13628 Federal Register / Vol. 87, No. 47 / Thursday, March 10, 2022 / Rules and Regulations 

1ARPA, Public Law 117–2, sec. 3301, codified at 

12 U.S.C. 5701 et seq. SSBCI was originally 

established in Title III of the Small Business Jobs 

Act of 2010. 

relief from the burden of the new Russia 

Sanctions rule and Belarus Sanctions 

rule requirements that would otherwise 

pertain to items produced in, exported 

or reexported from South Korea, or 

transferred (in-country). Thus, this rule 

does not create a substantive change to 

OMB Control Numbers 0694–0088, 

0694–0096, or 0607–0152. 

3. This rule does not contain policies 

with federalism implications as that 

term is defined in Executive Order 

13132. 

4. Pursuant to section 1762 of the 

Export Control Reform Act of 2018 (50 

U.S.C. 4821) (ECRA), this action is 

exempt from the Administrative 

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

requirements for notice of proposed 

rulemaking, opportunity for public 

participation, and delay in effective 

date. While section 1762 of ECRA 

provides sufficient authority for such an 

exemption, this action is also 

independently exempt from these APA 

requirements because it involves a 

military or foreign affairs function of the 

United States (5 U.S.C. 553(a)(1)). 

5. Because a notice of proposed 

rulemaking and an opportunity for 

public comment are not required to be 

given for this rule by 5 U.S.C. 553, or 

by any other law, the analytical 

requirements of the Regulatory 

Flexibility Act, 5 U.S.C. 601, et seq., are 

not applicable. Accordingly, no 

regulatory flexibility analysis is 

required, and none has been prepared. 

List of Subjects in 15 CFR Part 746 

Exports, Reporting and recordkeeping 

requirements. 

For the reasons stated in the 

preamble, part 746 of the Export 

Administration Regulations (15 CFR 

parts 730 through 774) is amended as 

follows: 

PART 746—EMBARGOES AND OTHER 

SPECIAL CONTROLS 

■ 1. The authority citation for 15 CFR 

part 746 continues to read as follows: 

Authority: 50 U.S.C. 4801–4852; 50 U.S.C. 

4601 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C. 

287c; Sec. 1503, Pub. L. 108–11, 117 Stat. 

559; 22 U.S.C. 2151 note; 22 U.S.C. 6004; 22 

U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 

12854, 58 FR 36587, 3 CFR, 1993 Comp., p. 

614; E.O. 12918, 59 FR 28205, 3 CFR, 1994 

Comp., p. 899; E.O. 13222, 66 FR 44025, 3 

CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR 

26751, 3 CFR, 2004 Comp., p 168; 

Presidential Determination 2003–23, 68 FR 

26459, 3 CFR, 2004 Comp., p. 320; 

Presidential Determination 2007–7, 72 FR 

1899, 3 CFR, 2006 Comp., p. 325; Notice of 

May 6, 2021, 86 FR 26793 (May 10, 2021). 

■ 2. Supplement no. 3 to part 746 is 

amended by adding an entry for ‘‘South 

Korea’’ in alphabetical order to read as 

follows: 

Supplement No. 3 to Part 746— 

Countries Excluded From Certain 

License Requirements of § 746.8 

* * * * * 

Country Scope Federal Register citation 

*******

South Korea .................................................. Full ............................................................... 87 FR [INSERT FR PAGE NUMBER] 3/10/2022. 

*******

Thea D. Rozman Kendler, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2022–05025 Filed 3–4–22; 4:15 pm] 

BILLING CODE 3510–33–P 

DEPARTMENT OF THE TREASURY 

31 CFR Part 35 

RIN 1505–AC79 

State Small Business Credit Initiative; 

Demographics-Related Reporting 

Requirements 

AGENCY: Department of the Treasury. 

ACTION: Interim final rule. 

SUMMARY: The Secretary of the Treasury 

is issuing this interim final rule to 

institute the reporting requirements 

related to demographics of those who 

own or control small businesses that 

receive a loan, investment, other credit 

or equity support, or technical 

assistance under the State Small 

Business Credit Initiative under the 

American Rescue Plan Act of 2021. 

DATES: 

Effective date: This interim final rule 

is effective March 9, 2022. 

Comment date: Comments must be 

received on or before April 11, 2022. 

ADDRESSES: Please submit comments 

electronically through the Federal 

eRulemaking Portal: https://

www.regulations.gov. Comments can be 

mailed to the Office of Recovery 

Programs, Department of the Treasury, 

1500 Pennsylvania Avenue NW, 

Washington, DC 20220. Because postal 

mail may be subject to processing delay, 

it is recommended that comments be 

submitted electronically. All comments 

should be captioned with ‘‘SSBCI 

Interim Final Rule Comments.’’ Please 

include your name, organization 

affiliation, address, email address and 

telephone number in your comment. 

Where appropriate, a comment should 

include a short executive summary. In 

general, comments received will be 

posted on https://www.regulations.gov 

without change, including any business 

or personal information provided. 

Comments received, including 

attachments and other supporting 

materials, will be part of the public 

record and subject to public disclosure. 

Do not enclose any information in your 

comment or supporting materials that 

you consider confidential or 

inappropriate for public disclosure. 

FOR FURTHER INFORMATION CONTACT: Jeff 

Stout, Director, Office of Federal 

Program Finance, at (202) 622–2059 or 

ssbci_information@treasury.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The American Rescue Plan Act of 

2021 (ARPA) reauthorized and amended 

the Small Business Jobs Act of 2010 

(SBJA) to provide $10 billion to fund the 

State Small Business Credit Initiative 

(SSBCI) as a response to the economic 

effects of the COVID–19 pandemic.1

SSBCI is a federal program administered 

by the U.S. Department of the Treasury 

(Treasury) that was created to 

strengthen the programs of eligible 

jurisdictions that support private 

financing for small businesses. Eligible 

jurisdictions include states, territories, 

Tribal governments, and eligible 

municipalities. SSBCI is expected to, in 

conjunction with new small business 

financing, create billions of dollars in 

lending to, and investments in, small 

businesses. 


khammond on DSKJM1Z7X2PROD with RULES
Federal Register / Vol. 87, No. 47 / Thursday, March 10, 2022 / Rules and Regulations 13629 

2See 12 U.S.C. 5706, 5709. 3 12 U.S.C. 5702(d)(2). 

