Finance & Secured Lending

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On October 2, 2020, the Small Business Administration (the “SBA”) issued a procedural notice (the “Notice”) detailing the requirements for an entity (a “PPP Borrower”) that received a Paycheck Protection Program (“PPP”) loan (“PPP Loan”) to enter into a change of ownership/sale transaction without defaulting on such loan. The Notice provides much needed guidance, particularly in light of months of delays in the PPP Loan forgiveness process. A brief summary of the Notice’s requirements is provided below. Click here to download the Notice for more detailed information.


Continue Reading PPP Update: SBA Issues Guidance on M&A Transactions

On May 21, 2020, the U.S. Small Business Administration (“SBA”) released a notice informing lenders of how they may collect loan processing fees for eligible loans issued under the Paycheck Protection Program (“PPP”).

Pursuant to the CARES Act and the Interim Rule, issued by the SBA on April 2, 2020, the SBA will pay fees to lenders for processing eligible PPP loans at the following rates, based on the balance of the loan outstanding at the time of full disbursement:

  • 5% for loans under $350,000;
  • 3% for loans between $350,000 and $2 million; and
  • 1% for loans over $2 million.

However, in order to collect the processing fee on a PPP loan, a lender must first report to the SBA that a loan has been fully disbursed using SBA Form 1502.  The SBA will begin accepting these reports on fully disbursed PPP loans on May 22, 2020.  Once the report is received, the SBA will initiate the process of paying the PPP processing fee for which the lender is eligible.


Continue Reading SBA Announces Procedure for PPP Lenders to Collect Loan Processing Fees

On April 9, 2020, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System (the “Federal Reserve”), and the Office of the Comptroller of the Currency (collectively, the “federal banking agencies”) issued an interim rule that permits banks to neutralize the regulatory capital effects of participating in the Federal Reserve’s Paycheck Protection Program Lending Facility (the “PPPL Facility”).

Continue Reading Paycheck Protection Program Loans May Be Excluded from a Bank’s Regulatory Capital Ratios

CalculatorOn April 6, 2020, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation and the Board of Governors of the Federal Reserve System (collectively, the “federal banking agencies”) announced the issuance of two interim final rules to provide temporary relief to community banks.  The federal banking agencies acted to implement Section 4012 of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which requires the federal banking agencies to temporarily lower the community bank leverage ratio (“CBLR”) to eight percent (8%).

Continue Reading Temporary Regulatory Relief: Community Bank Leverage Ratio Set At 8%

hand shakeVedder Price is pleased to announce that its client Byline Bancorp, Inc. (Byline), parent company of Byline Bank, entered into a definitive agreement to acquire First Evanston Bancorp, Inc. (First Evanston), parent company of First Bank & Trust, in a cash and stock transaction valued at approximately $169 million.

At the closing of the transaction each share of First Evanston’s common stock will be converted into the right to receive 3.994 shares of Byline common stock and an amount in cash equal to $27 million divided by the number of outstanding shares of First Evanston common stock at the closing date. Based upon the closing price of Byline’s common stock of $19.73 on November 24, 2017, this represented a fully diluted transaction value of approximately $169 million.  The transaction is expected to close during the first half of 2018.  Closing of the transaction is subject to regulatory approvals, the approval of First Evanston’s and Byline’s shareholders, and the satisfaction of certain other closing conditions.
Continue Reading Vedder Price Counsels Byline Bancorp, Inc. in Its Acquisition of First Evanston Bancorp, Inc.