Unknown. Interim final rule

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2020-06-19.xml --- 85 119 Friday, June 19, 2020 Contents Agriculture Agriculture Department See Forest Service Alcohol Tobacco Firearms Alcohol, Tobacco, Firearms, and Explosives Bureau NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Reactivation Suitability Request, 37111-37112 2020-13285 Centers Disease Centers for Disease Control and Prevention NOTICES Hazardous Drugs: Draft NIOSH List of Hazardous Drugs in Healthcare Settings, 2020;

Procedures; and Risk Management Information, 37101 2020-13278 Centers Medicare Centers for Medicare & Medicaid Services RULES Nondiscrimination in Health and Health Education Programs or Activities: Delegation of Authority, 37160-37248 2020-11758 PROPOSED RULES Medicaid Program: Establishing Minimum Standards in Medicaid State Drug Utilization Review and Supporting Value-Based Purchasing for Drugs Covered in Medicaid, Revising Medicaid Drug Rebate and Third Party Liability Requirements, 37286-37322 2020-12970 Coast Guard Coast Guard RULES Safety Zones:

Illinois River, Miles 10 to 187, Grafton, IL to Peoria, IL, 37011-37013 2020-12227 PROPOSED RULES Shipping Safety Fairways Along the Atlantic Coast, 37034-37040 2020-12910 Commerce Commerce Department See Foreign-Trade Zones Board See International Trade Administration See National Oceanic and Atmospheric Administration See Patent and Trademark Office Committee for Purchase Committee for Purchase From People Who Are Blind or Severely Disabled NOTICES Procurement List; Additions and Deletions, 37073-37074 2020-13229 2020-13230 Defense Department Defense Department See Engineers Corps NOTICES Charter Renewal:

Department of Defense Federal Advisory Committees, 37074-37075 2020-13256 Education Department Education Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Eligibility of Students at Institutions of Higher Education for Funds under the CARES Act, 37081-37082 2020-13246 Federal Family Educational Loan Program—Administrative Requirements for States, Not-For-Profit Lenders, and Eligible Lenders Trustees, 37078-37079 2020-13251 Impact Aid Discretionary Construction Grant Program, 37078 2020-13237 Measuring Educational Gain in the National Reporting System for Adult Education, 37080-37081 2020-13233 National Center for Education Evaluation System Clearance for Design and Field Studies 2020-2023, 37080 2020-13263 Report of Children Receiving Early Intervention Services in Accordance with Part C;

Report of Program Settings in Accordance with Part C; Report on Infants and Toddlers Exiting Part C, 37081 2020-13200 State Lead Agency Record Keeping and Reporting Requirements under Part C of the Individuals with Disabilities Education Act, 37082-37083 2020-13199 U.S. Department of Education Supplemental Information for the SF-424 Form, 37079-37080 2020-13265 Investigation and Record Requests, 37083-37086 2020-13195 Employment and Training Employment and Training Administration NOTICES Change in Status of the Extended Benefit Program:

Alabama, Arkansas, Colorado, Maryland, Missouri, North Dakota, Oklahoma, Tennessee, Texas, and Virginia, 37112-37113 2020-13175 Florida, Indiana, Kansas, and Virgin Islands, 37112 2020-13227 Washington DC, Delaware, Idaho, and South Carolina, 37113 2020-13226 Energy Department Energy Department See Federal Energy Regulatory Commission See Southeastern Power Administration NOTICES Application to Export Electric Energy: Fuel Market, LP, 37086 2020-13234 Rainbow Energy Marketing Corp., 37089 2020-13236 Response to Defense Nuclear Facilities Safety Board Recommendation 2020-1, Nuclear Safety Requirements, 37086-37089 2020-13238 Engineers Engineers Corps NOTICES Intent to Prepare an Integrated Feasibility Report and Environmental Impact Statement for the St.