4 12 U.S.C. 5702(e). 

5 12 U.S.C. 5708(e). 

6 12 U.S.C. 5702(d)(1). 

7See, e.g., Cong. Rec. H1283 (Statement of Rep. 

Waters) (Mar. 10, 2021) (citing ‘‘the widespread 

challenges small businesses, especially minorityowned businesses, have faced during the COVID– 

19 pandemic’’); Cong. Rec. H1280 (Statement of 

Speaker Pelosi) (‘‘The most vulnerable among us 

have been the most disproportionately affected . . . 

women and minority-owned businesses forced to 

shudder [sic], communities of color facing rising 

disparities’’ and explaining ‘‘This legislation will, 

among other steps, address 8 in 10 minority owned 

businesses on the brink of closure . . . .’’). 

8 31 CFR 22.6(b), 

9See 12 CFR 1002.5(b). 

10 12 CFR 1002.5(a)(2). 

11For more information on all eligible groups of 

businesses on which jurisdictions may expend their 

SSBCI SEDI allocation funds, please see the SSBCI 

Capital Program Policy Guidelines published on 

Treasury’s website. 

II. Summary of the Interim Final Rule 

A. Authority, Scope, and Purpose 

Treasury has authority under the 

SSBCI statute to issue a rule on 

collecting demographics-related data of 

those who own or control small 

businesses that participate in SSBCI for 

purposes of implementation, 

compliance and reporting, and 

understanding program outcomes.2

First, issuing this interim final rule is 

important for the implementation of and 

compliance with the program 

requirements regarding allocations 

related to business enterprises that are 

owned and controlled by socially and 

economically disadvantaged individuals 

(SEDI-owned and controlled 

businesses). ARPA provides $1.5 billion 

of capital funding to be allocated based 

on the needs of SEDI-owned and 

controlled businesses (SEDI allocation),3

$1.0 billion of capital funding for an 

incentive program for jurisdictions that 

demonstrate robust support for SEDIowned and controlled businesses in the 

deployment of previously allocated 

SSBCI capital funding (SEDI incentive 

allocation),4 and $500 million for 

technical assistance to, in part, SEDIowned and controlled businesses.5

ARPA also states that the $1.5 billion 

SEDI allocation must be expended for 

SEDI-owned and controlled businesses.6

The $1.5 billion SEDI allocation and 

$1.0 billion SEDI incentive allocation 

are intended to address the widespread 

challenges that these businesses have 

faced in light of the COVID–19 

pandemic.7 The technical assistance 

funding is to help, in part, SEDI-owned 

and controlled businesses that are 

applying to receive a loan, investment, 

or other credit or equity support under 

the SSBCI. The information reported 

under this interim final rule will help 

Treasury determine the extent to which 

SSBCI funds have been provided to 

SEDI-owned and controlled businesses. 

Second, this interim final rule is being 

issued to ensure compliance with legal 

requirements related to 

nondiscrimination and 

nondiscriminatory uses of federal funds, 

where such laws are applicable to a 

participating jurisdiction and any 

contracted entity operating SSBCI 

programs on the jurisdiction’s behalf 

because all SSBCI funds are considered 

federal financial assistance for purposes 

of such requirements. These legal 

requirements include, but are not 

limited to, Title VI of the Civil Rights 

Act of 1964 and Treasury’s regulations 

at 31 CFR part 22, which require 

recipients of SSBCI funding to maintain 

and submit racial and ethnic data of 

beneficiaries that receive Federal 

financial assistance.8

Third, issuing this interim final rule 

is important for SSBCI implementation 

and compliance because some 

participating jurisdictions will partner 

with lenders or other financial entities 

that are subject to laws that prohibit 

these entities from inquiring about the 

race, color, religion, national origin, or 

sex of an applicant or any other person 

in connection with a credit transaction, 

unless such information is required by 

a regulation, order, or agreement issued 

by, or entered into with, an enforcement 

agency or a court to monitor or enforce 

compliance with federal or state statutes 

or regulations. For example, under 12 

CFR part 1002 (Regulation B) 

implementing the Equal Credit 

Opportunity Act, creditors are generally 

prohibited from inquiring about the 

race, color, religion, national origin, or 

sex of an applicant or any other person 

in connection with a credit transaction, 

unless an exception applies.9 One 

exception is for certain required 

information collection ‘‘to monitor or 

enforce compliance with the [Equal 

Credit Opportunity] Act, [Regulation B], 

or other Federal or state statutes or 

regulations.’’ 10 This interim final rule 

will facilitate the collection of 

information that might not otherwise be 

collected by creditors who will be 

SSBCI lenders. Treasury expects that, in 

accordance with this interim final rule, 

participating jurisdictions will contract 

with lenders and other financial entities 

to implement SSBCI programs and 

collect this information. Lenders and 

other financial entities participating in 

SSBCI must request the demographic 

information described in this interim 

final rule, and collect and report such 

information certified by authorized 

representatives of participating small 

businesses. Although such lenders and 

other financial entities must collect and 

report such information, participating 

small businesses have the option to 

choose ‘‘prefer not to respond’’ or to not 

respond by leaving the request blank. 

This interim final rule does not require 

verification of responses provided by 

participating small businesses. Treasury 

believes that requiring verification of 

small business-provided responses 

would greatly increase the operational 

burden of the interim final rule. 

Finally, this interim final rule is 

important for understanding SSBCI 

program outcomes. Such information 

will allow Treasury to analyze and 

report on the populations that SSBCI 

funding is benefiting. 

