Business Loan Program Temporary Changes; Paycheck Protection Program — Requirements — Disbursements

Record facts

Summary

An interim final rule issued by the U.S. Small Business Administration on disbursements under the Paycheck Protection Program, published in the Federal Register on May 4, 2020 (Vol. 85, No. 86), under 13 CFR Part 120, Docket Number SBA–2020–0022, RIN 3245–AH38. The rule is effective May 4, 2020, applies to applications submitted through June 30, 2020 or until funds are exhausted, and sets a comment date of June 3, 2020. It states that a borrower may not take multiple draws from a PPP loan and that the lender must make a one-time, full disbursement within ten calendar days of loan approval, a loan being approved when SBA assigns it a loan number. Transition rules provide that this period begins April 28, 2020 for loans already numbered and that loans are cancelled if required documentation is not submitted within 20 calendar days.

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26321 
Federal Register / Vol. 85, No. 86 / Monday, May 4, 2020 / Rules and Regulations 
13 12 CFR 1026.19(e)(3). As a general rule, an 
estimated closing cost disclosed on the Loan 
Estimate pursuant to § 1026.19(e)(1)(i) is in good 
faith if the charge paid by or imposed on the 
consumer does not exceed the amount originally 
disclosed. 12 CFR 1026.19(e)(3)(i). For certain 
categories of settlement charges, good faith is 
determined with reference to whether: (1) The 
aggregate amount of certain charges paid by or 
imposed on the consumer does not exceed the 
aggregate amount of those charges disclosed 
pursuant to § 1026.19(e)(1)(i) by more than 10 
percent (see 12 CFR 1026.19(e)(3)(ii)(A)); or (2) the 
charge was estimated consistent with the best 
information reasonably available at the time it was 
disclosed, regardless of whether the final amount 
exceeds the estimated amount (see 12 CFR 
1026.19(e)(3)(iii)). 
14 12 CFR 1026.19(e)(3)(iv); 12 CFR 
1026.19(e)(4)(i). Under § 1026.19(e)(4)(i), the 
revised estimates must be reflected on a revised 
version of the Loan Estimate, on the Closing 
Disclosure, or on a corrected Closing Disclosure. 
15 12 CFR 1026.19(e)(3)(iv)(A). 
16 12 CFR 1026.19(e)(3)(iv)(A)(1); comment 
19(e)(3)(iv)(A)–2. 
17 See id.; 12 CFR 1026.19(e)(4)(i). As noted 
above, the revised estimates must be reflected on a 
revised version of the Loan Estimate, on the Closing 
Disclosure, or on a corrected Closing Disclosure. 12 
CFR 1026.19(e)(4)(i). See also 12 CFR 1024.2(b) 
(definition of ‘‘Changed circumstances’’ in 
Regulation X, which predates the TRID Rule 
changed circumstance definition, includes ‘‘Acts of 
God, war, disaster, or other emergency’’). 
18 12 U.S.C. 5512(b)(1). The relevant provisions of 
TILA and Regulation Z form part of Federal 
consumer financial law. See 12 U.S.C. 5481(12)(O), 
(14). 
19 15 U.S.C. 1640(f). 
20 5 U.S.C. 553(d). 
21 5 U.S.C. 553(b). 
22 5 U.S.C. 603(a), 604(a). 
23 44 U.S.C. 3501 et seq. 
24 5 U.S.C. 801 et seq. 
