Business Loan Program Temporary Changes; Paycheck Protection Program — Additional Eligibility Revisions to First Interim Final Rule

Record facts

Summary

An interim final rule issued by the U.S. Small Business Administration making additional eligibility revisions to the First Interim Final Rule for the Paycheck Protection Program, published in the Federal Register on June 26, 2020 (Vol. 85, No. 124), under 13 CFR Part 120, Docket No. SBA–2020–0039, RIN 3245–AH53. Its provisions are effective June 24, 2020 and comments were due on or before July 27, 2020. The rule further amends the First Interim Final Rule (85 FR 20811), as amended by the rule published June 18, 2020 (85 FR 36717), in its treatment of applicants with criminal histories. It limits the bar for pending charges to felony offenses, and limits the probation and parole bar to terms commenced within the last five years for a felony involving fraud, bribery, embezzlement or a false statement in a loan application, or within the last year for other felonies.

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38301 
Federal Register / Vol. 85, No. 124 / Friday, June 26, 2020 / Rules and Regulations 
5 12 U.S.C. 5512(b)(1). The relevant provisions of 
Regulation Z form part of Federal consumer 
financial law. 12 U.S.C. 5481(12)(O), (14). 
6 15 U.S.C. 1640(f). 
7 5 U.S.C. 553(d). 
8 5 U.S.C. 553(b). 
9 5 U.S.C. 603(a), 604(a). 
10 44 U.S.C. 3501 et seq. 
11 5 U.S.C. 801 et seq. 
the applicant’s or co-applicant’s 
ethnicity, race, sex, and age as ‘‘not 
applicable’’ if the applicant or co- 
applicant is not a natural person. For 
these reasons, the Bureau will not count 
first-lien originations reported in HMDA 
data for which both the applicant’s and 
co-applicant’s ethnicity, race, sex, and 
age all are reported as follows: (1) The 
applicant’s ethnicity is reported as ‘‘Not 
applicable’’ (HMDA Code 4); (2) the 
applicant’s race is reported as ‘‘Not 
applicable’’ (HMDA Code 7); (3) the 
applicant’s sex is reported as ‘‘Not 
applicable’’ (HMDA Code 4); (4) the 
applicant’s age is reported as ‘‘Not 
applicable’’ (HMDA Code 8888); (5) the 
co-applicant’s ethnicity is reported as 
‘‘Not applicable’’ (HMDA Code 4) or 
‘‘No co-applicant’’ (HMDA Code 5); (6) 
the co-applicant’s race is reported as 
‘‘Not applicable’’ (HMDA Code 7) or 
‘‘No co-applicant’’ (HMDA Code 8); (7) 
the co-applicant’s sex is reported as 
‘‘Not applicable’’ (HMDA Code 4) or 
‘‘No co-applicant’’ (HMDA Code 5); and 
(8) the co-applicant’s age is reported as 
‘‘Not applicable’’ (HMDA Code 8888) or 
‘‘No co-applicant’’ (HMDA Code 9999). 
The underserved counties list, using 
the HMDA data described above, can be 
found on the Bureau’s public website at 
https://www.consumerfinance.gov/ 
policy-compliance/guidance/mortgage- 
resources/rural-and-underserved- 
counties-list/, where, consistent with 
past practice, the list is made available 
along with historical lists. 
C. Legal Authority 
The Bureau is issuing this interpretive 
rule based on its authority to interpret 
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 Federal 
consumer financial laws.5 
By operation of TILA section 130(f), 
no provision of TILA sections 130, 
108(b), 108(c), 108(e), or 112 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, the interpretive rule is 
amended, rescinded, or determined by 
judicial or other authority to be invalid 
for any reason.6 
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.7 
Therefore, this rule is effective on June 
26, 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.8 Because 
no notice of proposed rulemaking is 
required, the Regulatory Flexibility Act 
does not require an initial or final 
regulatory flexibility analysis.9 
The Bureau has determined that this 
interpretive rule does not impose any 
new requirements or revise any existing 
recordkeeping, reporting, or disclosure 
requirements on covered entities or 
members of the public that would be 
collections of information requiring 
approval by the Office of Management 
and Budget under the Paperwork 
Reduction Act.10 
IV. Congressional Review Act 
Pursuant to the Congressional Review 
Act,11 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: June 23, 2020. 
