Government Relations Updates

Government Relations Updates

Government Relations Committee (GRC) Updates

(Includes all updates related to Covid-19)

New, Non-Mandatory Federal Tax Credit to Offset Costs for Small Businesses Who Provide Paid Sick Leave for Employees to Get Vaccinated or Recover from Vaccinations

April 23, 2021On April 21, 2021, President Biden announced a new federal tax credit for employers who offer full pay to employees that take time from work to get the COVID-19 vaccine and recover from the after-effects, get tested for COVID-19, and to care for a child whose school or childcare provider is closed. Like other tax credits, there is no requirement ...

SAFE BANKING ACT

Monday evening, April 19th the House passed H.R. 1996—the Secure and Fair Enforcement Banking Act of 2021 (SAFE Banking Act) with bi-partisan support. While the primary focus of this bill is to allow banks to provide services to legitimate cannabis-related businesses an additional provision is included that could benefit other industries.  For years the pawn industry has experienced bank discontinuance of accounts and ...

Review of Refiners’ Questions to Pawnbrokers about Conflict Gold

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PAYCHECK PROTECTION PROGRAM DEADLINE EXTENSION

On Wednesday, March 10 the U. S. House of Representatives Small Business Committee indicated during a hearing they are open to extending the Paycheck Protection Program’s lending authority past the current March 31, 2021 expiration date.   Chairwoman Rep. Nydia Velazquez-NY stated, “it’s clear small businesses still need help, but lingering issues in the program have created a need for Congress to consider a short-term extension.”  ...

IRS reminds businesses to report large cash transactions; e-file encouraged

WASHINGTON — The Internal Revenue Service today reminds businesses of their responsibility to file Form 8300, Report of Cash Payments Over $10,000, and encourages e-filing to help them file accurate, complete forms.   Although many cash transactions are legitimate, information reported on Form 8300 can help stop those who evade taxes, profit from drug trading, engage in terrorist financing and conduct other criminal activities. The government can often trace money from these illegal activities through payments reported ...

Understanding how to report large cash transactions

Although many cash transcations are legitimate, the government can often trace illegal activities through payments reported on complete, accurate Forms 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. Here are facts on who must file the form, what they must report and how to report it.   Who must file  Generally, any person in a trade or business who receives ...

Federal Bills File; Background Checks on Firearms Transfers

Two bills were filed in the House of Representatives on March 1, 2021. H.R. 8 was introduced by Rep. Mike Thompson (D-CA) and is described as a ‘universal background check bill’. Although the bill contains some exceptions, it would become a criminal act for a non-licensed individual to sell, give, hand over, etc. a firearm to another person without having the transfer done by a Federal Firearms Licensee ...

New Mexico proposed 36% APR legislation does NOT include pawn

Reports from some trade associations that represent non-depository lenders, not pawn industry related, discuss bills filed in New Mexico that call for a 36% APR cap. In fact, there are 3 bills under consideration by the Legislature there that apply a 36% APR to loans made under the New Mexico Small Loan Act of 1955 and the New Mexico Bank Installment Loan Act of 1959.   Contrary to ...

TEAM GRC MONITORING STATE LEGISLATURES

Last fall the NPA Board authorized Team GRC to contract with a tracking service that would allow monitoring of all state legislatures for bills filed that may impact the pawn industry. Some state pawn associations may already have this process in place, but others may not.   This week initial bill tracking reports were prepared for 28 states and emailed to ...

PPP PROCESSING DELAYS CONTINUE

Some pawnbrokers report having received PPP loan forgiveness with no problems, while others are still waiting. One pawnbroker recently received a request from their bank of additional information needed for the SBA such as…1) Description of the business activities; 2) Tax Return; 3) Company marketing information. Also reported was a SBA ‘Hold Code’ notation “NAICS 522-Credit Intermediation-Borrower appears to be engaged in lending-Potential eligibility issue.”   The ...

CFPB TAKING ACTION TO PROTECT CONSUMERS

CFPB acting Director, Dave Uejio, recently vowed swift movement to penalize financial services companies that failed to provide relief to military, veterans, and others during the pandemic. He further stated the Bureau will expedite enforcement investigations tied to the Military Lending Act, Economic Security Act, and others to be certain the message is understood that violations will not be tolerated. MORE

GET TO KNOW YOUR REPRESENTATIVES

it is time to become acquainted with the newly elected Senators and Representatives of the 117th Congress. A “Freshman Guide” containing a short bio, photo, etc. of each Member is available for you to download HERE.

117TH CONGRESS COMMITTEE ASSIGNMENTS

The Republican leader of the House Financial Services Committee, Patrick McHenry (NC-10), announced the committee’s Ranking Member and Subcommittee roster assignments for the 117th Congress: Subcommittee on Consumer Protection and Financial Institutions:  Representative Blaine Luetkemeyer (MO-3) Ranking Member Rep. Frank Lucas (OK-3) Rep. Bill Posey (FL-8) Rep. Andy Barr (KY-6) Rep. Roger Williams (TX-25) Rep. Barry Loudermilk (GA-11) Rep. Ted Budd ...

PAYCHECK PROTECTION PORTAL UPDATE

A recent report indicates the PPP portal doesn’t appear to allow lenders to upload a borrower’s application for a second-draw PPP if a forgiveness application for the first-draw loan is still pending. However, the SBA’s interim final rule does not mention that first-draw forgiveness is a requirement for receiving a second-draw loan. Read more here.  

NEW LAW EXTENDS COVID TAX CREDIT FOR EMPLOYERS WHO KEEP WORKERS ON PAYROLL

IR-2021-21, Jan. 26, 2021 WASHINGTON — The Internal Revenue Service urges employers to take advantage of the newly-extended employee retention credit, designed to make it easier for businesses that, despite challenges posed by COVID-19, choose to keep their employees on the payroll. The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted Dec. 27, 2020, made a number of ...