Federal Register / Vol. 85, No. 124 / Friday, June 26, 2020 / Rules and Regulations 38301 

5 12 U.S.C. 5512(b)(1). The relevant provisions of 

Regulation Z form part of Federal consumer 

financial law. 12 U.S.C. 5481(12)(O), (14). 

6 15 U.S.C. 1640(f). 

7 5 U.S.C. 553(d). 

8 5 U.S.C. 553(b). 

9 5 U.S.C. 603(a), 604(a). 

10 44 U.S.C. 3501 et seq. 

11 5 U.S.C. 801 et seq. 

the applicant’s or co-applicant’s 

ethnicity, race, sex, and age as ‘‘not 

applicable’’ if the applicant or coapplicant is not a natural person. For 

these reasons, the Bureau will not count 

first-lien originations reported in HMDA 

data for which both the applicant’s and 

co-applicant’s ethnicity, race, sex, and 

age all are reported as follows: (1) The 

applicant’s ethnicity is reported as ‘‘Not 

applicable’’ (HMDA Code 4); (2) the 

applicant’s race is reported as ‘‘Not 

applicable’’ (HMDA Code 7); (3) the 

applicant’s sex is reported as ‘‘Not 

applicable’’ (HMDA Code 4); (4) the 

applicant’s age is reported as ‘‘Not 

applicable’’ (HMDA Code 8888); (5) the 

co-applicant’s ethnicity is reported as 

‘‘Not applicable’’ (HMDA Code 4) or 

‘‘No co-applicant’’ (HMDA Code 5); (6) 

the co-applicant’s race is reported as 

‘‘Not applicable’’ (HMDA Code 7) or 

‘‘No co-applicant’’ (HMDA Code 8); (7) 

the co-applicant’s sex is reported as 

‘‘Not applicable’’ (HMDA Code 4) or 

‘‘No co-applicant’’ (HMDA Code 5); and 

(8) the co-applicant’s age is reported as 

‘‘Not applicable’’ (HMDA Code 8888) or 

‘‘No co-applicant’’ (HMDA Code 9999). 

The underserved counties list, using 

the HMDA data described above, can be 

found on the Bureau’s public website at 

https://www.consumerfinance.gov/ 

policy-compliance/guidance/mortgageresources/rural-and-underservedcounties-list/, where, consistent with 

past practice, the list is made available 

along with historical lists. 

C. Legal Authority 

The Bureau is issuing this interpretive 

rule based on its authority to interpret 

Regulation Z, including under section 

1022(b)(1) of the Dodd-Frank Act, which 

authorizes guidance as may be 

necessary or appropriate to enable the 

Bureau to administer and carry out the 

purposes and objectives of Federal 

consumer financial laws.5

By operation of TILA section 130(f), 

no provision of TILA sections 130, 

108(b), 108(c), 108(e), or 112 imposing 

any liability applies to any act done or 

omitted in good faith in conformity with 

this interpretive rule, notwithstanding 

that after such act or omission has 

occurred, the interpretive rule is 

amended, rescinded, or determined by 

judicial or other authority to be invalid 

for any reason.6

II. Effective Date 

Because this rule is solely 

interpretive, it is not subject to the 30- 

day delayed effective date for 

substantive rules under section 553(d) 

of the Administrative Procedure Act.7

Therefore, this rule is effective on June 

26, 2020, the same date that it is 

published in the Federal Register. 

III. Regulatory Requirements 

This rule articulates the Bureau’s 

interpretation of Regulation Z and TILA. 

As an interpretive rule, it is exempt 

from the notice-and-comment 

rulemaking requirements of the 

Administrative Procedure Act.8 Because 

no notice of proposed rulemaking is 

required, the Regulatory Flexibility Act 

does not require an initial or final 

regulatory flexibility analysis.9

The Bureau has determined that this 

interpretive rule does not impose any 

new requirements or revise any existing 

recordkeeping, reporting, or disclosure 

requirements on covered entities or 

members of the public that would be 

collections of information requiring 

approval by the Office of Management 

and Budget under the Paperwork 

Reduction Act.10

IV. Congressional Review Act 

Pursuant to the Congressional Review 

Act,11 the Bureau will submit a report 

containing this interpretive rule and 

other required information to the United 

States Senate, the United States House 

of Representatives, and the Comptroller 

General of the United States prior to the 

rule’s published effective date. The 

Office of Information and Regulatory 

Affairs has designated this interpretive 

rule as not a ‘‘major rule’’ as defined by 

5 U.S.C. 804(2). 

V. Signing Authority 

The Director of the Bureau, having 

reviewed and approved this document, 

is delegating the authority to 

electronically sign this document to 

Laura Galban, a Bureau Federal Register 

Liaison, for purposes of publication in 

the Federal Register. 

