29842 Federal Register / Vol. 85, No. 97 / Tuesday, May 19, 2020 / Rules and Regulations 

§ 217.301 [Amended] 

■ 4. Amend § 217.301 by: 

■ a. In paragraphs (b)(1) and (d) 

introductory, remove ‘‘U.S. GAAP’’ and 

add in its place ‘‘GAAP’’; and 

■ b. In paragraph (c)(2) introductory 

text, add ‘‘or Category III’’ after the 

phrase ‘‘an advanced approaches’’ and 

‘‘its applicable’’ after the words ‘‘its 

calculation of’’; 

■ c. In paragraph (d)(2)(i) introductory 

text, remove the phrase ‘‘in a first’’ and 

add in its place ‘‘in its first’’; and 

■ d. In paragraph (d)(2)(ii) introductory 

text, add ‘‘or Category III’’ after the 

phrase ‘‘An advanced approaches’’ and 

‘‘its applicable’’ after the words ‘‘its 

calculation of’’. 

Federal Deposit Insurance Corporation 

12 CFR Chapter III 

Authority and Issuance 

For the reasons set forth in the joint 

preamble, chapter III of title 12 of the 

Code of Federal Regulations is amended 

as follows: 

PART 324—CAPITAL ADEQUACY OF 

FDIC-SUPERVISED INSTITUTIONS 

■ 5. The authority citation for part 324 

continues to read as follows: 

Authority: 12 U.S.C. 1815(a), 1815(b), 

1816, 1818(a), 1818(b), 1818(c), 1818(t), 

1819(Tenth), 1828(c), 1828(d), 1828(i), 

1828(n), 1828(o), 1831o, 1835, 3907, 3909, 

4808; 5371; 5412; Pub. L. 102–233, 105 Stat. 

1761, 1789, 1790 (12 U.S.C. 1831n note); Pub. 

L. 102–242, 105 Stat. 2236, 2355, as amended 

by Pub. L. 103–325, 108 Stat. 2160, 2233 (12 

U.S.C. 1828 note); Pub. L. 102–242, 105 Stat. 

2236, 2386, as amended by Pub. L. 102–550, 

106 Stat. 3672, 4089 (12 U.S.C. 1828 note); 

Pub. L. 111–203, 124 Stat. 1376, 1887 (15 

U.S.C. 78o–7 note); Pub. L. 115–174; Pub. L. 

116–136, 134 Stat. 281. 

■ 6. Amend § 324.301 as follows: 

■ a. Revise paragraph (b)(1); 

■ b. In paragraph (b)(2), remove the 

phrase ‘‘FDIC-supervised’s adoption’’ 

and add in its place ‘‘FDIC-supervised 

institution’s adoption’’; 

■ c. In paragraph (c)(2) introductory 

text, add ‘‘or Category III’’ after the 

phrase ‘‘an advanced approaches’’ and 

‘‘its applicable’’ after the words ‘‘its 

calculation of’’; 

■ d. Revise paragraph (d) introductory 

text; 

■ e. In paragraph (d)(2)(i) introductory 

text, remove the phrase ‘‘in its a’’ and 

add in its place ‘‘in its first’’; 

■ f. In paragraph (d)(2)(i)(C), remove the 

phrase ‘‘fifty percent of its AACL 

transitional amount’’ and add in its 

place ‘‘fifty percent of its modified 

AACL transitional amount’’ and remove 

the phrase ‘‘twenty-five percent of its 

AACL transitional amount’’ and add in 

its place ‘‘twenty-five percent of its 

modified AACL transitional amount’’; 

■ g. In paragraph (d)(2)(ii) introductory 

text, add ‘‘or Category III’’ after the 

phrase ‘‘An advanced approaches’’, 

remove the phrase ‘‘for the fiscal year 

that begins during the 2020 calendar 

year’’ and add in its place ‘‘during 

2020’’, and add ‘‘its applicable’’ after the 

words ‘‘its calculation of’’; and 

■ h. In paragraph (d)(2)(ii)(A), remove 

the phrase ‘‘fifty percent of its CECL 

transitional amount’’ and add in its 

place the phrase ‘‘fifty percent of its 

modified CECL transitional amount’’ 

and remove the phrase ‘‘twenty-five 

percent of its CECL transitional 

amount’’ and add in its place ‘‘twentyfive percent of its modified CECL 

transitional amount’’. 

