Federal Register / Vol. 89, No. 243 / Wednesday, December 18, 2024 / Rules and Regulations 102701 

increased authorities permanent 

through this rulemaking. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act 

(‘‘RFA’’), 5 U.S.C. 601, et seq., requires 

administrative agencies to consider the 

effect of their actions on small 

businesses, small organizations, and 

small governmental jurisdictions. 

Pursuant to the RFA, when an agency 

issues a proposed rulemaking, it must 

prepare and make available for public 

comment an initial regulatory flexibility 

analysis to address the impact of the 

rule on small entities. SBA published a 

notice of proposed rulemaking on 

October 24, 2024, with comments due 

on or before November 25, 2024, and 

received 10 supportive comments and 

no opposing comment. Section 605 of 

the RFA allows an agency to certify a 

rule, in lieu of preparing an analysis, if 

the rulemaking is not expected to have 

a significant economic impact on a 

substantial number of small entities. 

The rulemaking will have a positive 

impact and will be beneficial for all ALP 

CDCs. By making permanent the 

temporary increased delegated 

authorities available under the ALP 

Express Pilot program this rulemaking 

will improve the approval time of 504 

loan applications for loans in an amount 

of $500,000 or less. 

Between FY 2022 (June 27, 2022) and 

FY 2025 (October 31, 2024) SBA 

approved 4,971 non-ALP Express loans 

of $500,000 or less, for a total dollar 

amount of $1,511,075,000. In the same 

period SBA approved 2,364 ALP 

Express and ALP Express Pilot loans for 

a total dollar amount of $1,283,386,000. 

The total number of approved 504 loans 

of $500,000 or less over this period was 

7,335 loans, in the amount of 

$2,794,461,000. Based on the total 504 

loans of $500,000 or less approved since 

ALP Express implementation, ALP 

CDCs have demonstrated success in 

processing and servicing loans using 

their increased ALP Express delegated 

authority. In addition, since ALP 

Express implementation, there have 

been no instances of ALP Express loans 

in default or in liquidation. 

SBA estimates the burden for 

completing SBA Form 1244, 

‘‘Application For Section 504 Loans’’, 

including time for reviewing 

instructions, gathering data and 

documentation needed, and completing 

and reviewing the form, is 2.5 hours. 

SBA will not need to change SBA Form 

1244 as a result of this rulemaking. SBA 

anticipates the final rule will increase 

the number of CDCs making loans of 

$500,000 or less and increase the 

number of approved 504 program loans 

as a whole. The ALP Express Pilot 

added no additional cost burdens to 

SBA, CDCs, or small business borrowers 

and there were minimal changes to SBA 

forms. SBA used existing staff to 

implement the Pilot. No further changes 

to SBA forms or staffing levels are 

anticipated to make permanent the ALP 

Express increased delegated authorities. 

Finally, the ALP Express Pilot cohort of 

loans had no defaults and no 

liquidations. SBA will continue to 

monitor the risk of this cohort to SBA’s 

504 portfolio going forward. 

With respect to the electronic 

Debenture change, SBA currently must 

appoint a Trustee to maintain physical 

possession of 504 Debentures for SBA 

and the Certificate holders. In practice, 

this requirement limits CDCs, and 

indirectly SBA borrowers, to executing 

only physical paper Debentures and 

prohibits the adoption of electronic 

Debentures and all their corresponding 

advantages and efficiencies. A revision 

to the requirements set forth in 13 CFR 

120.953(c) will authorize SBA to 

maintain possession of electronic (or 

digital) versions of 504 Debentures, 

thereby streamlining the loan closing 

process and lowering costs for CDCs and 

SBA borrowers 

Based on the foregoing, the 

Administrator of the SBA hereby 

certifies that this rulemaking will not 

have a significant economic impact on 

a substantial number of small 

businesses. The SBA invited comments 

from the public on the certification for 

the proposed rule. SBA did not receive 

any objections to its certification. 

Congressional Review Act 

This rule has been determined not to 

meet the criteria set forth in 5 U.S.C. 

