Business Loan Program Temporary Changes; Paycheck Protection Program — Additional Revisions to Loan Forgiveness and Loan Review Procedures Interim Final Rules

Record facts

Summary

A joint interim final rule of the U.S. Small Business Administration and the Department of the Treasury making additional revisions to the Paycheck Protection Program loan forgiveness and loan review procedures interim final rules, published in the Federal Register on October 19, 2020 (Vol. 85, No. 202), under 13 CFR Part 120, Docket Number SBA–2020–0052, RIN 3245–AH59 and RIN 1505–AC71. Its provisions are effective October 14, 2020 and comments were due on or before November 18, 2020. The rule simplifies the forgiveness and loan review processes for PPP loans of $50,000 or less and addresses lender responsibilities, for loans of all sizes, in reviewing documentation of eligible costs in excess of the loan amount. It introduces an alternative Loan Forgiveness Application, SBA Form 3508S, and creates de minimis exemptions from two forgiveness reduction penalties.

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66214 
Federal Register / Vol. 85, No. 202 / Monday, October 19, 2020 / Rules and Regulations 
TABLE 3—Continued 
As appropriate for a particular DOE 
nuclear facility, the section of the technical 
safety requirements on: 
Will provide information on: 
(6) Administrative controls ..................................
Organization and management, procedures, recordkeeping, assessment, and reporting nec-
essary to ensure safe operation of a facility consistent with the technical safety requirement. 
In general, the administrative controls section addresses (i) the requirements associated 
with administrative controls (including those for reporting violations of the technical safety re-
quirement); (ii) the staffing requirements for facility positions important to safe conduct of the 
facility; and (iii) the commitments to the safety management programs identified in the docu-
mented safety analysis as necessary components of the safety basis for the facility. 
(7) Use and application provisions .....................
The basic instructions for applying the safety restrictions contained in a technical safety re-
quirement. The use and application section includes definitions of terms, operating modes, 
logical connectors, completion times, and frequency notations. 
(8) Design features .............................................
Design features of the facility that, if altered or modified, would have a significant effect on 
safe operation. 
(9) Bases appendix .............................................
The reasons for the safety limits, operating limits, and associated surveillance requirements in 
the technical safety requirements. The statements for each limit or requirement shows how 
the numeric value, the condition, or the surveillance fulfills the purpose derived from the 
safety documentation. The primary purpose for describing the basis of each limit or require-
ment is to ensure that any future changes to the limit or requirement is done with full knowl-
edge of the original intent or purpose of the limit or requirement. 
H. Unreviewed Safety Questions 
1. The USQ process is an important tool to 
evaluate whether changes affect the safety 
basis. A contractor must use the USQ process 
to ensure that the safety basis for a DOE 
nuclear facility is not undermined by 
changes in the facility, the work performed, 
the associated hazards, or other factors that 
support the adequacy of the safety basis. 
2. The USQ process permits a contractor to 
make physical and procedural changes to a 
nuclear facility and to conduct tests and 
experiments without prior approval, 
provided these changes do not cause a USQ. 
The USQ process provides a contractor with 
the flexibility needed to conduct day-to-day 
operations by requiring only those changes 
and tests with a potential to impact the safety 
basis (and therefore the safety of the nuclear 
facility) be approved by DOE. This allows 
DOE to focus its review on those changes 
significant to safety. The USQ process helps 
keep the safety basis current by ensuring 
appropriate review of and response to 
situations that might adversely affect the 
safety basis. 
3. DOE Guide 424.1–1B Chg 2, 
Implementation Guide for Use in Addressing 
Unreviewed Safety Question Requirements, 
or successor document provides DOE’s 
expectations for a USQ process. The 
contractor must obtain DOE approval of its 
procedure used to implement the USQ 
process. The contractor is allowed to make 
editorial and format changes to its USQ 
procedure while maintaining DOE approval. 