The revisions read as follows: 

§ 324.301 Current expected credit losses 

(CECL) transition. 

* * * * * 

(b) * * * 

(1) Transition period means the threeyear period, beginning the first day of 

the fiscal year in which an FDICsupervised institution adopts CECL and 

reflects CECL in its first Call Report 

filed after that date; or, for the 2020 

transition under paragraph (d) of this 

section, the five-year period beginning 

on the earlier of the date an FDICsupervised institution was required to 

adopt CECL for accounting purposes 

under GAAP (as in effect on January 1, 

2020), or the first day of the quarter in 

which the FDIC-supervised institution 

files regulatory reports that include 

CECL. 

* * * * * 

(d) Calculation of the five-year CECL 

transition provision. An FDICsupervised institution that was required 

to adopt CECL for accounting purposes 

under GAAP (as in effect January 1, 

2020) as of the first day of a fiscal year 

that begins during the 2020 calendar 

year, and that makes the election 

described in paragraph (a)(1) of this 

section, may use the transitional 

amounts and modified transitional 

amounts in paragraph (d)(1) of this 

section with the 2020 CECL transition 

calculation in paragraph (d)(2) of this 

section to adjust its calculation of 

regulatory capital ratios during each 

quarter of the transition period in which 

an FDIC-supervised institution uses 

CECL for purposes of its Call Report. An 

FDIC supervised-institution that did not 

make the election described in 

paragraph (a)(1) of this section because 

it did not record a reduction in retained 

earnings due to the adoption of CECL as 

of the beginning of the fiscal year in 

which the FDIC-supervised institution 

adopted CECL may use the transition 

provision in this paragraph (d) if it has 

a positive modified CECL transitional 

amount during any quarter ending in 

2020 and makes the election in the Call 

Report filed for the same quarter. 

* * * * * 

Brian Brooks, 

First Deputy Comptroller, Comptroller of the 

Currency. 

Board of Governors of the Federal Reserve 

System. 

Ann Misback, 

Secretary of the Board. 

Federal Deposit Insurance Corporation. 

Dated at Washington, DC, on April 13, 

2020. 

Robert E. Feldman, 

Executive Secretary. 

[FR Doc. 2020–08789 Filed 5–18–20; 8:45 am] 

BILLING CODE 4810–33–P 6210–01–P; 6714–01–P 

SMALL BUSINESS ADMINISTRATION 

13 CFR Part 120 

[Docket Number SBA–2020–2028] 

RIN 3245–AH42 

Business Loan Program Temporary 

Changes; Paycheck Protection 

Program—Loan Increases 

AGENCY: U. S. Small Business 

Administration. 

ACTION: Interim final rule. 

SUMMARY: On April 2, 2020, the U.S. 

Small Business Administration (SBA) 

posted an interim final rule announcing 

the implementation of the Coronavirus 

Aid, Relief, and Economic Security Act 

(CARES Act). The CARES Act 

temporarily adds a new program, titled 

the ‘‘Paycheck Protection Program,’’ to 

the SBA’s 7(a) Loan Program. The 

CARES Act also provides for forgiveness 

of up to the full principal amount of 

qualifying loans guaranteed under the 

Paycheck Protection Program (PPP). The 

PPP is intended to provide economic 

relief to small businesses nationwide 

adversely impacted by the Coronavirus 

Disease 2019 (COVID–19). SBA posted 

additional interim final rules on April 3, 

2020, April 14, 2020, April 24, 2020, 

April 28, 2020, April 30, 2020, May 5, 

2020, and May 8, 2020, and the 

Department of the Treasury posted an 

additional interim final rule on April 

28, 2020. This interim final rule 

supplements the previously posted 

interim final rules by providing 

guidance on the ability to increase 

certain PPP loans, and requests public 

comment. 

Federal Register / Vol. 85, No. 97 / Tuesday, May 19, 2020 / Rules and Regulations 29843 

DATES: 

Effective date: This rule is effective 

May 19, 2020. 