804(2). SBA will submit the rule to 

Congress and the Government 

Accountability Office consistent with 

the Congressional Review Act’s 

requirements. 

List of Subjects in 13 CFR Part 120 

Administrative practice and 

procedure, Banks, Banking, Business 

and industry, Child support, 

Community development, Confidential 

business information, Credit, Disaster 

assistance, Employee benefit plans, 

Energy conservation, Environmental 

protection, Equal employment 

opportunity, Exports, Flood insurance, 

Flood plains, Foreign trade, Fraud, 

Individuals with disabilities, Lead 

poisoning, Loan programs—business, 

Loan programs—energy, Loan 

programs—veterans, Reporting and 

recordkeeping requirements, Small 

businesses, Solar energy, Trusts and 

trustees, Veterans. 

Accordingly, for the reasons stated in 

the preamble, SBA amends 13 CFR part 

120 as follows: 

PART 120—BUSINESS LOANS 

■ 1. The authority citation for part 120 

continues to read as follows: 

Authority: 15 U.S.C. 634(b)(6), (b)(7), 

(b)(14), (h), and note, 636(a), (h) and (m), 650, 

687(f), 696(3) and (7), and 697(a) and (e); sec. 

521, Pub. L. 114–113, 129 Stat. 2242; sec. 

328(a), Pub. L. 116–260, 134 Stat. 1182. 

■ 2. Amend § 120.802 by revising the 

definition of Debenture to read as 

follows: 

§ 120.802 Definitions. 

* * * * * 

Debenture is an obligation issued by 

a CDC and guaranteed 100 percent by 

SBA, the proceeds of which are used to 

fund a 504 loan. SBA, in its discretion, 

may authorize either paper or electronic 

Debentures. 

* * * * * 

■ 3. Amend § 120.842 by revising 

paragraph (a) and removing paragraph 

(d) to read as follows: 

§ 120.842 ALP Express Loans. 

(a) Definition. For the purposes of this 

section, an ALP Express Loan means a 

504 loan in an amount that is not more 

than $500,000 and which is 

underwritten, approved, closed and 

serviced using the authorities set forth 

in this section. 

* * * * * 

■ 4. Amend § 120.953 by revising 

paragraph (c) to read as follows: 

§ 120.953 Trustee. 

* * * * * 

(c) Hold in trust paper Debentures 

composing a Debenture Pool for the 

benefit of SBA and the Certificate 

holders; 

* * * * * 

Isabella Casillas Guzman, 

Administrator. 

[FR Doc. 2024–29706 Filed 12–17–24; 8:45 am] 

BILLING CODE 8026–09–P 

DEPARTMENT OF COMMERCE 

Office of the Secretary 

15 CFR Part 3 

[Docket No. 241210–0320] 

RIN 0605–AA64 

Implementation of HAVANA Act of 

2021 

AGENCY: Department of Commerce. 


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102702 Federal Register / Vol. 89, No. 243 / Wednesday, December 18, 2024 / Rules and Regulations 

ACTION: Final rule. 

SUMMARY: This rule implements the 

HAVANA Act of 2021 (the Act) for the 

Department of Commerce (Department). 

The Act provides the authority for the 

Secretary of Commerce and other 

agency heads to provide payments to 

certain individuals who have incurred 

qualifying injuries to the brain. The rule 

covers current and former Department 

employees and dependents of current or 

former employees. 

DATES: This final rule is effective 

December 18, 2024. 

ADDRESSES: Public comments and 

materials associated with this final rule 

are available through the Federal 

eRulemaking Portal at http://

www.Regulations.gov, Docket No. DOC– 

2023–0001. 

FOR FURTHER INFORMATION CONTACT: 

Charles Cutshall, Chief Privacy Officer, 

at 202–482–5735 or ccutshall@doc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

This rule implements the Helping 

American Victims Affected by 

Neurological Attacks (HAVANA) Act of 

2021, Public Law 117–46, codified in 22 

U.S.C. 2680b(i), which (among other 

things) required Department heads to 

prescribe regulations implementing the 

HAVANA Act for covered individuals. 

