36308 Federal Register / Vol. 85, No. 116 / Tuesday, June 16, 2020 / Rules and Regulations 

revising the TN Americas LLC 

NUHOMS® EOS Dry Spent Fuel Storage 

System listing within the ‘‘List of 

approved spent fuel storage casks’’ to 

include Amendment No. 1 to Certificate 

of Compliance No. 1042. Amendment 

No. 1 makes the following changes: 

Adds a new basket type (Type 4) to 

allow for the loading of intact, damaged, 

or failed fuel; adds another new basket 

type (Type 5); accepts fuel assemblies 

with a minimum two-year cooling time, 

in selected locations within the basket; 

and adds the NUHOMS® MATRIX 

design as an alternative to the EOS 

horizontal storage module design for the 

storage of spent fuel. Amendment No. 1 

also makes other additional revisions to 

the certificate of compliance and the 

technical specifications for consistency 

and clarity. 

DATES: 

Effective date: The effective date of 

June 17, 2020, for the direct final rule 

published April 3, 2020 (85 FR 18857), 

is confirmed. 

ADDRESSES: Please refer to Docket ID 

NRC–2019–0224 when contacting the 

NRC about the availability of 

information for this action. You may 

obtain publicly-available information 

related to this action by any of the 

following methods: 

• Federal Rulemaking Website: Go to 

https://www.regulations.gov and search 

for Docket ID NRC–2019–0224. Address 

questions about NRC dockets to Carol 

Gallagher; telephone: 301–415–3463; 

email: Carol.Gallagher@nrc.gov. For 

technical questions, contact the 

individuals listed in the FOR FURTHER

INFORMATION CONTACT section of this 

document. 

• NRC’s Agencywide Documents 

Access and Management System 

(ADAMS): You may obtain publiclyavailable documents online in the 

ADAMS Public Documents collection at 

https://www.nrc.gov/reading-rm/ 

adams.html. To begin the search, select 

‘‘Begin Web-based ADAMS Search.’’ For 

problems with ADAMS, please contact 

the NRC’s Public Document Room (PDR) 

reference staff at 1–800–397–4209, 301– 

415–4737, or by email to pdr.resource@

nrc.gov. The proposed amendment to 

the certificate, the proposed changes to 

the technical specifications, and 

preliminary safety evaluation report are 

available in ADAMS under Accession 

No. ML19290H600. The final 

amendment to the certificate, final 

changes to the technical specifications, 

and final safety evaluation report can 

also be viewed in ADAMS under 

Accession No. ML20136A048. 

• Attention: The Public Document 

Room (PDR), where you may examine 

and order copies of public documents, 

is currently closed. You may submit 

your request to the PDR via email at 

PDR.Resource@nrc.gov or call 1–800– 

397–4209 between 8:00 a.m. and 4:00 

p.m. (EST), Monday through Friday, 

except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: 

Christian Jacobs, Office of Nuclear 

Material Safety and Safeguards; 

telephone: 301–415–6825; email: 

Christian.Jacobs@nrc.gov or Nicole 

Fields, Office of Nuclear Material Safety 

and Safeguards, telephone: 630–829– 

9570; email: Nichole.Fields@nrc.gov. 

Both are staff of the U.S. Nuclear 

Regulatory Commission, Washington, 

DC 20555–0001. 

SUPPLEMENTARY INFORMATION: On April 

3, 2020 (85 FR 18857), the NRC 

published a direct final rule amending 

its regulations in part 72 of title 10 of 

the Code of Federal Regulations by 

revising the TN Americas LLC 

NUHOMS® EOS Dry Spent Fuel Storage 

System listing within the ‘‘List of 

approved spent fuel storage casks’’ to 

include Amendment No. 1 to Certificate 

of Compliance No. 1042. Amendment 

No. 1 makes the following changes: 

Adds a new basket type (Type 4) to 

allow for the loading of intact, damaged, 

or failed fuel; adds another new basket 

type (Type 5); accepts fuel assemblies 

with a minimum two-year cooling time, 

in selected locations within the basket; 

and adds the NUHOMS® MATRIX 

design as an alternative to the EOS 

horizontal storage module design for the 

storage of spent fuel. Amendment No. 1 

also makes other additional revisions to 

the certificate of compliance and the 

technical specifications for consistency 

and clarity. 

