PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Saturday, January 9, 2020
January 09, 2021
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Major Developments
SBA and Treasury Announce PPP Re-Opening and Issue New Guidance
January 8, 2021
The U.S. Small Business Administration, in consultation with the U.S. Department of the Treasury, announced that the Paycheck Protection Program (PPP) will re-open the week of January 11, 2021 for new borrowers and certain existing PPP borrowers. To promote access to capital, initially only community financial institutions will be able to make first-draw PPP loans beginning January 11, 2021 and second-draw PPP loans beginning January 13, 2021. The PPP will open to all participating lenders shortly thereafter.
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.
U.S. Senate
Committee on Small Business and Entrepreneurship
Senator Cardin Releases COVID-19 Relief Guide for Small Businesses
January 8, 2021
U.S. Senate Committee on Small Business & Entrepreneurship Ranking Member Ben Cardin (D-MD) released an updated COVID-19 relief guide to help small businesses access the loan and grant programs included in the recently enacted $900 billion relief bill. The guide follows the U.S. Small Business Administration’s announcement that the Paycheck Protection Program (PPP) will reopen to applications from mission lenders, including community development financial institutions, minority-depository institutions, micro-lenders and certified development companies, for first-time PPP borrowers on January 11, 2021. The mission lenders will begin processing second PPP loan applications on January 13, 2021 and the program will open to all participating lenders shortly thereafter.
Senator Cardin Issues Statement on Nomination of Isabel Guzman as SBA Administrator
January 8, 2021
U.S. Senate Committee on Small Business & Entrepreneurship Ranking Member Ben Cardin (D-MD) issued a statement after President-elect Joe Biden announced that he will nominate Isabel Guzman as U.S. Small Business Administration (SBA) Administrator.
Federal Agencies
Federal Reserve Board
Speech: U.S. Economic Outlook and Monetary Policy
January 8, 2021
Richard H. Clarida, Vice Chair of the Board of Governors of the Federal Reserve System, gave a speech at the C. Peter McColough Series on International Economics Council on Foreign Relations titled “U.S. Economic Outlook and Monetary Policy.” His speech focuses on the current economic situation and outlook, and the latest Federal Open Market Committee decision and the new monetary policy framework.
Federal Reserve Bank of New York
New York Fed Announces Blog Series on Understanding the Racial and Income Gap in COVID-19
January 8, 2021
The Federal Reserve Bank of New York’s Liberty Street Economics blog will release a consecutive four-part series exploring the reasons behind income and racial disparities as they relate to low-income and majority-minority areas that were considerably more affected by COVID-19. Each post will examine (i) whether certain factors – including comorbidities, uninsurance, hospital resources, home and transit crowding, social distancing, pollution, demographic, and essential employment factors – affect overall COVID intensity, (ii) whether the income and racial gaps can be further explained when additional factors are included, and (iii) whether and to what extent the factors under consideration independently affect income and racial gaps in COVID intensity.
National Credit Union Association
Register Now for Paycheck Protection Program Interagency Webinar
January 8, 2021
Officials from the U.S. Small Business Administration and U.S. Department of the Treasury will host a webinar on the new Paycheck Protection Program features associated with the recently-passed Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act. The “Ask the Regulators” webinar will take place on January 11, 2021, at 2 p.m. Eastern.
U.S. Bureau of Labor Statistics
December 2020 Employment Situation Release
January 8, 2021
The U.S. Bureau of Labor Statistics released its December 2020 Employment Situation data. According to the release, total nonfarm payroll employment declined by 140,000 in December 2020, and the unemployment rate was unchanged at 6.7%. The decline in payroll employment reflects the recent increase in COVID-19 cases and efforts to contain the pandemic. In December 2020, job losses in leisure and hospitality and in private education were partially offset by gains in professional and business services, retail trade, and construction.
Occupational Safety and Health Administration
U.S. Department of Labor’s OSHA Announces Almost $4 Million In Coronavirus Violations
January 8, 2021
The U.S. Department of Labor Occupational Safety and Health Administration announced that, since the start of the coronavirus pandemic through December 31, 2020, it issued citations arising from 300 inspections for violations relating to coronavirus, resulting in proposed penalties totaling approximately $3.9 million.