I. Functions and Responsibilities 
1. The DOE Management Official for a DOE 
nuclear facility (that is, the Assistant 
Secretary, the Assistant Administrator, or the 
Office Director who is primarily responsible 
for the management of the facility) has 
primary responsibility within DOE for 
ensuring that the safety basis for the facility 
is adequate and complies with the safety 
basis requirements of Part 830. The DOE 
Management Official is responsible for 
ensuring the timely and proper— 
(i) Review of all safety basis documents 
submitted to DOE; and 
(ii) Preparation of a safety evaluation report 
concerning the safety basis for a facility. 
2. DOE will maintain a public list on the 
internet that provides the status of the safety 
basis for each Hazard Category 1, 2, or 3 DOE 
nuclear facility and, to the extent practicable, 
provides information on how to obtain a 
copy of the safety basis and related 
documents for a facility. 
[FR Doc. 2020–19329 Filed 10–16–20; 8:45 am] 
BILLING CODE 6450–01–P 
SMALL BUSINESS ADMINISTRATION 
13 CFR Part 120 
[Docket Number SBA–2020–0052] 
RIN 3245–AH59 
DEPARTMENT OF THE TREASURY 
RIN 1505–AC71 
Business Loan Program Temporary 
Changes; Paycheck Protection 
Program—Additional 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 U.S. Small Business 
Administration’s (SBA’s) 7(a) Loan 
Program. Subsequently, SBA and the 
Department of the Treasury (Treasury) 
issued additional interim final rules 
implementing the Paycheck Protection 
Program (PPP). 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) and June 
22, 2020 (published on June 26, 2020, in 
the Federal Register), by providing 
additional guidance concerning the 
forgiveness and loan review processes 
for PPP loans of $50,000 or less and, for 
PPP loans of all sizes, lender 
responsibilities with respect to the 
review of borrower documentation of 
eligible costs for forgiveness in excess of 
a borrower’s PPP loan amount. 
DATES: 
Effective date: The provisions in this 
interim final rule are effective October 
14, 2020. 
Comment date: Comments must be 
received on or before November 18, 
2020. 
ADDRESSES: You may submit comments, 
identified by docket number SBA– 
2020–0052, 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 
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1 See 85 FR 20817 (April 15, 2020) regarding 
application of SBA’s affiliation rules and the 
exemption of otherwise qualified faith-based 
organizations from SBA’s affiliation rules. 
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 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 
(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. 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. On July 4, 2020, the President 
signed into law S. 4116, which 
reauthorized lending under the PPP 
through August 8, 2020 (Pub. L. 116– 
147). 
As described below, this interim final 
rule provides additional guidance 
concerning the forgiveness and loan 
review processes for PPP loans of 
$50,000 or less and, for PPP loans of all 
sizes, lender responsibilities with 
respect to the review of borrower 
documentation of eligible costs for 
forgiveness in excess of a borrower’s 
PPP loan amount. 
Two provisions of this interim final 
rule are an exercise of rulemaking 
authority by SBA jointly with Treasury: 
(1) The de minimis exemption from the 
full-time equivalent (FTE) employee 
reduction penalty for PPP loans of 
$50,000 or less, and (2) the de minimis 
exemption from the employee salary 
and wages reduction penalty for PPP 
loans of $50,000 or less. Otherwise, all 
provisions in this rule are an exercise of 
rulemaking authority by SBA alone. 
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 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 
began accepting lender loan forgiveness 
submissions on August 10, 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). 
See 5 U.S.C. 553(b)(B). 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 November 18, 2020. The SBA and 
Treasury will consider these comments; 
comments received on the two interim 
final rules amended by this interim final 
rule that were posted on SBA’s website 
on May 22, 2020 and published on June 
1, 2020, in the Federal Register; and the 
interim final rule amended by this 
interim final rule that was posted on 
SBA’s website on June 22, 2020 and 
published on June 26, 2020. 
III. Paycheck Protection Program— 
Additional Revisions to Loan 
Forgiveness Interim Final Rule and 
SBA Loan Review Procedures and 
Related Borrower and Lender 
Responsibilities Interim Final Rule 
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 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. 