In the direct final rule published on 

April 3, 2020, the NRC stated that if no 

significant adverse comments were 

received, the direct final rule would 

become effective on June 17, 2020. The 

NRC received and docketed two 

comments on the companion proposed 

rule (85 FR 18876; April 3, 2020). 

Electronic copies of these comments can 

be obtained from the Federal 

Rulemaking website https://

www.regulations.gov under Docket ID 

NRC–2019–0224, and are also available 

in ADAMS under Accession Nos. 

ML20118C707 and ML20126G364. 

The NRC evaluated the comments 

against the criteria described in the 

direct final rule and determined that 

they were not significant and adverse. 

Specifically, the comments were outside 

the scope of this rulemaking, did not 

oppose the rule, or did not propose a 

change to the rule, such that the rule 

would be ineffective or unacceptable 

without incorporation of the change. 

Therefore, the direct final rule will 

become effective as scheduled. 

Dated: May 26, 2020. 

For the Nuclear Regulatory Commission. 

Cindy K. Bladey, 

Chief, Regulatory Analysis and Rulemaking 

Support Branch, Division of Rulemaking, 

Environmental, and Financial Support, Office 

of Nuclear Material Safety and Safeguards. 

[FR Doc. 2020–11691 Filed 6–15–20; 8:45 am] 

BILLING CODE 7590–01–P 

SMALL BUSINESS ADMINISTRATION 

13 CFR Part 120 

[Docket No. SBA–2020–0035] 

RIN 3245–AH49 

Business Loan Program Temporary 

Changes; Paycheck Protection 

Program—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 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 SBA’s interim 

final rule published in the Federal 

Register on April 15, 2020, by changing 

key provisions, such as the loan 

maturity, deferral of loan payments, and 

forgiveness provisions, to conform to 

the Flexibility Act. SBA also is making 

conforming amendments to the use of 

PPP loan proceeds for consistency with 

amendments made in 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 Dates: The provisions in this 

interim final rule related to loan 

forgiveness and deferral periods for PPP 


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Federal Register / Vol. 85, No. 116 / Tuesday, June 16, 2020 / Rules and Regulations 36309 

loans are effective March 27, 2020. The 

provision in this interim final rule 

relating to the maturity date of PPP 

loans is effective June 5, 2020. The 

remaining provisions in this interim 

final rule are effective June 12, 2020. 

Comment Date: Comments must be 

received on or before July 16, 2020. 

ADDRESSES: You may submit comments, 

identified by number SBA–2020–0035, 

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, 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. 

A more detailed discussion of sections 

1102 and 1106 of the Act is found in 

section III below. 

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 changes key provisions 

of the Paycheck Protection Program, 

including provisions relating to the 

maturity of PPP loans, the deferral of 

PPP loan payments, and the forgiveness 

of PPP loans. Section 3(d) of the 

Flexibility Act provides that the 

amendments relating to PPP loan 

forgiveness and extension of the deferral 

period for PPP loans shall be effective 

as if included in the CARES Act, which 

means that they are retroactive to March 

27, 2020. Section 2 of the Flexibility Act 

provides that the amendment relating to 

the extension of the maturity date for 

PPP loans shall take effect on the date 

of enactment (June 5, 2020). Under the 

Flexibility Act, the extension of the 

maturity date for PPP loans is applicable 

to PPP loans made on or after that date, 

and lenders and borrowers may 

mutually agree to modify PPP loans 

made before such date to reflect the 

longer maturity. 

II. Comments and Retroactive/ 

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, and that 

many PPP borrowers can now apply for 

loan forgiveness following the end of 

their eight-week covered period. 

Providing borrowers and lenders with 

certainty on both loan requirements and 

loan forgiveness requirements following 

the enactment of the Flexibility Act will 

enhance the ability of lenders to make 

loans and process loan forgiveness 

applications, particularly in light of the 

fact that most of the Flexibility Act’s 

provisions are retroactive to March 27, 

2020. Specifically, small businesses that 

have yet to apply for and receive a PPP 

loan need to be informed of the terms 

of PPP loans as soon as possible, 

because the last day on which a lender 

can obtain an SBA loan number for a 

PPP loan is June 30, 2020. Borrowers 

who already have applied for and 

received a PPP loan need certainty 

regarding how loan proceeds must be 

used during the covered period, as 

amended by the Flexibility Act, so that 

they can maximize the amount of loan 

forgiveness. These same reasons provide 

good cause for SBA to dispense with the 

30-day delayed effective date provided 

in the Administrative Procedure Act. 