Laura Galban, 
Federal Register Liaison, Bureau of Consumer 
Financial Protection. 
[FR Doc. 2020–13801 Filed 6–25–20; 8:45 am] 
BILLING CODE 4810–AM–P 
SMALL BUSINESS ADMINISTRATION 
13 CFR Part 120 
[Docket No. SBA–2020–0039] 
RIN 3245–AH53 
Business Loan Program Temporary 
Changes; Paycheck Protection 
Program—Additional Eligibility 
Revisions to First Interim Final Rule 
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 
the U.S. Small Business 
Administration’s (SBA’s) 7(a) Loan 
Program. Subsequently, SBA issued a 
number of interim final rules 
implementing the Paycheck Protection 
Program. On June 12, 2020, SBA posted 
on its website an interim final rule 
revising the interim final rule published 
in the Federal Register on April 15, 
2020 by changing the eligibility 
requirement related to felony 
convictions of applicants or owners of 
the applicant. This interim final rule 
further revises SBA’s interim final rule 
published in the Federal Register on 
April 15, 2020, by further changing that 
eligibility requirement. 
DATES: 
Effective date: The provisions in this 
interim final rule are effective June 24, 
2020. 
Comment date: Comments must be 
received on or before July 27, 2020. 
ADDRESSES: You may submit comments, 
identified by number SBA–2020–0039, 
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. 
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Federal Register / Vol. 85, No. 124 / Friday, June 26, 2020 / Rules and Regulations 
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. 
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 changed provisions of 
the PPP relating to the maturity of PPP 
loans, the deferral of PPP loan 
payments, and the forgiveness of PPP 
loans. 
II. Comments and 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 
and comment on the grounds that 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. These 
same reasons provide good cause for 
SBA to dispense with the 30-day 
delayed effective date provided in the 
Administrative Procedure Act (APA). 
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 27, 2020. 
The SBA will consider these comments, 
comments received on the interim final 
rule posted on SBA’s website April 2, 
2020 (the First Interim Final Rule) and 
published in the Federal Register on 
April 15, 2020, comments received on 
the interim final rule posted on SBA’s 
website June 12, 2020 and published in 
the Federal Register on June 18, 2010, 
and the need for making any revisions 
as a result of these comments. 
III. Paycheck Protection Program— 
Additional Eligibility Revisions to First 
Interim Final Rule (85 FR 20811) 
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 
purpose of this interim final rule is to 
make further changes to the First 
Interim Final Rule, posted on SBA’s 
website on April 2, 2020, and published 
in the Federal Register on April 15, 
2020 (85 FR 20811), as amended by the 
interim final rule posted on SBA’s 
website on June 12, 2020 and published 
in the Federal Register on June 18, 2020 
(85 FR 36717). The First Interim Final 
Rule, as amended, 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 First Interim Final 
Rule 
Eligibility Requirements 
The First Interim Final Rule provided, 
among other things, that a PPP loan will 
not be approved if an owner of 20 
percent or more of the equity of the 
applicant has been convicted of a felony 
within the last five years. On June 12, 
2020, the First Interim Final Rule was 
amended after the Administrator, in 
consultation with the Secretary of the 
Treasury (the Secretary), determined 
that a shorter timeframe for felonies that 
do not involve fraud, bribery, 
embezzlement, or a false statement in a 
loan application or an application for 
federal financial assistance is more 
consistent with Congressional intent to 
provide relief to small businesses and 
also promotes the important policies 
underlying the First Step Act of 2018 
(Pub. L. 115–391). 
Upon further consideration, and in 
consultation with the Secretary, the 
Administrator has determined that two 
additional modifications to the First 
Interim Final Rule are appropriate to 
ensure a consistent approach to 
applicants with criminal histories. First, 
the First Interim Final Rule provided 
that an applicant is ineligible for a PPP 
loan if an owner of 20 percent or more 
of the equity of the applicant is 
presently subject to an indictment, 
criminal information, arraignment, or 
other means by which formal criminal 
charges are brought in any jurisdiction. 
