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PH FedACTion: Financial Regulatory Updates

Daily Financial Regulation Update -- Wednesday, January 27, 2020

January 27, 2021

FedACTion Task Force

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PH Client Alerts

Click here to read more from our Coronavirus series.

Major Developments

The SBA Takes Steps to Improve First Draw Paycheck Protection Program Loan Review to Facilitate Second Draw Loans

January 26, 2021

The U.S. Small Business Administration (SBA) is taking steps to improve the first draw Paycheck Protection Program (PPP) loan review so that small businesses have as much time as possible to access first and second draw PPP funds. Due to delays in reviews of first draw loan forgiveness applications, which has delayed approvals of second draw PPP loan applications, the SBA is addressing the loan review process by:

(i) hosting a national call to brief lenders on the platform’s additional detailed information that will assist in the resolution of first draw PPP loan review and potential holds that impact second draw PPP loan application approvals;

(ii) equipping the SBA’s field team of lender relations specialists with information so they can provide support to lenders and borrowers in understanding the issues and facilitating the appropriate responses to resolve; and

(iii) providing additional guidance to PPP lenders on the review and resolution process.

Trade associations such as the American Bankers Association have recently reached out to the U.S. Department of the Treasury and SBA raising several significant issues that have arisen since the PPP re-opened earlier this month.

Administration Changes

Appointments/Confirmation Hearings

Department of the Treasury – Janet Yellen (effective January 26, 2021)

Consumer Financial Protection Bureau – Rohit Chopra (Nominee)

Securities and Exchange Commission – Gary Gensler (Nominee)

Small Business Administration – Isabel Guzman (Nominee)

Department of Education – Miguel Cardona (Nominee)

Commodity Futures Trade Commission

National Credit Union Administration – Todd M. Harper

Department of Housing and Urban Development – Marcia Fudge (Nominee)

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 the full text of the Consolidated Appropriations Act, 2021, Enacted December 27, 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.

U.S. House of Representatives

Committee on Financial Services

Chairwoman Waters Announces Financial Services Subcommittee Leadership for the 117th Congress

January 26, 2021

Congresswoman Maxine Waters (D-CA), Chairwoman of the House Financial Services Committee, announced the six Committee Members who will serve as Subcommittee Chairs for the 117th Congress. Subcommittee Chairs were chosen through a selection process based on seniority, with the confirmation of all Committee Democrats.

Chairwoman Waters Announces Financial Services Subcommittee Assignments for the 117th Congress

January 26, 2021

Following the announcement of the House Financial Services Subcommittee Chairs, Congresswoman Maxine Waters (D-CA), Chairwoman of the House Financial Services Committee, announced Democratic Subcommittee assignments for the 117th Congress. 

Federal Agencies

U.S. Department of the Treasury

Day One Message to Staff from Secretary of the United States Department of the Treasury Janet L. Yellen

January 26, 2021

After being sworn in as the 78th Secretary of the U.S. Department of the Treasury (Treasury) by Vice President Kamala D. Harris, Secretary Janet L. Yellen sent a letter to the 84,000 employees of the Treasury.  

Daily Guidance for Secretary of the Treasury Janet L. Yellen

Tuesday, January 26, 2021

Vice President Kamala D. Harris administered the oath of office to Janet L. Yellen, who was sworn in as the 78th United States Secretary of the Treasury.

Federal Reserve Bank of New York

Small Business Credit Survey: 2021 Report on Employer Firms to be Released

January 26, 2021

The Federal Reserve Bank of New York announced that the Federal Reserve Banks will release the Small Business Credit Survey: Report on Employer Firms  on February 3, 2021. The report examines how small businesses are weathering the COVID-19 pandemic, examining business conditions and the credit environment from the perspective of more than 9,600 small business owners with payroll employees.

Federal Housing Administration

Federal Housing Administration Provides Borrowers Struggling to Keep their Homes Additional Time to Seek Forbearance

January 26, 2021

The Federal Housing Administration (FHA) announced that it will extend the deadline for borrowers with FHA-insured mortgages who are struggling financially due to COVID-19 to request and receive mortgage payment forbearance from their mortgage servicer. The new deadline is March 31, 2021, allowing borrowers additional time to request and obtain up to six months of an initial pause in their mortgage payments.

International

Bank of England

What Types of Businesses Have Used Government-Guaranteed Loan Schemes?

January 26, 2021

The Bank of England released a post titled “What Types of Businesses Have Used Government-Guaranteed Loan Schemes?” The post notes that UK businesses can apply for government-guaranteed loans to support cash flows during the COVID-19 pandemic. Although many businesses are eligible for these loans, the report indicates small businesses in adversely affected sectors have borrowed the most.

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