Federal Register / Vol. 85, No. 84 / Thursday, April 30, 2020 / Rules and Regulations 23917 

D. Assessment of Federal Regulations 

and Policies on Families 

The NCUA has determined that this 

final rule will not affect family wellbeing within the meaning of Section 54 

of the Treasury and General 

Government Appropriations Act of 

1999. 

E. Small Business Regulatory 

Enforcement Fairness Act 

The Small Business Regulatory 

Enforcement Fairness Act of 1996 

(SBREFA) generally provides for 

congressional review of agency rules. A 

reporting requirement is triggered in 

instances where the NCUA issues a final 

rule as defined by section 551 of the 

Administrative Procedure Act. An 

agency rule, in addition to being subject 

to congressional oversight, may also be 

subject to a delayed effective date if the 

rule is a ‘‘major rule.’’ The NCUA does 

not believe this rule is a ‘‘major rule’’ 

within the meaning of the relevant 

sections of SBREFA. As required by 

SBREFA, the NCUA has submitted this 

final rule to the OMB for it to determine 

if the final rule is a ‘‘major rule’’ for 

purposes of SBREFA. The NCUA also 

will file appropriate reports with 

Congress and the Government 

Accountability Office so this rule may 

be reviewed. 

List of Subjects in 12 CFR Part 722 

Appraisal, Appraiser, Credit unions, 

Mortgages, Reporting and recordkeeping 

requirements, Truth in lending. 

By the National Credit Union 

Administration Board on April 16, 2020. 

Gerard Poliquin, 

Secretary of the Board. 

For the reasons discussed above, the 

NCUA Board amends 12 CFR part 722 

as follows: 

PART 722—APPRAISALS 

■ 1. The authority citation for part 722 

continues to read as follows: 

Authority: 12 U.S.C. 1766, 1789, and 3331 

et seq. Section 722.3(a) is also issued under 

15 U.S.C. 1639h. 

■ 2. Amend § 722.3 by: 

■ a. Revising paragraphs (b)(2) and 

(c)(1); and 

■ b. Removing paragraph (f). 

The revisions read as follows: 

§ 722.3 Appraisals and written estimates 

of market value requirements for real 

estate-related financial transactions. 

* * * * * 

(b) * * * 

(2) The transaction is complex, 

involves a residential real estate 

transaction, and $400,000 or more of the 

transaction value is not insured or 

guaranteed by a United States 

government agency or United States 

government sponsored agency. 

(c) * * * (1) An appraisal performed 

by a state-certified appraiser or a statelicensed appraiser is required for any 

real estate-related financial transaction 

not exempt under paragraph (a) of this 

section in which the transaction is not 

complex, involves a residential real 

estate transaction, and $400,000 or more 

of the transaction value is not insured 

or guaranteed by a United States 

government agency or United States 

government sponsored agency. 

* * * * * 

■ 3. Amend § 722.4 by: 

■ a. Redesignating paragraphs (c), (d), 

and (e) as (d), (e), and (f), respectively; 

■ b. Adding a new paragraph (c); and 

■ c. In newly designated paragraph (e) 

removing the text ‘‘§ 722.2(f)’’ and 

adding in its place the text ‘‘§ 722.2’’. 

The addition reads as follows: 

§ 722.4 Minimum appraisal standards. 

* * * * * 

(c) Be subject to appropriate review 

for compliance with the Uniform 

Standards of Professional Appraisal 

Practice. 

* * * * * 

[FR Doc. 2020–08433 Filed 4–29–20; 8:45 am] 

BILLING CODE 7535–01–P 

DEPARTMENT OF THE TREASURY 

13 CFR Part 120 

[Docket Number TREAS–DO–2020–0009] 

RIN 1505–AC67 

Small Business Administration 

Business Loan Program Temporary 

Changes; Paycheck Protection 

Program—Additional Criterion for 

Seasonal Employers 

AGENCY: U.S. Department of the 

Treasury. 

ACTION: Interim final rule. 

SUMMARY: The Coronavirus Aid, Relief, 

and Economic Security Act (the CARES 

Act or the Act) authorizes the U.S. 

Department of the Treasury (Treasury) 

to issue regulations for the Paycheck 

Protection Program (PPP) administered 

by the Small Business Administration 

(SBA), including regulations that allow 

additional lenders to originate loans and 

establish terms and conditions. In this 

interim final rule, Treasury authorizes 

all lenders eligible to originate loans 

under the PPP to use an alternative 

criterion for calculating the maximum 

loan amount for PPP loans issued to 

seasonal employers. 

DATES: 

Effective Date: This rule is effective 

April 30, 2020. 

Comment Date: Comments must be 

received on or before June 1, 2020. 

