U.S. Department of the Treasury, Paycheck Protection Program: "Interim Final Rule on Revisions to First Interim Final Rule"
Summary
An interim final rule of the U.S. Small Business Administration in the Federal Register of Tuesday, June 16, 2020 (Docket No. SBA–2020–0035), making revisions to the First Interim Final Rule on the Paycheck Protection Program after the Flexibility Act was signed on June 5, 2020. Provisions on loan forgiveness and deferral periods are effective March 27, 2020, the provision on the maturity date of PPP loans is effective June 5, 2020, and the rest are effective June 12, 2020. In the rule's example, a loan is disbursed on June 25, 2020, and a borrower that does not submit a forgiveness application by October 10, 2021 must begin payments on or after that date. The rule cites SBA's authority to guarantee PPP loans expiring on June 30, 2020 as a reason to proceed without advance notice and comment.
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Cite this document
“U.S. Department of the Treasury, Paycheck Protection Program: ‘Interim Final Rule on Revisions to First Interim Final Rule.’”
Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-department-of-the-treasury-paycheck-protection-program-interim-fin-c1079851f7/
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36308 Federal Register / Vol. 85, No. 116 / Tuesday, June 16, 2020 / Rules and Regulations
revising the TN Americas LLC and order copies of public documents, without incorporation of the change.
NUHOMS® EOS Dry Spent Fuel Storage is currently closed. You may submit Therefore, the direct final rule will
System listing within the ‘‘List of your request to the PDR via email at become effective as scheduled.
approved spent fuel storage casks’’ to PDR.Resource@nrc.gov or call 1–800– Dated: May 26, 2020.
include Amendment No. 1 to Certificate 397–4209 between 8:00 a.m. and 4:00 For the Nuclear Regulatory Commission.
of Compliance No. 1042. Amendment p.m. (EST), Monday through Friday,
Cindy K. Bladey,
No. 1 makes the following changes: except Federal holidays.
Adds a new basket type (Type 4) to Chief, Regulatory Analysis and Rulemaking
FOR FURTHER INFORMATION CONTACT: Support Branch, Division of Rulemaking,
allow for the loading of intact, damaged, Christian Jacobs, Office of Nuclear Environmental, and Financial Support, Office
or failed fuel; adds another new basket Material Safety and Safeguards; of Nuclear Material Safety and Safeguards.
type (Type 5); accepts fuel assemblies telephone: 301–415–6825; email: [FR Doc. 2020–11691 Filed 6–15–20; 8:45 am]
with a minimum two-year cooling time, Christian.Jacobs@nrc.gov or Nicole BILLING CODE 7590–01–P
in selected locations within the basket; Fields, Office of Nuclear Material Safety
and adds the NUHOMS® MATRIX and Safeguards, telephone: 630–829–
design as an alternative to the EOS 9570; email: Nichole.Fields@nrc.gov.
horizontal storage module design for the Both are staff of the U.S. Nuclear SMALL BUSINESS ADMINISTRATION
storage of spent fuel. Amendment No. 1 Regulatory Commission, Washington, 13 CFR Part 120
also makes other additional revisions to DC 20555–0001.
the certificate of compliance and the SUPPLEMENTARY INFORMATION: On April [Docket No. SBA–2020–0035]
technical specifications for consistency 3, 2020 (85 FR 18857), the NRC
and clarity. RIN 3245–AH49
published a direct final rule amending
DATES: its regulations in part 72 of title 10 of Business Loan Program Temporary
Effective date: The effective date of the Code of Federal Regulations by Changes; Paycheck Protection
June 17, 2020, for the direct final rule revising the TN Americas LLC Program—Revisions to First Interim
published April 3, 2020 (85 FR 18857), NUHOMS® EOS Dry Spent Fuel Storage Final Rule
is confirmed. System listing within the ‘‘List of
ADDRESSES: Please refer to Docket ID approved spent fuel storage casks’’ to AGENCY: U.S. Small Business
NRC–2019–0224 when contacting the include Amendment No. 1 to Certificate Administration.
