Business Loan Program Temporary Changes; Paycheck Protection Program — Revisions to the Third and Sixth Interim Final Rules

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Summary

An interim final rule issued by the U.S. Small Business Administration, published in the Federal Register on June 19, 2020 (Vol. 85, No. 119), under 13 CFR Part 120, Docket No. SBA–2020–0037, RIN 3245–AH51. It revises the Third Interim Final Rule (85 FR 21747) and the Sixth Interim Final Rule (85 FR 26321) to conform them to the Paycheck Protection Program Flexibility Act of 2020 (Pub. L. 116–142), signed June 5, 2020. The rule extends the covered period under section 1102 of the CARES Act to December 31, 2020, sets a minimum maturity of five years for PPP loans made on or after June 5, 2020, and reduces from 75 percent to 60 percent the share of loan proceeds that must be used for payroll costs. It also extends the section 1106 covered period from eight to 24 weeks and counts payroll costs up to $100,000 of annualized pay per employee. Comments were due on or before July 20, 2020.

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This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
Rules and Regulations
Federal Register
36997 
Vol. 85, No. 119 
Friday, June 19, 2020 
SMALL BUSINESS ADMINISTRATION 
13 CFR Part 120 
[Docket No. SBA–2020–0037] 
RIN 3245–AH51 
Business Loan Program Temporary 
Changes; Paycheck Protection 
Program—Revisions to the Third and 
Sixth Interim Final Rules 
AGENCY: U.S. Small Business 
Administration. 
ACTION: Interim final rule. 
SUMMARY: On April 2, 2020, the U.S. 
Small Business Administration (SBA) 
posted on its website an interim final 
rule relating to the implementation of 
sections 1102 and 1106 of the 
Coronavirus Aid, Relief, and Economic 
Security Act (CARES Act or the Act) 
(published in the Federal Register on 
April 15, 2020). Section 1102 of the Act 
temporarily adds a new product, titled 
the ‘‘Paycheck Protection Program,’’ to 
SBA’s 7(a) Loan Program. Subsequently, 
SBA and Treasury issued additional 
interim final rules implementing the 
Paycheck Protection Program. On June 
5, 2020, the Paycheck Protection 
Program Flexibility Act of 2020 
(Flexibility Act) was signed into law, 
amending the CARES Act. This interim 
final rule revises interim final rules 
posted on SBA’s website on April 14, 
2020 (published in the Federal Register 
on April 20, 2020) and April 28, 2020 
(published in the Federal Register on 
May 4, 2020), by changing provisions to 
conform to the Flexibility Act. Several 
of these amendments are retroactive to 
the date of enactment of the CARES Act, 
as required by section 3(d) of the 
Flexibility Act. 
DATES: 
Effective dates: The provisions in this 
interim final rule related to loan 
forgiveness for PPP loans are effective 
March 27, 2020. The provision in this 
interim final rule relating to the 
maturity date of PPP loans is effective 
June 5, 2020. The remaining provisions 
in this interim final rule are effective 
June 16, 2020. 
Comment date: Comments must be 
received on or before July 20, 2020. 
ADDRESSES: You may submit comments, 
identified by number SBA–2020–0037, 
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, 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, have been 
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, have been 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 PPP. On 
June 5, 2020, the President signed the 
Paycheck Protection Program Flexibility 
Act of 2020 (Flexibility Act) (Pub. L. 
116–142), which changes key provisions 
of the Paycheck Protection Program, 
including provisions relating to the 
maturity of PPP loans, the deferral of 
PPP loan payments, and the forgiveness 
of PPP loans. Section 3(d) of the 
Flexibility Act provides that the 
amendments relating to PPP loan 
forgiveness and extension of the deferral 
period for PPP loans shall be effective 
as if included in the CARES Act, which 
means that they are retroactive to March 
27, 2020. Section 2 of the Flexibility Act 
provides that the amendment relating to 
the extension of the maturity date for 
PPP loans shall take effect on the date 
of enactment (June 5, 2020). Under the 
Flexibility Act, the extension of the 
maturity date for PPP loans is applicable 
to PPP loans made on or after that date, 
and lenders and borrowers may 
mutually agree to modify PPP loans 
made before such date to reflect the 
longer maturity. 
II. Comments and Retroactive/ 
Immediate Effective Date 
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 
Act without regard to notice 
requirements. In addition, SBA has 
determined that there is good cause for 
dispensing with advance public notice 
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1 See https://www.sba.gov/document/support-- 
faq-lenders-borrowers. 
