Bank Law Monitor

Bank Law Monitor

A Legal Blog for the Financial Services Industry

Category Archives: COVID-19

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“First Come, First Served:” SBA Issues Critical Guidance for Payroll Protection Program Loans

Posted in Banking, COVID-19, Regulatory Developments, Trending News
The Small Business Administration (SBA) has issued an Interim Final Rule controlling how $349 billion in short-term business loans under the CARES Act will be allocated. While the SBA is seeking comments from the public, the rule is effective immediately to provide immediate relief to businesses affected by the COVID-19 emergency. Applications for lenders and… Continue Reading

Federal Banking Agencies Encourage Small-Dollar Lending

Posted in Banking, COVID-19, Trending News
No, your eyes aren’t deceiving you. On Thursday, March 26, 2020, the federal banking agencies (i.e., the FDIC, CFPB, FRB, NCUA, and OCC) issued a joint statement encouraging banks and credit unions to offer responsible small-dollar loans to consumers and small businesses affected by COVID-19. Many of us might remember the days of “Operation Chokepoint”… Continue Reading

Congress CARES: Federal Stimulus Package to Provide Emergency Relief to Borrowers and Financial Institutions

Posted in COVID-19, Trending News
On Wednesday, March 25, 2020, the Senate unanimously passed a $2 trillion economic stimulus package. Called the Coronavirus Aid, Relief, and Economic Security (or CARES) Act, this unprecedented bill is expected to be passed by the House this Friday and quickly become law. There is much in the Act for the financial services industry to… Continue Reading

CARES Act Expands Small Business Lending and Provides Potential Loan Forgiveness

Posted in COVID-19, Trending News
In its current form, the CARES Act amends the Small Business Administration’s (SBA) Section 7(a) loan program to encourage banks and credit unions to make small business loans under what is known as the “Paycheck Protection Program.” If passed, the Act would appropriate $349 billion for SBA guaranties to protect lenders against the risk of… Continue Reading

Banking Regulators Encourage Lenders to Work with Borrowers Impacted by COVID-19

Posted in Banking, COVID-19, Regulatory Developments, Trending News
Federal banking regulators took a bold, first step this past Sunday, announcing Interagency Guidance (“the Guidance”) to encourage lenders to work with borrowers impacted by the COVID-19 outbreak.[1] The Guidance specifically permits lenders to enter into (prudent, of course) short-term loan modifications with borrowers who are otherwise current on their loans, without classifying the loan… Continue Reading