SDBA eNews

February 4, 2021

SDBA Seeking Candidates for Vice Chair

Are you interested in becoming an officer of the South Dakota Bankers Association?

SDBA officers include the chair, chair-elect, vice chair and immediate past chair. The SDBA is currently seeking people who are interested in running for the vice chair position, which will be elected at the Quad States Convention on June 15, 2021, in Rapid City.

The current chair-elect, Kristina Schaefer (First Bank & Trust, Sioux Falls), will automatically assume the chair position on June 15. The current vice chair, David Bangasser (Dacotah Bank, Sioux Falls), will be eligible to run for chair-elect. The position of vice chair will be up for election. Current Chair Steve Bumann (BankWest, Pierre) will become the immediate past chair.

If you are an executive officer of any SDBA member bank, you are eligible to run for vice chair. If you are interested in running for the position, contact a member of the nominating committee prior to the Quad States Convention and submit a letter of intent to SDBA President Karlton Adam at [email protected] or by mail to SDBA, PO Box 1081, Pierre, SD 57501.

Tony Nour Appointed to SDBA Board of Directors

Photo of Tony NourTony Nour has been appointment to fill the Emerging Leaders Work Group seat on the SDBA Board of Directors.

Nour is senior vice president of relationship banking at First PREMIER Bank in Sioux Falls, where he has worked since 2011. He is responsible for providing overall leadership, direction and support for the bank’s core community banking teams, including trust, investments, private, business, consumer and mortgage banking in each of the markets that First PREMIER Bank serves.

Prior to joining First PREMIER, Nour spent 11 years with Wells Fargo in Sioux Falls and Denver. He is the current chair of the SDBA’s Emerging Leader Work Group and will serve as a member of the SDBA Board of Directors through April 30, 2022. Nour is replacing Jesse Block, who has left the banking industry. 

SBA Report: $72.7 Billion in PPP Loans Approved for 2021

Since the start of the year to Jan. 31, the Small Business Administration has approved nearly 900,000 loans totaling $72.7 billion through its Paycheck Protection Program, according to a report released on Monday. In South Dakota, 9,695 loans have been approved totaling $331,667,839.

A total of 4,077 banks—81% of all banks—were participating in the 2021 program at the time the report was issued, making 86.6% of loans and lending 93% of PPP dollars. Since the start of the program, $596 billion has been approved for 6.04 million loans from 5,460 lenders, according to the report.

In 2021, 67.9% of all loans made so far were amounts under $50,000, and 78.9% of loans have gone to firms with 10 employees or less. Overall, the average loan size was $82,000. About half of the funds allocated so far have gone to four sectors: accommodation and food services; professional, scientific and technical services; construction sector; and manufacturing. Read more.

SBA Updates PPP FAQs, Provides Guidance on Shuttered Venue Grants 

The Small Business Administration on Saturday updated its set of frequently asked questions on the Paycheck Protection Program. The updated FAQs clarify that the Financial Crimes Enforcement Network’s April 2020 PPP FAQs still apply to second-draw PPP loans. They also clarify that lenders may rely on information obtained from a borrower during a first-draw loan application for a second-draw application, provided the borrower is an existing customer.

The SBA noted that the other PPP FAQs are in the process of being revised and do not as yet reflect changes made by the most recent COVID-19 relief law.

In addition, the SBA published a set of FAQs on the Shuttered Venue Operators Grants that were created by the law. According to the FAQs, borrowers are only eligible to receive either a second-draw PPP loan or a SVOG loan, not both. To qualify for an SVOG loan, borrowers must be live venue operators or promoters, theatrical producers, live performing arts organization operators, museum operators, motion picture theater operators, and talent representatives and must have been in operation as of Feb. 29, 2020. Read the PPP FAQsRead the SVOG FAQs.

On a related note, the Financial Crimes Enforcement Network on Monday updated its PPP frequently asked questions, which address how lenders can meet Bank Secrecy Act requirements when issuing a PPP loan. FinCEN confirmed that these FAQs—which were originally published in April 2020—remain applicable to second-draw PPP loans, and that lenders may rely on information obtained from a borrower during a first-draw loan application for a second-draw application, provided the borrower is an existing customer. View the FAQs.

SDDH Launches COVID-19 Vaccine Group Identification Tool, Drops Vaccination Age to 75-Plus

The South Dakota Department of Health on Tuesday released a web-based tool to help South Dakotans best identify which priority vaccination group they fall under in South Dakota’s vaccination plan.