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 16, 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, and the need for making 

any revisions as a result of these 

comments. 

III. Paycheck Protection Program— 

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 

Flexibility Act amends the CARES Act 

and amends provisions relating to loan 

terms and loan forgiveness. The purpose 

of this interim final rule is to make 

changes to the First Interim Final Rule, 


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36310 Federal Register / Vol. 85, No. 116 / Tuesday, June 16, 2020 / Rules and Regulations 

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

faq-lenders-borrowers. 

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

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

3Under section 3(b)(1) of the Flexibility Act, the 

loan forgiveness covered period of any borrower 

will end no later than December 31, 2020. 

posted on SBA’s website on April 2, 

2020, and published in the Federal 

Register on April 15, 2020 (85 FR 

20811). The First Interim Final Rule, as 

amended by this interim final rule, 

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 

a. Covered Period for PPP Loans 

Section 3(a) of the Flexibility Act 

amended the definition of ‘‘covered 

period’’ for a PPP loan from ‘‘the period 

beginning on February 15, 2020 and 

ending on June 30, 2020’’ to ‘‘the period 

beginning on February 15, 2020 and 

ending on December 31, 2020.’’ 

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

Interim Final Rule (85 FR 20811, 20813) 

is revised by striking ‘‘June 30, 2020’’ 

and replacing it with ‘‘December 31, 

2020’’. Section 3(d) of the Flexibility 

Act provides that this amendment shall 

be effective as if included in the CARES 

Act, which was signed into law on 

March 27, 2020. 

This amendment by the Flexibility 

Act applies to the definition of ‘‘covered 

period’’ that appears in section 1102 of 

the CARES Act, governing loan use, 

loan eligibility, and related 

requirements. It does not alter the 

meaning of ‘‘covered period’’ that 

appears in section 1106 of the CARES 

Act governing loan forgiveness, which is 

addressed by a different provision of the 

Flexibility Act. 

b. Maturity Date for PPP Loans 

Section 2(a) of the Flexibility Act 

amended the CARES Act to provide a 

minimum maturity of five years for all 

PPP loans made on or after the date of 

enactment of the Flexibility Act. 

Therefore, Part III.2.j. of the First 

Interim Final Rule (85 FR 20811, 20813) 

is revised to read as follows: 

j. What will be the maturity date on 

a PPP loan? 

For loans made before June 5, 2020, 

the maturity is two years; however, 

borrowers and lenders may mutually 

agree to extend the maturity of such 

loans to five years. For loans made on 

or after June 5, the maturity is five years. 

Section 2 of the Paycheck Protection 

Program Flexibility Act of 2020 

(Flexibility Act) amended the CARES 

Act to provide a minimum maturity of 

5 years for all PPP loans made on or 

after its enactment. The Administrator, 

in consultation with the Secretary, 

determined that the date SBA assigns a 

loan number to the PPP loan provides 

an efficient, transparent, and auditable 

means of determining when a PPP loan 

is ‘‘made’’ that provides certainty to 

lenders. While the CARES Act provides 

that a loan will have a maximum 

maturity of up to ten years from the date 

the borrower applies for loan 

forgiveness, the Administrator, in 

consultation with the Secretary, 

determined that a five-year loan term is 

sufficient in light of the temporary 

economic dislocations caused by the 

coronavirus. Specifically, the 

considerable economic disruption 

caused by the coronavirus is expected to 

abate well before the five-year maturity 

date such that borrowers will be able to 

resume business operations and pay off 

any outstanding balances on their PPP 

loans. 

c. Deferral Period for PPP Loans 

Section 3(c) of the Flexibility Act 

extended the deferral period on PPP 

loans. Therefore, Part III.2.n. of the First 

Interim Final Rule (85 FR 20811, 20813) 

is revised to read as follows: 

n. When will I have to begin paying 

principal and interest on my PPP loan? 