with their mortgage transaction and 
disclose them on the Loan Estimate.13 
For purposes of determining good faith 
under the TRID Rule, creditors may use 
revised estimates of such costs in a 
limited number of situations pursuant to 
Regulation Z, § 1026.19(e)(3)(iv).14 One 
such situation is if there are ‘‘changed 
circumstances’’ that affect the 
settlement charges consumers would 
incur.15 The TRID Rule specifies that 
changed circumstances includes ‘‘an 
extraordinary event beyond the control 
of any interested party,’’ with the 
commentary to the TRID Rule clarifying 
that a ‘‘war or natural disaster’’ is an 
example of such an extraordinary 
event.16 
Economic disruptions and shortages 
during the COVID–19 pandemic may 
affect the ability of stakeholders to 
provide accurate estimates of some 
settlement charges. Stakeholders have 
sought guidance from the Bureau as to 
whether the COVID–19 pandemic is an 
extraordinary event that permits 
creditors to provide consumers with 
revised estimates reflecting changes in 
settlement charges. For example, a 
stakeholder asked to clarify whether, for 
purposes of establishing good faith, a 
creditor could provide a revised 
estimate of the appraisal fee based on 
changed circumstances where (1) the 
amount disclosed on the Loan Estimate 
was based on a reasonable market price 
at the time of the estimate and (2) the 
actual appraisal fee was higher because 
of a shortage of available appraisers due 
to the effects of the COVID–19 
pandemic. Upon consideration of the 
interpretive issues, the Bureau 
concludes that, as with wars or natural 
disasters, the COVID–19 pandemic is an 
example of an extraordinary event 
beyond the control of any interested 
party, and thus is a changed 
circumstance. Accordingly, for purposes 
of determining good faith, creditors may 
use revised estimates of settlement 
charges that consumers would incur in 
connection with the mortgage 
transaction if the COVID–19 pandemic 
has affected the estimate of such 
settlement charges.17 
3. Legal Authority and TILA Safe Harbor 
Provisions 
The Bureau is issuing this interpretive 
rule based on its authority to interpret 
TILA and Regulation Z, including under 
section 1022(b)(1) of the Dodd-Frank 
Act, which authorizes guidance as may 
be necessary or appropriate to enable 
the Bureau to administer and carry out 
the purposes and objectives of the 
Federal consumer financial laws.18 
By operation of TILA section 130(f), 
no provision of TILA sections 108(b), 
108(c), 108(e), 112, or 130 imposing any 
liability applies to any act done or 
omitted in good faith in conformity with 
this interpretive rule, notwithstanding 
that after such act or omission has 
occurred, this interpretive rule is 
amended, rescinded, or determined by 
judicial or other authority to be invalid 
for any reason.19 
II. Effective Date 
Because this rule is solely 
interpretive, it is not subject to the 30- 
day delayed effective date for 
substantive rules under section 553(d) 
of the Administrative Procedure Act.20 
Therefore, this rule is effective on May 
4, 2020, the same date that it is 
published in the Federal Register. 
III. Regulatory Requirements 
This rule articulates the Bureau’s 
interpretation of Regulation Z and TILA. 
As an interpretive rule, it is exempt 
from the notice-and-comment 
rulemaking requirements of the 
Administrative Procedure Act.21 
Because no notice of proposed 
rulemaking is required, the Regulatory 
Flexibility Act does not require an 
initial or final regulatory flexibility 
analysis.22 
The Bureau has determined that this 
interpretive rule does not impose any 
new or revise any existing 
recordkeeping, reporting, or disclosure 
requirements on covered entities or 
members of the public that would be 
collections of information requiring 
OMB approval under the Paperwork 
Reduction Act.23 
IV. Congressional Review Act 
Pursuant to the Congressional Review 
Act,24 the Bureau will submit a report 
containing this interpretive rule and 
other required information to the United 
States Senate, the United States House 
of Representatives, and the Comptroller 
General of the United States prior to the 
rule’s published effective date. The 
Office of Information and Regulatory 
Affairs has designated this interpretive 
rule as not a ‘‘major rule’’ as defined by 
5 U.S.C. 804(2). 
V. Signing Authority 
The Director of the Bureau, having 
reviewed and approved this document, 
is delegating the authority to 
electronically sign this document to 
Laura Galban, a Bureau Federal Register 
Liaison, for purposes of publication in 
the Federal Register. 
Dated: April 29, 2020. 
Laura Galban, 
Federal Register Liaison, Bureau of Consumer 
Financial Protection. 
[FR Doc. 2020–09515 Filed 5–1–20; 8:45 am] 
BILLING CODE 4810–AM–P 
SMALL BUSINESS ADMINISTRATION 
13 CFR Part 120 
[Docket Number SBA–2020–0022] 
RIN 3245–AH38 
Business Loan Program Temporary 
Changes; Paycheck Protection 
Program—Requirements— 
Disbursements 
AGENCY: U. S. Small Business 
Administration. 
ACTION: Interim final rule. 
SUMMARY: On April 2, 2020, the U.S. 