The Department published an interim 

final rule (IFR) on April 19, 2023 (88 FR 

24110), which laid out the process for 

HAVANA Act claimants to submit 

claims for payment for a qualifying 

injury to the brain suffered by current 

and former employees of the 

Department, and dependents of current 

or former employees. Under the IFR, the 

criteria for a qualifying injury to the 

brain are based on current medical 

practices related to brain injuries. 

Further, the injury must have occurred 

in connection with certain hostile acts 

or other incidents designated by the 

Secretary of State or the Secretary of 

Commerce. Further background is 

contained in the preamble to the IFR. 

The IFR provided for 30 days of public 

comment, and the Department provides 

responses to those comments below. 

Responses to Comments 

The Department received a total of 

eight public comment submissions in 

response to the IFR. Many comments 

provided input on multiple subjects. 

The Department received identical 

comment submissions from four 

commentors. All comments are 

addressed below. 

Several commentors focused on the 

Department’s definition of ‘‘qualifying 

injury to the brain.’’ First, numerous 

commentors urged the Department to 

adopt a broad definition of a ‘‘qualifying 

injury to the brain.’’ Under the IFR, 

individuals may be eligible for a 

HAVANA Act payment if they meet one 

of three criteria under the definition of 

‘‘qualifying injury to the brain’’: (1) An 

acute injury to the brain such as, but not 

limited to, a concussion, penetrating 

injury, or as the consequence of an 

event that leads to permanent 

alterations in brain function as 

demonstrated by confirming correlative 

findings on imaging studies (to include 

computed tomography scan (CT), or 

magnetic resonance imaging scan 

(MRI)), or electroencephalogram (EEG); 

or (2) A medical diagnosis of a traumatic 

brain injury (TBI) that required active 

medical treatment for 12 months or 

more; or (3) acute onset of new 

persistent, disabling neurologic 

symptoms as demonstrated by 

confirming correlative findings on 

imaging studies (to include CT or MRI), 

or EEG, or physical exam, or other 

appropriate testing, and that required 

active medical treatment for 12 months 

or more. 

The Department believes that this 

definition is broad and flexible enough 

to cover a wide range of brain injuries. 

The Department also notes that this 

definition is consistent with regulations 

issued by the State Department (Jan. 25, 

2023, at 88 FR 4722). Therefore, this 

final rule does not change the IFR 

definition of ‘‘qualifying injury to the 

brain.’’ 

Multiple comments requested that the 

Department remove the requirement 

that an individual receive 12 months of 

active medical treatment before they are 

eligible for a HAVANA Act payment. Of 

the three criteria for a qualifying brain 

injury, as set forth above, only (2) and 

(3) require 12 months of treatment. 

Under (1), 12 months of treatment is not 

required if an individual demonstrates 

permanent alterations in brain function 

with confirming correlative findings on 

imaging studies. The Department 

believes that the requirement for 12 

months of treatment, which is 

consistent with State Department 

regulations (Jan. 25, 2023, at 88 FR 

4722), demonstrates that an individual 

suffers from a chronic condition even if 

that individual does not demonstrate a 

permanent condition. Further, even if a 

covered individual has not yet received 

12-months or more of treatment as 

outlined in (2) or (3), the covered 

individual may nevertheless qualify at a 

later time if treatment lasts for twelve 

months or more. 

A number of comments asked that the 

Department establish an eligibility 

threshold for benefits that does not rest 

in whole or in part on the 

contemporaneous diagnosis of a brain 

injury. Instead, the commentors urged 

the Department to allow claimants to 

establish eligibility based on the 

presence of one or more of the 

symptoms that have come to be 

associated with Anomalous Head 

Injuries. The Department does not 

believe that it is appropriate to grant 

claims without appropriate medical 

documentation of a qualifying injury to 

the brain. The Department also notes 

that the standard that it uses to 

determine payment eligibility is 

consistent with the standard used by the 

Department of State. 