Tammany Parish, Louisiana Feasibility Study, 37075-37076 2020-13239 Request for Applications: Stakeholder Representative Members of the Missouri River Recovery Implementation Committee, 37076-37078 2020-13240 Environmental Protection Environmental Protection Agency RULES Tolerance Exemption: Formic Acid and Sodium Formate, 37013-37019 2020-13030 PROPOSED RULES Increasing Consistency and Transparency in Considering Benefits and Costs in the Clean Air Act Rulemaking Process; Public Hearing, 37057-37059 2020-13222 NOTICES Environmental Impact Statements;

Availability, etc.: Weekly Receipt, 37095-37096 2020-13252 Pesticide Product Registration: Applications for New Active Ingredients, 37096-37097 2020-13275 Applications for New Uses, 37094-37095 2020-13272 Federal Aviation Federal Aviation Administration RULES Airworthiness Directives: General Electric Company Turbofan Engines, 37000-37003 2020-13126 Amendment of Class D Airspace: Jacksonville NAS, FL, and Amendment of Class D and Class E Airspace; Mayport, FL, 37003-37004 2020-13134 PROPOSED RULES Airworthiness Directives:

The Boeing Company Airplanes, 37031-37033 2020-13198 Removal of Air Traffic Service Route: V-482; Alaska, 37033-37034 2020-13132 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Certification Procedures for Products and Parts, 37149 2020-13259 Federal Communications Federal Communications Commission RULES Promoting Telehealth in Rural America, 37022-37023 2020-12844 NOTICES 911 Reliability, 37098-37100 2020-13189 Meetings: Task Force for Reviewing the Connectivity and Technology Needs of Precision Agriculture in the United States, 37097-37098 2020-13261 Relocation Payment Clearinghouse Request for Proposal, Selection Criteria, and Application Deadlines in 3.7-4.2 GHz Band Transition:

Wireless Telecommunications Bureau, 37097 2020-13213 Federal Emergency Federal Emergency Management Agency RULES Suspension of Community Eligibility, 37019-37022 2020-12661 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: FEMA Public Assistance Customer Satisfaction Surveys, 37102-37103 2020-13274 Final Flood Hazard Determinations, 37103 2020-13281 Federal Energy Federal Energy Regulatory Commission NOTICES Combined Filings, 37090-37092 2020-13244 2020-13245 Effectiveness of Exempt Wholesale Generator Status:

Frontier Windpower II, LLC; Coyote Wind, LLC; Roundhouse Renewable Energy, LLC; et al., 37092 2020-13242 Initial Market-Based Rate Filings Including Requests for Blanket Section 204 Authorizations: Ellwood Power, LLC, 37090 2020-13243 Ormond Beach Power, LLC, 37090 2020-13241 Fish Fish and Wildlife Service NOTICES Draft Habitat Conservation Plan and Draft Categorical Exclusion: 12 Rancho San Carlos (Ocho West) Project, Monterey County, CA, 37106-37107 2020-13190 Environmental Assessments;

Availability, etc.: Draft Coastal Region Conservation Program Multiple Species Habitat Conservation Plan; Central and Southern California, 37105-37106 2020-13191 Foreign Assets Foreign Assets Control Office NOTICES Blocking or Unblocking of Persons and Properties, 37155-37156 2020-13271 Foreign Trade Foreign-Trade Zones Board NOTICES Proposed Production Activity: Tesla, Inc., Foreign-Trade Zone 126, Reno, NV, 37060-37061 2020-13268 Forest Forest Service NOTICES Meetings: West Virginia Resource Advisory Committee, 37060 2020-13283 Health and Human Health and Human Services Department See Centers for Disease Control and Prevention See Centers for Medicare & Medicaid Services See National Institutes of Health RULES Nondiscrimination in Health and Health Education Programs or Activities:

Delegation of Authority, 37160-37248 2020-11758 NOTICES Meetings: Physician-Focused Payment Model Technical Advisory Committee; Correction, 37101 2020-13186 Homeland Homeland Security Department See Coast Guard See Federal Emergency Management Agency Housing Housing and Urban Development Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Application for Healthy Homes and Lead Hazard Control Grant Programs and Quality Assurance Plans, 37103-37104 2020-13249 Multifamily Project Construction Contract, Building Loan Agreement, and Construction Change Request, 37104-37105 2020-13235 Interior Interior Department See Fish and Wildlife Service See Land Management Bureau International Trade Adm International Trade Administration NOTICES Antidumping or Countervailing Duty Investigations, Orders, or Reviews:

Certain New Pneumatic Off-the-Road Tires from the People's Republic of China, 37063-37064 2020-13266 Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof from the People's Republic of China, 37061-37063 2020-13270 International Trade Com International Trade Commission NOTICES Investigations; Determinations, Modifications, and Rulings, etc.: Carbon and Certain Alloy Steel Wire Rod from China, 37108 2020-13223 Forged Steel Fittings from India and Korea, 37109-37111 2020-13267 Quartz Surface Products from India and Turkey, 37108-37109 2020-13224 Joint Joint Board for Enrollment of Actuaries NOTICES Meetings:

Advisory Committee, 37111 2020-13194 Justice Department Justice Department See Alcohol, Tobacco, Firearms, and Explosives Bureau RULES Civil Monetary Penalties Inflation Adjustment, 37004-37010 2020-10905 Labor Department Labor Department See Employment and Training Administration Land Land Management Bureau NOTICES Plats of Survey: Montana, 37107-37108 2020-13277 Maritime Maritime Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals:

Application for Construction Reserve Fund and Annual Statements, 37150 2020-13219 Determination of Fair and Reasonable Rates for Carriage of Agriculture Cargoes on U.S. Commercial Vessels, 37149-37150 2020-13220 Requested Administrative Waiver of the Coastwise Trade Laws: Vessel AEGIS (Sailing Vessel), 37151 2020-13218 Vessel PLATINUM PRINCESS (Motor Vessel), 37152 2020-13217 National Institute National Institutes of Health NOTICES Meetings: National Center for Advancing Translational Sciences, 37102 2020-13196 National Institute on Alcohol Abuse and Alcoholism, 37102 2020-13197 National Oceanic National Oceanic and Atmospheric Administration RULES Fisheries Off West Coast States:

Emergency Action to Temporarily Remove Seasonal Processing Limitations for Pacific Whiting Motherships and Catcher-Processors, 37027-37030 2020-13288 Revised Management Measures for the 2020 Guided Sport Pacific Halibut Fisheries in International Pacific Halibut Commission Regulatory Areas 2A, 2C, and 3A, 37023-37026 2020-13287 NOTICES Application for Exempted Fishing Permits: Atlantic Coastal Fisheries Cooperative Management Act Provisions; General Provisions for Domestic Fisheries, 37072-37073 2020-13214 2020-13221 Endangered and Threatened Species:

Take of Anadromous Fish, 37070-37071 2020-13264 Meetings: Mid-Atlantic Fishery Management Council, 37072 2020-13250 Takes of Marine Mammals Incidental to Specified Activities: Chevron Richmond Refinery Long Wharf Maintenance and Efficiency Project in San Francisco Bay, CA, 37064-37070 2020-13101 Nuclear Regulatory Nuclear Regulatory Commission RULES Revision of Fee Schedules; Fee Recovery for Fiscal Year 2020, 37250-37283 2020-13031 NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Comprehensive Decommissioning Program, Including Annual Data Collection, 37114-37115 2020-13253 Requests to Agreement States for Information, 37117-37118 2020-13289 Environmental Impact Statements; Availability, etc.: Holtec International HI-STORE Consolidated Interim Storage Facility Project; Correction, 37113-37114 2020-13290 Guidance: Assumptions Used for Evaluating a Control Rod Ejection Accident for Pressurized Water Reactors; Withdrawal, 37118-37119 2020-13258 Pressurized-Water Reactor Control Rod Ejection and Boiling-Water Reactor Control Rod Drop Accidents, 37115-37116 2020-13254 Post-Shutdown Decommissioning Activities Report:

