Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Rules and Regulations 15083 

5Recommendation 95–4, referencing the 

Administrative Procedure Act ‘‘good cause’’ 

exemption at 5 U.S.C. 553(b)(B), adopted June 15, 

1995. 

subsequent rulemaking. We may also 

engage in a rulemaking that implements 

section 5.61C(h) of the Act, which 

governs the chartering, termination, and 

dissolution of System bridge banks that 

enable FCSIC to handle the resolution of 

one or more distressed FCS institutions. 

IV. Direct Final Rule 

For the reasons discussed above, we 

are rescinding the above-referenced 

sections of part 627 subparts B 

(Receivers and Receiverships) and C 

(Conservators and Conservatorships) by 

direct final rulemaking. The 

Administrative Conference of the 

United States recommends direct final 

rulemakings for Federal agencies to 

enact noncontroversial regulations on 

an expedited basis, without the usual 

notice and comment period.5 This 

process enables us to reduce the time 

and resources we need to develop, 

review, and publish a final rule while 

still affording the public an adequate 

opportunity to comment or object to the 

rule. 

In a direct final rulemaking, we notify 

the public that the rule will become 

effective on a specified date unless we 

receive a significant adverse comment 

during the comment period. A 

significant adverse comment is one 

where the commenter explains why the 

rule would be inappropriate (including 

challenges to its underlying premise or 

approach), ineffective, or unacceptable 

without a change. In general, a 

significant adverse comment would 

raise an issue serious enough to warrant 

a substantive response from the FCA in 

a notice-and-comment proceeding. 

We believe that a direct final 

rulemaking is the appropriate method 

for rescinding above-referenced sections 

in subparts B and C of part 627 that are 

superseded by the 2018 Farm Bill. We 

do not anticipate there will be 

significant adverse comments because 

this direct final rule implements recent 

statutory amendments governing 

FCSIC’s numerous powers and duties as 

the conservator or receiver of System 

institutions. If, however, we receive a 

significant adverse comment during the 

comment period, we will publish in the 

Federal Register a notice of withdrawal 

of the relevant provisions of this rule 

that will also indicate how the agency 

plans to proceed. If we receive no 

significant adverse comments, we will 

publish notice of the effective date of 

the rule following the required 

congressional waiting period under 

section 5.17(c)(1) of the Act. 

V. Regulatory Flexibility Act Analysis 

and Major Rule Conclusion 

Pursuant to section 605(b) of the 

Regulatory Flexibility Act (5 U.S.C. 601 

et seq.), FCA hereby certifies that the 

direct final rule would not have a 

significant economic impact on a 

substantial number of small entities. 

Each of the banks in the Farm Credit 

System, considered together with its 

affiliated associations, has assets and 

annual income in excess of the amounts 

that would qualify them as small 

entities. Therefore, Farm Credit System 

institutions are not ‘‘small entities’’ as 

defined in the Regulatory Flexibility 

Act. 

Under the provisions of the 

Congressional Review Act (5 U.S.C. 801 

et seq.), the Office of Management and 

Budget’s Office of Information and 

Regulatory Affairs has determined that 

this direct final rule is not a ‘‘major 

rule,’’ as the term is defined at 5 U.S.C. 

804(2). 

List of Subjects in 12 CFR Part 627 

Agriculture, Banks, Banking, Claims, 

Rural areas. 

For the reasons stated in the 

preamble, part 627 of chapter VI, title 12 

of the Code of Federal Regulations are 

amended as follows: 

PART 627— TITLE IV 

CONSERVATORS, RECEIVERS, AND 

VOLUNTARY LIQUIDATIONS 

■ 1. The authority citation for part 627 

continues to read as follows: 

Authority: Secs. 4.2, 5.9, 5.10, 5.17, 5.51, 

5.58, 5.61 of the Farm Credit Act (12 U.S.C. 

2183, 2243, 2244, 2252, 2277a, 2277a–7, 

2277a–10). 

§§ 627.2725, 627.2726, 627.2730, 627.2740, 

627.2745, 627.2750, 627.2752, 627.2755, 

627.2760, and 627.2780 [Removed and 

Reserved] 

■ 2. Sections 627.2725, 627.2726, 

627.2730, 627.2740, 627.2745, 627.2750, 

627.2752, 627.2755, 627.2760, and 

627.2780 are removed and reserved. 

Dated: March 17, 2021. 

Dale Aultman, 

Secretary, Farm Credit Administration Board. 

[FR Doc. 2021–05860 Filed 3–19–21; 8:45 am] 

BILLING CODE 6705–01–P 

SMALL BUSINESS ADMINISTRATION 

13 CFR Parts 120 and 121 

[Docket Number SBA–2021–0013] 

RIN 3245–AH77 

Business Loan Program Temporary 

Changes; Paycheck Protection 

Program as Amended by American 

Rescue Plan Act 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Interim final rule. 

SUMMARY: This interim final rule 

implements changes related to loans 

made under the Paycheck Protection 

Program (PPP), which was originally 

established under the Coronavirus Aid, 

Relief, and Economic Security Act 

(CARES Act) to provide economic relief 

to small businesses nationwide 

adversely impacted by the Coronavirus 

Disease 2019 (COVID–19). On December 

27, 2020, the Economic Aid to Hard-Hit 

Small Businesses, Nonprofits, and 

Venues Act (Economic Aid Act) was 

enacted, extending the authority to 

make PPP loans through March 31, 

2021, revising certain PPP requirements, 

and permitting second draw PPP loans. 

On January 14, 2021, SBA published an 

interim final rule that incorporated the 

Economic Aid Act amendments to the 

PPP and consolidated the interim final 

rules (and important guidance) that had 

been issued governing borrower 

eligibility, lender eligibility, and PPP 

application and origination 

requirements for PPP loans. On March 

11, 2021, the American Rescue Plan Act 

of 2021 (American Rescue Plan Act) was 

enacted expanding eligibility for first 

and second draw PPP loans, revising the 

exclusions from payroll costs for 

purposes of loan forgiveness, and 

providing that a PPP borrower that 

receives a PPP loan after December 27, 

2020 can be approved for a Shuttered 

Venue Operator Grant under certain 

conditions. This interim final rule 

revises the PPP rules to incorporate the 

American Rescue Plan Act’s 

amendments to the PPP. Additionally, 

this interim final rule clarifies the 

eligibility for first draw PPP loans for 

applicants that are assigned a North 

American Industry Classification 

System (NAICS) code beginning with 72 

and have more than one physical 

location and clarifies certain payroll 

cost exclusions included in the 

Economic Aid Act. 

