This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

31357 

Vol. 85, No. 101 

Tuesday, May 26, 2020 

1https://www.sba.gov/sites/default/files/2020-05/ 

Paycheck-Protection-Program-Frequently-AskedQuestions_05%2013%2020_2.pdf. 

2 Id. 

SMALL BUSINESS ADMINISTRATION 

13 CFR Part 120 

[Docket Number SBA–2020–0031] 

RIN 3245–AH45 

Business Loan Program Temporary 

Changes; Paycheck Protection 

Program—Second Extension of 

Limited Safe Harbor With Respect to 

Certification Concerning Need for PPP 

Loan and Lender Reporting 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Interim final rule. 

SUMMARY: On May 8, 2020, the U.S. 

Small Business Administration (SBA) 

posted an interim final rule relating to 

the extension of a safe harbor with 

respect to a certification required by the 

Coronavirus Aid, Relief, and Economic 

Security Act (CARES Act or the Act) in 

connection with the implementation of 

a temporary new program, titled the 

‘‘Paycheck Protection Program.’’ This 

interim final rule revises the interim 

final rule posted on May 8, 2020, and 

published in the Federal Register on 

May 19, 2020, by extending the date by 

which certain Paycheck Protection 

Program (PPP) borrowers may repay 

their loans from May 14, 2020 to May 

18, 2020, in order to avail themselves of 

a safe harbor with respect to the 

certification required by the Act, and by 

extending the timeframe for submission 

of the initial SBA Form 1502 report for 

PPP loans. This interim final rule 

supplements SBA’s implementation of 

the Act and requests public comment. 

DATES: 

Effective date: This rule is effective 

May 26, 2020. 

Comment date: Comments must be 

received on or before June 25, 2020. 

ADDRESSES: You may submit comments, 

identified by number SBA–2020–0031 

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 even stay-athome orders, are being 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. 

II. Comments and Immediate Effective 

Date 

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, in 

consultation with the Department of the 

Treasury, issued additional guidance 

with regard to the safe harbor posted on 

SBA’s website on May 13, 2020. See 

FAQ 46 (posted May 13, 2020).1 SBA, in 

consultation with the Department of the 

Treasury, determined that extending the 

safe harbor deadline from May 14, 2020 

to May 18, 2020 would afford Paycheck 

Protection Program borrowers time to 

review SBA’s May 13, 2020 guidance 

and decide whether to avail themselves 

of the safe harbor. SBA previously 

announced this intended extension in 

nonbinding guidance published on May 

13, 2020. See FAQ 47 (posted on May 

13, 2020).2 SBA, in consultation with 

the Department of the Treasury, 

determined that the immediate effective 

date of this interim final rule would 

benefit lenders by allowing them to 

swiftly close and disburse loans to small 

businesses and fulfill associated 

reporting requirements. Advance notice 

and public comment would defeat the 

purpose of this interim final rule given 

the existing May 22, 2020 deadline for 

lenders to submit the initial SBA Form 

1502 report for PPP loans, which this 

interim final rule extends to the later of 

(1) May 29, 2020; or (2) 10 calendar days 

31358 Federal Register / Vol. 85, No. 101 / Tuesday, May 26, 2020 / Rules and Regulations 

after disbursement or cancellation of a 

PPP loan. 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 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 25, 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 Second Extension of 

Limited Safe Harbor With Respect to 

Certification Concerning Need for PPP 

Loan Request and Lender Reporting 

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 Paycheck Protection Program 

(PPP). Loans under the PPP are 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, 85 FR 29845, 85 FR 29842, 85 FR 

29847, and 85 FR 30835) (collectively, 

the PPP Interim Final Rules). 

1. Second Extension of Limited Safe 

Harbor With Respect to Certification 

Concerning Need for PPP Loan Request 

The Act requires each applicant 

applying for a PPP loan to certify in 

good faith ‘‘that the uncertainty of 

current economic conditions makes 

necessary the loan request to support 

the ongoing obligations’’ of the 

applicant. On April 24, 2020, SBA 

posted on its website an interim final 

rule (the Fourth PPP Interim Final 

Rule), which also was published in the 

Federal Register on April 28, 2020 (85 

FR 23450), to provide relief to PPP 

borrowers that applied for and received 

PPP loans based on a misunderstanding 

or misapplication of the required goodfaith certification standard. The Fourth 

PPP Interim Final Rule provides that 

any borrower that applied for a PPP loan 

and repays the loan in full by May 7, 

2020, will be deemed by SBA to have 

made the required certification in good 

faith. On May 5, 2020, SBA, in 

consultation with the Department of the 

Treasury, issued additional guidance to 

extend the safe harbor deadline from 

May 7, 2020 to May 14, 2020. See FAQ 

43 (posted May 5, 2020) and SBA’s 

interim final rule on Extension of 

Limited Safe Harbor with Respect to 

Certification Concerning Need for PPP 

Loan Request, posted May 8, 2020, and 

published in the Federal Register on 

May 19, 2020 (85 FR 29845). SBA, in 

consultation with the Department of the 

Treasury, issued additional guidance on 

May 13, 2020 concerning how SBA will 

review the required good-faith 

certification to help PPP borrowers 

evaluate whether they may have 

misunderstood or misapplied the 

statutory certification standard. See 

FAQ 46 (posted May 13, 2020). This 

guidance included an additional safe 

harbor providing that any PPP borrower, 

together with its affiliates, that received 

PPP loans with an original principal 

amount of less than $2 million will be 

deemed to have made the required 

certification concerning the necessity of 

the loan request in good faith. Based on 

this guidance, SBA, in consultation with 

the Department of the Treasury, 

determined that it is necessary and 

appropriate to further extend the safe 

harbor deadline for repaying PPP loans 

from May 14, 2020 to May 18, 2020. See 

FAQ 47 (posted May 13, 2020). 