Small Business Administration (SBA) 
posted an interim final rule (the First 
PPP Interim Final Rule) announcing the 
implementation of the Coronavirus Aid, 
Relief, and Economic Security Act 
(CARES Act or the Act). The Act 
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Federal Register / Vol. 85, No. 86 / Monday, May 4, 2020 / Rules and Regulations 
1 If the tenth calendar day is a Saturday, Sunday, 
or legal holiday, the period continues to run until 
the end of the next business day. 
temporarily adds a new program, titled 
the ‘‘Paycheck Protection Program,’’ to 
the SBA’s 7(a) Loan Program. The Act 
also provides for forgiveness of up to the 
full principal amount of qualifying 
loans guaranteed under the Paycheck 
Protection Program (PPP). The PPP is 
intended to provide economic relief to 
small businesses nationwide adversely 
impacted by the Coronavirus Disease 
2019 (COVID–19). SBA posted 
additional interim final rules on April 3, 
2020, April 14, 2020, and April 24, 
2020. This interim final rule 
supplements the previously posted 
interim final rules with additional 
guidance. This interim final rule 
supplements SBA’s implementation of 
the Act and requests public comment. 
DATES: 
Effective date: This rule is effective 
May 4, 2020. 
Applicability date: This interim final 
rule applies to applications submitted 
under the Paycheck Protection Program 
through June 30, 2020, or until funds 
made available for this purpose are 
exhausted. 
Comment date: Comments must be 
received on or before June 3, 2020. 
ADDRESSES: You may submit comments, 
identified by number SBA–2020–0022, 
through the Federal eRulemaking Portal: 
http://www.regulations.gov. Follow the 
instructions for submitting comments. 
SBA will post all comments on 
www.regulations.gov. If you wish to 
submit confidential business 
information (CBI) as defined in the User 
Notice at www.regulations.gov, please 
send an email to ppp-ifr@sba.gov. 
Highlight the information that you 
consider to be CBI and explain why you 
believe SBA should hold this 
information as confidential. SBA will 
review the information and make the 
final determination whether it will 
publish the information. 
FOR FURTHER INFORMATION CONTACT: A 
Call Center Representative at 833–572– 
0502, or the local SBA Field Office; the 
list of offices can be found at https://
www.sba.gov/tools/local-assistance/ 
districtoffices. 
SUPPLEMENTARY INFORMATION: 
I. Background Information 
On March 13, 2020, President Trump 
declared the ongoing Coronavirus 
Disease 2019 (COVID–19) pandemic of 
sufficient severity and magnitude to 
warrant an emergency declaration for all 
States, territories, and the District of 
Columbia. With the COVID–19 
emergency, many small businesses 
nationwide are experiencing economic 
hardship as a direct result of the 
Federal, State, tribal, and local public 
health measures that are being taken to 
minimize the public’s exposure to the 
virus. These measures, some of which 
are government-mandated, are being 
implemented nationwide and include 
the closures of restaurants, bars, and 
gyms. In addition, based on the advice 
of public health officials, other 
measures, such as keeping a safe 
distance from others or even stay-at- 
home orders, are being implemented, 
resulting in a dramatic decrease in 
economic activity as the public avoids 
malls, retail stores, and other 
businesses. 
On March 27, 2020, the President 
signed the Coronavirus Aid, Relief, and 
Economic Security Act (the CARES Act 
or the Act) (Pub. L. 116–136) to provide 
emergency assistance and health care 
response for individuals, families, and 
businesses affected by the coronavirus 
pandemic. The Small Business 
Administration (SBA) received funding 
and authority through the Act to modify 
existing loan programs and establish a 
new loan program to assist small 
businesses nationwide adversely 
impacted by the COVID–19 emergency. 
Section 1102 of the Act temporarily 
permits SBA to guarantee 100 percent of 
7(a) loans under a new program titled 
the ‘‘Paycheck Protection Program.’’ 
Section 1106 of the Act provides for 
forgiveness of up to the full principal 
amount of qualifying loans guaranteed 
under the Paycheck Protection Program. 
On April 24, 2020, the President signed 
the Paycheck Protection Program and 
Health Care Enhancement Act (Pub. L. 