One comment asked that the 

Department recognize a ‘‘qualifying 

brain injury’’ even when an individual 

is receiving ongoing treatment; or the 

treatment was ‘‘split up’’ or the 

individual was diagnosed years later. 

Nothing in the IFR prevents the 

payment of compensation under such 

circumstances, provided that the 

definition of a ‘‘qualifying brain injury’’ 

is otherwise met. 

One comment focused on the date of 

the injury, expressing a belief that the 

Department should compensate 

individuals who suffered qualifying 

injuries prior to January 1, 2016. The 

Department is unable to accept this 

suggestion. The HAVANA Act specifies 

that payments are for injuries occurring 

on or after January 1, 2016. The 

Department does not have the authority 

to provide payments for injuries 

occurring prior to that date without an 

amendment to the HAVANA Act or 

additional legislative action. 

In addition to the comments 

discussed above concerning the 

Department’s definition of a ‘‘qualifying 

brain injury,’’ multiple comments urged 

that the final rule incorporate some 

mechanism to facilitate changes to the 

Department’s framework for 

determining eligibility for payment 

based on science or diagnostic 

breakthroughs. The Department declines 

to incorporate such a mechanism into 

this final rule but may conduct 

rulemaking in the future in accordance 

with existing laws and regulations, 

should circumstances so dictate. 

One comment urged the Department 

to provide reasons for a denial of 

requests for benefits to a claimant and 

develop a meaningful appeals process 

that employees can use in the event of 

a denial of benefits. Under the IFR, the 

Department already provides claimants 

who have been denied a payment with 

the reason for the denial. Additionally, 

the Department believes that its current 

appeals process, which provides for 


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Federal Register / Vol. 89, No. 243 / Wednesday, December 18, 2024 / Rules and Regulations 102703 

higher-level review of any denial, offers 

adequate and meaningful review of 

denials. 

One comment, seeking to ensure 

greater transparency about the 

Department’s decision-making process, 

raised concerns with the use of nonpublic information maintained by the 

State Department in the Department’s 

consultation process with the State 

Department. Consultation with the State 

Department may assist the Department 

in determining, in part, a claimant’s 

eligibility for benefits under the 

HAVANA Act. In particular, because a 

qualifying injury to the brain must have 

occurred in connection with war, 

insurgency, hostile act, terrorist activity, 

or other incidents designated by the 

Secretary of State or the Secretary of 

Commerce, consultation with the State 

Department may assist in determining 

whether an injury is connected to an 

incident designated by the Secretary of 

State. However, the State Department, 

not the Department of Commerce, 

determines whether such information is 

administratively controlled or made 

publicly available. 

Regulatory Analysis 

Administrative Procedure Act 

Because this rule is a matter relating 

to agency management or personnel or 

to public property, loans, grants, 

benefits, or contracts, it is exempt from 

the requirements of 5 U.S.C. 553. See 5 

U.S.C. 553(a)(2). Furthermore, because 

this final rule does not change the 

regulatory provisions previously 

implemented by the IFR, a delay in 

effective date is unnecessary and 

therefore the Department finds good 

cause for this rule to take effect 

immediately. Furthermore, because this 

final rule does not change the regulatory 

provisions previously implemented by 

the IFR, a delay in effective date is 

unnecessary and therefore the 

Department finds good cause for this 

rule to take effect immediately. See 5 

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

Regulatory Flexibility Act 

The Chief Counsel for Regulations for 

the Department certified that this 

rulemaking does not have a significant 

impact on a substantial number of small 

entities. This rule applies only to certain 

individuals who are current and former 

Department employees and family 

members who are eligible for payments 

as a result of certain injuries. The rule 

provides for payments to certain 

individuals and is not expected to 

impact any small entities. As a result, a 

regulatory flexibility analysis is not 

required under the Regulatory 

Flexibility Act (5 U.S.C. 601, et seq.), 

and none has been prepared. 

Executive Order 12866 and Executive 

Order 13563 

This rule has been determined to be 

a significant regulatory action under 

Executive Order 12866, as amended by 

Executive Order 14094. 

