Rules and Regulations — Paycheck Protection Program — Loan Increases (Federal Register, Vol. 85, No. 97, May 19, 2020)

Summary

This Small Business Administration interim final rule, titled Paycheck Protection Program—Loan Increases, appears in the Federal Register of May 19, 2020. It authorizes all PPP lenders to increase existing PPP loans to partnerships or seasonal employers to include amounts to cover partner compensation under the April 14, 2020 interim final rule, or to let a seasonal employer calculate its maximum loan amount using the alternative criterion posted on April 28, 2020. It states that the increased loan amount may not exceed the maximum loan amount allowed under the PPP, which is $10 million for an individual borrower or $20 million for a corporate group. A lender may make a single additional disbursement of the increased loan proceeds before submitting the initial SBA Form 1502 report for that loan.

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

29842 Federal Register/Vol. 85, No. 97/Tuesday, May 19, 2020/Rules and Regulations
§217.301 [Amended]
■ 4. Amend §217.301 by:
■ a. In paragraphs (b)(1) and (d)
introductory, remove ‘‘U.S. GAAP’’ and
add in its place ‘‘GAAP’’; and
■ b. In paragraph (c)(2) introductory
text, add ‘‘or Category III’’ after the
phrase ‘‘an advanced approaches’’ and
‘‘its applicable’’ after the words ‘‘its
calculation of’’;
■ c. In paragraph (d)(2)(i) introductory
text, remove the phrase ‘‘in a first’’ and
add in its place ‘‘in its first’’; and
■ d. In paragraph (d)(2)(ii) introductory
text, add ‘‘or Category III’’ after the
phrase ‘‘An advanced approaches’’ and
‘‘its applicable’’ after the words ‘‘its
calculation of’’.
Federal Deposit Insurance Corporation
12 CFR Chapter III
Authority and Issuance
For the reasons set forth in the joint
preamble, chapter III of title 12 of the
Code of Federal Regulations is amended
as follows:
PART 324—CAPITAL ADEQUACY OF
FDIC-SUPERVISED INSTITUTIONS
■ 5. The authority citation for part 324
continues to read as follows:
Authority: 12 U.S.C. 1815(a), 1815(b),
1816, 1818(a), 1818(b), 1818(c), 1818(t),
1819(Tenth), 1828(c), 1828(d), 1828(i),
1828(n), 1828(o), 1831o, 1835, 3907, 3909,
4808; 5371; 5412; Pub. L. 102–233, 105 Stat.
1761, 1789, 1790 (12 U.S.C. 1831n note); Pub.
L. 102–242, 105 Stat. 2236, 2355, as amended
by Pub. L. 103–325, 108 Stat. 2160, 2233 (12
U.S.C. 1828 note); Pub. L. 102–242, 105 Stat.
2236, 2386, as amended by Pub. L. 102–550,
106 Stat. 3672, 4089 (12 U.S.C. 1828 note);
Pub. L. 111–203, 124 Stat. 1376, 1887 (15
U.S.C. 78o–7 note); Pub. L. 115–174; Pub. L.
116–136, 134 Stat. 281.
■ 6. Amend §324.301 as follows:
■ a. Revise paragraph (b)(1);
■ b. In paragraph (b)(2), remove the
phrase ‘‘FDIC-supervised’s adoption’’
and add in its place ‘‘FDIC-supervised
institution’s adoption’’;
■ c. In paragraph (c)(2) introductory
text, add ‘‘or Category III’’ after the
phrase ‘‘an advanced approaches’’ and
‘‘its applicable’’ after the words ‘‘its
calculation of’’;
■ d. Revise paragraph (d) introductory
text;
■ e. In paragraph (d)(2)(i) introductory
text, remove the phrase ‘‘in its a’’ and
add in its place ‘‘in its first’’;
■ f. In paragraph (d)(2)(i)(C), remove the
phrase ‘‘fifty percent of its AACL
transitional amount’’ and add in its
place ‘‘fifty percent of its modified
AACL transitional amount’’ and remove
the phrase ‘‘twenty-five percent of its
AACL transitional amount’’ and add in
its place ‘‘twenty-five percent of its
modified AACL transitional amount’’;
■ g. In paragraph (d)(2)(ii) introductory
text, add ‘‘or Category III’’ after the
phrase ‘‘An advanced approaches’’,
remove the phrase ‘‘for the fiscal year
that begins during the 2020 calendar
year’’ and add in its place ‘‘during
2020’’, and add ‘‘its applicable’’ after the
words ‘‘its calculation of’’; and
■ h. In paragraph (d)(2)(ii)(A), remove
the phrase ‘‘fifty percent of its CECL
transitional amount’’ and add in its
place the phrase ‘‘fifty percent of its
modified CECL transitional amount’’
and remove the phrase ‘‘twenty-five
percent of its CECL transitional
amount’’ and add in its place ‘‘twenty-
five percent of its modified CECL
transitional amount’’.
The revisions read as follows:
§324.301 Current expected credit losses
(CECL) transition.
* * * * *
(b) * * *
(1) Transition period means the three-
year period, beginning the first day of
the fiscal year in which an FDIC-
supervised institution adopts CECL and
reflects CECL in its first Call Report
filed after that date; or, for the 2020
transition under paragraph (d) of this
section, the five-year period beginning
on the earlier of the date an FDIC-
supervised institution was required to
adopt CECL for accounting purposes
under GAAP (as in effect on January 1,
