Business Loan Program Temporary Changes; Paycheck Protection Program—Additional Criterion for Seasonal Employers
Summary
Federal Register pages from Vol. 85, No. 84, Thursday, April 30, 2020, carrying the Department of the Treasury interim final rule "Business Loan Program Temporary Changes; Paycheck Protection Program—Additional Criterion for Seasonal Employers." The rule cites section 1109(b) of the CARES Act, which authorizes Treasury to establish criteria for insured depository institutions, insured credit unions and other lenders, and sets an additional criterion for calculating the maximum loan amount for PPP loans issued to seasonal employers. Comments are invited under docket number TREAS–DO–2020–0009. The same pages carry the end of a National Credit Union Administration appraisal rule and a Food and Drug Administration notice.
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Federal Register / Vol. 85, No. 84 / Thursday, April 30, 2020 / Rules and Regulations 23917
D. Assessment of Federal Regulations transaction value is not insured or DATES:
and Policies on Families guaranteed by a United States Effective Date: This rule is effective
The NCUA has determined that this government agency or United States April 30, 2020.
final rule will not affect family well- government sponsored agency. Comment Date: Comments must be
(c) * * * (1) An appraisal performed received on or before June 1, 2020.
being within the meaning of Section 54
by a state-certified appraiser or a state- ADDRESSES: You may submit comments,
of the Treasury and General
licensed appraiser is required for any identified by number TREAS–DO–
Government Appropriations Act of
real estate-related financial transaction 2020–0009 through the Federal
1999.
not exempt under paragraph (a) of this eRulemaking Portal: http://
E. Small Business Regulatory section in which the transaction is not www.regulations.gov. Follow the
Enforcement Fairness Act complex, involves a residential real instructions for submitting comments.
The Small Business Regulatory estate transaction, and $400,000 or more Treasury will post all comments on
Enforcement Fairness Act of 1996 of the transaction value is not insured www.regulations.gov. If you wish to
(SBREFA) generally provides for or guaranteed by a United States submit confidential business
congressional review of agency rules. A government agency or United States information (CBI) as defined in the User
reporting requirement is triggered in government sponsored agency. Notice at www.regulations.gov, please
instances where the NCUA issues a final * * * * * highlight the information that you
rule as defined by section 551 of the ■ 3. Amend § 722.4 by: consider to be CBI and explain why you
Administrative Procedure Act. An ■ a. Redesignating paragraphs (c), (d), believe Treasury should hold this
agency rule, in addition to being subject and (e) as (d), (e), and (f), respectively; information as confidential. Treasury
to congressional oversight, may also be ■ b. Adding a new paragraph (c); and will review the information and make
■ c. In newly designated paragraph (e) the final determination whether it will
subject to a delayed effective date if the
rule is a ‘‘major rule.’’ The NCUA does removing the text ‘‘§ 722.2(f)’’ and publish the information.
not believe this rule is a ‘‘major rule’’ adding in its place the text ‘‘§ 722.2’’. FOR FURTHER INFORMATION CONTACT:
The addition reads as follows:
within the meaning of the relevant Jonathan Greenstein, Office of Domestic
sections of SBREFA. As required by § 722.4 Minimum appraisal standards. Finance, 202–622–1408;
SBREFA, the NCUA has submitted this * * * * * Jonathan.Greenstein@Treasury.gov.
final rule to the OMB for it to determine (c) Be subject to appropriate review SUPPLEMENTARY INFORMATION:
if the final rule is a ‘‘major rule’’ for for compliance with the Uniform
purposes of SBREFA. The NCUA also I. Background Information
Standards of Professional Appraisal
will file appropriate reports with Practice. On March 27, 2020, the President
Congress and the Government * * * * * signed the CARES Act, Public Law 116–
Accountability Office so this rule may [FR Doc. 2020–08433 Filed 4–29–20; 8:45 am] 136, to provide emergency assistance
be reviewed. BILLING CODE 7535–01–P and health care response for
List of Subjects in 12 CFR Part 722 individuals, families, and businesses
affected by the coronavirus pandemic.
Appraisal, Appraiser, Credit unions, Section 1102 of the Act establishes the
Mortgages, Reporting and recordkeeping DEPARTMENT OF THE TREASURY
PPP as a temporary addition to the
requirements, Truth in lending. 13 CFR Part 120 SBA’s 7(a) loan program. The PPP is
By the National Credit Union designed to assist small businesses
[Docket Number TREAS–DO–2020–0009]
Administration Board on April 16, 2020. nationwide adversely impacted by the
Gerard Poliquin, RIN 1505–AC67 coronavirus pandemic. SBA has
Secretary of the Board. published information about the PPP in
Small Business Administration interim final rules available at 85 FR
For the reasons discussed above, the Business Loan Program Temporary 20811 (April 15, 2020); 85 FR 20817
NCUA Board amends 12 CFR part 722 Changes; Paycheck Protection (April 15, 2020); 85 FR 21747 (April 20,
as follows: Program—Additional Criterion for 2020); and 85 FR 23450 (April 28, 2020).
