SDBA eNews

March 11, 2021

House Passes Final Version of COVID-19 Relief Bill

By a vote of 220 to 211 yesterday, the House passed the Senate-amended version of the $1.9 trillion COVID-19 relief bill. The bill now goes to President Biden for signature. Among other things, the bill includes another round of $1,400 economic impact payments that will be paid to an estimated 125 million taxpayers who meet eligibility criteria.

This is the third round of EIPs that have been distributed since the coronavirus began. Banks facilitated the processing of roughly 161.9 million payments in the first round and more than 147 million in the second round. While the bill did not include language explicitly exempting third-round EIPs from assignment and garnishment, ABA this week joined a coalition of finance and consumer groups in urging Congress to take immediate action to do so.

In addition to EIPs, the bill also includes additional unemployment benefits and tax relief for out-of-work employees, along with additional aid for state and local governments.

At Pandemic's First Anniversary, Nichols Reflects on Bankers' Role

Today marks the first anniversary of the World Health Organization's declaration of a coronavirus pandemic. Beyond the loss of life and cost in physical well-being, the COVID-19 pandemic triggered momentous changes in Americans' ways of life and posed novel challenges to the banking industry.

"As I reflect on the last twelve months and the incredible changes that occurred virtually overnight to keep our society moving in the face of perilous uncertainty, I am filled with a deep sense of pride in how the banking industry stepped up to help make that happen," ABA President and CEO Rob Nichols writes in an ABA Banking Journal column. "It speaks to the 'can-do' spirit of America's 2 million bank employees that as the world was shutting down, as daily routines were being upended, bankers embraced their role as economic first responders and got to work extending aid that helped keep individuals and businesses afloat."

In the column, Nichols reflects on the lessons learned about the banking system's resilience, the acceleration of digital banking and the importance of state bankers association partnerships. He also appeared in a Banking with Interest podcast episode with other trade group CEOs to discuss the critical moments of March 11, 2020, including a meeting with top bank CEOs, economic policy officials and the president in the West Wing. Read the columnListen to the podcast episode.

Agencies Update FAQs on Coronavirus, CRA Activities

The banking agencies on Monday updated a list of frequently asked questions related to the Community Reinvestment Act and the coronavirus pandemic. The five new frequently asked questions clarify that:

  • CRA regulatory criteria for the service test do not include loan processing and servicing activities for retail loans originated by the bank, and that the agencies will not extend CRA service test consideration for Paycheck Protection Program-related activities. However, the agencies acknowledged that PPP activities may be considered under the CRA lending test when evaluating flexible or innovative lending programs offered by the bank.
  • Banks should not report on their CRA loan register PPP loans that have been rescinded or returned under the SBA’s safe harbor, nor will examiners consider the loans in their CRA evaluations of banks during the applicable time period.
  • A PPP loan greater than $1 million in low- or moderate-income geographies or in distressed or underserved nonmetropolitan middle-income geographies will be considered an eligible community development activity.
  • The waiving of ATM fees, overdraft fees, and early withdrawal penalties on CDs, and withdrawal fees on savings accounts are examples of retail services considered responsive to the needs of low- and moderate-income individuals. Allowing a LMI individual to make draws from a home equity line of credit during the repayment period could constitute a flexible lending practice. Allowing an LMI individual to make a withdrawal from an IRA or to draw on a HELOC during the draw period are routine banking services and, as such, are not eligible for CRA consideration.
  • As an alternative to in-person services, the agencies will consider services provided virtually by bank representatives that have a primary purpose of community development and that are related to the provision of financial services.

Read the FAQs. For more information, contact ABA's Krista Shonk.

ABA, Groups Call for PPP Flexibility to Resolve Hold Codes, Process Applications

As the Small Business Administration prepares to wind down the Paycheck Protection Program at the end of the month, ABA and nine other financial services trade groups called on SBA to clear thousands of loans that are currently on hold before shutting the program down. In a letter to House and Senate Small Business Committee leaders, the groups flagged that lenders have received a high number of hold codes or error messages that have held up the processing and funding of PPP loans to struggling small businesses for “several weeks or longer.”

The groups also called on lawmakers to urge SBA to hold the program open long enough for all loan applications that have been submitted to SBA by the March 31 deadline to be processed and funded.

“Since its inception, the PPP has served a vital role in helping millions of small businesses survive,” the groups wrote. “As this program reaches its current congressionally authorized sunset date, thousands of our nation’s small businesses have filed or intend to file applications for this critical economic lifeline. They should be given the opportunity to receive these funds through the full program authorization period.” Read the letter.

CDC Issues First Set of Guidelines on Vaccinated People Visiting Safely with Others

The Centers for Disease Control and Prevention (CDC) on Monday issued its first set of recommendations on activities that people who are fully vaccinated against COVID-19 can safely resume.