2020), or the first day of the quarter in
which the FDIC-supervised institution
files regulatory reports that include
CECL.
* * * * *
(d) Calculation of the five-year CECL
transition provision. An FDIC-
supervised institution that was required
to adopt CECL for accounting purposes
under GAAP (as in effect January 1,
2020) as of the first day of a fiscal year
that begins during the 2020 calendar
year, and that makes the election
described in paragraph (a)(1) of this
section, may use the transitional
amounts and modified transitional
amounts in paragraph (d)(1) of this
section with the 2020 CECL transition
calculation in paragraph (d)(2) of this
section to adjust its calculation of
regulatory capital ratios during each
quarter of the transition period in which
an FDIC-supervised institution uses
CECL for purposes of its Call Report. An
FDIC supervised-institution that did not
make the election described in
paragraph (a)(1) of this section because
it did not record a reduction in retained
earnings due to the adoption of CECL as
of the beginning of the fiscal year in
which the FDIC-supervised institution
adopted CECL may use the transition
provision in this paragraph (d) if it has
a positive modified CECL transitional
amount during any quarter ending in
2020 and makes the election in the Call
Report filed for the same quarter.
* * * * *
Brian Brooks,
First Deputy Comptroller, Comptroller of the
Currency.
Board of Governors of the Federal Reserve
System.
Ann Misback,
Secretary of the Board.
Federal Deposit Insurance Corporation.
Dated at Washington, DC, on April 13,
2020.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2020–08789 Filed 5–18–20; 8:45 am]
BILLING CODE 4810–33–P 6210–01–P; 6714–01–P
SMALL BUSINESS ADMINISTRATION
13 CFR Part 120
[Docket Number SBA–2020–2028]
RIN 3245–AH42
Business Loan Program Temporary
Changes; Paycheck Protection
Program—Loan Increases
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,
April 28, 2020, April 30, 2020, May 5,
2020, and May 8, 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 providing
guidance on the ability to increase
certain PPP loans, and requests public
comment.
VerDate Sep<11>2014 17:20 May 18, 2020 Jkt 250001 PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 E:\FR\FM\19MYR1.SGM 19MYR129843 Federal Register/Vol. 85, No. 97/Tuesday, May 19, 2020/Rules and Regulations
DATES:
Effective date: This rule is effective
May 19, 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 18, 2020.
ADDRESSES: You may submit comments,
identified by number SBA–2020–2028
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 stay-at-home
orders, are being implemented, resulting
in a dramatic decrease in economic
activity as the public limits activity at
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 (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.
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 an
important, discrete issue. 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. In addition, SBA has
determined that there is good cause for
dispensing with advance public notice
and comment on the ground that it
would be contrary to the public interest.
Specifically, SBA has determined that
advance public notice and comment
would delay the ability of certain
businesses to obtain increases in their
PPP loan amounts in order to ensure
they obtain the maximum amount that
they are eligible for under current
guidance (guidance that was not
available at the time their PPP loans
were approved). 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 18, 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 Loan Increases
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 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 interim final rules published by SBA
and the Department of the Treasury in
the Federal Register (85 FR 20811, 85
FR 20817, 85 FR 21747, 85 FR 23450,
85 FR 23917, 85 FR 26321, 85 FR 26324,
85 FR 27287), and an additional SBA
interim final rule entitled ‘‘Business
Loan Program Temporary Changes;
Paycheck Protection Program—
Requirements—Extension of Limited
Safe Harbor with Respect to
Certification Concerning Need for PPP
Loan Request,’’ which SBA posted on
May 8, 2020, and is published
elsewhere in this issue of the Federal
Register (collectively, the PPP Interim
Final Rules).
On April 14, 2020, SBA posted an
interim final rule that, among other
things, provided guidance for
individuals with self-employment
income (85 FR 21747). The interim final
rule stated, ‘‘if you are a partner in a
partnership, you may not submit a
separate PPP loan application for
yourself as a self-employed individual.
Instead, the self-employment income of
general active partners may be reported
as a payroll cost, up to $100,000
