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#2236291 - 05/07/20 01:13 PM Beneficial Owner Issue PPP Loans
Anonymous
Unregistered

Maybe I'm missed it?? The SBA application form lists space for 20% ownership in the company. But I don't see a control prong space on the form. What is everyone doing about that - those that are using this SBA form?

Thanks!

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#2236301 - 05/07/20 02:37 PM Re: Beneficial Owner Issue PPP Loans Anonymous
Buddy the Elf Offline
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Not only is there no Control Person space, there is no space for date of birth of the individual beneficial owners. We opted to not use this "option" provided and instead require our standard Beneficial Ownership form for new customers.
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#2236303 - 05/07/20 02:47 PM Re: Beneficial Owner Issue PPP Loans Anonymous
Skittles Online
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Skittles
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TN
We did the same as Justin above. For new customers we followed our existing Beneficial Ownership procedures.
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#2236312 - 05/07/20 03:38 PM Re: Beneficial Owner Issue PPP Loans Anonymous
Anonymous
Unregistered

Another anon: What about the FinCEN relief pertaining to not needing to reverify B.O. info on existing customers? Why do that separate form at all, for existing customers?

https://www.fincen.gov/sites/default/files/2020-04/Paycheck_Protection_Program_FAQs.pdf

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#2236341 - 05/07/20 07:54 PM Re: Beneficial Owner Issue PPP Loans Anonymous
Buddy the Elf Offline
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For existing customers, we are not requiring them to recertify.
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#2236435 - 05/08/20 09:27 PM Re: Beneficial Owner Issue PPP Loans Buddy the Elf
travelgirl1 Offline
Member
Joined: Sep 2015
Posts: 83
I'm getting push back from the business line that for new customers (based on FAQ#25) if they collect the information listed (name, address, title, SSN, etc.) they are presumed to be in compliance with beneficial owner requirements, including the control prong. That the government designed this program to give the most relief in the quickest way possible - so it's permissible to get the information listed from other places vs. the standard BO form. Further, the lack of reference or silence about the control person says we don't need to do it - I don't agree with this! My rebuttal is this FAQ only references Beneficial Owner, not the control piece, which to me is separate and independent of BO. ABA as of now, agrees with this. They are keenly aware of the confusion caused by the silence around the control prong and are pushing for FinCEN to provide guidance.

I'm hoping FinCEN comes back and says you don't need it but I'm not overly optimistic. The fact that they are requiring BO on new customers leads me to believe information on the control person is needed too.

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#2236741 - 05/15/20 01:39 PM Re: Beneficial Owner Issue PPP Loans Anonymous
SmallBankBSA Offline
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Joined: May 2018
Posts: 141
I've got an audit starting soon and I'm interested to see how the internal audit team interprets this. the beneficial owner rule is two pronged and we are missing the Control Person by not requiring a separate form for new customers but I'm alone on an island in my thinking right now

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#2237053 - 05/20/20 06:42 PM Re: Beneficial Owner Issue PPP Loans Anonymous
Anonymous
Unregistered

So the SBA PPP loan application requires title for anyone owning 20% or more. The FFIEC manual does not require title as any of the pieces for identification of beneficial ownership. Has anyone had an auditor recommend their BO form be updated to include title? We do collect BO and control prong title when we create the customer in the system.
Thoughts?

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#2237054 - 05/20/20 06:46 PM Re: Beneficial Owner Issue PPP Loans Anonymous
rlcarey Online
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rlcarey
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Posts: 78,649
Galveston, TX
I fail to see the relationship between a PPP application form and the normal BO requirements.
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#2247316 - 01/07/21 03:41 PM Re: Beneficial Owner Issue PPP Loans Anonymous
Skittles Online
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Skittles
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So it appears round 2 of the PPP loans may start as early as next week; however I don't want to 'assume' that FinCEN will also exempt existing customers from the Beneficial Ownership rules. Has anyone heard or read anything about this?
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#2247318 - 01/07/21 03:59 PM Re: Beneficial Owner Issue PPP Loans Anonymous
DeeQ Offline
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Turnpike Exit 10
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Get your facts first, then you can distort them as you please. - Mark Twain

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#2247319 - 01/07/21 03:59 PM Re: Beneficial Owner Issue PPP Loans Anonymous
DeeQ Offline
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Joined: Dec 2002
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Beneficial Ownership Information Collection Requirements for Existing Customers
"One of the primary components of the CARES Act is the Paycheck Protection Program (PPP). For eligible federally insured depository institutions and federally insured credit unions, PPP loans for existing customers will not require re-verification under applicable BSA requirements, unless otherwise indicated by the institution’s risk-based approach to BSA compliance.

For non-PPP loans, FinCEN reminds financial institutions of FinCEN’s September 7, 2018 ruling (FIN-2018-R004) offering certain exceptive relief to beneficial ownership requirements. To the extent that renewal, modification, restructuring, or extension for existing legal entity customers falls outside of the scope of that ruling, FinCEN recognizes that a risk-based approach taken by financial institutions may result in reasonable delays in compliance.

FinCEN will continue to assess reasonable risk-based approaches to BSA obligations and will issue further information, as appropriate, particularly as the CARES Act is implemented."
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Get your facts first, then you can distort them as you please. - Mark Twain

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#2247320 - 01/07/21 04:05 PM Re: Beneficial Owner Issue PPP Loans Anonymous
Skittles Online
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Skittles
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TN
Thanks DeeQ - this is MUCH appreciated.
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