Bankruptcy Blogs

PPP Loan Fees for Banks

04/27/20

$10 billion of CARES Act funds are going to the banks, especially megabanks, in fees for making “small” business PPP loans. The fees, paid by the Small Business Administration, i.e. Treasury, range from 1% for loans above $2 million to 5% for loans below $350,000.

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Big banks try to figure out logistics of 'back to work'

04/26/20

Inside Citigroup's headquarters in Manhattan, executives are trying to solve a problem bedeviling much of Wall Street: How to get employees up elevators.

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Mark Cuban’s alternative to PPP: Fed-backed overdraft protection

04/26/20

The billionaire investor and entrepreneur sees problems with small businesses having to apply for loans to get coronavirus relief. He says a more efficient approach would be to let them run negative balances on their bank accounts.

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The Role of Chapter 11 Bankruptcy in Addressing the Consequences of COVID19.

04/26/20

Many businesses may require bankruptcy proceedings to assist in recovery from the CV Recession. In my view, the best legal approach to any Chapter 11 reforms necessitated by the emerging CV-induced economic crisis lies in building up from the Small Business Reorganization Act (SBRA) to cover more Small and Medium Enterprises (SME), rather than trying to adjust the general provisions of Chapter 11, the home of bankruptcies like General Motors and American Airlines.

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Federal Reserve Banks and Federal Home Loan Banks May Accept Pledges of PPP Loans as Collateral

04/24/20

The Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) guarantees loans from qualified lenders to small businesses impacted by the COVID-19 pandemic so that those businesses can keep workers employed.  In the Third Interim Final Rule issued on April 20, 2020 (see 85 Fed. Reg.

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Emergency loan program's second round to begin on Monday

04/24/20

Lenders are being urged to prepare applications for the latest version of the Paycheck Protection Program.

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CFPB issues guidance on making mortgage servicing transfers 'seamless'

04/24/20

The bureau said it began developing the standards before the coronavirus pandemic. But more transfers may occur as some servicers struggle to meet their obligations during their economic downturn.

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Robo adviser Betterment launches checking account

04/24/20

Betterment has debuted a bank account, in conjunction with partner nbkc bank in Kansas City, Mo., that is targeted at millennials and marketed as a complement to its long-term savings products.

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Streamlined Synovus could emerge from pandemic, CEO says

04/24/20

The Georgia bank could rely more on drive-through-only branches, trim office space and reassess staffing levels after the coronavirus crisis, according to Kessel Stelling.

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