NextEra Energy Duane Arnold, LLC Duane Arnold Energy Center, 37116-37117 2020-13215 Patent Patent and Trademark Office PROPOSED RULES Trademark Fee Adjustment, 37040-37057 2020-13262 Postal Regulatory Postal Regulatory Commission NOTICES Inbound Parcel Post (at UPU Rates), 37119 2020-13187 Presidential Documents Presidential Documents EXECUTIVE ORDERS Law Enforcement and Crime: Community Safety and Policing Practices; Improvement Efforts (EO 13929), 37323-37328 2020-13449 ADMINISTRATIVE ORDERS Defense and National Security:

National Defense Authorization Act for Fiscal Year 2012 (Presidential Determination No. 2020-06 of June 5, 2020), 36995 2020-13389 North Korea; Continuation of National Emergency (Notice of June 17, 2020), 37329-37330 2020-13450 Securities Securities and Exchange Commission NOTICES Meetings; Sunshine Act, 37119-37120 2020-13411 Order: Temporary Conditional Exemption from the Broker Registration Requirements of the Securities Exchange Act for Certain Activities of Registered Municipal Advisors, 37133-37136 2020-13284 Self-Regulatory Organizations;

Proposed Rule Changes: Cboe BZX Exchange, Inc., 37136-37139 2020-13205 Nasdaq GEMX, LLC, 37129-37133 2020-13208 Nasdaq ISE, LLC, 37120-37123 2020-13209 Nasdaq MRX, LLC, 37142-37146 2020-13204 NYSE Arca, Inc., 37139-37142 2020-13207 NYSE National, Inc., 37123-37129 2020-13201 Small Business Small Business Administration RULES Business Loan Program; Paycheck Protection Program: Temporary Changes, 36997-37000 2020-13293 Southeastern Southeastern Power Administration NOTICES Revision to Power Marketing Policy Kerr-Philpott System of Projects, 37092-37094 2020-13106 State Department State Department NOTICES List of Entities and Subentities:

Cuba (Cuba Restricted List); Correction, 37146 2020-13192 Meetings: U.S. Department of State Advisory Committee on Private International Law, 37146 2020-13193 Surface Transportation Surface Transportation Board NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Report of Fuel Cost, Consumption, and Surcharge Revenue, 37146-37147 2020-13102 Statutory Licensing Authority, 37147-37148 2020-13103 Operating Exemption: Northeast Texas Connector, LLC;

Northeast Texas Rural Rail Transportation District, 37148-37149 2020-13228 Transportation Department Transportation Department See Federal Aviation Administration See Maritime Administration NOTICES Funding Opportunity: Letters of Interest for the Railroad Rehabilitation and Improvement Financing Express Pilot Program under the Railroad Rehabilitation and Improvement Financing Program, 37153-37155 2020-13212 Treasury Treasury Department See Foreign Assets Control Office Veteran Affairs Veterans Affairs Department NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Application and Training Agreement for Apprenticeship and On-the-Job Training Programs, 37156-37157 2020-13206 Residency Verification Report—Veterans and Survivors, 37157 2020-13247 Separate Parts In This Issue Part II Health and Human Services Department, Centers for Medicare & Medicaid Services, 37160-37248 2020-11758 Health and Human Services Department, 37160-37248 2020-11758 Part III Nuclear Regulatory Commission, 37250-37283 2020-13031 Part IV Health and Human Services Department, Centers for Medicare & Medicaid Services, 37286-37322 2020-12970 Part V Presidential Documents, 37323-37330 2020-13449 2020-13450 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents electronic mailing list, go to https://public.govdelivery.com/accounts/USGPOOFR/subscriber/new, enter your e-mail address, then follow the instructions to join, leave, or manage your subscription. 85 119 Friday, June 19, 2020 Rules and Regulations SMALL BUSINESS ADMINISTRATION 13 CFR Part 120 [Docket No. SBA-2020-0037] RIN 3245-AH51 Business Loan Program Temporary Changes; Paycheck Protection Program—Revisions to the Third and Sixth Interim Final Rules AGENCY:

U.S. Small Business Administration. ACTION: Interim final rule. SUMMARY: On April 2, 2020, the U.S. Small Business Administration

(SBA)posted on its website an interim final rule relating to the implementation of sections 1102 and 1106 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act or the Act) (published in the **Federal Register** on April 15, 2020). Section 1102 of the Act temporarily adds a new product, titled the “Paycheck Protection Program,” to SBA's 7(a) Loan Program. Subsequently, SBA and Treasury issued additional interim final rules implementing the Paycheck Protection Program. On June 5, 2020, the Paycheck Protection Program Flexibility Act of 2020 (Flexibility Act) was signed into law, amending the CARES Act. This interim final rule revises interim final rules posted on SBA's website on April 14, 2020 (published in the **Federal Register** on April 20, 2020) and April 28, 2020 (published in the **Federal Register** on May 4, 2020), by changing provisions to conform to the Flexibility Act. Several of these amendments are retroactive to the date of enactment of the CARES Act, as required by section 3(d) of the Flexibility Act. DATES: *Effective dates:* The provisions in this interim final rule related to loan forgiveness for PPP loans are effective March 27, 2020. The provision in this interim final rule relating to the maturity date of PPP loans is effective June 5, 2020. The remaining provisions in this interim final rule are effective June 16, 2020. *Comment date:* Comments must be received on or before July 20, 2020. ADDRESSES: You may submit comments, identified by number SBA-2020-0037, through the Federal eRulemaking Portal: *http://www.regulations.gov.* Follow the instructions for submitting comments. SBA will post all comments on *www.regulations.gov.* If you wish to submit confidential business information

(CBI)as defined in the User Notice at *www.regulations.gov,* please send an email to *ppp-ifr@sba.gov.* Highlight the information that you consider to be CBI and explain why you believe SBA should hold this information as confidential. SBA will review the information and make the final determination whether it will publish the information. FOR FURTHER INFORMATION CONTACT: A Call Center Representative at 833-572-0502, or the local SBA Field Office; the list of offices can be found at *https://www.sba.gov/tools/local-assistance/districtoffices.* SUPPLEMENTARY INFORMATION: I. Background Information On March 13, 2020, President Trump declared the ongoing Coronavirus Disease 2019 (COVID-19) pandemic of sufficient severity and magnitude to warrant an emergency declaration for all states, territories, and the District of Columbia. With the COVID-19 emergency, many small businesses nationwide are experiencing economic hardship as a direct result of the Federal, State, and local public health measures that are being taken to minimize the public's exposure to the virus. These measures, some of which are government-mandated, have been implemented nationwide and include the closures of restaurants, bars, and gyms. In addition, based on the advice of public health officials, other measures, such as keeping a safe distance from others or even stay-at-home orders, have been implemented, resulting in a dramatic decrease in economic activity as the public avoids malls, retail stores, and other businesses. On March 27, 2020, the President signed the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act or the Act) (Pub. L. 116-136) to provide emergency assistance and health care response for individuals, families, and businesses affected by the coronavirus pandemic. The Small Business Administration