Dated: June 23, 2020. 

Laura Galban, 

Federal Register Liaison, Bureau of Consumer 

Financial Protection. 

[FR Doc. 2020–13801 Filed 6–25–20; 8:45 am] 

BILLING CODE 4810–AM–P 

SMALL BUSINESS ADMINISTRATION 

13 CFR Part 120 

[Docket No. SBA–2020–0039] 

RIN 3245–AH53 

Business Loan Program Temporary 

Changes; Paycheck Protection 

Program—Additional Eligibility 

Revisions to First Interim Final Rule 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Interim final rule. 

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

Small Business Administration (SBA) 

posted on its website an interim final 

rule relating to the implementation of 

sections 1102 and 1106 of the 

Coronavirus Aid, Relief, and Economic 

Security Act (CARES Act or the Act) 

(published in the Federal Register on 

April 15, 2020). Section 1102 of the Act 

temporarily adds a new product, titled 

the ‘‘Paycheck Protection Program,’’ to 

the U.S. Small Business 

Administration’s (SBA’s) 7(a) Loan 

Program. Subsequently, SBA issued a 

number of interim final rules 

implementing the Paycheck Protection 

Program. On June 12, 2020, SBA posted 

on its website an interim final rule 

revising the interim final rule published 

in the Federal Register on April 15, 

2020 by changing the eligibility 

requirement related to felony 

convictions of applicants or owners of 

the applicant. This interim final rule 

further revises SBA’s interim final rule 

published in the Federal Register on 

April 15, 2020, by further changing that 

eligibility requirement. 

DATES: 

Effective date: The provisions in this 

interim final rule are effective June 24, 

2020. 

Comment date: Comments must be 

received on or before July 27, 2020. 

ADDRESSES: You may submit comments, 

identified by number SBA–2020–0039, 

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. 


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38302 Federal Register / Vol. 85, No. 124 / Friday, June 26, 2020 / Rules and Regulations 

1See https://www.sba.gov/document/support-- 

faq-lenders-borrowers. 

2See https://www.sba.gov/funding-programs/ 

loans/coronavirus-relief-options/paycheckprotection-program. 

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, 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, have been 

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 even stay-athome orders, have been implemented, 

resulting in a dramatic decrease in 

economic activity as the public avoids 

malls, retail stores, and other 

businesses. 

On March 27, 2020, the President 

signed the Coronavirus Aid, Relief, and 

Economic Security Act (the CARES Act 

or the 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 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 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 Act provides for 

forgiveness of up to the full principal 

amount of qualifying loans guaranteed 

under the Paycheck Protection Program. 

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. On 

June 5, 2020, the President signed the 

Paycheck Protection Program Flexibility 

Act of 2020 (Flexibility Act) (Pub. L. 

116–142), which changed provisions of 

the PPP relating to the maturity of PPP 

loans, the deferral of PPP loan 

payments, and the forgiveness of PPP 

loans. 

II. Comments and Immediate Effective 

Date 

This interim final rule is effective 

without advance notice and public 

comment because section 1114 of the 

CARES 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 grounds that that 

it would be contrary to the public 

interest. Specifically, advance public 

notice and comment would defeat the 

purpose of this interim final rule given 

that SBA’s authority to guarantee PPP 

loans expires on June 30, 2020. These 

same reasons provide good cause for 

SBA to dispense with the 30-day 

delayed effective date provided in the 

Administrative Procedure Act (APA). 

Although this interim final rule is 

effective on or before date of filing, 

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 July 27, 2020. 

The SBA will consider these comments, 

comments received on the interim final 

rule posted on SBA’s website April 2, 

2020 (the First Interim Final Rule) and 

published in the Federal Register on 

April 15, 2020, comments received on 

the interim final rule posted on SBA’s 

website June 12, 2020 and published in 

the Federal Register on June 18, 2010, 

and the need for making any revisions 

as a result of these comments. 

