State Small Business Credit Initiative; Demographics-Related Reporting Requirements (rule, 87 FR 13628, March 10, 2022)
Summary
An interim final rule of the Department of the Treasury, "State Small Business Credit Initiative; Demographics-Related Reporting Requirements" (31 CFR Part 35, RIN 1505–AC79), printed in the Federal Register of Thursday, March 10, 2022 (Vol. 87, No. 47). The Secretary of the Treasury issues it to institute reporting requirements related to the demographics of those who own or control small businesses that receive support under the State Small Business Credit Initiative (SSBCI). The rule states that the American Rescue Plan Act of 2021 (ARPA) reauthorized and amended the Small Business Jobs Act of 2010 (SBJA) to provide $10 billion to fund SSBCI. It is effective March 9, 2022. The same pages open with an export-control amendment adding an entry for "South Korea" to part 746.
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
Cite this document
“State Small Business Credit Initiative; Demographics-Related Reporting Requirements (rule, 87 FR 13628, March 10, 2022).”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/state-small-business-credit-initiative-demographics-related-reporting-6c335d10a9/
, SHA-256 00e3035ffa162d2a73e296acf496f34850e5b39cb22d5bed15976ba510ba819d.Full text
13628 Federal Register / Vol. 87, No. 47 / Thursday, March 10, 2022 / Rules and Regulations
relief from the burden of the new Russia military or foreign affairs function of the Authority: 50 U.S.C. 4801–4852; 50 U.S.C.
Sanctions rule and Belarus Sanctions United States (5 U.S.C. 553(a)(1)). 4601 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C.
rule requirements that would otherwise 5. Because a notice of proposed 287c; Sec. 1503, Pub. L. 108–11, 117 Stat.
pertain to items produced in, exported rulemaking and an opportunity for 559; 22 U.S.C. 2151 note; 22 U.S.C. 6004; 22
or reexported from South Korea, or public comment are not required to be U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O.
transferred (in-country). Thus, this rule given for this rule by 5 U.S.C. 553, or 12854, 58 FR 36587, 3 CFR, 1993 Comp., p.
does not create a substantive change to by any other law, the analytical 614; E.O. 12918, 59 FR 28205, 3 CFR, 1994
OMB Control Numbers 0694–0088, requirements of the Regulatory Comp., p. 899; E.O. 13222, 66 FR 44025, 3
0694–0096, or 0607–0152. Flexibility Act, 5 U.S.C. 601, et seq., are CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR
3. This rule does not contain policies not applicable. Accordingly, no 26751, 3 CFR, 2004 Comp., p 168;
regulatory flexibility analysis is Presidential Determination 2003–23, 68 FR
with federalism implications as that
required, and none has been prepared. 26459, 3 CFR, 2004 Comp., p. 320;
term is defined in Executive Order
Presidential Determination 2007–7, 72 FR
13132. List of Subjects in 15 CFR Part 746 1899, 3 CFR, 2006 Comp., p. 325; Notice of
4. Pursuant to section 1762 of the Exports, Reporting and recordkeeping May 6, 2021, 86 FR 26793 (May 10, 2021).
Export Control Reform Act of 2018 (50 requirements.
U.S.C. 4821) (ECRA), this action is ■ 2. Supplement no. 3 to part 746 is
For the reasons stated in the
exempt from the Administrative amended by adding an entry for ‘‘South
preamble, part 746 of the Export
Procedure Act (APA) (5 U.S.C. 553) Korea’’ in alphabetical order to read as
Administration Regulations (15 CFR
requirements for notice of proposed follows:
parts 730 through 774) is amended as
rulemaking, opportunity for public
follows: Supplement No. 3 to Part 746—
participation, and delay in effective
date. While section 1762 of ECRA PART 746—EMBARGOES AND OTHER Countries Excluded From Certain
provides sufficient authority for such an SPECIAL CONTROLS License Requirements of § 746.8
exemption, this action is also * * * * *
independently exempt from these APA ■ 1. The authority citation for 15 CFR
requirements because it involves a part 746 continues to read as follows:
Country Scope Federal Register citation
* * * * * * *
South Korea .................................................. Full ............................................................... 87 FR [INSERT FR PAGE NUMBER] 3/10/2022.
* * * * * * *
Thea D. Rozman Kendler, Comment date: Comments must be FOR FURTHER INFORMATION CONTACT: Jeff
Assistant Secretary for Export received on or before April 11, 2022. Stout, Director, Office of Federal
Administration. Program Finance, at (202) 622–2059 or
ADDRESSES: Please submit comments
[FR Doc. 2022–05025 Filed 3–4–22; 4:15 pm]
electronically through the Federal ssbci_information@treasury.gov.
BILLING CODE 3510–33–P
eRulemaking Portal: https:// SUPPLEMENTARY INFORMATION:
www.regulations.gov. Comments can be
mailed to the Office of Recovery I. Background
DEPARTMENT OF THE TREASURY Programs, Department of the Treasury, The American Rescue Plan Act of
1500 Pennsylvania Avenue NW, 2021 (ARPA) reauthorized and amended
31 CFR Part 35 Washington, DC 20220. Because postal the Small Business Jobs Act of 2010
mail may be subject to processing delay, (SBJA) to provide $10 billion to fund the
RIN 1505–AC79
it is recommended that comments be State Small Business Credit Initiative
State Small Business Credit Initiative; submitted electronically. All comments
(SSBCI) as a response to the economic
Demographics-Related Reporting should be captioned with ‘‘SSBCI
effects of the COVID–19 pandemic.1
Requirements Interim Final Rule Comments.’’ Please
SSBCI is a federal program administered
include your name, organization
AGENCY: Department of the Treasury.
by the U.S. Department of the Treasury
affiliation, address, email address and
(Treasury) that was created to
ACTION: Interim final rule. telephone number in your comment.
strengthen the programs of eligible
Where appropriate, a comment should
SUMMARY: The Secretary of the Treasury jurisdictions that support private
include a short executive summary. In
is issuing this interim final rule to financing for small businesses. Eligible
general, comments received will be
institute the reporting requirements jurisdictions include states, territories,
posted on https://www.regulations.gov
related to demographics of those who Tribal governments, and eligible
without change, including any business
own or control small businesses that municipalities. SSBCI is expected to, in
or personal information provided.
receive a loan, investment, other credit conjunction with new small business
Comments received, including
khammond on DSKJM1Z7X2PROD with RULES
or equity support, or technical financing, create billions of dollars in
attachments and other supporting
assistance under the State Small lending to, and investments in, small
materials, will be part of the public
Business Credit Initiative under the businesses.
record and subject to public disclosure.
