The Senate late last night approved by unanimous consent legislation extending authorization for the Small Business Administration’s Paycheck Protection Program throughAugust 8, 2020. The extension, which was authored by Senate Minority Leader Chuck Schumer (D-N.Y.), along with Sens. Ben Cardin (D-Md.), Jeanne Shaheen (D-N.H.), and Chris Coons (D-Del.), would also decouple PPP authorization from the 7(a) program, eliminating the risk that the regular SBA 7(a) lending program could shut down when the PPP hits its authorization cap. The House, which is scheduled to adjourn today, has not indicated whether it will bring up the measure under unanimous consent.View the latest data.
There will be no MBA Roundtable on Thursday July 2 due to the Fourth of July holiday.
Listento this weeks roundtable meeting with the Minnesota Fed.Readthe notes.Accesspast MBA Bank Beats.
Next Weeks Agenda:
Tuesday, July 7, 7:30 A.M. EST - Nancy Hayward, MPH, BSN, RN, Health Education Training & Consulting, LLC
Thursday, July 9, 7:30 A.M.EST - Bruce Ohland, DIFS
As part of MBA's efforts to document the industry's response to the COVID-19 pandemic and emphasize the role bankers play as essential employees, the MBA is seeking key information regarding the CARES Act/PPP program. Please take a few moments to answer the survey below by the end of the day July 3rd.Take the survey.
Attend the MBA Emerging Leaders Conference - September 9-10, Ann Arbor
Don’t miss the opportunity to be a part of this interactive day featuring peer coaching and networking focused on growing your career.
Ask SBS Cybersecurity Questions Regarding Incident Response/Digital Forensics
The MBA Service Corporation and Endorsed Partner, SBS CyberSecurity are putting together a virtual Incident Response Plan (IRP) event with a Question/Answer period from Cyber Experts. Stay tuned for dates for late July 2020.
The topics will include:
• How to prepare a well-structured Incident Response Plan that protects against cybersecurity threats;
• How to mitigate the negative effects if your bank has a security breach;
• How to demonstrate to examiners that your organization is properly prepared to handle a breach.
Warner Norcross + Judd Webinar - Update on PPP Loan Forgiveness - July 14, 12:00 p.m. EST.
Join Warner attorneys Charlie Goode, Jeffrey Ott, Matthew Crowe and Ford Turrell for a webinar about the latest developments in Paycheck Protection Program (PPP) loan forgiveness. Charlie and Jeff will present from the lender’s perspective regarding lender obligations and the process and timing for reviewing and submitting PPP forgiveness applications to the Small Business Administration (SBA). Matthew and Ford will present from the borrower’s perspective, focusing on the latest updates related to selecting the eight- or 24-week covered period, forgiveness reduction factors and the myriad safe harbors and exceptions to forgiveness reduction. Register here.
The Michigan Legislature announced a deal yesterday between it and the Governor to backfill the significant budget shortfall expected as a result of COVID-19. The plan relies heavily on CARES Act funding which the federal government has yet to confirm that those dollars may be used for states budget shortfalls.Read more.
Michigan Attorney General Dana Nessel and forty-one state attorneys general wrote to Senate Banking Committee leaders yesterday in support of S. 2563, the Illicit Cash Act, a bipartisan bill that would create a secure beneficial ownership registry of legal entities, to be overseen by the Financial Crimes Enforcement Network and the Treasury Department. The bill also requires FinCEN to share beneficial ownership information with local, tribal, state or federal law enforcement, national security and intelligence agencies.Read the letter.
Governor Whitmer Releases MI Safe Schools Roadmap, Directs School Districts to Develop Return to School Plans.Read more.Watchthe video.
Urge Congress to Modernize Brokered Deposit Rules Now!
We have seen the importance of modern technology play a key role in allowing you all to continue serving your customers through the recent COVID-19 crisis. Today, more than ever before, it is vital for Congress to modernize the outdated regulations that banks are subject to and Brokered Deposits are among the most important.
It has been over 3 decades since the current rules were first enacted. The industry has developed, innovated, and become much more technological since then. Banking has changed; it is time for the rules to reflect that change.
Ask Congress to modernize the 30-year-old brokered deposit rules, specifically, to replace Section 29 of the Federal Deposit Insurance Act so that healthy banks are not penalized for using modern bank funding mechanisms.