NRC about the availability of of Compliance No. 1042. Amendment ACTION: Interim final rule.
information for this action. You may No. 1 makes the following changes:
obtain publicly-available information Adds a new basket type (Type 4) to SUMMARY: On April 2, 2020, the U.S.
related to this action by any of the allow for the loading of intact, damaged, Small Business Administration (SBA)
following methods: or failed fuel; adds another new basket posted on its website an interim final
• Federal Rulemaking Website: Go to type (Type 5); accepts fuel assemblies rule relating to the implementation of
https://www.regulations.gov and search with a minimum two-year cooling time, sections 1102 and 1106 of the
for Docket ID NRC–2019–0224. Address in selected locations within the basket; Coronavirus Aid, Relief, and Economic
questions about NRC dockets to Carol and adds the NUHOMS® MATRIX Security Act (CARES Act or the Act)
Gallagher; telephone: 301–415–3463; design as an alternative to the EOS (published in the Federal Register on
email: Carol.Gallagher@nrc.gov. For horizontal storage module design for the April 15, 2020). Section 1102 of the Act
technical questions, contact the storage of spent fuel. Amendment No. 1 temporarily adds a new product, titled
individuals listed in the FOR FURTHER also makes other additional revisions to the ‘‘Paycheck Protection Program,’’ to
INFORMATION CONTACT section of this the certificate of compliance and the the U.S. Small Business
document. technical specifications for consistency Administration’s (SBA’s) 7(a) Loan
• NRC’s Agencywide Documents and clarity. Program. Subsequently, SBA issued a
Access and Management System In the direct final rule published on number of interim final rules
(ADAMS): You may obtain publicly- April 3, 2020, the NRC stated that if no implementing the Paycheck Protection
available documents online in the significant adverse comments were Program. On June 5, 2020, the Paycheck
ADAMS Public Documents collection at received, the direct final rule would Protection Program Flexibility Act of
https://www.nrc.gov/reading-rm/ become effective on June 17, 2020. The 2020 (Flexibility Act) was signed into
adams.html. To begin the search, select NRC received and docketed two law, amending the CARES Act. This
‘‘Begin Web-based ADAMS Search.’’ For comments on the companion proposed interim final rule revises SBA’s interim
problems with ADAMS, please contact rule (85 FR 18876; April 3, 2020). final rule published in the Federal
the NRC’s Public Document Room (PDR) Electronic copies of these comments can Register on April 15, 2020, by changing
reference staff at 1–800–397–4209, 301– be obtained from the Federal key provisions, such as the loan
415–4737, or by email to pdr.resource@ Rulemaking website https:// maturity, deferral of loan payments, and
nrc.gov. The proposed amendment to www.regulations.gov under Docket ID forgiveness provisions, to conform to
the certificate, the proposed changes to NRC–2019–0224, and are also available the Flexibility Act. SBA also is making
the technical specifications, and in ADAMS under Accession Nos. conforming amendments to the use of
preliminary safety evaluation report are ML20118C707 and ML20126G364. PPP loan proceeds for consistency with
available in ADAMS under Accession The NRC evaluated the comments amendments made in the Flexibility
No. ML19290H600. The final against the criteria described in the Act. Several of these amendments are
amendment to the certificate, final direct final rule and determined that retroactive to the date of enactment of
the CARES Act, as required by section
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changes to the technical specifications, they were not significant and adverse.
and final safety evaluation report can Specifically, the comments were outside 3(d) of the Flexibility Act.
also be viewed in ADAMS under the scope of this rulemaking, did not DATES:
Accession No. ML20136A048. oppose the rule, or did not propose a Effective Dates: The provisions in this
• Attention: The Public Document change to the rule, such that the rule interim final rule related to loan
Room (PDR), where you may examine would be ineffective or unacceptable forgiveness and deferral periods for PPP
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Federal Register / Vol. 85, No. 116 / Tuesday, June 16, 2020 / Rules and Regulations 36309
loans are effective March 27, 2020. The pandemic. The Small Business many PPP borrowers can now apply for
provision in this interim final rule Administration (SBA) received funding loan forgiveness following the end of
relating to the maturity date of PPP and authority through the Act to modify their eight-week covered period.
