Business Loan Program Temporary Changes; Paycheck Protection Program — Eligibility of Certain Telephone Cooperatives

Record facts

Summary

An interim final rule of the U.S. Small Business Administration published in the Federal Register, Vol. 85, No. 113, June 11, 2020, under 13 CFR Parts 120 and 121, Docket Number SBA–2020–0034, RIN 3245–AH48. It supplements earlier Paycheck Protection Program interim final rules by addressing the eligibility of mutual or cooperative telephone companies described in section 501(c)(12) of the Internal Revenue Code, and requests public comment. The rule provides that such a telephone cooperative will be considered a business entity organized for profit under 13 CFR 121.105(a)(1) for PPP purposes and so is an eligible borrower if other requirements are met. It notes that a cooperative must receive at least 85 percent of its income from members to qualify for the tax exemption, and cites an earlier rule on electric cooperatives at 85 FR 29847.

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Full text

35550 
Federal Register / Vol. 85, No. 113 / Thursday, June 11, 2020 / Rules and Regulations 
each class of oil, including whether the 
estimated season average price to 
producers is likely to exceed parity. 
Based on its review, the Committee 
believes that the salable quantities and 
allotment percentages established in 
this rule will achieve the objectives 
sought. The Committee also believes 
that, should there be no volume 
regulation in effect for the upcoming 
marketing year, the Far West spearmint 
oil industry will return to the 
pronounced cyclical price patterns that 
occurred prior to the promulgation of 
the Order. As previously stated, annual 
salable quantities and allotment 
percentages have been issued for both 
classes of spearmint oil since the 
Order’s inception. The salable quantities 
and allotment percentages established 
herein are expected to facilitate the goal 
of maintaining orderly marketing 
conditions for Far West spearmint oil 
for the 2020–2021 and future marketing 
years. 
Costs to producers and handlers, large 
and small, resulting from this action are 
expected to be offset by the benefits 
derived from a more stable market and 
increased returns. The benefits of this 
rule are expected to be equally available 
to all producers and handlers regardless 
of their size. 
In accordance with the Paperwork 
Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the Order’s information 
collection requirements have been 
previously approved by OMB and 
assigned OMB No. 0581–0178, 
Vegetable and Specialty Crops. No 
changes are necessary in those 
requirements as a result of this action. 
Should any changes become necessary, 
they would be submitted to OMB for 
approval. 
This rule establishes the salable 
quantities and allotment percentages for 
Scotch spearmint oil and Native 
spearmint oil produced in the Far West 
during the 2020–2021 marketing year. 
Accordingly, this rule does not impose 
any additional reporting or 
recordkeeping requirements on either 
small or large spearmint oil producers 
or handlers. As with all Federal 
marketing order programs, reports and 
forms are periodically reviewed to 
reduce information requirements and 
duplication by industry and public- 
sector agencies. USDA has not 
identified any relevant Federal rules 
that duplicate, overlap, or conflict with 
this final rule. 
AMS is committed to complying with 
the E-Government Act, to promote the 
use of the internet and other 
information technologies to provide 
increased opportunities for citizen 
access to Government information and 
services, and for other purposes. 
A proposed rule concerning this 
action was published in the Federal 
Register on February 20, 2020 (85 FR 
9699). Copies of the proposed rule were 
also mailed or sent via facsimile to all 
Far West spearmint oil handlers. The 
proposal was made available through 
the internet by USDA and the Office of 
the Federal Register. A 60-day comment 
period ending April 20, 2020, was 
provided for interested persons to 
respond to the proposal. No comments 
were received during the comment 
period. Accordingly, no changes will be 
made to the rule as proposed. 
A small business guide on complying 
with fruit, vegetable, and specialty crop 
marketing agreements and orders may 
be viewed at: https://
www.ams.usda.gov/rules-regulations/ 
moa/small-businesses. Any questions 
about the compliance guide should be 
sent to Richard Lower at the previously 
mentioned address in the FOR FURTHER 
INFORMATION CONTACT section. 
After consideration of all relevant 
material presented, including the 
information and recommendation 
submitted by the Committee and other 
available information, it is hereby found 
that this rule will tend to effectuate the 
declared policy of the Act. 
List of Subjects in 7 CFR Part 985 
Marketing agreements, Oils and fats, 
Reporting and recordkeeping 
requirements, Spearmint oil. 