Applicability date: This interim final 

rule applies to applications submitted 

under the Paycheck Protection Program 

through June 30, 2020, or until funds 

made available for this purpose are 

exhausted. 

Comment date: Comments must be 

received on or before June 18, 2020. 

ADDRESSES: You may submit comments, 

identified by number SBA–2020–2028 

through the Federal eRulemaking Portal: 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

SBA will post all comments on 

www.regulations.gov. If you wish to 

submit confidential business 

information (CBI) as defined in the User 

Notice at www.regulations.gov, please 

send an email to ppp-ifr@sba.gov. 

Highlight the information that you 

consider to be CBI and explain why you 

believe SBA should hold this 

information as confidential. SBA will 

review the information and make the 

final determination whether it will 

publish the information. 

FOR FURTHER INFORMATION CONTACT: A 

Call Center Representative at 833–572– 

0502, or the local SBA Field Office; the 

list of offices can be found at https://

www.sba.gov/tools/local-assistance/ 

districtoffices. 

SUPPLEMENTARY INFORMATION: 

I. Background Information 

On March 13, 2020, President Trump 

declared the ongoing Coronavirus 

Disease 2019 (COVID–19) pandemic of 

sufficient severity and magnitude to 

warrant an emergency declaration for all 

States, territories, and the District of 

Columbia. With the COVID–19 

emergency, many small businesses 

nationwide are experiencing economic 

hardship as a direct result of the 

Federal, State, tribal, and local public 

health measures that are being taken to 

minimize the public’s exposure to the 

virus. These measures, some of which 

are government-mandated, are being 

implemented nationwide and include 

the closures of restaurants, bars, and 

gyms. In addition, based on the advice 

of public health officials, other 

measures, such as keeping a safe 

distance from others or stay-at-home 

orders, are being implemented, resulting 

in a dramatic decrease in economic 

activity as the public limits activity at 

malls, retail stores, and other 

businesses. 

On March 27, 2020, the President 

signed the Coronavirus Aid, Relief, and 

Economic Security Act (the CARES Act) 

(Pub. L. 116–136) to provide emergency 

assistance and health care response for 

individuals, families, and businesses 

affected by the coronavirus pandemic. 

The Small Business Administration 

(SBA) received funding and authority 

through the CARES Act to modify 

existing loan programs and establish a 

new loan program to assist small 

businesses nationwide adversely 

impacted by the COVID–19 emergency. 

Section 1102 of the CARES Act 

temporarily permits SBA to guarantee 

100 percent of 7(a) loans under a new 

program titled the ‘‘Paycheck Protection 

Program.’’ Section 1106 of the CARES 

Act provides for forgiveness of up to the 

full principal amount of qualifying 

loans guaranteed under the Paycheck 

Protection Program (PPP). On April 24, 

2020, the President signed the Paycheck 

Protection Program and Health Care 

Enhancement Act (Pub. L. 116–139), 

which provided additional funding and 

authority for the PPP. 

II. Comments and Immediate Effective 

Date 

The intent of the Act is that SBA 

provide relief to America’s small 

businesses expeditiously. This intent, 

along with the dramatic decrease in 

economic activity nationwide, provides 

good cause for SBA to dispense with the 

30-day delayed effective date provided 

in the Administrative Procedure Act. 

Specifically, it is critical to meet 

lenders’ and borrowers’ need for clarity 

concerning program requirements as 

rapidly as possible because the last day 

eligible borrowers can apply for and 

receive a loan is June 30, 2020. 

This interim final rule supplements 

previous regulations and guidance on an 

important, discrete issue. The 

immediate effective date of this interim 

final rule will benefit lenders so that 

they can swiftly close and disburse 

loans to small businesses. This interim 

final rule is effective without advance 

notice and public comment because 

section 1114 of the Act authorizes SBA 

to issue regulations to implement Title 

I of the Act without regard to notice 

requirements. In addition, SBA has 

determined that there is good cause for 

dispensing with advance public notice 

and comment on the ground that it 

would be contrary to the public interest. 

