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Daily Financial Regulation Update -- Saturday, October 31, 2020

October 31, 2020

By FedACTion Task Force

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Major Developments

Federal Reserve Board Adjusts Terms of Main Street Lending Program

October 30, 2020

The Board of Governors of the Federal Reserve System (Federal Reserve) adjusted the terms of the Main Street Lending Program. In particular, the minimum loan size for three Main Street facilities available to for-profit and non-profit borrowers has been reduced from $250,000 to $100,000 and the fees have been adjusted to encourage the provision of these smaller loans. The Federal Reserve and U.S. Department of the Treasury also issued a new FAQ clarifying that Paycheck Protection Program loans of up to $2 million may be excluded for purposes of determining the maximum loan size under the Main Street Lending Program, if certain requirements are met.

Congress

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

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

to view the full text of the Paycheck Protection Program Flexibility Act of 2020, Enacted June 5, 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.

U.S. Senate

Committee on Banking, Housing, and Urban Affairs

Brown, Merkley, Colleagues Press Nation’s Utility Companies to Cease Utility Shutoffs For the Duration of the COVID-19 Crisis

October 30, 2020

U.S. Sen. Sherrod Brown (D-OH), ranking member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, and Sen. Jeff Merkley (D-OR), sent letters to the nation’s largest utility companies urging them to suspend all utility shutoffs for the duration of the COVID-19 pandemic.

Federal Agencies

Federal Reserve Board

Agencies Release Paper on Operational Resilience

October 30, 2020

The Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency released a paper outlining sound practices designed to help large banks increase operational resilience in the face of operational risks, such as cyberattacks, natural disasters, and pandemics.

Freddie Mac

Freddie Mac Analysis Shows Majority of Multifamily Residents Prioritize Rent Payments Amidst Pandemic

October 30, 2020

A new analysis from Freddie Mac Multifamily’s research group examines the five major resources capturing rent payment information in the wake of the COVID-19 pandemic. The report shows that overall rental payment performance has remained strong in the face of the economic downturn.

International

Bank of England

Bank of England Releases Credit Union Quarterly Statistics

October 30, 2020

The Bank of England released statistics aggregated from quarterly returns submitted by authorized credit unions in the UK. In the second quarter of 2020 loans to members decreased in every region, and by 5.9% across the UK overall when compared to the first quarter of 2020.

UK Financial Conduct Authority

FCA Reminds Insurance Firms to Review the Value of Their Products in Light of the Impacts of COVID-19

October 30, 2020

The Financial Conduct Authority issued a statement urging insurers and insurance intermediaries to complete reviews of the value of their products by December 3, 2020 in light of the impact on such product of the ongoing pandemic.