If you submit to your lender a loan 

forgiveness application within 10 

months after the end of your loan 

forgiveness covered period, you will not 

have to make any payments of principal 

or interest on your loan before the date 

on which SBA remits the loan 

forgiveness amount on your loan to your 

lender (or notifies your lender that no 

loan forgiveness is allowed). 

Your ‘‘loan forgiveness covered 

period’’ is the 24-week period beginning 

on the date your PPP loan is disbursed; 

however, if your PPP loan was made 

before June 5, 2020, you may elect to 

have your loan forgiveness covered 

period be the eight-week period 

beginning on the date your PPP loan 

was disbursed.3 Your lender must notify 

you of remittance by SBA of the loan 

forgiveness amount (or notify you that 

SBA determined that no loan 

forgiveness is allowed) and the date 

your first payment is due. Interest 

continues to accrue during the 

deferment period. 

If you do not submit to your lender a 

loan forgiveness application within 10 

months after the end of your loan 

forgiveness covered period, you must 

begin paying principal and interest after 

that period. For example, if a borrower’s 

PPP loan is disbursed on June 25, 2020, 

the 24-week period ends on December 

10, 2020. If the borrower does not 

submit a loan forgiveness application to 

its lender by October 10, 2021, the 

borrower must begin making payments 

on or after October 10, 2021. 

d. Loan Forgiveness 

Section 3(b) of the Flexibility Act 

amended the requirements concerning 

forgiveness of PPP loans to reduce the 

amount of PPP loan proceeds that must 

be used for payroll costs in order to be 

forgivable, and the law also created a 

new exemption for borrowers to avoid a 

reduction in loan forgiveness amount 

when they have a reduction in full-time 

equivalent employees. While the 

Flexibility Act provides that a borrower 

shall use at least 60 percent of the PPP 

loan for payroll costs to receive loan 

forgiveness, the Administrator, in 

consultation with the Secretary, 

interprets this requirement as a 

proportional limit on nonpayroll costs 

as a share of the borrower’s loan 

forgiveness amount, rather than as a 

threshold for receiving any loan 

forgiveness. This interpretation is 

consistent with the new safe harbor in 

the Flexibility Act. The new safe harbor 

provides that if a borrower is unable to 

rehire previously employed individuals 

or similarly qualified employees, the 

borrower will not have its loan 

forgiveness amount reduced based on 

the reduction in full-time equivalent 

employees. It would be incongruous to 

interpret the Flexibility Act’s 60 percent 

requirement as a threshold for receiving 

any loan forgiveness, because in some 

cases it would directly conflict with the 

flexibility provided by the new safe 

harbor. Further, the 60 percent 

requirement in the Flexibility Act was 

enacted against the backdrop of SBA’s 

existing rules governing the PPP, which 

Congress was aware of and which 

provided for proportional reductions in 

loan forgiveness for borrowers that used 

less than 75% of their loan amount 

during the eight-week covered period 

for payroll costs. In addition, this 

interpretation of the 60 percent 

requirement under the Flexibility Act is 

most consistent with Congress’s purpose 

in that legislation—namely, to increase 

the flexibility provided to borrowers 

related to PPP loan forgiveness. 

In addition, as noted in paragraph d. 

above, in seeking loan forgiveness, an 

eligible borrower whose loan was made 

before June 5, 2020 may elect to apply 

the original eight-week covered period 

under the CARES Act instead of the 24- 

week covered period referenced above. 

See Flexibility Act, section 3(b)(3). 


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SBA will be issuing revisions to its 

interim final rules on loan forgiveness 

and loan review procedures to address 

amendments the Flexibility Act made to 

the loan forgiveness requirements. SBA 

will also be issuing additional guidance 

on advance purchases of PPP loans, 

which will include any effect of the 

amendments made to the loan 

forgiveness requirements. For the 

reasons described above, Part III.2.o. of 

the First Interim Final Rule (85 FR 

20811, 20813) is revised to read as 

follows: 

o. Can my PPP loan be forgiven in 

whole or in part? 