loans is effective June 5, 2020. The existing loan programs and establish a Providing borrowers and lenders with
remaining provisions in this interim new loan program to assist small certainty on both loan requirements and
final rule are effective June 12, 2020. businesses nationwide adversely loan forgiveness requirements following
Comment Date: Comments must be impacted by the COVID–19 emergency. the enactment of the Flexibility Act will
received on or before July 16, 2020. Section 1102 of the Act temporarily enhance the ability of lenders to make
ADDRESSES: You may submit comments, permits SBA to guarantee 100 percent of loans and process loan forgiveness
identified by number SBA–2020–0035, 7(a) loans under a new program titled applications, particularly in light of the
through the Federal eRulemaking Portal: the ‘‘Paycheck Protection Program.’’ fact that most of the Flexibility Act’s
http://www.regulations.gov. Follow the Section 1106 of the Act provides for provisions are retroactive to March 27,
instructions for submitting comments. forgiveness of up to the full principal 2020. Specifically, small businesses that
SBA will post all comments on amount of qualifying loans guaranteed have yet to apply for and receive a PPP
www.regulations.gov. If you wish to under the Paycheck Protection Program. loan need to be informed of the terms
submit confidential business A more detailed discussion of sections of PPP loans as soon as possible,
information (CBI) as defined in the User 1102 and 1106 of the Act is found in because the last day on which a lender
Notice at www.regulations.gov, please section III below. can obtain an SBA loan number for a
send an email to ppp-ifr@sba.gov. On April 24, 2020, the President PPP loan is June 30, 2020. Borrowers
Highlight the information that you signed the Paycheck Protection Program who already have applied for and
consider to be CBI and explain why you and Health Care Enhancement Act (Pub. received a PPP loan need certainty
believe SBA should hold this L. 116–139), which provided additional regarding how loan proceeds must be
information as confidential. SBA will funding and authority for the PPP. On used during the covered period, as
review the information and make the June 5, 2020, the President signed the amended by the Flexibility Act, so that
final determination whether it will Paycheck Protection Program Flexibility they can maximize the amount of loan
publish the information. Act of 2020 (Flexibility Act) (Pub. L. forgiveness. These same reasons provide
116–142), which changes key provisions good cause for SBA to dispense with the
FOR FURTHER INFORMATION CONTACT: A
of the Paycheck Protection Program, 30-day delayed effective date provided
Call Center Representative at 833–572–
including provisions relating to the in the Administrative Procedure Act.
0502, or the local SBA Field Office; the
maturity of PPP loans, the deferral of Although this interim final rule is
list of offices can be found at https:// PPP loan payments, and the forgiveness
www.sba.gov/tools/local-assistance/ effective on or before date of filing,
of PPP loans. Section 3(d) of the comments are solicited from interested
districtoffices. Flexibility Act provides that the members of the public on all aspects of
SUPPLEMENTARY INFORMATION: amendments relating to PPP loan the interim final rule, including section
I. Background Information forgiveness and extension of the deferral III below. These comments must be
period for PPP loans shall be effective submitted on or before July 16, 2020.
On March 13, 2020, President Trump as if included in the CARES Act, which
declared the ongoing Coronavirus The SBA will consider these comments,
means that they are retroactive to March comments received on the interim final
Disease 2019 (COVID–19) pandemic of 27, 2020. Section 2 of the Flexibility Act
sufficient severity and magnitude to rule posted on SBA’s website April 2,
provides that the amendment relating to 2020 (the First Interim Final Rule) and
warrant an emergency declaration for all the extension of the maturity date for
states, territories, and the District of published in the Federal Register on
PPP loans shall take effect on the date
Columbia. With the COVID–19 April 15, 2020, and the need for making
of enactment (June 5, 2020). Under the
emergency, many small businesses any revisions as a result of these
Flexibility Act, the extension of the
nationwide are experiencing economic comments.
maturity date for PPP loans is applicable
hardship as a direct result of the to PPP loans made on or after that date, III. Paycheck Protection Program—
Federal, State, and local public health and lenders and borrowers may Revisions to First Interim Final Rule
measures that are being taken to mutually agree to modify PPP loans (85 FR 20811)
minimize the public’s exposure to the made before such date to reflect the
virus. These measures, some of which Overview
longer maturity.