The new guidance includes recommendations for how and when a fully-vaccinated individual can visit with other people who are fully vaccinated and with other people who are not vaccinated. A person is considered fully vaccinated two weeks after receiving the last required dose of vaccine. Specifically, CDC’s guidance recommends that fully-vaccinated people can:

  • Visit with other fully-vaccinated people indoors without wearing masks or staying 6 feet apart.
  • Visit with unvaccinated people from one other household indoors without wearing masks or staying 6 feet apart if everyone in the other household is at low risk for severe disease.
  • Refrain from quarantine and testing if they do not have symptoms of COVID-19 after contact with someone who has COVID-19.

CDC recommends that fully-vaccinated people continue to take COVID-19 precautions when in public, when visiting with unvaccinated people from multiple other households, and when around unvaccinated people who are at high risk of getting severely ill from COVID-19:

The guidance represents a first step toward returning to everyday activities in our communities. CDC will update these recommendations as more people are vaccinated, rates of COVID-19 in the community change and additional scientific evidence becomes available. Read more

Tri-State Trust Conference to Be Held Virtually

Trust officers from three states will gather virtually to learn from experts and one another at the 2021 Tri-State Trust Conference on April 28-29. Both days will include a morning session (9:30-11:30 a.m. CDT) and an afternoon session (1-3 p.m. CDT).

Keynote sessions include "Two Timely Retirement Planning Topics" by Sharon Carson with J.P. Morgan, "Economic Assessment and Fixed Income Outlook" by Linda Duessel with Federated Hermes, "Point of View: The Economy, Markets and Investment Strategy" by Fritz Meyer with Point of View and "2021 Tax and Estate Planning: What to Tell Clients Now" by Martin Shenkman with Shenkman Law.

The conference, which is hosted by the North Dakota Bankers Association, will also include a virtual wine tasting and networking. You must register by April 1 to be eligible for a welcome gift and wine. Learn more and register

Marco to Hold Webinar on SolarWinds Orion Attack

Like water, attackers flow to where the cracks are in your network defenses. As a result, IT professionals should accept an attack as inevitable and plan for when, not if, a breach will occur. This is the assume breach mentality.

On Wednesday, March 24,  at noon CDT, Marco’s security professionals will unpack the recent SolarWinds Orion attack. The far-reaching SolarWinds Orion attack has catapulted supply chain security vulnerabilities into the spotlight. Supply chain attacks are not new, but what made this one so different?

Mike Burgard, CISO at Marco, and Jon Roberts, security architect at Marco, will answer that question and give takeaways as organizations look to better defend themselves. Attendees will learn: review of the SolarWinds Orion attack, assume breach implications for organizations, and key learnings and takeaways for better defense. Learn more and register

Learn About Obstacles and Opportunities of Banking Marijuana-Related Businesses

 While marijuana remains illegal at the federal level, many states have now legalized its use in some form. This trend brings both opportunities and obstacles for banks and other financial institutions looking to provide financial services to marijuana-related businesses.

Join Snell & Wilmer attorneys Judith Lajoie and Morgan Hicks on Wednesday, March 31, as they present on the current state of cannabis law and its impact on financial institutions. Hosted by the Colorado Bankers Association, the webinar will be held at 10 a.m. CDT. 

Topics to be covered include pending federal legislation, Department of Justice guidance and its effect on state-level marijuana law, and federal stimulus programs including the Paycheck Protection Program (PPP). The webinar also offer a case study of a secured lending transaction involving a marijuana-related business and tips from bankers who monitor loans and deposits arising from the cannabis industry.

The cost of the webinar is $50. Learn more and register

 Compliance Alliance

Question of the Week

Question: Are money market accounts covered under Regulation CC? 

Answer: Money market accounts, or MMDAs, are considered savings accounts and are not subject to Regulation CC.


"a) Account. (1) Except as provided in paragraphs (a)(2) and (a)(3) of this section, account means a deposit as defined in 12 CFR 204.2(a)(1)(i) that is a transaction account as described in 12 CFR 204.2(e). As defined in these sections, account generally includes accounts at a bank from which the account holder is permitted to make transfers or withdrawals by negotiable or transferable instrument, payment order of withdrawal, telephone transfer, electronic payment, or other similar means for the purpose of making payments or transfers to third persons or others. Account also includes accounts at a bank from which the account holder may make third party payments at an ATM, remote service unit, or other electronic device, including by debit card, but the term does not include savings deposits or accounts described in 12 CFR 204.2(d)(2) even though such accounts permit third party transfers. An account may be in the form of—

  1. A demand deposit account,
  2. A negotiable order of withdrawal account,
  3. A share draft account,
  4. An automatic transfer account, or
  5. Any other transaction account described in 12 CFR 204.2(e)." SID=18a09463d3fda3dc3e0456dbc18926f4&mc=true&node=se12.3.229_12&rgn=div8

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.

  IntraFi Network

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.