American Rescue Plan Act of 2021. Do not enclose any information in your 1 ARPA, Public Law 117–2, sec. 3301, codified at
DATES: comment or supporting materials that 12 U.S.C. 5701 et seq. SSBCI was originally
Effective date: This interim final rule you consider confidential or established in Title III of the Small Business Jobs
is effective March 9, 2022. inappropriate for public disclosure. Act of 2010.
VerDate Sep<11>2014 15:49 Mar 09, 2022 Jkt 256001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\10MRR1.SGM 10MRR1
Federal Register / Vol. 87, No. 47 / Thursday, March 10, 2022 / Rules and Regulations 13629
II. Summary of the Interim Final Rule nondiscriminatory uses of federal funds, choose ‘‘prefer not to respond’’ or to not
where such laws are applicable to a respond by leaving the request blank.
A. Authority, Scope, and Purpose
participating jurisdiction and any This interim final rule does not require
Treasury has authority under the contracted entity operating SSBCI verification of responses provided by
SSBCI statute to issue a rule on programs on the jurisdiction’s behalf participating small businesses. Treasury
collecting demographics-related data of because all SSBCI funds are considered believes that requiring verification of
those who own or control small federal financial assistance for purposes small business-provided responses
businesses that participate in SSBCI for of such requirements. These legal would greatly increase the operational
purposes of implementation, requirements include, but are not burden of the interim final rule.
compliance and reporting, and limited to, Title VI of the Civil Rights Finally, this interim final rule is
understanding program outcomes.2 Act of 1964 and Treasury’s regulations important for understanding SSBCI
First, issuing this interim final rule is at 31 CFR part 22, which require program outcomes. Such information
important for the implementation of and recipients of SSBCI funding to maintain will allow Treasury to analyze and
compliance with the program and submit racial and ethnic data of report on the populations that SSBCI
requirements regarding allocations beneficiaries that receive Federal funding is benefiting.
related to business enterprises that are financial assistance.8
owned and controlled by socially and B. Definitions and Reporting
Third, issuing this interim final rule
economically disadvantaged individuals Requirements
is important for SSBCI implementation
(SEDI-owned and controlled and compliance because some Under this interim final rule, each
businesses). ARPA provides $1.5 billion participating jurisdictions will partner jurisdiction that participates in SSBCI
of capital funding to be allocated based with lenders or other financial entities must submit an annual report to
on the needs of SEDI-owned and that are subject to laws that prohibit Treasury that includes the following
controlled businesses (SEDI allocation),3 these entities from inquiring about the data: Self-certified SEDI demographics-
$1.0 billion of capital funding for an race, color, religion, national origin, or related business status; minority-owned
incentive program for jurisdictions that sex of an applicant or any other person or controlled business status; women-
demonstrate robust support for SEDI- in connection with a credit transaction, owned or controlled business status;
owned and controlled businesses in the unless such information is required by veteran-owned or controlled business
deployment of previously allocated a regulation, order, or agreement issued status; and the race, ethnicity, gender,
SSBCI capital funding (SEDI incentive by, or entered into with, an enforcement sexual orientation, Middle Eastern or
allocation),4 and $500 million for agency or a court to monitor or enforce North African ancestry, and veteran
technical assistance to, in part, SEDI- compliance with federal or state statutes status with which principal owners
owned and controlled businesses.5 or regulations. For example, under 12 identify. For each business that receives
ARPA also states that the $1.5 billion CFR part 1002 (Regulation B) a loan, investment, or other credit or
SEDI allocation must be expended for implementing the Equal Credit equity support under the SSBCI, the
SEDI-owned and controlled businesses.6 Opportunity Act, creditors are generally reported data must be based on the
The $1.5 billion SEDI allocation and prohibited from inquiring about the ownership and control of the business
$1.0 billion SEDI incentive allocation race, color, religion, national origin, or immediately before the consummation
are intended to address the widespread sex of an applicant or any other person of such loan, investment, or other credit
challenges that these businesses have in connection with a credit transaction, or equity support-related transaction.
faced in light of the COVID–19 unless an exception applies.9 One For each business that receives
pandemic.7 The technical assistance exception is for certain required technical assistance under the SSBCI,
funding is to help, in part, SEDI-owned information collection ‘‘to monitor or the reported data must be based on the
and controlled businesses that are enforce compliance with the [Equal ownership and control of the business at
applying to receive a loan, investment, Credit Opportunity] Act, [Regulation B], the time it receives such technical
or other credit or equity support under or other Federal or state statutes or assistance. The self-certified SEDI
the SSBCI. The information reported regulations.’’ 10 This interim final rule demographics-related business status
under this interim final rule will help will facilitate the collection of variable reflects one group of SEDI-
Treasury determine the extent to which information that might not otherwise be owned and controlled businesses on
SSBCI funds have been provided to collected by creditors who will be which jurisdictions may expend their
SEDI-owned and controlled businesses. SSBCI lenders. Treasury expects that, in portion of the $1.5 billion SEDI
Second, this interim final rule is being accordance with this interim final rule, allocation and their portion of technical
issued to ensure compliance with legal participating jurisdictions will contract assistance funding.11 Loan, investment,
requirements related to with lenders and other financial entities or other credit or equity support-related
nondiscrimination and to implement SSBCI programs and transactions conducted with self-
collect this information. Lenders and certified SEDI demographics-related
2 See 12 U.S.C. 5706, 5709.
other financial entities participating in businesses may also count toward
3 12 U.S.C. 5702(d)(2).
