USDA Seeks Applications to Support Working Capital for Rural Businesses, Ag Producers

The Coronavirus Aid, Relief and Economic Security (CARES) Act passed by Congress authorized nearly $1 billion in additional loan guarantee authority for the U.S. Department of Agriculture and created the Business and Industry (B&I) CARES Act Program. 

For the first time, agricultural producers may access this program if they are ineligible for financing from USDA’s Farm Service Agency. Any loan guaranteed by the B&I CARES Act Program must be used as working capital to prevent, prepare for or respond to the effects of the coronavirus pandemic.

Fed Publishes Partial State-by-State List of MSLP Lenders

The Federal Reserve yesterday unveiled an interactive state-by-state map listing lenders participating in the Main Street Lending Program that have chosen to be listed and are currently accepting applications from new customers. MSLP registered lenders that wish to be added to the Federal Reserve Bank of Boston’s list can email [email protected]. The Boston Fed will update the listing regularly as new lenders complete the registration process and elect to be included on the map.

Under the MSLP, businesses may apply for funding through a registered lender, which will then determine eligibility using its own underwriting criteria. The Fed will purchase up to 95% of MSLP loans made through its MSLP facility. Lenders will retain the other 5%. Read more and view the list. For more information, contact ABA’s Shaun Kern or Hu Benton.

SBA Releases Data on PPP Borrowers and Loans

The Small Business Administration (SBA) on Monday released public data on Paycheck Protection Program (PPP) participants, including borrowers and lenders, as of June 30.

For loans $150,000 and above, SBA disclosed the name and location of the business receiving the loan, the number of employees benefiting, the name of the lender, the congressional district of the borrower and a range where the loan amount falls. For loans below $150,000, SBA did not release borrower names but did include precise loan amounts. The public data set did not include information on PPP loans that were canceled.

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Fed Launches Task Force to Address Coin Shortages During Pandemic

The Federal Reserve announced on Tuesday that it is forming a task force to address the issue of low coin inventories during the coronavirus pandemic—an issue that several ABA members have raised in recent days. The task force—which includes representatives from the Fed, the U.S. Mint, armored carriers and several industry stakeholders including ABA—will work to identify and implement potential solutions to reduce these disruptions. The task force will hold its first meeting in early July, with the goal of creating its first set of recommendations by the end of the month.

With many physical retail businesses and other firms closed during the pandemic, the Fed noted that the coin supply chain has seen significant disruption in recent days. “The Federal Reserve is working on many fronts with our industry partners, including the U.S. Mint, to minimize supply constraints and maximize coin production capacity,” the Fed noted. “We are encouraging depository institutions to order only the coin they need to meet near-term customer demand and to remove barriers to customer coin deposits.” Read more . For more information, contact ABA’s Steve Kenneally.

Mike Klumpp and Jesse Block Appointed to SDBA Board of Directors

Mike Klumpp, Citibank, Sioux Falls, and Jesse Block, First Fidelity Bank, Platte, have been appointed to the SDBA Board of Directors. The SDBA is the professional and trade association for South Dakota’s financial services industry and helps educate, advocate and grow a diverse mix of financial institutions throughout the state.

Mike Klumpp
Photo of Mike KlumppAs site president for Citibank in Sioux Falls, Mike Klumpp is responsible for driving and executing site governance, people strategy, site culture and community involvement. A native of northwest Iowa, Klumpp earned a finance degree at Iowa State University prior to joining Citi in 1988 as a financial analyst. He has served in a variety of managerial roles in security operations and fraud prevention and, in addition to his role as site president, is currently the director of control for Citi’s Global Consumer Bank Fraud Prevention group.

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Steve Bumann, Kristina Schaefer, David Bangasser and Shawn Rost Elected as SDBA 2020-2021 Officers

The South Dakota Bankers Association (SDBA), the professional and trade association for South Dakota’s financial services industry, elected officers for its 2020-2021 Board of Directors. The SDBA is honored to have the following individuals serve as officers:

  • Chair: Steve Bumann, CFO, BankWest, Inc., Pierre
  • Chair-Elect: Kristina Schaefer, General Counsel & Chief Risk Officer, First Bank & Trust, Sioux Falls
  • Vice Chair: David Bangasser, Southern Region President, Dacotah Bank, Sioux Falls
  • Immediate Past Chair: Shawn Rost, South Dakota Market President, First Interstate Bank, Rapid City

The official election took place at the SDBA’s Annual Business Meeting held virtually on June 9. The term for the new officers is effective now through next year’s Annual Business Meeting.

