Federal Register / Vol. 86, No. 1 / Monday, January 4, 2021 / Notices 169 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90806; File No. SR–ICEEU– 

2020–018)] 

Self-Regulatory Organizations; ICE 

Clear Europe Limited; Notice of Filing 

of Proposed Rule Change Relating to 

Amendments to the ICE Clear Europe 

CDS Procedures and CDS Default 

Management Policy 

December 28, 2020. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on December 

14, 2020, ICE Clear Europe Limited 

(‘‘ICE Clear Europe’’ or the ‘‘Clearing 

House’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule changes described in 

Items I, II, and III below, which Items 

have been prepared primarily by ICE 

Clear Europe. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The principal purpose of the 

proposed amendments is for ICE Clear 

Europe to modify its CDS Procedures 

(the ‘‘CDS Procedures’’ or the 

‘‘Procedures’’) to update the 

requirements for a Clearing Member to 

be approved to be a CDS CommitteeEligible Clearing Member for purposes 

of the CDS Default Committee, as well 

as certain other updates and 

clarifications, and to modify its CDS 

Default Management Policy (the ‘‘CDS 

Default Management Policy’’ or 

‘‘Policy’’) to make corresponding 

updates to the requirements for a 

Clearing Member to be eligible to serve 

on the CDS Default Committee, as well 

as to provide more detail with respect 

to review and testing of its default 

procedures, remove appendices and 

make certain other updates and 

clarifications to be consistent with other 

ICE Clear Europe policies. 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, ICE 

Clear Europe included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. ICE 

Clear Europe has prepared summaries, 

set forth in sections (A), (B), and (C) 

below, of the most significant aspects of 

such statements. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change, Security-Based 

Swap Submission or Advance Notice 

(a) Purpose 

ICE Clear Europe is proposing to 

amend its CDS Procedures as to the 

following: (i) The requirements for a 

Clearing Member to be approved to be 

a CDS Committee-Eligible Clearing 

Member, (ii) the courses of action for the 

Clearing House if a CDS CommitteeEligible Clearing Member is unable to 

take part in the CDS Default Committee 

for the Relevant CDS Default Committee 

Period for which it is due to take part, 

(iii) the confidentiality obligations of 

CDS Default Committee Members and 

CDS Default Committee Participants and 

the limitations on liability applicable to 

such persons, (iv) timing requirements 

with respect to the submission of CDS 

Trade Particulars and (v) various 

drafting clarifications and 

improvements. ICE Clear Europe is also 

proposing to update the CDS Default 

Management Policy which would 

provide further detail with respect to 

the requirements for a Clearing Member 

to be Committee-Eligible for purposes of 

serving on the CDS Default Committee, 

and to make various drafting 

clarifications and improvements, as 

consistent with the proposed updates to 

the Procedures. 

I. CDS Procedures 

General Drafting Clarifications and 

Improvements 

The amendments to the Procedures 

would clarify that the term ‘‘CDS 

Committee-Eligible Clearing Members’’ 

must be approved in accordance with 

paragraph 5.2 of the Procedures and 

continue to meet the criteria of such 

Paragraph. As described below, 

paragraph 5.2, as proposed to be 

amended, would specify in detail the 

requirements for a Clearing Member to 

be approved to be a CDS CommitteeEligible Clearing Member. 

Submission and Acceptance of CDS 

Contracts 

The amendments would revise 

paragraph 4.4 of the Procedures, which 

describes the timing requirements for 

submitting CDS Trade Particulars, to 

clarify that with respect to CDS Trade 

Particulars submitted after 6:00 p.m. on 

a Business Day or on a day that is not 

a Business Day, unless a revocation 

right exists and is exercised or unless 

otherwise stated in circular, among 

other existing exceptions, such CDS 

Trade Particulars would be deemed to 

have been submitted at 8:00 a.m. on the 

following Business Day. Furthermore, 

the Procedures would provide that if the 

Trade Date specified in the CDS Trade 

Particulars is not a Business Day, then 

the relevant CDS Trade Particulars 

would be rejected. This reflects current 

Clearing House practice. 

