Business Loan Program Temporary Changes; Paycheck Protection Program — Loan Increases

Record facts

Summary

An interim final rule issued by the U.S. Small Business Administration on loan increases under the Paycheck Protection Program, published in the Federal Register on May 19, 2020 (Vol. 85, No. 97), under 13 CFR Part 120, Docket Number SBA–2020–2028, RIN 3245–AH42. The rule is effective May 19, 2020, applies to applications submitted through June 30, 2020 or until funds are exhausted, and sets a comment date of June 18, 2020. It authorizes all PPP lenders to increase existing PPP loans made to partnerships or seasonal employers, so that partner compensation may be included under the rule posted April 14, 2020 (85 FR 21747) or a seasonal employer may use the alternative criterion posted April 28, 2020 (85 FR 23917). Where such a loan is already disbursed, the lender may make an additional disbursement before submitting the initial SBA Form 1502.

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29842 
Federal Register / Vol. 85, No. 97 / Tuesday, May 19, 2020 / Rules and Regulations 
§ 217.301
[Amended] 
■4. Amend § 217.301 by: 
■a. In paragraphs (b)(1) and (d) 
introductory, remove ‘‘U.S. GAAP’’ and 
add in its place ‘‘GAAP’’; and 
■b. In paragraph (c)(2) introductory 
text, add ‘‘or Category III’’ after the 
phrase ‘‘an advanced approaches’’ and 
‘‘its applicable’’ after the words ‘‘its 
calculation of’’; 
■c. In paragraph (d)(2)(i) introductory 
text, remove the phrase ‘‘in a first’’ and 
add in its place ‘‘in its first’’; and 
■d. In paragraph (d)(2)(ii) introductory 
text, add ‘‘or Category III’’ after the 
phrase ‘‘An advanced approaches’’ and 
‘‘its applicable’’ after the words ‘‘its 
calculation of’’. 
Federal Deposit Insurance Corporation 
12 CFR Chapter III 
Authority and Issuance 
For the reasons set forth in the joint 
preamble, chapter III of title 12 of the 
Code of Federal Regulations is amended 
as follows: 
PART 324—CAPITAL ADEQUACY OF 
FDIC-SUPERVISED INSTITUTIONS 
■5. The authority citation for part 324 
continues to read as follows: 
Authority: 12 U.S.C. 1815(a), 1815(b), 
1816, 1818(a), 1818(b), 1818(c), 1818(t), 
1819(Tenth), 1828(c), 1828(d), 1828(i), 
1828(n), 1828(o), 1831o, 1835, 3907, 3909, 
4808; 5371; 5412; Pub. L. 102–233, 105 Stat. 
1761, 1789, 1790 (12 U.S.C. 1831n note); Pub. 
L. 102–242, 105 Stat. 2236, 2355, as amended 
by Pub. L. 103–325, 108 Stat. 2160, 2233 (12 
U.S.C. 1828 note); Pub. L. 102–242, 105 Stat. 
2236, 2386, as amended by Pub. L. 102–550, 
106 Stat. 3672, 4089 (12 U.S.C. 1828 note); 
Pub. L. 111–203, 124 Stat. 1376, 1887 (15 
U.S.C. 78o–7 note); Pub. L. 115–174; Pub. L. 
116–136, 134 Stat. 281. 
■6. Amend § 324.301 as follows: 
■a. Revise paragraph (b)(1); 
■b. In paragraph (b)(2), remove the 
phrase ‘‘FDIC-supervised’s adoption’’ 
and add in its place ‘‘FDIC-supervised 
institution’s adoption’’; 
■c. In paragraph (c)(2) introductory 
text, add ‘‘or Category III’’ after the 
phrase ‘‘an advanced approaches’’ and 
‘‘its applicable’’ after the words ‘‘its 
calculation of’’; 
■d. Revise paragraph (d) introductory 
text; 
■e. In paragraph (d)(2)(i) introductory 
text, remove the phrase ‘‘in its a’’ and 
add in its place ‘‘in its first’’; 
■f. In paragraph (d)(2)(i)(C), remove the 
phrase ‘‘fifty percent of its AACL 
transitional amount’’ and add in its 
place ‘‘fifty percent of its modified 
AACL transitional amount’’ and remove 
the phrase ‘‘twenty-five percent of its 
AACL transitional amount’’ and add in 
its place ‘‘twenty-five percent of its 
modified AACL transitional amount’’; 
■g. In paragraph (d)(2)(ii) introductory 
text, add ‘‘or Category III’’ after the 
phrase ‘‘An advanced approaches’’, 
remove the phrase ‘‘for the fiscal year 
that begins during the 2020 calendar 
year’’ and add in its place ‘‘during 
2020’’, and add ‘‘its applicable’’ after the 
words ‘‘its calculation of’’; and 
■h. In paragraph (d)(2)(ii)(A), remove 
the phrase ‘‘fifty percent of its CECL 
transitional amount’’ and add in its 
place the phrase ‘‘fifty percent of its 
modified CECL transitional amount’’ 
and remove the phrase ‘‘twenty-five 
percent of its CECL transitional 
amount’’ and add in its place ‘‘twenty- 
five percent of its modified CECL 
transitional amount’’. 
