Rules and Regulations — Paycheck Protection Program — Disbursements (Federal Register, Vol. 85, No. 86, May 4, 2020)

Summary

A page of the Federal Register, Vol. 85, No. 86, Monday, May 4, 2020, p. 26321, whose columns combine text of a Consumer Financial Protection Bureau interpretive rule on mortgage disclosures with the summary of a Small Business Administration interim final rule. The SBA summary states that on April 2, 2020 SBA posted an interim final rule, called the First PPP Interim Final Rule, implementing sections 1102 and 1106 of the CARES Act. The remaining columns of the page concern other rules.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

26321 Federal Register/Vol. 85, No. 86/Monday, May 4, 2020/Rules and Regulations
13 12 CFR 1026.19(e)(3). As a general rule, an
estimated closing cost disclosed on the Loan
Estimate pursuant to §1026.19(e)(1)(i) is in good
faith if the charge paid by or imposed on the
consumer does not exceed the amount originally
disclosed. 12 CFR 1026.19(e)(3)(i). For certain
categories of settlement charges, good faith is
determined with reference to whether: (1) The
aggregate amount of certain charges paid by or
imposed on the consumer does not exceed the
aggregate amount of those charges disclosed
pursuant to §1026.19(e)(1)(i) by more than 10
percent (see 12 CFR 1026.19(e)(3)(ii)(A)); or (2) the
charge was estimated consistent with the best
information reasonably available at the time it was
disclosed, regardless of whether the final amount
exceeds the estimated amount (see 12 CFR
1026.19(e)(3)(iii)).
14 12 CFR 1026.19(e)(3)(iv); 12 CFR
1026.19(e)(4)(i). Under §1026.19(e)(4)(i), the
revised estimates must be reflected on a revised
version of the Loan Estimate, on the Closing
Disclosure, or on a corrected Closing Disclosure.
15 12 CFR 1026.19(e)(3)(iv)(A).
16 12 CFR 1026.19(e)(3)(iv)(A)(1); comment
19(e)(3)(iv)(A)–2.
17 See id.; 12 CFR 1026.19(e)(4)(i). As noted
above, the revised estimates must be reflected on a
revised version of the Loan Estimate, on the Closing
Disclosure, or on a corrected Closing Disclosure. 12
CFR 1026.19(e)(4)(i). See also 12 CFR 1024.2(b)
(definition of ‘‘Changed circumstances’’ in
Regulation X, which predates the TRID Rule
changed circumstance definition, includes ‘‘Acts of
God, war, disaster, or other emergency’’).
18 12 U.S.C. 5512(b)(1). The relevant provisions of
TILA and Regulation Z form part of Federal
consumer financial law. See 12 U.S.C. 5481(12)(O),
(14).
19 15 U.S.C. 1640(f).
20 5 U.S.C. 553(d).
21 5 U.S.C. 553(b).
22 5 U.S.C. 603(a), 604(a).
23 44 U.S.C. 3501 et seq.
24 5 U.S.C. 801 et seq.
with their mortgage transaction and
disclose them on the Loan Estimate.13
For purposes of determining good faith
under the TRID Rule, creditors may use
revised estimates of such costs in a
limited number of situations pursuant to
Regulation Z, §1026.19(e)(3)(iv).14 One
such situation is if there are ‘‘changed
circumstances’’ that affect the
settlement charges consumers would
incur.15 The TRID Rule specifies that
changed circumstances includes ‘‘an
extraordinary event beyond the control
of any interested party,’’ with the
commentary to the TRID Rule clarifying
that a ‘‘war or natural disaster’’ is an
example of such an extraordinary
event.16
Economic disruptions and shortages
during the COVID–19 pandemic may
affect the ability of stakeholders to
provide accurate estimates of some
settlement charges. Stakeholders have
sought guidance from the Bureau as to
whether the COVID–19 pandemic is an
extraordinary event that permits
creditors to provide consumers with
revised estimates reflecting changes in
settlement charges. For example, a
stakeholder asked to clarify whether, for
purposes of establishing good faith, a
creditor could provide a revised
estimate of the appraisal fee based on
changed circumstances where (1) the
amount disclosed on the Loan Estimate
was based on a reasonable market price
at the time of the estimate and (2) the
actual appraisal fee was higher because
of a shortage of available appraisers due
to the effects of the COVID–19
pandemic. Upon consideration of the
interpretive issues, the Bureau
concludes that, as with wars or natural
disasters, the COVID–19 pandemic is an
example of an extraordinary event
beyond the control of any interested
party, and thus is a changed
circumstance. Accordingly, for purposes
of determining good faith, creditors may
use revised estimates of settlement
charges that consumers would incur in
connection with the mortgage
transaction if the COVID–19 pandemic
has affected the estimate of such
settlement charges.17
3. Legal Authority and TILA Safe Harbor
Provisions
The Bureau is issuing this interpretive
rule based on its authority to interpret
TILA and 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 the
Federal consumer financial laws.18
By operation of TILA section 130(f),
no provision of TILA sections 108(b),
108(c), 108(e), 112, or 130 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, this interpretive rule is
amended, rescinded, or determined by
judicial or other authority to be invalid
for any reason.19
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.20
Therefore, this rule is effective on May
4, 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.21
Because no notice of proposed
rulemaking is required, the Regulatory
Flexibility Act does not require an
initial or final regulatory flexibility
analysis.22
The Bureau has determined that this
interpretive rule does not impose any
new or revise any existing
recordkeeping, reporting, or disclosure
requirements on covered entities or
members of the public that would be
collections of information requiring
OMB approval under the Paperwork
Reduction Act.23
IV. Congressional Review Act
Pursuant to the Congressional Review
Act,24 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: April 29, 2020.