CDS Default Committee 

The amendments to the Procedures in 

paragraph 5 would update the 

requirements for a Clearing Member to 

be approved to be a CDS CommitteeEligible Clearing Member. Pursuant to 

paragraph 5.2, as proposed to be 

amended, the Clearing Member would 

need to meet the following conditions in 

order to be eligible: (a) In the event that 

it has one or more Affiliates that are 

CDS Clearing Members, it has the 

longest period of membership of the 

Clearing House among such Affiliates; 

(b) it has a London-based CDS trading 

desk; and (c) it is deemed appropriate to 

be a CDS Default Committee Member by 

the Clearing House at its discretion. The 

Clearing House would maintain a list of 

all CDS Committee-Eligible Clearing 

Members. The procedure for 

maintaining the CDS Default Committee 

Participant List (including adding CDS 

Clearing Members to, removing CDS 

Clearing Members from or changing the 

order of Clearing Members on the CDS 

Default Committee Participant List) 

would be determined from time to time 

by the Clearing House at its discretion. 

(Certain such matters would be 

addressed in further detail in the Policy, 

as discussed below.) CDS Clearing 

Members would be able to provide 

information of relevance to the Clearing 

House with respect to their own 

inclusion or omission or order on the 

list, but such information would not be 

binding on the Clearing House. 

Additionally, the Procedures would 

state that ICE Clear Europe may also 

share the CDS Default Committee 

Participant List with any other clearing 

organization. 

Amendments to paragraph 5.3 would 

add that if a CDS Committee-Eligible 

Clearing Member considers that it is 

unable to take part in the CDS Default 

Committee for the Relevant CDS Default 

Committee Period for which it is due to 

take part, it may request to postpone its 

participation for that period. ICE Clear 

Europe could, at its discretion, approve 

such request and, if so, the following 

events would take place: (a) That CDS 

Committee-Eligible Clearing Member 

would be listed so as to take part in the 

170 Federal Register / Vol. 86, No. 1 / Monday, January 4, 2021 / Notices 

CDS Default Committee for the next 

Relevant CDS Default Committee Period 

as one of the three CDS Default 

Committee Participants; and (b) one of 

the next three CDS Committee-Eligible 

Clearing Members on the CDS Default 

Committee Participant List would be 

selected by the Clearing House at its 

discretion to take part in the CDS 

Default Committee during that Relevant 

CDS Default Committee Period. The 

CDS Default Committee Participant List 

would be amended accordingly. Certain 

other drafting clarifications are made to 

paragraph 5.3. 

Paragraph 5.4 would be amended to 

add that if a CDS Clearing Member 

becomes a defaulter or is suspended or 

receives a termination notice with 

respect to its Clearing Membership, it 

would be removed from the CDS Default 

Committee Participant List. Paragraphs 

5.4 and 5.5 would be amended to clarify 

that the CDS Default Committee 

Participant List would be amended to 

take into account any Clearing Member 

that becomes (or resumes being) a CDS 

Committee-Eligible Clearing Member or 

is removed from being a CDS Default 

Committee Participant because the 

Clearing House determines that such 

Clearing Member has a conflict or lacks 

impartiality. 

The amendments in paragraph 5.6 

would also provide that the Clearing 

House would give notice that, since CDS 

Default Committee Members and CDS 

Default Committee Participants act as 

part of the governance of ICE Clear 

Europe, such CDS Default Committee 

Members and CDS Default Committee 

Participants would take the benefit of all 

exclusions and limitations of liability 

available to the Clearing House under 

the Rules or Applicable Laws. The 

change is intended to make the 

exclusions and limitations on liability 

for such persons consistent with those 

generally applicable to Clearing House 

governance process. 