Seasonal Employers Section 1109(b) of the Act authorizes
PART 722—APPRAISALS
AGENCY: U.S. Department of the Treasury to establish criteria for insured
■ 1. The authority citation for part 722 Treasury. depository institutions, insured credit
continues to read as follows: ACTION: Interim final rule.
unions, institutions of the Farm Credit
Authority: 12 U.S.C. 1766, 1789, and 3331
System chartered under the Farm Credit
et seq. Section 722.3(a) is also issued under SUMMARY: The Coronavirus Aid, Relief, Act of 1971 (12 U.S.C. 2001 et seq.), and
15 U.S.C. 1639h. and Economic Security Act (the CARES other lenders to participate in the PPP.
Act or the Act) authorizes the U.S. The SBA is required to administer the
■ 2. Amend § 722.3 by:
Department of the Treasury (Treasury) program that Treasury establishes under
■ a. Revising paragraphs (b)(2) and
to issue regulations for the Paycheck section 1109 of the Act, with guidance
(c)(1); and
Protection Program (PPP) administered from Treasury.
■ b. Removing paragraph (f).
by the Small Business Administration The Act authorizes Treasury to issue
The revisions read as follows:
(SBA), including regulations that allow regulations and guidance to implement
§ 722.3 Appraisals and written estimates additional lenders to originate loans and section 1109, including regulations that
of market value requirements for real establish terms and conditions. In this establish ‘‘terms and conditions’’ for
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estate-related financial transactions. interim final rule, Treasury authorizes PPP loans. See Section 1109(d)(2). The
* * * * * all lenders eligible to originate loans terms and conditions established by
(b) * * * under the PPP to use an alternative Treasury under section 1109 are not
(2) The transaction is complex, criterion for calculating the maximum required to be identical to those set forth
involves a residential real estate loan amount for PPP loans issued to in section 1102. However, the Act
transaction, and $400,000 or more of the seasonal employers. requires that terms and conditions that
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23918 Federal Register / Vol. 85, No. 84 / Thursday, April 30, 2020 / Rules and Regulations
Treasury establishes under section 1109 businesses expeditiously. Given this 2. What does this interim final rule
pertaining to certain criteria—the intent and the dramatic decrease in apply to?
maximum interest rate, maximum loan economic activity nationwide, there is This rule applies to PPP loans issued
amount, and other specified terms— good cause for Treasury to dispense to seasonal employers.
must be ‘‘consistent,’’ to ‘‘the maximum with the 30-day delayed effective date
extent practicable,’’ with those set forth provided in the Administrative 3. How does this rule affect the
in section 1102. See Section 1109(d)(2). Procedure Act. This interim final rule calculation of the maximum loan
In this rulemaking, Treasury is provides an alternative criterion for amount for seasonal employers?
addressing the needs of certain potential calculating the maximum loan amount Under section 1102 of the CARES Act,
borrowers that are seasonal employers for PPP loans issued to seasonal a seasonal employer may determine its
by allowing seasonal employers to use employers. Seasonal employers need maximum loan amount for purposes of
an alternative base period for purposes timely additional guidance concerning the PPP by reference to the employer’
of calculating the loan amount for the maximum loan available under the average total monthly payments for
which they are eligible under the PPP. interim final rule because the last day to payroll ‘‘the 12-week period beginning
Section 1102 of the Act permits seasonal apply for and receive a loan is June 30, February 15, 2019, or at the election of
employers to calculate their maximum 2020. The immediate effective date of the eligible [borrower], March 1, 2019,
loan amount by using their monthly this interim final rule will benefit and ending June 30, 2019.’’ Under this
average payments for payroll during seasonal employers by providing a full interim final rule issued pursuant to
‘‘the 12-week period beginning February understanding of loan terms and section 1109 of the Act, a seasonal
15, 2019, or at the election of the conditions. Although this interim final employer may alternatively elect to
eligible [borrower], March 1, 2019, and rule is effective immediately, comments determine its maximum loan amount as
ending June 30, 2019.’’ Some seasonal are solicited from interested members of the average total monthly payments for
employers, however, have seasons that the public on all aspects of the interim payroll during any consecutive 12-week
occur later in the year. Without the final rule, including section III below. period between May 1, 2019 and
ability to use an alternative base period, These comments must be submitted on September 15, 2019.