116–139), which provided additional 
funding and authority for the Paycheck 
Protection Program. 
II. Comments and Immediate Effective 
Date 
The intent of the Act is that SBA 
provide relief to America’s small 
businesses expeditiously. This intent, 
along with the dramatic decrease in 
economic activity nationwide, provides 
good cause for SBA to dispense with the 
30-day delayed effective date provided 
in the Administrative Procedure Act. 
Specifically, it is critical to meet 
lenders’ and borrowers’ need for clarity 
concerning program requirements as 
rapidly as possible because the last day 
eligible borrowers can apply for and 
receive a loan is June 30, 2020. 
This interim final rule supplements 
previous regulations and guidance on 
several important, discrete issues. The 
immediate effective date of this interim 
final rule will benefit lenders so that 
they can swiftly close and disburse 
loans to small businesses. This interim 
final rule is effective without advance 
notice and public comment because 
section 1114 of the Act authorizes SBA 
to issue regulations to implement Title 
I of the Act without regard to notice 
requirements. This rule is being issued 
to allow for immediate implementation 
of this program. Although this interim 
final rule is effective immediately, 
comments are solicited from interested 
members of the public on all aspects of 
the interim final rule, including section 
III below. These comments must be 
submitted on or before June 3, 2020. 
SBA will consider these comments and 
the need for making any revisions as a 
result of these comments. 
III. Paycheck Protection Program 
Requirements for Disbursements 
Overview 
The CARES Act was enacted to 
provide immediate assistance to 
individuals, families, and organizations 
affected by the COVID–19 emergency. 
Among the provisions contained in the 
CARES Act are provisions authorizing 
SBA to temporarily guarantee loans 
under the Paycheck Protection Program 
(PPP). Loans under the PPP will be 100 
percent guaranteed by SBA, and the full 
principal amount of the loans and any 
accrued interest may qualify for loan 
forgiveness. Additional information 
about the PPP is available in the First 
PPP Interim Final Rule (85 FR 20811), 
a second interim final rule (85 FR 
20817) (the Second PPP Interim Final 
Rule), a third interim final rule (85 FR 
21747) (the Third PPP Interim Final 
Rule), a fourth interim final rule (85 FR 
23450) (the Fourth PPP Interim Final 
Rule), and in an interim final rule 
issued by the Department of the 
Treasury, which was posted for public 
inspection at the Federal Register on 
April 28, 2020 (FR Doc. 2020–09239) 
(collectively, the PPP Interim Final 
Rules). 
1. Disbursements 
a. Can a borrower take multiple draws 
from a PPP loan and thereby delay the 
start of the eight-week covered period? 
No. The lender must make a one-time, 
full disbursement of the PPP loan 
within ten calendar days of loan 
approval; for the purposes of this rule, 
a loan is considered approved when the 
loan is assigned a loan number by SBA.1 
For loans that received an SBA loan 
number prior to the posting of this 
interim final rule but have not yet been 
fully disbursed, the following transition 
rules apply: 
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26323 
Federal Register / Vol. 85, No. 86 / Monday, May 4, 2020 / Rules and Regulations 
• The ten calendar-day period 
described above begins on April 28, 
2020. 
• The eight-week covered period 
began on the date of first disbursement. 
Notwithstanding this limitation, 
lenders are not responsible for delays in 
disbursement attributable to a 
borrower’s failure to timely provide 
required loan documentation, including 
a signed promissory note. Loans for 
which funds have not been disbursed 
because a borrower has not submitted 
required loan documentation within 20 
calendar days of loan approval shall be 
cancelled by the lender, subject to the 
transition rules above. When disbursing 
loans, lenders must send any amount of 
loan proceeds designated for the 
refinance of an EIDL loan directly to 
SBA and not to the borrower. 
The Administrator, in consultation 
with the Secretary, determined that 
requiring a single loan disbursement 
will best serve the interests of both 
borrowers and lenders and promote the 
purposes of the CARES Act. A single 
loan disbursement will eliminate the 
risk of delays in processing loan 
disbursement installments, advance the 
goal of payroll continuity for employees, 
and provide borrowers with faster 
access to the full loan amount so that 
they can immediately cover payroll 
costs. 
b. By when must a lender 
electronically submit an SBA Form 1502 
indicating that PPP loan funds have 
been disbursed? 