SSBCI must request the demographic earning a participating jurisdiction’s
4 12 U.S.C. 5702(e).
5 12 U.S.C. 5708(e). information described in this interim portion of the $1.0 billion SEDI
6 12 U.S.C. 5702(d)(1). final rule, and collect and report such incentive allocation. The definition of
7 See, e.g., Cong. Rec. H1283 (Statement of Rep. information certified by authorized ‘‘owned and controlled,’’ which is used
Waters) (Mar. 10, 2021) (citing ‘‘the widespread representatives of participating small in the definition of SEDI demographics-
challenges small businesses, especially minority- businesses. Although such lenders and related business, is based on the
khammond on DSKJM1Z7X2PROD with RULES
owned businesses, have faced during the COVID– statutory definition of ‘‘business
19 pandemic’’); Cong. Rec. H1280 (Statement of other financial entities must collect and
Speaker Pelosi) (‘‘The most vulnerable among us report such information, participating enterprise owned and controlled by
have been the most disproportionately affected . . . small businesses have the option to
women and minority-owned businesses forced to 11 For more information on all eligible groups of
shudder [sic], communities of color facing rising businesses on which jurisdictions may expend their
8 31 CFR 22.6(b),
disparities’’ and explaining ‘‘This legislation will, SSBCI SEDI allocation funds, please see the SSBCI
9 See 12 CFR 1002.5(b).
among other steps, address 8 in 10 minority owned Capital Program Policy Guidelines published on
businesses on the brink of closure . . . .’’). 10 12 CFR 1002.5(a)(2). Treasury’s website.
VerDate Sep<11>2014 15:49 Mar 09, 2022 Jkt 256001 PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 E:\FR\FM\10MRR1.SGM 10MRR1
13630 Federal Register / Vol. 87, No. 47 / Thursday, March 10, 2022 / Rules and Regulations
socially and economically These data elements also do not affect information.18 Treasury’s approach is
disadvantaged individuals,’’ which the determination of SEDI-owned and most consistent with the Consumer
includes prongs for three types of controlled business status. Treasury Financial Protection Bureau’s proposed
organizations: Private businesses, public defines the term ‘‘principal owner’’ rule for collection of small business data
businesses, and mutual institutions.12 based on the ownership prong of the in that Treasury includes response
For example, 51 percent ownership of a definition of beneficial ownership under options of female, male, an option for
private institution is a sufficient FinCEN’s CDD rule. Under this interim ‘‘prefer to self-describe’’ with a write-in
condition to fulfill the ownership-and- final rule, an individual is a principal field (which is similar to the Consumer
control requirement for a business to be owner if the individual directly or Financial Protection Bureau proposed
a self-certified SEDI demographics- indirectly, through any contract, rule’s I prefer to self-identify as (with a
related business. arrangement, understanding, space to write in)), and an option for
Under this interim final rule, Treasury relationship or otherwise, owns 25 ‘‘prefer not to respond.’’ Treasury also
will also collect information on whether percent or more of the equity interests includes ‘‘non-binary’’ as a response in
the business is majority-owned or of the business. order to provide some consistency with
controlled by minority individuals, other Treasury coronavirus relief
females, or veterans. These data The categories of responses related to programs, such as the Emergency Rental
elements do not affect the determination gender under this interim final rule are Assistance Program, which collects data
of SEDI-owned and controlled business female, male, non-binary, an option for on whether award recipients are female,
status. The SSBCI statute does not ‘‘prefer to self-describe’’ with a write-in male, non-binary, declined to answer, or
define ‘‘owned or controlled’’ for field that allows for identification in a data not collected.19 As businesses may
purposes of these categories. Therefore, different manner, ‘‘prefer not to elect to not choose any of the
the definition of ‘‘owned or controlled’’ respond,’’ and that the business did not aforementioned responses by leaving
for purposes of these terms are based answer. In considering this approach, the responses blank, Treasury also
both on the definition of ‘‘business Treasury reviewed the following provides jurisdictions the option to
enterprise owned and controlled by information. The Census Bureau’s report ‘‘the business did not answer.’’
socially and economically Household Pulse Survey includes In addition, Treasury will collect data
disadvantaged individuals’’ in the questions on sex and gender identity. regarding the sexual orientation status
SSBCI statute 13 and also on the control One of these questions asks, ‘‘What sex with which principal owners identify
prong of the definition of ‘‘beneficial were you assigned at birth, on your with response options of gay or lesbian;
owner’’ in the Financial Crimes original birth certificate?’’ with bisexual; straight, that is, not gay,
Enforcement Network’s (FinCEN) responses including male or female. lesbian, or bisexual; something else; an
customer due diligence (CDD) rule, Another question asks, ‘‘Do you option for the business to choose that it
which requires covered financial currently describe yourself as male, prefers not to respond; or that the
institutions to establish and maintain female, or transgender?’’ with responses business did not answer. Treasury is
written procedures that are reasonably including male, female, transgender, or collecting this information related to
designed to identify and verify none of these.15 The Department of sexual orientation to better understand
beneficial owners of legal entity Defense P1 survey includes a question the demographics of the principal
customers.14 In choosing this approach, that asks, ‘‘Are you . . . ?’’ with owners of businesses receiving SSBCI
Treasury considered that the ‘‘beneficial responses that include male or female.16 funds. The collection of this information
owner’’ definition under FinCEN’s CDD The U.S. Department of Agriculture’s is expected to provide valuable insights
rule is already widely in use, and that Farm Producer Study includes a on SSBCI program outcomes and small
most financial institutions are likely question that asks ‘‘How do you business ecosystems, along with the
familiar with the standard, because currently describe yourself?’’ with performance of businesses owned by
many of them are required to comply responses that include male, female, individuals who identify as lesbian, gay,
with the CDD rule. Accordingly, a transgender, and none of these, specify or bisexual.