many summer seasonal businesses or before June 1, 2020. Treasury will
would be unable to obtain funding on 4. If a seasonal business was dormant or
consider these comments and the need not fully operating as of February 15,
terms commensurate with those for any revisions as a result of these
available to winter and spring seasonal 2020, is it still eligible?
comments.
businesses. This interim final rule Yes, in evaluating eligibility, a
addresses that disparity and ensures III. Paycheck Protection Program— seasonal business will be considered to
consistency in program administration Alternative Criterion for Seasonal have been in operation as of February
by providing a seasonal employer the Employers 15, 2020, if the business was in
option of using any consecutive 12- operation for any 8-week period
week period between May 1, 2019 and Overview
between May 1, 2019 and September 15,
September 15, 2019 for determining its The SBA administers the PPP to 2019. This approach aligns with
maximum loan amount. provide immediate assistance to small guidance previously provided by the
As required by section 1109(d)(2)(B), businesses affected by the coronavirus Small Business Administration
Treasury has determined that this pandemic. Under section 1109 of the concerning other seasonal businesses
alternative period for seasonal CARES Act, Treasury is authorized to under section 1102. See Treasury,
employers is, to the ‘‘maximum extent issue regulations that allow lenders to Paycheck Protection Program Loans:
practicable,’’ consistent with the terms originate PPP loans under terms and Frequently Asked Questions (FAQs),
applicable to the PPP in general. In conditions established by the Secretary. FAQ 9 (posted April 6, 2020) (https://
section 1102, Congress gave seasonal Through this interim final rule, home.treasury.gov/policy-issues/cares/
employers the option to calculate their Treasury is exercising its section 1109 assistance-for-small-businesses).
maximum loan amount using alternative authority to address the needs of certain
base periods. By permitting seasonal 6. Are any other SBA rules or guidance
potential borrowers that are seasonal for the PPP affected by Treasury’s
employers to calculate the maximum employers. The SBA will administer
loan amount using any consecutive 12 interim final rule?
this rule as part of the PPP, with
weeks within a specified 4.5-month No. This interim final rule only
guidance from Treasury, until the date
period, this interim final rule ensures provides certain employers with an
on which the national emergency
that seasonal employers affected by the alternative means of calculating the
declared by the President under the
pandemic are treated even-handedly. maximum loan amount. All other terms
National Emergencies Act (50 U.S.C.
Other than this adjustment, the terms and conditions in the PPP remain
1601 et seq.) with respect to the
and requirements applicable to PPP unchanged. All PPP applicants,
Coronavirus Disease 2019 (COVID–19)
loans under this rule are identical to the borrowers, and lenders should continue
expires. Except as modified in this
terms and requirements that section to use existing SBA forms and follow all
interim final rule, PPP regulations,
1102 and SBA regulations impose on requirements set forth in the CARES Act
guidance, forms, and processes apply
other PPP loans. As a result, a seasonal and SBA regulations, except for the
fully to PPP loans for seasonal
borrower that elects to use the alternative approach described above for
employers utilizing the base period
alternative timing criterion under this calculating the maximum loan amount.
calculation option set forth in this rule.
interim final rule may follow the same
7. What lenders are authorized to offer
processes and procedures applicable to 1. General terms in Treasury’s interim final rule to
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other PPP loans.
This interim final rule supplements seasonal employers?
II. Comments and Immediate Effective the SBA’s rules for the PPP by All lenders authorized to originate
Date establishing an alternative criterion for PPP loans may offer the terms under
Congress intended that the PPP calculating the maximum loan amount this interim final rule to eligible
provide relief to America’s small for seasonal employers. applicants and borrowers. PPP loans
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Federal Register / Vol. 85, No. 84 / Thursday, April 30, 2020 / Rules and Regulations 23919
under this interim final rule are eligible prior notice and public comment Certificate Duration Requirements
for an SBA guarantee to the same extent requirement and the delayed effective During the COVID–19 Public Health
as PPP loans based on existing PPP date requirements, when an agency for Emergency.’’ Given the public health
rules. good cause finds that such procedures emergency presented by COVID–19, this
are impracticable, unnecessary, or guidance document is being
Compliance With Executive Orders
12866, 12988, 13132, 13563, and 13771, contrary to the public interest. 5 U.S.C. implemented without prior public
the Paperwork Reduction Act (44 U.S.C. 553(b)(B), (d)(3). Treasury finds that comment because FDA has determined
Ch. 35), and the Administrative prior notice and comment are that prior public participation is not
Procedure Act (5 U.S.C. 553) impracticable and contrary to the public feasible or appropriate, but it remains
interest and that good cause exists to subject to comment in accordance with
Executive Orders 12866, 13563, and issue this interim final rule the Agency’s good guidance practices.
