The FDIC today released guidance with steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Vermont affected by a severe storm, flooding, landslides and mudslides.
The agency encouraged banks in affected areas to work constructively with borrowers experiencing difficulties due to severe weather, including extending repayment terms, restructuring existing loans or easing terms for new loans. The agency said banks may receive favorable Community Reinvestment Act consideration for community development loans, investments and services in support of disaster recovery. The FDIC also will consider regulatory relief from certain filing and publishing requirements.
In related news, the American Bankers Association on Thursday announced that it will donate $25,000 to the Vermont Main Street Flood Recovery Fund, which is providing grants to small businesses directly affected by recent flooding in the state.
