PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Friday, January 8, 2020
January 08, 2021
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Major Developments
SBA Issues Interim Final Rules on Revised Paycheck Protection Program, as Amended by the Economic Aid Act
January 6, 2021
The U.S. Small Business Administration issued interim final rules providing additional guidance on the Paycheck Protection Program (PPP), as amended by the Economic Aid Act under the Consolidated Appropriations Act, 2021. The new rules govern:
(i) second draw and new PPP loans made under the Economic Aid Act;
(ii) applications for loan forgiveness on existing PPP loans where the loan forgiveness payment has not been remitted; and
(iii) loan applications and applications for loan forgiveness submitted for PPP Second Draw Loans.
- Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act
- Interim Final Rule on Second Draw Loans
Letter from the SBA Administrator: Guidance on Accessing PPP Capital for Minority, Underserved, Veteran and Women-Owned Business Concerns
January 6, 2021
The U.S. Small Business Administration (SBA) issued a letter outlining steps the SBA is taking to implement the Economic Aid Act and to ensure increased access to Paycheck Protection Program (PPP) capital for minority, underserved, veteran, and women-owned business concerns, including, among other things:
(i) accepting PPP loans only from community financial institutions for at least the first two days when the PPP loan portal re-opens;
(ii) continuing to set aside dedicated hours to process and assist the smallest PPP lenders which their PPP loans;
(iii) working to directly match borrowers to small lenders who can aid traditionally underserved communities; and
(iv) continuing to strongly encourage community development financial institutions and minority-, women-, veteran- and military-owned lenders to apply to become PPP lenders.
Congress
Click here to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), 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 the full text of the Paycheck Protection Program Flexibility Act of 2020, Enacted June 5, 2020.
Click here to view the full text of the Consolidated Appropriations Act, 2021, Enacted December 27, 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
U.S. Department of the Treasury
Treasury Launches $25 Billion Emergency Rental Assistance Program
January 7, 2021
The U.S. Department of the Treasury launched the $25 billion Emergency Rental Assistance Program (Program) established by the Consolidated Appropriations Act, 2021. The Program assists households that are unable to pay rent and utilities due to the COVID-19 pandemic. The funds are provided directly to states (including the District of Columbia), U.S. Territories, local governments with more than 200,000 residents, the Department of Hawaiian Home Lands, and Indian tribes (defined to include certain Alaska native corporations) or the tribally designated housing entity of an Indian tribe. Eligible grantees must use the funds to provide assistance to eligible households through existing or newly created rental-assistance programs.
Treasury is Delivering Millions of Economic Impact Payments by Prepaid Debit Card
January 7, 2021
The U.S. Department of the Treasury (Treasury) announced that Treasury and the Internal Revenue Service (IRS) began sending approximately eight million Economic Impact Payments (EIPs) by prepaid debit card. The distribution of EIP cards follows the millions of payments already made by direct deposit and the ongoing mailing of paper checks and are part of Treasury’s and the IRS’s plan to deliver EIPs as rapidly as possible.
U.S. Department of Labor
Labor Department Issues Release on Unemployment Insurance Weekly Claims
January 7, 2021
The U.S. Department of Labor issued a release regarding weekly unemployment insurance claims. The release states that, in the week ending January 2, the advance figure for seasonally adjusted initial claims was 787,000, a decrease of 3,000 from the previous week’s revised level; the previous week’s level was revised up by 3,000 from 787,000 to 790,000; the four-week moving average was 818,750, a decrease of 18,750 from the previous week’s revised average; and the previous week’s average was revised up by 750 from 836,750 to 837,500.
International
European Commission
Coronavirus Response and Recovery: EU Support for Regions to Work Together in Innovative Pilot Projects
January 7, 2021
The European Commission announced the winners of a new EU-funded initiative for interregional partnerships in four areas: coronavirus-related innovative solutions, circular economy in health, sustainable and digital tourism, and hydrogen technologies in carbon–intensive regions. The aim of the new initiative is to mobilize regional and national innovation actors to address the impact of the coronavirus pandemic.
Bank of England
Monthly Decision Maker Panel Data - December 2020
January 7, 2021
The Bank of England released results from the December 2020 Decision Maker Panel. In December, businesses estimated that their sales in 2020 Q4 would be 16% lower than they otherwise would have been because of COVID-19, with employment 8% lower and investment 20% lower. Overall uncertainty remained high in December, with little change from November. The percentage of businesses that viewed overall economic uncertainty as high or very high rose marginally from 67% to 68% in December, and remains much higher than 41% at the start of 2020.
Speech: From Lender of Last Resort to Market Maker of Last Resort via the Dash for Cash: Why Central Banks Need New Tools for Dealing with Market Dysfunction
January 7, 2021
Andrew Hauser, Executive Director, Markets at the Bank of England, gave a speech titled “From Lender of Last Resort to Market Maker of Last Resort via the Dash for Cash: Why Central Banks Need New Tools for Dealing with Market Dysfunction.” Mr. Hauser discusses the evolving role of the central bank as a provider of market liquidity, and he examines what was learned from the “dash for cash” in March 2020.
UK Financial Conduct Authority
FCA Publishes Coronavirus Financial Resilience Survey Data
January 7, 2021
The Financial Conduct Authority (FCA) published the results of its coronavirus financial resilience surveys. The surveys were sent to solo-regulated firms to inform the FCA of the impact of coronavirus on firms’ financial resilience.