Earlier yesterday, Treasury Secretary Steven Mnuchin told the House Financial Services Committee that the administration is working with lawmakers to repurpose the $135 billion of funding still left in the program. Mnuchin expressed hopes that that legislation could be passed “by the end of July.”
Regulators/Agencies
(Click on the articles to read more)
Fed Launches Task Force to Address Coin Shortages During Pandemic.Read more.
OCC Report: The Office of the Comptroller of the Currency (OCC) reported trading revenue of U.S. commercial banks and federal savings associations of $6.7 billion in the first quarter 2020, which was $505.0 million, or 7.0 percent, less than the previous quarter.Read more.
The OCC reported the key issues facing the federal banking system and the effects of the COVID-19 pandemic on the federal banking industry in its Semiannual Risk Perspective for Spring 2020.Read the report.
The Financial Crimes Enforcement Network issued guidance for institutions on how they can conduct due diligence on hemp-related businesses and on what types of information and documentation they may be required to collect from these businesses to comply with Bank Secrecy Act requirements.Read more.
Waters’ and Meeks’ Resolution to Reverse the OCC’s Harmful Rule Undermining the Community Reinvestment Act Passes the House.Read more.
The Supreme Court held that the Consumer Financial Protection Bureau may continue to operate but ruled that the bureau’s single powerful director must be able to be removed at will by the president. The court said that the current legal framework under which the director may only be removed “for cause” is unconstitutional.Read the decision.
The FBI in Michigan has received numerous reports of increased efforts by scammers to target residents across western Michigan with two different fraud schemes.Read more.
USDA to Provide $1 Billion in Loan Guarantees for Rural Businesses and Ag Producers.Read more.
Congresswoman Maxine Waters (D-CA), gave a floor statement in support of H.R. 2, the Moving Forward Act. The Moving Forward Act includes Chairwoman Waters’ legislation, H.R. 5187, the Housing Is Infrastructure Act.
Economy
(Click on the articles to read more)
The University of Michigan Consumer Sentiment Index rose eight points in June to 78.1. The June figure was down 20.5 points from a year ago. The current conditions component of the index rose 5.8 points to 87.1, while the consumer expectations index rose 9.7 points to 72.3.Read more.
Personal income fell by 4.2%, or $874.2 billion, in May after a 10.8% increase in April due in large part to the CARES Act economic impact payments made that month, the Commerce Department said on Friday. The personal savings rate—savings as a percentage of disposable personal income—was 23.2%, down from 32.2% in April but more than three times higher than pre-pandemic levels.Read more.
The Consumer Confidence Index increased in June after holding mostly steady in May as the coronavirus pandemic persisted, the Conference Board reported yesterday. June’s figure was at 98.1, up from 85.9.Read more.
For more information on Endorsed Partners and Products,click here.
S&P Global:Auto loans at US credit unions dip for the 1st time in 9 years in Q1
Total auto loans declined 0.2% at U.S. credit unions in the first quarter to $378.13 billion, the first quarterly decline since the first quarter of 2011. On a year-over-year basis, loans were up 2.1%.
As of March 31, 1.58% of credit union auto loans were 30 days or more delinquent, down from 1.86% at year-end 2019 but up 4 basis points from the year-ago quarter.Read more.
Office Depot: Your PPE Provider
As your company reopens create a clean and comfortable workspace withPPEpurchased through the MBA Service Corporation partner programs.
Employees can benefit from the Office Depot discount pricing available to all members, regardless if your employer is signed up for the program. All MBA member employees are entitled to the discounts from the 350+ “core” list and 10% off many other items.Learn more.
The MBA endorsed partner, Office Depot, brings you an 18-state national purchasing plan that can save MBA members large discounts on supplies, break-room products, office furniture, promotional products, print and copy services and more. Learn about theMBASC Bank Program. Questions? Contact Isaac Mares 855-337-6681 ext.12878 orIsaac.mares@officedepot.com.
Driving Successful Digital Transformation in a Post COVID World Webinar- July 9, 11:00 A.m EST
Consumers are embracing digital banking offerings now more than ever as COVID has accelerated the trends in behavioral change more rapidly than anyone could have anticipated. Knowing that the “new normal” must be different, learn the keys to successfully driving the digital transformation needed to support continued growth aspirations in payments and banking.
Michigan Business Network is an online broadcasting company that provides knowledge, news, and insights into Michigan’s businesses, industries, and economy.
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