The Department has reviewed the rule 

to ensure its consistency with the 

regulatory philosophy and principles set 

forth in Executive Order 12866 and 

finds that the benefits of the rule (in 

providing mechanisms for individuals 

to obtain compensation for certain 

injuries) outweigh any costs to the 

public. The Department has also 

considered this rulemaking in light of 

Executive Order 13563 and affirms that 

this proposed regulation is consistent 

with the guidance therein. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501, 

et seq.) (PRA), the information 

collection associated with this final rule 

was approved by the Office of 

Management and Budget (OMB) under 

OMB Control Number 0690–0037. 

Notwithstanding any other provision of 

the law, no person is required to 

respond to, nor shall any person be 

subject to a penalty for failure to comply 

with, a collection of information subject 

to the requirements of the PRA, unless 

that collection of information displays a 

currently valid OMB Control Number. 

Accordingly, the Department of 

Commerce adopts the interim rule 

published April 19, 2023, at 88 FR 

24110, as final without change. 

Dated: December 13, 2024. 

Jeremy Pelter, 

Deputy Assistant Secretary for 

Administration, performing the non-exclusive 

functions and duties of the Chief Financial 

Officer and Assistant Secretary of Commerce 

for Administration, U.S. Department of 

Commerce. 

[FR Doc. 2024–29993 Filed 12–17–24; 8:45 am] 

BILLING CODE 3510–17–P 

DEPARTMENT OF COMMERCE 

15 CFR Part 29 

[Docket No. 241211–0323] 

RIN 0605–AA57 

Promoting the Rule of Law Through 

Improved Agency Guidance 

Documents Rescission 

AGENCY: Department of Commerce. 

ACTION: Final rule. 

SUMMARY: This final rule rescinds the 

Department’s regulations on guidance 

document procedures in accordance 

with a 2021 Executive order to revoke 

previous Executive orders concerning 

Federal regulation. 

DATES: This final rule is effective 

December 18, 2024. 

FOR FURTHER INFORMATION CONTACT: 

Xenia Kler, Office of the Assistant 

General Counsel for Legislation and 

Regulation, 202–482–5354, or via email 

xkler1@doc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

Executive Order 13891, ‘‘Promoting 

the Rule of Law Through Improved 

Agency Guidance Documents,’’ sought 

to ensure that when Federal agencies 

issue guidance documents, the agencies: 

do not treat those guidance documents 

alone as imposing binding obligations 

both in law and in practice, except as 

incorporated into a contract; take public 

input into account in formulating 

significant guidance documents; and 

make guidance documents readily 

available to the public. (84 FR 55235, 

Oct. 15, 2019). On September 28, 2020, 

the Department issued an interim final 

rule, ‘‘Promoting the Rule of Law 

Through Improved Agency Guidance 

Documents’’ to implement E.O. 13891. 

(85 FR 60694). The interim final rule 

established 15 CFR part 29 for guidance 

document procedures, procedures for 

withdrawal or modification requests 

from the public, and procedures for 

significant guidance documents. 

On January 20, 2021, President Biden 

issued E.O. 13992, ‘‘Revocation of 

Certain Executive Orders Concerning 

Federal Regulation,’’ revoking a number 

of Executive orders including E.O. 

13891. (86 FR 7049, Jan. 25, 2021). E.O. 

13992 directs agencies ‘‘to rescind any 

orders, rules, regulations, guidelines, or 

policies, or portions thereof, 

implementing or enforcing the revoked 

Executive orders.’’ 

After review and consideration, the 

Department concluded that its rule on 

guidance documents deprives the 

Department of necessary flexibility in 

determining when and how best to issue 

guidance based on particular facts and 

circumstances consistent with the 

policy directive in E.O. 13992. 

Therefore, the Department is issuing 

this final rule to rescind its regulations 

at 15 CFR part 29. The Department will 

continue to pursue ways to make its 

guidance documents more accessible to 

the public. Additionally, in accordance 

with M–09–13, ‘‘Guidance for 

Regulatory Review,’’ the Office of 

Management and Budget will continue 


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