SDBA eNews

January 14, 2021

SBA to Open PPP Portal to Lenders with Less Than $1B in Assets on Friday

The Small Business Administration will open the Paycheck Protection Program portal on Friday to lenders with $1 billion or less in assets to begin processing both new and second-draw loan applications. The program will then open to all other lenders on Tuesday, Jan. 19.

The program opened on Monday morning for certain lenders reaching underserved communities, including community development financial institutions and minority depository institutions, to make first-draw loans and was opened to second-draw loans by these lenders on Wednesday.

A procedural notice issued by SBA last week confirmed that lenders that were previously making PPP loans do not need to re-register with SBA to make first-draw or second-draw loans in this round of funding. All participating lenders must register on within 30 days from the date of their first PPP loan disbursement made after Dec. 27, 2020. Read more.

In related news, SBA last night released a notice outlining procedures in the limited range of circumstances when PPP borrowers may reapply for a first-draw loan or request an increase in a first-draw loan. The notice also covers how lenders in these circumstances may obtain an additional processing fee due on the increased loan amount or on a reapplication. Read the procedural notice.

IRS Changes Course Again on EIPs; Will Reissue Misdirected Payments

The Internal Revenue Service on Monday announced that—in a reversal of previous guidance—it will reissue payments for taxpayers who did not initially receive their second-round economic impact payments due to a processing error.

“This impacts taxpayers whose tax preparation providers followed initial IRS guidance and are now waiting for the IRS to re-process payments related to these accounts,” the IRS explained in a notice. “Payments will be issued directly from the government later this month (our industry partners are not in possession of these funds), within weeks of the law being enacted.”

The IRS noted that these payments may either be issued as paper checks or via an ACH direct deposit and that taxpayers do not need to take action in order to receive their reissued payment. “The IRS regrets the inconvenience caused by this situation.” For more information, contact ABA’s Steve Kenneally.

Fed to Remove Caps on Coin Distribution

The Federal Reserve has announced that it will return to regular coin distribution for all coin denominations beginning on Friday, Jan. 15. The Fed had previously capped coin orders due to coin circulation issues that resulted from the COVID-19 pandemic.

The Fed noted that while coin circulation “has not fully returned to normal patterns,” steady deposits from financial institutions and increased production at the U.S. Mint have enabled it to remove coin allocations. The Fed said it will continue to monitor coin circulation and urged all FedCash Services customers “to continue to order only what they need to meet near-term demand and to deposit any excess coin to the Federal Reserve.”

Meanwhile, the U.S. Coin Task Force will continue its work to understand how the pandemic affected coin circulation, identify lessons learned and develop recommendations to help avoid future disruptions.

SDDH Announces Beginning Stages of Priority Group 1D Vaccinations for Next Week

The South Dakota Department of Health yesterday announced that starting on Monday, Jan. 18, the Department and its health partners across the state will start vaccinating a prioritized population group, within Group 1D, of the state’s vaccination plan. This first prioritized population group will be those 80 and over as well as high-risk individuals and will be expanded to other groups within 1D as vaccines become available. The modification comes amidst the federal government’s plan to release vaccines to states to speed up vaccinations nationwide.

“Given the progress we’ve seen in groups A through C, we are confident that with an increase in vaccine allocations, we can move into a limited population of group 1D. We will begin with those 80 and over and high-risk individuals, and from this starting point, adjust accordingly as allocation permits,” said Secretary of Health Kim Malsam-Rysdon. “We want to reassure those who’ve already received their first dose, and those in groups A through C who are already in the queue, that their second-dose will be available.”

In addition to the release of COVID-19 vaccines, Operation Warp Speed announced it is changing how it will allocate such vaccines to states. Federal officials will increase weekly allocation to states based on the size of a state’s 65-plus population and take into consideration how quickly each state is administering the vaccine to the general public. Currently, South Dakota has been receiving an average of 11,000 doses a week and has administered more than 47,950 doses. To see detailed vaccination effort numbers statewide, click here.

“Given our strong partnerships with stakeholders, and the non-stop efforts of our healthcare systems, the Department of Health is proud to say that South Dakota remains among the top states in the country in vaccination efforts-- Shots in arms, that’s our goal, ” added Malsam-Rysdon.

