Pub. 1 2020 Issue 4

15 ISSUE 4 | 2020 The OCC notes that banks may accept applications from both existing small business customers and applicants who are not current loan customers as part of the PPP. When working with all applicants, in addition to following the SBA PPP program requirements, national banks and thrifts are encouraged by the OCC to collect and track information provided during the application process regarding borrowers’ annual revenue, and for loans made in LMI census tracts, distressed areas, and underserved areas, and that benefit LMI individuals, families, and communities. The agency sees maintaining and monitoring this information, where available, in the administration of the SBA PPP as a prudent banking practice consistent with the principles of safety, soundness, fair access and fair treatment of borrowers. The OCC also points out that this information may be used to track loan volumes for CRA purposes, as discussed in the Joint Statement on CRA Consideration for Activities in Response to COVID-19, discussed above. Prudent practices may also include documenting implementa- tion decisions when setting eligibility criteria, establishing pro- cesses for considering applications, and approving or denying PPP applications. These decisions might include issues such as the bank’s business justifications and any alternatives consid- ered for eligibility, consideration, and approval of applications. In addition, relevant business considerations may include estimates of resources needed to implement and offer the SBA PPP, current available resources (including staff resources), and the ability to access needed information about an applicant in a timely way, among other factors. The OCC also encourages banks and thrifts to identify and track PPP loan volumes. Such documentation enhances overall credit risk management while enabling the bank to demonstrate the full spectrum of businesses served, including small businesses and those in LMI areas. When exercising supervisory and en- forcement responsibilities in this area, the OCC will take into account the unique circumstances resulting from the national emergency and good faith efforts to comply with applicable Banks may accept applications from both existing small business customers and applicants who are not current loan customers as part of the PPP. William J. Showalter William J. Showalter, CRCM, CRP is a senior consultant with Young & Associates, Inc. (www. younginc.com) , with over 35 years’ experience in compliance consulting, advising and assisting financial institutions on consumer compliance and compliance management issues. He also develops and conducts compliance training programs for individual banks and their trade associations, and has authored or co-authored numerous compliance publications and articles. Bill can be reached at (330) 678-0524 or wshowalter@younginc.com. legal requirements. Documentation of these issues can help write the bank’s own story of its participation in the PPP pro- gram, and inform regulatory assessment of that involvement. OCC Bulletin 2020-45 is available at https://www.occ.gov/ news-issuances/bulletins/2020/bulletin-2020-45.html, and OCC Bulletin 2020-19 (with the Joint Statement mentioned above) may be accessed at https://www.occ.gov/news-issuances/ bulletins/2020/bulletin-2020-19.html#. 