The amendments in paragraph 5.8 

would provide that CDS Clearing 

Members agree and acknowledge that 

each CDS Default Committee Members 

and CDS Default Committee Participant 

(each a ‘‘Covered Party’’) would be 

subject to the provisions of Rule 106 

(regarding confidentiality of information 

received and permitted disclosures) as if 

it were the Clearing House. 

Furthermore, each CDS Clearing 

Member would be required to ensure 

that each such Covered Party nominated 

by it would not use any Confidential 

Material for its own benefit or the 

benefit of any of its Affiliates and, if so 

requested by the Clearing House, would 

execute any documentation specified by 

the Clearing House acknowledging the 

same. The procedures that would apply 

in the event a Covered Party is served 

with or otherwise subject to legal 

process have been removed as 

unnecessary in light of the referenced 

provisions of Rule 106. Paragraph 5.9 

would be amended to clarify that each 

CDS Clearing Member agrees that each 

Covered Party would be responsible for 

its own costs associated with its service 

in such position. 

II. CDS Default Management Policy 

General Drafting Clarifications and 

Improvements 

By way of general drafting 

clarifications and improvements, the 

amendments to the Policy would 

remove Appendices A and B, which 

contain various forms of notice and 

examples, as well as references thereto. 

In ICE Clear Europe’s view, these 

appendices do not need to be included 

in the Policy and, to the extent they 

remain relevant, forms of notice can be 

maintained by the Clearing House 

separately. Certain terminology would 

be updated throughout the Policy as 

follows: (i) The term, Employee, would 

be updated to Eligible Employee; and 

(ii) the terms, Defaulting Clearing 

Member or Defaulting Member, would 

be updated to defaulter in certain 

instances in order to avoid repetition 

and aid with readability. Certain 

provisions relating to the Clearing 

House ceasing to clear new trades for a 

Defaulting Clearing Member would be 

moved and reorganized. 

CDS Default Committee Activation 

Consistent with the changes described 

above to the CDS Procedures, the Policy 

would be amended to provide that a 

Clearing Member would only be defined 

as Committee-Eligible, hereby 

permitting such Clearing Member to be 

a CDS Default Committee Participant, if 

such Clearing Member (i) is deemed 

appropriate by the Clearing House, (ii) 

is the primary clearing entity of an 

affiliate group, and (iii) has a London 

based trading desk. The Policy would 

also clarify that the Clearing House 

maintains a list of all CDS CommitteeEligible Clearing Members and that the 

relevant term for the committee 

(‘‘Relevant CDS Default Committee 

Period’’) is six calendar months or until 

the end of any active Default event. 

In addition, the Policy would provide 

that in the event that a CDS Default 

Committee Participant is unable to 

fulfill its upcoming rotation obligation 

for any reason including serving in the 

CDS Default Committee of another 

clearing house, such CDS Default 

Committee Participant would have the 

option to request to postpone their 

Relevant CDS Default Committee for a 

Relevant CDS Default Committee 

Period. If the Clearing House finds the 

reason for postponement satisfactory, 

the CDS Default Committee Participant 

would be substituted for a CDS 

Committee-Eligible Clearing Member 

from the next three members on the CDS 

Default Committee Participant List. 

Prior to commencement of a rotation, 

CDS Default Committee Members would 

be required to have signed all 

documentation required by the Clearing 

House (including but not limited to a 

Seconded Trader Agreement), and the 

Clearing House would use reasonable 

efforts to ensure that such requirement 

is enforced. 

The amendments would also clarify 

that CDS Default Committee Members 

would be responsible for assisting in 

executing any CDS transactions (with 

respect to Rules 902 or 903 in CDS only) 

on behalf of the Clearing House only if 

needed. Under the Committee 

Activation Procedures section, the 

procedure for use of an alternate CDS 

Default Committee Member contact 

would be revised to refer generally to a 

situation where the designated primary 

representative cannot be reached in a 

reasonable amount of time, and remove 

specific examples of reasons a member 

could not be reached. 