III. Paycheck Protection Program— 

Additional Eligibility Revisions to First 

Interim Final Rule (85 FR 20811) 

Overview 

The CARES Act was enacted to 

provide immediate assistance to 

individuals, families, and businesses 

affected by the COVID–19 emergency. 

Among the provisions contained in the 

CARES Act are provisions authorizing 

SBA to temporarily guarantee loans 

under a new 7(a) loan program titled the 

‘‘Paycheck Protection Program.’’ Loans 

guaranteed under the Paycheck 

Protection Program (PPP) will be 100 

percent guaranteed by SBA, and the full 

principal amount of the loans may 

qualify for loan forgiveness. The 

purpose of this interim final rule is to 

make further changes to the First 

Interim Final Rule, posted on SBA’s 

website on April 2, 2020, and published 

in the Federal Register on April 15, 

2020 (85 FR 20811), as amended by the 

interim final rule posted on SBA’s 

website on June 12, 2020 and published 

in the Federal Register on June 18, 2020 

(85 FR 36717). The First Interim Final 

Rule, as amended, should be interpreted 

consistent with the frequently asked 

questions (FAQs) regarding the PPP that 

are posted on SBA’s website 1 and the 

other interim final rules issued 

regarding the PPP.2

1. Changes to the First Interim Final 

Rule 

Eligibility Requirements 

The First Interim Final Rule provided, 

among other things, that a PPP loan will 

not be approved if an owner of 20 

percent or more of the equity of the 

applicant has been convicted of a felony 

within the last five years. On June 12, 

2020, the First Interim Final Rule was 

amended after the Administrator, in 

consultation with the Secretary of the 

Treasury (the Secretary), determined 

that a shorter timeframe for felonies that 

do not involve fraud, bribery, 

embezzlement, or a false statement in a 

loan application or an application for 

federal financial assistance is more 

consistent with Congressional intent to 

provide relief to small businesses and 

also promotes the important policies 

underlying the First Step Act of 2018 

(Pub. L. 115–391). 

Upon further consideration, and in 

consultation with the Secretary, the 

Administrator has determined that two 

additional modifications to the First 

Interim Final Rule are appropriate to 

ensure a consistent approach to 

applicants with criminal histories. First, 

the First Interim Final Rule provided 

that an applicant is ineligible for a PPP 

loan if an owner of 20 percent or more 

of the equity of the applicant is 

presently subject to an indictment, 

criminal information, arraignment, or 

other means by which formal criminal 

charges are brought in any jurisdiction. 

The Administrator has determined that 

this restriction should be limited to 

pending criminal charges for felony 

offenses, which aligns with the 

Administrator’s prior determination that 

only felony convictions (but not 

convictions for other types of offenses) 

will limit an applicant’s eligibility for 

the PPP, subject to the time periods 

specified above. Second, the First 

Interim Final Rule provided that an 

applicant was ineligible for a PPP loan 

if an owner of 20 percent or more of the 

equity of the applicant is on probation 


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Federal Register / Vol. 85, No. 124 / Friday, June 26, 2020 / Rules and Regulations 38303 

or on parole. The Administrator has 

determined that this restriction should 

be limited to individuals whose 

probation or parole commenced within 

the time periods specified above—i.e., 

within the last five years for any felony 

involving fraud, bribery, embezzlement, 

or a false statement in a loan application 

or an application for federal financial 

assistance, and within the last one year 

for other felonies. Applying these time 

limitations to the probation and parole 

restriction aligns with the 

Administrator’s prior determination to 

apply the identical time limitations to 

felony convictions. Moreover, aligning 

the time limitations applicable to these 

restrictions is consistent with 

Congressional intent to provide relief to 

small businesses and also promotes the 

important policies underlying the First 

Step Act of 2018 (Pub. L. 115–391). This 

amendment does not affect the rule 

regarding applicants that are presently 

suspended, debarred, or proposed for 

debarment, which remains effective. 

Therefore, Part III.2.b.iii. of the First 

Interim Final Rule (85 FR 20811, 20812) 

is revised to read as follows: 

b. Could I be ineligible even if I meet 

the eligibility requirements in (a) above? 