The Administrator has determined that 
this restriction should be limited to 
pending criminal charges for felony 
offenses, which aligns with the 
Administrator’s prior determination that 
only felony convictions (but not 
convictions for other types of offenses) 
will limit an applicant’s eligibility for 
the PPP, subject to the time periods 
specified above. Second, the First 
Interim Final Rule provided that an 
applicant was ineligible for a PPP loan 
if an owner of 20 percent or more of the 
equity of the applicant is on probation 
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Federal Register / Vol. 85, No. 124 / Friday, June 26, 2020 / Rules and Regulations 
or on parole. The Administrator has 
determined that this restriction should 
be limited to individuals whose 
probation or parole commenced within 
the time periods specified above—i.e., 
within the last five years for any felony 
involving fraud, bribery, embezzlement, 
or a false statement in a loan application 
or an application for federal financial 
assistance, and within the last one year 
for other felonies. Applying these time 
limitations to the probation and parole 
restriction aligns with the 
Administrator’s prior determination to 
apply the identical time limitations to 
felony convictions. Moreover, aligning 
the time limitations applicable to these 
restrictions is consistent with 
Congressional intent to provide relief to 
small businesses and also promotes the 
important policies underlying the First 
Step Act of 2018 (Pub. L. 115–391). This 
amendment does not affect the rule 
regarding applicants that are presently 
suspended, debarred, or proposed for 
debarment, which remains effective. 
Therefore, Part III.2.b.iii. of the First 
Interim Final Rule (85 FR 20811, 20812) 
is revised to read as follows: 
b. Could I be ineligible even if I meet 
the eligibility requirements in (a) above? 
You are ineligible for a PPP loan if, for 
example: 
* 
* 
* 
* 
* 
iii. An owner of 20 percent or more 
of the equity of the applicant is 
presently incarcerated or, for any felony, 
presently subject to an indictment, 
criminal information, arraignment, or 
other means by which formal criminal 
charges are brought in any jurisdiction; 
or has been convicted of, pleaded guilty 
or nolo contendere to, or commenced 
any form of parole or probation 
(including probation before judgment) 
for, a felony involving fraud, bribery, 
embezzlement, or a false statement in a 
loan application or an application for 
federal financial assistance within the 
last five years or any other felony within 
the last year; or 
* 
* 
* 
* 
* 
Under the First Interim Final Rule, as 
amended, an applicant is ineligible if an 
owner of 20 percent or more of its 
equity is presently incarcerated. In 
considering this amended Interim Final 
Rule the Administrator, in consultation 
with the Secretary, has determined that 
this restriction on eligibility remains 
appropriate because the operations of 
small business concerns present a 
greater danger of becoming impaired 
when their owners are incarcerated. As 
a result, they may have greater difficulty 
repaying their loans and present a 
greater credit risk. Although PPP loans 
may be forgiven under section 1106 of 
the CARES Act, PPP loans may only be 
forgiven in cases where borrowers can 
document that the proceeds were 
expended in accordance with the 
requirements of section 1106. In 
situations where the proceeds have not 
been used appropriately, and the loans, 
accordingly, cannot be forgiven, the 
borrowers’ ability to repay the loans 
remains an important consideration. In 
addition, ineligibility for businesses 
whose owners are currently incarcerated 
will help prevent misuse of PPP loan 
funds, irrespective of loan forgiveness 
considerations. 
Under the First Interim Final Rule, as 
amended, an applicant is also ineligible 
if an owner of 20 percent or more of its 
equity is, for any felony, subject to an 
indictment, criminal information, 
arraignment, or other means by which 
formal criminal charges are brought in 
any jurisdiction. Individuals charged 
with felonies are at risk of 
imprisonment, which, as discussed 
above, could place the creditworthiness 
of their businesses in question. 
Therefore, the Administrator, in 
consultation with the Secretary, has 
determined that this limitation also 
remains appropriate to ensure that PPP 
funds are not allocated to an applicant 
for which a recent felony charge may 
impair its ongoing business operations 
and therefore its ability to repay a PPP 
loan for reasons unrelated to the 
COVID–19 pandemic. 
Finally, under the First Interim Final 
Rule, as amended, an applicant is 
ineligible if an owner of 20 percent or 
more of its equity has been convicted of, 
pleaded guilty or nolo contendere to, or 
commenced any form of parole or 
probation (including probation before 
judgment) for, a felony involving fraud, 
bribery, embezzlement, or a false 
statement in a loan application or an 
application for federal financial 
assistance within the last five years or 
any other felony within the last year. 