Yes. The amount of loan forgiveness 

can be up to the full principal amount 

of the loan and any accrued interest. An 

eligible borrower will not be responsible 

for any loan payment if the borrower 

uses all of the loan proceeds for 

forgivable purposes as described below 

and employee and compensation levels 

are maintained or, if not, an applicable 

safe harbor applies. The actual amount 

of loan forgiveness will depend, in part, 

on the total amount of payroll costs, 

payments of interest on mortgage 

obligations incurred before February 15, 

2020, rent payments on leases dated 

before February 15, 2020, and utility 

payments for service that began before 

February 15, 2020, over the loan 

forgiveness covered period. However, to 

receive full loan forgiveness, a borrower 

must use at least 60 percent of the PPP 

loan for payroll costs, and not more than 

40 percent of the loan forgiveness 

amount may be attributable to 

nonpayroll costs. For example, if a 

borrower uses 59 percent of its PPP loan 

for payroll costs, it will not receive the 

full amount of loan forgiveness it might 

otherwise be eligible to receive. Instead, 

the borrower will receive partial loan 

forgiveness, based on the requirement 

that 60 percent of the forgiveness 

amount must be attributable to payroll 

costs. For example, if a borrower 

receives a $100,000 PPP loan, and 

during the covered period the borrower 

spends $54,000 (or 54 percent) of its 

loan on payroll costs, then because the 

borrower used less than 60 percent of its 

loan on payroll costs, the maximum 

amount of loan forgiveness the borrower 

may receive is $90,000 (with $54,000 in 

payroll costs constituting 60 percent of 

the forgiveness amount and $36,000 in 

nonpayroll costs constituting 40 percent 

of the forgiveness amount). 

e. Use of PPP Loan Proceeds 

For consistency with the amendments 

made in the Flexibility Act regarding 

the percentage of loan proceeds that 

must be used for payroll costs in order 

to be forgiven, discussed in paragraph 

2.e. above, Part III.2.r. of the First 

Interim Final Rule (85 FR 20811, 20814) 

is revised to read as follows: 

r. How can PPP loans be used? 

The proceeds of a PPP loan are to be 

used for: 

i. payroll costs (as defined in the Act 

and in 2.f.); 

ii. costs related to the continuation of 

group health care benefits during 

periods of paid sick, medical, or family 

leave, and insurance premiums; 

iii. mortgage interest payments (but 

not mortgage prepayments or principal 

payments); 

iv. rent payments; 

v. utility payments; 

vi. interest payments on any other 

debt obligations that were incurred 

before February 15, 2020; and/or 

vii. refinancing an SBA EIDL loan 

made between January 31, 2020 and 

April 3, 2020. If you received an SBA 

EIDL loan from January 31, 2020 

through April 3, 2020, you can apply for 

a PPP loan. If your EIDL loan was not 

used for payroll costs, it does not affect 

your eligibility for a PPP loan. If your 

EIDL loan was used for payroll costs, 

your PPP loan must be used to refinance 

your EIDL loan. Proceeds from any 

advance up to $10,000 on the EIDL loan 

will be deducted from the loan 

forgiveness amount on the PPP loan. 

At least 60 percent of the PPP loan 

proceeds shall be used for payroll costs. 

For purposes of determining the 

percentage of use of proceeds for payroll 

costs, the amount of any EIDL 

refinanced will be included. For 

purposes of loan forgiveness, however, 

the borrower will have to document the 

proceeds used for payroll costs in order 

to determine the amount of forgiveness. 

While the Act provides that PPP loan 

proceeds may be used for the purposes 

listed above and for other allowable 

uses described in section 7(a) of the 

Small Business Act (15 U.S.C. 636(a)), 

the Administrator believes that finite 

appropriations and the structure of the 

Act warrant a requirement that 

borrowers use a substantial portion of 

the loan proceeds for payroll costs, 

consistent with Congress’ overarching 

goal of keeping workers paid and 

employed. This percentage is consistent 

with the limitation on the forgiveness 

amount set forth in the Flexibility Act. 