ADDRESSES: You may submit comments, 

identified by number TREAS–DO– 

2020–0009 through the Federal 

eRulemaking Portal: http://

www.regulations.gov. Follow the 

instructions for submitting comments. 

Treasury 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 

highlight the information that you 

consider to be CBI and explain why you 

believe Treasury should hold this 

information as confidential. Treasury 

will review the information and make 

the final determination whether it will 

publish the information. 

FOR FURTHER INFORMATION CONTACT: 

Jonathan Greenstein, Office of Domestic 

Finance, 202–622–1408; 

Jonathan.Greenstein@Treasury.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background Information 

On March 27, 2020, the President 

signed the CARES Act, Public Law 116– 

136, to provide emergency assistance 

and health care response for 

individuals, families, and businesses 

affected by the coronavirus pandemic. 

Section 1102 of the Act establishes the 

PPP as a temporary addition to the 

SBA’s 7(a) loan program. The PPP is 

designed to assist small businesses 

nationwide adversely impacted by the 

coronavirus pandemic. SBA has 

published information about the PPP in 

interim final rules available at 85 FR 

20811 (April 15, 2020); 85 FR 20817 

(April 15, 2020); 85 FR 21747 (April 20, 

2020); and 85 FR 23450 (April 28, 2020). 

Section 1109(b) of the Act authorizes 

Treasury to establish criteria for insured 

depository institutions, insured credit 

unions, institutions of the Farm Credit 

System chartered under the Farm Credit 

Act of 1971 (12 U.S.C. 2001 et seq.), and 

other lenders to participate in the PPP. 

The SBA is required to administer the 

program that Treasury establishes under 

section 1109 of the Act, with guidance 

from Treasury. 

The Act authorizes Treasury to issue 

regulations and guidance to implement 

section 1109, including regulations that 

establish ‘‘terms and conditions’’ for 

PPP loans. See Section 1109(d)(2). The 

terms and conditions established by 

Treasury under section 1109 are not 

required to be identical to those set forth 

in section 1102. However, the Act 

requires that terms and conditions that 


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23918 Federal Register / Vol. 85, No. 84 / Thursday, April 30, 2020 / Rules and Regulations 

Treasury establishes under section 1109 

pertaining to certain criteria—the 

maximum interest rate, maximum loan 

amount, and other specified terms— 

must be ‘‘consistent,’’ to ‘‘the maximum 

extent practicable,’’ with those set forth 

in section 1102. See Section 1109(d)(2). 

In this rulemaking, Treasury is 

addressing the needs of certain potential 

borrowers that are seasonal employers 

by allowing seasonal employers to use 

an alternative base period for purposes 

of calculating the loan amount for 

which they are eligible under the PPP. 

Section 1102 of the Act permits seasonal 

employers to calculate their maximum 

loan amount by using their monthly 

average payments for payroll during 

‘‘the 12-week period beginning February 

15, 2019, or at the election of the 

eligible [borrower], March 1, 2019, and 

ending June 30, 2019.’’ Some seasonal 

employers, however, have seasons that 

occur later in the year. Without the 

ability to use an alternative base period, 

many summer seasonal businesses 

would be unable to obtain funding on 

terms commensurate with those 

available to winter and spring seasonal 

businesses. This interim final rule 

addresses that disparity and ensures 

consistency in program administration 

by providing a seasonal employer the 

option of using any consecutive 12- 

week period between May 1, 2019 and 

September 15, 2019 for determining its 

maximum loan amount. 

As required by section 1109(d)(2)(B), 

Treasury has determined that this 

alternative period for seasonal 

employers is, to the ‘‘maximum extent 

practicable,’’ consistent with the terms 

applicable to the PPP in general. In 

section 1102, Congress gave seasonal 

employers the option to calculate their 

maximum loan amount using alternative 

base periods. By permitting seasonal 

employers to calculate the maximum 

loan amount using any consecutive 12 

weeks within a specified 4.5-month 

period, this interim final rule ensures 

that seasonal employers affected by the 

pandemic are treated even-handedly. 

Other than this adjustment, the terms 

and requirements applicable to PPP 

loans under this rule are identical to the 

terms and requirements that section 

1102 and SBA regulations impose on 

other PPP loans. As a result, a seasonal 

borrower that elects to use the 

alternative timing criterion under this 

interim final rule may follow the same 

processes and procedures applicable to 

other PPP loans. 

