Bank Law Monitor

Bank Law Monitor

A Legal Blog for the Financial Services Industry

Tag Archives: coronavirus

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