business can be a minority-owned or (with a space to write-in). The same In considering this approach,
controlled business, women-owned or study also includes a question that asks, Treasury reviewed the following
controlled business, or veteran-owned ‘‘Was your sex recorded as male or information. The Census Bureau’s
or controlled business (as applicable) if female at birth?’’ with responses that Household Pulse Survey includes a
(1) the applicable prong under the include male or female.17 question on sexual orientation that asks,
definition of ‘‘owned and controlled’’ ‘‘Which of the following best represents
The Consumer Financial Protection
explained above is met or (2) one or how you think of yourself?’’ with
Bureau’s proposed rule for the
more minority individuals, females, or responses including gay or lesbian;
collection of small business data asks
veterans, respectively, have the power straight, that is not gay or lesbian;
for information on the sex of the
to exercise a controlling influence over bisexual; something else; or I don’t
principal owner with the response
the management, direction, or policies know.20 The Department of Defense P1
options of female, male, I prefer to self-
of the business. identify as (with a space to write in), Survey also includes a question on
Under this interim final rule, Treasury
and I do not wish to provide this
will further collect the race, ethnicity, 18 Small Business Lending Data Collection Under
gender, sexual orientation, Middle the Equal Credit Opportunity Act (Regulation B), 86
15 U.S. Census Bureau, Phase 3.3 Household FR 56356, 56582 (Oct. 8, 2021).
Eastern or North African ancestry, and Pulse Survey, available at https://www2.census.gov/ 19 For example, see the demographics reporting
veteran status with which the principal
khammond on DSKJM1Z7X2PROD with RULES
programs-surveys/demo/technical-documentation/ guidance of the Emergency Rental Assistance
owners of all businesses that participate hhp/Phase3-3_Questionnaire_12_01_21_ Program, starting on page 16, available at https://
in SSBCI transactions that occurred in English.pdf. home.treasury.gov/system/files/136/ERA-Reporting-
16 Department of Defense, P1 Survey, available at Guidance-v2.pdf.
the preceding calendar year identify. https://www.reginfo.gov/public/do/Download 20 U.S. Census Bureau, Phase 3.3 Household
Document?objectID=112827001. Pulse Survey, available at https://www2.census.gov/
12 See 12 U.S.C. 5701(15). 17 U.S. Department of Agriculture, 2021 Farm programs-surveys/demo/technical-documentation/
13 See id.
Producer Study, available at https://omb.report/icr/ hhp/Phase3-3_Questionnaire_12_01_21_
14 See 31 CFR 1010.230(d)(1). 202109-0535-001/doc/114843800. English.pdf.
VerDate Sep<11>2014 15:49 Mar 09, 2022 Jkt 256001 PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 E:\FR\FM\10MRR1.SGM 10MRR1
Federal Register / Vol. 87, No. 47 / Thursday, March 10, 2022 / Rules and Regulations 13631
sexual orientation that asks, ‘‘How do disaggregated categories for Asian (i.e., North African ancestry are categorized
you describe your sexual orientation? Asian Indian; Chinese; Filipino; as White under OMB data collection
(Select all that apply.),’’ with responses Japanese; Korean; Vietnamese; and standards. Because Treasury must
including heterosexual or straight; Other Asian) as well as for Native comply with these standards, Treasury
lesbian or gay; bisexual, pansexual, or Hawaiian or Other Pacific Islander (i.e., is collecting information about Middle
queer; questioning, asexual, demisexual; Native Hawaiian; Chamorro; Samoan; Eastern or North African ancestry
other; and prefer not to answer.21 The and Other Pacific Islander).24 The 2020 through a separate ancestry question.
U.S. Department of Agriculture’s Farm Census offered respondents the Finally, this interim final rule requires
Producer Study includes a question on opportunity to, under each of the jurisdictions to submit the required
sexual orientation that asks, ‘‘Which of minimum categories, write in additional information using the format specified
the following best represents how you specifics. Both minimum categories and on Treasury’s website.27
think of yourself?’’ with responses disaggregated categories of race and We welcome comment on any aspect
including gay or lesbian; straight, that ethnicity are used in the data collection of this interim final rule.
is, not gay or lesbian; bisexual; none of under the Home Mortgage Disclosure
these, specify (with a space to write in); III. Regulatory Analyses
Act (HMDA).25 The HMDA data
I am not sure yet; and I don’t know what collection also permits individuals to Executive Orders 12866 and 13563
this question means.22 Treasury’s answer with ‘‘I do not wish to provide Executive Orders 12866 and 13563
approach is generally consistent with this information.’’ 26 direct agencies to assess costs and
these approaches, and most consistent Treasury believes that collecting only
benefits of available regulatory
with the Census Bureau’s Household the OMB minimum categories of race
alternatives and, if regulation is
Pulse Survey, but Treasury’s reporting may mask the effects of SSBCI funds on
necessary, to select regulatory
does not include a response indicating businesses in jurisdictions with a large
approaches that maximize net benefits
that the individual does not know their population of one OMB minimum
(including potential economic,
sexual orientation, in part because category of race and multiple
environmental, public health and safety
responses from individual small populations of categories of race, and
effects, distributive impacts, and
business owners are not required by therefore hinder the understanding of
equity). Executive Order 13563
beneficiaries to receive funding. program outcomes in these
emphasizes the importance of
Treasury’s decision to include an option jurisdictions. Thus, this interim final
quantifying both costs and benefits, of
for ‘‘prefer not to respond’’ is consistent rule provides for the reporting of
reducing costs, of harmonizing rules,
with the Department of Defense’s P1 information consistent with the OMB
and of promoting flexibility. This
Survey’s option of ‘‘prefer not to data collection standard, using the five
interim final rule has been designated a
answer.’’ As businesses may elect to not minimum race categories, in addition to
‘‘significant regulatory action,’’ although
choose any of the aforementioned disaggregating the Asian and Native
not economically significant, under
responses by leaving the responses Hawaiian or Other Pacific Islander
section 3(f) of Executive Order 12866.