Specifically, SBA has determined that 

advance public notice and comment 

would delay the ability of certain 

businesses to obtain increases in their 

PPP loan amounts in order to ensure 

they obtain the maximum amount that 

they are eligible for under current 

guidance (guidance that was not 

available at the time their PPP loans 

were approved). This rule is being 

issued to allow for immediate 

implementation of this program. 

Although this interim final rule is 

effective immediately, comments are 

solicited from interested members of the 

public on all aspects of the interim final 

rule, including section III below. These 

comments must be submitted on or 

before June 18, 2020. SBA will consider 

these comments and the need for 

making any revisions as a result of these 

comments. 

III. Paycheck Protection Program 

Requirements for Loan Increases 

Overview 

The CARES Act was enacted to 

provide immediate assistance to 

individuals, families, and organizations 

affected by the COVID–19 emergency. 

Among the provisions contained in the 

CARES Act are provisions authorizing 

SBA to temporarily guarantee loans 

under the PPP. Loans under the PPP 

will be 100 percent guaranteed by SBA, 

and the full principal amount of the 

loans and any accrued interest may 

qualify for loan forgiveness. Additional 

information about the PPP is available 

in interim final rules published by SBA 

and the Department of the Treasury in 

the Federal Register (85 FR 20811, 85 

FR 20817, 85 FR 21747, 85 FR 23450, 

85 FR 23917, 85 FR 26321, 85 FR 26324, 

85 FR 27287), and an additional SBA 

interim final rule entitled ‘‘Business 

Loan Program Temporary Changes; 

Paycheck Protection Program— 

Requirements—Extension of Limited 

Safe Harbor with Respect to 

Certification Concerning Need for PPP 

Loan Request,’’ which SBA posted on 

May 8, 2020, and is published 

elsewhere in this issue of the Federal 

Register (collectively, the PPP Interim 

Final Rules). 

On April 14, 2020, SBA posted an 

interim final rule that, among other 

things, provided guidance for 

individuals with self-employment 

income (85 FR 21747). The interim final 

rule stated, ‘‘if you are a partner in a 

partnership, you may not submit a 

separate PPP loan application for 

yourself as a self-employed individual. 

Instead, the self-employment income of 

general active partners may be reported 

as a payroll cost, up to $100,000 

annualized, on a PPP loan application 

filed by or on behalf of the partnership.’’ 

On April 28, 2020, the Department of 

the Treasury posted an interim final rule 

that provided an alternative criterion for 

calculating the maximum loan amount 

for PPP loans issued to seasonal 

employers (85 FR 23917). 

Some PPP loans were approved to 

partnerships or seasonal employers 

before the additional guidance was 

29844 Federal Register / Vol. 85, No. 97 / Tuesday, May 19, 2020 / Rules and Regulations 

1SBA extended the deadline for submission of 

the initial SBA Form 1502 for such loans from May 

18, 2020 to May 22, 2020, in its interim final rule 

posted on May 8, 2020. 

2As set forth in the interim final rule posted on 

April 14, 2020, a partner in a partnership may not 

submit a separate PPP loan application as a selfemployed individual. Instead, the self-employment 

income of general active partners may be reported 

as a payroll cost, up to $100,000 annualized, on a 

PPP loan application filed by or on behalf of the 

partnership. 

issued and, as a result, those businesses 

may not have received PPP loans in the 

maximum amount for which they are 

eligible. This interim final rule 

authorizes all PPP lenders to increase 

existing PPP loans to partnerships or 

seasonal employers to include 

appropriate amounts to cover partner 

compensation in accordance with the 

interim final rule posted on April 14, 

2020, or to permit the seasonal 

employer to calculate its maximum loan 

amount using the alternative criterion 

posted on April 28, 2020. 

In addition, although the interim final 

rule on disbursements posted on April 

28, 2020, requires PPP loans to be 

disbursed in a single disbursement, if a 

PPP loan that is increased has already 

been disbursed, this interim final rule 

authorizes the lender to make an 

additional disbursement of the 

increased loan proceeds prior to 

submission of the initial SBA Form 

1502 that includes that loan. SBA Form 

1502 is required to be submitted within 

20 calendar days after a PPP loan is 

approved or, for loans approved before 

availability of the updated SBA Form 

1502 reporting process, by May 22, 

2020.1

1. Loan Increases 

a. If a partnership received a PPP loan 

that did not include any compensation 

for its partners, can the loan amount be 

increased to include partner 

compensation? 