(SBA)received funding and authority through the Act to modify existing loan programs and establish a new loan program to assist small businesses nationwide adversely impacted by the COVID-19 emergency. Section 1102 of the Act temporarily permits SBA to guarantee 100 percent of 7(a) loans under a new program titled the “Paycheck Protection Program.” Section 1106 of the Act provides for forgiveness of up to the full principal amount of qualifying loans guaranteed under the Paycheck Protection Program. On April 24, 2020, the President signed the Paycheck Protection Program and Health Care Enhancement Act (Pub. L. 116-139), which provided additional funding and authority for the PPP. On June 5, 2020, the President signed the Paycheck Protection Program Flexibility Act of 2020 (Flexibility Act) (Pub. L. 116-142), which changes key provisions of the Paycheck Protection Program, including provisions relating to the maturity of PPP loans, the deferral of PPP loan payments, and the forgiveness of PPP loans. Section 3(d) of the Flexibility Act provides that the amendments relating to PPP loan forgiveness and extension of the deferral period for PPP loans shall be effective as if included in the CARES Act, which means that they are retroactive to March 27, 2020. Section 2 of the Flexibility Act provides that the amendment relating to the extension of the maturity date for PPP loans shall take effect on the date of enactment (June 5, 2020). Under the Flexibility Act, the extension of the maturity date for PPP loans is applicable to PPP loans made on or after that date, and lenders and borrowers may mutually agree to modify PPP loans made before such date to reflect the longer maturity. II. Comments and Retroactive/Immediate Effective Date This interim final rule is effective without advance notice and public comment because section 1114 of the CARES Act authorizes SBA to issue regulations to implement Title I of the Act without regard to notice requirements. In addition, SBA has determined that there is good cause for dispensing with advance public notice and comment on the grounds that it would be contrary to the public interest. Specifically, advance public notice and comment would defeat the purpose of this interim final rule given that SBA's authority to guarantee PPP loans expires on June 30, 2020, and that many PPP borrowers can now apply for loan forgiveness following the end of their eight-week covered period. Providing borrowers and lenders with certainty on both loan requirements and loan forgiveness requirements following the enactment of the Flexibility Act will enhance the ability of lenders to make loans and process loan forgiveness applications, particularly in light of the fact that most of the Flexibility Act's provisions are retroactive to March 27, 2020. Specifically, small businesses that have yet to apply for and receive a PPP loan need to be informed of the terms of PPP loans as soon as possible, because the last day on which a lender can obtain an SBA loan number for a PPP loan is June 30, 2020. Borrowers who already have applied for and received a PPP loan need certainty regarding how loan proceeds must be used during the covered period, as amended by the Flexibility Act, so that they can maximize the amount of loan forgiveness. These same reasons provide good cause for SBA to dispense with the 30-day delayed effective date provided in the Administrative Procedure Act. Although this interim final rule is effective on or before date of filing, comments are solicited from interested members of the public on all aspects of the interim final rule, including section III below. These comments must be submitted on or before July 20, 2020. The SBA will consider these comments, comments received on the interim final rules amended by this interim final rule, which were posted on April 14 and April 28, 2020 (and published in the **Federal Register** on April 20, 2020 and May 4, 2020, respectively), and the need for making any revisions as a result of these comments. III. Paycheck Protection Program—Revisions to Third and Sixth Interim Final Rules Overview The CARES Act was enacted to provide immediate assistance to individuals, families, and businesses affected by the COVID-19 emergency. Among the provisions contained in the CARES Act are provisions authorizing SBA to temporarily guarantee loans under a new 7(a) loan program titled the “Paycheck Protection Program.” Loans guaranteed under the Paycheck Protection Program

(PPP)will be 100 percent guaranteed by SBA, and the full principal amount of the loans may qualify for loan forgiveness. The Flexibility Act amends the CARES Act, including its provisions relating to loan terms and loan forgiveness. The purpose of this interim final rule is to update the Interim Final Rule on Additional Eligibility Criteria and Requirements for Certain Pledges of Loans (Third Interim Final Rule), posted on SBA's website on April 14, 2020 and published in the **Federal Register** on April 20, 2020 (85 FR 21747), and the Interim Final Rule on Disbursements (Sixth Interim Final Rule), posted on SBA's website on April 28, 2020 and published in the **Federal Register** on May 4, 2020 (85 FR 26321), in light of the amendments under the Flexibility Act. The Third Interim Final Rule and the Sixth Interim Final Rule, each as amended by this interim final rule, should be interpreted consistent with the frequently asked questions