are government-mandated, have been The CARES Act was enacted to
implemented nationwide and include II. Comments and Retroactive/ provide immediate assistance to
the closures of restaurants, bars, and Immediate Effective Date individuals, families, and businesses
gyms. In addition, based on the advice This interim final rule is effective affected by the COVID–19 emergency.
of public health officials, other without advance notice and public Among the provisions contained in the
measures, such as keeping a safe comment because section 1114 of the CARES Act are provisions authorizing
distance from others or even stay-at- CARES Act authorizes SBA to issue SBA to temporarily guarantee loans
home orders, have been implemented, regulations to implement Title I of the under a new 7(a) loan program titled the
resulting in a dramatic decrease in Act without regard to notice ‘‘Paycheck Protection Program.’’ Loans
economic activity as the public avoids requirements. In addition, SBA has guaranteed under the Paycheck
malls, retail stores, and other determined that there is good cause for Protection Program (PPP) will be 100
businesses. dispensing with advance public notice percent guaranteed by SBA, and the full
On March 27, 2020, the President and comment on the grounds that that principal amount of the loans may
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signed the Coronavirus Aid, Relief, and it would be contrary to the public qualify for loan forgiveness. The
Economic Security Act (the CARES Act interest. Specifically, advance public Flexibility Act amends the CARES Act
or the Act) (Pub. L. 116–136) to provide notice and comment would defeat the and amends provisions relating to loan
emergency assistance and health care purpose of this interim final rule given terms and loan forgiveness. The purpose
response for individuals, families, and that SBA’s authority to guarantee PPP of this interim final rule is to make
businesses affected by the coronavirus loans expires on June 30, 2020, and that changes to the First Interim Final Rule,
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36310 Federal Register / Vol. 85, No. 116 / Tuesday, June 16, 2020 / Rules and Regulations
posted on SBA’s website on April 2, 5 years for all PPP loans made on or that period. For example, if a borrower’s
2020, and published in the Federal after its enactment. The Administrator, PPP loan is disbursed on June 25, 2020,
Register on April 15, 2020 (85 FR in consultation with the Secretary, the 24-week period ends on December
20811). The First Interim Final Rule, as determined that the date SBA assigns a 10, 2020. If the borrower does not
amended by this interim final rule, loan number to the PPP loan provides submit a loan forgiveness application to
should be interpreted consistent with an efficient, transparent, and auditable its lender by October 10, 2021, the
the frequently asked questions (FAQs) means of determining when a PPP loan borrower must begin making payments
regarding the PPP that are posted on is ‘‘made’’ that provides certainty to on or after October 10, 2021.
SBA’s website 1 and the other interim lenders. While the CARES Act provides d. Loan Forgiveness
final rules issued regarding the PPP.2 that a loan will have a maximum
maturity of up to ten years from the date Section 3(b) of the Flexibility Act
1. Changes to the First Interim Final amended the requirements concerning
the borrower applies for loan
Rule forgiveness of PPP loans to reduce the
forgiveness, the Administrator, in
a. Covered Period for PPP Loans consultation with the Secretary, amount of PPP loan proceeds that must
determined that a five-year loan term is be used for payroll costs in order to be
Section 3(a) of the Flexibility Act forgivable, and the law also created a
amended the definition of ‘‘covered sufficient in light of the temporary
economic dislocations caused by the new exemption for borrowers to avoid a
period’’ for a PPP loan from ‘‘the period reduction in loan forgiveness amount
beginning on February 15, 2020 and coronavirus. Specifically, the
considerable economic disruption when they have a reduction in full-time
ending on June 30, 2020’’ to ‘‘the period equivalent employees. While the
beginning on February 15, 2020 and caused by the coronavirus is expected to
abate well before the five-year maturity Flexibility Act provides that a borrower
ending on December 31, 2020.’’ shall use at least 60 percent of the PPP
Therefore, Part III.2.g.iii. of the First date such that borrowers will be able to
resume business operations and pay off loan for payroll costs to receive loan
Interim Final Rule (85 FR 20811, 20813) forgiveness, the Administrator, in
is revised by striking ‘‘June 30, 2020’’ any outstanding balances on their PPP
loans. consultation with the Secretary,
and replacing it with ‘‘December 31, interprets this requirement as a
2020’’. Section 3(d) of the Flexibility c. Deferral Period for PPP Loans proportional limit on nonpayroll costs
Act provides that this amendment shall as a share of the borrower’s loan
be effective as if included in the CARES Section 3(c) of the Flexibility Act
extended the deferral period on PPP forgiveness amount, rather than as a
Act, which was signed into law on threshold for receiving any loan
March 27, 2020. loans. Therefore, Part III.2.n. of the First
Interim Final Rule (85 FR 20811, 20813) forgiveness. This interpretation is
This amendment by the Flexibility consistent with the new safe harbor in
Act applies to the definition of ‘‘covered is revised to read as follows:
n. When will I have to begin paying the Flexibility Act. The new safe harbor
period’’ that appears in section 1102 of provides that if a borrower is unable to
the CARES Act, governing loan use, principal and interest on my PPP loan?
