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Advice for Businesses in Dealing with the Expanding Coronavirus Events

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Daily Financial Regulation Update - Thursday, May 21, 2020

By
FedACTion Task Force
On May 21, 2020

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Major Developments

Treasury and SBA Update Paycheck Protection Program FAQs Regarding the Deadline for Submission of the Initial SBA Form 1502

May 19, 2020

The U.S. Department of the Treasury and Small Business Administration (SBA) updated their guidance on the Paycheck Protection Program (PPP) to confirm the SBA is extending the deadline for lenders to electronically submit the initial SBA Form 1502 reporting information to the later of: (i) May 29, 2020 or (ii) 10 calendar days after disbursement or cancellation of the PPP loan. Previously, the deadline was May 22, 2020 (FAQ 48).

Federal Agencies Share Principles for Offering Responsible Small-Dollar Loans

May 20, 2020

The Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit Union Administration and Office of the Comptroller of the Currency issued principles for offering small-dollar loans in a responsible manner to meet customers’ short-term credit needs for both consumer and small business purposes.

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

Board of Governors of the Federal Reserve System

Fed Minutes Released

May 20, 2020

The Board of Governors of the Federal Reserve System and the Federal Open Market Committee (FOMC) released the minutes of the April 28-29, 2020 meeting of the FOMC.

Federal Reserve Bank of New York

New York Fed Announces the First Subscription Date of June 17 for the Term Asset-Backed Securities Loan Facility and Releases Additional Information

May 20, 2020

The Federal Reserve Bank of New York announced the first loan subscription date for the Term Asset-Backed Securities Loan Facility (TALF) and released an expanded set of Frequently Asked Questions and other documents pertaining to the TALF’s operations. The TALF’s first subscription date for loans backed by eligible asset-backed securities will be June 17, 2020, and the first loan closing date will be June 25, 2020.

Federal Reserve Bank of Boston

Impact of the COVID-19 Pandemic on New England Homeowners and Renters

May 20, 2020

The Federal Reserve Bank of Boston’s New England Public Policy Center issued a regional brief on the impact of the COVID-19 pandemic on New England homeowners and renters. The report’s findings represent the immediate, three- to four-month impact that the COVID-19 outbreak and resulting legislation are likely having on New England households.

Securities and Exchange Commission

SEC Announces 2020 Small Business Forum, to be Held Virtually

May 20, 2020

The Securities and Exchange Commission will host its 39th annual Government-Business Forum on Small Business Capital Formation on the afternoon of June 18, 2020. This year the Forum will be a virtual event that will highlight challenges faced by small businesses in the current environment and success stories from startups to small cap businesses across the country.

Department of Labor

U.S. Department of Labor Announces Final Rule to Expand Access to Bonuses for American Workers

May 20, 2020

The U.S. Department of Labor’s (DOL) Wage and Hour Division announced a final rule that allows employers to offer bonuses or other incentive-based pay to employees whose hours vary from week to week. The rule clarifies that bonuses, premium payments, commissions and hazard pay on top of fixed salaries are compatible with the fluctuating workweek method of compensation, and that employers must include supplemental payments when calculating the regular rate of pay as appropriate under the Fair Labor Standards Act. The DOL believes the final rule will allow employers and employees to better utilize flexible work schedules, which will be critical as workers return to work during the ongoing COVID-19 pandemic.

International

European Commission

Coronavirus Global Response: EU Allocates Additional €50 Million in Humanitarian Aid

May 20, 2020

The European Commission announced an additional €50 million in humanitarian aid to help respond to the dramatic increase in humanitarian needs caused by the coronavirus pandemic.

European Semester Spring Package: Recommendations for a Coordinated Response to the Coronavirus Pandemic

May 20, 2020

The European Commission has proposed country-specific recommendations providing economic policy guidance to all EU Member States in the context of the coronavirus pandemic, focused on the most urgent challenges brought about by the pandemic and on relaunching sustainable growth.

European Banking Authority

EBA publishes Report on Interlinkages between Recovery and Resolution Planning

May 20, 2020

The European Banking Authority published a report, which assesses the links between recovery and resolution planning under the Bank Recovery and Resolution Directive, with the aim of enhancing synergies between the two phases and ensuring consistency in their potential implementation.

Bank of England

Bank of England Monetary Policy Report: The Economic Impact of Coronavirus

May 20, 2020

The Treasury Committee held a hearing with individuals from the Bank of England to examine the economic impact of the coronavirus pandemic.