B. Definitions and Reporting 

Requirements 

Under this interim final rule, each 

jurisdiction that participates in SSBCI 

must submit an annual report to 

Treasury that includes the following 

data: Self-certified SEDI demographicsrelated business status; minority-owned 

or controlled business status; womenowned or controlled business status; 

veteran-owned or controlled business 

status; and the race, ethnicity, gender, 

sexual orientation, Middle Eastern or 

North African ancestry, and veteran 

status with which principal owners 

identify. For each business that receives 

a loan, investment, or other credit or 

equity support under the SSBCI, the 

reported data must be based on the 

ownership and control of the business 

immediately before the consummation 

of such loan, investment, or other credit 

or equity support-related transaction. 

For each business that receives 

technical assistance under the SSBCI, 

the reported data must be based on the 

ownership and control of the business at 

the time it receives such technical 

assistance. The self-certified SEDI 

demographics-related business status 

variable reflects one group of SEDIowned and controlled businesses on 

which jurisdictions may expend their 

portion of the $1.5 billion SEDI 

allocation and their portion of technical 

assistance funding.11 Loan, investment, 

or other credit or equity support-related 

transactions conducted with selfcertified SEDI demographics-related 

businesses may also count toward 

earning a participating jurisdiction’s 

portion of the $1.0 billion SEDI 

incentive allocation. The definition of 

‘‘owned and controlled,’’ which is used 

in the definition of SEDI demographicsrelated business, is based on the 

statutory definition of ‘‘business 

enterprise owned and controlled by 


khammond on DSKJM1Z7X2PROD with RULES
13630 Federal Register / Vol. 87, No. 47 / Thursday, March 10, 2022 / Rules and Regulations 

12See 12 U.S.C. 5701(15). 

13See id. 

14See 31 CFR 1010.230(d)(1). 

15U.S. Census Bureau, Phase 3.3 Household 

Pulse Survey, available at https://www2.census.gov/ 

programs-surveys/demo/technical-documentation/ 

hhp/Phase3-3_Questionnaire_12_01_21_

English.pdf. 

16 Department of Defense, P1 Survey, available at 

https://www.reginfo.gov/public/do/Download

Document?objectID=112827001. 

17U.S. Department of Agriculture, 2021 Farm 

Producer Study, available at https://omb.report/icr/ 

202109-0535-001/doc/114843800. 

18Small Business Lending Data Collection Under 

the Equal Credit Opportunity Act (Regulation B), 86 

FR 56356, 56582 (Oct. 8, 2021). 

19For example, see the demographics reporting 

guidance of the Emergency Rental Assistance 

Program, starting on page 16, available at https:// 

home.treasury.gov/system/files/136/ERA-ReportingGuidance-v2.pdf. 

20U.S. Census Bureau, Phase 3.3 Household 

Pulse Survey, available at https://www2.census.gov/ 

programs-surveys/demo/technical-documentation/ 

hhp/Phase3-3_Questionnaire_12_01_21_

English.pdf. 

socially and economically 

disadvantaged individuals,’’ which 

includes prongs for three types of 

organizations: Private businesses, public 

businesses, and mutual institutions.12

For example, 51 percent ownership of a 

private institution is a sufficient 

condition to fulfill the ownership-andcontrol requirement for a business to be 

a self-certified SEDI demographicsrelated business. 

Under this interim final rule, Treasury 

will also collect information on whether 

the business is majority-owned or 

controlled by minority individuals, 

females, or veterans. These data 

elements do not affect the determination 

of SEDI-owned and controlled business 

status. The SSBCI statute does not 

define ‘‘owned or controlled’’ for 

purposes of these categories. Therefore, 

the definition of ‘‘owned or controlled’’ 

for purposes of these terms are based 

both on the definition of ‘‘business 

enterprise owned and controlled by 

socially and economically 

disadvantaged individuals’’ in the 

SSBCI statute 13 and also on the control 

prong of the definition of ‘‘beneficial 

owner’’ in the Financial Crimes 

Enforcement Network’s (FinCEN) 

customer due diligence (CDD) rule, 

which requires covered financial 

institutions to establish and maintain 

written procedures that are reasonably 

designed to identify and verify 

beneficial owners of legal entity 

customers.14 In choosing this approach, 

Treasury considered that the ‘‘beneficial 

owner’’ definition under FinCEN’s CDD 

rule is already widely in use, and that 

most financial institutions are likely 

familiar with the standard, because 

many of them are required to comply 

with the CDD rule. Accordingly, a 

business can be a minority-owned or 

controlled business, women-owned or 

controlled business, or veteran-owned 

or controlled business (as applicable) if 

(1) the applicable prong under the 

definition of ‘‘owned and controlled’’ 

explained above is met or (2) one or 

more minority individuals, females, or 

veterans, respectively, have the power 

to exercise a controlling influence over 

the management, direction, or policies 

of the business. 

Under this interim final rule, Treasury 

will further collect the race, ethnicity, 

gender, sexual orientation, Middle 

Eastern or North African ancestry, and 

veteran status with which the principal 

owners of all businesses that participate 

in SSBCI transactions that occurred in 

the preceding calendar year identify. 

These data elements also do not affect 

the determination of SEDI-owned and 

controlled business status. Treasury 

defines the term ‘‘principal owner’’ 

based on the ownership prong of the 

definition of beneficial ownership under 

FinCEN’s CDD rule. Under this interim 

final rule, an individual is a principal 

owner if the individual directly or 

indirectly, through any contract, 

arrangement, understanding, 

relationship or otherwise, owns 25 

percent or more of the equity interests 

of the business. 

The categories of responses related to 

gender under this interim final rule are 

female, male, non-binary, an option for 

‘‘prefer to self-describe’’ with a write-in 

field that allows for identification in a 

different manner, ‘‘prefer not to 

respond,’’ and that the business did not 

answer. In considering this approach, 

Treasury reviewed the following 

information. The Census Bureau’s 

Household Pulse Survey includes 

questions on sex and gender identity. 