SBA has previously issued 
comprehensive regulations and 
guidance on the loan forgiveness 
provisions in the CARES Act. As 
relevant here, on May 22, 2020, SBA 
and Treasury jointly posted an 
additional interim final rule on loan 
forgiveness (85 FR 33004) (First Loan 
Forgiveness Rule). The SBA also posted 
an interim final rule on May 22, 2020 
on SBA loan review procedures and 
related borrower and lender 
responsibilities (85 FR 33010) (First 
Loan Review Rule). On June 22, 2020, 
SBA and Treasury jointly posted an 
interim final rule, Revisions to Loan 
Forgiveness and Loan Review 
Procedures Interim Final Rules (85 FR 
38304), revising the First Loan 
Forgiveness Rule and the First Loan 
Review Rule to incorporate Flexibility 
Act amendments. On August 4 and 11, 
2020, SBA posted Frequently Asked 
Questions on PPP Loan Forgiveness. 
The purpose of this interim final rule 
is to simplify further (i) the forgiveness 
and loan review processes for PPP loans 
of $50,000 or less, and (ii) for PPP loans 
of all sizes, lender responsibilities with 
respect to the review of borrower 
documentation of eligible costs for 
forgiveness in excess of a borrower’s 
PPP loan amount. 
In connection with this rule, SBA is 
issuing an alternative Loan Forgiveness 
Application, SBA Form 3508S, for use 
by PPP borrowers applying for loan 
forgiveness on PPP loans with a total 
loan amount of $50,000 or less, except 
for those borrowers that together with 
their affiliates 1 received loans totaling 
$2 million or greater. The Administrator 
of SBA (Administrator) and the 
Secretary of the Treasury (Secretary) 
have concluded that this form strikes an 
appropriate balance between the need 
for simplification in the forgiveness 
process with the responsibility to 
protect the integrity of the program and 
safeguard taxpayer funds. 
1. Changes to the Loan Forgiveness 
Rules 
a. Alternative Loan Forgiveness 
Application 
Because SBA is issuing an alternative 
Loan Forgiveness Application, SBA 
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2 See 85 FR 38304, 38308 (‘‘Borrowers are 
exempted from the loan forgiveness reduction 
arising from a proportional reduction in FTE 
employees during the covered period if the 
borrower is able to document in good faith the 
following: (1) An inability to rehire individuals who 
were employees of the borrower on February 15, 
2020; and (2) an inability to hire similarly qualified 
individuals for unfilled positions on or before 
December 31, 2020. . . . Borrowers are also 
exempted from the loan forgiveness reduction 
arising from a reduction in the number of FTE 
employees during the covered period if the 
borrower is able to document in good faith an 
inability to return to the same level of business 
activity as the borrower was operating at before 
February 15, 2020, due to compliance with 
requirements established or guidance issued 
between March 1, 2020 and December 31, 2020 by 
the Secretary of Health and Human Services, the 
Director of the Centers for Disease Control and 
Prevention (CDC), or the Occupational Safety and 
Health Administration related to the maintenance 
of standards for sanitation, social distancing, or any 
other worker or customer safety requirement related 
to COVID–19 . . . .’’). 
3 85 FR 20811, 20815–20816 (April 15, 2020). 
Form 3508S, the first parenthetical in 
the first sentence of Part III.2.a and the 
parenthetical in the first sentence of Part 
III.6 of the First Loan Forgiveness Rule, 
as revised by Revisions to Loan 
Forgiveness and Loan Review 
Procedures Interim Final Rules, are 
revised to read as follows: ‘‘(SBA Form 
3508, 3508EZ, 3508S, as applicable, or 
lender equivalent)’’. 
b. Reductions to Loan Forgiveness 
Amount 
A borrower of a PPP loan of $50,000 
or less, other than any borrower that 
together with its affiliates received loans 
totaling $2 million or greater, may use 
SBA Form 3508S (or lender’s equivalent 
form) to apply for loan forgiveness. A 
borrower that uses SBA Form 3508S (or 
lender’s equivalent form) is exempt 
from any reductions in the borrower’s 
loan forgiveness amount based on 
reductions in full-time equivalent (FTE) 
employees (section 1106(d)(2) of the 
CARES Act) or reductions in employee 
salary or wages (section 1106(d)(3) of 
the CARES Act) that would otherwise 
apply. As such, Part III.5 of the First 
Loan Forgiveness Rule, as revised by 
Revisions to Loan Forgiveness and Loan 
Review Procedures Interim Final Rules, 
does not apply to borrowers of loans of 
$50,000 or less that use SBA Form 
3508S (or lender’s equivalent form) to 
apply for loan forgiveness. 