If you submit to your lender a loan rehire previously employed individuals
loan eligibility, and related or similarly qualified employees, the
forgiveness application within 10
requirements. It does not alter the borrower will not have its loan
months after the end of your loan
meaning of ‘‘covered period’’ that forgiveness amount reduced based on
forgiveness covered period, you will not
appears in section 1106 of the CARES the reduction in full-time equivalent
have to make any payments of principal
Act governing loan forgiveness, which is employees. It would be incongruous to
or interest on your loan before the date
addressed by a different provision of the interpret the Flexibility Act’s 60 percent
on which SBA remits the loan
Flexibility Act. requirement as a threshold for receiving
forgiveness amount on your loan to your
b. Maturity Date for PPP Loans lender (or notifies your lender that no any loan forgiveness, because in some
loan forgiveness is allowed). cases it would directly conflict with the
Section 2(a) of the Flexibility Act flexibility provided by the new safe
amended the CARES Act to provide a Your ‘‘loan forgiveness covered
period’’ is the 24-week period beginning harbor. Further, the 60 percent
minimum maturity of five years for all requirement in the Flexibility Act was
PPP loans made on or after the date of on the date your PPP loan is disbursed;
however, if your PPP loan was made enacted against the backdrop of SBA’s
enactment of the Flexibility Act. existing rules governing the PPP, which
Therefore, Part III.2.j. of the First before June 5, 2020, you may elect to
have your loan forgiveness covered Congress was aware of and which
Interim Final Rule (85 FR 20811, 20813) provided for proportional reductions in
is revised to read as follows: period be the eight-week period
beginning on the date your PPP loan loan forgiveness for borrowers that used
j. What will be the maturity date on less than 75% of their loan amount
a PPP loan? was disbursed.3 Your lender must notify
you of remittance by SBA of the loan during the eight-week covered period
For loans made before June 5, 2020, for payroll costs. In addition, this
the maturity is two years; however, forgiveness amount (or notify you that
SBA determined that no loan interpretation of the 60 percent
borrowers and lenders may mutually requirement under the Flexibility Act is
agree to extend the maturity of such forgiveness is allowed) and the date
your first payment is due. Interest most consistent with Congress’s purpose
loans to five years. For loans made on in that legislation—namely, to increase
or after June 5, the maturity is five years. continues to accrue during the
deferment period. the flexibility provided to borrowers
Section 2 of the Paycheck Protection related to PPP loan forgiveness.
Program Flexibility Act of 2020 If you do not submit to your lender a
In addition, as noted in paragraph d.
(Flexibility Act) amended the CARES loan forgiveness application within 10
above, in seeking loan forgiveness, an
Act to provide a minimum maturity of months after the end of your loan
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eligible borrower whose loan was made
forgiveness covered period, you must
before June 5, 2020 may elect to apply
1 See https://www.sba.gov/document/support-- begin paying principal and interest after
the original eight-week covered period
faq-lenders-borrowers.
2 See https://www.sba.gov/funding-programs/ 3 Under section 3(b)(1) of the Flexibility Act, the under the CARES Act instead of the 24-
loans/coronavirus-relief-options/paycheck- loan forgiveness covered period of any borrower week covered period referenced above.
protection-program. will end no later than December 31, 2020. See Flexibility Act, section 3(b)(3).
