Dear SDBA Member CEOs and SDBA Board Members:
Like all of you, in recent days all of us at the SDBA have been absorbing and adjusting to COVID-19 related news and long list of changes to our daily work and personal routines which we all hope will be relatively short-lived. Rather than trying to layer individual phone calls of conference calls on top of what I know are very busy days and nights, we have tried to focus on building a robust COVID-19 resource page on our website as follows: https://www.sdba.com/covid-19. This pandemic situation is very fluid, prompting reactions and release of information by a host of public and private sources. We will strive to keep the information as fresh and content rich as possible.
Beyond those efforts, I have been communicating daily with my counterparts in the other 49 states along with the leadership and a host of subject matter experts at the American Bankers Association. I have also communicated on multiple occasions with the director of the SD Division of Banking, Governor’s Office staff and the South Dakota Municipal League in an effort to make sure that banks and bankers are exempt from any state or local business closure mandates. I know that the vast majority of banks have strived to support the spirit and intent of social distancing recommendations to the extent possible by restricting access to bank lobbies and by allowing bankers to work from home when and where possible.
Like bankers, many government officials are shifting their primary focus from the public health concerns of the COVID-19 pandemic to economic concerns and remedies. Households and businesses whose incomes are interrupted by COVID-related closures and layoffs are looking to their bank for help. Banks and bankers looking to provide help by consenting to allow customers to temporarily suspend principal and/or interest payments don’t want to be subject to regulatory criticism after the fact. Prompt and effective communication between the banking trade associations and leadership at federal and state bank regulatory agencies yielded the following joint guidance on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus: https://www.occ.gov/news-issuances/news-releases/2020/nr-ia-2020-39a.pdf.
About a week ago, Congress passed H.R. 6201, the Families First Coronavirus Response Act. An ABA staff analysis of the paid leave provisions of that legislation can be found in the link below: https://www.aba.com/-/media/documents/staff-analysis/paid-leave-03202020.pdf?rev=b1deb9f8802c43beae8a3221bc3ddb32
For the first time in history, Small Business Administration disaster loans will be made available for something other than natural disasters such as hurricanes, tornados, fires and the like. Information about SBA COVID-19 Economic Injury Disaster Loan (EIDL) programs can be found at the link below: https://www.sba.gov/disaster-assistance/coronavirus-covid-19
ABA will be hosting a webinar on Thursday, March 26, beginning at noon CDT (11 MDT) to discuss topics including EIDLs and other plans to expand SBA programs in response to COVID-19. Here is a link to that training opportunity. https://www.aba.com/training-events/online-training/sba-loans-pandemic-options
Informed people working in our nation’s capital believe that, within the next 48 hours, Congress is likely to enact yet another COVID-19 economic stimulus measure. While the exact content of that bill has not been finalized, it appears that a large portion of the financial aid to small businesses currently under consideration will flow through the Small Business Administration. Once the bill passes, I will be sure to forward along any information that will help banks deliver needed financial aid to your customers. My current understanding is that all banks who are qualified SBA 7A program lenders will be good to go to deliver COVID-19 aid programs.
That’s probably enough information for this email. If there is anything that we can do for you as you navigate through these choppy, uncharted waters, please don’t hesitate to call or drop me an email.
Best regards,
Curt Everson, President
South Dakota Bankers Association
Educate. Advocate. Grow.
PO Box 1081 | Pierre, SD 57501
W: 605.224.1653
C: 605.280.7985
[email protected]
www.sdba.com