Secondment Facilities 

The amendments would clarify that 

upon arrival at the ICE Clear Europe 

offices, each CDS Default Committee 

Member would be assigned a PC with 

the ICE Clear Europe risk reports 

concerning the defaulter’s portfolio and 

a third-party data provider application. 

References to how the CDS Default 

Committee Member would be able to 

login to the PC and view certain 

information sent to ICE Clear Europe by 

the non-defaulting Clearing Members 

would be removed as unnecessary. The 

amendments would also clarify that 

CDS Default Committee Members would 

only execute the hedging and 

liquidating transactions that the Head of 

Clearing Risk and the team deem 

necessary. 

Confidentiality 

The amendments would remove the 

requirement that seconded traders sign 

an additional confidentiality agreement 

pertaining to their role within a given 

member default (as ICE Clear Europe 

believes the existing single secondment 

agreement is sufficient). Instead, the 

Policy would provide that CDS Default 

Committee Members would be 

reminded of ongoing confidentiality 

Federal Register / Vol. 86, No. 1 / Monday, January 4, 2021 / Notices 171 

3 15 U.S.C. 78q–1. 

4 15 U.S.C. 78q–1(b)(3)(F). 

5 15 U.S.C. 78q–1(b)(3)(F). 

6 17 CFR 240.17Ad–22(e)(13). 

7 17 CFR 240.17Ad–22(e)(13). 

8 17 CFR 240.17 Ad–22(e)(3)(i). 

9 17 CFR 240.17 Ad–22(e)(3)(i). 

obligations by the ICE Clear Europe 

Compliance department. 

Auction Process and Results 

The amendments would provide that 

details of the auction and relevant 

position data will be made available 

through the ICE Default Management 

System, consistent with the ICE Clear 

Europe auction procedures. The 

amendments would also clarify that 

following the close of an auction for 

sub-portfolio, the Clearing House would 

publish the new trades to be booked to 

the winning bidders through the ICE 

Default Management System. The 

Clearing House would no longer notify 

the point of contact for the winning 

bidders verbally. The change is 

intended to conform to the ICE Clear 

Europe auction procedures. 

Default Management Testing 

The amendments would provide 

additional detail with respect to default 

management testing. Specifically, 

pursuant to the amendments, the Policy 

would state that the Clearing House 

would test and review its default 

procedures at least quarterly and 

perform simulation exercises at least 

annually. The default test would be 

conducted in coordination with 

Clearing Members by engaging all the 

internal and external stakeholders that 

would be involved in the default 

management process (for example, the 

Clearing Risk Department, ICE Clear 

Europe Senior Management Team, CDS 

Default Committee Members, regulators, 

etc.). Each default test would be 

planned in accordance with the ICE 

Clear Europe Multi-Years Default Plan, 

which would list several different 

default scenarios that would need to be 

tested by the Clearing House on a 

regular basis. The ICE Clear Europe 

Senior Management Team would be 

responsible for approving the scope of 

the annual default test by choosing 

different scenarios outlined in the Plan. 

The Plan and changes to it would need 

to be approved by the Executive Risk 

Committee. 

(b) Statutory Basis 

ICE Clear Europe believes that the 

proposed amendments to the CDS 

Default Management Policy and the CDS 

Procedures are consistent with the 

requirements of Section 17A of the Act 3

and the regulations thereunder 

applicable to it. In particular, Section 

17A(b)(3)(F) of the Act 4 requires, among 

other things, that the rules of a clearing 

agency be designed to promote the 

prompt and accurate clearance and 

settlement of securities transactions 

and, to the extent applicable, derivative 

agreements, contracts, and transactions, 

the safeguarding of securities and funds 

in the custody or control of the clearing 

agency or for which it is responsible, 

and the protection of investors and the 

public interest. 

