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Daily Financial Regulation Update -- Thursday, July 23, 2020

July 23, 2020

By FedACTion Task Force

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Major Developments

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. House of Representatives

Committee on Small Business

Review of SBA Technology Systems and Modernization Efforts

July 22, 2020

The House Small Business Subcommittee on Investigations, Oversight, and Regulations held a hybrid hearing focused on long-standing technological issues at the Small Business Administration (SBA). Although the SBA has made strides in improving its IT over the past decade, the influx of activity from small business owners attempting to access relief during the COVID-19 crisis (e.g., PPP, EIDL) has further exposed flaws in SBA technology that have been present for years. Lenders, borrowers, applicants, and third-party vendors have reported technological shortcomings that have raised concerns about data privacy, capacity and access issues within the E-Tran loan processing system, and the potential for fraud in relief programs. During the hearing, members discussed the technological issues SBA is facing and its plan to improve its IT systems with SBA Deputy Chief Information Officer, Guy Cavallo.

International

Bank of England Prudential Regulation Authority

Climbing Mountains Safely - Speech by Sarah Breeden

July 22, 2020

Sarah Breeden, Executive Director, UK Deposit Takers Supervision at the Prudential Regulation Authority (PRA), discussed a new guide for banks that is designed to help new and growing banks move from initial authorization to becoming an established player in the banking market. The guide builds on the steps the PRA has already taken to lower barriers to entry for new firms, which over the past few years have helped support change in the UK banking system.