InfoBytes Blog
Filter
Subscribe to our InfoBytes Blog weekly newsletter and other publications for news affecting the financial services industry.
South Carolina governor calls on residents to stay-at-home and practice social distancing
On April 6, South Carolina Governor Henry McMaster issued an executive order limiting social interaction and calling on citizens to stay in their residences when not conducting essential business or activities. The order defined essential businesses to include activities operations or services identified by the United States Cybersecurity and Infrastructure Security Agency in its March 28, 2020 memorandum, which includes financial services. The order went into effect at 5:00 p.m. on April 7.
Massachusetts regulator suspends lending limits for PPP loans
On April 6, the Massachusetts Division of Banks issued guidance to state-chartered banks and credit unions indicating that it will not make adverse regulatory findings or take enforcement action if a loan made under the Small Business Administration’s Payment Protection Program (PPP) causes the institution to violate legal limits on loans to one borrower or the institution’s internal policy. The division also encouraged institutions to work collaboratively to meet demand for PPP loans, such as instituting referral systems.
Florida issues executive order suspending the assessment and collection of taxation for notes and obligations under the CARES Act
On April 6, the Florida governor issued an executive order suspending the assessment and collection of excise taxes on documents imposed pursuant to Chapter 201 of the Florida statutes for all notes and other written obligations made pursuant to Title I of the CARES Act (the Paycheck Protection Program). The Department of Revenue is directed to issue an emergency order establishing that taxation imposed under Chapter 201 on such notes and obligations is not owed as a result of the suspension.
Arizona governor calls for moratorium on small business evictions
On April 6, Arizona Governor Doug Ducey issued an executive order calling for a moratorium on small business evictions. The order applies to businesses impacted by the Covid-19 crisis and instructs landlords to work with tenants to waive late fees, penalties, and to develop rent repayment plans. In place until May 31, the order does not apply to foreclosure or eviction proceedings initiated before the March 11 declared state of emergency.
Indiana securities regulator alerts registrants to regulatory relief
The Indiana Secretary of State, Securities Division issued a compliance alert to notify registrants that the division granted relief from fingerprinting requirements associated with registration applications for investment adviser representatives. The division indicated that it may provisionally approve an application for registration without fingerprints, provided the applicant submits fingerprints before June 30, 2020.
New Mexico regulator declares that licensed small loan companies are non-essential
On April 6, New Mexico’s Financial Institutions Division issued notice that businesses operated by companies licensed under the New Mexico Small Loan Act of 1955 are not “essential businesses” for purposes of the state’s stay at home order and must remain closed through April 30.
Mississippi permits remote notarization
On April 6, the governor of Mississippi issued an executive order permitting remote notarizations. To perform a remote notarization under the terms of the order, the notary and the principal must be using two-way audio and visual communication at the time of signing. Additionally, the notary public must reasonably identify the principal, create an audiovisual recording of the act, retain the recording, and ensure that the intended document relates to a matter in Mississippi, among other things. Notaries public intending to perform remote notarizations may use this form to notify the secretary of state.
New York Department of Financial Services calls on regulated entities to fund or partner Community Development Financial Institutions
On April 5, the New York Department of Financial Services Superintendent Linda Lacewell published a letter to state-regulated entities encouraging them to fund or partner with Community Development Financial Institutions. Lacewell stated that CDFIs play a major role in enabling the Paycheck Protection Loan Program established by the CARES Act for low and medium income communities, and without CDFI funding and grants, many New York small businesses will not be able to survive the economic fallout caused by Covid-19.
Louisiana governor encourages Louisiana banks and small businesses to continue to be diligent as federal Paycheck Protection Program is implemented
On April 4, the Louisiana governor issued a statement encouraging Louisiana banks and small businesses to continue to be diligent as the federal Paycheck Protection Program is rolled out. Banks are encouraged to continue pursuing access to federal funding and to be patient as the program moves forward. The statement also reiterated additional help for small businesses is available through the previously-announced Louisiana Loan Portfolio Guaranty Program.
Arkansas issues executive order closing nonessential businesses
On April 4, the governor of Arkansas issued an executive order directing certain businesses (which do not include financial services) to close, and offering guidance on how open businesses need to conduct themselves during the Covid-19 crisis.