2 See https://www.sba.gov/funding-programs/ 
loans/coronavirus-relief-options/paycheck- 
protection-program. 
and comment on the grounds that it 
would be contrary to the public interest. 
Specifically, advance public notice and 
comment would defeat the purpose of 
this interim final rule given that SBA’s 
authority to guarantee PPP loans expires 
on June 30, 2020, and that many PPP 
borrowers can now apply for loan 
forgiveness following the end of their 
eight-week covered period. Providing 
borrowers and lenders with certainty on 
both loan requirements and loan 
forgiveness requirements following the 
enactment of the Flexibility Act will 
enhance the ability of lenders to make 
loans and process loan forgiveness 
applications, particularly in light of the 
fact that most of the Flexibility Act’s 
provisions are retroactive to March 27, 
2020. Specifically, small businesses that 
have yet to apply for and receive a PPP 
loan need to be informed of the terms 
of PPP loans as soon as possible, 
because the last day on which a lender 
can obtain an SBA loan number for a 
PPP loan is June 30, 2020. Borrowers 
who already have applied for and 
received a PPP loan need certainty 
regarding how loan proceeds must be 
used during the covered period, as 
amended by the Flexibility Act, so that 
they can maximize the amount of loan 
forgiveness. These same reasons provide 
good cause for SBA to dispense with the 
30-day delayed effective date provided 
in the Administrative Procedure Act. 
Although this interim final rule is 
effective on or before date of filing, 
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 20, 2020. 
The SBA will consider these comments, 
comments received on the interim final 
rules amended by this interim final rule, 
which were posted on April 14 and 
April 28, 2020 (and published in the 
Federal Register on April 20, 2020 and 
May 4, 2020, respectively), and the need 
for making any revisions as a result of 
these comments. 
III. Paycheck Protection Program— 
Revisions to Third and Sixth Interim 
Final Rules 
Overview 
The CARES Act was enacted to 
provide immediate assistance to 
individuals, families, and businesses 
affected by the COVID–19 emergency. 
Among the provisions contained in the 
CARES Act are provisions authorizing 
SBA to temporarily guarantee loans 
under a new 7(a) loan program titled the 
‘‘Paycheck Protection Program.’’ Loans 
guaranteed under the Paycheck 
Protection Program (PPP) will be 100 
percent guaranteed by SBA, and the full 
principal amount of the loans may 
qualify for loan forgiveness. The 
Flexibility Act amends the CARES Act, 
including its provisions relating to loan 
terms and loan forgiveness. The purpose 
of this interim final rule is to update the 
Interim Final Rule on Additional 
Eligibility Criteria and Requirements for 
Certain Pledges of Loans (Third Interim 
Final Rule), posted on SBA’s website on 
April 14, 2020 and published in the 
Federal Register on April 20, 2020 (85 
FR 21747), and the Interim Final Rule 
on Disbursements (Sixth Interim Final 
Rule), posted on SBA’s website on April 
28, 2020 and published in the Federal 
Register on May 4, 2020 (85 FR 26321), 
in light of the amendments under the 
Flexibility Act. The Third Interim Final 
Rule and the Sixth Interim Final Rule, 
each as amended by this interim final 
rule, should be interpreted consistent 
with the frequently asked questions 
(FAQs) regarding the PPP that are 
posted on SBA’s website 1 and the other 
interim final rules issued regarding the 
PPP.2 
1. Changes to the Third Interim Final 
Rule 
a. Use of PPP Loan Proceeds 
Under section 1102 of the CARES Act, 
certain provisions regarding the 
issuance and use of PPP loans are 
limited to the ‘‘covered period.’’ 
‘‘Covered period,’’ as that term is used 
in section 1102 of the CARES Act, was 
originally defined as the period from 
February 15, 2020, to June 30, 2020. 
However, section 3(a) of the Flexibility 
Act extended the ‘‘covered period’’ as 
defined in section 1102 until December 
31, 2020. Therefore, Part III.1.d.(iii.) of 
the Third Interim Final Rule (85 FR 
21747, 21749) is revised by striking 
‘‘during the eight-week period following 
the first disbursement of the loan (the 
‘‘covered period’’)’’ and ‘‘during the 
covered period’’. 