DATES:

Effective date: The provisions of this 

interim final rule are effective March 18, 

2021. 


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15084 Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Rules and Regulations 

1 86 FR 3692 (Jan. 14, 2021) (which we refer to 

as the ‘‘consolidated interim final rule 

implementing updates to the PPP’’); 86 FR 3712 

(Jan. 14, 2021) (which we refer to as the ‘‘interim 

final rule on second draw PPP loans’’). 

2 86 FR 8283 (Feb. 5, 2021) (which we refer to as 

the ‘‘consolidated interim final rule on loan 

forgiveness requirements and loan review 

procedures’’). 

3 86 FR 13149 (March 8, 2021). 

Applicability date: The provisions of 

this interim final rule incorporating the 

American Rescue Plan Act changes to 

the PPP apply to PPP loans approved, 

and loan forgiveness applications 

submitted, on or after March 11, 2021. 

Comment date: Comments must be 

received on or before April 21, 2021. 

ADDRESSES: You may submit comments, 

identified by number SBA–2021–0013 

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. All 

other comments must be submitted 

through the Federal eRulemaking Portal 

described above. 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 27, 2020, the Coronavirus 

Aid, Relief, and Economic Security Act 

(the CARES Act) (Pub. L. 116–136) was 

enacted to provide emergency assistance 

and health care response for 

individuals, families, and businesses 

affected by the coronavirus disease 2019 

(COVID–19) pandemic. Section 1102 of 

the CARES Act temporarily permitted 

the Small Business Administration 

(SBA) to guarantee 100 percent of 7(a) 

loans under a new program titled the 

‘‘Paycheck Protection Program,’’ 

pursuant to section 7(a)(36) of the Small 

Business Act (15 U.S.C. 636(a)(36)) 

(First Draw PPP Loans). Section 1106 of 

the CARES Act provided for forgiveness 

of up to the full principal amount of 

qualifying loans guaranteed under the 

Paycheck Protection Program (PPP). 

On December 27, 2020, the Economic 

Aid to Hard-Hit Small Businesses, 

Nonprofits and Venues Act (Economic 

Aid Act) (Pub. L. 116–260) was enacted. 

The Economic Aid Act reauthorized 

lending under the PPP through March 

31, 2021. The Economic Aid Act added 

a new temporary section 7(a)(37) to the 

Small Business Act, which authorizes 

SBA to guarantee additional PPP loans 

(Second Draw PPP Loans) to eligible 

borrowers under generally the same 

terms and conditions available under 

section 7(a)(36) of the Small Business 

Act through March 31, 2021. The 

Economic Aid Act also redesignated 

section 1106 of the CARES Act as 

section 7A of the Small Business Act, to 

appear after section 7 of the Small 

Business Act. 

SBA initially published an interim 

final rule implementing the PPP on 

April 15, 2020 and subsequently issued 

additional interim final rules. On 

January 14, 2021, SBA published 

interim final rules implementing the 

Economic Aid Act amendments to the 

PPP.1 On February 5, 2021, SBA 

published an additional interim final 

rule implementing Economic Aid Act 

changes related to the forgiveness and 

review of PPP loans.2 Following the 

publication of the interim final rules 

implementing the Economic Aid Act, 

SBA published another interim final 

rule revising certain loan amount 

calculation and eligibility provisions of 

those rules.3 As described below, this 

interim final rule further revises the 

consolidated interim final rule 

implementing updates to the PPP, the 

interim final rule on second draw PPP 

loans, and the consolidated interim final 

rule on loan forgiveness requirements 

and loan review procedures, by 

incorporating the expanded eligibility 

for First Draw and Second Draw PPP 

Loans and the exclusions from payroll 

costs that may be forgiven enacted in 

the American Rescue Plan Act (Pub. L. 

117–2); confirming that First Draw PPP 

Loan applicants that are assigned a 

NAICS code beginning with 72 and that 

employ no more than 500 employees 

per physical location are eligible; and 

clarifying certain forgiveness payroll 

cost exclusions in the Economic Aid 

Act. 

II. Comments and Immediate Effective 

Date 

This interim final rule is being issued 

without advance notice and public 

comment because section 1114 of the 

CARES Act and section 303 of the 

Economic Aid Act authorize SBA to 

issue regulations to implement the 

Paycheck Protection Program without 

regard to notice requirements. In 

addition, this rule is being issued to 

allow for immediate implementation of 

these changes. The intent of the CARES 

Act, the Economic Aid Act, and the 

American Rescue Plan Act is that SBA 

provide relief to America’s small 

businesses and nonprofit organizations 

expeditiously. Given the urgent need to 

provide borrowers with timely relief 

and the short period of time before the 

program ends on March 31, 2021, SBA 

has determined that it is impractical and 

not in the public interest to provide a 

30-day delayed effective date. An 

immediate effective date will allow SBA 

to give small businesses and nonprofit 

organizations affected by this interim 

final rule the maximum amount of time 

to apply for loans and lenders the 

maximum amount of time to process 

applications before the program ends. 

This good cause justification also 

supports waiver of the 60-day delayed 

effective date for major rules under the 

Congressional Review Act at 5 U.S.C. 

808(2). 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. 

These comments must be submitted 

on or before April 21, 2021. SBA will 

consider these comments and the need 

for making any revisions as a result of 

these comments. 

III. Paycheck Protection Program as 

Amended by the American Rescue Plan 

Act 

1. Eligibility, Size, Affiliation Waivers, 

and Certifications 

Part III.B.1. of the consolidated 

interim final rule implementing updates 

to the PPP identifies the businesses, 

organizations, and individuals that are 

eligible for First Draw PPP Loans, 

including the applicable size standards. 

Part III.B.3. of that rule sets forth the 

affiliation rules generally applicable to 

PPP loans, including the affiliation 

waivers available to certain businesses 

and organizations. The American 

Rescue Plan Act expands eligibility to 

additional businesses and organizations 

and revises size standards and adds 

affiliation waivers for certain eligible 

businesses and organizations. 