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SBA: 4.7 Million PPP Loans Made as of June 20

Lenders nationwide had made approximately 4.7 million PPP loans totaling $515 billion as of last Saturday, SBA reported over the weekend. Forty-four percent of all PPP loans were made by lenders with less than $10 billion in assets, 19% were made by institutions with $10 billion to $50 billion in assets, and 37% were made by institutions with more than $50 billion in assets. The overall average loan size was $110,000.

The data also included an updated list of the top 15 PPP lenders. The top five PPP lenders were JPMorgan Chase, Bank of America, PNC, Truist and Wells Fargo. With the PPP program now in its final days before the program expires on June 30, approximately $128 billion was still available as of the report date. Read more.

Financial Regulators Issue Examiner Guidance for Assessing COVID-19 Effects

Recognizing the significant and long-lasting effects of the coronavirus pandemic on financial institutions, federal and state financial regulators on Tuesday issued joint guidance for how examiners should assess the effects of COVID-19 on the safety and soundness of banks and credit unions. The guidance directs examiners to assess institutions according to existing agency policies and procedures and to consider the appropriateness of management actions to address COVID-19 challenges. It provides specific instructions for examiners when considering an institution’s risk assessment, capital adequacy, asset quality, management actions, earnings, liquidity and market risk sensitivity.‌

“Examiners should assess the reasonableness of management’s actions in response to the pandemic given the institution’s business strategy and operational capacity in the distressed economic and business environment in which the institution operates,” the agencies said. “When assigning the composite and component ratings, examiners will review management’s assessment of risks presented by the pandemic, considering the institution’s size, complexity and risk profile.”

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SDBA Announces Retirement of President Curt Everson

Curt EversonThe South Dakota Bankers Association (SDBA), the professional and trade association for South Dakota’s financial services industry, is announcing the impending retirement of its president, Curt Everson.

Following 20 years of service in state government, Everson has led the 136-year-old Association since September of 2002. The role of the SDBA, located in Pierre, S.D., is to help educate, advocate and grow a diverse mix of financial institutions throughout the state.

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SDBA Holding Photo Contest for 2021 Scenes of South Dakota Calendar

The SDBA is pleased to offer the 2021 Scenes of South Dakota Calendar, which will feature photos of South Dakota submitted by South Dakota bankers, their family members and customers.

If you or one of your bank’s employees, a relative or customer are an amateur photographer and would like the opportunity to have your creativity displayed in homes and businesses across the state, send the SDBA your photos of farms, barns, agricultural activities, historical South Dakota locations, county fairs, carnivals, parades or festivals, fall colors, winter snowfalls, spring flowers, summer fun, etc.

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SBA Streamlines PPP Forgiveness Application for Many PPP Borrowers

The Small Business Administration yesterday released a three-page “EZ” Paycheck Protection Program loan forgiveness application requiring less documentation and fewer calculations than previously required. Form 3508EZ applies to borrowers who meet any one of these three criteria:

  • Applied for the PPP loan as self-employed, an independent contractor or a sole proprietor with no employees.
  • Did not reduce salary or wages for any employee by more than 25% and did not reduce the number or hours of their employees (excepting laid-off employees who refused an offer to return).
  • Did not reduce salary or wages for any employee by more than 25% during the covered period and experienced reductions in business activity as a result of health directives related to COVID-19.

The streamlined forgiveness form is expected to smooth the forgiveness application process for a substantial portion of PPP borrowers. SBA also updated the regular Form 3508 to reflect recent changes made by Congress in the PPP Flexibility Act and issued a new interim final rule that implements changes made by the PPPFA.

SDBA Virtual Ag Credit Conference Starting Next Week

There is still time to register for the SDBA's Virtual Ag Credit Conference, which starts next week. The virtual event will be held as a series of four webinars on June 24 and July 1, 8 and 15 from 10-11 a.m. CDT. 

Don’t miss this opportunity to hear from experts on the economy, markets, technology and policy. The lineup is:

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ABA: Banks Must Be 'Part of the Solution' to Addressing Racial Inequities

In a joint message to ABA member bank CEOs yesterday, ABA Chair Laurie Stewart and President and CEO Rob Nichols addressed the killing of George Floyd and other recent instances of racial injustice and inequity that have taken place across the nation and shared how the Association intends to respond.

Stewart and Nichols acknowledged that “unacceptable racial disparities in health, wealth, income, education and other measures of opportunity continue to grow,” noting that black and Hispanic Americans have been disproportionately affected by the coronavirus pandemic and subsequent economic downturn. “We cannot look away from these facts, we cannot declare them someone else’s problem, we cannot fail to engage,” they said. “We must be part of the solution.”