SBA will make available a specific 
SBA Form 1502 reporting process 
through which PPP lenders will report 
on PPP loans and collect the processing 
fee on fully disbursed loans to which 
they are entitled. Lenders must 
electronically upload SBA Form 1502 
information within 20 calendar days 
after a PPP loan is approved or, for loans 
approved before availability of the 
updated SBA Form 1502 reporting 
process, by May 18, 2020. The lender 
must report on SBA Form 1502 whether 
it has fully disbursed PPP loan 
proceeds. A lender will not receive a 
processing fee: (1) Prior to full 
disbursement of the PPP loan; (2) if the 
PPP loan is cancelled before 
disbursement; or (3) if the PPP loan is 
cancelled or voluntarily terminated and 
repaid after disbursement (including if a 
borrower repays the PPP loan proceeds 
to conform to the borrower’s 
certification regarding the necessity of 
the PPP loan request). In addition to 
providing ACH credit information to 
direct payment of the requested 
processing fee, lenders will be required 
to confirm that all PPP loans for which 
the lender is requesting a processing fee 
have been fully disbursed on the 
disbursement dates and in the loan 
amounts reported. A lender must report 
through either Etran Servicing or the 
SBA Form 1502 report any PPP loans 
that have been cancelled before 
disbursement or that have been 
cancelled or voluntarily terminated and 
repaid after disbursement. 
The Administrator, in consultation 
with the Secretary, determined that 
requiring lenders to report on 
disbursement within 20 calendar days 
of loan approval ensures that 
disbursement of funds to eligible 
borrowers will occur more rapidly. This 
requirement also will enhance SBA’s 
ability to track program data. 
2. Additional Information 
SBA may provide further guidance, if 
needed, through SBA notices that will 
be posted on SBA’s website at 
www.sba.gov. Questions on the 
Paycheck Protection Program may be 
directed to the Lender Relations 
Specialist in the local SBA Field Office. 
The local SBA Field Office may be 
found at https://www.sba.gov/tools/ 
local-assistance/districtoffices. 
Compliance With Executive Orders 
12866, 12988, 13132, 13563, and 13771, 
the Paperwork Reduction Act (44 
U.S.C. Ch. 35), and the Regulatory 
Flexibility Act (5 U.S.C. 601–612) 
Executive Orders 12866, 13563, and 
13771 
This interim final rule is 
economically significant for the 
purposes of Executive Orders 12866 and 
13563, and is considered a major rule 
under the Congressional Review Act. 
SBA, however, is proceeding under the 
emergency provision at Executive Order 
12866 Section 6(a)(3)(D) based on the 
need to move expeditiously to mitigate 
the current economic conditions arising 
from the COVID–19 emergency. This 
rule’s designation under Executive 
Order 13771 will be informed by public 
comment. 
Executive Order 12988 
SBA has drafted this rule, to the 
extent practicable, in accordance with 
the standards set forth in section 3(a) 
and 3(b)(2) of Executive Order 12988, to 
minimize litigation, eliminate 
ambiguity, and reduce burden. The rule 
has no preemptive or retroactive effect. 
Executive Order 13132 
SBA has determined that this rule 
will not have substantial direct effects 
on the States, on the relationship 
between the National Government and 
the States, or on the distribution of 
power and responsibilities among the 
various layers of government. Therefore, 
SBA has determined that this rule has 
no federalism implications warranting 
preparation of a federalism assessment. 
Paperwork Reduction Act, 44 U.S.C. 
Chapter 35 
SBA has determined that this rule 
will not impose new or modify existing 
recordkeeping or reporting requirements 
under the Paperwork Reduction Act. 
