Consumer & Business Response

Disasters are unpredictable and can be devastating to a community. But there is a lot your bank can do to help prepare your customers for these events.

Help Consumers Prepare for a Natural Disaster

Disasters are unpredictable and can be devastating to a community. But there is a lot your bank can do to help prepare your customers for these events.

Share these tips:

  • Store important documents such as proof of identity, property ownership, insurance policies, bank and investment account information, and three years of tax returns in a bank safe-deposit box. Encase these items in plastic bags to prevent moisture.
  • Prepare additional copies of critical documents such as birth certificates, adoption papers, marriage licenses and the deed to your home for safekeeping and inform a trustee, relative or attorney of their location.
  • Print out key contact information for executors, trustees and guardians and store it in a secure location, either in your safe-deposit box or with a close relative.
  • Inventory personal and household valuables (take photos and keep receipts) to help evaluate replacement costs.
  • Include surplus cash, preferably small bills, in your home emergency kit. The kit should also include a three-day supply of food and water, a first aid kit, can opener, radio, flashlights and batteries.
  • Create digital copies, which can serve as a supplement or backup to paper documents.  Scanned or electronic documents can be uploaded with secure online backup services.
  • Contact your insurance agent or visit the Federal Emergency Management Agency’s website to determine if a flood insurance policy is right for you.

SBA: PPP changes effective this week

March 01, 2021

The SBA this week plans to issue an interim final rule detailing and implementing pending changes to the Paycheck Protection Program.

Background: The changes announced last week include:

  • A revised loan calculation formula for sole proprietors, independent contractors, and self-employed individuals reportedly using gross income instead of net income, as advocated by ICBA.
  • $1 billion set aside for PPP loans to businesses in this category that do not have employees and are located in low- or moderate-income areas.
  • The elimination of qualifying restrictions for small-business owners delinquent on their federal student loans or with prior non-fraud felony convictions.
  • Allowing non-citizen small-business owners who are lawful U.S. residents to use Individual Taxpayer Identification Numbers to apply for relief.

More: Also of note:

  • SBA will issue a new application form this week for Schedule C borrowers, so lenders and borrowers should await that new form before submitting applications.
  • Loan amounts cannot be increased once the loan is disbursed to the borrower, so lenders and borrowers may wish to cancel loans that have not yet been disbursed and reapply using the new Schedule C application form once it is released.
  • SBA is experiencing a backlog of forgiveness applications that are in process and is redeploying resources to address the backlog and speed up processing.
  • SBA cannot approve any loans after the March 31 deadline set by statute, so banks should consider this deadline when submitting loan applications and allow for processing time and error resolution.

Current Window: A 14-day period during which only businesses with fewer than 20 employees can apply for PPP relief started last Wednesday, Feb. 24. Applications already in the pipeline or requiring error resolution will continue to be processed.

Resources: Additional PPP information and resources are available on the SBA and Treasury sites and ICBA's PPP and EIP News page.