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Daily Financial Regulation Update - Monday, May 4, 2020

May 04, 2020

By FedACTion Task Force

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Major Developments

Treasury and SBA Release Report on Second Round of Paycheck Protection Program Approvals

May 3, 2020

The U.S. Department of the Treasury and Small Business Administration released a report outlining the loans approved in the second round of the Paycheck Protection Program (PPP). The report includes numbers on approved loans in states and territories, loan size, and top lenders. Since Round 2 of PPP loan processing began on April 27, 2020,approximately 2.2 million loans have been made to small businesses which surpasses the number of PPP loans made in the first round of PPP. The total value of these approximately 2.2 million loans is more than $175 billion and the average loan size in the second round was $79,000. Nearly 500,000 of the second round PPP loans were made by lenders with less than $1 billion in assets and nonbank lenders. Such lenders include Community Development Financial Institutions, Certified Development Companies, Microlenders, Farm Credit lending institutions, and FinTechs. More than Over 850,000 loans — about one third of the approximately 2.2 million loans — were made by lenders with $10 billion of assets or less.

Congress

to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), 116 HR. 748, Enacted March 27, 2020.

to view the full text of the Paycheck Protection Program Increase Act of 2020, Enacted April 24, 2020.

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.

State Agencies

New York State Department of Financial Services

DFS Issues Emergency Regulation Requiring Insurance Companies To Waive Out-Of-Pocket Costs For In-Network Mental Health Services For Frontline Essential Workers During COVID-19

May 2, 2020

Superintendent of Financial Services Linda Lacewell announced the New York State Department of Financial Services (DFS) issued an emergency regulation to prohibit insurers from imposing cost-sharing for telehealth and in-person mental health services rendered by in-network providers on an outpatient basis to frontline essential workers eligible to be tested at one of the state’s drive-through or walk in COVID-19 testing sites.

International

Bank of England

Updating the TFSME to reflect HMT’s new Bounce Back Loans Scheme

May 4, 2020

The Bank of England announced changes to the Term Funding Scheme with additional incentives for small and medium-sized enterprises (TFSME) and the UK leverage ratio, in order to support HM Treasury’s Bounce Back Loans Scheme (BBLS). The TFSME allows eligible banks and building societies to access four-year funding at rates very close to Bank Rate. The scheme is designed to incentivize eligible participants to provide credit to businesses and households to bridge through the current period of economic disruption caused by the outbreak of Covid-19. The scheme includes additional incentives to provide credit to small and medium-sized enterprises.