The proposed changes to the CDS 

Procedures and CDS Default 

Management Policy are designed to 

strengthen ICE Clear Europe’s tools to 

manage Clearing Member defaults with 

respect to CDS contracts. The CDS 

Default Committee, which relies on 

seconded representatives of Clearing 

Members, is a key aspect of the Clearing 

House’s procedures for addressing 

Clearing Member defaults, including by 

facilitating the ability of the Clearing 

House to hedge or liquidate positions of 

the defaulter. The amendments would 

update and clarify the requirements for 

a Clearing Member to be eligible to serve 

on the CDS Default Committee as well 

as clarify the procedures to be used by 

the CDS Default Committee if such 

Clearing Member is unable to fulfill its 

upcoming rotation obligation. The 

clarifications and other changes to the 

Policy and Procedures enhance 

readability and ensure that the Policy 

and Procedures remain clear and up-todate. Through better managing risks in 

default scenarios and promoting market 

stability, the proposed amendments 

promote the stability of the clearing 

house and the prompt and accurate 

clearance and settlement of cleared 

contracts. The enhanced risk 

management is therefore also generally 

consistent with the protection of 

investors and the public interest in the 

safe operation of the Clearing House. 

(ICE Clear Europe would not expect the 

amendments to affect the safeguarding 

of securities and funds in ICE Clear 

Europe’s custody or control or for which 

it is responsible.) Accordingly, the 

amendments satisfy the requirements of 

Section 17A(b)(3)(F).5

In addition, ICE Clear Europe believes 

the amendments satisfy Rule 17Ad– 

22(e)(13),6 which requires the covered 

clearing agency to ensure that it ‘‘has 

the authority and operational capacity 

to take timely action to contain losses 

and liquidity demands and continue to 

meet its obligations by, at a minimum, 

requiring the covered clearing agency’s 

participants and, when practicable, 

other stakeholders to participate in the 

testing and review of its default 

procedures, including any close-out 

procedures, at least annually.’’ As 

discussed above, the proposed 

amendments would enhance ICE Clear 

Europe’s default management 

capabilities. Specifically, ICE Clear 

Europe believes that the updated, and 

more clearly defined requirements for 

Clearing Members to become eligible to 

participate in the CDS Default 

Committee will better ensure that the 

committee is staffed with appropriate 

representatives. The other amendments 

better ensure that such members have 

appropriate resources for their role on 

the committee working and that there is 

a process in place should a member 

need to delay the start of its tenure on 

the committee for permissible reasons. 

Amendments to the Policy would also 

ensure that the Clearing House review 

its default procedures at least quarterly 

and perform simulation exercises at 

least annually and that such tests would 

be conducted in coordination with 

Clearing Members as well as the internal 

and external stakeholders involved in 

the default management process. The 

amendments overall strengthen ICE 

Clear Europe’s ability to contain losses 

in a manner consistent with the 

requirements of Rule 17Ad–22(e)(13).7

Rule 17Ad–22(e)(3)(i) 8 requires 

clearing agencies to maintain a sound 

risk management framework that 

identifies, measures, monitors and 

manages the range of risks that it faces. 

The amendments to the CDS Default 

Management Policy and the CDS 

Procedures are intended to update and 

state more clearly the criteria for 

representation on the CDS Default 

Committee and provide for enhanced 

review and testing of the default 

management processes. The 

amendments will thus strengthen the 

management of default risks, and risk 

management more generally. In ICE 

Clear Europe’s view, the amendments 

are therefore consistent with the 

requirements of Rule 17Ad–22(e)(3)(i).9

(B) Clearing Agency’s Statement on 

Burden on Competition 

ICE Clear Europe does not believe the 

proposed amendments would have any 

impact, or impose any burden, on 

competition not necessary or 

appropriate in furtherance of the 

purposes of the Act. The amendments 

are being adopted to update and clarify 

the ICE Clear Europe CDS Default 

Management Policy and ICE Clear 

Europe CDS Procedures and will apply 

to all CDS Clearing Members. ICE Clear 

Europe does not expect that the 

proposed changes will adversely affect 

172 Federal Register / Vol. 86, No. 1 / Monday, January 4, 2021 / Notices 

10 17 CFR 200.30–3(a)(12). 