Regulatory Flexibility Act (RFA) 
The Regulatory Flexibility Act (RFA) 
generally requires that when an agency 
issues a proposed rule, or a final rule 
pursuant to section 553(b) of the APA or 
another law, the agency must prepare a 
regulatory flexibility analysis that meets 
the requirements of the RFA and 
publish such analysis in the Federal 
Register. 5 U.S.C. 603, 604. Specifically, 
the RFA normally requires agencies to 
describe the impact of a rulemaking on 
small entities by providing a regulatory 
impact analysis. Such analysis must 
address the consideration of regulatory 
options that would lessen the economic 
effect of the rule on small entities. The 
RFA defines a ‘‘small entity’’ as (1) a 
proprietary firm meeting the size 
standards of the Small Business 
Administration (SBA); (2) a nonprofit 
organization that is not dominant in its 
field; or (3) a small government 
jurisdiction with a population of less 
than 50,000. 5 U.S.C. 601(3)–(6). Except 
for such small government jurisdictions, 
neither State nor local governments are 
‘‘small entities.’’ Similarly, for purposes 
of the RFA, individual persons are not 
small entities. The requirement to 
conduct a regulatory impact analysis 
does not apply if the head of the agency 
‘‘certifies that the rule will not, if 
promulgated, have a significant 
economic impact on a substantial 
number of small entities.’’ 5 U.S.C. 
605(b). The agency must, however, 
publish the certification in the Federal 
Register at the time of publication of the 
rule, ‘‘along with a statement providing 
the factual basis for such certification.’’ 
If the agency head has not waived the 
requirements for a regulatory flexibility 
analysis in accordance with the RFA’s 
waiver provision, and no other RFA 
exception applies, the agency must 
prepare the regulatory flexibility 
analysis and publish it in the Federal 
Register at the time of promulgation or, 
if the rule is promulgated in response to 
an emergency that makes timely 
compliance impracticable, within 180 
days of publication of the final rule. 5 
U.S.C. 604(a), 608(b). 
Rules that are exempt from notice and 
comment are also exempt from the RFA 
requirements, including conducting a 
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Federal Register / Vol. 85, No. 86 / Monday, May 4, 2020 / Rules and Regulations 
regulatory flexibility analysis, when 
among other things the agency for good 
cause finds that notice and public 
procedure are impracticable, 
unnecessary, or contrary to the public 
interest. SBA Office of Advocacy guide: 
How to Comply with the Regulatory 
Flexibility Act, Ch.1. p.9. Accordingly, 
SBA is not required to conduct a 
regulatory flexibility analysis. 
Jovita Carranza, 
Administrator. 
[FR Doc. 2020–09398 Filed 5–1–20; 8:45 am] 
BILLING CODE P 
SMALL BUSINESS ADMINISTRATION 
13 CFR Part 120 
[Docket Number SBA–2020–0023] 
RIN 3245–AH39 
Business Loan Program Temporary 
Changes; Paycheck Protection 
Program—Requirements—Corporate 
Groups and Non-Bank and Non- 
Insured Depository Institution Lenders 
AGENCY: U. S. Small Business 
Administration. 
ACTION: Interim final rule. 
SUMMARY: On April 2, 2020, the U.S. 
Small Business Administration (SBA) 
posted an interim final rule announcing 
the implementation of the Coronavirus 
Aid, Relief, and Economic Security Act 
(CARES Act). The CARES Act 
temporarily adds a new program, titled 
the ‘‘Paycheck Protection Program,’’ to 
the SBA’s 7(a) Loan Program. The 
CARES Act also provides for forgiveness 
of up to the full principal amount of 
qualifying loans guaranteed under the 
Paycheck Protection Program (PPP). The 
PPP is intended to provide economic 
relief to small businesses nationwide 
adversely impacted by the Coronavirus 
Disease 2019 (COVID–19). SBA posted 
additional interim final rules on April 3, 
2020, April 14, 2020, April 24, 2020, 
and April 28, 2020, and the Department 
of the Treasury posted an additional 
interim final rule on April 28, 2020. 
This interim final rule supplements the 
previously posted interim final rules by 
limiting the amount of PPP loans that 
any single corporate group may receive 
and provides additional guidance on the 
criteria for non-bank lender 
participation in the PPP, and requests 
public comment. 
DATES: 
Effective date: This rule is effective 
May 4, 2020. 
Applicability date: This interim final 
rule applies to applications submitted 
under the Paycheck Protection Program 
through June 30, 2020, or until funds 
made available for this purpose are 
exhausted. 
Comment date: Comments must be 
received on or before June 3, 2020. 
ADDRESSES: You may submit comments, 
identified by number SBA–2020–0023 
through the Federal eRulemaking Portal: 
http://www.regulations.gov. Follow the 
instructions for submitting comments. 
