COVID-19 accounting and financial statement guidance
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The Impact of the PPP Flexibility Act and Related SBA Releases of Updated Form 3508
The Paycheck Protection Program continues to evolve and the passage of the Paycheck Protection Program Flexibility Act of 2020 has created more questions. Here are some insights to help lenders navigate these changes.
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Reconsidering an Estimated Forgiveness Repurchase for Certain PPP Loans
his blog is being posted on behalf of my colleague, Todd Sprang, principal in CLA’s financial institutions practice. Pending legislative alterations to the forgiveness criteria for borrowers, including extension of covered periods, are positive developments for both PPP borrowers and lenders. Generally, these alterations are expected to increase forgiveness amounts and reduce or eliminate any […]
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Form 1502 Guidance Reveals Additional Clawbacks
This blog is being posted on behalf of my colleagues, Susan Sabo and Todd Sprang, principals in CLA’s financial institutions practice. On May 21, 2020, the SBA issued more guidance to lenders about the Paycheck Protection Program (PPP) Lender Processing Fee Payment and 1502 Reporting Process. Within the eight-page document, the SBA reiterates aspects of […]
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COVID-19 Related Loan Modifications
This blog is being posted on behalf of my colleagues, Susan Sabo and A.J. Eschle, principals in CLA’s financial institutions practice. As we enter the middle of May, many financial institutions are facing their next set of challenges in the COVID-19 environment – loan modifications. Financial institutions are now documenting the various types of COVID-19 related […]
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Video: Insights on the Main Street Lending Program
In today’s video, Todd Sprang, Susan Sabo, and Charlie Cameron from the CLA Financial Institution team discuss their insights into the Main Street Lending programs. Their discussion includes: How should financial institutions account for PPP loans? What are the impacts to capital from PPP Loans or the Liquidity Facility? What are the key aspects of the Main Street […]
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Accounting considerations for Financial Institutions that funded Payroll Protection Program (PPP) loans
Many lenders are participating in the PPP and loans are currently being disbursed to borrowers across the country. These loans contain complex accounting considerations such as deferred fees, guarantees, and loan forgiveness. Our summary of the primary accounting considerations financial institutions should consider over the life of the PPP loans is included below. Record the […]
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Regulators Provide Regulatory Capital and Liquidity Relief to Banks
As banks across the country rush to process PPP loan applications and help borrowers in financial distress, regulators have issued two important interim final rules in the last week to provide regulatory capital relief and additional liquidity to institutions in the wake of COVID-19. As bank balance sheets swell from increased loan demand, we hope the combination of these new provisions relieves at least some of the stress currently facing institutions.
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The Fed Announces New Facilities Which Will Provide Up to $2.3 Trillion in Liquidity with $600 Billion Directed at Main Street
Today the Federal Reserve Banks have announced the formation of two facilities aimed to assist banks, their holding companies and credit unions (“Entities”) in preserving Main Street businesses. The two facilities, the Main Street New Lending Facility (MSNLF) and Main Street Expanded Loan Facility (MSELF) will provide opportunities for entities to sell loans to the […]