An illustration of the new coronavirus COVID-19. Image courtesy of the Centers for Disease Control.

Following Gov. Ned Lamont’s directive to state agencies to find ways to assist Connecticut residents and businesses affected by the coronavirus outbreak, Banking Commissioner Jorge Perez has issued guidance to Connecticut state-charted financial institutions.

“As the state continues to navigate uncharted waters amid this public health crisis, the Department of Banking will assist our state-charted banks and credit unions in their efforts to help consumers and small businesses and non-profits through these difficult times,” Perez said in a statement issued by the Connecticut Department of Banking.

Banks and credit unions should work with borrowers in ways that are consistent with safe and sound banking practices, according to the statement. These efforts could include:

• easing credit terms for new loans.
• waiving overdraft fees, waiving late fees for loan balances.
• increasing the number of allowed money market withdrawals.
• waiving CD early withdrawal penalties.
• offering payment accommodations such as allowing borrowers to defer some payments or extending the payment due dates.

The Department of Banking also said institutions should communicate with collection agencies and other partner organizations to keep consumers and small businesses informed about possible accommodations.

“Any modifications to existing loans that are deemed prudent by financial institutions in light of the circumstances will not be subject to regulatory criticism,” Perez said.

As banks throughout Connecticut have started closing branch lobbies, the banking department also said financial institutions should make themselves available to answer customer questions and make reasonable accommodations during the outbreak, including ensuring consumers have access to banking services through drive-up windows, night deposits, ATMs and online banking.

The state of Connecticut is also taking steps to help small businesses, including extending Small Business Express loans for 90 days and offering a 90-day grace period on making payments. Lamont has also successfully applied for Small Business Administration disaster assistance.

Some banks have already taken steps to help both retail and business customers. Berkshire Bank earlier this week unveiled a series of programs to help customers, including options for small businesses to forbear loans. Webster Bank also established several programs, including an expedited process for Small Business Administration loans.

“We recognize that the emergence of COVID-19, and the dramatic steps we all must take to curtail its spread, will create financial and other challenges for our customers and communities,” John R. Ciulla, Webster president and CEO, said in a statement. “Consistent with our long history of supporting our customers in times of need, Webster is committed to providing financial flexibility to the individuals, small businesses and corporations that we serve.”