The Administrator, in consultation with 
the Secretary, has determined that, in 
order to ensure program integrity and 
safeguard against misuse of PPP funds, 
it remains appropriate to require that 
applicants whose owners previously 
were convicted of or pleaded guilty or 
nolo contendere to a felony offense have 
avoided a further felony charge 
following conviction or incarceration for 
a period of at least one year before 
obtaining a PPP loan. This interval 
provides a reasonable level of assurance 
that such applicants do not present 
unacceptable risks of re-incarceration 
that could, as discussed above, 
undermine the ability of their 
businesses to repay their PPP loans. The 
Administrator, in consultation with the 
Secretary, has determined that a longer 
five-year limitation is appropriate for 
felonies involving fraud, bribery, 
embezzlement, or a false statement in a 
loan application or an application for 
federal financial assistance because 
such felonies are most relevant to the 
applicant’s business integrity and 
responsibility, and may indicate a 
greater risk of potential misuse of PPP 
loan funds. 
Each of the ineligible applicant 
categories described above has been 
formulated to reduce the risk of default 
and fraud in the PPP and to ensure that 
PPP loan funds are provided for small 
businesses that will be able to support 
jobs, consistent with Congressional 
intent in the CARES Act. These 
measures are particularly necessary in 
light of the structure of the PPP, in 
which lenders are subject to relatively 
few underwriting obligations before 
issuing loans that are 100 percent 
guaranteed by SBA and that may be 
subject to full forgiveness based on 
documentation provided by the 
borrower. While neither lenders nor 
SBA are conducting typical analysis of 
the characteristics of PPP applicants, the 
measures described above are intended 
to mitigate the risk of default, fraud, or 
misuse of PPP loan funds intended to 
benefit small business employees and at 
the same time balance that need with 
the need to assist in the rehabilitation of 
felons, who are working to become 
responsible and productive members of 
society. 
2. 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 
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38304 
Federal Register / Vol. 85, No. 124 / Friday, June 26, 2020 / Rules and Regulations 
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 require modification to the existing 
PPP information collection that is 
approved under OMB Control Number 
3245–0407 as an emergency request 
until October 31, 2020. As discussed 
above, this rule amends the PPP 
eligibility requirements regarding 
certain criminal activity. As a result of 
these amendments, conforming changes 
will be made to Questions 5 and 6 of 
Form 2483, Borrower Application Form, 
and Section H of Form 2484, Lender 
Application Form. SBA will submit the 
revisions to these forms to the Office of 
Management and Budget for approval. 
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. 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); 
Coronavirus Aid, Relief, and Economic 
Security Act, Pub. L. 116–136, Section 1114. 
Jovita Carranza, 
Administrator. 
[FR Doc. 2020–13942 Filed 6–24–20; 4:15 pm] 
BILLING CODE 8026–03–P 
SMALL BUSINESS ADMINISTRATION 
13 CFR Part 120 
[Docket No. SBA–2020–0038] 
RIN 3245–AH52 
DEPARTMENT OF THE TREASURY 
RIN 1505–AC70 
Business Loan Program Temporary 
Changes; Paycheck Protection 
Program—Revisions to Loan 
Forgiveness and Loan Review 
Procedures Interim Final Rules 
AGENCY: U.S. Small Business 
Administration; Department of the 
Treasury. 
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 
the 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 and the 
Department of the Treasury’s websites 
on May 22, 2020 (published on June 1, 
2020, in the Federal Register), by 
changing key 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 Date: This interim final rule 
is effective March 27, 2020, except for 
the provision relating to the maturity 
date of PPP loans, which is effective 
June 5, 2020, and the provision relating 
to the cap on the amount of loan 
forgiveness for owner-employees and 
self-employed individuals, which is 
effective on June 24, 2020. 
Comment Date: Comments must be 
received on or before July 27, 2020. 
ADDRESSES: You may submit comments, 
identified by number SBA–2020–0038, 
through the Federal eRulemaking Portal: 
http://www.regulations.gov. Follow the 
instructions for submitting comments. 
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