Yes. If a partnership received a PPP 

loan that only included amounts 

necessary for payroll costs of the 

partnership’s employees and other 

eligible operating expenses, but did not 

include any amount for partner 

compensation,2 the lender may 

electronically submit a request through 

SBA’s E-Tran Servicing site to increase 

the PPP loan amount to include 

appropriate partner compensation, even 

if the loan has been fully disbursed, 

provided that the lender’s first SBA 

Form 1502 report to SBA on the PPP 

loan has not been submitted. After the 

initial SBA Form 1502 report on the PPP 

loan has been submitted to SBA, or after 

the date the first SBA Form 1502 was 

required to be submitted to SBA, the 

loan cannot be increased. In no event 

can the increased loan amount exceed 

the maximum loan amount allowed 

under the PPP Program, which is $10 

million for an individual borrower or 

$20 million for a corporate group. 

Additionally, the borrower must 

provide the lender with required 

documentation to support the 

calculation of the increase. 

The interim final rule posted on April 

14, 2020, describes how partnerships, 

rather than individual partners are 

eligible for a PPP loan. The interim final 

rule further explained that the selfemployment income of general active 

partners could be reported as a payroll 

cost, up to $100,000 annualized, on a 

PPP loan application filed by or on 

behalf of the partnership. Guidance 

describing how to calculate partnership 

PPP loan amounts and defining the selfemployment income of partners was 

posted on April 24, 2020 (see How to 

Calculate Maximum Loan Amounts, 

Question 4 at https://www.sba.gov/sites/ 

default/files/2020-04/How-to-CalculateLoan-Amounts.pdf). 

b. If a seasonal employer received a 

PPP loan before the alternative criterion 

for determining the maximum loan 

amount for seasonal employers became 

available, can the loan amount be 

increased based on a revised calculation 

using the alternative criterion? 

Yes. If a seasonal employer received 

a PPP loan before the alternative 

criterion for such employers was posted 

on April 28, 2020, and would be eligible 

for a higher maximum loan amount 

under the alternative criterion, the 

lender may electronically submit a 

request through SBA’s E-Tran Servicing 

site to increase the PPP loan amount, 

even if the loan has been fully 

disbursed, provided that the lender’s 

first SBA Form 1502 report to SBA on 

the PPP loan has not been submitted. 

After the initial SBA Form 1502 report 

has been submitted to SBA, or after the 

date the initial SBA Form 1502 report 

was required to be submitted to SBA, 

the loan cannot be increased. In no 

event can the increased loan amount 

exceed the maximum loan amount 

allowed under the PPP Program, which 

is $10 million for an individual 

borrower or $20 million for a corporate 

group. Additionally, the borrower must 

provide the lender with required 

documentation to support the 

calculation of the increase. 

2. Disbursements and 1502 Reporting on 

Increased PPP Loans 

a. If a borrower’s PPP loan has 

already been fully disbursed, can the 

lender make an additional disbursement 

for the increased loan proceeds? 

Yes. Notwithstanding the requirement 

set forth in paragraph 1.a. of the interim 

final rule on disbursements posted on 

April 28, 2020, i.e., that lenders make a 

one-time, full disbursement of the PPP 

loan within ten calendar days of loan 

approval, if a PPP loan is increased 

under paragraphs 1.a. or b. above, the 

lender may make a single additional 

disbursement of the increased loan 

proceeds prior to submission of the 

initial SBA Form 1502 report for that 

loan. 

b. How do lenders report 

disbursements on PPP loans that are 

increased and does the increase in the 

loan delay the timeframe to report the 

loan on the SBA Form 1502? 