For the reasons set forth in the 
preamble, 7 CFR part 985 is amended as 
follows: 
PART 985—MARKETING ORDER 
REGULATING THE HANDLING OF 
SPEARMINT OIL PRODUCED IN THE 
FAR WEST 
■1. The authority citation for 7 CFR 
part 985 continues to read as follows: 
Authority: 7 U.S.C. 601–674. 
■2. Add § 985.235 to read as follows: 
§ 985.235
Salable quantities and allotment 
percentages—2020–2021 marketing year. 
The salable quantity and allotment 
percentage for each class of spearmint 
oil during the marketing year beginning 
on June 1, 2020, shall be as follows: 
(a) Class 1 (Scotch) oil—a salable 
quantity of 838,404 pounds and an 
allotment percentage of 38 percent. 
(b) Class 3 (Native) oil—a salable 
quantity of 1,230,531 pounds and an 
allotment percentage of 49 percent. 
Bruce Summers, 
Administrator, Agricultural Marketing 
Service. 
[FR Doc. 2020–10945 Filed 6–10–20; 8:45 am] 
BILLING CODE 3410–02–P 
SMALL BUSINESS ADMINISTRATION 
13 CFR Parts 120 and 121 
[Docket Number SBA–2020–0034] 
RIN 3245–AH48 
Business Loan Program Temporary 
Changes; Paycheck Protection 
Program—Eligibility of Certain 
Telephone Cooperatives 
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). This interim 
final rule supplements previously 
published interim final rules by 
providing guidance on additional 
eligibility requirements for certain 
telephone cooperatives, and requests 
public comment. 
DATES:
Effective date: This rule is effective 
June 8, 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 July 13, 2020. 
ADDRESSES: You may submit comments, 
identified by number SBA–2020–0034 
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 
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Federal Register / Vol. 85, No. 113 / Thursday, June 11, 2020 / Rules and Regulations 
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: 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, May 8, 2020, May 13, 
2020, May 14, 2020, May 18, 2020, May 
20, 2020, and May 22, 2020; SBA and 
Treasury posted an additional interim 
final rule on May 22, 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 additional eligibility 
requirements for certain telephone 
cooperatives, and requests public 
comment. 
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 (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. 
Among the categories of entities that 
are eligible PPP borrowers are business 
concerns and certain nonprofit 
organizations described in section 
501(c)(3) of the Internal Revenue Code 
(the Code). This interim final rule 
addresses the eligibility of mutual or 
cooperative telephone companies that 
are described in section 501(c)(12) of the 
Internal Revenue Code (telephone 
cooperatives) as PPP borrowers. Existing 
SBA regulations define ‘‘business 
concern’’ as ‘‘a business entity 
organized for profit,’’ subject to certain 
limitations. 13 CFR 121.105(a)(1). 
Generally, telephone cooperatives are 
organizations that are owned and 
controlled by members who receive 
telecommunications services from the 
cooperative. Telephone cooperatives 
periodically return any excess of net 
operating revenues over their cost of 
operations—such as through ‘‘capital 
credits’’—to their member-owners. In 
addition, telephone cooperatives 
meeting the description of section 
501(c)(12) of the Code may be exempt 
from federal income taxation under 
section 501(a) of the Code. To qualify 
for the exemption, a telephone 
cooperative must receive at least 85 
percent of its income each year from its 
members. The 85 percent member 
income test is computed annually. A 
telephone cooperative may be exempt in 
one year, lose exemption in another year 
if it does not derive at least 85 percent 
of its income from members, and 
become exempt in a third year. Because 
of their potential tax exemption under 
section 501(c)(12) of the Code, 
telephone cooperatives have faced 
uncertainty about their eligibility to 
receive PPP loans. 
The Administrator, in consultation 
with the Secretary, understands that 
telephone cooperatives are unusual in 
that they may be exempt from taxation 
or organized under state nonprofit 
statutes in certain jurisdictions, while 
they operate as businesses. For example, 
telephone cooperatives provide 
telecommunications services and 
distribute capital credits to their 
member-owners. 
On May 14, 2020, SBA posted an 
interim final rule providing that certain 
electric cooperatives, which may also be 
exempt from taxation or organized 
under state nonprofit statutes, but 
which return any excess of net operating 
revenues over their cost of operations to 
their member-owners, will be 
considered to be ‘‘a business entity 
organized for profit’’ under 13 CFR 
121.105(a)(1) for purposes of the PPP 
and therefore eligible to receive PPP 
loans, provided they meet other 
eligibility criteria. See 85 FR 29847. 
Because telephone cooperatives also 
operate as businesses, as described 
below, and to provide certainty to 