The American Rescue Plan Act also 

revises section 324 of the Economic Aid 

Act to provide that businesses that 

receive a PPP loan after December 27, 

2020 are no longer ineligible for a 

Shuttered Venue Operator (SVO) Grant 

under certain conditions. Specifically, if 

a PPP borrower receives a First Draw or 

Second Draw PPP Loan after December 

27, 2020, the amount of any 

subsequently-approved SVO grant will 


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Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Rules and Regulations 15085 

2See interim final rule on Second Draw PPP 

Loans for eligibility criteria for Second Draw PPP 

Loans, which was published separately. 86 FR 3712 

(January 14, 2021). 

3This subsection was originally published at 85 

FR 20811, subsection III.2.a. (April 15, 2020), as 

amended by 85 FR 36308 (June 16, 2020), 85 FR 

36717 (June 18, 2020), and 85 FR 38301 (June 26, 

2020), and has been modified to reflect subsequent 

rules or guidance, the Economic Aid Act, and the 

American Rescue Plan Act. 

4See subsection B.3 of the consolidated interim 

final rule implementing updates to the PPP 

regarding the applicability of affiliation rules at 13 

CFR 121.103 and 121.301 to PPP loans. 

5Under SBA’s alternative size standard, a 

business concern may qualify as a small business 

concern if it, together with any affiliates: (1) Has a 

maximum tangible net worth of not more than $15 

million; and (2) the average net income after 

Federal income taxes (excluding any carry-over 

losses) for the two full fiscal years before the date 

of application is not more than $5 million. 

6See subsections B.1.g.vii. and B.1.g.viii for 

additional information on the eligibility of section 

501(c)(6) organizations, and destination marketing 

organizations. As amended by the American Rescue 

Plan Act, the applicable size standard for section 

501(c)(6) organizations and destination marketing 

organizations is not more than 300 employees per 

physical location. 

be reduced by the amount of the First 

Draw or Second Draw PPP Loan. (If a 

PPP borrower receives both a First Draw 

and a Second Draw PPP Loan after 

December 27, 2020, the amount of any 

subsequently-approved SVO grant will 

be reduced by the combined amount of 

both PPP loans.) However, because 

sections 7(a)(36)(U) and 

7(a)(37)(A)(iv)(III)(ee) of the Small 

Business Act were not amended by the 

American Rescue Plan Act, if a PPP 

applicant is approved for an SVO grant 

before SBA issues a loan number for the 

PPP loan, the applicant is ineligible for 

the PPP loan and acceptance of any PPP 

loan proceeds will be considered an 

unauthorized use. 

In addition, SBA is making a 

clarifying change to the list of eligible 

entities for First Draw PPP Loans by 

adding businesses with a NAICS code 

beginning with 72 that employ no more 

than 500 employees per physical 

location. These entities are included in 

section 7(a)(36)(D)(iii) of the Small 

Business Act (15 U.S.C. 

636(a)(36)(D)(iii)), as amended by the 

CARES Act, and are addressed in 

section B.3. of the consolidated interim 

final rule implementing updates to the 

PPP. Because the omission of these 

entities from the list of eligible entities 

could cause borrower confusion, SBA is 

revising subsection B.1.a. to add these 

entities. 

Therefore, Part III.B.1.a. (86 FR 3692, 

3695) of the consolidated interim final 

rule implementing updates to the PPP is 

revised to read as follows: 

1. What businesses, organizations, and 

individuals are eligible? 

a. Am I eligible? 2 3

You are eligible for a PPP loan if: 

i. You, together with any affiliates (if 

applicable),4 are: 

• A small business concern under the 

applicable revenue-based size standard 

established by SBA in 13 CFR 121.201 for 

your industry or under the SBA alternative 

size standard; 5

• an independent contractor, eligible selfemployed individual, or sole proprietor; 

• a business concern, a tax-exempt 

nonprofit organization described in section 

501(c)(3) of the Internal Revenue Code (IRC), 

a tax-exempt veterans organization described 

in section 501(c)(19) of the IRC, a Tribal 

business concern described in section 

31(b)(2)(C) of the Small Business Act, and 

you employ no more than the greater of 500 

employees or, if applicable, the size standard 

in number of employees established by SBA 

in 13 CFR 121.201; 

• a housing cooperative that employs no 

more than 300 employees and meets the 

criteria described in subsection B.1.g.v. of the 

consolidated interim final rule implementing 

updates to the PPP, as amended by this 

interim final rule; 

• a business concern that is assigned a 

North American Industry Classification 

System (NAICS) code beginning with 72 that 

employs no more than 500 employees per 

physical location; 

• an eligible section 501(c)(6) organization 

or an eligible destination marketing 

organization,6 that employs no more than 300 

employees per physical location; 

• a news organization that is majority 

owned or controlled by a NAICS code 511110 

or 5151 business or a nonprofit public 

broadcasting entity with a trade or business 

under NAICS 511110 or 5151, that employs 

no more than 500 employees (or, if 

applicable, the size standard in number of 

employees established by SBA in 13 CFR 

121.201 for your industry) per location; 

• a tax-exempt non-profit organization 

described in section 501(c)(3) of the Internal 

Revenue Code that employs not more than 

500 employees per physical location of the 

organization; 

• a tax-exempt nonprofit organization 

described in any paragraph of section 501(c) 

of the Internal Revenue Code of 1986, other 

than paragraph (3), (4), (6), or (19) that 

employs not more than 300 employees per 

physical location and meets the criteria 

described in subsection B.1.g.iii. of the 

consolidated interim final rule implementing 

updates to the PPP, as amended by this 

interim final rule; 

• a business concern or other organization 

that is assigned a NAICS code of 519130, 

certifies in good faith as an internet-only 

news publisher or internet-only periodical 

publisher, and is engaged in the collection 

and distribution of local or regional and 

national news and information, that employs 

not more than 500 employees (or the size 

standard in number of employees established 

by SBA in 13 CFR 121.201 for NAICS code 

519130) per physical location, and meets the 

criteria described in subsection B.1.g.iv. of 

the consolidated interim final rule 

implementing updates to the PPP, as 

amended by this interim final rule; or 

• another type of entity specifically 

provided for by PPP rules (as described 

below); and 

ii. you were in operation on February 15, 

2020, and either had employees for whom 

you paid salaries and payroll taxes or paid 

independent contractors, as reported on a 

Form 1099–MISC or you were an eligible 

self-employed individual, independent 

contractor, or sole proprietorship with no 

employees. 

You must submit documentation sufficient 

to establish eligibility and to demonstrate the 

qualifying payroll amount, which may 

include, as applicable, payroll records, 

payroll tax filings, Form 1099–MISC, 

Schedule C or F, income and expenses from 

a sole proprietorship, or bank records. 