You are ineligible for a PPP loan if, for 

example: 

* * * * * 

iii. An owner of 20 percent or more 

of the equity of the applicant is 

presently incarcerated or, for any felony, 

presently subject to an indictment, 

criminal information, arraignment, or 

other means by which formal criminal 

charges are brought in any jurisdiction; 

or has been convicted of, pleaded guilty 

or nolo contendere to, or commenced 

any form of parole or probation 

(including probation before judgment) 

for, a felony involving fraud, bribery, 

embezzlement, or a false statement in a 

loan application or an application for 

federal financial assistance within the 

last five years or any other felony within 

the last year; or 

* * * * * 

Under the First Interim Final Rule, as 

amended, an applicant is ineligible if an 

owner of 20 percent or more of its 

equity is presently incarcerated. In 

considering this amended Interim Final 

Rule the Administrator, in consultation 

with the Secretary, has determined that 

this restriction on eligibility remains 

appropriate because the operations of 

small business concerns present a 

greater danger of becoming impaired 

when their owners are incarcerated. As 

a result, they may have greater difficulty 

repaying their loans and present a 

greater credit risk. Although PPP loans 

may be forgiven under section 1106 of 

the CARES Act, PPP loans may only be 

forgiven in cases where borrowers can 

document that the proceeds were 

expended in accordance with the 

requirements of section 1106. In 

situations where the proceeds have not 

been used appropriately, and the loans, 

accordingly, cannot be forgiven, the 

borrowers’ ability to repay the loans 

remains an important consideration. In 

addition, ineligibility for businesses 

whose owners are currently incarcerated 

will help prevent misuse of PPP loan 

funds, irrespective of loan forgiveness 

considerations. 

Under the First Interim Final Rule, as 

amended, an applicant is also ineligible 

if an owner of 20 percent or more of its 

equity is, for any felony, subject to an 

indictment, criminal information, 

arraignment, or other means by which 

formal criminal charges are brought in 

any jurisdiction. Individuals charged 

with felonies are at risk of 

imprisonment, which, as discussed 

above, could place the creditworthiness 

of their businesses in question. 

Therefore, the Administrator, in 

consultation with the Secretary, has 

determined that this limitation also 

remains appropriate to ensure that PPP 

funds are not allocated to an applicant 

for which a recent felony charge may 

impair its ongoing business operations 

and therefore its ability to repay a PPP 

loan for reasons unrelated to the 

COVID–19 pandemic. 

Finally, under the First Interim Final 

Rule, as amended, an applicant is 

ineligible if an owner of 20 percent or 

more of its equity has been convicted of, 

pleaded guilty or nolo contendere to, or 

commenced any form of parole or 

probation (including probation before 

judgment) for, a felony involving fraud, 

bribery, embezzlement, or a false 

statement in a loan application or an 

application for federal financial 

assistance within the last five years or 

any other felony within the last year. 

The Administrator, in consultation with 

the Secretary, has determined that, in 

order to ensure program integrity and 

safeguard against misuse of PPP funds, 

it remains appropriate to require that 

applicants whose owners previously 

were convicted of or pleaded guilty or 

nolo contendere to a felony offense have 

avoided a further felony charge 

following conviction or incarceration for 

a period of at least one year before 

obtaining a PPP loan. This interval 

provides a reasonable level of assurance 

that such applicants do not present 

unacceptable risks of re-incarceration 

that could, as discussed above, 

undermine the ability of their 

businesses to repay their PPP loans. The 

Administrator, in consultation with the 

Secretary, has determined that a longer 

five-year limitation is appropriate for 

felonies involving fraud, bribery, 

embezzlement, or a false statement in a 

loan application or an application for 

federal financial assistance because 

such felonies are most relevant to the 

applicant’s business integrity and 

responsibility, and may indicate a 

greater risk of potential misuse of PPP 

loan funds. 

Each of the ineligible applicant 

categories described above has been 

formulated to reduce the risk of default 

and fraud in the PPP and to ensure that 

PPP loan funds are provided for small 

businesses that will be able to support 

jobs, consistent with Congressional 

intent in the CARES Act. These 

measures are particularly necessary in 

light of the structure of the PPP, in 

which lenders are subject to relatively 

few underwriting obligations before 

issuing loans that are 100 percent 

guaranteed by SBA and that may be 

subject to full forgiveness based on 

documentation provided by the 

borrower. While neither lenders nor 

SBA are conducting typical analysis of 

the characteristics of PPP applicants, the 

measures described above are intended 

to mitigate the risk of default, fraud, or 

misuse of PPP loan funds intended to 

benefit small business employees and at 

the same time balance that need with 

the need to assist in the rehabilitation of 

felons, who are working to become 

responsible and productive members of 

society. 