Section 2(a) of the Flexibility Act 
provides a minimum maturity of five 
years for all PPP loans made on or after 
the date of enactment of the Flexibility 
Act (June 5, 2020), and permits lenders 
and borrowers to extend the maturity 
date of earlier PPP loans by mutual 
agreement. Therefore, Part III.1.d.v. of 
the Third Interim Final Rule (85 FR 
21747, 21749) is revised by striking 
‘‘PPP’s maturity of two years’’ and 
replacing it with ‘‘PPP’s maturity of two 
years for PPP loans made before June 5, 
2020 unless the borrower and lender 
mutually agree to extend the maturity of 
such loans to five years, or PPP’s 
maturity of five years for PPP loans 
made on or after June 5’’. 
Section 3(b) of the Flexibility Act 
amended the requirements regarding 
forgiveness of PPP loans to reduce, from 
75 percent to 60 percent, the portion of 
PPP loan proceeds that must be used for 
payroll costs for the full amount of the 
PPP loan to be eligible for forgiveness. 
Consistent with this change, SBA’s 
interim final rule posted on June 11, 
2020, decreased from 75 percent to 60 
percent the portion of loan proceeds 
that must be used for payroll costs. 
Therefore, Part III.1.e. of the Third 
Interim Final Rule (85 FR 21747, 21750) 
is revised to read as follows: 
e. Are there any other restrictions on how I 
can use PPP loan proceeds? 
Yes. At least 60 percent of the PPP loan 
proceeds shall be used for payroll costs. For 
purposes of determining the percentage of 
use of proceeds for payroll costs (but not for 
forgiveness purposes), the amount of any 
refinanced EIDL will be included. The 
rationale for this 60 percent floor is 
contained in the First PPP Interim Final Rule 
and SBA’s interim final rule posted on June 
11, 2020. 
b. Loan Forgiveness 
Under section 1106 of the CARES Act, 
certain provisions regarding the 
forgiveness of PPP loans are limited to 
the ‘‘covered period.’’ ‘‘Covered 
period,’’ as that term is used in section 
1106 of the CARES Act, was originally 
defined as the eight-week period 
beginning on the date of the origination 
of a covered loan. However, section 3(b) 
of the Flexibility Act extended the 
length of the covered period as defined 
in section 1106 of the CARES Act from 
eight to 24 weeks, while allowing 
borrowers that received PPP loans 
before June 5, 2020 to elect to use the 
original eight-week covered period. As 
noted above, section 3(b) of the 
Flexibility Act also amended the 
requirements regarding forgiveness of 
PPP loans to reduce, from 75 percent to 
60 percent, the amount of PPP loan 
proceeds that must be used for payroll 
costs for the full amount of the PPP loan 
to be eligible for forgiveness. Therefore, 
Part III.1.f. of the Third Interim Final 
Rule (85 FR 21747, 21750) is revised to 
read as follows: 
f. What amounts shall be eligible for 
forgiveness? 
The amount of loan forgiveness can be up 
to the full principal amount of the loan plus 
accrued interest. The actual amount of loan 
forgiveness will depend, in part, on the total 
amount spent over the 24-week period 
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3 If your PPP loan was made before June 5, 2020, 
you may elect to have your covered period be the 
eight-week period beginning on the date your PPP 
loan was disbursed. In addition, under section 
3(b)(1) of the Paycheck Protection Program 
Flexibility Act of 2020 (Flexibility Act), the covered 
period of any borrower will end no later than 
December 31, 2020. 
4 Given the 2.5 multiplier in the calculation of 
maximum PPP loan amount in SBA Form 2483, this 
per-individual maximum would only be reached if 
the borrower had reduced its FTEs but was eligible 
for an exemption (safe harbor) from the resulting 
reduction in forgiveness. 