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Federal Register / Vol. 85, No. 116 / Tuesday, June 16, 2020 / Rules and Regulations 36311
SBA will be issuing revisions to its 2.e. above, Part III.2.r. of the First f. Borrower Certifications
interim final rules on loan forgiveness Interim Final Rule (85 FR 20811, 20814) For consistency with the changes
and loan review procedures to address is revised to read as follows: discussed in paragraphs 2.e. and f.
amendments the Flexibility Act made to r. How can PPP loans be used? above, Parts III.2.t.iii., iv., and v. of the
the loan forgiveness requirements. SBA First Interim Final Rule (85 FR 20811,
The proceeds of a PPP loan are to be
will also be issuing additional guidance 20814) are revised to read as follows:
used for:
on advance purchases of PPP loans, t. What certifications need to be
which will include any effect of the i. payroll costs (as defined in the Act
made?
amendments made to the loan and in 2.f.);
* * * * *
forgiveness requirements. For the ii. costs related to the continuation of iii. The funds will be used to retain
reasons described above, Part III.2.o. of group health care benefits during workers and maintain payroll or make
the First Interim Final Rule (85 FR periods of paid sick, medical, or family mortgage interest payments, lease
20811, 20813) is revised to read as leave, and insurance premiums; payments, and utility payments; I
follows: iii. mortgage interest payments (but understand that if the funds are
o. Can my PPP loan be forgiven in not mortgage prepayments or principal knowingly used for unauthorized
whole or in part? payments); purposes, the Federal Government may
Yes. The amount of loan forgiveness
iv. rent payments; hold me legally liable such as for
can be up to the full principal amount
v. utility payments; charges of fraud. As explained above,
of the loan and any accrued interest. An
not more than 40 percent of loan
eligible borrower will not be responsible vi. interest payments on any other proceeds may be used for nonpayroll
for any loan payment if the borrower debt obligations that were incurred costs.
uses all of the loan proceeds for before February 15, 2020; and/or iv. Documentation verifying the
forgivable purposes as described below vii. refinancing an SBA EIDL loan number of full-time equivalent
and employee and compensation levels made between January 31, 2020 and employees on payroll as well as the
are maintained or, if not, an applicable April 3, 2020. If you received an SBA dollar amounts of payroll costs, covered
safe harbor applies. The actual amount EIDL loan from January 31, 2020 mortgage interest payments, covered
of loan forgiveness will depend, in part, through April 3, 2020, you can apply for rent payments, and covered utilities for
on the total amount of payroll costs, a PPP loan. If your EIDL loan was not the loan forgiveness covered period for
payments of interest on mortgage used for payroll costs, it does not affect the loan will be provided to the lender.
obligations incurred before February 15, your eligibility for a PPP loan. If your v. Loan forgiveness will be provided
2020, rent payments on leases dated EIDL loan was used for payroll costs, for the sum of documented payroll
before February 15, 2020, and utility your PPP loan must be used to refinance costs, covered mortgage interest
payments for service that began before your EIDL loan. Proceeds from any payments, covered rent payments, and
February 15, 2020, over the loan advance up to $10,000 on the EIDL loan covered utility payments. As explained
forgiveness covered period. However, to above, not more than 40 percent of the
will be deducted from the loan
receive full loan forgiveness, a borrower forgiven amount may be used for
forgiveness amount on the PPP loan.
must use at least 60 percent of the PPP nonpayroll costs.
loan for payroll costs, and not more than At least 60 percent of the PPP loan
40 percent of the loan forgiveness proceeds shall be used for payroll costs. * * * * *
amount may be attributable to For purposes of determining the 2. Additional Information
nonpayroll costs. For example, if a percentage of use of proceeds for payroll
costs, the amount of any EIDL SBA may provide further guidance, if
borrower uses 59 percent of its PPP loan
refinanced will be included. For needed, through SBA notices which will
for payroll costs, it will not receive the
purposes of loan forgiveness, however, be posted on SBA’s website at
full amount of loan forgiveness it might
the borrower will have to document the www.sba.gov. Questions on the
otherwise be eligible to receive. Instead,
proceeds used for payroll costs in order Paycheck Protection Program may be
the borrower will receive partial loan
to determine the amount of forgiveness. directed to the Lender Relations
forgiveness, based on the requirement
While the Act provides that PPP loan Specialist in the local SBA Field Office.
