5-20-2020 Morning COVID-19 Brief

BROADCASTS

5-20-2020 Morning COVID-19 Brief

May 20, 2020

Treasury sends notice on tribal information submission

  • Treasury has begun the process of notifying tribal governments that the web-based submission site is open. Please watch for any communication from the Department of the Treasury.

Health & Human Services (on behalf of IHS) Announces Distribution of $750 million to tribal communities

  • The Paycheck Protection Program and Health Care Enhancement Act was signed into law on April 24, 2020, providing $750 million to the HHS Public Health and Social Services Emergency Fund for testing and testing related activities in IHS, Tribal, and Urban Indian Health programs. Subject to HHS’ discretion, this one-time funding is being administered to Tribes, Tribal Organizations, and Urban Indian Organizations (UIOs) by HHS through the IHS.
  • Per the statute, these funds can be used for necessary expenses to purchase, administer, process, and analyze COVID-19 tests, including support for workforce, epidemiology, and use by employers or in other settings. In addition, these funds can be used to scale up testing by public health, academic, commercial, and hospital laboratories, and community-based testing sites, health care facilities, and other entities engaged in COVID-19 testing. Funds may also be used to conduct surveillance, trace contacts, and perform other related activities related to COVID-19 testing. 
  • Dear Tribal Leader Letter


SBA Publishes new FAQ's

  • 46. Question: How will SBA review a borrowers good faith certification concerning the necessity of their loan request? 
  • Answer: SBA, in consultation with the Department of the Treasury, has determined that the following safe harbor will apply to SBA’s review of the PPP loans with respect to certification of the necessity of the loan -  Any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.An SBA interim final rule posted on May 8, 2020 provided that any borrower who applied for a PPP loan and repays the loan in full by May 14, 2020 will be deemed by SBA to have made the required certification concerning the necessity of the loan request in good faith. 
  • SBA has determined that this safe harbor is appropriate because borrowers with loans below this threshold are generally less likely to have had access to adequate sources of liquidity in the current economic environment than borrowers that obtained larger loans. 
  • 47: Question: An SBA interim final rule posted on May 8, 2020 provided that any borrower who applied for a PPP loan and repays the loan in full by May 14, 2020 will be deemed by SBA to have made the required certification concerning the necessity of the loan request in good faith. Is it possible for a borrower to obtain an extension of the May 14, 2020 repayment date? 
  • Answer: Yes, SBA is extending the repayment date for this safe harbor to May 18, 2020, to give borrowers an opportunity to review and consider FAQ #46. Borrowers do not need to apply for this extension. This extension will be promptly implemented through a revision to the SBA’s interim final rule providing the safe harbor.


SBA publishes second round data on PPP loan distributions

  • The second round focus by SBA on smaller lenders seems to have worked as planned. Almost half of all loans approved in the second round went through the smallest lenders under $2 billion in assets. Over $1 billion flowed through minority institutions such as Native-owned banks. The average loan size for the second round was $118 thousand compared to the first round average of $206 thousand confirms the funds went to smaller businesses in round two. 

Lender Size

Lender Count

Approved Loans

Approved Dollars

% of Amount

>$50 B in Assets

41

1,527,604

191,704,934,773

37%

$10 B to $50 B in Assets

93

679,898

99,930,243,092

19%

<$10 B in Assets

5,362

2,133,643

221,635,959,494

43%

Click here to view the full report


News: 

On California’s Tribal Lands, Protecting Elders Means Putting Customs, Tourism On Pause (Capradio.org

Rancherias, as reservations are often called in California, are not subject to state or county public health orders. But many tribal leaders have declared their own public health emergencies, shuttered their casinos or closed their borders. Now that some rural counties are re-opening businesses, they’re concerned about travelers bringing the virus onto their land.

Gathering elderberries and taking part in the return of the ancestors annual spiritual runs in May 2019. Talissa Gali / Courtesy