blank, Treasury also provides categories, which is consistent with the
As explained above, this interim final
jurisdictions the option to report ‘‘the approaches used by HHS and the
rule institutes reporting requirements to
business did not answer.’’ Census Bureau’s American Community
Treasury will collect information implement, determine compliance with,
Survey. Treasury will collect
about race and ethnicity statuses with and understand the program outcomes
information on ethnicity consistent with
which principal owners identify, of SSBCI, as reauthorized and amended
the OMB data collection standard’s
consistent with the Office of by ARPA. As these reporting
minimum ethnicity categories. For both
Management and Budget (OMB) requirements focus only on data
the race and ethnicity information
Standards for the Classification of collection, this interim final rule is not
collection, Treasury is providing a
Federal Data on Race and Ethnicity, economically significant. However, we
response option of ‘‘prefer not to
which govern how questions about race welcome comments on the economic
respond,’’ consistent with the HMDA
and ethnicity should be asked on all impact of this interim final rule.
data collection’s ‘‘I do not wish to
federal collections. There are two Particularly, Treasury welcomes
provide this information.’’ As
ethnicity categories (Hispanic or Latino; comments and data on how this interim
businesses may elect not to respond by
and Not Hispanic or Latino) and five final rule may substantively affect the
leaving the information request blank,
minimum race categories (American SSBCI program.
Treasury also provides jurisdictions the
Indian or Alaska Native; Asian; Black or option to report ‘‘the business did not Executive Order 13132
African American; Native Hawaiian or answer.’’ Executive Order 13132 (entitled
Other Pacific Islander; and White).23 Treasury also believes that it is
Federalism) prohibits an agency from
Further disaggregation is allowable. For important to collect information on
publishing any rule that has federalism
example, many Census Bureau surveys, those that identify as Middle Eastern or
implications if this interim final rule
as well as the Department of Health and North African to understand whether
either imposes substantial, direct
Human Services’ (HHS) approach for SSBCI funds are reaching businesses
compliance costs on state, local, and
collecting data for its population principally owned by such individuals.
Tribal governments, and is not required
studies, offer checkboxes for selected Currently, people of Middle Eastern or
by statute, or preempts state law, unless
21 Department of Defense, P1 Survey, available at 24 See Informational Copy of the U.S. 2020
the agency meets the consultation and
funding requirements of section 6 of the
khammond on DSKJM1Z7X2PROD with RULES
https://www.reginfo.gov/public/do/Download Census, U.S. Census Bureau, https://
Document?objectID=112827001. www2.census.gov/programs-surveys/decennial/ Executive order. This interim final rule
22 U.S. Department of Agriculture, 2021 Farm 2020/technical-documentation/questionnaires-and- does not have federalism implications
Producer Study, available at https://omb.report/icr/ instructions/questionnaires/2020-informational- within the meaning of the Executive
202109-0535-001/doc/114843800. questionnaire-english_DI-Q1.pdf.
23 Off. of Mgmt. & Budget, Revisions to the 25 See 12 CFR part 1003, appendix B (Form and order and does not impose substantial,
Standards for the Classification of Federal Data on Instructions for Data Collection on Ethnicity, Race, direct compliance costs on state, local,
Race and Ethnicity, 62 FR 58782, 58782–90 (Oct. and Sex).
30, 1997). 26 See id. 27 See 12 U.S.C. 5706(c).
VerDate Sep<11>2014 15:49 Mar 09, 2022 Jkt 256001 PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 E:\FR\FM\10MRR1.SGM 10MRR1
13632 Federal Register / Vol. 87, No. 47 / Thursday, March 10, 2022 / Rules and Regulations
and Tribal governments or preempt state in the Federal Register. 5 U.S.C. ‘urgency.’ ’’ Petry v. Block, 737 F.2d
law within the meaning of the Executive 801(a)(3). 1193, 1200 (D.C. Cir. 1984). In addition,
order. The compliance costs are there is an urgent need for jurisdictions
Administrative Procedure Act
imposed on state, local, and Tribal to undertake the planning necessary to
governments by the Small Business Jobs The Administrative Procedure Act implement their SSBCI capital
Act, as amended by ARPA. (APA), 5 U.S.C. 551 et seq., generally programs. Developing these programs
Notwithstanding the above, Treasury requires public notice and an requires an understanding of all the
has engaged in efforts to consult with opportunity for comment before a rule program requirements, including the
affected state, local, and Tribal becomes effective. However, the APA data collection and reporting
government officials and associations in provides that the requirements of 5 requirements implemented in this
the process of developing this interim U.S.C. 553 do not apply ‘‘to the extent interim final rule. These requirements
final rule. Pursuant to the requirements that there is involved . . . a matter are immediately effective but may
set forth in section 8(a) of Executive relating to agency . . . grants . . . or change when the rule is finalized.