The first steps in identifying who and when a vaccine will be made available directly correlates to the vaccine prioritization group individuals fall under. Bank employees are in priority group Phase 1E. The easy-to-use portal will also connect users to hospital systems where they can register to be contacted when it’s their turn to get vaccinated, based on vaccine supply.

Additionally, two infographics were released depicting the vaccination process from registration to shot-in-arm for state residents and a myth and facts document regarding the COVID-19 vaccine. These tools are in addition to the already available dashboard, which is updated daily and available to the public.

The Department of Health also announced that beginning Monday, Feb. 8, the age for vaccinating those in Group 1D will be lowered to those who are 75 and older. This was previously 80 and over and will continue to be decreased in five-year increments in the coming weeks as vaccine supply allows. 

For additional information and the latest resources, visit COVID.SD.GOV.

FinCEN Issues Warning about Health Care Fraud During COVID-19

The Financial Crimes Enforcement Network Tuesday night issued an advisory alerting banks to health insurance and health care frauds related to the COVID-19 pandemic. FinCEN noted that these frauds have targeted both government insurance programs as well as private health insurance companies. The advisory outlines red flags of these scams, which commonly involve offerings of unnecessary services, billing schemes, health care technology schemes or telehealth schemes, among other things. Banks should report any suspicious activity by filing a Suspicious Activity Report. Read the advisory .

GSB Offering Two Upcoming Hot Topic Online Seminars

The Graduate School of Banking (GSB) at the University of Wisconsin-Madison is offering to upcoming hot topic online seminars.

"Employment Law 2021--Everything New is New Again" will be held on Feb. 23 at 2 p.m. CST. The online seminar will focus on the key things you need to know right now--from current employment law considerations related to COVID-19 vaccines and testing to the FFCRA and related leave issues in the continuing pandemic to remote work and other, recent workplace issues, including examples from recent litigation. Learn more and register

"Update on SBA Loan Programs--How to Save Borrower Cash Flow AND Your Bank’s Capital" will be held on Feb. 24 at 2 p.m. This fast-paced webinar will update recent SBA program enhancements, provide a quick review of SBA loan types from a lender's point-of-view, and give real-life examples from previous recessions of how lenders have saved both borrower cashflow and protected against loss given default. Learn more and register

Deadline Nearing for GSB HR Management School Scholarship

The Graduate School of Banking (GSB) at the University of Wisconsin-Madison will hold its Human Resource Management School virtually starting April 12, 2021. This one-week school provides the foundation for new or veteran human resource professionals to tie together important issues in human resource management with an understanding of the business of banking.

GSB, through the SDBA, offers the Human Resource Management School Scholarship to one South Dakota banker each year. The 2021 scholarship pays $700 toward the cost of tuition. The deadline to apply for the scholarship is Monday, Feb. 8. Learn more and apply for the scholarship. Learn more about the school.  

 Compliance Alliance

Question of the Week

Question: Our residential loan department is originating loans which are investment properties/non-owner occupied. Would the bank be required to report the rate spread for HMDA purposes?

Answer: If the bank has determined that the loan is not subject to Reg. Z because it is primarily business or commercial purpose, then the rate spread would be reported as NA for HMDA purposes. On the other hand, if the bank has determined that this loan purpose is not primarily business purpose, then the rate spread would be reported for HMDA purposes, assuming no other exceptions apply.


7. Rate spread - scope of requirement. If the covered loan is an assumption, reverse mortgage, a purchased loan, or is not subject to Regulation Z, 12 CFR part 1026, a financial institution complies with § 1003.4(a)(12) by reporting that the requirement is not applicable. If the application did not result in an origination for a reason other than the application was approved but not accepted by the applicant, a financial institution complies with

§ 1003.4(a)(12) by reporting that the requirement is not applicable. For partially exempt transactions under

§ 1003.3(d), an insured depository institution or insured credit union is not required to report the rate spread. See § 1003.3(d) and related commentary.

Not a member? Learn more about membership with Compliance Alliance by attending one of our live demos:

Compliance Alliance offers a comprehensive suite of compliance management solutions. To learn how to put them to work for your bank, call 888.353.3933 or email and ask for our Membership Team.

For timely compliance updates, subscribe to Bankers Alliance’s email newsletters.

  SDBA eNews Archive
View past issues of the SDBA eNews

Advertising Opportunity
Learn more about sponsoring the SDBA eNews.

Contact Alisa Bousa, SDBA, at 605.224.1653 or via email.