This limitation on use of the loan funds 

will help to ensure that the finite 

appropriations available for these loans 

are directed toward payroll protection, 

as each loan that is issued depletes the 

appropriation, regardless of whether 

portions of the loan are later forgiven. 

f. Borrower Certifications 

For consistency with the changes 

discussed in paragraphs 2.e. and f. 

above, Parts III.2.t.iii., iv., and v. of the 

First Interim Final Rule (85 FR 20811, 

20814) are revised to read as follows: 

t. What certifications need to be 

made? 

* * * * * 

iii. The funds will be used to retain 

workers and maintain payroll or make 

mortgage interest payments, lease 

payments, and utility payments; I 

understand that if the funds are 

knowingly used for unauthorized 

purposes, the Federal Government may 

hold me legally liable such as for 

charges of fraud. As explained above, 

not more than 40 percent of loan 

proceeds may be used for nonpayroll 

costs. 

iv. Documentation verifying the 

number of full-time equivalent 

employees on payroll as well as the 

dollar amounts of payroll costs, covered 

mortgage interest payments, covered 

rent payments, and covered utilities for 

the loan forgiveness covered period for 

the loan will be provided to the lender. 

v. Loan forgiveness will be provided 

for the sum of documented payroll 

costs, covered mortgage interest 

payments, covered rent payments, and 

covered utility payments. As explained 

above, not more than 40 percent of the 

forgiven amount may be used for 

nonpayroll costs. 

* * * * * 

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 

the current economic conditions arising 


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36312 Federal Register / Vol. 85, No. 116 / Tuesday, June 16, 2020 / Rules and Regulations 

from the COVID–19 emergency. This 

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 modify existing recordkeeping or 

reporting requirements under the 

Paperwork Reduction Act. The 

amendments to the PPP made by the 

Flexibility Act and implemented in this 

interim final rule will require 

conforming revisions to the PPP 

Borrower Application Form (SBA Form 

2483), the PPP Lender Application Form 

(SBA Form 2484), and the PPP Loan 

Forgiveness Application (SBA Form 

3508). SBA will submit the modified 

forms to OMB for approval as a 

modification to the existing PPP 

information collection. This information 

collection is currently approved as an 

emergency request under OMB Control 

Number 3245–0407 until October 31, 

2020. 

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 Ac. Ch.1. p.9. 

Accordingly, SBA is not required to 

conduct a regulatory flexibility analysis. 

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

Protection Program Flexibility Act of 2020, 

Pub. L. 116–142; Coronavirus Aid, Relief, 

and Economic Security Act, Pub. L. 116–136, 

Section 1114. 

Jovita Carranza, 

Administrator. 

[FR Doc. 2020–12909 Filed 6–12–20; 11:15 am] 

BILLING CODE P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2020–0466; Project 

Identifier MCAI–2020–00504–A; Amendment 

39–21143; AD 2020–12–08] 

RIN 2120–AA64 

Airworthiness Directives; Embraer S.A. 

(Type Certificate Previously Held by 

Empresa Brasileira de Aerona ́utica 

S.A.) Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule; request for 

comments. 

SUMMARY: The FAA is superseding 

airworthiness directive (AD) 2011–20– 

01 for certain Empresa Brasileira de 

Aerona ́utica S.A. (now Embraer S.A.) 

Model EMB–505 airplanes. AD 2011– 

20–01 required replacing the bolts that 

attach the balance mass weights to the 

elevator structure. This AD requires 

inspections of the mass-balance weights 

of the elevators, ailerons, and rudder 

(flight control surfaces) and their 

attachment parts and corrective actions 

if necessary, and revising the 

airworthiness limitation section of the 

existing maintenance manual or 

instructions for continued airworthiness 

to incorporate new airworthiness 

limitations. This AD also adds airplanes 

to the applicability. This AD was 

prompted by reports of corrosion in the 

mass-balance weights of the flight 

control surfaces, and a determination 

that new airworthiness limitations are 

necessary. The FAA is issuing this AD 

to address the unsafe condition on these 

products. 

DATES: This AD is effective July 1, 2020. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in this AD 

as of July 1, 2020. 

The FAA must receive any comments 

on this AD by July 31, 2020. 

ADDRESSES: You may send comments, 

using the procedures found in 14 CFR 

11.43 and 11.45, by any of the following 

methods: 

• Federal eRulemaking Portal: Go to 

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

instructions for submitting comments. 


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