* * * * * 

The American Rescue Plan Act 

expands eligibility for PPP loans to taxexempt organizations described in any 

paragraph of section 501(c) of the 

Internal Revenue Code of 1986, except 

for section 501(c)(4). Thus, subsections 

III.B.1.g.iii. and iv. of the consolidated 

interim final rule implementing updates 

to the PPP, which describe the 

eligibility of electric cooperatives and 

telephone cooperatives that are exempt 

from Federal income taxation under 

section 501(c)(12) of the Internal 

Revenue Code, are no longer necessary. 

For PPP loans made after the effective 

date of this interim final rule, such 

organizations will be eligible as set forth 

in a new subsection for tax-exempt 

organizations under any paragraph of 

section 501(c) of the Internal Revenue 

Code (other than paragraph (3), (4), (6), 

or (19)) discussed immediately below. 

With the new statutory change, the size 

eligibility requirements for electric and 

telephone cooperatives have changed as 

well. Previously, these entities were 

eligible if they had no more than 500 

employees, met the employee-based 

SBA size standard for their industry (if 

higher), or met SBA’s alternative size 

standard. For PPP loans made after the 

effective date of this interim final rule, 

these entities are eligible if they have no 

more than 300 employees per physical 

location, and these entities are no longer 

permitted to use the employee-based 

SBA size standard for their industry or 

SBA’s alternative size standard to 

determine size. 

Therefore, Part III.B.1.g. of the 

consolidated interim final rule 

implementing updates to the PPP (86 FR 

3692, 3696–3697) is revised by 

replacing subsections B.1.g.iii. and iv. of 

the industry-specific eligibility issues 

with two new subsections to read as 

follows: 

g. Industry-Specific Eligibility Issues 

* * * * * 

iii. Are tax-exempt nonprofit organizations 

described in any paragraph of section 501(c) 


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15086 Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Rules and Regulations 

17This subsection was originally published at 85 

FR 29847, subsection III.1. (May 19, 2020) and has 

been revised to conform to the American Rescue 

Plan Act. Section 7(a)(36)(D)(ix) of the Small 

Business Act (15 U.S.C. 636(a)(36)(D)(ix)) as 

amended by the American Rescue Plan Act adds 

‘‘additional covered nonprofit entities’’ to the 

eligible entities for First Draw PPP Loans. The term 

‘‘additional covered nonprofit entities’’ is defined 

in section 7(a)(36)(A)(xvii) as ‘‘an organization 

described in any paragraph of section 501(c) of the 

Internal Revenue Code of 1986, other than 

paragraph (3), (4), (6), or (19), and exempt from tax 

under section 501(a) of such Code; and does not 

include any entity that, if the entity were a business 

concern, would be described in section 120.110 of 

title 13, Code of Federal Regulations (or in any 

successor regulation or other related guidance that 

may be issued by the Administrator) other than a 

business concern described in paragraph (a) or (k) 

of such section.’’ 

18For such entities with more than one physical 

location, section 7(a)(36)(D)(iii)(III) of the Small 

Business Act (15 U.S.C. 636(a)(36)(D)(iii)(III)), as 

amended by section 5001 of the American Rescue 

Plan Act, provides that such entities with more than 

one physical location are eligible if they employ not 

more than 300 employees per physical location. 

19This subsection was originally published at 85 

FR 35550, subsection III.1. (June 11, 2020) and has 

been revised to conform with the American Rescue 

Plan Act. 

20See section 7(a)(36)(D)(iii)(IV) of the Small 

Business Act as amended by the American Rescue 

Plan Act. 

28This subsection was originally published at 85 

FR 20811, subsection III.2.a. (April 15, 2020), and 

amended by 85 FR 36308 (June 16, 2020), 85 FR 

36717 (June 18, 2020), 85 FR 38301 (June 26, 2020), 

and 86 FR 13149 (March 8, 2021), and has been 

modified to conform to subsequent interim final 

rules or guidance, the Economic Aid Act, the 

American Rescue Plan Act and for readability. 

30This subsection has been revised to conform to 

section 5005 of the American Rescue Plan Act. 

32Added to conform to section 342 of the 

Economic Aid Act, which also added the following 

definitions to paragraph 7(a)(36)(A) of the Small 

Business Act (15 U.S.C. 636(a)(36)(A)): ‘‘(xvi) the 

terms ‘exchange’, ‘issuer’, and ‘security’ have the 

meanings given those terms in section 3(a) of the 

Securities Exchange Act of 1934 (15 U.S.C. 78c(a)).’’ 

This provision applies to loans made on or after 

December 27, 2020. 

33See section 317 of the Economic Aid Act, as 

amended by section 5001 of the American Rescue 

Plan Act. 

of the Internal Revenue Code of 1986, other 

than paragraph (3), (4), (6), or (19), eligible 

for PPP loans? 17

Yes. An organization described in any 

paragraph of section 501(c) of the Internal 

Revenue Code of 1986, other than paragraph 

(3), (4), (6), or (19) and exempt from tax 

under section 501(a) of such Code, is eligible 

for a PPP loan if: (1) The organization does 

not receive more than 15 percent of its 

receipts from lobbying activities; (2) the 

lobbying activities of the organization do not 

comprise more than 15 percent of the total 

activities of the organization; (3) the cost of 

the lobbying activities of the organization did 

not exceed $1,000,000 during the most recent 

tax year of the organization that ended prior 

to February 15, 2020; and (4) the organization 

employs not more than 300 employees.18

However, this does not include any 

organization that, if the organization were a 

business concern, would be described in 13 

CFR 120.110 (or any successor regulation or 

other related guidance or rule that may be 

issued by SBA) other than a business concern 

described in paragraph (a) or (k) of such 

section. Tax-exempt organizations described 

in section 501(c)(3), 501(c)(6) and 501(c)(19) 

of the Internal Revenue Code of 1986 have 

separate eligibility requirements described 

elsewhere in this rule. Tax-exempt 

organizations described in section 501(c)(4) 

of the Internal Revenue Code of 1986 are 

ineligible for a PPP loan. 

