PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Thursday, August 13, 2020
August 13, 2020
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Major Developments
SBA Issues Final Rule on Appeals of SBA Loan Review Decisions Under the Paycheck Protection Program
August 11, 2020
The U.S. Small Business Administration (SBA) issued an Interim Final Rule that supplements the Interim Final Rule on Loan Review Procedures and Related Borrower and Lender Responsibilities initially posted on SBA’s website on May 22, 2020 (published on June 1, 2020 in the Federal Register), as revised by the Interim Final Rule posted on the SBA’s website on June 22, 2020, in order to inform Paycheck Protection Program (PPP) borrowers and lenders of the process for a borrower to appeal certain SBA loan review decisions under the PPP to the SBA Office of Hearings and Appeals.
SBA Updates FAQs on the Paycheck Protection Program and Loan Forgiveness
August 11, 2020
The U.S. Small Business Administration (SBA) issued updated Paycheck Protection Program (PPP) and PPP Loan Forgiveness FAQs as of August 11, 2020. The updated FAQs clarify that: (i) the payment or non-payment of fees of an agent or other third party is not material to the SBA’s guarantee of a PPP loan or to the SBA’s payment of fees to lenders; and (ii) payments required for the provision of group health benefits, including insurance premiums, include vision and dental benefits. The updated FAQs also include questions and answers with respect to the SBA’s Economic Injury Disaster Loan program.
SBA Releases Paycheck Protection Program Report on Approvals through August 8, 2020
August 12, 2020
The U.S. Small Business Administration released a report on Paycheck Protection Program (PPP) approvals through August 8, 2020. The report includes a summary of PPP approved lending by loan count (5,212,128), net dollars ($525,012,201,124) and lender count (5,460). The report also sets forth loan count and net dollars distributed by state/territory and by industry (NAICS sector), as well as top PPP lenders. The amount of unclaimed funding is $133,987,798,876.
Congress
Click here to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), 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 the full text of the Paycheck Protection Program Flexibility Act of 2020, Enacted June 5, 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
Federal Reserve Bank of Boston
The COVID-19 Pandemic, the Economic Outlook, and the Main Street Lending Program
August 12, 2020
Federal Reserve Bank of Boston President Eric Rosengren gave remarks to the South Shore Chamber of Commerce on COVID-19, the economic outlook, and the Main Street Lending Program (Program). Rosengren’s remarks highlighted a further uptick in Program activity, noting that there currently are more than $856 million in Program loans active in the Program portal, with more than $250 million in loans committed or settled as of August 10.
Securities and Exchange Commission
Select COVID-19 Compliance Risks and Considerations for Broker-Dealers and Investment Advisers
August 12, 2020
The Office of Compliance Inspections and Examinations (OCIE) has identified a number of COVID-19-related issues, risks and practices relevant to SEC-registered investment advisers and broker-dealers. Additionally, market volatility related to COVID-19 may have heightened the risks of misconduct in various areas that OCIE believes merit additional attention. OCIE issued the Risk Alert to share its observations with firms, investors and the public generally related to (i) protection of investors’ assets; (ii) supervision of personnel; (iii) practices relating to fees, expenses and financial transactions; (iv) investment fraud; (v) business continuity; and (vi) the protection of investor and other sensitive information.