The revisions read as follows: 
§ 324.301
Current expected credit losses 
(CECL) transition. 
* 
* 
* 
* 
* 
(b) * * * 
(1) Transition period means the three- 
year period, beginning the first day of 
the fiscal year in which an FDIC- 
supervised institution adopts CECL and 
reflects CECL in its first Call Report 
filed after that date; or, for the 2020 
transition under paragraph (d) of this 
section, the five-year period beginning 
on the earlier of the date an FDIC- 
supervised institution was required to 
adopt CECL for accounting purposes 
under GAAP (as in effect on January 1, 
2020), or the first day of the quarter in 
which the FDIC-supervised institution 
files regulatory reports that include 
CECL. 
* 
* 
* 
* 
* 
(d) Calculation of the five-year CECL 
transition provision. An FDIC- 
supervised institution that was required 
to adopt CECL for accounting purposes 
under GAAP (as in effect January 1, 
2020) as of the first day of a fiscal year 
that begins during the 2020 calendar 
year, and that makes the election 
described in paragraph (a)(1) of this 
section, may use the transitional 
amounts and modified transitional 
amounts in paragraph (d)(1) of this 
section with the 2020 CECL transition 
calculation in paragraph (d)(2) of this 
section to adjust its calculation of 
regulatory capital ratios during each 
quarter of the transition period in which 
an FDIC-supervised institution uses 
CECL for purposes of its Call Report. An 
FDIC supervised-institution that did not 
make the election described in 
paragraph (a)(1) of this section because 
it did not record a reduction in retained 
earnings due to the adoption of CECL as 
of the beginning of the fiscal year in 
which the FDIC-supervised institution 
adopted CECL may use the transition 
provision in this paragraph (d) if it has 
a positive modified CECL transitional 
amount during any quarter ending in 
2020 and makes the election in the Call 
Report filed for the same quarter. 
* 
* 
* 
* 
* 
Brian Brooks, 
First Deputy Comptroller, Comptroller of the 
Currency. 
Board of Governors of the Federal Reserve 
System. 
Ann Misback, 
Secretary of the Board. 
Federal Deposit Insurance Corporation. 
Dated at Washington, DC, on April 13, 
2020. 
Robert E. Feldman, 
Executive Secretary. 
[FR Doc. 2020–08789 Filed 5–18–20; 8:45 am] 
BILLING CODE 4810–33–P 6210–01–P; 6714–01–P 
SMALL BUSINESS ADMINISTRATION 
13 CFR Part 120 
[Docket Number SBA–2020–2028] 
RIN 3245–AH42 
Business Loan Program Temporary 
Changes; Paycheck Protection 
Program—Loan Increases 
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, 
April 28, 2020, April 30, 2020, May 5, 
2020, and May 8, 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 providing 
guidance on the ability to increase 
certain PPP loans, and requests public 
comment. 
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Federal Register / Vol. 85, No. 97 / Tuesday, May 19, 2020 / Rules and Regulations 
DATES: 
Effective date: This rule is effective 
May 19, 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 18, 2020. 
ADDRESSES: You may submit comments, 
identified by number SBA–2020–2028 
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 stay-at-home 
orders, are being implemented, resulting 
in a dramatic decrease in economic 
activity as the public limits activity at 
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 (PPP). 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 PPP. 
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 an 
important, discrete issue. 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. In addition, SBA has 
determined that there is good cause for 
dispensing with advance public notice 
and comment on the ground that it 
would be contrary to the public interest. 
Specifically, SBA has determined that 
advance public notice and comment 
would delay the ability of certain 
businesses to obtain increases in their 
PPP loan amounts in order to ensure 
they obtain the maximum amount that 
they are eligible for under current 
guidance (guidance that was not 
available at the time their PPP loans 
were approved). 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 18, 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 Loan Increases 
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 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 interim final rules published by SBA 
and the Department of the Treasury in 
the Federal Register (85 FR 20811, 85 
FR 20817, 85 FR 21747, 85 FR 23450, 
85 FR 23917, 85 FR 26321, 85 FR 26324, 
85 FR 27287), and an additional SBA 
interim final rule entitled ‘‘Business 
Loan Program Temporary Changes; 
Paycheck Protection Program— 
Requirements—Extension of Limited 
Safe Harbor with Respect to 
Certification Concerning Need for PPP 
Loan Request,’’ which SBA posted on 
May 8, 2020, and is published 
elsewhere in this issue of the Federal 
Register (collectively, the PPP Interim 
Final Rules). 