iv. Are internet publishing organizations 

eligible for PPP loans? 19

Yes. A business concern or other 

organization that was not eligible to receive 

a PPP loan before March 11, 2021, is eligible 

for a PPP loan if it: (1) Is assigned a NAICS 

code of 519130; (2) certifies in good faith that 

it is an internet-only news publisher or 

internet-only periodical publisher; (3) is 

engaged in the collection and distribution of 

local or regional and national news and 

information; (4) employs not more than 500 

employees (or the size standard in number of 

employees established by SBA in 13 CFR 

121.201 for NAICS code 519130) per physical 

location; and (5) certifies in good faith that 

proceeds of the loan will be used to support 

expenses at the component of the business 

concern or organization that supports local or 

regional news.20

* * * * * 

To implement the American Rescue 

Plan Act provision that allows 

businesses to receive both a Shuttered 

Venue Operator (SVO) Grant and a PPP 

loan under certain conditions, Part 

III.B.2.a.vi. of the consolidated interim 

final rule implementing updates to the 

PPP (86 FR 3692, 3698) is revised to 

read as follows: 

2. What businesses, organizations, and 

individuals are ineligible? 

a. Could I be ineligible even if I meet the 

eligibility requirements in section 1? 28

You are ineligible for a PPP loan if, for 

example: 

* * * * * 

vi. You or your business have been 

approved for a grant under the Shuttered 

Venue Operator (SVO) Grant Program under 

section 324 of the Economic Aid Act. (If you 

receive a PPP loan after December 27, 2020 

and you are subsequently approved for an 

SVO grant, the amount of the SVO grant 

received will be reduced by the amount of a 

First Draw or Second Draw PPP Loan. If you 

receive both a First Draw and Second Draw 

PPP Loan after December 27, 2020 and you 

are subsequently approved for an SVO grant, 

the SVO grant will be reduced by the 

combined amounts of both PPP loans. A PPP 

loan received before December 27, 2020 will 

not reduce the amount of the SVO grant.) 30

As noted above, the American Rescue 

Plan Act added affiliation waivers for 

certain eligible organizations with 

respect to PPP loans. To implement the 

additional affiliation waiver applicable 

to eligible internet publishing 

organizations, the parenthetical at the 

end of Part III.B.2.a.viii. of the 

consolidated interim final rule 

implementing updates to the PPP (86 FR 

3692, 3698) is revised to include a 

reference to B.1.g.iv, which describes 

the conditions under which such 

internet publishing companies are 

eligible. Therefore, Part III.B.2.a.viii of 

the consolidated interim final rule 

implementing updates to the PPP, as 

amended by this interim final rule, is 

revised to read as follows: 

* * * * * 

viii. Your business is an issuer, the 

securities of which are listed on an exchange 

registered as a national securities exchange 

under section 6 of the Securities Exchange 

Act of 1934 (15 U.S.C. 78f) 32 (SBA will not 

consider whether a news organization that is 

eligible under the conditions described in 

subsection 1.f. and 1.g.vi. or an internet 

publishing organization that is eligible under 

the conditions described in subsection 1.g.iv. 

is affiliated with an entity, which includes 

any entity that owns or controls such news 

organization or internet publishing 

organization, that is an issuer 33); 

* * * * * 

Also, Part III.B.12.vi. of the 

consolidated interim final rule 

implementing updates to the PPP (86 FR 

3692, 3706) is revised to read as follows: 

12. What certifications need to be made? 

On the PPP borrower application, an 

authorized representative of the applicant 

must certify in good faith to all of the below: 

* * * * * 

vi. The Applicant has not been approved 

for a Shuttered Venue Operator (SVO) grant 

from SBA as of the date of this loan 

application, and the Applicant acknowledges 

that if the Applicant is approved for an SVO 

grant before SBA issues a loan number for 

this loan, the Applicant is ineligible for the 

loan and acceptance of any loan proceeds 

will be considered an unauthorized use. 

Part III.B.3. of the consolidated 

interim final rule implementing updates 

to the PPP describes the affiliation rules 

generally applicable to PPP loans (86 FR 

3692, 3698–3699). The American 

Rescue Plan Act adds affiliation waivers 

for certain businesses and organizations. 

Therefore, footnote 40 in part III.B.3.a. 

is revised to read as follows: 

Paragraph 7(a)(36)(D)(iv) of the Small 

Business Act (15 U.S.C. 636(a)(36)(D)(iv)), as 

added by the CARES Act and amended by 

the Economic Aid Act and the American 

Rescue Plan Act, waives the affiliation rules 

contained in § 121.103 for (1) any business 

concern with not more than 500 employees 

that, as of the date on which the loan is 

disbursed, is assigned a North American 

Industry Classification System code 

beginning with 72; (2) any business concern 

operating as a franchise that is assigned a 

franchise identifier code by the 

Administration; (3) any business concern that 

receives financial assistance from a company 


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Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Rules and Regulations 15087 

33All terms in this subsection have the same 

definitions as in sections 7(a)(36) and (37) of the 

Small Business Act and the Consolidated First 

Draw PPP IFR, as applicable. 

licensed under section 301 of the Small 

Business Investment Act of 1958 (15 U.S.C. 

681); (4)(a) any business concern (including 

any station which broadcasts pursuant to a 

license granted by the Federal 

Communications Commission under title III 

of the Communications Act of 1934 (47 

U.S.C. 301 et seq.) without regard for whether 

such a station is a concern as defined in 

§ 121.105 of title 13, Code of Federal 

Regulations, or any successor thereto) that 

employs not more than 500 employees, or the 

size standard established by the 

Administrator for the North American 

Industry Classification System code 

applicable to the business concern, per 

physical location of such business concern 

and is majority owned or controlled by a 

business concern that is assigned a North 

American Industry Classification System 

code beginning with 511110 or 5151; or (b) 

any nonprofit organization that is assigned a 

North American Industry Classification 

System code beginning with 5151; and (5) 

any business concern or organization that is 

assigned a NAICS code of 519130, certifies in 

good faith as an internet-only news publisher 

or internet-only periodical publisher, and is 

engaged in the collection and distribution of 

local or regional and national news and 

information, if the business concern or 

organization employs not more than 500 

employees (or the size standard in number of 

employees established by SBA in 13 CFR 

121.201 for NAICS code 519130) per physical 

location, and is majority owned or controlled 

by a business concern or organization that is 

assigned NAICS 519130. This interim final 

rule has no effect on these statutory waivers, 

which remain in full force and effect. As a 

result, the affiliation rules contained in 

§ 121.301 also do not apply to these types of 

entities. In addition, paragraph 7(a)(36)(D) of 

the Small Business Act (15 U.S.C. 