II. Comments and Immediate Effective 

Date 

Congress intended that the PPP 

provide relief to America’s small 

businesses expeditiously. Given this 

intent and the dramatic decrease in 

economic activity nationwide, there is 

good cause for Treasury to dispense 

with the 30-day delayed effective date 

provided in the Administrative 

Procedure Act. This interim final rule 

provides an alternative criterion for 

calculating the maximum loan amount 

for PPP loans issued to seasonal 

employers. Seasonal employers need 

timely additional guidance concerning 

the maximum loan available under the 

interim final rule because the last day to 

apply for and receive a loan is June 30, 

2020. The immediate effective date of 

this interim final rule will benefit 

seasonal employers by providing a full 

understanding of loan terms and 

conditions. 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 1, 2020. Treasury will 

consider these comments and the need 

for any revisions as a result of these 

comments. 

III. Paycheck Protection Program— 

Alternative Criterion for Seasonal 

Employers 

Overview 

The SBA administers the PPP to 

provide immediate assistance to small 

businesses affected by the coronavirus 

pandemic. Under section 1109 of the 

CARES Act, Treasury is authorized to 

issue regulations that allow lenders to 

originate PPP loans under terms and 

conditions established by the Secretary. 

Through this interim final rule, 

Treasury is exercising its section 1109 

authority to address the needs of certain 

potential borrowers that are seasonal 

employers. The SBA will administer 

this rule as part of the PPP, with 

guidance from Treasury, until the date 

on which the national emergency 

declared by the President under the 

National Emergencies Act (50 U.S.C. 

1601 et seq.) with respect to the 

Coronavirus Disease 2019 (COVID–19) 

expires. Except as modified in this 

interim final rule, PPP regulations, 

guidance, forms, and processes apply 

fully to PPP loans for seasonal 

employers utilizing the base period 

calculation option set forth in this rule. 

1. General 

This interim final rule supplements 

the SBA’s rules for the PPP by 

establishing an alternative criterion for 

calculating the maximum loan amount 

for seasonal employers. 

2. What does this interim final rule 

apply to? 

This rule applies to PPP loans issued 

to seasonal employers. 

3. How does this rule affect the 

calculation of the maximum loan 

amount for seasonal employers? 

Under section 1102 of the CARES Act, 

a seasonal employer may determine its 

maximum loan amount for purposes of 

the PPP by reference to the employer’ 

average total monthly payments for 

payroll ‘‘the 12-week period beginning 

February 15, 2019, or at the election of 

the eligible [borrower], March 1, 2019, 

and ending June 30, 2019.’’ Under this 

interim final rule issued pursuant to 

section 1109 of the Act, a seasonal 

employer may alternatively elect to 

determine its maximum loan amount as 

the average total monthly payments for 

payroll during any consecutive 12-week 

period between May 1, 2019 and 

September 15, 2019. 

4. If a seasonal business was dormant or 

not fully operating as of February 15, 

2020, is it still eligible? 

Yes, in evaluating eligibility, a 

seasonal business will be considered to 

have been in operation as of February 

15, 2020, if the business was in 

operation for any 8-week period 

between May 1, 2019 and September 15, 

2019. This approach aligns with 

guidance previously provided by the 

Small Business Administration 

concerning other seasonal businesses 

under section 1102. See Treasury, 

Paycheck Protection Program Loans: 

Frequently Asked Questions (FAQs), 

FAQ 9 (posted April 6, 2020) (https://

home.treasury.gov/policy-issues/cares/ 

assistance-for-small-businesses). 

6. Are any other SBA rules or guidance 

for the PPP affected by Treasury’s 

interim final rule? 

No. This interim final rule only 

provides certain employers with an 

alternative means of calculating the 

maximum loan amount. All other terms 

and conditions in the PPP remain 

unchanged. All PPP applicants, 

borrowers, and lenders should continue 

to use existing SBA forms and follow all 

requirements set forth in the CARES Act 

and SBA regulations, except for the 

alternative approach described above for 

calculating the maximum loan amount. 

7. What lenders are authorized to offer 

terms in Treasury’s interim final rule to 

seasonal employers? 

All lenders authorized to originate 

PPP loans may offer the terms under 

this interim final rule to eligible 

applicants and borrowers. PPP loans 


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Federal Register / Vol. 85, No. 84 / Thursday, April 30, 2020 / Rules and Regulations 23919 

under this interim final rule are eligible 

for an SBA guarantee to the same extent 

as PPP loans based on existing PPP 

rules. 

Compliance With Executive Orders 

12866, 12988, 13132, 13563, and 13771, 

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

Ch. 35), and the Administrative 

Procedure Act (5 U.S.C. 553) 

Executive Orders 12866, 13563, and 

13771 

The Office of Management and Budget 

has determined that this interim final 

rule is economically significant for the 

purposes of Executive Orders 12866 and 

13563, and is considered a major rule 

under the Congressional Review Act. 

Treasury, 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 

Treasury 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 

Treasury 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, 

Treasury has determined that this rule 

has no federalism implications 

warranting preparation of a federalism 

assessment. 