Laura Galban,
Federal Register Liaison, Bureau of Consumer
Financial Protection.
[FR Doc. 2020–09515 Filed 5–1–20; 8:45 am]
BILLING CODE 4810–AM–P
SMALL BUSINESS ADMINISTRATION
13 CFR Part 120
[Docket Number SBA–2020–0022]
RIN 3245–AH38
Business Loan Program Temporary
Changes; Paycheck Protection
Program—Requirements—
Disbursements
AGENCY: U. S. Small Business
Administration.
ACTION: Interim final rule.
SUMMARY: On April 2, 2020, the U.S.
Small Business Administration (SBA)
posted an interim final rule (the First
PPP Interim Final Rule) announcing the
implementation of the Coronavirus Aid,
Relief, and Economic Security Act
(CARES Act or the Act). The Act
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1 If the tenth calendar day is a Saturday, Sunday,
or legal holiday, the period continues to run until
the end of the next business day.
temporarily adds a new program, titled
the ‘‘Paycheck Protection Program,’’ to
the SBA’s 7(a) Loan Program. The Act
also provides for forgiveness of up to the
full principal amount of qualifying
loans guaranteed under the Paycheck
Protection Program (PPP). The PPP is
intended to provide economic relief to
small businesses nationwide adversely
impacted by the Coronavirus Disease
2019 (COVID–19). SBA posted
additional interim final rules on April 3,
2020, April 14, 2020, and April 24,
2020. This interim final rule
supplements the previously posted
interim final rules with additional
guidance. This interim final rule
supplements SBA’s implementation of
the Act and requests public comment.
DATES:
Effective date: This rule is effective
May 4, 2020.
Applicability date: This interim final
rule applies to applications submitted
under the Paycheck Protection Program
through June 30, 2020, or until funds
made available for this purpose are
exhausted.
Comment date: Comments must be
received on or before June 3, 2020.
ADDRESSES: You may submit comments,
identified by number SBA–2020–0022,
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, tribal, and local public
health measures that are being taken to
minimize the public’s exposure to the
virus. These measures, some of which
are government-mandated, are being
implemented nationwide and include
the closures of restaurants, bars, and
gyms. In addition, based on the advice
of public health officials, other
measures, such as keeping a safe
distance from others or even stay-at-
home orders, are being implemented,
resulting in a dramatic decrease in
economic activity as the public avoids
malls, retail stores, and other
businesses.
On March 27, 2020, the President
signed the Coronavirus Aid, Relief, and
Economic Security Act (the CARES Act
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 Paycheck
Protection Program.
II. Comments and Immediate Effective
Date
The intent of the Act is that SBA
provide relief to America’s small
businesses expeditiously. This intent,
along with the dramatic decrease in
economic activity nationwide, provides
good cause for SBA to dispense with the
30-day delayed effective date provided
in the Administrative Procedure Act.
Specifically, it is critical to meet
lenders’ and borrowers’ need for clarity
concerning program requirements as
rapidly as possible because the last day
eligible borrowers can apply for and
receive a loan is June 30, 2020.
