Federally insured depository institutions and credit unions, along with Farm Credit System institutions (subject to certain additional requirements), are automatically eligible to enroll (unless currently designated in “Troubled Condition” by their primary federal regulator or subject to a formal enforcement action by their primary federal regulator that addresses unsafe or unsound lending practices). Eligible issuers do not include companies that receive direct financial assistance under the CARES Act. If, during such eight-week period, the company (x) employs fewer full-time employees per month on average than it did during specified earlier periods or (y) reduces salary or wages by more than 25% for any employee earning less than $100,000 annually, as compared to their compensation in the most recent full quarter prior to such eight-week period, then the Forgiven Amount is reduced by a corresponding fraction or amount, as applicable.

Chamber Members: Hope you’re having a good Thursday. Additional information about Regions and its full line of products and services can be found at www.regions.com.

Eligible collateral includes US Dollar denominated cash (not synthetic) ABS that have a credit rating in the highest long-term or the highest short-term investment-grade rating category from at least two eligible NRSROs and do not have a credit rating below the highest investment-grade rating category from an eligible NRSRO. Under the SMCCF, the maximum amount of bonds that the SPV will purchase from any eligible issuer will be capped at 10% of such issuer’s maximum bonds outstanding on any day between March 22, 2019 and March 22, 2020.

The PPP is being implemented under the Small Business Act as part of its Section 7(a) loan program, the primary lending program of the Small Business Administration (SBA). For purposes of the Affiliation Rule, based on the SBA’s regulation at 13 CFR 121.301, entities are affiliates of one another when one controls or has the power to control the other, or a third party (or parties) controls or has the power to control both.
The US Treasury Department will make an initial $10 billion equity investmentIn order to be an eligible issuer, a company must (i) be “rated at least BBB-/Baa3 by a major nationally recognized statistical rating organization (‘NRSRO’) and, if rated by multiple major NRSROs, rated at least BBB-/Baa3 by two or more NRSROs,” (ii) a “U.S. Regions offers a full spectrum of banking services. The Federal Reserve stated that it expects to announce soon the establishment of a Main Street Business Lending Program to support lending to eligible small-and-medium sized businesses, which will complement efforts by the SBA to provide credit in those markets.

The provisions under the CARES Act aimed at providing assistance to mid-sized businesses do not limit the ability of the Federal Reserve to establish a Main Street Lending Program or other similar program or facility that supports lending to small and mid-sized businesses.For additional information on the Small Business Loan components of the CARES Act, see the Baker McKenzie On March 27, 2020, the President signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act (the “Act”). All or substantially all of the credit exposures underlying eligible ABS must have been originated by a US company. For eligible ABS with underlying credit exposures that do not have a government guarantee, the interest rate will be 100 basis points over the 2-year LIBOR swap rate for securities with a weighted average life less than two years, or 100 basis points over the 3-year LIBOR swap rate for securities with a weighted average life of two years or greater. To find out more about the cookies we use and how to change your settings if you do not want cookies to be placed on your device, please read our CARES Act 2020: Federal Reserve Measures in Response to COVID-19 The SPV will assess an administrative fee equal to 10 basis points of the loan amount on the settlement date for collateral. Covid-19 has left small businesses in challenging financial situations, being forced to close their doors and layoff employees.