Federal Register / Vol. 85, No. 124 / Friday, June 26, 2020 / Rules and Regulations 38301 the applicant’s or co-applicant’s day delayed effective date for SMALL BUSINESS ADMINISTRATION ethnicity, race, sex, and age as ‘‘not substantive rules under section 553(d) applicable’’ if the applicant or co- of the Administrative Procedure Act.7 13 CFR Part 120 applicant is not a natural person. For Therefore, this rule is effective on June [Docket No. SBA–2020–0039] these reasons, the Bureau will not count 26, 2020, the same date that it is first-lien originations reported in HMDA published in the Federal Register. RIN 3245–AH53 data for which both the applicant’s and III. Regulatory Requirements co-applicant’s ethnicity, race, sex, and Business Loan Program Temporary age all are reported as follows: (1) The This rule articulates the Bureau’s Changes; Paycheck Protection applicant’s ethnicity is reported as ‘‘Not interpretation of Regulation Z and TILA. Program—Additional Eligibility applicable’’ (HMDA Code 4); (2) the Revisions to First Interim Final Rule applicant’s race is reported as ‘‘Not As an interpretive rule, it is exempt applicable’’ (HMDA Code 7); (3) the from the notice-and-comment AGENCY: U.S. Small Business applicant’s sex is reported as ‘‘Not rulemaking requirements of the Administration. 8 applicable’’ (HMDA Code 4); (4) the Administrative Procedure Act. Because ACTION: Interim final rule. applicant’s age is reported as ‘‘Not no notice of proposed rulemaking is applicable’’ (HMDA Code 8888); (5) the required, the Regulatory Flexibility Act SUMMARY: On April 2, 2020, the U.S. co-applicant’s ethnicity is reported as does not require an initial or final Small Business Administration (SBA) ‘‘Not applicable’’ (HMDA Code 4) or regulatory flexibility analysis.9 posted on its website an interim final ‘‘No co-applicant’’ (HMDA Code 5); (6) The Bureau has determined that this rule relating to the implementation of the co-applicant’s race is reported as interpretive rule does not impose any sections 1102 and 1106 of the Coronavirus Aid, Relief, and Economic ‘‘Not applicable’’ (HMDA Code 7) or new requirements or revise any existing Security Act (CARES Act or the Act) ‘‘No co-applicant’’ (HMDA Code 8); (7) recordkeeping, reporting, or disclosure (published in the Federal Register on the co-applicant’s sex is reported as requirements on covered entities or ‘‘Not applicable’’ (HMDA Code 4) or April 15, 2020). Section 1102 of the Act members of the public that would be temporarily adds a new product, titled ‘‘No co-applicant’’ (HMDA Code 5); and collections of information requiring (8) the co-applicant’s age is reported as the ‘‘Paycheck Protection Program,’’ to approval by the Office of Management ‘‘Not applicable’’ (HMDA Code 8888) or the U.S. Small Business and Budget under the Paperwork ‘‘No co-applicant’’ (HMDA Code 9999). Administration’s (SBA’s) 7(a) Loan Reduction Act.10 The underserved counties list, using Program. Subsequently, SBA issued a the HMDA data described above, can be IV. Congressional Review Act number of interim final rules found on the Bureau’s public website at implementing the Paycheck Protection https://www.consumerfinance.gov/ Pursuant to the Congressional Review Program. On June 12, 2020, SBA posted policy-compliance/guidance/mortgage- Act,11 the Bureau will submit a report on its website an interim final rule resources/rural-and-underserved- containing this interpretive rule and revising the interim final rule published counties-list/, where, consistent with other required information to the United in the Federal Register on April 15, past practice, the list is made available States Senate, the United States House 2020 by changing the eligibility along with historical lists. of Representatives, and the Comptroller requirement related to felony convictions of applicants or owners of C. Legal Authority General of the United States prior to the rule’s published effective date. The the applicant. This interim final rule The Bureau is issuing this interpretive Office of Information and Regulatory further revises SBA’s interim final rule rule based on its authority to interpret Affairs has designated this interpretive published in the Federal Register on Regulation Z, including under section rule as not a ‘‘major rule’’ as defined by April 15, 2020, by further changing that eligibility requirement. 