On April 14, 2020, SBA posted an 
interim final rule that, among other 
things, provided guidance for 
individuals with self-employment 
income (85 FR 21747). The interim final 
rule stated, ‘‘if you are a partner in a 
partnership, you may not submit a 
separate PPP loan application for 
yourself as a self-employed individual. 
Instead, the self-employment income of 
general active partners may be reported 
as a payroll cost, up to $100,000 
annualized, on a PPP loan application 
filed by or on behalf of the partnership.’’ 
On April 28, 2020, the Department of 
the Treasury posted an interim final rule 
that provided an alternative criterion for 
calculating the maximum loan amount 
for PPP loans issued to seasonal 
employers (85 FR 23917). 
Some PPP loans were approved to 
partnerships or seasonal employers 
before the additional guidance was 
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Federal Register / Vol. 85, No. 97 / Tuesday, May 19, 2020 / Rules and Regulations 
1 SBA extended the deadline for submission of 
the initial SBA Form 1502 for such loans from May 
18, 2020 to May 22, 2020, in its interim final rule 
posted on May 8, 2020. 
2 As set forth in the interim final rule posted on 
April 14, 2020, a partner in a partnership may not 
submit a separate PPP loan application as a self- 
employed individual. Instead, the self-employment 
income of general active partners may be reported 
as a payroll cost, up to $100,000 annualized, on a 
PPP loan application filed by or on behalf of the 
partnership. 
issued and, as a result, those businesses 
may not have received PPP loans in the 
maximum amount for which they are 
eligible. This interim final rule 
authorizes all PPP lenders to increase 
existing PPP loans to partnerships or 
seasonal employers to include 
appropriate amounts to cover partner 
compensation in accordance with the 
interim final rule posted on April 14, 
2020, or to permit the seasonal 
employer to calculate its maximum loan 
amount using the alternative criterion 
posted on April 28, 2020. 
In addition, although the interim final 
rule on disbursements posted on April 
28, 2020, requires PPP loans to be 
disbursed in a single disbursement, if a 
PPP loan that is increased has already 
been disbursed, this interim final rule 
authorizes the lender to make an 
additional disbursement of the 
increased loan proceeds prior to 
submission of the initial SBA Form 
1502 that includes that loan. SBA Form 
1502 is required to be submitted 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 22, 
2020.1 
1. Loan Increases 
a. If a partnership received a PPP loan 
that did not include any compensation 
for its partners, can the loan amount be 
increased to include partner 
compensation? 
Yes. If a partnership received a PPP 
loan that only included amounts 
necessary for payroll costs of the 
partnership’s employees and other 
eligible operating expenses, but did not 
include any amount for partner 
compensation,2 the lender may 
electronically submit a request through 
SBA’s E-Tran Servicing site to increase 
the PPP loan amount to include 
appropriate partner compensation, even 
if the loan has been fully disbursed, 
provided that the lender’s first SBA 
Form 1502 report to SBA on the PPP 
loan has not been submitted. After the 
initial SBA Form 1502 report on the PPP 
loan has been submitted to SBA, or after 
the date the first SBA Form 1502 was 
required to be submitted to SBA, the 
loan cannot be increased. In no event 
can the increased loan amount exceed 
the maximum loan amount allowed 
under the PPP Program, which is $10 
million for an individual borrower or 
$20 million for a corporate group. 
Additionally, the borrower must 
provide the lender with required 
documentation to support the 
calculation of the increase. 
The interim final rule posted on April 
14, 2020, describes how partnerships, 
rather than individual partners are 
eligible for a PPP loan. The interim final 
rule further explained that the self- 
employment income of general active 
partners could be reported as a payroll 
cost, up to $100,000 annualized, on a 
PPP loan application filed by or on 
behalf of the partnership. Guidance 
describing how to calculate partnership 
PPP loan amounts and defining the self- 
employment income of partners was 
posted on April 24, 2020 (see How to 
Calculate Maximum Loan Amounts, 
Question 4 at https://www.sba.gov/sites/ 
default/files/2020-04/How-to-Calculate- 
Loan-Amounts.pdf). 
b. If a seasonal employer received a 
PPP loan before the alternative criterion 
for determining the maximum loan 
amount for seasonal employers became 
available, can the loan amount be 
increased based on a revised calculation 
using the alternative criterion? 