potential PPP applicants, this interim 
final rule provides that, for purposes of 
the PPP, a telephone cooperative that is 
exempt from federal income taxation 
under section 501(c)(12) of the Code 
also will be considered to be ‘‘a business 
entity organized for profit’’ under 13 
CFR 121.105(a)(1). As a result, such 
telephone cooperatives are eligible PPP 
borrowers, as long as other eligibility 
requirements are met. 
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. This rule is being issued 
to allow for immediate implementation 
of this program. Although this interim 
final rule is effective immediately, 
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Federal Register / Vol. 85, No. 113 / Thursday, June 11, 2020 / Rules and Regulations 
1 Under the alternative size standard, a business 
concern, including a telephone cooperative, can 
qualify for the PPP as a small business concern if, 
as of March 27, 2020: (1) The maximum tangible net 
worth of the business was not more than $15 
million; and (2) the average net income after 
Federal income taxes (excluding any carry-over 
losses) of the business for the two full fiscal years 
before the date of the application is not more than 
$5 million. For a telephone cooperative that does 
not have net income, the telephone cooperative’s 
capital credits distributed to its owner-members 
will be considered its net income. 
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 July 13, 2020. 
SBA will consider these comments and 
the need for making any revisions as a 
result of these comments. 
III. Paycheck Protection Program 
Additional Eligibility Criteria 
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, 85 FR 29845, 85 FR 29842, 
85 FR 29847, 85 FR 30835, 85 FR 31357, 
85 FR 33004, and 85 FR 33010), 
collectively, the PPP Interim Final 
Rules. 
1. Eligibility of Certain Telephone 
Cooperatives 
Are telephone cooperatives that are 
exempt from federal income taxation 
under section 501(c)(12) of the Internal 
Revenue Code eligible for a PPP loan? 
Yes. Telephone cooperatives provide 
telecommunications services and return 
any excess of net operating revenues 
over their cost of operations to their 
member-owners, such as through capital 
credits. Accordingly, for purposes of the 
PPP, the Administrator, in consultation 
with the Secretary, has determined that 
a telephone cooperative that is exempt 
from federal income taxation under 
section 501(c)(12) of the Internal 
Revenue Code will be considered to be 
‘‘a business entity organized for profit’’ 
for purposes of 13 CFR 121.105(a)(1). As 
a result, such entities are eligible PPP 
borrowers, as long as other eligibility 
requirements are met. To be eligible, a 
telephone cooperative must satisfy the 
employee-based size standard 
established in the CARES Act, SBA’s 
employee-based size standard 
corresponding to its primary industry, if 
higher, or both tests in SBA’s 
‘‘alternative size standard.’’ 1 The 
Administrator, in consultation with the 
Secretary, has determined that this 
treatment is appropriate to effectuate the 
purposes of the CARES Act to provide 
assistance to eligible PPP borrowers, 
including business concerns, affected by 
the COVID–19 emergency. 
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 regulatory 
flexibility analysis, when among other 
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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. 2020–12623 Filed 6–8–20; 2:00 pm] 
BILLING CODE 8026–03–P 
DEPARTMENT OF TRANSPORTATION 
Federal Aviation Administration 
14 CFR Part 39 
[Docket No. FAA–2020–0546; Project 
Identifier 2020–CE–001–AD; Amendment 
39–21137; AD 2020–03–50] 
RIN 2120–AA64 
Airworthiness Directives; Cirrus 
Design Corporation Airplanes 
AGENCY: Federal Aviation 
Administration (FAA), DOT. 
ACTION: Final rule; request for 
comments. 
SUMMARY: The FAA is adopting a new 
airworthiness directive (AD) for certain 
Cirrus Design Corporation (Cirrus) 
Model SF–50 airplanes. This AD was 
sent previously as an emergency AD to 
all known U.S. owners and operators of 
these airplanes. This AD requires 
disconnecting and removing the headset 
amplifier and microphone interface 
circuit card assemblies for the 3.5 mm 
audio and microphone jacks. This AD 
was prompted by a cabin fire incident 
that occurred on a Cirrus Model SF50 
airplane during ground operations 
where the operator observed smoke 
exiting from behind the right sidewall 
interior panel. The FAA is issuing this 
AD to address the unsafe condition on 
these products. 
DATES: This AD is effective June 11, 
2020 to all persons except those persons 
to whom it was made immediately 
effective by Emergency AD 2020–03–50, 
issued on February 14, 2020, which 
contained the requirements of this 
amendment. 
The Director of the Federal Register 
approved the incorporation by reference 
of a certain publication identified in this 
AD as of June 11, 2020. 
The FAA must receive comments on 
