of FTEs that are unable to return to the same level of business activity before Feb. 15.
  • There is also a new safe harbor from “forgiveness reductions” in the number of FTEs for small business borrowers that are unable to rehire individuals they had on Feb. 15 or not able to hire employees that are similarly qualified for unfilled positions by the end of December of this year.
  • Increases PPP loan maturity (approved by SBA) on or after June 5, 2020.
  • Extends payment deferral period for principle, interest and fees to 10 months or to the date the SBA remits the borrower’s loan forgiveness amount.

“Some questions linger about what these changes may mean,” Beverage said. “Originally, the 5-year extension was going to be applied to all PPP loans, although it’s difficult to understand how that was supposed to work. It’s the reason there were two ‘holds’ on the bill before the Senate could take up the measure. As it was changed, it does not now apply to existing PPP loans unless the lender agrees to such an extension, and it will apply to new PPP loans.

“Another question is what changes on which existing forms will be necessary because of the bill’s language? We’re still looking for answers in conjunction with the Alliance of state bankers associations.”

Beverage also pointed out any new PPP loans made after June 5 must automatically be extended to a minimum of five years, and a maximum of 10 years.

“We tried to tell folks on the Hill that this requirement may force a lot of lenders out of the PPP lending business,” Beverage said. “One of the questions we’re also facing is why (a lender) would choose to stay with the program if the interest rate remains at 1 percent? I’ve heard from a few (bankers) who say their bank is planning to ‘opt out’ of the program, while other banks are staying with it.

“Remember, there is more than $130 billion still available to lend. What happens if the Program ends on time (June 30) and part of the $130 billion is still available? We are still seeking answers to these and other questions.”

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OBA, State Election Board host press conference announcing plan to aid absentee voters

The Oklahoma Bankers Association and the Oklahoma State Election Board held a joint press conference on June 5 to announce a plan for banks across the state to offer free absentee voting services to all Oklahoma voters.

“Community banks across Oklahoma are excited for the opportunity to make absentee voting easier for all Oklahomans,” OBA Chief of Staff/EVP Adrian Beverage said.

Participating institutions will offer one or more of the following services to voters:
• Free ID copy (lobby and/or drive-thru).
• Free absentee ballot notarization (lobby and/or drive-thru).

In addition OBA member banks, other participating entities include members of the Community Bankers Association of Oklahoma and the Oklahoma Credit Union Association. Voters can find a list of participating banks and credit unions at elections.ok.gov. Services and hours may vary by location.

“Banks and credit unions are in almost every community in Oklahoma. They’re our neighbors and community partners and they realize the importance of democracy. That’s why we’re excited to work with these financial institutions to ensure that every voter—both customers and non-customers alike—have free and convenient absentee services available to them,” Secretary of the State Election Board Paul Ziriax said.

You can view the entire press conference via Periscope by clicking here.

If you have any questions about this program, you can contact Adrian Beverage at the OBA (405-424-5252), or Pam Slater, director of support services at the State Election Board (405-521-2391).

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OBA education corner …

While live events and seminars are few and far between during the summer, the OBA’s education department has plenty of webinars lined up. You can download a flyer highlighting upcoming webinars by clicking here, or just peruse below for those coming soon!

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.

  • Records Management and Retention, June 16, webinar — Retention and management of records is more complicated than just deciding what to keep and for how long.
  • Addressing Threats of Violence (Prevention, Action & Cautions), June 17, webinar — This is not a program about what to do in an active crisis situation. This session covers important considerations designed to help keep you from getting to such a situation.
  • Remote Banking – What Are The Compliance Requirements?, June 17, webinar — In this webinar we’ll discuss these many requirements and provide you with a comprehensive grasp of the issues involved.
  • Being Strategic with Base Compensation for Non-Executive Positions, June 18, webinar — What questions should your bank ask about compensation below the CEO and top executives?
  • Ag Lending Compliance, June 19, webinar — As mixed-use properties, such as barndominiums, increasingly appear in our communities it is important to understand how to apply compliance regulations to ag properties and to know when an ag exemption is available.
  • Today’s Information Security Officer: Roles and Responsibilities, June 23, webinar — While once thought to be a technology function the role was typically delegated to the IT Manager or Officer but today the ISO is to be independent of IT operations and report directly to the board, board committee or senior management.
  • HMDA Hot Spots, June 24, webinar — This webinar will take a look at the areas that cause the most confusion and can cause pitfalls along the way. Get your bank on the right track!
  • Handling Deceased Accounts and Checks, June 25, webinar — During this program, we will look at the checks and all the questions you get asked every day. Insurance checks, treasury checks and regular checks, what are you supposed to do and what can you do to help the account holder and his or her family.
  • Total TRID Training, Four-Part Webinar, June 25, June 30, July 6, July 10 (attend one or all!) — This four-part program provides a very comprehensive review of the TRID rules, the Loan Estimate (LE), and the Closing Disclosure (CD). Whether you are new to TRID or a veteran seeking a review of the requirements this program will meet your needs.

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