636(a)(36)(D)), as amended by section 342 of 

the Economic Aid Act and section 5001 of 

the American Rescue Plan Act states that, 

with respect to a business concern made 

eligible under paragraph 7(a)(36)(D)(iii)(II) or 

(IV) or 7(a)(36)(D)(iv)(IV) or (V) (certain news 

organizations and internet publishing 

organizations), the Administrator shall not 

consider whether any affiliated entity, which 

for purposes of this subclause shall include 

any entity that owns or controls such 

business concern or organization, is an issuer 

as defined in subsection III.B.2.a.viii. 

Part IV.(c) of the interim final rule on 

second draw PPP loans sets forth who 

is eligible for a Second Draw PPP Loan. 

The American Rescue Plan Act 

amended the eligibility criteria for a 

Second Draw PPP Loan similarly to the 

amendments discussed above for First 

Draw PPP Loans. Therefore, part 

IV.(c)(1) of the interim final rule on 

second draw PPP loans (86 FR 3712, 

3717) is revised to read as follows: 

(c) Who is eligible for a Second Draw PPP 

Loan? 

Subject to subsection (e) of this section, 

below, the following applicants are eligible 

for Second Draw PPP Loans: 

(1) An applicant is eligible for a Second 

Draw PPP Loan if it is a business concern, 

independent contractor, eligible selfemployed individual, sole proprietor, 

nonprofit organization eligible for a First 

Draw PPP Loan, veterans organization, Tribal 

business concern, housing cooperative, small 

agricultural cooperative, eligible 501(c)(6) 

organization or destination marketing 

organization, an eligible nonprofit news 

organization, additional covered nonprofit 

entity, or eligible internet publishing 

company 33 that: 

(i) Previously received a First Draw PPP 

loan in accordance with the eligibility 

criteria in the Consolidated First Draw PPP 

IFR (as amended); 

(ii) has used, or will use, the full amount 

of its First Draw PPP Loan (including the 

amount of any increase on such First Draw 

PPP Loan) on authorized uses under 

subsection B.11. of the Consolidated First 

Draw PPP IFR on or before the expected date 

on which the Second Draw PPP Loan will be 

disbursed; 

(iii) employs not more than 300 employees, 

unless it satisfies the alternative criteria for 

businesses with a North American Industry 

Classification System (‘‘NAICS’’) code 

beginning with 72, eligible news 

organizations, (501)(c)(3) nonprofit 

organizations, additional covered nonprofit 

entities, 501(c)(6) organizations, eligible 

destination marketing organizations, and 

eligible internet publishing organizations 

with more than one physical location 

described in subsection (c)(3), (c)(4), (c)(5), or 

(c)(6) of this section; and 

(iv) (A) experienced a reduction in revenue 

in calendar year 2020, measured as follows: 

* * * * * 

Part IV.(c) of the interim final rule on 

second draw PPP loans (86 FR 3712, 

3718) also is revised by adding two new 

subsections at the end to read as 

follows: 

(5) An entity is eligible for a Second Draw 

PPP Loan if it is a 501(c)(3) nonprofit 

organization, an additional covered nonprofit 

entity, an eligible 501(c)(6) organization, or 

an eligible destination marketing 

organization and it employs not more than 

300 employees per physical location of the 

entity or organization. 

(6) A business concern or other 

organization that was not eligible to receive 

a covered loan before March 11, 2021, is 

eligible to receive a Second Draw PPP Loan 

for the continued provision of news, 

information, content, or emergency 

information if it is assigned a NAICS code of 

519130, certifies in good faith as an internetonly news publisher or internet-only 

periodical publisher, and is engaged in the 

collection and distribution of local or 

regional and national news and information, 

and: 

(i) The business concern or organization 

employs not more than 300 employees per 

physical location of the business concern or 

organization; and 

(ii) the business concern or organization 

makes a good faith certification that proceeds 

of the loan will be used to support expenses 

at the component of the business concern or 

organization that supports local or regional 

news. 

Part IV.(d) of the interim final rule on 

second draw PPP loans states that 

eligibility for Second Draw PPP Loans is 

governed by the same affiliation rules 

(and waivers) as First Draw PPP Loans, 

except as described in subsection (d)(2). 

The American Rescue Plan Act revised 

the affiliation waivers for First Draw 

and Second Draw PPP Loans. Although 

the American Rescue Plan Act did not 

amend section 7(a)(37)(E)(ii) of the 

Small Business Act (15 U.S.C. 

636(a)(37)(E)(ii)) to substitute ‘‘not more 

than 300 employees’’ for ‘‘not more than 

500 employees’’ in subclause (V) of 

section 7(a)(36)(D)(iv) of the Small 

Business Act (15 U.S.C. 

636(a)(36)(D)(iv)), as section 

7(a)(37)(E)(ii) does for eligible news 

organizations, SBA is doing so here to 

harmonize the affiliation waiver for 

internet publishing organizations with 

the 300 employees per location size 

standard for Second Draw PPP Loans to 

internet publishing organizations. 

Therefore, Part IV.(d)(2) of the interim 

final rule on second draw PPP loans (86 

FR 3712, 3718) is revised by adding a 

new subsection (iii) to read as follows: 

(d) How do SBA’s affiliation rules affect an 

applicant’s eligibility for a Second Draw PPP 

Loan? 

* * * * * 

(iii) Any business concern or other 

organization that was not eligible to receive 

a covered loan before March 11, 2021, is 

assigned a NAICS code of 519130, certifies in 

good faith as an internet-only news publisher 

or internet-only periodical publisher, and is 

engaged in the collection and distribution of 

local or regional and national news and 

information, if the business concern or 

organization: 

(A) Employs not more than 300 employees, 

per physical location of the business concern 

or organization; and 

(B) is majority owned or controlled by a 

busines concern or organization that is 

assigned a NAICS code of 519130. 

In order to implement the American 

Rescue Plan Act provision that allows 

businesses to receive both a Shuttered 

Venue Operator (SVO) Grant and a PPP 

loan, part IV.(e)(5) of the interim final 

rule on second draw PPP loans (86 FR 

3712, 3719) is revised to read as follows: 

(e) Who is not eligible for a Second Draw 

PPP Loan? 