SBA set forth in the interim final rule 

on disbursements and 1502 reporting 

posted on April 28, 2020, the process 

lenders must follow to electronically 

upload SBA Form 1502 information on 

PPP loans. The interim final rule 

provided that lenders must submit the 

SBA Form 1502 information within 20 

calendar days after a PPP loan is 

approved or, for loans approved before 

availability of the updated SBA Form 

1502 reporting process, by May 18, 

2020. In its interim final rule posted on 

May 8, 2020, SBA revised that date from 

May 18, 2020 to May 22, 2020. Lenders 

must comply with the initial 1502 

reporting deadline. SBA may review at 

any time an increase submitted by the 

lender to confirm that the increase was 

submitted within the required 

timeframe; increases submitted outside 

the required timeframe will not be 

forgiven and no processing fee will be 

earned on such amounts. Additionally, 

lenders are not entitled to processing 

fees on increases submitted outside of 

the required timeframe. 

3. Additional Information 

SBA may provide further guidance, if 

needed, through SBA notices that will 

be posted on SBA’s website at 

www.sba.gov. Questions on the 

Paycheck Protection Program may be 

directed to the Lender Relations 

Specialist in the local SBA Field Office. 

The local SBA Field Office may be 

found at https://www.sba.gov/tools/ 

local-assistance/districtoffices. 

Compliance With Executive Orders 

12866, 12988, 13132, 13563, and 13771, 

the Paperwork Reduction Act (44 U.S.C. 

Ch. 35), and the Regulatory Flexibility 

Act (5 U.S.C. 601–612) 

Executive Orders 12866, 13563, and 

13771 

This interim final rule is 

economically significant for the 

purposes of Executive Orders 12866 and 

Federal Register / Vol. 85, No. 97 / Tuesday, May 19, 2020 / Rules and Regulations 29845 

13563, and is considered a major rule 

under the Congressional Review Act. 

SBA, however, is proceeding under the 

emergency provision at Executive Order 

12866 Section 6(a)(3)(D) based on the 

need to move expeditiously to mitigate 

the current economic conditions arising 

from the COVID–19 emergency. This 

rule’s designation under Executive 

Order 13771 will be informed by public 

comment. 

Executive Order 12988 

SBA has drafted this rule, to the 

extent practicable, in accordance with 

the standards set forth in section 3(a) 

and 3(b)(2) of Executive Order 12988, to 

minimize litigation, eliminate 

ambiguity, and reduce burden. The rule 

has no preemptive or retroactive effect. 

Executive Order 13132 

SBA has determined that this rule 

will not have substantial direct effects 

on the States, on the relationship 

between the National Government and 

the States, or on the distribution of 

power and responsibilities among the 

various layers of government. Therefore, 

SBA has determined that this rule has 

no federalism implications warranting 

preparation of a federalism assessment. 

Paperwork Reduction Act, 44 U.S.C. 

Chapter 35 

SBA has determined that this rule 

will not impose new or modify existing 

recordkeeping or reporting requirements 

under the Paperwork Reduction Act. 

Regulatory Flexibility Act (RFA) 

The Regulatory Flexibility Act (RFA) 

generally requires that when an agency 

issues a proposed rule, or a final rule 

pursuant to section 553(b) of the APA or 

another law, the agency must prepare a 

regulatory flexibility analysis that meets 

the requirements of the RFA and 

publish such analysis in the Federal 

Register. 5 U.S.C. 603, 604. Specifically, 

the RFA normally requires agencies to 

describe the impact of a rulemaking on 

small entities by providing a regulatory 

impact analysis. Such analysis must 

address the consideration of regulatory 

options that would lessen the economic 

effect of the rule on small entities. The 

RFA defines a ‘‘small entity’’ as (1) a 

proprietary firm meeting the size 

standards of the Small Business 

Administration (SBA); (2) a nonprofit 

organization that is not dominant in its 

field; or (3) a small government 

jurisdiction with a population of less 

than 50,000. 5 U.S.C. 601(3)–(6). Except 

for such small government jurisdictions, 

neither State nor local governments are 

‘‘small entities.’’ Similarly, for purposes 

of the RFA, individual persons are not 

small entities. The requirement to 

conduct a regulatory impact analysis 

does not apply if the head of the agency 

‘‘certifies that the rule will not, if 

promulgated, have a significant 

economic impact on a substantial 

number of small entities.’’ 5 U.S.C. 