Yes. If a seasonal employer received 
a PPP loan before the alternative 
criterion for such employers was posted 
on April 28, 2020, and would be eligible 
for a higher maximum loan amount 
under the alternative criterion, the 
lender may electronically submit a 
request through SBA’s E-Tran Servicing 
site to increase the PPP loan amount, 
even if the loan has been fully 
disbursed, provided that the lender’s 
first SBA Form 1502 report to SBA on 
the PPP loan has not been submitted. 
After the initial SBA Form 1502 report 
has been submitted to SBA, or after the 
date the initial SBA Form 1502 report 
was required to be submitted to SBA, 
the loan cannot be increased. In no 
event can the increased loan amount 
exceed the maximum loan amount 
allowed under the PPP Program, which 
is $10 million for an individual 
borrower or $20 million for a corporate 
group. Additionally, the borrower must 
provide the lender with required 
documentation to support the 
calculation of the increase. 
2. Disbursements and 1502 Reporting on 
Increased PPP Loans 
a. If a borrower’s PPP loan has 
already been fully disbursed, can the 
lender make an additional disbursement 
for the increased loan proceeds? 
Yes. Notwithstanding the requirement 
set forth in paragraph 1.a. of the interim 
final rule on disbursements posted on 
April 28, 2020, i.e., that lenders make a 
one-time, full disbursement of the PPP 
loan within ten calendar days of loan 
approval, if a PPP loan is increased 
under paragraphs 1.a. or b. above, the 
lender may make a single additional 
disbursement of the increased loan 
proceeds prior to submission of the 
initial SBA Form 1502 report for that 
loan. 
b. How do lenders report 
disbursements on PPP loans that are 
increased and does the increase in the 
loan delay the timeframe to report the 
loan on the SBA Form 1502? 
SBA set forth in the interim final rule 
on disbursements and 1502 reporting 
posted on April 28, 2020, the process 
lenders must follow to electronically 
upload SBA Form 1502 information on 
PPP loans. The interim final rule 
provided that lenders must submit the 
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. In its interim final rule posted on 
May 8, 2020, SBA revised that date from 
May 18, 2020 to May 22, 2020. Lenders 
must comply with the initial 1502 
reporting deadline. SBA may review at 
any time an increase submitted by the 
lender to confirm that the increase was 
submitted within the required 
timeframe; increases submitted outside 
the required timeframe will not be 
forgiven and no processing fee will be 
earned on such amounts. Additionally, 
lenders are not entitled to processing 
fees on increases submitted outside of 
the required timeframe. 
3. 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 
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Federal Register / Vol. 85, No. 97 / Tuesday, May 19, 2020 / Rules and Regulations 
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 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. 2020–10658 Filed 5–18–20; 8:45 am] 
BILLING CODE P 
SMALL BUSINESS ADMINISTRATION 
13 CFR Part 120 
[Docket Number SBA–2020–0026] 
RIN 3245–AH41 
Business Loan Program Temporary 
Changes; Paycheck Protection 
Program—Requirements—Extension 
of Limited Safe Harbor With Respect to 
Certification Concerning Need for PPP 
Loan Request 
AGENCY: U.S. Small Business 
Administration. 
ACTION: Interim final rule. 
SUMMARY: On April 24, 2020, the U.S. 
Small Business Administration (SBA) 
posted an interim final rule relating to 
promissory notes, authorizations, 
affiliation, and eligibility in connection 
with the implementation of a temporary 
new program, titled the ‘‘Paycheck 
Protection Program.’’ The Paycheck 
Protection Program was established 
under the Coronavirus Aid, Relief, and 
Economic Security Act (CARES Act or 
the Act). This interim final rule revises 
the interim final rule posted on April 
24, 2020, by extending the date by 
which certain Paycheck Protection 
Program borrowers may repay their 
loans from May 7, 2020 to May 14, 2020, 
in order to avail themselves of a safe 
harbor with respect to a certification 
required by the Act, and makes other 
conforming changes. This interim final 
rule supplements SBA’s implementation 
of the Act and requests public comment. 
DATES: 
Effective date: This rule is effective 
May 19, 2020. 
Applicability date: This interim final 
rule applies to borrowers who applied 
for loans under the Paycheck Protection 
Program. 
Comment date: Comments must be 
received on or before June 18, 2020. 
ADDRESSES: You may submit comments, 
identified by number SBA–2020–0026 
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 
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