this AD by July 27, 2020. 
ADDRESSES: You may send comments, 
using the procedures found in 14 CFR 
11.43 and 11.45, by any of the following 
methods: 
• Federal eRulemaking Portal: Go to 
https://www.regulations.gov. Follow the 
instructions for submitting comments. 
• Fax: 202–493–2251. 
• Mail: U.S. Department of 
Transportation, Docket Operations, M– 
30, West Building Ground Floor, Room 
W12–140, 1200 New Jersey Avenue SE, 
Washington, DC 20590. 
• Hand Delivery: Deliver to Mail 
address above between 9 a.m. and 5 
p.m., Monday through Friday, except 
Federal holidays. 
For service information identified in 
this final rule, contact Cirrus Design 
Corporation; 4515 Taylor Circle Duluth, 
MN 55811; phone: (800) 279–4322; 
email: info@cirrusaircraft.com; internet: 
https://cirrusaircraft.com. You may 
view the referenced service information 
at the FAA, Airworthiness Products 
Section, Operational Safety Branch, 901 
Locust, Kansas City, Missouri 64106. 
For information on the availability of 
this material at the FAA, call (816) 329– 
4148. It is also available on the internet 
at https://www.regulations.gov by 
searching for and locating Docket No. 
FAA–2020–0546. 
Examining the AD Docket 
You may examine the AD docket on 
the internet at https://
www.regulations.gov by searching for 
and locating Docket No. FAA–2020– 
0546; or in person at Docket Operations 
between 9 a.m. and 5 p.m., Monday 
through Friday, except Federal holidays. 
The AD docket contains this final rule, 
the regulatory evaluation, any 
comments received, and other 
information. The street address for 
Docket Operations is listed above. 
Comments will be available in the AD 
docket shortly after receipt. 
FOR FURTHER INFORMATION CONTACT: 
Joseph Dubusky, Aerospace Engineer, 
Chicago ACO Branch, FAA, 2300 East 
Devon Avenue, Room 107, Des Plaines, 
Illinois 60018; phone: 847–294–7543; 
fax: 847–294–7834; email: 
joseph.dubusky@faa.gov. 
SUPPLEMENTARY INFORMATION: 
Discussion 
On February 14, 2020, the FAA issued 
Emergency AD 2020–03–05, which 
requires disconnecting and removing 
the headset amplifier and microphone 
interface circuit card assemblies. This 
emergency AD was sent previously to 
all known U.S. owners and operators of 
these airplanes. This action was 
prompted by a cabin fire incident that 
occurred on a Cirrus Model SF50 
airplane during ground operations. The 
operator observed smoke exiting from 
behind the right sidewall interior panel 
located behind crew seat 2 and forward 
of passenger seat 5. The investigation 
into the incident determined the 
probable root cause was a malfunction 
of the headset amplifier (part number 
(P/N) 38849–001) and the microphone 
interface (P/N 35809–001) circuit card 
assemblies for the 3.5 millimeter (mm) 
audio and microphone jacks. This 
malfunction can result in an electrical 
short and subsequent uncontained cabin 
fire without activating circuit 
protection. 
This condition, if not addressed, 
could lead to an uncontained cabin fire, 
resulting in possible occupant injury or 
loss of airplane control. 
Related Service Information Under 1 
CFR Part 51 
The FAA reviewed Cirrus Alert 
Service Bulletin Number SBA5X–23–03, 
dated February 7, 2020 (SBA5X–23–03). 
The service information contains 
instructions to disconnect and remove 
the headset amplifier and microphone 
interface circuit card assemblies for the 
3.5 mm audio and microphone jacks. 
This service information is reasonably 
available because the interested parties 
have access to it through their normal 
course of business or by the means 
identified in the ADDRESSES section. 
FAA’s Determination 
The FAA is issuing this AD because 
it evaluated all the relevant information 
and determined the unsafe condition 
described previously is likely to exist or 
develop in other products of the same 
type design. 
AD Requirements 
This AD requires accomplishing the 
actions specified in SBA5X–23–03 as 
described previously. 
FAA’s Justification and Determination 
of the Effective Date 
An unsafe condition exists that 
required the immediate adoption of 
Emergency AD 2020–03–50, issued on 
February 14, 2020, to all known U.S. 
owners and operators of these airplanes. 
The FAA found that the risk to the 
flying public justified waiving notice 
and comment prior to adoption of this 
rule because immediate corrective 
action was necessary to prevent an 
electrical short and subsequent 
uncontained cabin fire, which could 
result in occupant injury or loss of 
airplane control. These conditions still 
exist and the AD is hereby published in 
the Federal Register as an amendment 
to section 39.13 of the Federal Aviation 
Regulations (14 CFR 39.13) to make it 
effective to all persons. Therefore, the 
FAA finds good cause that notice and 
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2020-06-11_2020-12623.pdf

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Our copy

2020-06-11_2020-12623.pdf

Original

www.federalregister.gov