Order 13132, Treasury certifies that it contracts.’’ This interim final rule is Without having clarity on how the
has complied with the requirements of being issued for purposes of SSBCI program requirements will
Executive Order 13132. implementation, compliance, and interact with existing restrictions on
understanding the outcomes of the lenders’ and other financial entities’
Paperwork Reduction Act, 44 U.S.C. SSBCI program. While SSBCI capital availability to collect this data,
Chapter 35 funds are not considered federal jurisdictions may have difficulty
The Paperwork Reduction Act of 1995 financial assistance for the purposes of attracting lenders and other financial
(44 U.S.C. 3501–3521) (PRA) states that 31 U.S.C. subtitle V under the SSBCI entities to implement SSBCI programs,
no agency may conduct or sponsor, nor statute, the SSBCI program resembles which could hinder their efforts to
is the respondent required to respond other coronavirus relief programs that deploy the allocation for SEDI-owned
to, an information collection unless it Treasury is implementing. SSBCI capital and controlled businesses as Congress
displays a currently valid OMB control funds will be disbursed to eligible intended. Treasury understands that
number. jurisdictions that apply in order to many jurisdictions require immediate
This interim final rule will add establish small business lending and rules on which they can rely in order to
annual reporting requirements. These investment programs. This interim final develop sound SSBCI programs. The
collections will increase total annual rule sets forth the ‘‘process necessary to statutory urgency and practical
burden by 13,050 hours: The maintain. . . eligibility for federal
necessity are good cause to forego the
requirements are expected to take 500 funds,’’ id., as well as the ‘‘method[s] by
ordinary requirements of notice-and-
jurisdictions 26.10 hours to complete for which [jurisdictions] can . . . qualify
comment rulemaking.
an annual burden of 13,050 hours. for federal aid,’’ and other ‘‘integral
Using the standard total compensation part[s] of the grant program,’’ Center for Regulatory Flexibility Analysis
for accountants and auditors, the Auto Safety v. Tiemann, 414 F. Supp.
215, 222 (D.D.C. 1976). Eligible The Regulatory Flexibility Act (RFA)
estimated cost of this information generally requires that when an agency
collection is $673,902.28 jurisdictions must submit the annual
information required by this interim issues a proposed rule, or a final rule
The OMB Control Number for the pursuant to section 553(b) of the
final rule in Treasury’s prescribed
SSBCI information collection is 1505– Administrative Procedure Act or
format to remain eligible for SSBCI
0227. Comments concerning the another law, the agency must prepare a
capital funding. Treasury will also use
collections of information should be regulatory flexibility analysis that meets
the reported data to determine whether
directed to the Office of Recovery the requirements of the RFA and
jurisdictions are eligible for the SEDI
Programs, Department of the Treasury, publish such analysis in the Federal
incentive allocation. As a result, the
1500 Pennsylvania Avenue NW, Register. 5 U.S.C. 603, 604. Rules that
requirements of 5 U.S.C. 553 do not
Washington, DC 20220. Treasury are exempt from notice and comment
apply.
welcomes comments on the compliance The APA also provides an exception under the APA are also exempt from the
burdens for the information collection to notice-and-comment procedures RFA requirements, including the
under this interim final rule. ‘‘when the agency for good cause finds requirement to conduct a regulatory
Congressional Review Act (and incorporates the finding and a brief flexibility analysis. Since this interim
statement of reasons therefor in the final rule is exempt from the notice and
The Administrator of OMB’s Office of rules issued) that notice and public comment requirements of the APA,
Information and Regulatory Affairs procedure thereon are impracticable, Treasury is not required to conduct a
(OIRA) has determined that this is not unnecessary, or contrary to the public regulatory flexibility analysis.
a major rule for purposes of Subtitle E interest.’’ 5 U.S.C. 553(b)(3)(B); see also
of the Small Business Regulatory List of subjects in 31 CFR Part 35
5 U.S.C. 553(d)(3) (creating an exception
Enforcement and Fairness Act of 1996 to the requirement of a 30-day delay Executive compensation, Public
(also known as the Congressional before the effective date of a rule ‘‘for health emergency, State and local
Review Act or CRA) (5 U.S.C. 804(2) et good cause found and published with governments, Tribal governments.
seq.). Under the CRA, a major rule takes the rule’’). Even if 5 U.S.C. 553 applied,
effect 60 days after the rule is published For the reasons stated in the
Treasury would have good cause under preamble, the Department of the
sections 553(b)(3)(B) and 553(d)(3) for Treasury amends 31 CFR part 35 as
khammond on DSKJM1Z7X2PROD with RULES
28 See Bureau of Labor Statistics, U.S. Department
of Labor, Occupational Outlook Handbook,
not complying with these requirements follows:
Accountants and Auditors, on the internet at under section 553. ARPA is a law
https://www.bls.gov/oes/current/oes132011.htm. responding to a historic economic and PART 35—PANDEMIC RELIEF
Base wage of $35.37/hour increased by 46 percent public health emergency; it is PROGRAMS
to account for fully loaded employer cost of
employee compensation (benefits, etc.) for a fully
‘‘extraordinary’’ legislation about which
loaded wage rate of $51.64. 13,050 multiplied by ‘‘both Congress and the President ■ 1.The authority citation for part 35 is
$51.64 equals $673,902. articulated a profound sense of revised to read as follows:
VerDate Sep<11>2014 15:49 Mar 09, 2022 Jkt 256001 PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 E:\FR\FM\10MRR1.SGM 10MRR1
Federal Register / Vol. 87, No. 47 / Thursday, March 10, 2022 / Rules and Regulations 13633
Authority: 42 U.S.C. 802(f); 42 U.S.C. the Treasury has given a special (7) Membership of a federally or state-
803(f); 31 U.S.C. 321; 12 U.S.C. 5701–5710; permission under 12 U.S.C. 5703(d); recognized Indian Tribe;
Division N, Title V, Subtitle B, Pub. L. 116– and (8) Long-term residence in a rural
260, 134 Stat. 1182 (12 U.S.C. 4703a); Section (5) A Tribal government or a group of community;
104A, Pub. L. 103–325, 108 Stat. 2160, as Tribal governments that jointly apply to (9) Residence in a U.S. territory;
amended (12 U.S.C. 4701 et seq.); Pub. L. (10) Residence in a community
117–2, 135 Stat. 4 (42 U.S.C. 802 et seq.).
be approved by the U.S. Department of
Treasury to participate in the State undergoing economic transitions
■ 2. Add subpart C to read as follows: Small Business Credit Initiative as a (including communities impacted by
single participating jurisdiction. the shift towards a net-zero economy or
Subpart C—State Small Business (c) Minority individual means a deindustrialization); or
Credit Initiative Small Business natural person who identifies as (11) Membership of an underserved
Owners Demographics Data Collection American Indian or Alaska Native; community.