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USDA Rural Development to Hold Business & Industry CARES Act Program Webinar

The Coronavirus Aid, Relief and Economic Security (CARES) Act passed by Congress authorized nearly $1 billion in additional loan guarantee authority for the U.S. Department of Agriculture and created the Business and Industry (B&I) CARES Act Program. 

For the first time, agricultural producers may access this program if they are ineligible for financing from USDA’s Farm Service Agency. Any loan guaranteed by the B&I CARES Act Program must be used as working capital to prevent, prepare for or respond to the effects of the coronavirus pandemic.

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Bankers Take Part in SDBA Virtual Annual Business Meeting, FDIC Town Hall

Photo of Shawn RostMore than 100 member bankers and business partners took part in the Association's Virtual Annual Business Meeting on Tuesday. The meeting is traditionally held during the SDBA/NDBA Annual Convention, which was canceled due to the pandemic.

The Annual Business Meeting's agenda included the election of SDBA officers, comments from the outgoing and incoming SDBA chairs, an association update from SDBA President Curt Everson and a South Dakota Bankers Foundation update from Halley Lee.

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ABA Report: Farm Banks Increased Capital Ahead of Pandemic

Prior to the outbreak of the coronavirus in the U.S., the nation’s farm banks were well-capitalized—with many raising equity capital—a more conservative type of capital—according to ABA’s annual Farm Bank Performance Report released last week. Equity capital at the nation’s 1,715 farm banks rose 11.5% to total $52 billion in 2019. Tier 1 capital, meanwhile, increased by $3.3 billion to $47.9 billion.

Farm banks increased agricultural lending by 3.6%, or $4 billion, to $105 billion in 2019. Almost all—98%—of them were profitable, with 63% reporting earnings increases. The report noted, however, that many ag producers were struggling with difficult conditions in the agricultural economy—from trade uncertainties to natural disasters to weakening farm balance sheets and land values—prior to the outbreak of COVID-19. Farm banks reported non-current ag loans ticking up to 0.84%.

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Registration Open for Virtual Town Hall with FDIC Chair Jelena McWilliams

On Tuesday, June 9, South Dakota bankers are invited to join North Dakota bankers for a Virtual Town Hall with FDIC Chair Jelena McWilliams at 10:30-11:30 a.m. CDT. McWilliams was originally scheduled to speak at the SDBA/NDBA Annual Convention, which was canceled due to the pandemic.

McWilliams was sworn in as the 21st chair of the FDIC on June 5, 2018. She serves a six-year term on the FDIC Board of Directors and is designated as chair for a term of five years.

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Registration Open for SDBA Virtual Annual Business Meeting

The SDBA’s Annual Business Meeting, traditionally held during the Annual Convention, will take place as a virtual meeting via Zoom on Tuesday, June 9, at 9-10 a.m. CDT. The meeting is being held virtually due to the cancellation of the SDBA/NDBA Annual Convention, which was scheduled for June 8-9.

The agenda of the Annual Business Meeting includes election of SDBA officers, comments from the outgoing and incoming SDBA chairs, an association update from SDBA President Curt Everson and a South Dakota Bankers Foundation update from Halley Lee. The meeting is open to all SDBA members. 

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Registration Open for SDBA's Virtual Ag Credit Conference

Registration for the SDBA's 2020 Virtual Agricultural Credit Conference is now open. The virtual conference is a series of four webinars on June 24 and July 1, 8 and 15 from 10-11 a.m. CDT. The lineup is:

  • Dr. Chris Kuehl: The COVID Economy: Where From Here?
  • Doug Johnson: Convergence of the Big Three in Agriculture: Ag Economy, Ag Technology and Ag Experience
  • Troy Bockelmann and Ryan Moe: Commodities Outlook and How It Impacts the Ag Economy
  • Ed Elfmann and Sen. Mike Rounds: Fireside Chat: Washington Update.

The virtual sessions will be moderated by host Damian Mason, who you may remember from the 2019 Ag Credit Conference. Mason is a businessman, agriculturist, speaker, podcaster, writer and consultant.  

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Temporary Extensions Granted for South Dakota Driver License Expiration Dates

The South Dakota Department of Public Safety (DPS) is reminding people and businesses that it has temporarily granted extension for residents' driver license expiration dates. 

“Since the COVID-19 emergency, the state’s Driver Licensing Program has received several hundred calls each day from citizens worried about renewing their driver license or ID card,” said DPS Cabinet Secretary Craig Price.  “I have authorized the Driver’s Licensing Program to extend these expiration dates for the length of the Governor’s state of emergency for COVID-19, beginning March 13, through the duration of the emergency declaration plus an additional 90 days.”

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