The Administrator and the Secretary 
determined that these exemptions are an 
appropriate exercise of their joint 
rulemaking authority to grant de 
minimis exemptions under section 
1106(d)(6) of the CARES Act. The 
Administrator and the Secretary believe 
that the additional exemptions set forth 
above are consistent with the purposes 
of the CARES Act, including to provide 
much-needed financial assistance to a 
broad range of small businesses, and 
provide borrowers appropriate 
flexibility in the current economic 
climate. The Administrator and the 
Secretary have determined that these 
exemptions are de minimis. The 
purpose of the PPP is to provide 
financial assistance to small businesses 
and their employees, and the 
requirements of section 1106(d) focus 
on the number of employees and 
compensation. Consequently, in this 
context, both the aggregate dollar 
amount of affected loans relative to the 
aggregate dollar amount of all PPP loans 
and the number of affected employees 
are reasonable considerations in 
assessing whether an exemption is de 
minimis. There are approximately 3.57 
million outstanding PPP loans of 
$50,000 or less, totaling approximately 
$62 billion of the $525 billion in PPP 
loans. Approximately 1.71 million PPP 
loans of $50,000 or less were made to 
businesses that reported having zero 
employees (presumably not counting 
the owner as an employee) or one 
employee. To the extent that these 
businesses have no employees other 
than the owner (i.e., all businesses that 
reported having zero employees and, in 
SBA’s judgment, the majority of 
businesses that reported having one 
employee), they are not affected by 
these exemptions. As a result, based on 
available data, we estimate that the 
outstanding PPP loans of the relevant 
set of potentially affected borrowers 
(businesses with at least one employee 
other than the owner) total 
approximately $49 billion, or 9 percent 
of the overall PPP loan amount. Within 
this population of potentially affected 
loans, SBA believes that most borrowers 
would not be affected by the loan 
forgiveness reduction requirements 
because (1) the borrowers did not 
reduce FTE employees or reduce 
employee salaries or wages, or (2) the 
borrowers would qualify for one of the 
existing exemptions from loan 
forgiveness amount reductions.2 
Excluding such borrowers, the aggregate 
dollar amount of PPP funds affected by 
these exemptions relative to the 
aggregate dollar amount of all PPP funds 
is de minimis. 
2. Changes to the Loan Review Rules 
a. Alternative Loan Forgiveness 
Application 
Because SBA is issuing another 
alternative Loan Forgiveness 
Application, SBA Form 3508S, each 
reference to ‘‘SBA Form 3508, 3508EZ, 
or lender’s equivalent form’’ in Part III.1 
of the First Loan Review Rule, as 
revised by the Revisions to Loan 
Forgiveness and Loan Review 
Procedures Interim Final Rules, is 
replaced with ‘‘SBA Form 3508, 
3508EZ, 3508S, or lender’s equivalent 
form’’. 
b. The Loan Forgiveness Process for 
Lenders 
As noted above, SBA is issuing 
another alternative Loan Forgiveness 
Application, SBA Form 3508S. This 
necessitates several revisions to Part 
III.2 of the First Loan Review Rule, as 
revised by the Revisions to Loan 
Forgiveness and Loan Review 
Procedures Interim Final Rules. 
The following text is added as a new 
paragraph at the end of Part III.2.a 
(‘‘What should a lender review?’’): 
When a borrower submits SBA Form 
3508S or lender’s equivalent form, the 
lender shall: 
i. Confirm receipt of the borrower 
certifications contained in the SBA 
Form 3508S or lender’s equivalent form. 
ii. Confirm receipt of the 
documentation the borrower must 
submit to aid in verifying payroll and 
nonpayroll costs, as specified in the 
instructions to the SBA Form 3508S or 
lender’s equivalent form. 