Asian; Black or African American; (i) Underserved communities are
Sec.
Native Hawaiian or Other Pacific populations sharing a particular
35.26 Authority, scope, and purpose.
35.27 Definitions. Islander; or Hispanic or Latino/a; or one characteristic, as well as geographic
35.28 Annual report requirements. or more than one of these groups. communities, that have been
35.29 Format. (d) Minority-owned or controlled systematically denied a full opportunity
business means a business that: to participate in aspects of economic,
§ 35.26 Authority, scope, and purpose. (1) If privately owned, 51 percent or social, and civic life, as exemplified by
(a) Authority and scope. This subpart more is owned by minority individuals; the list in the definition of equity in
is issued by the U.S. Department of the (2) If publicly owned, 51 percent or paragraph (g)(11)(ii) of this section; and
Treasury pursuant to Sections 3007 and more of the stock is owned by minority (ii) Equity is consistent and systematic
3010 of the Small Business Jobs Act of individuals; fair, just, and impartial treatment of all
2010, as amended by the American (3) In the case of a mutual institution, individuals, including individuals who
Rescue Plan Act of 2021 (12 U.S.C. a majority of the board of directors, belong to underserved communities that
5706, 5709). account holders, and the community have been denied such treatment, such
(b) Purpose. The U.S. Department of which the institution services is as Black, Latino, and Indigenous and
the Treasury is collecting demographics- predominantly comprised of minority Native American persons, Asian
related data regarding those who own or individuals; or Americans and Pacific Islanders, and
control businesses that receive a loan, (4) One or more minority individuals other persons of color; members of
investment, other credit or equity have the power to exercise a controlling religious minorities; lesbian, gay,
support, or technical assistance under influence over the business. bisexual, transgender, and queer
the State Small Business Credit (e) Participating jurisdiction means a (LGBTQ+) persons; persons with
Initiative for purposes of jurisdiction that has been approved by disabilities; persons who live in rural
implementation, compliance, and the U.S. Department of the Treasury for areas; and persons otherwise adversely
understanding program outcomes. participation in the State Small affected by persistent poverty or
Business Credit Initiative. inequality.
§ 35.27 Definitions. (f) Principal owner of a business (12) For purposes of this paragraph
In this subpart: means a natural person who directly or (g), a business is ‘‘owned and
(a) Controlling influence over a indirectly, through any contract, controlled’’ by applicable individuals:
business means having the power to arrangement, understanding, (i) If privately owned, 51 percent or
control, manage, or direct the business. relationship or otherwise, owns 25 more is owned by such individuals;
A person is presumed to have a percent or more of the equity interests (ii) If publicly owned, 51 percent
controlling influence over a business if of the business. If a trust owns, directly more or of the stock is owned by such
the person is a senior executive officer or indirectly, through any contract, individuals; and
or senior manager of the business (e.g., arrangement, understanding, (ii) In the case of a mutual institution,
Chief Executive Officer, Chief Financial relationship or otherwise, 25 percent or if a majority of the board of directors,
Officer, Chief Operating Officer), or any more of the equity interests of the account holders, and the community
other individual who regularly performs business, the trustee is a principal which the institution services is
similar functions. owner. predominantly comprised of such
(b) Jurisdiction means: (g) Socially and economically individuals.
disadvantaged individual (SEDI) (h) Veteran-owned or controlled
(1) One of the fifty states of the United
demographics-related business means a business means a business that:
States; (1) If privately owned, 51 percent or
business owned and controlled by
(2) The District of Columbia, the more is owned by veterans;
individuals who have had their access
Commonwealth of Puerto Rico, the (2) If publicly owned, 51 percent or
to credit on reasonable terms
Commonwealth of Northern Mariana more of the stock is owned by veterans;
diminished compared to others in
Islands, Guam, American Samoa, and (3) In the case of a mutual institution,
comparable economic circumstances,
the United States Virgin Islands; a majority of the board of directors,
due to their:
(3) When designated by one of the (1) Membership of a group that has account holders, and the community
fifty states of the United States, a been subjected to racial or ethnic which the institution services is
political subdivision of that state that prejudice or cultural bias within predominantly comprised of veterans;
the U.S. Department of the Treasury American society; or
khammond on DSKJM1Z7X2PROD with RULES
determines has the capacity to (2) Gender; (4) One or more individuals who are
participate in the State Small Business (3) Veteran status; veterans have the power to exercise a
Credit Initiative; (4) Limited English proficiency; controlling influence over the business.
(4) Under the circumstances described (5) Disability; (i) Women-owned or controlled
in 12 U.S.C. 5703(d), a municipality of (6) Long-term residence in an business means a business that:
one of the fifty states of the United environment isolated from the (1) If privately owned, 51 percent or
States to which the U.S. Department of mainstream of American society; more is owned by females;
VerDate Sep<11>2014 15:49 Mar 09, 2022 Jkt 256001 PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 E:\FR\FM\10MRR1.SGM 10MRR1
13634 Federal Register / Vol. 87, No. 47 / Thursday, March 10, 2022 / Rules and Regulations
(2) If publicly owned, 51 percent or (2) The participating jurisdiction must indicate which of the following ancestry
more of the stock is owned by females; permit each business to identify all of categories the principal owner identifies
(3) In the case of a mutual institution, the categories that apply in the with: Middle Eastern or North African;
a majority of the board of directors, definition of SEDI demographics-related not Middle Eastern or North African;
account holders, and the community business, and the participating prefer not to respond; or that the
which the institution services is jurisdiction must report to Treasury all business did not answer.