annualized, on a PPP loan application
filed by or on behalf of the partnership.’’
On April 28, 2020, the Department of
the Treasury posted an interim final rule
that provided an alternative criterion for
calculating the maximum loan amount
for PPP loans issued to seasonal
employers (85 FR 23917).
Some PPP loans were approved to
partnerships or seasonal employers
before the additional guidance was
VerDate Sep<11>2014 17:20 May 18, 2020 Jkt 250001 PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 E:\FR\FM\19MYR1.SGM 19MYR129844 Federal Register/Vol. 85, No. 97/Tuesday, May 19, 2020/Rules and Regulations
1 SBA extended the deadline for submission of
the initial SBA Form 1502 for such loans from May
18, 2020 to May 22, 2020, in its interim final rule
posted on May 8, 2020.
2 As set forth in the interim final rule posted on
April 14, 2020, a partner in a partnership may not
submit a separate PPP loan application as a self-
employed individual. Instead, the self-employment
income of general active partners may be reported
as a payroll cost, up to $100,000 annualized, on a
PPP loan application filed by or on behalf of the
partnership.
issued and, as a result, those businesses
may not have received PPP loans in the
maximum amount for which they are
eligible. This interim final rule
authorizes all PPP lenders to increase
existing PPP loans to partnerships or
seasonal employers to include
appropriate amounts to cover partner
compensation in accordance with the
interim final rule posted on April 14,
2020, or to permit the seasonal
employer to calculate its maximum loan
amount using the alternative criterion
posted on April 28, 2020.
In addition, although the interim final
rule on disbursements posted on April
28, 2020, requires PPP loans to be
disbursed in a single disbursement, if a
PPP loan that is increased has already
been disbursed, this interim final rule
authorizes the lender to make an
additional disbursement of the
increased loan proceeds prior to
submission of the initial SBA Form
1502 that includes that loan. SBA Form
1502 is required to be submitted 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 22,
2020.1
1. Loan Increases
a. If a partnership received a PPP loan
that did not include any compensation
for its partners, can the loan amount be
increased to include partner
compensation?
Yes. If a partnership received a PPP
loan that only included amounts
necessary for payroll costs of the
partnership’s employees and other
eligible operating expenses, but did not
include any amount for partner
compensation,2 the lender may
electronically submit a request through
SBA’s E-Tran Servicing site to increase
the PPP loan amount to include
appropriate partner compensation, even
if the loan has been fully disbursed,
provided that the lender’s first SBA
Form 1502 report to SBA on the PPP
loan has not been submitted. After the
initial SBA Form 1502 report on the PPP
loan has been submitted to SBA, or after
the date the first SBA Form 1502 was
required to be submitted to SBA, the
loan cannot be increased. In no event
can the increased loan amount exceed
the maximum loan amount allowed
under the PPP Program, which is $10
million for an individual borrower or
$20 million for a corporate group.
Additionally, the borrower must
provide the lender with required
documentation to support the
calculation of the increase.
The interim final rule posted on April
14, 2020, describes how partnerships,
rather than individual partners are
eligible for a PPP loan. The interim final
rule further explained that the self-
employment income of general active
partners could be reported as a payroll
cost, up to $100,000 annualized, on a
PPP loan application filed by or on
behalf of the partnership. Guidance
describing how to calculate partnership
PPP loan amounts and defining the self-
employment income of partners was
posted on April 24, 2020 (see How to
Calculate Maximum Loan Amounts,
Question 4 at https://www.sba.gov/sites/
default/files/2020-04/How-to-Calculate-
Loan-Amounts.pdf).
b. If a seasonal employer received a
PPP loan before the alternative criterion
for determining the maximum loan
amount for seasonal employers became
available, can the loan amount be
increased based on a revised calculation
using the alternative criterion?
Yes. If a seasonal employer received
a PPP loan before the alternative
criterion for such employers was posted
on April 28, 2020, and would be eligible
for a higher maximum loan amount
under the alternative criterion, the
lender may electronically submit a
request through SBA’s E-Tran Servicing
site to increase the PPP loan amount,
even if the loan has been fully
disbursed, provided that the lender’s
first SBA Form 1502 report to SBA on