SBA will post all comments on 
www.regulations.gov. If you wish to 
submit confidential business 
information (CBI) as defined in the User 
Notice at www.regulations.gov, please 
send an email to ppp-ifr@sba.gov. 
Highlight the information that you 
consider to be CBI and explain why you 
believe SBA should hold this 
information as confidential. SBA will 
review the information and make the 
final determination whether it will 
publish the information. 
FOR FURTHER INFORMATION CONTACT: A 
Call Center Representative at 833–572– 
0502, or the local SBA Field Office; the 
list of offices can be found at https://
www.sba.gov/tools/local-assistance/ 
districtoffices. 
SUPPLEMENTARY INFORMATION: 
I. Background Information 
On March 13, 2020, President Trump 
declared the ongoing Coronavirus 
Disease 2019 (COVID–19) pandemic of 
sufficient severity and magnitude to 
warrant an emergency declaration for all 
States, territories, and the District of 
Columbia. With the COVID–19 
emergency, many small businesses 
nationwide are experiencing economic 
hardship as a direct result of the 
Federal, State, tribal, and local public 
health measures that are being taken to 
minimize the public’s exposure to the 
virus. These measures, some of which 
are government-mandated, are being 
implemented nationwide and include 
the closures of restaurants, bars, and 
gyms. In addition, based on the advice 
of public health officials, other 
measures, such as keeping a safe 
distance from others or even stay-at- 
home orders, are being implemented, 
resulting in a dramatic decrease in 
economic activity as the public avoids 
malls, retail stores, and other 
businesses. 
On March 27, 2020, the President 
signed the Coronavirus Aid, Relief, and 
Economic Security Act (the CARES Act) 
(Pub. L. 116–136) to provide emergency 
assistance and health care response for 
individuals, families, and businesses 
affected by the coronavirus pandemic. 
The Small Business Administration 
(SBA) received funding and authority 
through the CARES Act to modify 
existing loan programs and establish a 
new loan program to assist small 
businesses nationwide adversely 
impacted by the COVID–19 emergency. 
Section 1102 of the CARES Act 
temporarily permits SBA to guarantee 
100 percent of 7(a) loans under a new 
program titled the ‘‘Paycheck Protection 
Program.’’ Section 1106 of the CARES 
Act provides for forgiveness of up to the 
full principal amount of qualifying 
loans guaranteed under the Paycheck 
Protection Program. On April 24, 2020, 
the President signed the Paycheck 
Protection Program and Health Care 
Enhancement Act (Pub. L. 116–139), 
which provided additional funding and 
authority for the Paycheck Protection 
Program. 
As described below, to preserve the 
limited resources available to the PPP 
program, this interim final rule limits 
the aggregate amount of PPP loans that 
any single corporate group may receive. 
This interim final rule also provides 
additional guidance regarding lenders 
eligible to make PPP loans. 
II. Comments and Immediate Effective 
Date 
The intent of the CARES Act is that 
SBA provide relief to America’s small 
businesses expeditiously. This intent, 
along with the dramatic decrease in 
economic activity nationwide, provides 
good cause for SBA to dispense with the 
30-day delayed effective date provided 
in the Administrative Procedure Act. 
Specifically, it is critical to meet 
lenders’ and borrowers’ need for clarity 
concerning program requirements as 
rapidly as possible because the last day 
eligible borrowers can apply for and 
receive a loan is June 30, 2020. 
This interim final rule supplements 
previous regulations and guidance on 
certain important, discrete issues. The 
immediate effective date of this interim 
final rule will benefit lenders so that 
they can swiftly close and disburse 
loans to small businesses. This interim 
final rule is effective without advance 
notice and public comment because 
section 1114 of the CARES Act 
authorizes SBA to issue regulations to 
implement Title I of the CARES Act 
without regard to notice requirements. 
This rule is being issued to allow for 
immediate implementation of this 
program. Although this interim final 
rule is effective immediately, comments 
are solicited from interested members of 
the public on all aspects of this interim 
final rule, including section III below. 
These comments must be submitted on 
or before June 3, 2020. SBA will 
consider these comments and the need 
for making any revisions as a result of 
these comments. 
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