One of these questions asks, ‘‘What sex 

were you assigned at birth, on your 

original birth certificate?’’ with 

responses including male or female. 

Another question asks, ‘‘Do you 

currently describe yourself as male, 

female, or transgender?’’ with responses 

including male, female, transgender, or 

none of these.15 The Department of 

Defense P1 survey includes a question 

that asks, ‘‘Are you . . . ?’’ with 

responses that include male or female.16

The U.S. Department of Agriculture’s 

Farm Producer Study includes a 

question that asks ‘‘How do you 

currently describe yourself?’’ with 

responses that include male, female, 

transgender, and none of these, specify 

(with a space to write-in). The same 

study also includes a question that asks, 

‘‘Was your sex recorded as male or 

female at birth?’’ with responses that 

include male or female.17

The Consumer Financial Protection 

Bureau’s proposed rule for the 

collection of small business data asks 

for information on the sex of the 

principal owner with the response 

options of female, male, I prefer to selfidentify as (with a space to write in), 

and I do not wish to provide this 

information.18 Treasury’s approach is 

most consistent with the Consumer 

Financial Protection Bureau’s proposed 

rule for collection of small business data 

in that Treasury includes response 

options of female, male, an option for 

‘‘prefer to self-describe’’ with a write-in 

field (which is similar to the Consumer 

Financial Protection Bureau proposed 

rule’s I prefer to self-identify as (with a 

space to write in)), and an option for 

‘‘prefer not to respond.’’ Treasury also 

includes ‘‘non-binary’’ as a response in 

order to provide some consistency with 

other Treasury coronavirus relief 

programs, such as the Emergency Rental 

Assistance Program, which collects data 

on whether award recipients are female, 

male, non-binary, declined to answer, or 

data not collected.19 As businesses may 

elect to not choose any of the 

aforementioned responses by leaving 

the responses blank, Treasury also 

provides jurisdictions the option to 

report ‘‘the business did not answer.’’ 

In addition, Treasury will collect data 

regarding the sexual orientation status 

with which principal owners identify 

with response options of gay or lesbian; 

bisexual; straight, that is, not gay, 

lesbian, or bisexual; something else; an 

option for the business to choose that it 

prefers not to respond; or that the 

business did not answer. Treasury is 

collecting this information related to 

sexual orientation to better understand 

the demographics of the principal 

owners of businesses receiving SSBCI 

funds. The collection of this information 

is expected to provide valuable insights 

on SSBCI program outcomes and small 

business ecosystems, along with the 

performance of businesses owned by 

individuals who identify as lesbian, gay, 

or bisexual. 

In considering this approach, 

Treasury reviewed the following 

information. The Census Bureau’s 

Household Pulse Survey includes a 

question on sexual orientation that asks, 

‘‘Which of the following best represents 

how you think of yourself?’’ with 

responses including gay or lesbian; 

straight, that is not gay or lesbian; 

bisexual; something else; or I don’t 

know.20 The Department of Defense P1 

Survey also includes a question on 


khammond on DSKJM1Z7X2PROD with RULES
Federal Register / Vol. 87, No. 47 / Thursday, March 10, 2022 / Rules and Regulations 13631 

21 Department of Defense, P1 Survey, available at 

https://www.reginfo.gov/public/do/Download

Document?objectID=112827001. 

22U.S. Department of Agriculture, 2021 Farm 

Producer Study, available at https://omb.report/icr/ 

202109-0535-001/doc/114843800. 

23Off. of Mgmt. & Budget, Revisions to the 

Standards for the Classification of Federal Data on 

Race and Ethnicity, 62 FR 58782, 58782–90 (Oct. 

30, 1997). 

24See Informational Copy of the U.S. 2020 

Census, U.S. Census Bureau, https://

www2.census.gov/programs-surveys/decennial/ 

2020/technical-documentation/questionnaires-andinstructions/questionnaires/2020-informationalquestionnaire-english_DI-Q1.pdf. 

25See 12 CFR part 1003, appendix B (Form and 

Instructions for Data Collection on Ethnicity, Race, 

and Sex). 

26See id. 27See 12 U.S.C. 5706(c). 

sexual orientation that asks, ‘‘How do 

you describe your sexual orientation? 

(Select all that apply.),’’ with responses 

including heterosexual or straight; 

lesbian or gay; bisexual, pansexual, or 

queer; questioning, asexual, demisexual; 

other; and prefer not to answer.21 The 

U.S. Department of Agriculture’s Farm 

Producer Study includes a question on 

sexual orientation that asks, ‘‘Which of 

the following best represents how you 

think of yourself?’’ with responses 

including gay or lesbian; straight, that 

is, not gay or lesbian; bisexual; none of 

these, specify (with a space to write in); 

I am not sure yet; and I don’t know what 

this question means.22 Treasury’s 

approach is generally consistent with 

these approaches, and most consistent 

with the Census Bureau’s Household 

Pulse Survey, but Treasury’s reporting 

does not include a response indicating 

that the individual does not know their 

sexual orientation, in part because 

responses from individual small 

business owners are not required by 

beneficiaries to receive funding. 

Treasury’s decision to include an option 

for ‘‘prefer not to respond’’ is consistent 

with the Department of Defense’s P1 

Survey’s option of ‘‘prefer not to 

answer.’’ As businesses may elect to not 

choose any of the aforementioned 

responses by leaving the responses 

blank, Treasury also provides 

jurisdictions the option to report ‘‘the 

business did not answer.’’ 

