The Federal Reserve Board ("FRB") adopted an interim final rule to extend an exception that modified Federal Reserve Act Section 22 and FRB Regulation O ("Loans to Executive Officers, Directors and Principal Shareholders of Member Banks"). The exception allows bank executive officers, directors and principal shareholders to apply for PPP loans from related bank affiliates on behalf of small businesses they own.
The exception initially applied only to PPP loans made by June 30, 2020; this interim final rule - which is immediately effective - expands the exception to loans filed through August 8, 2020. Comments may be submitted until August 31, 2020.
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