13771 immediately. The guidance communicates the
The Office of Management and Budget The ongoing unprecedented situation Agency’s intention not to enforce
has determined that this interim final related to COVID–19 is having a certain requirements for the onsite
rule is economically significant for the nationwide impact, as demonstrated by monitoring activities and certificates for
purposes of Executive Orders 12866 and the declaration of a national emergency the currently recognized accreditation
13563, and is considered a major rule by the President. See Proclamation 9994 bodies (ABs) and accredited third-party
under the Congressional Review Act. of March 13, 2020, 85 FR 15337 (Mar. certification bodies (CBs) in the
Treasury, however, is proceeding under 18, 2020). The interim final rule Accredited Third-Party Certification
the emergency provision at Executive supports seasonal employers affected by Program for human and animal food in
Order 12866 Section 6(a)(3)(D) based on COVID–19 in obtaining PPP loans to certain circumstances. Because travel
the need to move expeditiously to maintain their businesses and keep restrictions and advisories related to
mitigate the current economic people employed. To protect our public COVID–19 may impact the ability of
conditions arising from the COVID–19 interests during the ongoing national recognized ABs and accredited CBs to
emergency. This rule’s designation emergency, Treasury concludes, conduct onsite activities, this guidance
under Executive Order 13771 will be pursuant to 5 U.S.C. 553(b)(B), that provides temporary flexibility so that
informed by public comment. there is good cause to dispense with recognized ABs can maintain the
prior public notice and the opportunity accreditations of their CBs, and so that
Executive Order 12988 to comment on this rule before issuing already-issued certifications need not
Treasury has drafted this rule, to the this interim final rule. For the same lapse, in certain circumstances.
extent practicable, in accordance with reasons, Treasury has determined,
DATES: The announcement of the
the standards set forth in section 3(a) consistent with section 553(d)(3) of the
guidance is published in the Federal
and 3(b)(2) of Executive Order 12988, to APA, that there is good cause to make
minimize litigation, eliminate Register on April 30, 2020.
this temporary final rule effective
ambiguity, and reduce burden. The rule immediately. ADDRESSES: You may submit either
has no preemptive or retroactive effect. electronic or written comments on
Michael Faulkender, Agency guidances at any time as
Executive Order 13132 Assistant Secretary for Economic Policy. follows:
Treasury has determined that this rule [FR Doc. 2020–09239 Filed 4–28–20; 4:15 pm]
will not have substantial direct effects Electronic Submissions
BILLING CODE P
on the States, on the relationship Submit electronic comments in the
between the National Government and following way:
the States, or on the distribution of DEPARTMENT OF HEALTH AND • Federal eRulemaking Portal:
power and responsibilities among the HUMAN SERVICES https://www.regulations.gov. Follow the
various layers of government. Therefore, instructions for submitting comments.
Treasury has determined that this rule Food and Drug Administration Comments submitted electronically,
has no federalism implications including attachments, to https://
warranting preparation of a federalism 21 CFR Part 1 www.regulations.gov will be posted to
assessment. the docket unchanged. Because your
[Docket No. FDA–2020–D–1304]
Paperwork Reduction Act, 44 U.S.C. comment will be made public, you are
Chapter 35 Temporary Policy Regarding solely responsible for ensuring that your
Accredited Third-Party Certification comment does not include any
Treasury has determined that this rule
Program Onsite Observation and confidential information that you or a
will not impose new or modify existing
Certificate Duration Requirements third party may not wish to be posted,
recordkeeping or reporting requirements
During the COVID–19 Public Health such as medical information, your or
under the Paperwork Reduction Act.
Emergency: Guidance for Industry; anyone else’s Social Security number, or
Inapplicability of Notice and Delayed Availability confidential business information, such
Effective Date as a manufacturing process. Please note
AGENCY: Food and Drug Administration,
The Administrative Procedure Act HHS. that if you include your name, contact
(APA) requirements in 5 U.S.C. 553 information, or other information that
ACTION: Notification of availability.
govern agency rulemaking procedures. identifies you in the body of your
Section 553(b) of the APA generally SUMMARY: The Food and Drug comments, that information will be
posted on https://www.regulations.gov.
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requires notice and public comment Administration (FDA, Agency, or we) is
before issuance of a final rule. In announcing the availability of a final • If you want to submit a comment
addition, section 553(d) of the APA guidance for industry entitled with confidential information that you
requires that a final rule have a 30-day ‘‘Temporary Policy Regarding do not wish to be made available to the
delayed effective date. The APA, Accredited Third-Party Certification public, submit the comment as a
however, provides exceptions from the Program Onsite Observation and written/paper submission and in the
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