PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update - Monday, April 27, 2020
April 27, 2020
FedACTion Task Force
PH Client Alerts
Click here to read more from our Coronavirus series.
Major Developments
SBA and Treasury Announce Availability of New Paycheck Protection Program Loans
April 24, 2020
The U.S. Department of the Treasury and the Small Business Administration (SBA) announced that the SBA will resume taking applications on the Paycheck Protection Program on April 27, 2020 at 10:30 am, Eastern Time.
Treasury and SBA Update Paycheck Protection Program FAQs
April 26, 2020
The U.S. Department of the Treasury and Small Business Administration (SBA) has updated their Frequently Asked Questions (FAQs) on the Paycheck Protection Program to verify that a borrower must count “individuals employed on a full-time, part-time, or other basis” to determine their total number of employees for the purposes of loan eligibility (FAQ 36). The guidance reiterates that for the purposes of loan forgiveness, the CARES Act uses the standard of “fulltime equivalent employees” to determine the extent to which the loan forgiveness amount will be reduced in the event of workforce reductions – i.e., a borrowers loan forgiveness will be reduced if the borrower decreases its full-time employee headcount.
Congress
Click here to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), 116 HR. 748, Enacted March 27, 2020.
Click here to view the full text of the Paycheck Protection Program Increase Act of 2020, Enacted April 24, 2020.
Click here to view a running list of proposed legislation from the Senate Committee on Banking, Housing, and Urban Affairs, Senate Committee on Small Business and Entrepreneurship, House Committee on Financial Services, and House Committee on Small Business.
Federal Agencies
Department of the Treasury
Treasury Implementing CARES Act Programs for Aviation and National Security Industries
April 25, 2020
The U.S. Department of the Treasury (Treasury) made a number of announcements on payroll support and loan programs implemented under Title IV of the CARES Act. To date, Treasury has made $12.4 billion in initial payments to 93 air carriers and will continue to make additional payments on a rolling basis. Treasury also announced that cargo air carriers that receive $50 million or less of payroll support and contractors that receive $37.5 million or less of payroll support will not be required to provide financial instruments as appropriate compensation for the financial assistance. In addition, Treasury published the application form for loans to businesses critical to maintaining national security. Applications may be submitted online beginning April 27, 2020 and are due to Treasury by May 1, 2020.
Treasury, IRS Announce Enhancements and Updates to Get My Payment App
April 26, 2020
The U.S. Department of the Treasury and Internal Revenue Service today announced significant enhancements and improvements to the “Get My Payment” app for Americans eligible to receive Economic Impact Payments.
Office of the Comptroller of the Currency
Documentation of SBA Paycheck Protection Program Loans
April 25, 2020
The Office of the Comptroller of the Currency is encouraging banks providing loans under the Small Business Administration’s Paycheck Protection Program (PPP) to prudently document their implementation and lending decisions. Additionally, banks are encouraged to identify and track the PPP loans made to small business borrowers that have annual revenues of $1 million or less and are located in low- to moderate-income areas.
Small Business Administration
Sale of Participation Interests in SBA Paycheck Protection Program Loans
April 24, 2020
The Small Business Administration (SBA) issued guidance to lenders approved to participate in the Paycheck Protection Program (PPP) regarding the sale of participating interests in PPP loans. Eligible PPP lenders may sell participations of up to 100% of the principal balance of PPP loans to SBA-eligible lenders.