Providing an accurate calculation of 
the loan forgiveness amount is the 
responsibility of the borrower, and the 
borrower attests to the accuracy of its 
reported information and calculations 
on the Loan Forgiveness Application. 
The borrower shall not receive 
forgiveness without submitting all 
required documentation to the lender. 
As the First Interim Final Rule 3 
indicates, lenders may rely on borrower 
representations. As stated in paragraph 
III.3.c of the First Interim Final Rule, the 
lender does not need to independently 
verify the borrower’s reported 
information if the borrower submits 
documentation supporting its request 
for loan forgiveness and attests that it 
accurately verified the payments for 
eligible costs. 
In Part III.2.b., each reference to ‘‘SBA 
Form 3508EZ or lender’s equivalent 
form’’ is replaced with ‘‘SBA Form 
3508EZ, 3508S, or lender’s equivalent 
form.’’ 
In Part III.2.c., each reference to ‘‘SBA 
Form 3508, 3508EZ or lender’s 
equivalent form’’ is replaced with ‘‘SBA 
Form 3508, 3508EZ, 3508S, or lender’s 
equivalent form.’’ 
c. Borrower Submission of Excess Costs 
In some cases, a borrower may submit 
to a lender documentation of eligible 
payroll and nonpayroll costs that exceed 
the amount of the borrower’s PPP loan. 
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Federal Register / Vol. 85, No. 202 / Monday, October 19, 2020 / Rules and Regulations 
To address this situation, the following 
text is added as a new paragraph d. at 
the end of Part III.2: 
d. What should a lender do if a borrower 
submits documentation of eligible costs 
that exceed a borrower’s PPP loan 
amount? 
The amount of loan forgiveness that a 
borrower may receive cannot exceed the 
principal amount of the PPP loan. 
Whether a borrower submits SBA Form 
3508, 3508EZ, 3508S, or lender’s 
equivalent form, a lender should 
confirm receipt of the documentation 
the borrower is required to submit to aid 
in verifying payroll and nonpayroll 
costs, and, if applicable (for SBA Form 
3508, 3508EZ, or lender’s equivalent 
form), confirm the borrower’s 
calculations on the borrower’s Loan 
Forgiveness Application, up to the 
amount required to reach the requested 
Forgiveness Amount. 
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 
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 and Treasury have 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 and Treasury have determined 
that this rule modifies an existing 
information collection. This rule 
reduces the burden associated with 
lender review of borrower 
documentation of eligible costs for 
forgiveness. Additionally, SBA has 
developed a second streamlined 
Paycheck Protection Program—PPP 
Loan Forgiveness Application Form 
3508S (SBA Form 3508S), which is 
available for borrowers meeting criteria 
described in the instructions 
accompanying the form. SBA has 
obtained Office of Management and 
Budget (OMB) approval of the 
modification to the existing information 
collection, which is currently approved 
as an emergency request under OMB 
Control Number 3245–0407 until 
October 31, 2020. 
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 small government jurisdictions with 
a population of less than 50,000, neither 
State nor local governments are ‘‘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. Since this rule 
is exempt from notice and comment, 
SBA is not required to conduct a 
regulatory flexibility analysis. 
Jovita Carranza, 
Administrator Small Business 
Administration. 
Michael Faulkender, 
Assistant Secretary for Economic Policy 
Department of the Treasury. 
[FR Doc. 2020–23091 Filed 10–14–20; 4:15 pm] 
BILLING CODE P 
DEPARTMENT OF HEALTH AND 
HUMAN SERVICES 
Food and Drug Administration 
21 CFR Part 101 
[Docket No. FDA–2019–D–0725] 
The Declaration of Allulose and 
Calories From Allulose on Nutrition 
and Supplement Facts Labels; 
Availability 
AGENCY: Food and Drug Administration, 
HHS. 
ACTION: Notification of availability. 
SUMMARY: The Food and Drug 
Administration (FDA or we) is 
announcing the availability of a final 
guidance for industry entitled ‘‘The 
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