In April, the Small Business Administration indicated that SBA Economic Injury Disaster Loan Advances would be treated as grants, but now says the forgiven amount of a Paycheck Protection Program loan must be reduced by the EIDL Advance, causing trouble for both borrowers who owe the money and the lenders who will have the unforgiven part of the PPP loan on their balance sheets. Meanwhile, the SBA’s Inspector General released a devastating report that thousands of ineligible businesses received PPP loans.
The Federal Reserve is now accepting applications for a pilot test program for its FedNow Service. Financial institutions, including credit unions, are among those eligible to apply, Fed officials said. Once it is implemented, the FedNow service will allow customers to send and receive payments at financial institutions instantly. Credit union trade groups have expressed their support for the program. The pilot program will include three phases: advisory, testing and closed-loop production. Institutions that are not members of the FedNow Community must first enroll by submitting a participant profile form. Organizations that are interested in participating must submit an application
NAFCU says that three recent data breaches at retailers is a reminder to Congress that a data security standard for retailers needs to be enacted. NAFCU thinks the data security standards for retailers should be the same as those for financial institutions, especially since data breaches of retailers often have consequences for credit unions.
CUNA has launched the “Advancing Communities” campaign, a new effort designed to provide state and federal policymakers and communities with information about the economic and social impact that credit unions provide across the country.
The staff of the Democratic-controlled House Select Subcommittee on the Coronavirus Crisis reports that in the first round of Payroll Protection Program lending, Community Development Financial Institutions and Minority Depository Institutions were largely excluded.
As the financial health of consumers deteriorates due to the pandemic, Senate Banking Committee ranking Democrat Sherrod Brown of Ohio said he is concerned that financial services regulators, including the National Credit Union Administration, are not prepared for a possible financial crisis.
At its October 2020 meeting, the National Credit Union Administration board approved a proposed rule expanding the ability of credit unions to invest in derivatives, discussed their oversight powers over vendors, and received a briefing on cybersecurity.
The trade group representing the nation’s community bankers is asking leaders of the Senate Banking Committee to request a Government Accountability Office investigation of the credit union industry.
A senior Republican on the House Financial Services Committee, Rep. Bill Huizenga of Michigan, said Wednesday that he has tested positive for the coronavirus.
Acting Comptroller Brian Brooks of the Office of Comptroller of the Currency claims he can grant special charters to companies handling payments, without going through the traditional rulemaking regulatory process. Many financial trade groups disagree and note there are substantive issues involved in granting these charters.