Second Extension of Limited Safe 

Harbor with Respect to Good-Faith 

Certification Concerning Need for PPP 

Loan Request. Consistent with section 

1102 of the CARES Act, the Borrower 

Application Form requires PPP 

applicants to certify in good faith that 

‘‘[c]urrent economic uncertainty makes 

this loan request necessary to support 

the ongoing operations of the 

Applicant.’’ Any borrower that applied 

for a PPP loan and repays the loan in 

full by May 18, 2020 will be deemed by 

SBA to have made the required 

certification in good faith. The 

Administrator, in consultation with the 

Secretary, determined that this safe 

harbor is necessary and appropriate to 

ensure that borrowers promptly repay 

PPP loan funds that the borrower 

obtained based on a misunderstanding 

or misapplication of the statutory 

certification standard. 

2. Lender Reporting 

The extension of the safe harbor and 

administrative convenience necessitate 

a corresponding date change to the 

interim final rule that SBA posted on its 

website on April 28, 2020, which was 

published in the Federal Register on 

May 4, 2020 (85 FR 26321), regarding 

PPP loan disbursements (the May 4 

Interim Final Rule), as amended by the 

interim final rule that SBA posted on its 

website on May 8, 2020 (the May 8 

Interim Final Rule). Specifically, Part 

III.1.b. of the May 4 Interim Final Rule 

provided that lenders must 

electronically upload SBA Form 1502 

reporting information within 20 

calendar days after a PPP loan is 

approved or, for loans approved before 

the availability of the updated SBA 

Form 1502 reporting process, by May 

18, 2020. 85 FR 26321, 26323. The May 

8 Interim Final Rule extended the 

deadline for the submission of the 

initial SBA Form 1502 reporting 

information from May 18, 2020 to May 

22, 2020 because of the extension of the 

safe harbor deadline to May 14, 2020. 

Because of the extension of the safe 

harbor deadline from May 14, 2020 to 

May 18, 2020 and to promote the 

administrability of the PPP, SBA is 

further extending the timelines for 

reporting Form 1502 information, such 

that lenders must electronically upload 

SBA Form 1502 reporting information 

by the later of: (1) May 29, 2020, or (2) 

10 calendar days after disbursement or 

cancellation of a PPP loan. 

As noted in the May 4 Interim Final 

Rule, lenders must disburse PPP loans 

within 10 calendar days of loan 

approval; a loan is considered approved 

when the loan is assigned a loan 

number by the SBA. Loans for which 

funds have not been disbursed because 

a borrower has not submitted required 

loan documentation within 20 calendar 

days of loan approval shall be cancelled 

by the lender. These two requirements 

remain unchanged. 

The extension of the safe harbor and 

administrative convenience also require 

an identical corresponding date change 

to the interim final rule that SBA posted 

on May 13, 2020, regarding PPP loan 

increases. Specifically, that interim final 

rule states, in Parts III and III.2.b., that 

SBA Form 1502 reporting information 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. As described above, SBA is 

further extending timelines for reporting 

Form 1502 information, such that 

lenders must electronically upload SBA 

Form 1502 reporting information by the 

later of: (1) May 29, 2020, or (2) 10 

calendar days after disbursement or 

cancellation of a PPP loan. 

The Administrator, in consultation 

with the Secretary, believes that 

clarifying timelines for lender reporting 

will enable lenders to swiftly close and 

disburse loans and will enhance the 

Federal Register / Vol. 85, No. 101 / Tuesday, May 26, 2020 / Rules and Regulations 31359 

administrability of key program 

components by enabling lenders and 

SBA to process data regarding loan 

disbursements and cancelations in a 

streamlined manner. 

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 

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), and the good 

cause exemption under 5 U.S.C. 809(2), 

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. 2020–11292 Filed 5–22–20; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2020–0064; Project 

Identifier 2019–SW–096–AD; Amendment 

39–21132; AD 2020–11–07] 

RIN 2120–AA64 

Airworthiness Directives; MD 

Helicopter Inc., Helicopters 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for MD 

Helicopters Inc., (MDHI) Model 369D, 

369E, 369FF, 369H, 369HE, 369HM, 

369HS, 500N, and 600N helicopters. 

This AD was prompted by a report of 

non-conforming main rotor (M/R) hub 

lead-lag bolts (bolts). This AD requires 

removing certain bolts from service. The 

FAA is issuing this AD to address the 

unsafe condition on these products. 

DATES: This AD is effective June 30, 

2020. 

The Director of the Federal Register 

approved the incorporation by reference 

of certain publications listed in this AD 

as of June 30, 2020. 

ADDRESSES: For service information 

identified in this final rule, contact MD 

Helicopters, Inc., Attn: Customer 

Support Division, 4555 E. McDowell 

Rd., Mail Stop M615, Mesa, AZ 85215– 

9734; telephone 1–800–388–3378; fax 

480–346–6813; or at https://

www.mdhelicopters.com. You may view 

this service information at the FAA, 

Office of the Regional Counsel, 

Southwest Region, 10101 Hillwood 

Pkwy, Room 6N–321, Fort Worth, TX 

76177. For information on the 

availability of this material at the FAA, 

call 817–222–5110. It is also available 

on the internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2020– 

0064. 

Examining the AD Docket 

You may examine the AD docket on 

the internet at https://

www.regulations.gov by searching for 

and locating Docket No. FAA–2020–