1022(b)(1) of the Dodd-Frank Act, which 5 U.S.C. 804(2). authorizes guidance as may be DATES: necessary or appropriate to enable the V. Signing Authority Effective date: The provisions in this Bureau to administer and carry out the interim final rule are effective June 24, purposes and objectives of Federal The Director of the Bureau, having 2020. consumer financial laws.5 reviewed and approved this document, Comment date: Comments must be By operation of TILA section 130(f), is delegating the authority to received on or before July 27, 2020. electronically sign this document to no provision of TILA sections 130, ADDRESSES: You may submit comments, Laura Galban, a Bureau Federal Register 108(b), 108(c), 108(e), or 112 imposing identified by number SBA–2020–0039, any liability applies to any act done or Liaison, for purposes of publication in through the Federal eRulemaking Portal: omitted in good faith in conformity with the Federal Register. http://www.regulations.gov. Follow the this interpretive rule, notwithstanding Dated: June 23, 2020. instructions for submitting comments. that after such act or omission has Laura Galban, SBA will post all comments on occurred, the interpretive rule is www.regulations.gov. If you wish to amended, rescinded, or determined by Federal Register Liaison, Bureau of Consumer Financial Protection. submit confidential business judicial or other authority to be invalid information (CBI) as defined in the User 6 [FR Doc. 2020–13801 Filed 6–25–20; 8:45 am] for any reason. Notice at www.regulations.gov, please BILLING CODE 4810–AM–P II. Effective Date send an email to [email protected]. Highlight the information that you Because this rule is solely consider to be CBI and explain why you interpretive, it is not subject to the 30- 7 5 U.S.C. 553(d). believe SBA should hold this 8 5 U.S.C. 553(b). information as confidential. SBA will 5 12 U.S.C. 5512(b)(1). The relevant provisions of 9 Regulation Z form part of Federal consumer 5 U.S.C. 603(a), 604(a). review the information and make the financial law. 12 U.S.C. 5481(12)(O), (14). 10 44 U.S.C. 3501 et seq. final determination whether it will 6 15 U.S.C. 1640(f). 11 5 U.S.C. 801 et seq. publish the information. VerDate Sep<11>2014 16:24 Jun 25, 2020 Jkt 250001 PO 00000 Frm 00029 Fmt 4700 Sfmt 4700 E:\FR\FM\26JNR1.SGM 26JNR1 jbell on DSKJLSW7X2PROD with RULES 38302 Federal Register / Vol. 85, No. 124 / Friday, June 26, 2020 / Rules and Regulations FOR FURTHER INFORMATION CONTACT: A payments, and the forgiveness of PPP interim final rule posted on SBA’s Call Center Representative at 833–572– loans. website on June 12, 2020 and published 0502, or the local SBA Field Office; the in the Federal Register on June 18, 2020 II. Comments and Immediate Effective list of offices can be found at https:// (85 FR 36717). The First Interim Final Date www.sba.gov/tools/local-assistance/ Rule, as amended, should be interpreted districtoffices. This interim final rule is effective consistent with the frequently asked without advance notice and public questions (FAQs) regarding the PPP that SUPPLEMENTARY INFORMATION: comment because section 1114 of the are posted on SBA’s website 1 and the I. Background Information CARES Act authorizes SBA to issue other interim final rules issued 2 On March 13, 2020, President Trump regulations to implement Title I of the regarding the PPP. Act without regard to notice declared the ongoing Coronavirus 1. Changes to the First Interim Final requirements. In addition, SBA has Disease 2019 (COVID–19) pandemic of Rule sufficient severity and magnitude to determined that there is good cause for Eligibility Requirements warrant an emergency declaration for all dispensing with advance public notice states, territories, and the District of and comment on the grounds that that The First Interim Final Rule provided, Columbia. With the COVID–19 it would be contrary to the public among other things, that a PPP loan will emergency, many small businesses interest. Specifically, advance public not be approved if an owner of 20 nationwide are experiencing economic notice and comment would defeat the percent or more of the equity of the hardship as a direct result of the purpose of this interim final rule given applicant has been convicted of a felony Federal, State, and local public health that SBA’s authority to guarantee PPP within the last five years. On June 12, measures that are being taken to loans expires on June 30, 2020. These 2020, the First Interim Final Rule was minimize the public’s exposure to the same reasons provide good cause for amended after the Administrator, in virus. These measures, some of which SBA to dispense with the 30-day consultation with the Secretary of the are government-mandated, have been delayed effective date provided in the Treasury (the Secretary), determined implemented nationwide and include Administrative Procedure Act (APA). that a shorter timeframe for felonies that the closures of restaurants, bars, and Although this interim final rule is do not involve fraud, bribery, gyms. In addition, based on the advice effective on or before date of filing, embezzlement, or a false statement in a of public health officials, other comments are solicited from interested loan application or an application for measures, such as keeping a safe members of the public on all aspects of federal financial assistance is more distance from others or even stay-at- the interim final rule, including section consistent with Congressional intent to home orders, have been implemented, III below.