Updated infographics with detailed information on the beginning stages of group 1D can be found hereFor additional information and the latest COVID-19 resources, visit COVID.SD.GOV.

SDBA to Hold Cannabis/Hemp Banking 101 Webinar Next Week

The SDBA, in conjunction with the Montana Bankers Association, will host the Cannabis/Hemp Banking 101 Webinar on Wednesday and Thursday, Jan. 20-21. The webinar, which will be held virtually via Zoom, is an opportunity to learn cannabis/hemp banking basics and a chance to ask questions of industry experts. 

The webinar on Wednesday,  Jan. 20, will be held at 1-4:30 p.m. CST. Sessions are: Update on Marijuana Legalization: Status of States and SAFE Act, Legal Considerations, Lessons Learned/How to Avoid Inadvertently Banking the Marijuana Industry and How to Bank the Marijuana Industry, Compliance and Transparency.

The webinar on Thursday, Jan. 21, will be held at 10 a.m.-1 p.m. CST. Sessions are: Hemp, Federal Regulatory Considerations and State Bank Regulator Panel. Learn more and register

IRS to Hold Small Business Workshop and Listening Session 

The Internal Revenue Service (IRS) will hold a Small Business Workshop and Listening Session on Thursday, Jan. 21, for small business owners and those who assist small business owners. Participants can:

  • Hear from the IRS on estimated taxes, self-employment tax, withholding tools for employers and more.
  • Hear about examination and collection processes. 
  • Get an overview of employment taxes (employee versus independent contractor rules and the Trust Fund Recovery Penalty).
  • Hear about appeals fast track settlement program, collection due process and more.
  • Give input on how the IRS can improve service to small business owners. 

The session will be held via ZoomGov from 12 noon to 2 p.m. CST. Click here to participate. The meeting ID is 160 804 6509, and the passcode is 4y^Hd5pA.

GSB Wisconsin Offers HR Management School Scholarship

The Graduate School of Banking (GSB) at the University of Wisconsin-Madison will hold its Human Resource Management School virtually starting April 12, 2021. This one-week school provides the foundation for new or veteran human resource professionals to tie together important issues in human resource management with an understanding of the business of banking.

The school is a great way to expand your knowledge of the banking industry and human resource management, improve employee performance and establish a network of colleagues with whom to interact and exchange ideas.

GSB, through the SDBA, offers the Human Resource Management School Scholarship to one South Dakota banker each year. The 2021 scholarship pays $700 toward the cost of tuition. The deadline to apply for the scholarship is Feb. 8, 2021. Learn more and apply for the scholarship. Learn more about the school.  

Meade County Provides Answers to Floodplain Questions

The Meade County Equalization & Planning Office provides information about whether a property is in the special flood hazard area on its website

The website offers a wealth of information about the county’s flood insurance rate map including a digital copy of the special flood hazard area (SFHA) on its free mapping site, flood zones, base flood elevations (where available), floodway data, flood insurance, special rules for building in the flood plain, as well as ideas for protecting property from flood damage. The site also has additional flood hazard data not shown on the FIRM maps, where available.

If you have floodplain questions, call the Mead County Equalization & Planning Office at 605.347.3818. The office has copies of FEMA Elevation Certificates on buildings constructed or substantially improved in the floodplain since January 2014.

 Compliance Alliance

Question of the Week

Question: If a client has a Phase 1 CTR exemption, does this client need to be have a Designation of Exempt Person (DOEP) form completed and submitted to FinCEN?

Answer: It depends. Some Phase I exempt customers need DOEPs while others do not. If your customer is another financial institution or a government entity, then you do not need to file a DOEP. But regardless, banks need to be taking the same steps to assure its determination of a customer’s initial eligibility for exemption and to document the basis for that conclusion. This all would follow a reasonable and prudent standard. This ensures that the bank is protecting itself form loan or other fraud or loss based on misidentification of a person’s status.

Reference: Banks do not need to file a DOEP for Phase 1-eligible customers that are banks, federal, state, or local governments, or entities exercising governmental authority.

FFIEC Manual, pg. 86

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Contact Alisa Bousa, SDBA, at 605.224.1653 or via email.