A coalition of groups that includes the Consumer Bankers Association, the National Council of Higher Education Resources, and consumer advocates, has sent a letter to House and Senate leadership urging Congress to extend relief to federal student loan borrowers whose loans are not covered by the CARES Act.

The borrowers in question are those with Perkins loans or Federal Family Education Loan Program (FFELP) loans that are not federally-owned and instead are owned by financial institutions, non-profit or state entities. … Continue Reading

The SBA’s initial Interim Final Rule addressing the CARES Act’s Paycheck Protection Program (“PPP”), released on April 2, and its revised Borrower Application Form and Lender Application Form for a PPP Loan Guaranty, released the same day, marked huge steps forward in moving the PPP towards launch. In particular, the Lender Application Form eliminated excessive lender burdens and potential pitfalls reflected in an earlier draft of the Application that had circulated through the lender community.… Continue Reading

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) includes the following key provisions that affect financial institutions and regulation of financial institutions:

Section 4003 – Emergency Relief and Taxpayer Provisions

Section 4003 of the CARES Act generally authorizes the Treasury Secretary to make loans, loan guarantees, and other investments in support of eligible businesses, States, and municipalities that do not, in the aggregate, exceed $500,000,000,000 and provide the subsidy amounts necessary for such loans, loan guarantees, and other investments in accordance with the provisions of the Federal Credit Reform Act of 1990, including not more than: (a) $25,000,000,000 for passenger carriers and other eligible businesses; (b) $4,000,000,000 for cargo air carriers; (c) $17,000,000,000 for businesses critical to maintaining the national security; (d) $454,000,000,000 and any amounts available that are not used as provided under sections (a) through (c) to make loans and loan guarantees to, and other investments in, programs or facilities established by the Board of Governors of the Federal Reserve System for the purpose of providing liquidity to the financial system that supports lending to eligible businesses, States, or municipalities by purchasing obligations or other interests directly or on the secondary market or making loans, including secured loans.… Continue Reading