On 7/16/2020, the Federal Reserve Board issued an interim final rule that provides an exception from Reg O for certain Paycheck Protection Program loans guaranteed by the Small Business Administration (SBA). Previously on April 17, 2020, the Federal Reserve Board issued an exception to certain restrictions found in Regulation O for certain PPP loans made to insiders as the Federal Reserve states that PPP loans pose minimal risk. The original Regulation O exception only applied to PPP loans made through June 30 2020 - the original date the Paycheck Protection Program was set to expire. This new amendment to Regulation O extends the existing exception to apply to PPP loans made through August 8, 2020.

The Federal Register notice can be found here.

Adam Witmer

Adam Witmer is a speaker, author, and founder of the Compliance Cohort. Adam has taught hundreds of seminars and training sessions to thousands of bankers throughout the United States and teaches on all areas of regulatory compliance. Adam has written five e-books that he never published, hit a grizzly bear while driving in a National Park, and is an award winning photographer and musician (though he no longer takes photos nor plays any instruments). In his spare time, Adam can be found kayaking on the lake, doing taekwondo with his kids, working on his (project) house, or spending time with his family.

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