An applicant is not eligible for a Second 

Draw PPP Loan, even if it meets the 

eligibility requirements of subsection (c) of 

this section, if the applicant is: 

* * * * * 

(5) any person or entity that has been 

approved for a grant under the Shuttered 

Venue Operator (SVO) Grant Program under 


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15088 Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Rules and Regulations 

section 324 of the Economic Aid Act. (If you 

receive a PPP loan after December 27, 2020 

and you are subsequently approved for an 

SVO grant, the amount of the SVO grant 

received will be reduced by the amount of a 

First Draw or Second Draw PPP Loan. If you 

receive both a First Draw and Second Draw 

PPP Loan after December 27, 2020 and you 

are subsequently approved for an SVO grant, 

the SVO grant will be reduced by the 

combined amounts of both PPP loans. A PPP 

loan received prior to December 27, 2020 will 

not reduce the amount of the SVO grant.) 

As noted above, the American Rescue 

Plan Act added affiliation waivers for 

certain eligible organizations with 

respect to PPP loans. To implement the 

additional affiliation waiver applicable 

to eligible internet publishing 

organizations, the parenthetical at the 

end of Part IV.(e)(7) of the interim final 

rule on second draw loans (86 FR 3712, 

3719) is revised to include a reference 

to Part IV.(c)(6), which describes the 

conditions under which such internet 

publishing companies are eligible. 

Therefore, Part IV.(e)(7) of the interim 

final rule on second draw loans, as 

amended by this interim final rule, is 

revised to read as follows: 

* * * * * 

(7) Any issuer, the securities of which are 

listed on an exchange registered as a national 

securities exchange under section 6 of the 

Securities Exchange Act of 1934 (15 U.S.C. 

78f), where the terms ‘‘exchange,’’ ‘‘issuer,’’ 

and ‘‘security’’ have the meanings given 

those terms in section 3(a) of the Securities 

Exchange Act of 1934 (15 U.S.C. 78c(a)) 

(except that SBA will not consider whether 

a news organization that is eligible under 

subsection (c)(4) or an internet publishing 

organization that is eligible under subsection 

(c)(6) is affiliated with an entity, which 

includes any entity that owns or controls 

such news organization or internet 

publishing organization, that is an issuer); 

* * * * * 

2. Forgiveness of First Draw and Second 

Draw PPP Loans 

Part III.B.14 of the consolidated 

interim final rule implementing updates 

to the PPP provides general information 

to borrowers on loan forgiveness. The 

consolidated interim final rule 

implementing updates to the PPP 

requires a revision to clarify certain 

forgiveness payroll cost exclusions 

included in the Economic Aid Act and 

to incorporate section 3134 of the 

Internal Revenue Code of 1986 (Internal 

Revenue Code) as added by section 9651 

of the American Rescue Plan Act. 

Additionally, section 5001(c) of the 

American Rescue Plan Act revised the 

forgiveness payroll cost exclusions to 

include premiums taken into account in 

determining the credit allowed under 

section 6432 of the Internal Revenue 

Code. Therefore, the fourth full sentence 

in part III.B.14 of the consolidated 

interim final rule implementing updates 

to the PPP (86 FR 3692, 3706) reading 

‘‘[p]ayroll costs that are qualified wages 

taken into account in determining the 

Employer Retention Credit are not 

eligible for loan forgiveness,’’ is revised 

to read ‘‘The following payroll costs are 

not eligible for loan forgiveness: (a) 

Qualified wages taken into account in 

determining (i) the Employee Retention 

Credit under section 2301 of the CARES 

Act, as amended by section 206 of the 

Taxpayer Certainty and Disaster Tax 

Relief Act of 2020 (Relief Act), (ii) the 

Employee Retention Credit under 

section 3134 of the Internal Revenue 

Code, or (iii) the disaster credit under 

section 303 of the Relief Act, and (b) 

premiums for COBRA continuation 

coverage taken into account in 

determining the credit under section 

6432 of the Internal Revenue Code.’’ 

Part IV.1 of the consolidated interim 

final rule on loan forgiveness 

requirements and loan review 

procedures sets forth general 

information about loan forgiveness for 

First Draw and Second Draw PPP Loans. 

The consolidated interim final rule on 

loan forgiveness requirements and loan 

review procedures requires revisions to 

clarify certain forgiveness payroll cost 

exclusions under the Economic Aid Act 

and revisions to incorporate the 

forgiveness payroll cost exclusions 

required by the American Rescue Plan 

Act. Part IV.1.a.(1) describes the payroll 

costs that are eligible for loan 

forgiveness and identifies those costs 

that are to be excluded. The second full 

sentence of part IV.1.a.(1), Payroll Costs 

(86 FR 8283, 8286), reading ‘‘[p]ayroll 

costs that are qualified wages taken into 

account in determining the Employer 

Retention Credit are not eligible for loan 

forgiveness,’’ is revised to read ‘‘The 

following payroll costs are not eligible 

for loan forgiveness: (a) Qualified wages 

taken into account in determining (i) the 

Employee Retention Credit under 

section 2301 of the CARES Act, as 

amended by section 206 of the Taxpayer 

Certainty and Disaster Tax Relief Act of 

2020 (Relief Act) (CARES Act Employee 

Retention Credit), (ii) the Employee 

Retention Credit under section 3134 of 

the Internal Revenue Code of 1986 (ARP 

Employee Retention Credit), or (iii) the 

disaster credit under section 303 of the 

Relief Act (Disaster Credit), and (b) 

premiums for COBRA continuation 

coverage taken into account in 

determining the credit under section 

6432 of the Internal Revenue Code of 

1986 (COBRA Continuation Coverage).’’ 

Part IV.1.b. of the consolidated 

interim final rule on loan forgiveness 

requirements and loan review 

procedures describes the amount 

eligible for loan forgiveness for 

individuals with self-employment 

income who file an IRS Form 1040, 

Schedule C or F. The last clause of part 

IV.1.b.i (86 FR 8283, 8287) is revised to 

read ‘‘but excluding any qualified wages 

taken into account in determining the 

CARES Act Employee Retention Credit, 

ARP Employee Retention Credit, or the 

Disaster Credit or premiums for COBRA 

Continuation Coverage.’’ 

3. Additional Information 

SBA may provide further guidance, if 

needed, through SBA notices that will 

be posted on SBA’s website at 

www.sba.gov. Questions on the 

Paycheck Protection Program may be 

directed to the Lender Relations 

Specialist in the local SBA Field Office. 

The local SBA Field Office may be 

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

local-assistance/districtoffices. 

Compliance with Executive Orders 

12866, 12988, 13132 and 13563 the 

Congressional Review Act, the 

Administrative Procedure Act, the 

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

35), and the Regulatory Flexibility Act (5 

U.S.C. 601–612). 