beginning on the date your PPP loan is 
disbursed 3 (‘‘covered period’’) on: 
i. Payroll costs including salary, wages, 
and tips, up to $100,000 of annualized pay 
per employee (for 24 weeks, a maximum of 
$46,154 per individual,4 or for eight weeks, 
a maximum of $15,385 per individual), as 
well as covered benefits for employees (but 
not owners), including health care expenses, 
retirement contributions, and state taxes 
imposed on employee payroll paid by the 
employer (such as unemployment insurance 
premiums); 
ii. owner compensation replacement, 
calculated based on 2019 net profit as 
described in Paragraph 1.b. above, with 
forgiveness of such amounts limited to eight 
weeks’ worth (8/52) of 2019 net profit (up to 
$15,385) for an eight-week covered period or 
2.5 months’ worth (2.5/12) of 2019 net profit 
(up to $20,833) for a 24-week covered period, 
but excluding any qualified sick leave 
equivalent amount for which a credit is 
claimed under section 7002 of the Families 
First Coronavirus Response Act (FFCRA) 
(Pub. L. 116–127) or qualified family leave 
equivalent amount for which a credit is 
claimed under section 7004 of FFCRA; 
iii. payments of interest on mortgage 
obligations on real or personal property 
incurred before February 15, 2020, to the 
extent they are deductible on Form 1040 
Schedule C (business mortgage payments); 
iv. rent payments on lease agreements in 
force before February 15, 2020, to the extent 
they are deductible on Form 1040 Schedule 
C (business rent payments); and 
v. utility payments under service 
agreements dated before February 15, 2020 to 
the extent they are deductible on Form 1040 
Schedule C (business utility payments). 
The Administrator, in consultation 
with the Secretary, has determined that 
it is appropriate to limit the forgiveness 
of owner compensation replacement for 
individuals with self-employment 
income who file a Schedule C or F to 
either eight weeks’ worth (8/52) of 2019 
net profit (up to $15,385) for an eight- 
week covered period or 2.5 months’ 
worth (2.5/12) of 2019 net profit (up to 
$20,833) for a 24-week covered period 
per owner in total across all businesses. 
This approach is consistent with the 
structure of the CARES Act and its 
overarching focus on keeping workers 
paid, and will prevent windfalls that 
Congress did not intend. Specifically, 
Congress determined that the maximum 
loan amount is generally based on 2.5 
months of the borrower’s average total 
monthly payroll costs during the one- 
year period preceding the loan. 15 
U.S.C. 636(a)(36)(E). For example, a 
borrower with one other employee 
would receive a maximum loan amount 
equal to five months of payroll (2.5 
months of payroll for the owner plus 2.5 
months of payroll for the employee). If 
the owner laid off the employee and 
availed itself of the safe harbor in the 
Flexibility Act from reductions in loan 
forgiveness for a borrower that is unable 
to return to the same level of business 
activity the business was operating at 
before February 15, 2020, the owner 
could treat the entire amount of the PPP 
loan as payroll, with the entire loan 
being forgiven. This would not only 
result in a windfall for the owner, by 
providing the owner with five months of 
payroll instead of 2.5 months, but also 
defeat the purpose of the CARES Act of 
protecting the paycheck of the 
employee. For borrowers with no 
employees, this limitation will have no 
effect, because the maximum loan 
amount for such borrowers already 
includes only 2.5 months of their 
payroll. Finally, at least 60 percent of 
the amount forgiven must be 
attributable to payroll costs, for the 
reasons specified in the First PPP 
Interim Final Rule and SBA’s interim 
final rule posted on June 11, 2020. 
In addition, Part III.1.g. of the Third 
Interim Final Rule (85 FR 21747, 21750) 
is revised by striking ‘‘eight-week’’. 
2. Changes to the Sixth Interim Final 
Rule 
As described above, section 3(b) of the 
Flexibility Act extended the length of 
the covered period as defined in section 
1106 of the CARES Act from eight to 24 
weeks, while allowing borrowers that 
received PPP loans before June 5, 2020 
to elect to use the original eight-week 
covered period. Therefore, Part III.1.a. of 
the Sixth Interim Final Rule (85 FR 
26321, 26322–23) is revised by striking 
both references to ‘‘eight-week covered 
period’’ and replacing them with 
‘‘covered period’’. 
3. Additional Information 
SBA may provide further guidance, if 
needed, through SBA notices which 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. 
This rule is necessary to implement 
Sections 1102 and 1106 of the CARES 
Act and the Flexibility Act in order to 
provide economic relief to small 
businesses nationwide adversely 
impacted under the COVID–19 
Emergency Declaration. We anticipate 
that this rule will result in substantial 
benefits to small businesses, their 
employees, and the communities they 
serve. However, we lack data to estimate 
the effects of this rule. 
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 effect but does have 
a limited retroactive effect consistent 
with section 3(d) of the Flexibility Act. 
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 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 
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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. Small Business 
Administration’s 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. 
Authority: 15 U.S.C. 636(a)(36); Paycheck 
Protection Program Flexibility Act of 2020, 
Pub. L. 116–142; Coronavirus Aid, Relief, 
and Economic Security Act, Pub. L. 116–136, 
Section 1114. 