Paperwork Reduction Act, 44 U.S.C. 

Chapter 35 

Treasury has determined that this rule 

will not impose new or modify existing 

recordkeeping or reporting requirements 

under the Paperwork Reduction Act. 

Inapplicability of Notice and Delayed 

Effective Date 

The Administrative Procedure Act 

(APA) requirements in 5 U.S.C. 553 

govern agency rulemaking procedures. 

Section 553(b) of the APA generally 

requires notice and public comment 

before issuance of a final rule. In 

addition, section 553(d) of the APA 

requires that a final rule have a 30-day 

delayed effective date. The APA, 

however, provides exceptions from the 

prior notice and public comment 

requirement and the delayed effective 

date requirements, when an agency for 

good cause finds that such procedures 

are impracticable, unnecessary, or 

contrary to the public interest. 5 U.S.C. 

553(b)(B), (d)(3). Treasury finds that 

prior notice and comment are 

impracticable and contrary to the public 

interest and that good cause exists to 

issue this interim final rule 

immediately. 

The ongoing unprecedented situation 

related to COVID–19 is having a 

nationwide impact, as demonstrated by 

the declaration of a national emergency 

by the President. See Proclamation 9994 

of March 13, 2020, 85 FR 15337 (Mar. 

18, 2020). The interim final rule 

supports seasonal employers affected by 

COVID–19 in obtaining PPP loans to 

maintain their businesses and keep 

people employed. To protect our public 

interests during the ongoing national 

emergency, Treasury concludes, 

pursuant to 5 U.S.C. 553(b)(B), that 

there is good cause to dispense with 

prior public notice and the opportunity 

to comment on this rule before issuing 

this interim final rule. For the same 

reasons, Treasury has determined, 

consistent with section 553(d)(3) of the 

APA, that there is good cause to make 

this temporary final rule effective 

immediately. 

Michael Faulkender, 

Assistant Secretary for Economic Policy. 

[FR Doc. 2020–09239 Filed 4–28–20; 4:15 pm] 

BILLING CODE P 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Food and Drug Administration 

21 CFR Part 1 

[Docket No. FDA–2020–D–1304] 

Temporary Policy Regarding 

Accredited Third-Party Certification 

Program Onsite Observation and 

Certificate Duration Requirements 

During the COVID–19 Public Health 

Emergency: Guidance for Industry; 

Availability 

AGENCY: Food and Drug Administration, 

HHS. 

ACTION: Notification of availability. 

SUMMARY: The Food and Drug 

Administration (FDA, Agency, or we) is 

announcing the availability of a final 

guidance for industry entitled 

‘‘Temporary Policy Regarding 

Accredited Third-Party Certification 

Program Onsite Observation and 

Certificate Duration Requirements 

During the COVID–19 Public Health 

Emergency.’’ Given the public health 

emergency presented by COVID–19, this 

guidance document is being 

implemented without prior public 

comment because FDA has determined 

that prior public participation is not 

feasible or appropriate, but it remains 

subject to comment in accordance with 

the Agency’s good guidance practices. 

The guidance communicates the 

Agency’s intention not to enforce 

certain requirements for the onsite 

monitoring activities and certificates for 

the currently recognized accreditation 

bodies (ABs) and accredited third-party 

certification bodies (CBs) in the 

Accredited Third-Party Certification 

Program for human and animal food in 

certain circumstances. Because travel 

restrictions and advisories related to 

COVID–19 may impact the ability of 

recognized ABs and accredited CBs to 

conduct onsite activities, this guidance 

provides temporary flexibility so that 

recognized ABs can maintain the 

accreditations of their CBs, and so that 

already-issued certifications need not 

lapse, in certain circumstances. 

DATES: The announcement of the 

guidance is published in the Federal 

Register on April 30, 2020. 

ADDRESSES: You may submit either 

electronic or written comments on 

Agency guidances at any time as 

follows: 

Electronic Submissions 

Submit electronic comments in the 

following way: 

• Federal eRulemaking Portal: 

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

instructions for submitting comments. 

Comments submitted electronically, 

including attachments, to https://

www.regulations.gov will be posted to 

the docket unchanged. Because your 

comment will be made public, you are 

solely responsible for ensuring that your 

comment does not include any 

confidential information that you or a 

third party may not wish to be posted, 

such as medical information, your or 

anyone else’s Social Security number, or 

confidential business information, such 

as a manufacturing process. Please note 

that if you include your name, contact 

information, or other information that 

identifies you in the body of your 

comments, that information will be 

posted on https://www.regulations.gov. 

• If you want to submit a comment 

with confidential information that you 

do not wish to be made available to the 

public, submit the comment as a 

written/paper submission and in the 


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