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regulatory flexibility analysis, when through June 30, 2020, or until funds existing loan programs and establish a among other things the agency for good made available for this purpose are new loan program to assist small cause finds that notice and public exhausted. businesses nationwide adversely procedure are impracticable, Comment date: Comments must be impacted by the COVID–19 emergency. unnecessary, or contrary to the public received on or before June 3, 2020. Section 1102 of the CARES Act interest. SBA Office of Advocacy guide: ADDRESSES: You may submit comments, temporarily permits SBA to guarantee How to Comply with the Regulatory identified by number SBA–2020–0023 100 percent of 7(a) loans under a new Flexibility Act, Ch.1. p.9. Accordingly, through the Federal eRulemaking Portal: program titled the ‘‘Paycheck Protection SBA is not required to conduct a http://www.regulations.gov. Follow the Program.’’ Section 1106 of the CARES regulatory flexibility analysis. instructions for submitting comments. Act provides for forgiveness of up to the full principal amount of qualifying Jovita Carranza, SBA will post all comments on www.regulations.gov. If you wish to loans guaranteed under the Paycheck Administrator. submit confidential business Protection Program. On April 24, 2020, [FR Doc. 2020–09398 Filed 5–1–20; 8:45 am] information (CBI) as defined in the User the President signed the Paycheck BILLING CODE P Notice at www.regulations.gov, please Protection Program and Health Care send an email to [email protected]. Enhancement Act (Pub. L. 116–139), Highlight the information that you which provided additional funding and SMALL BUSINESS ADMINISTRATION consider to be CBI and explain why you authority for the Paycheck Protection Program. 13 CFR Part 120 believe SBA should hold this information as confidential. SBA will As described below, to preserve the [Docket Number SBA–2020–0023] review the information and make the limited resources available to the PPP program, this interim final rule limits RIN 3245–AH39 final determination whether it will publish the information. the aggregate amount of PPP loans that any single corporate group may receive. Business Loan Program Temporary FOR FURTHER INFORMATION CONTACT: A This interim final rule also provides Changes; Paycheck Protection Call Center Representative at 833–572– additional guidance regarding lenders Program—Requirements—Corporate 0502, or the local SBA Field Office; the eligible to make PPP loans. Groups and Non-Bank and Non- list of offices can be found at https:// Insured Depository Institution Lenders www.sba.gov/tools/local-assistance/ II. Comments and Immediate Effective AGENCY: U. S. Small Business districtoffices. Date Administration. SUPPLEMENTARY INFORMATION: The intent of the CARES Act is that SBA provide relief to America’s small ACTION: Interim final rule. I. Background Information businesses expeditiously. This intent, SUMMARY: On April 2, 2020, the U.S. On March 13, 2020, President Trump along with the dramatic decrease in Small Business Administration (SBA) declared the ongoing Coronavirus economic activity nationwide, provides posted an interim final rule announcing Disease 2019 (COVID–19) pandemic of good cause for SBA to dispense with the the implementation of the Coronavirus sufficient severity and magnitude to 30-day delayed effective date provided Aid, Relief, and Economic Security Act warrant an emergency declaration for all in the Administrative Procedure Act. (CARES Act). The CARES Act States, territories, and the District of Specifically, it is critical to meet temporarily adds a new program, titled Columbia. With the COVID–19 lenders’ and borrowers’ need for clarity the ‘‘Paycheck Protection Program,’’ to emergency, many small businesses concerning program requirements as the SBA’s 7(a) Loan Program. The nationwide are experiencing economic rapidly as possible because the last day CARES Act also provides for forgiveness hardship as a direct result of the eligible borrowers can apply for and of up to the full principal amount of Federal, State, tribal, and local public receive a loan is June 30, 2020. qualifying loans guaranteed under the health measures that are being taken to This interim final rule supplements Paycheck Protection Program (PPP). The minimize the public’s exposure to the previous regulations and guidance on PPP is intended to provide economic virus. These measures, some of which certain important, discrete issues. The relief to small businesses nationwide are government-mandated, are being immediate effective date of this interim adversely impacted by the Coronavirus implemented nationwide and include final rule will benefit lenders so that Disease 2019 (COVID–19). SBA posted the closures of restaurants, bars, and they can swiftly close and disburse additional interim final rules on April 3, gyms. In addition, based on the advice loans to small businesses. This interim 2020, April 14, 2020, April 24, 2020, of public health officials, other final rule is effective without advance and April 28, 2020, and the Department measures, such as keeping a safe notice and public comment because of the Treasury posted an additional distance from others or even stay-at- section 1114 of the CARES Act interim final rule on April 28, 2020. home orders, are being implemented, authorizes SBA to issue regulations to This interim final rule supplements the resulting in a dramatic decrease in implement Title I of the CARES Act previously posted interim final rules by economic activity as the public avoids without regard to notice requirements. limiting the amount of PPP loans that malls, retail stores, and other This rule is being issued to allow for any single corporate group may receive businesses. immediate implementation of this and provides additional guidance on the On March 27, 2020, the President program. Although this interim final criteria for non-bank lender signed the Coronavirus Aid, Relief, and rule is effective immediately, comments participation in the PPP, and requests Economic Security Act (the CARES Act) are solicited from interested members of public comment. (Pub. L. 116–136) to provide emergency the public on all aspects of this interim DATES: assistance and health care response for final rule, including section III below. Effective date: This rule is effective individuals, families, and businesses These comments must be submitted on May 4, 2020. affected by the coronavirus pandemic. or before June 3, 2020. SBA will Applicability date: This interim final The Small Business Administration consider these comments and the need rule applies to applications submitted (SBA) received funding and authority for making any revisions as a result of under the Paycheck Protection Program through the CARES Act to modify these comments.