Treasury will collect information 

about race and ethnicity statuses with 

which principal owners identify, 

consistent with the Office of 

Management and Budget (OMB) 

Standards for the Classification of 

Federal Data on Race and Ethnicity, 

which govern how questions about race 

and ethnicity should be asked on all 

federal collections. There are two 

ethnicity categories (Hispanic or Latino; 

and Not Hispanic or Latino) and five 

minimum race categories (American 

Indian or Alaska Native; Asian; Black or 

African American; Native Hawaiian or 

Other Pacific Islander; and White).23

Further disaggregation is allowable. For 

example, many Census Bureau surveys, 

as well as the Department of Health and 

Human Services’ (HHS) approach for 

collecting data for its population 

studies, offer checkboxes for selected 

disaggregated categories for Asian (i.e., 

Asian Indian; Chinese; Filipino; 

Japanese; Korean; Vietnamese; and 

Other Asian) as well as for Native 

Hawaiian or Other Pacific Islander (i.e., 

Native Hawaiian; Chamorro; Samoan; 

and Other Pacific Islander).24 The 2020 

Census offered respondents the 

opportunity to, under each of the 

minimum categories, write in additional 

specifics. Both minimum categories and 

disaggregated categories of race and 

ethnicity are used in the data collection 

under the Home Mortgage Disclosure 

Act (HMDA).25 The HMDA data 

collection also permits individuals to 

answer with ‘‘I do not wish to provide 

this information.’’ 26

Treasury believes that collecting only 

the OMB minimum categories of race 

may mask the effects of SSBCI funds on 

businesses in jurisdictions with a large 

population of one OMB minimum 

category of race and multiple 

populations of categories of race, and 

therefore hinder the understanding of 

program outcomes in these 

jurisdictions. Thus, this interim final 

rule provides for the reporting of 

information consistent with the OMB 

data collection standard, using the five 

minimum race categories, in addition to 

disaggregating the Asian and Native 

Hawaiian or Other Pacific Islander 

categories, which is consistent with the 

approaches used by HHS and the 

Census Bureau’s American Community 

Survey. Treasury will collect 

information on ethnicity consistent with 

the OMB data collection standard’s 

minimum ethnicity categories. For both 

the race and ethnicity information 

collection, Treasury is providing a 

response option of ‘‘prefer not to 

respond,’’ consistent with the HMDA 

data collection’s ‘‘I do not wish to 

provide this information.’’ As 

businesses may elect not to respond by 

leaving the information request blank, 

Treasury also provides jurisdictions the 

option to report ‘‘the business did not 

answer.’’ 

Treasury also believes that it is 

important to collect information on 

those that identify as Middle Eastern or 

North African to understand whether 

SSBCI funds are reaching businesses 

principally owned by such individuals. 

Currently, people of Middle Eastern or 

North African ancestry are categorized 

as White under OMB data collection 

standards. Because Treasury must 

comply with these standards, Treasury 

is collecting information about Middle 

Eastern or North African ancestry 

through a separate ancestry question. 

Finally, this interim final rule requires 

jurisdictions to submit the required 

information using the format specified 

on Treasury’s website.27

We welcome comment on any aspect 

of this interim final rule. 

III. Regulatory Analyses 

Executive Orders 12866 and 13563 

Executive Orders 12866 and 13563 

direct agencies to assess costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. This 

interim final rule has been designated a 

‘‘significant regulatory action,’’ although 

not economically significant, under 

section 3(f) of Executive Order 12866. 

As explained above, this interim final 

rule institutes reporting requirements to 

implement, determine compliance with, 

and understand the program outcomes 

of SSBCI, as reauthorized and amended 

by ARPA. As these reporting 

requirements focus only on data 

collection, this interim final rule is not 

economically significant. However, we 

welcome comments on the economic 

impact of this interim final rule. 

Particularly, Treasury welcomes 

comments and data on how this interim 

final rule may substantively affect the 

SSBCI program. 

Executive Order 13132 

Executive Order 13132 (entitled 

Federalism) prohibits an agency from 

publishing any rule that has federalism 

implications if this interim final rule 

either imposes substantial, direct 

compliance costs on state, local, and 

Tribal governments, and is not required 

by statute, or preempts state law, unless 

the agency meets the consultation and 

funding requirements of section 6 of the 

Executive order. This interim final rule 

does not have federalism implications 

within the meaning of the Executive 

order and does not impose substantial, 

direct compliance costs on state, local, 


khammond on DSKJM1Z7X2PROD with RULES
13632 Federal Register / Vol. 87, No. 47 / Thursday, March 10, 2022 / Rules and Regulations 

28See Bureau of Labor Statistics, U.S. Department 

of Labor, Occupational Outlook Handbook, 

Accountants and Auditors, on the internet at 

https://www.bls.gov/oes/current/oes132011.htm. 

Base wage of $35.37/hour increased by 46 percent 

to account for fully loaded employer cost of 

employee compensation (benefits, etc.) for a fully 

loaded wage rate of $51.64. 13,050 multiplied by 

$51.64 equals $673,902. 

and Tribal governments or preempt state 

law within the meaning of the Executive 

order. The compliance costs are 

imposed on state, local, and Tribal 

governments by the Small Business Jobs 

Act, as amended by ARPA. 

Notwithstanding the above, Treasury 

has engaged in efforts to consult with 

affected state, local, and Tribal 

government officials and associations in 

the process of developing this interim 

final rule. Pursuant to the requirements 

set forth in section 8(a) of Executive 

Order 13132, Treasury certifies that it 

has complied with the requirements of 

Executive Order 13132. 

Paperwork Reduction Act, 44 U.S.C. 

Chapter 35 

The Paperwork Reduction Act of 1995 

(44 U.S.C. 3501–3521) (PRA) states that 

no agency may conduct or sponsor, nor 

is the respondent required to respond 

to, an information collection unless it 

displays a currently valid OMB control 

number. 

This interim final rule will add 

annual reporting requirements. These 

collections will increase total annual 

burden by 13,050 hours: The 

requirements are expected to take 500 

jurisdictions 26.10 hours to complete for 

an annual burden of 13,050 hours. 

Using the standard total compensation 

for accountants and auditors, the 

estimated cost of this information 

collection is $673,902.28

The OMB Control Number for the 

SSBCI information collection is 1505– 

0227. Comments concerning the 

collections of information should be 

directed to the Office of Recovery 

Programs, Department of the Treasury, 

1500 Pennsylvania Avenue NW, 

Washington, DC 20220. Treasury 

welcomes comments on the compliance 

burdens for the information collection 

under this interim final rule. 

