SBA Resumes Approvals of Enhanced Loans
The Small Business Administration on Wednesday resumed approving eligible loans with the higher guarantee and reduced fees originally authorized by the 2009 American Recovery and Reinvestment Act. The unemployment benefits extension bill (H.R. 4691) that President Obama signed last week reauthorizes the expired 90-percent guarantee on the SBA’s 7(a) loan program through March 28. The legislation also provides funds to support the higher guarantee and the waiver of borrower fees for most 7(a) and 504 loans. The fee relief will be available until the new funding is exhausted or the end of the fiscal year on Sept. 30, whichever comes first. ABA has testified numerous times over the past several months in favor of extending the SBA loan enhancements. Read more. u

Frank Urges Four Largest Banks
to Write Down Second Mortgages
House Financial Services Committee Chairman Barney Frank (D-Mass.) last week strongly urged the four biggest U.S. banks to take immediate steps to write down second mortgages and allow principal-reduction modifications of the underlying first liens to take place. “The four organizations you lead are major participants in the second-lien market. Failure to modify these debts has become a major and unnecessary obstacle to thousands of Americans being able to stay in their homes,” Frank said in a March 4 letter to the CEOs of Bank of America Corp., Citigroup Inc., J.P. Morgan Chase & Co. and Wells Fargo & Co. “The problem of second-lien mortgages standing in the way of successful principal reduction modifications has reached a critical stage and requires immediate attention from your institutions,” he said. Many second liens have little value because of the drop in home prices, Frank said, but because accounting rules allow second-lien holders to carry the loans at artificially high values, many refuse to acknowledge the losses and write them down.
He added that he would work with the banks to remove legal obstacles that may prevent principal writedowns. Read the letter. u

Advisory Issued Regarding Unauthorized Wire
Transfers Relating to Compromised Cyber Networks
A growing threat of fraudulent wire transfers from local businesses and government entities to overseas locations has raised numerous online banking concerns, particularly in light of the recent Duanesburg, N.Y., Central School District incident. Successful cyber attacks resulting in fraudulent wire transfers with average losses of $100,000 to $200,000 US dollars per victim, frequently trace back to malware infections on the local business or government entity's computer. These incidents primarily target small to medium sized businesses and government entities and may involve amounts as small as $10,000 US dollars or as much as several million dollars. Unlike the more traditional use of United States-based "money mules" to transfer only a few thousand dollars at once, these transfers involve larger amounts and are transferred almost directly overseas through a United States-based account within an international bank owned by an overseas company, or into a local account that immediately transfers the money overseas. Once the money is overseas, it is withdrawn immediately by a "drop," a person who is paid to withdraw the money or pick up the wire transfer. More information and recommendations. u

Take Part in National Financial Capability Challenge
The Department of the Treasury and the Department of Education are sponsoring the National Financial Capability Challenge for 2010. The Challenge is an initiative designed to engage educators in the teaching of personal finance and to increase the financial knowledge and capability of high school-aged youth across the United States so they can take control over their financial futures. All high school teachers (and other educators) are encouraged to sign up, prepare their students and administer the voluntary online exam to help reach the goal of 1 million high school students taking the Challenge this year. Educators and top-scoring students in each school will earn personalized award certificates and states with the highest participation rates will also be recognized. The registration deadline is March 14, with the Challenge to be administered March 15 to April 9. More information. u

Learn about Legal Issues
of New Account Documentation, Compliance
Legal Issues of New Account Documentation & Compliance: "Knowledge + Training = Loss Prevention" teaches new account personnel proper account opening procedures and compliance requirements; the five crucial pieces of information including proper identification and the correct TIN for every new account; and the four fundamental questions that should be asked of every potential accountholder: 1)  Who owns the funds in the account? 2)  Who has access to the funds in the account? 3)  What is the purpose of the account? 4)  If a business account: What type of legal entity is this? The seminar manual, which is customized for South Dakota law, has become known as the "technical reference handbook" for new account departments across the country. The one-day seminar will be held on March 23 at the Clubhouse Hotel & Suites in Sioux Falls. More information. Register online. u
 

SDBA/NDBA Dakota School of Lending Principles
Participants at the Dakota School of Lending will learn the theory and process of basic lending and then put this knowledge to work in actual nuts-and-bolts sessions on April 27-30 in Aberdeen. Role-plays, case studies and exercises provide hands-on learning experience in the areas of consumer lending, residential real estate lending, analyzing small business loans, loan documentation and agricultural lending. More information. Register online. u

Attend RSM McGladrey Technology Summit
Join other CEOs, CFOs and information technology management at the RSM McGladrey Technology Summit to learn investment strategies to avoid wasting IT dollars and learn about new and emerging technologies. The event will be held Tuesday, March 16, at the Sioux Falls Convention Center. With the U.S. marketplace starting to show consistent signs of recovery, many businesses are beginning to revive their strategic plans. Leveraging technology will be a crucial piece to future success.  Attendees will learn the latest advances in core business applications and why sophisticated, emerging technologies need to be considered as your organization prepares for a stronger economy. Other topics include virtualization and storage solutions, extending your business application investment, and unified communications -- transforming your business. For more information, call (605) 336-9955. u