predominantly comprised of females; or categories identified by the business. (h) Gender of principal owners. For
(4) One or more individuals who are (b) Minority-owned or controlled each principal owner of the business,
females have the power to exercise a business status. Indicate whether the indicate which of the following gender
controlling influence over the business. business is a minority-owned or categories the principal owner identifies
controlled business. The participating with: Female; male; nonbinary; prefer to
§ 35.28 Annual report requirements.
jurisdiction must indicate yes; no; prefer self-describe, prefer not to respond; or
By March 31 of each year beginning not to respond; or that the business did that the business did not answer. If the
March 31, 2023, and ending with the not answer. ‘‘prefer to self-describe’’ option is
report to be submitted on March 31, (c) Women-owned or controlled chosen, the participating jurisdiction
2028, each participating jurisdiction business status. Indicate whether the
shall submit to the U.S. Department of must provide an option for the business
business is a women-owned or to write in the gender and must report
the Treasury an annual report that controlled business. The participating
includes, with respect to the previous what the business writes in.
jurisdiction must indicate yes; no; prefer (i) Sexual orientation of principal
calendar year, the following data for not to respond; or that the business did
each business that receives a loan, owners. For each principal owner of the
not answer. business, indicate which of the
investment, other credit or equity (d) Veteran-owned or controlled
support, or technical assistance as part following sexual orientation categories
business status. Indicate whether the the principal owner identifies with: Gay
of the State Small Business Credit business is a veteran-owned or
Initiative. For each business that or lesbian; bisexual; straight, that is, not
controlled business. The participating gay, lesbian, or bisexual; something else;
receives a loan, investment, or other jurisdiction must indicate yes; no; prefer
credit or equity support under the State prefer not to respond; or that the
not to respond; or that the business did
Small Business Credit Initiative, the business did not answer.
not answer.
reported data shall be based on the (e) Race of principal owners. (1) For (j) Veteran status of principal owners.
ownership and control of the business each principal owner of the business, For each principal owner of the
immediately before the consummation indicate which one or more of the business, indicate which of the
of such loan, investment, or other credit following race categories (including the following categories the principal owner
or equity support-related transaction. Office of Management and Budget’s identifies with: Veteran; non-veteran;
For each business that receives minimum categories and the relevant prefer not to respond; or that the
technical assistance under the State disaggregated categories) with which the business did not answer.
Small Business Credit Initiative, the principal owner identifies: American § 35.29 Format.
reported data shall be based on the Indian or Alaska Native; Asian; Asian Participating jurisdictions must
ownership and control of the business at disaggregated categories: Indian, submit the information required under
the time it receives such technical Chinese, Filipino, Japanese, Korean, § 35.28 using the formats specified from
assistance. Vietnamese, Asian (Other); Black or
(a) Self-certified SEDI demographics- time to time on the U.S. Department of
African American; Native Hawaiian or the Treasury’s website.
related business status. (1) Indicate Other Pacific Islander; Native Hawaiian
which one or more of the following or Other Pacific Islander disaggregated Jacob Leibenluft,
categories apply: Self-certified due to categories: Guamanian or Chamorro, Chief Recovery Officer.
membership of a group that has been Native Hawaiian, Samoan, Pacific [FR Doc. 2022–04843 Filed 3–9–22; 8:45 am]
subjected to racial or ethnic prejudice or Islander (Other); White; prefer not to BILLING CODE P
cultural bias within American society; respond; or that the business did not
self-certified due to gender; self-certified answer.
due to veteran status; self-certified due (2) The participating jurisdiction must ENVIRONMENTAL PROTECTION
to limited English proficiency; self- permit each business to identify all of AGENCY
certified due to disability; self-certified the Office of Management and Budget’s
due to long-term residence in an minimum categories and disaggregated 40 CFR Part 52
environment isolated from the categories in paragraph (e)(1) of this
mainstream of American society; self- section with which each principal [EPA–R01–OAR–2021–0945; FRL–9487–02–
certified due to membership of a R1]
owner of the business identifies, and the
federally or state-recognized Indian participating jurisdiction must report to Air Plan Approval; New Hampshire;
Tribe; self-certified due to long-term Treasury all categories identified by the Conformity
residence in a rural community; self- business.
certified due to residence in a U.S. (f) Ethnicity of principal owners. For AGENCY: Environmental Protection
territory; self-certified due to residence each principal owner of the business, Agency (EPA).
in a community undergoing economic indicate which of the following ACTION: Final rule.
transitions (including communities ethnicity categories the principal owner
khammond on DSKJM1Z7X2PROD with RULES
impacted by the shift towards a net-zero identifies with: Hispanic or Latino/a; SUMMARY: The Environmental Protection
economy or deindustrialization); self- not Hispanic or Latino/a; prefer not to Agency (EPA) is approving a State
certified due to membership of an respond; or that the business did not Implementation Plan (SIP) revision
‘‘underserved community’’ as defined in answer. submitted by the State of New
§ 35.27(g)(11)(i); none of the preceding (g) Middle Eastern or North African Hampshire. This submission revises
categories are applicable; prefer not to Ancestry of principal owners. For each previously approved transportation
respond; or the business did not answer. principal owner of the business, conformity criteria and procedures
VerDate Sep<11>2014 15:49 Mar 09, 2022 Jkt 256001 PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 E:\FR\FM\10MRR1.SGM 10MRR1
File and source
- File
- FR-2022-03-10_2022-04843.pdf
- Size
- 292,658 bytes
- SHA-256
- 00e3035ffa162d2a73e296acf496f34850e5b39cb22d5bed15976ba510ba819d
- Our copy
- FR-2022-03-10_2022-04843.pdf
- Original
- www.govinfo.gov