Congressional Review Act 

The Administrator of OMB’s Office of 

Information and Regulatory Affairs 

(OIRA) has determined that this is not 

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). 

Administrative Procedure Act 

The Administrative Procedure Act 

(APA), 5 U.S.C. 551 et seq., generally 

requires public notice and an 

opportunity for comment before a rule 

becomes effective. However, the APA 

provides that the requirements of 5 

U.S.C. 553 do not apply ‘‘to the extent 

that there is involved . . . a matter 

relating to agency . . . grants . . . or 

contracts.’’ This interim final rule is 

being issued for purposes of 

implementation, compliance, and 

understanding the outcomes of the 

SSBCI program. While SSBCI capital 

funds are not considered federal 

financial assistance for the purposes of 

31 U.S.C. subtitle V under the SSBCI 

statute, the SSBCI program resembles 

other coronavirus relief programs that 

Treasury is implementing. SSBCI capital 

funds will be disbursed to eligible 

jurisdictions that apply in order to 

establish small business lending and 

investment programs. This interim final 

rule sets forth the ‘‘process necessary to 

maintain. . . eligibility for federal 

funds,’’ id., as well as the ‘‘method[s] by 

which [jurisdictions] can . . . qualify 

for federal aid,’’ and other ‘‘integral 

part[s] of the grant program,’’ Center for 

Auto Safety v. Tiemann, 414 F. Supp. 

215, 222 (D.D.C. 1976). Eligible 

jurisdictions must submit the annual 

information required by this interim 

final rule in Treasury’s prescribed 

format to remain eligible for SSBCI 

capital funding. Treasury will also use 

the reported data to determine whether 

jurisdictions are eligible for the SEDI 

incentive allocation. As a result, the 

requirements of 5 U.S.C. 553 do not 

apply. 

The APA also provides an exception 

to notice-and-comment procedures 

‘‘when the agency for good cause finds 

(and incorporates the finding and a brief 

statement of reasons therefor in the 

rules issued) that notice and public 

procedure thereon are impracticable, 

unnecessary, or contrary to the public 

interest.’’ 5 U.S.C. 553(b)(3)(B); see also 

5 U.S.C. 553(d)(3) (creating an exception 

to the requirement of a 30-day delay 

before the effective date of a rule ‘‘for 

good cause found and published with 

the rule’’). Even if 5 U.S.C. 553 applied, 

Treasury would have good cause under 

sections 553(b)(3)(B) and 553(d)(3) for 

not complying with these requirements 

under section 553. ARPA is a law 

responding to a historic economic and 

public health emergency; it is 

‘‘extraordinary’’ legislation about which 

‘‘both Congress and the President 

articulated a profound sense of 

‘urgency.’ ’’ Petry v. Block, 737 F.2d 

1193, 1200 (D.C. Cir. 1984). In addition, 

there is an urgent need for jurisdictions 

to undertake the planning necessary to 

implement their SSBCI capital 

programs. Developing these programs 

requires an understanding of all the 

program requirements, including the 

data collection and reporting 

requirements implemented in this 

interim final rule. These requirements 

are immediately effective but may 

change when the rule is finalized. 

Without having clarity on how the 

SSBCI program requirements will 

interact with existing restrictions on 

lenders’ and other financial entities’ 

availability to collect this data, 

jurisdictions may have difficulty 

attracting lenders and other financial 

entities to implement SSBCI programs, 

which could hinder their efforts to 

deploy the allocation for SEDI-owned 

and controlled businesses as Congress 

intended. Treasury understands that 

many jurisdictions require immediate 

rules on which they can rely in order to 

develop sound SSBCI programs. The 

statutory urgency and practical 

necessity are good cause to forego the 

ordinary requirements of notice-andcomment rulemaking. 

Regulatory Flexibility Analysis 

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 

under the APA are also exempt from the 

RFA requirements, including the 

requirement to conduct a regulatory 

flexibility analysis. Since this interim 

final rule is exempt from the notice and 

comment requirements of the APA, 

Treasury is not required to conduct a 

regulatory flexibility analysis. 

List of subjects in 31 CFR Part 35 

Executive compensation, Public 

health emergency, State and local 

governments, Tribal governments. 

For the reasons stated in the 

preamble, the Department of the 

Treasury amends 31 CFR part 35 as 

follows: 

PART 35—PANDEMIC RELIEF 

PROGRAMS 

■ 1.The authority citation for part 35 is 

revised to read as follows: 


khammond on DSKJM1Z7X2PROD with RULES
Federal Register / Vol. 87, No. 47 / Thursday, March 10, 2022 / Rules and Regulations 13633 

Authority: 42 U.S.C. 802(f); 42 U.S.C. 

803(f); 31 U.S.C. 321; 12 U.S.C. 5701–5710; 

Division N, Title V, Subtitle B, Pub. L. 116– 

260, 134 Stat. 1182 (12 U.S.C. 4703a); Section 

104A, Pub. L. 103–325, 108 Stat. 2160, as 

amended (12 U.S.C. 4701 et seq.); Pub. L. 

117–2, 135 Stat. 4 (42 U.S.C. 802 et seq.). 

■ 2. Add subpart C to read as follows: 

Subpart C—State Small Business 

Credit Initiative Small Business 

Owners Demographics Data Collection 

Sec. 

35.26 Authority, scope, and purpose. 

35.27 Definitions. 

35.28 Annual report requirements. 

35.29 Format. 

§ 35.26 Authority, scope, and purpose. 

(a) Authority and scope. This subpart 

is issued by the U.S. Department of the 

Treasury pursuant to Sections 3007 and 

3010 of the Small Business Jobs Act of 

2010, as amended by the American 

Rescue Plan Act of 2021 (12 U.S.C. 

5706, 5709). 

(b) Purpose. The U.S. Department of 

the Treasury is collecting demographicsrelated data regarding those who own or 

control businesses that receive a loan, 

investment, other credit or equity 

support, or technical assistance under 

the State Small Business Credit 

Initiative for purposes of 

implementation, compliance, and 

understanding program outcomes. 