Executive Orders 12866 and 13563 

This interim final rule is 

economically significant for the 

purposes of Executive Orders 12866 and 

13563. SBA, however, is proceeding 

under the emergency provision at 

Executive Order 12866 section 6(a)(3)(D) 

based on the need to move 

expeditiously to mitigate the current 

economic conditions arising from the 

COVID–19 emergency. 

This rule is necessary to provide 

economic relief to small businesses and 

nonprofit organizations nationwide 

adversely impacted under the COVID– 

19 Emergency Declaration. We 

anticipate that this rule will result in 

substantial benefits to small businesses, 

nonprofit organizations, their 

employees, and the communities they 

serve. However, we lack data to estimate 

the effects of this rule. 

The Administrator of the Office of 

Management and Budget’s Office of 

Information and Regulatory Affairs 

(OIRA) has determined that this is a 

major rule for purposes of Subtitle E of 

the Small Business Regulatory 

Enforcement and Fairness Act of 1996 

(also known as the Congressional 

Review Act or CRA) (5 U.S.C. 804(2) et 

seq.). Under the CRA, a major rule takes 

effect 60 days after the rule is published 

in the Federal Register. 5 U.S.C. 

801(a)(3). 

Notwithstanding this requirement, the 

CRA allows agencies to dispense with 


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Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Rules and Regulations 15089 

the requirements of section 801 when 

the agency for good cause finds that 

such procedure would be impracticable, 

unnecessary, or contrary to the public 

interest and the rule shall take effect at 

such time as the agency promulgating 

the rule determines. 5 U.S.C. 808(2). 

Pursuant to section 808(2), SBA for good 

cause finds that a 60-day delay to 

provide public notice is impracticable 

and contrary to the public interest. 

Likewise, for the same reasons, SBA for 

good cause finds that there are grounds 

to waive the 30-day effective date delay 

under the Administrative Procedure 

Act. 5 U.S.C. 553(d)(3). 

The last day to apply for and receive 

a PPP loan is March 31, 2021. Given the 

short duration of this program, and the 

urgent need to issue loans quickly, SBA 

has determined that it is impractical and 

not in the public interest to provide a 

delayed effective date. An immediate 

effective date will give small businesses 

and nonprofit organizations affected by 

this interim final rule the maximum 

amount of time to apply for loans and 

lenders the maximum amount of time to 

process applications before the program 

ends. 

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 require revisions to existing 

recordkeeping or reporting requirements 

of the Paycheck Protection Program 

(PPP) information collections (OMB 

Control Numbers 3245–0407 and 3245– 

0417. The revisions will affect SBA 

Form 2483, Borrower Application Form 

Revised March 3, 2021, SBA Form 

2483–C, Borrower Application Form for 

Schedule C Filers Using Gross Income 

March 3, 2021, SBA Form 2483–SD, 

Second Draw Borrower Application 

Form Revised March 3, 2021, SBA Form 

2483–SD–C, Second Draw Borrower 

Application Form for Schedule C Filers 

Using Gross Income March 3, 2021, SBA 

Form 2484, Lender’s Application— 

Paycheck Protection Program Loan 

Guaranty Revised March 3, 2021, SBA 

Form 2484–SD, Lender’s Application— 

Second Draw Loan Guaranty Revised 

March 3, 2021,. SBA Forms 2483, 2483– 

C, 2483–SD, and 2483–SD–C were 

amended to include the additional 

eligible entities (where applicable) and 

revise the Shuttered Venue Operator 

Grant Program certification due to the 

changes made by the American Rescue 

Plan Act. Other clarifying changes were 

also made to the forms. Additionally, 

conforming changes were made to SBA 

Forms 2484 and 2484–SD. 

SBA has requested Office of 

Management and Budget (OMB) 

emergency approval of the revisions to 

the information collections to give small 

businesses and nonprofits affected by 

this interim final rule the maximum 

amount of time to apply for loans and 

lenders the maximum amount of time to 

process applications before the program 

ends. 

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 

Administrative Procedure Act 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. 

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. Since this rule 

is exempt from notice and comment, 

SBA is not required to conduct a 

regulatory flexibility analysis. 

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

636(a)(37); 15 U.S.C. 636m; Coronavirus Aid, 

Relief, and Economic Security Act, Pub. L. 

116–136, section 1114, Economic Aid to 

Hard-Hit Small Businesses, Nonprofits, and 

Venues Act (Pub. L. 116–260), section 303, 

and American Rescue Plan Act of 2021, 

sections 5001 and 5005. 

James Rivera, 

Acting Administrator, Small Business 

Administration. 

[FR Doc. 2021–05930 Filed 3–18–21; 4:15 pm] 

BILLING CODE P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2020–0971; Product 

Identifier 2020–NM–083–AD; Amendment 

39–21453; AD 2021–05–10] 

RIN 2120–AA64 

Airworthiness Directives; Airbus 

Canada Limited Partnership (Type 

Certificate Previously Held by C Series 

Aircraft Limited Partnership (CSALP); 

Bombardier, Inc.) Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for certain 

Airbus Canada Limited Partnership 

Model BD–500–1A10 and BD–500– 

1A11 airplanes. This AD was prompted 

by a report that threaded fuel couplings 

were incorrectly installed at final 

assembly and in service. This AD 

requires repetitive functional tests of the 

auxiliary power unit (APU) fuel feed 

line shroud, a general visual inspection 

of the APU fuel feed line shroud for any 

loose couplings; and tightening any 

loose couplings, which would terminate 

the repetitive functional tests. The FAA 

is issuing this AD to address the unsafe 

condition on these products. 

DATES: This AD is effective April 26, 

2021. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in this AD 

as of April 26, 2021. 

ADDRESSES: For service information 

identified in this final rule, contact 

Airbus Canada Limited Partnership, 

13100 Henri-Fabre Boulevard, Mirabel, 

Que ́bec J7N 3C6, Canada; telephone 

450–476–7676; email a220_crc@

abc.airbus; internet http://

a220world.airbus.com. You may view 

this service information at the FAA, 

Airworthiness Products Section, 

Operational Safety Branch, 2200 South 

216th St., Des Moines, WA. For 

information on the availability of this 

material at the FAA, call 206–231–3195. 

It is also available on the internet at 

https://www.regulations.gov by 

searching for and locating Docket No. 

FAA–2020–0971. 

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– 


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