This interim final rule supplements
previous regulations and guidance on
several important, discrete issues. The
immediate effective date of this interim
final rule will benefit lenders so that
they can swiftly close and disburse
loans to small businesses. This interim
final rule is effective without advance
notice and public comment because
section 1114 of the Act authorizes SBA
to issue regulations to implement Title
I of the Act without regard to notice
requirements. This rule is being issued
to allow for immediate implementation
of this program. Although this interim
final rule is effective immediately,
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 June 3, 2020.
SBA will consider these comments and
the need for making any revisions as a
result of these comments.
III. Paycheck Protection Program
Requirements for Disbursements
Overview
The CARES Act was enacted to
provide immediate assistance to
individuals, families, and organizations
affected by the COVID–19 emergency.
Among the provisions contained in the
CARES Act are provisions authorizing
SBA to temporarily guarantee loans
under the Paycheck Protection Program
(PPP). Loans under the PPP will be 100
percent guaranteed by SBA, and the full
principal amount of the loans and any
accrued interest may qualify for loan
forgiveness. Additional information
about the PPP is available in the First
PPP Interim Final Rule (85 FR 20811),
a second interim final rule (85 FR
20817) (the Second PPP Interim Final
Rule), a third interim final rule (85 FR
21747) (the Third PPP Interim Final
Rule), a fourth interim final rule (85 FR
23450) (the Fourth PPP Interim Final
Rule), and in an interim final rule
issued by the Department of the
Treasury, which was posted for public
inspection at the Federal Register on
April 28, 2020 (FR Doc. 2020–09239)
(collectively, the PPP Interim Final
Rules).
1. Disbursements
a. Can a borrower take multiple draws
from a PPP loan and thereby delay the
start of the eight-week covered period?
No. The lender must make a one-time,
full disbursement of the PPP loan
within ten calendar days of loan
approval; for the purposes of this rule,
a loan is considered approved when the
loan is assigned a loan number by SBA.1
For loans that received an SBA loan
number prior to the posting of this
interim final rule but have not yet been
fully disbursed, the following transition
rules apply:
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• The ten calendar-day period
described above begins on April 28,
2020.
• The eight-week covered period
began on the date of first disbursement.
Notwithstanding this limitation,
lenders are not responsible for delays in
disbursement attributable to a
borrower’s failure to timely provide
required loan documentation, including
a signed promissory note. Loans for
which funds have not been disbursed
because a borrower has not submitted
required loan documentation within 20
calendar days of loan approval shall be
cancelled by the lender, subject to the
transition rules above. When disbursing
loans, lenders must send any amount of
loan proceeds designated for the
refinance of an EIDL loan directly to
SBA and not to the borrower.
The Administrator, in consultation
with the Secretary, determined that
requiring a single loan disbursement
will best serve the interests of both
borrowers and lenders and promote the
purposes of the CARES Act. A single
loan disbursement will eliminate the
risk of delays in processing loan
disbursement installments, advance the
goal of payroll continuity for employees,
and provide borrowers with faster
access to the full loan amount so that
they can immediately cover payroll
costs.
b. By when must a lender
electronically submit an SBA Form 1502
indicating that PPP loan funds have
been disbursed?
SBA will make available a specific
SBA Form 1502 reporting process
through which PPP lenders will report
on PPP loans and collect the processing
fee on fully disbursed loans to which
they are entitled. Lenders must
electronically upload SBA Form 1502
information within 20 calendar days
after a PPP loan is approved or, for loans
approved before availability of the
updated SBA Form 1502 reporting
process, by May 18, 2020. The lender
must report on SBA Form 1502 whether
it has fully disbursed PPP loan
proceeds. A lender will not receive a
processing fee: (1) Prior to full
disbursement of the PPP loan; (2) if the
PPP loan is cancelled before
disbursement; or (3) if the PPP loan is
cancelled or voluntarily terminated and
repaid after disbursement (including if a
borrower repays the PPP loan proceeds
to conform to the borrower’s
certification regarding the necessity of
the PPP loan request). In addition to
providing ACH credit information to
direct payment of the requested
processing fee, lenders will be required
to confirm that all PPP loans for which
the lender is requesting a processing fee
have been fully disbursed on the
disbursement dates and in the loan
amounts reported. A lender must report
through either Etran Servicing or the
SBA Form 1502 report any PPP loans
that have been cancelled before
disbursement or that have been
cancelled or voluntarily terminated and
repaid after disbursement.