access to clearing or the ability of 

Clearing Members, their customers or 

other market participants to continue to 

clear contracts. ICE Clear Europe also 

does not believe the amendments would 

materially affect the cost of clearing or 

otherwise impact competition among 

CDS Clearing Members or other market 

participants or limit market 

participants’ choices for selecting 

clearing services. Accordingly, ICE Clear 

Europe does not believe the 

amendments would impose any burden 

on competition not necessary or 

appropriate in furtherance of the 

purpose of the Act. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants or Others 

Written comments relating to the 

proposed amendments have not been 

solicited or received by ICE Clear 

Europe. ICE Clear Europe will notify the 

Commission of any written comments 

received with respect to the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) By order approve or disapprove 

the proposed rule change or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

The proposal shall not take effect 

until all regulatory actions required 

with respect to the proposal are 

completed. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml) or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

ICEEU–2020–018 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–ICEEU–2020–018. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of such 

filings will also be available for 

inspection and copying at the principal 

office of ICE Clear Europe and on ICE 

Clear Europe’s website at https://

www.theice.com/notices/ 

Notices.shtml?regulatoryFilings. 

All comments received will be posted 

without change. Persons submitting 

comments are cautioned that we do not 

redact or edit personal identifying 

information from comment submissions. 

You should submit only information 

that you wish to make available 

publicly. All submissions should refer 

to File Number SR–ICEEU–2020–018 

and should be submitted on or before 

January 25, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2020–29023 Filed 12–31–20; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

Information Collection Available for 

Public Comment; Paycheck Protection 

Program 

AGENCY: U.S. Small Business 

Administration. 

ACTION: 60-Day notice; request for 

comments 

SUMMARY: The Small Business 

Administration (SBA) is publishing this 

notice to solicit additional public 

comments on the information collection 

described below, particularly SBA Form 

3509 ‘‘Loan Necessity Questionnaire 

(For-Profit Borrowers)’’ and SBA Form 

3510, ‘‘Loan Necessity Questionnaire 

(Non-Profit Borrowers).’’ Comments in 

response to this second public comment 

notice will be evaluated in conjunction 

with comments received in response to 

previous notices published on July 14, 

2020, and October 26, 2020. After such 

evaluation, SBA will submit any 

resulting amendments to the 

information collection to the Office of 

Management and Budget (OMB) for 

approval. 

DATES: Submit comments on or before 

March 5, 2021. 

ADDRESSES: Comments should refer to 

the information collection by title or 

OMB Control Number (3245–0407) and 

must be submitted by the deadline 

above to: PPP_Info_Collections@sba.gov. 

FOR FURTHER INFORMATION CONTACT: 

Adrienne Grierson, Program Manager, 

Office of Financial Program Operations, 

202–205–6573 adrienne.grierson@

sba.gov. 

Copies: You may obtain a copy of the 

information collection and supporting 

documents from the Agency Clearance 

Officer, Curtis Rich, at (202) 205–7030, 

or curtis.rich@sba.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

Section 1102 of the Coronavirus Aid, 

Relief, and Economic Security (CARES) 

Act, Public Law 116–136, authorized 

SBA to guarantee loans made by banks 

or other financial institutions under a 

temporary program titled the ‘‘Paycheck 

Protection Program’’ (PPP). These loans 

are available to eligible small 

businesses, certain non-profit 

organizations, veterans’ organizations, 

Tribal business concerns, independent 

contractors, and self-employed 

individuals adversely impacted by the 

COVID–19 Emergency. Subject to 

certain limitations, proceeds of a PPP 

loan may be used for payroll costs, costs 

related to the continuation of group 

health care benefits during periods of 

paid sick, medical or family leave, and 

insurance premiums, mortgage interest 

payments, rent payments, utility 

payments, interest payments on other 

debt incurred prior to February 15, 

2020, and to refinance an eligible SBA 

Economic Injury Disaster Loan. Under 

section 1106(b) of the CARES Act, a PPP