§ 35.27 Definitions. 

In this subpart: 

(a) Controlling influence over a 

business means having the power to 

control, manage, or direct the business. 

A person is presumed to have a 

controlling influence over a business if 

the person is a senior executive officer 

or senior manager of the business (e.g., 

Chief Executive Officer, Chief Financial 

Officer, Chief Operating Officer), or any 

other individual who regularly performs 

similar functions. 

(b) Jurisdiction means: 

(1) One of the fifty states of the United 

States; 

(2) The District of Columbia, the 

Commonwealth of Puerto Rico, the 

Commonwealth of Northern Mariana 

Islands, Guam, American Samoa, and 

the United States Virgin Islands; 

(3) When designated by one of the 

fifty states of the United States, a 

political subdivision of that state that 

the U.S. Department of the Treasury 

determines has the capacity to 

participate in the State Small Business 

Credit Initiative; 

(4) Under the circumstances described 

in 12 U.S.C. 5703(d), a municipality of 

one of the fifty states of the United 

States to which the U.S. Department of 

the Treasury has given a special 

permission under 12 U.S.C. 5703(d); 

and 

(5) A Tribal government or a group of 

Tribal governments that jointly apply to 

be approved by the U.S. Department of 

Treasury to participate in the State 

Small Business Credit Initiative as a 

single participating jurisdiction. 

(c) Minority individual means a 

natural person who identifies as 

American Indian or Alaska Native; 

Asian; Black or African American; 

Native Hawaiian or Other Pacific 

Islander; or Hispanic or Latino/a; or one 

or more than one of these groups. 

(d) Minority-owned or controlled 

business means a business that: 

(1) If privately owned, 51 percent or 

more is owned by minority individuals; 

(2) If publicly owned, 51 percent or 

more of the stock is owned by minority 

individuals; 

(3) In the case of a mutual institution, 

a majority of the board of directors, 

account holders, and the community 

which the institution services is 

predominantly comprised of minority 

individuals; or 

(4) One or more minority individuals 

have the power to exercise a controlling 

influence over the business. 

(e) Participating jurisdiction means a 

jurisdiction that has been approved by 

the U.S. Department of the Treasury for 

participation in the State Small 

Business Credit Initiative. 

(f) Principal owner of a business 

means a natural person who directly or 

indirectly, through any contract, 

arrangement, understanding, 

relationship or otherwise, owns 25 

percent or more of the equity interests 

of the business. If a trust owns, directly 

or indirectly, through any contract, 

arrangement, understanding, 

relationship or otherwise, 25 percent or 

more of the equity interests of the 

business, the trustee is a principal 

owner. 

(g) Socially and economically 

disadvantaged individual (SEDI) 

demographics-related business means a 

business owned and controlled by 

individuals who have had their access 

to credit on reasonable terms 

diminished compared to others in 

comparable economic circumstances, 

due to their: 

(1) Membership of a group that has 

been subjected to racial or ethnic 

prejudice or cultural bias within 

American society; 

(2) Gender; 

(3) Veteran status; 

(4) Limited English proficiency; 

(5) Disability; 

(6) Long-term residence in an 

environment isolated from the 

mainstream of American society; 

(7) Membership of a federally or staterecognized Indian Tribe; 

(8) Long-term residence in a rural 

community; 

(9) Residence in a U.S. territory; 

(10) Residence in a community 

undergoing economic transitions 

(including communities impacted by 

the shift towards a net-zero economy or 

deindustrialization); or 

(11) Membership of an underserved 

community. 

(i) Underserved communities are 

populations sharing a particular 

characteristic, as well as geographic 

communities, that have been 

systematically denied a full opportunity 

to participate in aspects of economic, 

social, and civic life, as exemplified by 

the list in the definition of equity in 

paragraph (g)(11)(ii) of this section; and 

(ii) Equity is consistent and systematic 

fair, just, and impartial treatment of all 

individuals, including individuals who 

belong to underserved communities that 

have been denied such treatment, such 

as Black, Latino, and Indigenous and 

Native American persons, Asian 

Americans and Pacific Islanders, and 

other persons of color; members of 

religious minorities; lesbian, gay, 

bisexual, transgender, and queer 

(LGBTQ+) persons; persons with 

disabilities; persons who live in rural 

areas; and persons otherwise adversely 

affected by persistent poverty or 

inequality. 

(12) For purposes of this paragraph 

(g), a business is ‘‘owned and 

controlled’’ by applicable individuals: 

(i) If privately owned, 51 percent or 

more is owned by such individuals; 

(ii) If publicly owned, 51 percent 

more or of the stock is owned by such 

individuals; and 

(ii) In the case of a mutual institution, 

if a majority of the board of directors, 

account holders, and the community 

which the institution services is 

predominantly comprised of such 

individuals. 

(h) Veteran-owned or controlled 

business means a business that: 

(1) If privately owned, 51 percent or 

more is owned by veterans; 

(2) If publicly owned, 51 percent or 

more of the stock is owned by veterans; 

(3) In the case of a mutual institution, 

a majority of the board of directors, 

account holders, and the community 

which the institution services is 

predominantly comprised of veterans; 

or 

(4) One or more individuals who are 

veterans have the power to exercise a 

controlling influence over the business. 

(i) Women-owned or controlled 

business means a business that: 

(1) If privately owned, 51 percent or 

more is owned by females; 


khammond on DSKJM1Z7X2PROD with RULES
13634 Federal Register / Vol. 87, No. 47 / Thursday, March 10, 2022 / Rules and Regulations 

(2) If publicly owned, 51 percent or 

more of the stock is owned by females; 

(3) In the case of a mutual institution, 

a majority of the board of directors, 

account holders, and the community 

which the institution services is 

predominantly comprised of females; or 

(4) One or more individuals who are 

females have the power to exercise a 

controlling influence over the business. 