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III. Paycheck Protection Program It is the responsibility of an applicant addition to satisfying certain other Requirements for Corporate Groups for a PPP loan to notify the lender if the requirements. To ensure broad and and Non-Bank and Non-Insured applicant has applied for or received diverse lender participation, SBA and Depository Institution Lenders PPP loans in excess of the amount the Department of the Treasury have permitted by this interim final rule and also determined that such lenders may Overview withdraw or request cancellation of any be approved to make PPP loans if the The CARES Act was enacted to pending PPP loan application or lender has performed the required provide immediate assistance to approved PPP loan not in compliance volume of any one of these three individuals, families, and organizations with the limitation set forth in this rule. functions (originating, maintaining, or affected by the COVID–19 emergency. Failure by the applicant to do so will be servicing). Among the provisions contained in the regarded as a use of PPP funds for b. Can a non-bank lender that does CARES Act are provisions authorizing unauthorized purposes, and the loan not meet the $50 million threshold in SBA to temporarily guarantee loans will not be eligible for forgiveness. A the First Interim Final Rule for under the Paycheck Protection Program lender may rely on an applicant’s originating, maintaining, and servicing (PPP). Loans under the PPP will be 100 representation concerning the loans or receivables apply to be a lender percent guaranteed by SBA, and the full applicant’s compliance with this in the PPP? Yes. As described in the First Interim principal amount of the loans and any limitation. Final Rule, a non-bank lender may be accrued interest may qualify for loan The Administrator, in consultation eligible to be a lender in the PPP if the forgiveness. Additional information with the Secretary, determined that lender has originated, maintained, and about the PPP is available in SBA’s first limiting the amount of PPP loans that a serviced more than $50 million in PPP interim final rule (85 FR 20811) single corporate group may receive will business loans or other commercial (the First Interim Final Rule), second promote the availability of PPP loans to the largest possible number of financial receivables during a 12-month interim final rule (85 FR 20817), third period in the past 36 months, in interim final rule (85 FR 21747), and borrowers, consistent with the CARES Act. The Administrator has concluded addition to satisfying certain other fourth interim final rule (85 FR 23450), requirements. In addition, SBA and the in an interim final rule issued by the that a limitation of $20,000,000 strikes an appropriate balance between broad Department of the Treasury have Department of the Treasury, which was determined that a non-bank lender posted on April 28, 2020, and in SBA’s availability of PPP loans and program resource constraints. meets the criteria to be a PPP lender and fifth interim final rule, which was may be approved to make PPP loans if posted on April 28, 2020. SBA’s affiliation rules, which relate to an applicant’s eligibility for PPP loans, it has originated, maintained, or 1. Can a single corporate group receive and any waiver of those rules under the serviced more than $10 million in unlimited PPP loans? CARES Act, continue to apply business loans or other commercial independent of this limitation. financial receivables during a 12-month No. To preserve the limited resources Businesses are subject to this limitation period in the past 36 months, if the non- available to the PPP program, and in even if the businesses are eligible for the bank lender is (1) a community light of the previous lapse of PPP waiver-of-affiliation provision under the development financial institution (other appropriations and the high demand for CARES Act or are otherwise not than a federally insured bank or PPP loans, businesses that are part of a considered to be affiliates under SBA’s federally insured credit union) or (2) a single corporate group shall in no event affiliation rules.3 majority minority-, women-, or veteran/ receive more than $20,000,000 of PPP This rule has no effect on lender military-owned lender. Consistent with loans in the aggregate.1 For purposes of obligations required to obtain an SBA the First Interim Final Rule, a lender is this limit, businesses are part of a single guarantee for PPP loans. ineligible if it currently is designated in corporate group if they are majority Troubled Condition by its primary owned, directly or indirectly, by a 2. Non-Bank and Non-Insured federal regulator or is subject to a