- Education & Events
- Advocacy
- Products & Services
- Membership
- Resources
- South Dakota Banker Magazine
- SDBA eNews
- SDBA eNews Archives
- Legislative Update/Bill Watch
- Education Updates
- South Dakota Bank Directory
- Scenes of South Dakota Calendar*
- Holiday Signs
- Regulatory Report
- South Dakota Banking Code
- Record Retention Manual
- Salary Survey
- SDBA Media Kit
- Mental Health and Crisis Prevention
- About
- COVID-19
|
Treasury Issues Guidelines, Application for SBA Paycheck Protection ProgramThe Treasury Department on Tuesday issued much-anticipated guidance for the Paycheck Protection Program, which starting this week will provide up to $350 billion in fully-forgivable loans to help small businesses maintain payrolls during the coronavirus pandemic. The loans are fully guaranteed by the Small Business Administration, but the SBA will waive all SBA guaranty fees. PPP loans are made for two years at a 0.5% fixed rate with payments deferred for six months. All banks, as well as a broad range of nonbanks, are eligible to make PPP loans. Existing SBA-certified lenders will be given delegated authority; others must be approved before making loans. Banks that have not yet been certified with the SBA should submit an application to [email protected]. The SBA will quickly verify that banks applying are federally regulated, and new applicants will be able to process applications as soon as Friday, according to a senior administration official. To underwrite PPP loans, lenders will need to verify that the borrower was in operation on Feb. 15, 2020, and that it had employees for whom it paid salaries and payroll taxes. The lender will also have to verify the dollar amount of average payroll costs. The SBA will not review loan applications, according to a senior administration official, but lenders will receive an SBA loan number and verify that the applicant has not already received a PPP loan. The SBA will pay the lender a processing fee calculated on the loan balance, ranging from 1% for loans of more than $2 million to 5% for loans of $350,000 or less. PPP loans may be sold in the secondary market, and the SBA will not collect fees for guarantees sold. The guidance includes fee caps for agents assisting with loan applications. Small businesses and sole proprietorships—generally, those with 500 or fewer employees—may apply for PPP loans starting on Friday, April 3; independent contractors and self-employed workers can apply starting April 10. PPP loans will be fully forgiven when used for payroll costs, interest on mortgages, rent and utilities, with at least three quarters of the forgiven amount being used for payroll; forgiveness is based on employers maintaining headcount or quickly rehiring and maintaining salary levels. SDBA: Banks Are an Essential Service; Your Money is Safe, Sound and Easily AccessibleC Here are the top five things consumers should know about their money and South Dakota banks:
The SDBA will continue to post COVID-19 updates and resources on its website.
Nichols: America's Banks Strong, Ready to Meet Customer NeedsThe U.S. banking system is strong, well-capitalized and working diligently to help individuals and businesses work through the challenges they are facing as a result of the coronavirus pandemic, ABA President and CEO Rob Nichols said yesterday in an interview with Cheddar TV. “Banks are in overdrive helping customers and clients,” and have been doing so since the earliest days of the crisis, Nichols said. For example, bankers have been working constructively with customers to offer forbearance or payment deferral options ahead of actions by the government and regulatory agencies, while also offering services digitally to meet customers’ banking needs. Banks are also playing a pivotal role in facilitating the distribution of $350 billion in loans to small businesses through the Small Business Administration’s Paycheck Protection Program, a new program that was created by the CARES Act signed by President Trump last week. “We are entering this health care crisis from a position of strength,” Nichols said of the banking sector, thanks to a combination of industry-led, regulatory and legislative changes that have taken place over the past decade. “The 5,100 banks in the U.S. are doing everything they can to help borrowers.” Watch the interview. SD Congressional Delegation Urges USDA to Provide Immediate Assistance to Cattle ProducersSen. Mike Rounds, Sen. John Thune and Congressman Dusty Johnson last week helped secure support for South Dakota’s farmers and ranchers in the Coronavirus Aid, Relief and Economic Security (CARES) Act, which was signed into law on Friday, March 27. The bill provides $14 billion to replenish the