SBA Updates, FinCEN Warning, and Credit Obligation Webinar

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The U.S. Small Business Administration’s Office of Inspector General has issued “Lender Alert: Economic Injury Disaster Loans,” which states the SBA no longer offers advances on Economic Injury Disaster Loans (EIDL) as of July 11, 2020. Until July 10, eligible small business owners in all U.S. states were able to request an advance of up to $10,000.

EIDL loans are still available. Lenders who have questions about eligibility or need to return money should contact SBA at eidl.ach.inquiries@sba.gov.

Lenders who suspect attempted fraud should contact the National Center for Disaster Fraud Hotline at 866-720-5721 or fill out the Web Complaint Form. Lenders may also report fraud, waste, abuse, or mismanagement of federal funds involving SBA programs, operations, or personnel to the SBA OIG Hotline at 800-767-0385. You can also submit a complaint form here.

Warning signs of fraud include using stolen identities to qualify for funds; applications from ineligible persons (nonbusiness entities, suspended or debarred individuals, etc.); fake businesses established specifically to apply for SBA assistance; borrowers working with third parties to obtain EIDL funds in exchange for keeping a percentage of the funds; borrowers using economic injury loan money to start businesses; misuse of loan funds; reporting inflated business and financial information; and borrowers declining loans after advance funds have been deposited.

Click here to read the Leagues’ Risk Alert.

SBA’s RFI on Community Advantage Recovery Loans
In case any credit union is a participant of the SBA’s Community Advantage Pilot Program, the SBA has published a request for information (RFI) and a notice on the establishment of a new, temporary Community Advantage (CA) loan product in response to the Coronavirus pandemic. The new loans — the CA recovery loans — will be made only under the CA Pilot Program and will be available to small businesses located in underserved markets. Click here and read more under the “Eligible Lenders” area.

FinCEN Warns CUs of Twitter CVC Payment Fraud
The Financial Crimes Enforcement Network (FinCEN) is warning credit unions of a high-profile scam exploiting Twitter accounts to solicit fraudulent payments denominated in convertible virtual currency (CVC). Cyber threat actors compromised the accounts of public figures, organizations, and financial institutions to solicit payments to CVC accounts, claiming that any CVC sent to a wallet address would be doubled and returned to the sender.

It is critical that CVC exchanges and other financial institutions identify and report suspicious transactions associated with this type of activity as quickly as possible. You can read FinCEN’s alert here.

Webinar: Creditor Obligations Under CARES Act
The Credit Union National Association hosted a free webinar on “COVID-19 and Credit Reporting.” This one-hour session explained new creditor requirements for credit reporting under the CARES Act amendments to the Fair Credit Reporting Act.
 
Topics include: how creditors report accounts under the CARES Act; special coding for forbearance and deferments during disaster declarations; consumer responsibilities when forbearance ends; and the impact of COVID-19 on credit reports and credit scores.
 
You can download the recorded webinar (available July 24) here.

NCUA Announces Schied as CFO
The National Credit Union Administration announced the selection of Eugene Schied as the agency’s new chief financial officer.
 
As CFO, Schied will lead a team of more than 50 employees who perform essential functions, such as accounting and financial reporting, enterprise risk management, strategic and performance planning, budgeting, procurement, facilities and logistical support, the administration of credit union operating fees, and the National Credit Union Share Insurance Fund’s capitalization deposits and operations. You can read more here.

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