Friday, January 15, 2021

Week of Dec. 21

In This Issue…

Congress approves COVID-19 relief bill, reauthorizes PPP

Late last night, House and Senate lawmakers agreed on the terms of a $900 billion coronavirus relief package. This bipartisan effort is more than 5,500 pages in length, and includes authorization for Economic Impact Payments to be made for some 160,000 million eligible Americans.

It’s not entirely clear whether these payments are going to be by check or made electronically; either way, banks need to be ready to handle the next wave of EIP transactions.

Our colleagues at the New Hampshire Bankers Association have provided us with a detailed summary of the bill and you can access this summary here.

Thanks to the ABA for providing the following quick summary:

Among other things, the bill includes:

1. $284 billion in new funds for the Paycheck Protection Program, including a “second draw”  option for prior PPP borrowers;

2. $15 billion is set aside specifically for first and second draws issued by community financial institutions, including community development financial institutions and minority depository institutions ;

3. $12 billion is provided in targeted emergency investments to help low-income and minority communities;

a. $9 billion is to be used by Treasury to create an Emergency Capital Investment Program to make direct and indirect capital investments in low- and moderate-income financial institutions.

4. A hold-harmless safe harbor for PPP lenders from enforcement and penalties to include all certifications made by borrowers or applicants connected to initial or second-draw PPP loans.

5. A simplified PPP forgiveness process allowing PPP loans of $150,000 or less to be forgiven after the borrower completes a one-page attestation requirement;

6. Repeal of a CARES Act provision that required PPP borrowers to deduct the amount of their EIDL advance from their PPP forgiveness amount;

7. Enhancements of existing SBA loan programs, including the 7(a), 504 and microloan programs;

8. A new round of $600-per-person economic impact payments for eligible recipients;

9. An extension of enhanced unemployment insurance;

10. An extension until Jan. 1, 2022, of the troubled debt restructuring provisions that were included in the CARES Act;

11. A delay of CECL implementation until Jan. 1, 2022.

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PPPLF continues through March 31, 2021

The Federal Reserve Board on Monday announced an extension through March 31, 2021, for several of its lending facilities that were generally scheduled to expire on or around Dec. 31.

By backstopping critical short-term funding markets, these facilities are supporting market functioning and enhancing the flow of credit to the economy. The extension, which has also been approved by the Treasury Department, will facilitate planning by potential facility participants and provide certainty that the facilities will continue to be available through the first quarter of 2021 to help the economy recover from the COVID-19 pandemic.

The extensions apply to the Commercial Paper Funding Facility, the Money Market Mutual Fund Liquidity Facility, the Primary Dealer Credit Facility and the Paycheck Protection Program Liquidity Facility.

“The final deal affected the facilities that had Treasury backing with funds appropriated under the CARES Act to cover any losses the Fed experienced,” said ABA’s Hu Benton, an expert on a number of topics, including the PPP program. “Since PPP loans are fully backed by SBA, there are supposed to be no losses. So, it’s out of scope.”

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OBA holiday hours updated

The OBA will be adjusting its hours for the holidays.

We will be closed Christmas Eve (Dec. 24) and Christmas Day (Dec. 25). We will close at noon on New Year’s Eve, and be closed all day on New Year’s Day.

Keep these dates in mind and enjoy your holidays!

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2020 surveys bundle deal available now

The Blanchard Consulting Group is offering an end-of-year promotional sale for non-participants interested in purchasing their 2020 surveys.

This bundle deal includes the Comp Trends Survey and the Salary & Cash Comp Survey for a combined $700, instead of the original $300 for the Comp Trends Survey and $600 for the Salary & Cash Comp Survey.

If you aren’t interested in the bundle, each survey can also be bought individually at regular price.

For more information and to purchase the bundle or individual surveys, you can email surveys@blanchardc.com.

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OBA education corner …

Christmas is right around the corner, which means 2021 is too. Take a break from the holiday hustle and bustle to check out these OBA education events coming up 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.

  • Online Account Opening, webinar, Jan. 5 — During the program we will discuss the action steps required on your internet website to comply with new account opening procedures on all types of deposit accounts.
  • Best-Ever Compliance Checklists for Consumer Loans, webinar, Jan. 6 — For several years, Anne Lolley has shared her popular compliance checklists with bankers. In her upcoming webinar, Anne will again offer and explain those checklists. The checklists will chronologically lead lenders and processors through the various lending compliance requirements, and financial institutions that properly use these checklists will virtually eliminate compliance errors.
  • Writing an Effective Credit Memorandum, webinar, Jan. 7 — This course teaches skills required to write an effective credit memorandum. Learn to emphasize important factors and trends without stating the obvious. In short, your credit memoranda should present relevant, material facts, along with your thoughts and opinions.
  • Have You Updated Your Business Continuity Management To Meet Regulatory Expectations, webinar, Jan. 12 — Have you updated your Plan to address the new Booklet? This webinar will provide recommendations on how to update your Plan to meet regulators expectations.
  • Writing Teller Training & Procedures, webinar, Jan. 12 — Today’s program will take a look at procedures for the teller. What needs to go into the procedures? What needs to stay out? Who should write the procedures and what is the purpose? Join us for an overview on writing teller training and procedures.
  • 2021 Compliance Update, Jan. 26, Tulsa, Jan. 28, Oklahoma City — The 2021 Compliance Updates will provide a review of issues and concerns facing every bank’s compliance team. The sessions will focus on “hot” topics, trends, and areas that may need more emphasis. Common compliance mistakes also will be covered.
  • 2021 Intermediate Banking School, Session 1, Oklahoma City, Feb. 1-5 — Presented in two sessions, the school is designed to prepare students to serve effectively and profitably the needs and desires of their banks and the banking public. A major objective of the program is to instill an appreciation for and an understanding of the operations and interrelationships of departments within a bank.

One education program, in particular, to be aware of is the OBA Intern Program. The Intern Program will again be active in 2021 and we’re looking for participating banks! For more information on this IMPORTANT program – important not only to aspiring students, but also to participating banks – Contact the OBA education department at (405) 424-5252 or click here for more information!

Another important thing to note, the 2021 Senior Management Forum dates have changed. The Forum will now be held June 20-22, at the Bellagio in Las Vegas. Keep an eye out for more information on this in the coming months!

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