The Administrator, in consultation
with the Secretary, determined that
requiring lenders to report on
disbursement within 20 calendar days
of loan approval ensures that
disbursement of funds to eligible
borrowers will occur more rapidly. This
requirement also will enhance SBA’s
ability to track program data.
2. Additional Information
SBA may provide further guidance, if
needed, through SBA notices that will
be posted on SBA’s website at
www.sba.gov. Questions on the
Paycheck Protection Program may be
directed to the Lender Relations
Specialist in the local SBA Field Office.
The local SBA Field Office may be
found at https://www.sba.gov/tools/
local-assistance/districtoffices.
Compliance With Executive Orders
12866, 12988, 13132, 13563, and 13771,
the Paperwork Reduction Act (44
U.S.C. Ch. 35), and the Regulatory
Flexibility Act (5 U.S.C. 601–612)
Executive Orders 12866, 13563, and
13771
This interim final rule is
economically significant for the
purposes of Executive Orders 12866 and
13563, and is considered a major rule
under the Congressional Review Act.
SBA, however, is proceeding under the
emergency provision at Executive Order
12866 Section 6(a)(3)(D) based on the
need to move expeditiously to mitigate
the current economic conditions arising
from the COVID–19 emergency. This
rule’s designation under Executive
Order 13771 will be informed by public
comment.
Executive Order 12988
SBA has drafted this rule, to the
extent practicable, in accordance with
the standards set forth in section 3(a)
and 3(b)(2) of Executive Order 12988, to
minimize litigation, eliminate
ambiguity, and reduce burden. The rule
has no preemptive or retroactive effect.
Executive Order 13132
SBA has determined that this rule
will not have substantial direct effects
on the States, on the relationship
between the National Government and
the States, or on the distribution of
power and responsibilities among the
various layers of government. Therefore,
SBA has determined that this rule has
no federalism implications warranting
preparation of a federalism assessment.
Paperwork Reduction Act, 44 U.S.C.
Chapter 35
SBA has determined that this rule
will not impose new or modify existing
recordkeeping or reporting requirements
under the Paperwork Reduction Act.
Regulatory Flexibility Act (RFA)
The Regulatory Flexibility Act (RFA)
generally requires that when an agency
issues a proposed rule, or a final rule
pursuant to section 553(b) of the APA or
another law, the agency must prepare a
regulatory flexibility analysis that meets
the requirements of the RFA and
publish such analysis in the Federal
Register. 5 U.S.C. 603, 604. Specifically,
the RFA normally requires agencies to
describe the impact of a rulemaking on
small entities by providing a regulatory
impact analysis. Such analysis must
address the consideration of regulatory
options that would lessen the economic
effect of the rule on small entities. The
RFA defines a ‘‘small entity’’ as (1) a
proprietary firm meeting the size
standards of the Small Business
Administration (SBA); (2) a nonprofit
organization that is not dominant in its
field; or (3) a small government
jurisdiction with a population of less
than 50,000. 5 U.S.C. 601(3)–(6). Except
for such small government jurisdictions,
neither State nor local governments are
‘‘small entities.’’ Similarly, for purposes
of the RFA, individual persons are not
small entities. The requirement to
conduct a regulatory impact analysis
does not apply if the head of the agency
‘‘certifies that the rule will not, if
promulgated, have a significant
economic impact on a substantial
number of small entities.’’ 5 U.S.C.
605(b). The agency must, however,
publish the certification in the Federal
Register at the time of publication of the
rule, ‘‘along with a statement providing
the factual basis for such certification.’’
If the agency head has not waived the
requirements for a regulatory flexibility
analysis in accordance with the RFA’s
waiver provision, and no other RFA
exception applies, the agency must
prepare the regulatory flexibility
analysis and publish it in the Federal
Register at the time of promulgation or,
if the rule is promulgated in response to
an emergency that makes timely
compliance impracticable, within 180
days of publication of the final rule. 5
U.S.C. 604(a), 608(b).
Rules that are exempt from notice and
comment are also exempt from the RFA
requirements, including conducting a
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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. Accordingly,
SBA is not required to conduct a
regulatory flexibility analysis.
Jovita Carranza,
Administrator.
[FR Doc. 2020–09398 Filed 5–1–20; 8:45 am]
BILLING CODE P
SMALL BUSINESS ADMINISTRATION
13 CFR Part 120
[Docket Number SBA–2020–0023]
RIN 3245–AH39
Business Loan Program Temporary
Changes; Paycheck Protection
Program—Requirements—Corporate
Groups and Non-Bank and Non-
Insured Depository Institution Lenders
AGENCY: U. S. Small Business
Administration.