Jovita Carranza, 
Administrator. 
[FR Doc. 2020–13293 Filed 6–16–20; 4:15 pm] 
BILLING CODE P 
DEPARTMENT OF TRANSPORTATION 
Federal Aviation Administration 
14 CFR Part 39 
[Docket No. FAA–2019–0683; Project 
Identifier AD–2020–00149–E; Amendment 
39–21149; AD 2020–13–04] 
RIN 2120–AA64 
Airworthiness Directives; General 
Electric Company Turbofan Engines 
AGENCY: Federal Aviation 
Administration (FAA), DOT. 
ACTION: Final rule. 
SUMMARY: The FAA is superseding 
Airworthiness Directive (AD) 2017–09– 
06 for all General Electric Company (GE) 
GEnx-1B and GEnx-2B model turbofan 
engines. AD 2017–09–06 required 
updating electronic engine control (EEC) 
full authority digital electronic control 
(FADEC) software on GEnx-1B and 
GEnx-2B turbofan engines and replacing 
a certain fan hub frame assembly part 
installed on GEnx-2B turbofan engines. 
This AD requires updating EEC software 
on GEnx-1B and GEnx-2B engines and 
replacing a certain fan hub frame 
assembly part installed on GEnx-2B 
engines. This AD was prompted by the 
development of a design change by GE 
to remove the unsafe condition. The 
FAA is issuing this AD to address the 
unsafe condition on these products. 
DATES: This AD is effective July 24, 
2020. 
ADDRESSES: For service information 
identified in this final rule, contact 
General Electric Company, GE Aviation, 
Room 285, 1 Neumann Way, Cincinnati, 
OH 45215; phone: 513–552–3272; email: 
geae.aoc@ge.com. You may view this 
service information at the FAA, 
Airworthiness Products Section, 
Operational Safety Branch, 1200 District 
Avenue, Burlington, MA 01803. For 
information on the availability of this 
material at the FAA, call 781–238–7759. 
It is also available on the internet at 
https://www.regulations.gov by 
searching for and locating Docket No. 
FAA–2019–0683. 
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–2019– 
0683; 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 address for Docket 
Operations is U.S. Department of 
Transportation, Docket Operations, M– 
30, West Building Ground Floor, Room 
W12–140, 1200 New Jersey Avenue SE, 
Washington, DC 20590. 
FOR FURTHER INFORMATION CONTACT: 
Mehdi Lamnyi, Aerospace Engineer, 
ECO Branch, FAA, 1200 District 
Avenue, Burlington, MA 01803; phone: 
(781) 238–7743; fax: (781) 238–7199; 
email: Mehdi.Lamnyi@faa.gov. 
SUPPLEMENTARY INFORMATION: 
Discussion 
The FAA issued a notice of proposed 
rulemaking (NPRM) to amend 14 CFR 
part 39 to supersede AD 2017–09–06, 
Amendment 39–18868 (82 FR 21111, 
May 5, 2017), (‘‘AD 2017–09–06’’). AD 
2017–09–06 applied to all GE GEnx-1B 
and GEnx-2B model turbofan engines. 
The NPRM published in the Federal 
Register on November 19, 2019 (84 FR 
63820). The NPRM was prompted by the 
development of a design change by GE 
to remove the unsafe condition. The 
NPRM proposed to require updating 
EEC FADEC software on GEnx-1B and 
GEnx-2B model turbofan engines and 
replacing a certain fan hub frame 
assembly part installed on GEnx-2B 
model turbofan engines. The FAA is 
issuing this AD to address the unsafe 
condition on these products. 
Comments 
The FAA gave the public the 
opportunity to participate in developing 
this final rule. The following presents 
the comments received on the NPRM 
and the FAA’s response to each 
comment. 
Request To Clarify Compliance Time 
The Air Line Pilots Association, 
International (ALPA), commented that it 
is unclear why the compliance time to 
remove the affected fan hub stator 
assembly booster outlet guide vanes 
(BOGV) of ‘‘before further flight,’’ would 
occur after an independent engine shop 
visit. ALPA suggested either removal or 
clarification of the ‘‘before further 
flight’’ compliance time requirement. 
This AD supersedes AD 2017–09–06 
(82 FR 21111, May 5, 2017), which 
specified removal of certain fan hub 
stator assembly BOGV at the next engine 
shop visit after its effective date (June 9, 
2017). This AD retains the requirement 
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