U.S. Department of Agriculture’s Commodity Credit Corporation and will also provide $9.5 billion in emergency funding to support certain producers, including livestock producers, affected by the COVID-19 pandemic. Yesterday, South Dakota's congressional delegation joined more than 140 other members of Congress to send a bipartisan, bicameral letter to U.S. Department of Agriculture (USDA) Secretary Sonny Perdue requesting that he provide immediate assistance to cattle producers by using the resources provided in the CARES Act. Doing so would help facilitate the stabilization of farm and ranch income for producers who are facing market volatility in the wake of the COVID-19 pandemic and economic fallout. “The COVID-19 outbreak has demonstrated the need for domestic food security,” the members of Congress wrote. “All farmers and ranchers are vital to our country’s ability to keep food on the table in a future pandemic or related crisis, and many producers, including young producers, are often highly leveraged and cannot fall back on years of equity in a time of crisis. As such, we urge you to quickly deliver relief to producers as we work to lessen the economic impact of this pandemic.” Fed Makes Temporary Change to Supplementary Leverage Ratio Calculation
The Federal Reserve announced yesterday that it will temporarily exclude U.S. Treasury securities and deposits at Federal Reserve Banks from the calculation of the supplementary leverage ratio for holding companies, effective March 31. This action—the latest the Fed has taken to allow the continued flow of credit to households and businesses—comes amid deteriorating conditions in the Treasury market, significant inflows of consumer deposits and increased reserve levels. “The board is providing the temporary exclusion in the interim final rule to allow banking organizations to expand their balance sheets as appropriate to continue to serve as financial intermediaries, rather than to allow banking organizations to increase capital distributions, and will administer the interim final rule accordingly,” the Fed said, adding that this change would temporarily decrease tier 1 capital of holding companies by approximately 2% in aggregate. Read more. Podcast: How One Bank Workforce Went Fully Remote Amid COVID-19As the coronavirus pandemic began to spread across the country, Live Oak Bank did what almost all banks—along with other businesses—did: sent employees to work at home to contribute to social distancing. But unlike most banks, Live Oak had every employee working remotely. The bank has kept all operations up and running remotely, just as it did when hurricanes have closed its Wilmington, North Carolina, headquarters. On the latest episode of the ABA Banking Journal Podcast—sponsored by Reich and Tang Deposit Solutions—Live Oak CTO Brian Lora addresses how the bank’s cloud-based infrastructure helps it stay resilient when the operating environment changes. He also offers tips for moving toward a fully-remote workforce and practices for maintaining a productive work culture in a telework context. Listen to the episode.
Deadline Today to Run for an SDBA Board SeatElections for the SDBA’s Board of Directors are scheduled for April. Two directors have terms that expire on April 30, 2020, in addition to a vacancy and the election of a new sized-based category. Elections will take place in Group 1, Group IV, Mid-Size Community Bank Category and the new Community Bank Category. If you are interested in running for one of the Board seats, please contact one of the nominating committee members listed here by Thursday, April 2, 2020. Please also submit a short bio and headshot photo for the voting ballot to Alisa Bousa. Newly-elected Board members will take office on May 1, 2020, and serve a three-year term expiring April 30, 2023 (except for the Group I seat which is a two-year term). Questions, contact Alisa Bousa. Online Education Available Through SDBAWhile social distancing efforts remain underway and with many of the SDBA’s meetings and events canceled or postponed, we remind members of a variety of online educational resources.
The SDBA is here to support its members through information sharing, communications and educational opportunities. If we can be of assistance in helping you find specific offerings on specific topics, or if you have any questions on these platforms, contact Halley Lee. Visit the SDBA's website for the latest updates on the SDBA’s conferences and seminars.
|
OVID-19 is causing many concerns with consumers, but access to your money shouldn’t be one of them. Banks are considered an essential service, so they will continue to operate and you will have uninterrupted access to your money. This is the 