that 60 percent of the forgiveness
proceeds may be used for the purposes The local SBA Field Office may be
amount must be attributable to payroll
listed above and for other allowable found at https://www.sba.gov/tools/
costs. For example, if a borrower
uses described in section 7(a) of the local-assistance/districtoffices.
receives a $100,000 PPP loan, and
during the covered period the borrower Small Business Act (15 U.S.C. 636(a)), Compliance With Executive Orders
spends $54,000 (or 54 percent) of its the Administrator believes that finite 12866, 12988, 13132, 13563, and 13771,
loan on payroll costs, then because the appropriations and the structure of the the Paperwork Reduction Act (44
borrower used less than 60 percent of its Act warrant a requirement that U.S.C. Ch. 35), and the Regulatory
loan on payroll costs, the maximum borrowers use a substantial portion of Flexibility Act (5 U.S.C. 601–612)
amount of loan forgiveness the borrower the loan proceeds for payroll costs,
consistent with Congress’ overarching Executive Orders 12866, 13563, and
may receive is $90,000 (with $54,000 in
goal of keeping workers paid and 13771
payroll costs constituting 60 percent of
the forgiveness amount and $36,000 in employed. This percentage is consistent This interim final rule is
nonpayroll costs constituting 40 percent with the limitation on the forgiveness economically significant for the
of the forgiveness amount). amount set forth in the Flexibility Act. purposes of Executive Orders 12866 and
This limitation on use of the loan funds 13563, and is considered a major rule
e. Use of PPP Loan Proceeds
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will help to ensure that the finite under the Congressional Review Act.
For consistency with the amendments appropriations available for these loans SBA, however, is proceeding under the
made in the Flexibility Act regarding are directed toward payroll protection, emergency provision at Executive Order
the percentage of loan proceeds that as each loan that is issued depletes the 12866 Section 6(a)(3)(D) based on the
must be used for payroll costs in order appropriation, regardless of whether need to move expeditiously to mitigate
to be forgiven, discussed in paragraph portions of the loan are later forgiven. the current economic conditions arising
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36312 Federal Register / Vol. 85, No. 116 / Tuesday, June 16, 2020 / Rules and Regulations
from the COVID–19 emergency. This regulatory flexibility analysis that meets and Economic Security Act, Pub. L. 116–136,
rule’s designation under Executive the requirements of the RFA and Section 1114.
Order 13771 will be informed by public publish such analysis in the Federal Jovita Carranza,
comment. Register. 5 U.S.C. 603, 604. Specifically, Administrator.
This rule is necessary to implement the RFA normally requires agencies to [FR Doc. 2020–12909 Filed 6–12–20; 11:15 am]
Sections 1102 and 1106 of the CARES describe the impact of a rulemaking on BILLING CODE P
Act and the Flexibility Act in order to small entities by providing a regulatory
provide economic relief to small impact analysis. Such analysis must
businesses nationwide adversely address the consideration of regulatory
impacted under the COVID–19 DEPARTMENT OF TRANSPORTATION
options that would lessen the economic
Emergency Declaration. We anticipate effect of the rule on small entities. The Federal Aviation Administration
that this rule will result in substantial RFA defines a ‘‘small entity’’ as (1) a
benefits to small businesses, their proprietary firm meeting the size 14 CFR Part 39
employees, and the communities they standards of the Small Business
serve. However, we lack data to estimate Administration (SBA); (2) a nonprofit [Docket No. FAA–2020–0466; Project
the effects of this rule. Identifier MCAI–2020–00504–A; Amendment
organization that is not dominant in its 39–21143; AD 2020–12–08]
Executive Order 12988 field; or (3) a small government
jurisdiction with a population of less RIN 2120–AA64
SBA has drafted this rule, to the
extent practicable, in accordance with than 50,000. 5 U.S.C. 601(3)–(6). Except
Airworthiness Directives; Embraer S.A.
the standards set forth in section 3(a) for such small government jurisdictions,
(Type Certificate Previously Held by
and 3(b)(2) of Executive Order 12988, to neither State nor local governments are
Empresa Brasileira de Aeronáutica
minimize litigation, eliminate ‘‘small entities.’’ Similarly, for purposes
S.A.) Airplanes
ambiguity, and reduce burden. The rule of the RFA, individual persons are not
has no preemptive effect but does have small entities. AGENCY: Federal Aviation
a limited retroactive effect consistent The requirement to conduct a Administration (FAA), DOT.
with section 3(d) of the Flexibility Act. regulatory impact analysis does not ACTION: Final rule; request for
apply if the head of the agency ‘‘certifies comments.