605(b). The agency must, however, 

publish the certification in the Federal 

Register at the time of publication of the 

rule, ‘‘along with a statement providing 

the factual basis for such certification.’’ 

If the agency head has not waived the 

requirements for a regulatory flexibility 

analysis in accordance with the RFA’s 

waiver provision, and no other RFA 

exception applies, the agency must 

prepare the regulatory flexibility 

analysis and publish it in the Federal 

Register at the time of promulgation or, 

if the rule is promulgated in response to 

an emergency that makes timely 

compliance impracticable, within 180 

days of publication of the final rule. 5 

U.S.C. 604(a), 608(b). Rules that are 

exempt from notice and comment are 

also exempt from the RFA requirements, 

including conducting a regulatory 

flexibility analysis, when among other 

things the agency for good cause finds 

that notice and public procedure are 

impracticable, unnecessary, or contrary 

to the public interest. SBA Office of 

Advocacy guide: How to Comply with 

the Regulatory Flexibility Act, Ch.1. p.9. 

Accordingly, SBA is not required to 

conduct a regulatory flexibility analysis. 

Jovita Carranza, 

Administrator. 

[FR Doc. 2020–10658 Filed 5–18–20; 8:45 am] 

BILLING CODE P 

SMALL BUSINESS ADMINISTRATION 

13 CFR Part 120 

[Docket Number SBA–2020–0026] 

RIN 3245–AH41 

Business Loan Program Temporary 

Changes; Paycheck Protection 

Program—Requirements—Extension 

of Limited Safe Harbor With Respect to 

Certification Concerning Need for PPP 

Loan Request 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Interim final rule. 

SUMMARY: On April 24, 2020, the U.S. 

Small Business Administration (SBA) 

posted an interim final rule relating to 

promissory notes, authorizations, 

affiliation, and eligibility in connection 

with the implementation of a temporary 

new program, titled the ‘‘Paycheck 

Protection Program.’’ The Paycheck 

Protection Program was established 

under the Coronavirus Aid, Relief, and 

Economic Security Act (CARES Act or 

the Act). This interim final rule revises 

the interim final rule posted on April 

24, 2020, by extending the date by 

which certain Paycheck Protection 

Program borrowers may repay their 

loans from May 7, 2020 to May 14, 2020, 

in order to avail themselves of a safe 

harbor with respect to a certification 

required by the Act, and makes other 

conforming changes. This interim final 

rule supplements SBA’s implementation 

of the Act and requests public comment. 

DATES: 

Effective date: This rule is effective 

May 19, 2020. 

Applicability date: This interim final 

rule applies to borrowers who applied 

for loans under the Paycheck Protection 

Program. 

Comment date: Comments must be 

received on or before June 18, 2020. 

ADDRESSES: You may submit comments, 

identified by number SBA–2020–0026 

through the Federal eRulemaking Portal: 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

SBA will post all comments on 

www.regulations.gov. If you wish to 

submit confidential business 

information (CBI) as defined in the User 

Notice at www.regulations.gov, please 

send an email to ppp-ifr@sba.gov. 

Highlight the information that you 

consider to be CBI and explain why you 

believe SBA should hold this 

information as confidential. SBA will 

review the information and make the 

final determination whether it will 

publish the information. 

FOR FURTHER INFORMATION CONTACT: A 

Call Center Representative at 833–572– 

0502, or the local SBA Field Office; the 

list of offices can be found at https://

www.sba.gov/tools/local-assistance/ 

districtoffices. 

SUPPLEMENTARY INFORMATION: 

I. Background Information 

On March 13, 2020, President Trump 

declared the ongoing Coronavirus 

Disease 2019 (COVID–19) pandemic of 

sufficient severity and magnitude to 

warrant an emergency declaration for all 

States, territories, and the District of 

Columbia. With the COVID–19 

emergency, many small businesses 

nationwide are experiencing economic 

hardship as a direct result of the 

Federal, State, tribal, and local public 

health measures that are being taken to 

minimize the public’s exposure to the 

virus. These measures, some of which 

are government-mandated, are being 

implemented nationwide and include 

the closures of restaurants, bars, and