January 13, 2021
No copyright infringement intended
Vendor * Spotlight
SBA issues next round PPP resources

The SBA released a series of forms and guidance for the second round Paycheck Protection Program.
 
The releases include instructions for accessing the updated portal that lenders will use to submit applications and originate loans, as well as updated or new application forms for both “first draw” and “second draw” loans. Procedural notices also cover the automatic extension of approved lender status and the process SBA will use to reimburse lenders for EIDL advance amounts that were deducted from forgiveness.
  
New Portal User Guides

SBA PPP Lender Hotline: 833-572-0502
 
Updated First Draw Forms
 
Second Draw Forms
 
Guidance & Resources

These announcements follow the SBA's previous release of:
 
More information is available here:
 Source: Independent Community Bankers of America, SBA, ACB
IRS redirecting, reissuing some EIP2s

The IRS said it is working with the tax-preparation industry to redirect second Economic Impact Payments that for some recipients went to temporary bank accounts established when their 2019 tax returns were filed.
 
The IRS previously said roughly 13 million in EIP2s went to the temporary accounts and will have to be returned to the agency. In a statement issued Friday, the agency said it is working with the tax industry to redirect the payments to correct accounts for "many" recipients.
 
In a separate communication, the IRS said that if a tax preparer can identify the intended bank account, it can move the payment there instead of returning the funds to the agency. The IRS said some preparers have already done so.
 
Additionally, the IRS said that it will reissue payments for taxpayers who did not receive the EIP2 because the bank account identified in the agency's records has been closed. This affects taxpayers whose tax preparers followed initial IRS guidance and are now waiting for the IRS to re-process payments related to these accounts.
 
In a public statement, the IRS also reminded recipients that they can claim the Recovery Rebate Credit when they file their 2020 tax return to receive their stimulus payment. Earlier in the week, the agency encouraged individuals who do not receive the EIP2 to file their 2020 return electronically and claim the credit.

Source: Internal Revenue Service
2021 community bank priorities in open letter to Congress

As the 117th Congress assembles in Washington, ICBA published an open letter to lawmakers laying out community bank legislative priorities for the year ahead.
 
ICBA is promoting the bipartisan priorities in a digital advertising campaign and by distributing the letter directly to congressional offices. The ads will run in Politico's "Morning Money" newsletter and via a programmatic campaign targeting lawmakers and staff.
 
The letter advocates a pragmatic agenda of community bank regulatory relief and a more competitive landscape to promote growth and a dynamic economy.
 
"A thriving community banking industry is critical to restoring jobs, creating economic opportunity for all, and realizing our economic potential as a nation," ICBA President and CEO Rebeca Romero Rainey writes.
Source: Independent Community Bankers of America
SBA 7(a) payments no longer taxable income

SBA payments on existing 7(a) and 504 loans under Section 1122 of the CARES Act are no longer considered taxable income, due to a provision of the end-of-year stimulus law.
 
As a result, lenders will no longer be required to furnish SBA borrowers with 1099s, though the SBA has not yet rescinded its December guidance on the issue.
 
ICBA recommends community banks halt processing or distributing 1099s until the agencies issue further guidance.

Source: Independent Community Bankers of America
CFPB task force backs easing credit union common-bond
 
A Consumer Financial Protection Bureau task force recommended allowing more credit unions to serve underserved communities outside their common-bond membership.
 
As part of a wide-ranging report with roughly 100 recommendations on reforming consumer financial services law, the bureau's Taskforce on Federal Consumer Financial Law said employment-based credit unions operating in areas that include underserved communities would like to expand their services to those communities.
 
While the report said the task force "recognizes that credit unions are subsidized entities through their tax status as not-for-profit cooperatives," it said credit union charter type distinctions are "somewhat arbitrary" in demarcating among different classes of credit unions.
 
ICBA is reviewing the full 700-page report and will provide feedback to the CFPB. Meanwhile, it will continue pushing back against credit union efforts to relax common-bond requirements and other restrictions justifying the industry's tax exemption via its "Wake Up" campaign and Credit Union Task Force.

Source: CFPB, Independent Community Bankers of America
Attend the ACB 2020 Management & Directors Conference safely and conveniently from anywhere at anytime!