Dear Colleagues:
We appreciate the ongoing conversations with many of you during these challenging times. We are better informed based on the insights you share, especially on the conditions in your area and their impact on your businesses. We remain available to discuss questions or concerns you may have
here.
Last week, the Fed announced details on the
Main Street Lending Program. Changes since the initial announcement include a third loan option, lowering the minimum loan size for certain loans, and expanding the businesses eligible to borrow. We appreciate the time you have taken to provide feedback during the last few weeks of this program.
The Fed has expanded the Paycheck Protection Program Liquidity Facility (PPPLF). Any lender that can originate Paycheck Protection Program (PPP) loans is now eligible to borrow under the PPPLF. You can read the press release and term sheet
here.
In April, the Fed also announced temporary changes to intraday credit. Specifically, the Fed is suspending uncollateralized intraday credit limits and waiving overdraft fees for the primary credit program, as well as streamlining the process for secondary credit institutions. Also, the Fed is pausing the collection of information used for calculating net debit caps. The
press release includes a link to recently released
FAQs.
Finally, after my communication last week, I received several questions on capital planning and maintenance. During these unprecedented times, we want to ensure the safety and soundness of financial institutions and that capital actions are reasonable and prudent given that conditions have changed since year-end 2019. At this time, we ask that state member banks and holding companies contact us to discuss anticipated share repurchases, early redemptions of capital, issuance of capital instruments, or cash dividends.
I hope you, your families, and staff remain well.
Sincerely,
