SBA issues notice on PPP loan increases
The Small Business Administration (SBA) issued a procedural notice Thursday regarding first draw paycheck protection program (PPP) loan increases. The notice, which impacts any loan that was approved on or before Aug. 8, 2020, details the circumstances under which borrowers may request a PPP loan increase from their original lender.
The PPP program officially reopened Monday, allowing community financial institutions to submit applications for first draw loans. Starting today, lenders with less than $1 billion in assets will be able to submit applications. All other lenders will gain access to the program Tuesday, Jan. 19.
The notice details how lenders can obtain the additional processing fee that is due on the increased loan or reapplication, as applicable.
As outlined in the notice, an increase may be provided to:
- partnerships: for any amount of partner compensations that was not included in the original loan amount request, and the if the SBA has not yet remitted any forgiveness amount;
- seasonal employers: The consolidated appropriations act (CAA) altered the methodology for seasonal employees, indicating that a seasonal employee can receive the maximum loan amount based on the average payroll for any 12-week period beginning Feb. 15, 2019 – Feb. 15, 2020. If a seasonal employer can receive more funds under the new methodology, they may apply for an increase from the original lender if the SBA has not remitted any loan forgiveness;
- farmers and ranchers: Provisions in the CAA also changed the methodology for calculating the maximum amount a farmer or rancher could receive as long as the SBA has not provided any loan forgiveness yet.
- borrowers that did not accept the full amount of the first draw PPP loan; and
- borrowers that fully repaid a PPP loan before Dec. 27, 2020, may reapply for a first draw loan in an amount they are eligible for under current rules if the SBA has not yet remitted any loan forgiveness.
Relatedly, NAFCU Thursday sent Final Regulation summaries to members on the SBA's latest rules related to the PPP, including an interim final rule (IFR) making temporary changes enacted under the economic aid act and another IFR creating temporary second draw loans.
Additionally, the Federal Reserve is hosting a webinar Friday, Jan. 22, on its PPP Liquidity Facility to provide an overview and updates for all SBA-qualified PPP lenders. Registration is open now at www.askthefed.org. Attendees may submit questions in advance via email to firstname.lastname@example.org.
Management & Operations
Add to Calendar 2021-06-15 14:00:00 2021-06-15 14:00:00 BSA Training for Staff The Bank Secrecy Act (BSA) continues to be an area drawing increased scrutiny from examiners. Credit union staff need to understand the purpose of the BSA and its requirements. This webinar will address key components of BSA, Anti-Money Laundering (AML) and Office of Foreign Asset Control (OFAC) and address compliance requirements for your credit union. Key Takeaways Understand the basic requirements of the BSA Develop tools to help your credit union address member identification and due diligence Review the basic requirements of Office of Foreign Asset Control (OFAC) Discuss reporting and record-keeping Purchase Now$295 Members | $395 Nonmembers (Additional $50 for CD) One registration gives your entire credit union access to the on-demand recording until June 15, 2022.Already registered? Go to the Online Training Center to view live. Who Should Attend? NAFCU Certified Compliance Officers (NCCOs) NAFCU Certified Risk Managers (NCRMs) Compliance staff Legal staff HR staff Education Credits NCCOs will receive 1.5 CEUs for participating in this webinar. NCRMs will receive 1.5 CEUs for participating in this webinar. NCBSOs will receive 1.5 CEUs for participating in this webinar. CPA credit information is below; recommended 1.5 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Associate Director of Education, NAFCU Learning Objectives: Understand the basic requirements of the BSA. Develop tools to help your credit union address member identification and due diligence. Review the basic requirements of Office of Foreign Asset Control (OFAC). Discuss reporting and record-keeping. Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.5 credits Recommended Field of Study: Regulatory Ethics - Technical National Association of Federal Credit Unions (NAFCU) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Learn more. About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, D.C. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU email@example.com America/New_York public
Credits: NCCO, NCRM, NCBSO, CPE
Add to Calendar 2021-06-15 14:00:00 2021-06-15 14:00:00 CU Case Study: Growing Your Consumer Loan Portfolio and Gaining New Members About the Webinar According to the NCUA, credit unions experienced a 20% annual increase in total deposits in 2020. Meanwhile, current economic conditions have credit unions struggling to find qualified member borrowers, leading to a capital surplus without viable investment options. To buck the trend, many credit unions have partnered with fintech companies to grow their consumer loan portfolio by finding more creditworthy borrowers and gaining new members. Discover how your credit union can tap into this opportunity to quickly increase consumer lending to more creditworthy borrowers with minimal upfront costs. In this webinar, Brent McCoy, Vice President of Credit Administration, KEMBA Financial Credit Union, will share how KEMBA is putting its cash to work to grow its consumer loan portfolio while gaining new members. 3 Key Takeaways: Learn how KEMBA Financial Credit Union originates loans digitally as a complement to its existing offerings to acquire more borrowers, without disrupting its branch network or processes. Discover how KEMBA Financial Credit Union maintained control of its risk profile and monitored loan performance during the pandemic. Learn how credit unions can use sophisticated machine learning models to more accurately identify risk and approve more applicants than traditional, credit score-based lending models. Watch the Webinar On-Demand Web NAFCU firstname.lastname@example.org America/New_York public
Get daily updates.
Subscribe to NAFCU today.