§ 35.28 Annual report requirements. 

By March 31 of each year beginning 

March 31, 2023, and ending with the 

report to be submitted on March 31, 

2028, each participating jurisdiction 

shall submit to the U.S. Department of 

the Treasury an annual report that 

includes, with respect to the previous 

calendar year, the following data for 

each business that receives a loan, 

investment, other credit or equity 

support, or technical assistance as part 

of the State Small Business Credit 

Initiative. For each business that 

receives a loan, investment, or other 

credit or equity support under the State 

Small Business Credit Initiative, the 

reported data shall be based on the 

ownership and control of the business 

immediately before the consummation 

of such loan, investment, or other credit 

or equity support-related transaction. 

For each business that receives 

technical assistance under the State 

Small Business Credit Initiative, the 

reported data shall be based on the 

ownership and control of the business at 

the time it receives such technical 

assistance. 

(a) Self-certified SEDI demographicsrelated business status. (1) Indicate 

which one or more of the following 

categories apply: Self-certified due to 

membership of a group that has been 

subjected to racial or ethnic prejudice or 

cultural bias within American society; 

self-certified due to gender; self-certified 

due to veteran status; self-certified due 

to limited English proficiency; selfcertified due to disability; self-certified 

due to long-term residence in an 

environment isolated from the 

mainstream of American society; selfcertified due to membership of a 

federally or state-recognized Indian 

Tribe; self-certified due to long-term 

residence in a rural community; selfcertified due to residence in a U.S. 

territory; self-certified due to residence 

in a community undergoing economic 

transitions (including communities 

impacted by the shift towards a net-zero 

economy or deindustrialization); selfcertified due to membership of an 

‘‘underserved community’’ as defined in 

§ 35.27(g)(11)(i); none of the preceding 

categories are applicable; prefer not to 

respond; or the business did not answer. 

(2) The participating jurisdiction must 

permit each business to identify all of 

the categories that apply in the 

definition of SEDI demographics-related 

business, and the participating 

jurisdiction must report to Treasury all 

categories identified by the business. 

(b) Minority-owned or controlled 

business status. Indicate whether the 

business is a minority-owned or 

controlled business. The participating 

jurisdiction must indicate yes; no; prefer 

not to respond; or that the business did 

not answer. 

(c) Women-owned or controlled 

business status. Indicate whether the 

business is a women-owned or 

controlled business. The participating 

jurisdiction must indicate yes; no; prefer 

not to respond; or that the business did 

not answer. 

(d) Veteran-owned or controlled 

business status. Indicate whether the 

business is a veteran-owned or 

controlled business. The participating 

jurisdiction must indicate yes; no; prefer 

not to respond; or that the business did 

not answer. 

(e) Race of principal owners. (1) For 

each principal owner of the business, 

indicate which one or more of the 

following race categories (including the 

Office of Management and Budget’s 

minimum categories and the relevant 

disaggregated categories) with which the 

principal owner identifies: American 

Indian or Alaska Native; Asian; Asian 

disaggregated categories: Indian, 

Chinese, Filipino, Japanese, Korean, 

Vietnamese, Asian (Other); Black or 

African American; Native Hawaiian or 

Other Pacific Islander; Native Hawaiian 

or Other Pacific Islander disaggregated 

categories: Guamanian or Chamorro, 

Native Hawaiian, Samoan, Pacific 

Islander (Other); White; prefer not to 

respond; or that the business did not 

answer. 

(2) The participating jurisdiction must 

permit each business to identify all of 

the Office of Management and Budget’s 

minimum categories and disaggregated 

categories in paragraph (e)(1) of this 

section with which each principal 

owner of the business identifies, and the 

participating jurisdiction must report to 

Treasury all categories identified by the 

business. 

(f) Ethnicity of principal owners. For 

each principal owner of the business, 

indicate which of the following 

ethnicity categories the principal owner 

identifies with: Hispanic or Latino/a; 

not Hispanic or Latino/a; prefer not to 

respond; or that the business did not 

answer. 

(g) Middle Eastern or North African 

Ancestry of principal owners. For each 

principal owner of the business, 

indicate which of the following ancestry 

categories the principal owner identifies 

with: Middle Eastern or North African; 

not Middle Eastern or North African; 

prefer not to respond; or that the 

business did not answer. 

(h) Gender of principal owners. For 

each principal owner of the business, 

indicate which of the following gender 

categories the principal owner identifies 

with: Female; male; nonbinary; prefer to 

self-describe, prefer not to respond; or 

that the business did not answer. If the 

‘‘prefer to self-describe’’ option is 

chosen, the participating jurisdiction 

must provide an option for the business 

to write in the gender and must report 

what the business writes in. 

(i) Sexual orientation of principal 

owners. For each principal owner of the 

business, indicate which of the 

following sexual orientation categories 

the principal owner identifies with: Gay 

or lesbian; bisexual; straight, that is, not 

gay, lesbian, or bisexual; something else; 

prefer not to respond; or that the 

business did not answer. 

(j) Veteran status of principal owners. 

For each principal owner of the 

business, indicate which of the 

following categories the principal owner 

identifies with: Veteran; non-veteran; 

prefer not to respond; or that the 

business did not answer. 

§ 35.29 Format. 

Participating jurisdictions must 

submit the information required under 

§ 35.28 using the formats specified from 

time to time on the U.S. Department of 

the Treasury’s website. 

Jacob Leibenluft, 

Chief Recovery Officer. 

[FR Doc. 2022–04843 Filed 3–9–22; 8:45 am] 

BILLING CODE P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R01–OAR–2021–0945; FRL–9487–02– 

R1] 

Air Plan Approval; New Hampshire; 

Conformity 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule. 

SUMMARY: The Environmental Protection 

Agency (EPA) is approving a State 

Implementation Plan (SIP) revision 

submitted by the State of New 

Hampshire. This submission revises 

previously approved transportation 

conformity criteria and procedures 


khammond on DSKJM1Z7X2PROD with RULES