formal common parent. This limitation shall be Depository Institution Lenders enforcement action with its primary immediately effective with respect to a. Can a non-bank lender or non- federal regulator that addresses unsafe any loan that has not yet been fully insured depository institution be or unsound lending practices. An 2 disbursed as of April 30, 2020. approved to be a lender in the PPP if it applicant that meets this $10 million has originated, maintained, or threshold but does not meet the $50 1 The Administrator has authority to issue ‘‘such serviced—but not performed all three of million threshold that is otherwise rules and regulations as [the Administrator] deems these functions for—more than $50 applicable should leave blank the necessary to carry out the authority vested in him attestation on CARES Act Section 1102 by or pursuant to’’ 15 U.S.C. Chapter 14A, million in business loans or other including authorities established under section commercial financial receivables during Lender Agreement—Non-Bank and Non- 1102 of the CARES Act. Section 1102 provides that a 12-month period in the past 36 Insured Depository Institution Lenders the Administrator ‘‘may’’ guarantee loans under the months? (SBA Form 3507) related to the $50 terms and conditions set forth in section 7(a) of the million threshold and instead include Small Business Act, and those conditions specify a Yes. The First Interim Final Rule ‘‘maximum’’—but not a minimum—loan amount. provides that a non-bank lender or non- with its application an attestation See 15 U.S.C. 636(a)(36)(B), (E); see also CARES Act insured depository institution may be stating: ‘‘Lender attests that it has section 1106(k) (authorizing SBA to issue eligible to be a lender in the PPP if the originated, maintained, or serviced more regulations to govern loan forgiveness). To preserve than $10 million in business loans or finite appropriations for PPP loans and ensure lender has originated, maintained, and broad access for eligible borrowers, the serviced more than $50 million in other commercial financial receivables Administrator, in consultation with the Secretary, business loans or other commercial during a consecutive 12 month period has determined that an aggregate limitation on financial receivables during a 12-month in the past 36 months.’’ loans to a single corporate group is necessary and appropriate. period in the past 36 months, in 3. Additional Information 2 For loans that have been partially disbursed, this limitation applies to any additional 3 See Section 7(a)(36)(D)(iv) of the Small Business SBA may provide further guidance, if disbursement that would cause the total PPP loans Act (15 U.S.C. 636(a)(36)(D)(iv), as added by the needed, through SBA notices that will to a single corporate group to exceed $20 million. CARES Act; 13 CFR 121.103(b). be posted on SBA’s website at

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www.sba.gov. Questions on the describe the impact of a rulemaking on DEPARTMENT OF TRANSPORTATION Paycheck Protection Program may be small entities by providing a regulatory directed to the Lender Relations impact analysis. Such analysis must Federal Aviation Administration Specialist in the local SBA Field Office. address the consideration of regulatory The local SBA Field Office may be options that would lessen the economic 14 CFR Parts 21, 61, 63, 65, 91, 107, found at https://www.sba.gov/tools/ effect of the rule on small entities. The 125, and 141 local-assistance/districtoffices. RFA defines a ‘‘small entity’’ as (1) a [Docket No.: FAA–2020–0446; Amdt. No(s). Compliance With Executive Orders proprietary firm meeting the size Amendment numbers 21–102, 61–145, 63– 12866, 12988, 13132, 13563, and 13771, standards of the Small Business 43, 65–60, 91–357, 107–3, 125–69, and 141– the Paperwork Reduction Act (44 Administration (SBA); (2) a nonprofit 21] U.S.C. Ch. 35), and the Regulatory organization that is not dominant in its RIN 2120–AL63 Flexibility Act (5 U.S.C. 601–612) field; or (3) a small government jurisdiction with a population of less Relief for Certain Persons and Executive Orders 12866, 13563, and Operations During the Coronavirus 13771 than 50,000. 5 U.S.C. 601(3)–(6). Except for such small government jurisdictions, Disease 2019 (COVID–19) Outbreak This interim final rule is neither State nor local governments are economically significant for the AGENCY: Federal Aviation ‘‘small entities.’’ Similarly, for purposes purposes of Executive Orders 12866 and Administration (FAA), Department of of the RFA, individual persons are not 13563, and is considered a major rule Transportation (DOT). under the Congressional Review Act. small entities. The requirement to ACTION: Final rule. SBA, however, is proceeding under the conduct a regulatory impact analysis SUMMARY: emergency provision at Executive Order does not apply if the head of the agency This Special Federal Aviation 12866 Section 6(a)(3)(D) based on the ‘‘certifies that the rule will not, if Regulation (SFAR) provides regulatory need to move expeditiously to mitigate promulgated, have a significant relief to persons who have been unable the current economic conditions arising economic impact on a substantial to comply with certain training, recent from the COVID–19 emergency. This number of small entities.’’ 5 U.S.C. experience, testing, and checking rule’s designation under Executive 605(b). The agency must, however, requirements due to the Coronavirus Order 13771 will be informed by public publish the certification in the Federal Disease 2019 (COVID–19) outbreak. This comment. Register at the time of publication of the relief allows operators to continue to rule, ‘‘along with a statement providing use pilots and other crewmembers in Executive Order 12988 support of essential operations during the factual basis for such certification.’’ this period. Additionally, this SFAR SBA has drafted this rule, to the If the agency head has not waived the provides regulatory relief to certain extent practicable, in accordance with requirements for a regulatory flexibility the standards set forth in section 3(a) persons and pilot schools unable to analysis in accordance with the RFA’s and 3(b)(2) of Executive Order 12988, to meet duration and renewal waiver provision, and no other RFA minimize litigation, eliminate requirements due to the outbreak. This ambiguity, and reduce burden. The rule exception applies, the agency must rule also allows certain air carriers and has no preemptive or retroactive effect. prepare the regulatory flexibility operators to fly temporary overflow analysis and publish it in the Federal aircraft, a need resulting from the Executive Order 13132 Register at the time of promulgation or, outbreak, to a point of storage pursuant SBA has determined that this rule if the rule is promulgated in response to to a special flight permit with a will not have substantial direct effects an emergency that makes timely continuing authorization. on the States, on the relationship compliance impracticable, within 180 DATES: Effective April 30, 2020 through between the National Government and days of publication of the final rule. 5 March 31, 2021. the States, or on the distribution of U.S.C. 604(a), 608(b). Rules that are ADDRESSES: For information on where to power and responsibilities among the exempt from notice and comment are obtain copies of rulemaking documents various layers of government. Therefore, also exempt from the RFA requirements, and other information related to this SBA has determined that this rule has including conducting a regulatory final rule, see ‘‘How to Obtain no federalism implications warranting flexibility analysis, when among other Additional Information’’ in the preparation of a federalism assessment. things the agency for good cause finds SUPPLEMENTARY INFORMATION section of Paperwork Reduction Act, 44 U.S.C. that notice and public procedure are this document. Chapter 35 impracticable, unnecessary, or contrary FOR FURTHER INFORMATION CONTACT: For SBA has determined that this rule to the public interest. SBA Office of technical questions concerning this will not impose new or modify existing Advocacy guide: How to Comply with action for pilots, contact Craig Holmes, recordkeeping or reporting requirements the Regulatory Flexibility Act, Ch.1. p.9. General Aviation and Commercial under the Paperwork Reduction Act. Accordingly, SBA is not required to Division; Federal Aviation conduct a regulatory flexibility analysis. Administration, 800 Independence Regulatory Flexibility Act (RFA) Avenue SW, Washington, DC 20591; The Regulatory Flexibility Act (RFA) Jovita Carranza, telephone (202) 267–1100; email 9-AVS- generally requires that when an agency Administrator. AFS800-COVID19-Correspondence@ issues a proposed rule, or a final rule [FR Doc. 2020–09576 Filed 5–1–20; 8:45 am] faa.gov. For technical questions pursuant to section 553(b) of the APA or BILLING CODE P concerning this action for mechanics another law, the agency must prepare a and special flight permits, contact Kevin regulatory flexibility analysis that meets Morgan, Aircraft Maintenance Division; the requirements of the RFA and Federal Aviation Administration, 800 publish such analysis in the Federal Independence Avenue SW, Washington, Register. 5 U.S.C. 603, 604. Specifically, DC 20591; telephone (202) 267–1675; the RFA normally requires agencies to email [email protected]. For

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