ACTION: Interim final rule.
SUMMARY: On April 2, 2020, the U.S.
Small Business Administration (SBA)
posted an interim final rule announcing
the implementation of the Coronavirus
Aid, Relief, and Economic Security Act
(CARES Act). The CARES Act
temporarily adds a new program, titled
the ‘‘Paycheck Protection Program,’’ to
the SBA’s 7(a) Loan Program. The
CARES Act also provides for forgiveness
of up to the full principal amount of
qualifying loans guaranteed under the
Paycheck Protection Program (PPP). The
PPP is intended to provide economic
relief to small businesses nationwide
adversely impacted by the Coronavirus
Disease 2019 (COVID–19). SBA posted
additional interim final rules on April 3,
2020, April 14, 2020, April 24, 2020,
and April 28, 2020, and the Department
of the Treasury posted an additional
interim final rule on April 28, 2020.
This interim final rule supplements the
previously posted interim final rules by
limiting the amount of PPP loans that
any single corporate group may receive
and provides additional guidance on the
criteria for non-bank lender
participation in the PPP, and requests
public comment.
DATES:
Effective date: This rule is effective
May 4, 2020.
Applicability date: This interim final
rule applies to applications submitted
under the Paycheck Protection Program
through June 30, 2020, or until funds
made available for this purpose are
exhausted.
Comment date: Comments must be
received on or before June 3, 2020.
ADDRESSES: You may submit comments,
identified by number SBA–2020–0023
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, tribal, and local public
health measures that are being taken to
minimize the public’s exposure to the
virus. These measures, some of which
are government-mandated, are being
implemented nationwide and include
the closures of restaurants, bars, and
gyms. In addition, based on the advice
of public health officials, other
measures, such as keeping a safe
distance from others or even stay-at-
home orders, are being implemented,
resulting in a dramatic decrease in
economic activity as the public avoids
malls, retail stores, and other
businesses.
On March 27, 2020, the President
signed the Coronavirus Aid, Relief, and
Economic Security Act (the CARES Act)
(Pub. L. 116–136) to provide emergency
assistance and health care response for
individuals, families, and businesses
affected by the coronavirus pandemic.
The Small Business Administration
(SBA) received funding and authority
through the CARES Act to modify
existing loan programs and establish a
new loan program to assist small
businesses nationwide adversely
impacted by the COVID–19 emergency.
Section 1102 of the CARES Act
temporarily permits SBA to guarantee
100 percent of 7(a) loans under a new
program titled the ‘‘Paycheck Protection
Program.’’ Section 1106 of the CARES
Act provides for forgiveness of up to the
full principal amount of qualifying
loans guaranteed under the Paycheck
Protection Program. 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 Paycheck Protection
Program.
As described below, to preserve the
limited resources available to the PPP
program, this interim final rule limits
the aggregate amount of PPP loans that
any single corporate group may receive.
This interim final rule also provides
additional guidance regarding lenders
eligible to make PPP loans.
II. Comments and Immediate Effective
Date
The intent of the CARES Act is that
SBA provide relief to America’s small
businesses expeditiously. This intent,
along with the dramatic decrease in
economic activity nationwide, provides
good cause for SBA to dispense with the
30-day delayed effective date provided
in the Administrative Procedure Act.
Specifically, it is critical to meet
lenders’ and borrowers’ need for clarity
concerning program requirements as
rapidly as possible because the last day
eligible borrowers can apply for and
receive a loan is June 30, 2020.
This interim final rule supplements
previous regulations and guidance on
certain important, discrete issues. The
immediate effective date of this interim
final rule will benefit lenders so that
they can swiftly close and disburse
loans to small businesses. This interim
final rule is effective without advance
notice and public comment because
section 1114 of the CARES Act
authorizes SBA to issue regulations to
implement Title I of the CARES Act
without regard to notice requirements.
This rule is being issued to allow for
immediate implementation of this
program. Although this interim final
rule is effective immediately, comments
are solicited from interested members of
the public on all aspects of this interim
final rule, including section III below.
These comments must be submitted on
or before June 3, 2020. SBA will
consider these comments and the need
for making any revisions as a result of
these comments.
VerDate Sep<11>2014 16:47 May 01, 2020 Jkt 250001 PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 E:\FR\FM\04MYR1.SGM 04MYR1
jbell on DSKJLSW7X2PROD with RULES

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