Executive Order 13132
that the rule will not, if promulgated, SUMMARY: The FAA is superseding
SBA has determined that this rule have a significant economic impact on
will not have substantial direct effects airworthiness directive (AD) 2011–20–
a substantial number of small entities.’’ 01 for certain Empresa Brasileira de
on the States, on the relationship 5 U.S.C. 605(b). The agency must,
between the National Government and Aeronáutica S.A. (now Embraer S.A.)
however, publish the certification in the Model EMB–505 airplanes. AD 2011–
the States, or on the distribution of Federal Register at the time of
power and responsibilities among the 20–01 required replacing the bolts that
publication of the rule, ‘‘along with a attach the balance mass weights to the
various layers of government. Therefore, statement providing the factual basis for
SBA has determined that this rule has elevator structure. This AD requires
such certification.’’ If the agency head inspections of the mass-balance weights
no federalism implications warranting
has not waived the requirements for a of the elevators, ailerons, and rudder
preparation of a federalism assessment.
regulatory flexibility analysis in (flight control surfaces) and their
Paperwork Reduction Act, 44 U.S.C. accordance with the RFA’s waiver attachment parts and corrective actions
Chapter 35 provision, and no other RFA exception if necessary, and revising the
SBA has determined that this rule applies, the agency must prepare the airworthiness limitation section of the
will modify existing recordkeeping or regulatory flexibility analysis and existing maintenance manual or
reporting requirements under the publish it in the Federal Register at the instructions for continued airworthiness
Paperwork Reduction Act. The time of promulgation or, if the rule is to incorporate new airworthiness
amendments to the PPP made by the promulgated in response to an limitations. This AD also adds airplanes
Flexibility Act and implemented in this emergency that makes timely to the applicability. This AD was
interim final rule will require compliance impracticable, within 180 prompted by reports of corrosion in the
conforming revisions to the PPP days of publication of the final rule. 5 mass-balance weights of the flight
Borrower Application Form (SBA Form U.S.C. 604(a), 608(b). control surfaces, and a determination
2483), the PPP Lender Application Form Rules that are exempt from notice and that new airworthiness limitations are
(SBA Form 2484), and the PPP Loan comment are also exempt from the RFA necessary. The FAA is issuing this AD
Forgiveness Application (SBA Form requirements, including conducting a to address the unsafe condition on these
3508). SBA will submit the modified regulatory flexibility analysis, when products.
forms to OMB for approval as a among other things the agency for good DATES: This AD is effective July 1, 2020.
modification to the existing PPP cause finds that notice and public The Director of the Federal Register
information collection. This information approved the incorporation by reference
procedure are impracticable,
collection is currently approved as an of a certain publication listed in this AD
unnecessary, or contrary to the public
emergency request under OMB Control as of July 1, 2020.
interest. Small Business The FAA must receive any comments
Number 3245–0407 until October 31, Administration’s Office of Advocacy
2020. on this AD by July 31, 2020.
guide: How to Comply with the
ADDRESSES: You may send comments,
Regulatory Flexibility Act (RFA) Regulatory Flexibility Ac. Ch.1. p.9.
lotter on DSK30NT082PROD with RULES
using the procedures found in 14 CFR
The Regulatory Flexibility Act (RFA) Accordingly, SBA is not required to
11.43 and 11.45, by any of the following
generally requires that when an agency conduct a regulatory flexibility analysis. methods:
issues a proposed rule, or a final rule Authority: 15 U.S.C. 636(a)(36); Paycheck • Federal eRulemaking Portal: Go to
pursuant to section 553(b) of the APA or Protection Program Flexibility Act of 2020, https://www.regulations.gov. Follow the
another law, the agency must prepare a Pub. L. 116–142; Coronavirus Aid, Relief, instructions for submitting comments.
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