the PPP loan has not been submitted.
After the initial SBA Form 1502 report
has been submitted to SBA, or after the
date the initial SBA Form 1502 report
was required to be submitted to SBA,
the loan cannot be increased. In no
event can the increased loan amount
exceed the maximum loan amount
allowed under the PPP Program, which
is $10 million for an individual
borrower or $20 million for a corporate
group. Additionally, the borrower must
provide the lender with required
documentation to support the
calculation of the increase.
2. Disbursements and 1502 Reporting on
Increased PPP Loans
a. If a borrower’s PPP loan has
already been fully disbursed, can the
lender make an additional disbursement
for the increased loan proceeds?
Yes. Notwithstanding the requirement
set forth in paragraph 1.a. of the interim
final rule on disbursements posted on
April 28, 2020, i.e., that lenders make a
one-time, full disbursement of the PPP
loan within ten calendar days of loan
approval, if a PPP loan is increased
under paragraphs 1.a. or b. above, the
lender may make a single additional
disbursement of the increased loan
proceeds prior to submission of the
initial SBA Form 1502 report for that
loan.
b. How do lenders report
disbursements on PPP loans that are
increased and does the increase in the
loan delay the timeframe to report the
loan on the SBA Form 1502?
SBA set forth in the interim final rule
on disbursements and 1502 reporting
posted on April 28, 2020, the process
lenders must follow to electronically
upload SBA Form 1502 information on
PPP loans. The interim final rule
provided that lenders must submit the
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. In its interim final rule posted on
May 8, 2020, SBA revised that date from
May 18, 2020 to May 22, 2020. Lenders
must comply with the initial 1502
reporting deadline. SBA may review at
any time an increase submitted by the
lender to confirm that the increase was
submitted within the required
timeframe; increases submitted outside
the required timeframe will not be
forgiven and no processing fee will be
earned on such amounts. Additionally,
lenders are not entitled to processing
fees on increases submitted outside of
the required timeframe.
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
VerDate Sep<11>2014 17:20 May 18, 2020 Jkt 250001 PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 E:\FR\FM\19MYR1.SGM 19MYR129845 Federal Register/Vol. 85, No. 97/Tuesday, May 19, 2020/Rules and Regulations
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 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. 2020–10658 Filed 5–18–20; 8:45 am]
BILLING CODE P
SMALL BUSINESS ADMINISTRATION
13 CFR Part 120
[Docket Number SBA–2020–0026]
RIN 3245–AH41
Business Loan Program Temporary
Changes; Paycheck Protection
Program—Requirements—Extension
of Limited Safe Harbor With Respect to
Certification Concerning Need for PPP
Loan Request
AGENCY: U.S. Small Business
Administration.
ACTION: Interim final rule.
SUMMARY: On April 24, 2020, the U.S.
Small Business Administration (SBA)
posted an interim final rule relating to
promissory notes, authorizations,
affiliation, and eligibility in connection
with the implementation of a temporary
new program, titled the ‘‘Paycheck
Protection Program.’’ The Paycheck
Protection Program was established
under the Coronavirus Aid, Relief, and
Economic Security Act (CARES Act or
the Act). This interim final rule revises
the interim final rule posted on April
24, 2020, by extending the date by
which certain Paycheck Protection
Program borrowers may repay their
loans from May 7, 2020 to May 14, 2020,
in order to avail themselves of a safe
harbor with respect to a certification
required by the Act, and makes other
conforming changes. This interim final
rule supplements SBA’s implementation
of the Act and requests public comment.
DATES:
Effective date: This rule is effective
May 19, 2020.
Applicability date: This interim final
rule applies to borrowers who applied
for loans under the Paycheck Protection
Program.
Comment date: Comments must be
received on or before June 18, 2020.
ADDRESSES: You may submit comments,
identified by number SBA–2020–0026
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
VerDate Sep<11>2014 17:20 May 18, 2020 Jkt 250001 PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 E:\FR\FM\19MYR1.SGM 19MYR1

File and source

File

department-of-the-treasury-interim-final-rule-on-loan-increases-home-treasury-gov-system-files-136-i-6b93e56b2a.pdf

Size

280,394 bytes

SHA-256

60e99f10240e1ccc088d78c4aa69c8a0d10ac35c02dbbd07a828b917233d4f83

Our copy

department-of-the-treasury-interim-final-rule-on-loan-increases-home-treasury-gov-system-files-136-i-6b93e56b2a.pdf

Original

home.treasury.gov