2. Additional Information 

SBA may provide further guidance, if 

needed, through SBA notices which 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 

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 


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38304 Federal Register / Vol. 85, No. 124 / Friday, June 26, 2020 / Rules and Regulations 

the current economic conditions arising 

from the COVID–19 emergency. This 

rule’s designation under Executive 

Order 13771 will be informed by public 

comment. 

This rule is necessary to implement 

Sections 1102 and 1106 of the CARES 

Act and the Flexibility Act in order to 

provide economic relief to small 

businesses nationwide adversely 

impacted under the COVID–19 

Emergency Declaration. We anticipate 

that this rule will result in substantial 

benefits to small businesses, their 

employees, and the communities they 

serve. However, we lack data to estimate 

the effects of this rule. 

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 effect but does have 

a limited retroactive effect consistent 

with section 3(d) of the Flexibility Act. 

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 require modification to the existing 

PPP information collection that is 

approved under OMB Control Number 

3245–0407 as an emergency request 

until October 31, 2020. As discussed 

above, this rule amends the PPP 

eligibility requirements regarding 

certain criminal activity. As a result of 

these amendments, conforming changes 

will be made to Questions 5 and 6 of 

Form 2483, Borrower Application Form, 

and Section H of Form 2484, Lender 

Application Form. SBA will submit the 

revisions to these forms to the Office of 

Management and Budget for approval. 

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. Small Business 

Administration’s 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. 

Authority: 15 U.S.C. 636(a)(36); 

Coronavirus Aid, Relief, and Economic 

Security Act, Pub. L. 116–136, Section 1114. 

Jovita Carranza, 

Administrator. 

[FR Doc. 2020–13942 Filed 6–24–20; 4:15 pm] 

BILLING CODE 8026–03–P 

SMALL BUSINESS ADMINISTRATION 

13 CFR Part 120 

[Docket No. SBA–2020–0038] 

RIN 3245–AH52 

DEPARTMENT OF THE TREASURY 

RIN 1505–AC70 

Business Loan Program Temporary 

Changes; Paycheck Protection 

Program—Revisions to Loan 

Forgiveness and Loan Review 

Procedures Interim Final Rules 

AGENCY: U.S. Small Business 

Administration; Department of the 

Treasury. 

ACTION: Interim final rule. 

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

Small Business Administration (SBA) 

posted on its website an interim final 

rule relating to the implementation of 

sections 1102 and 1106 of the 

Coronavirus Aid, Relief, and Economic 

Security Act (CARES Act or the Act) 

(published in the Federal Register on 

April 15, 2020). Section 1102 of the Act 

temporarily adds a new product, titled 

the ‘‘Paycheck Protection Program,’’ to 

the SBA’s 7(a) Loan Program. 

Subsequently, SBA and Treasury issued 

additional interim final rules 

implementing the Paycheck Protection 

Program. On June 5, 2020, the Paycheck 

Protection Program Flexibility Act of 

2020 (Flexibility Act) was signed into 

law, amending the CARES Act. This 

interim final rule revises interim final 

rules posted on SBA’s and the 

Department of the Treasury’s websites 

on May 22, 2020 (published on June 1, 

2020, in the Federal Register), by 

changing key provisions to conform to 

the Flexibility Act. Several of these 

amendments are retroactive to the date 

of enactment of the CARES Act, as 

required by section 3(d) of the 

Flexibility Act. 

DATES:

Effective Date: This interim final rule 

is effective March 27, 2020, except for 

the provision relating to the maturity 

date of PPP loans, which is effective 

June 5, 2020, and the provision relating 

to the cap on the amount of loan 

forgiveness for owner-employees and 

self-employed individuals, which is 

effective on June 24, 2020. 

Comment Date: Comments must be 

received on or before July 27, 2020. 

ADDRESSES: You may submit comments, 

identified by number SBA–2020–0038, 

through the Federal eRulemaking Portal: 

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

instructions for submitting comments. 


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