(FAQs)regarding the PPP that are posted on SBA's website 1 and the other interim final rules issued regarding the PPP. 2 1 *See https://www.sba.gov/document/support--faq-lenders-borrowers.* 2 *See https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program.* 1. Changes to the Third Interim Final Rule a. Use of PPP Loan Proceeds Under section 1102 of the CARES Act, certain provisions regarding the issuance and use of PPP loans are limited to the “covered period.” “Covered period,” as that term is used in section 1102 of the CARES Act, was originally defined as the period from February 15, 2020, to June 30, 2020. However, section 3(a) of the Flexibility Act extended the “covered period” as defined in section 1102 until December 31, 2020. Therefore, Part III.1.d.(iii.) of the Third Interim Final Rule (85 FR 21747, 21749) is revised by striking “during the eight-week period following the first disbursement of the loan (the “covered period”)” and “during the covered period”. Section 2(a) of the Flexibility Act provides a minimum maturity of five years for all PPP loans made on or after the date of enactment of the Flexibility Act (June 5, 2020), and permits lenders and borrowers to extend the maturity date of earlier PPP loans by mutual agreement. Therefore, Part III.1.d.v. of the Third Interim Final Rule (85 FR 21747, 21749) is revised by striking “PPP's maturity of two years” and replacing it with “PPP's maturity of two years for PPP loans made before June 5, 2020 unless the borrower and lender mutually agree to extend the maturity of such loans to five years, or PPP's maturity of five years for PPP loans made on or after June 5”. Section 3(b) of the Flexibility Act amended the requirements regarding forgiveness of PPP loans to reduce, from 75 percent to 60 percent, the portion of PPP loan proceeds that must be used for payroll costs for the full amount of the PPP loan to be eligible for forgiveness. Consistent with this change, SBA's interim final rule posted on June 11, 2020, decreased from 75 percent to 60 percent the portion of loan proceeds that must be used for payroll costs. Therefore, Part III.1.e. of the Third Interim Final Rule (85 FR 21747, 21750) is revised to read as follows: e. Are there any other restrictions on how I can use PPP loan proceeds? Yes. At least 60 percent of the PPP loan proceeds shall be used for payroll costs. For purposes of determining the percentage of use of proceeds for payroll costs (but not for forgiveness purposes), the amount of any refinanced EIDL will be included. The rationale for this 60 percent floor is contained in the First PPP Interim Final Rule and SBA's interim final rule posted on June 11, 2020. b. Loan Forgiveness Under section 1106 of the CARES Act, certain provisions regarding the forgiveness of PPP loans are limited to the “covered period.” “Covered period,” as that term is used in section 1106 of the CARES Act, was originally defined as the eight-week period beginning on the date of the origination of a covered loan. However, section 3(b) of the Flexibility Act extended the length of the covered period as defined in section 1106 of the CARES Act from eight to 24 weeks, while allowing borrowers that received PPP loans before June 5, 2020 to elect to use the original eight-week covered period. As noted above, section 3(b) of the Flexibility Act also amended the requirements regarding forgiveness of PPP loans to reduce, from 75 percent to 60 percent, the amount of PPP loan proceeds that must be used for payroll costs for the full amount of the PPP loan to be eligible for forgiveness. Therefore, Part III.1.f. of the Third Interim Final Rule (85 FR 21747, 21750) is revised to read as follows: f. What amounts shall be eligible for forgiveness? The amount of loan forgiveness can be up to the full principal amount of the loan plus accrued interest. The actual amount of loan forgiveness will depend, in part, on the total amount spent over the 24-week period beginning on the date your PPP loan is disbursed 3 (“covered period”) on: 3 If your PPP loan was made before June 5, 2020, you may elect to have your covered period be the eight-week period beginning on the date your PPP loan was disbursed. In addition, under section 3(b)(1) of the Paycheck Protection Program Flexibility Act of 2020 (Flexibility Act), the covered period of any borrower will end no later than December 31, 2020. i. Payroll costs including salary, wages, and tips, up to $100,000 of annualized pay per employee (for 24 weeks, a maximum of $46,154 per individual, 4 or for eight weeks, a maximum of $15,385 per individual), as well as covered benefits for employees (but not owners), including health care expenses, retirement contributions, and state taxes imposed on employee payroll paid by the employer (such as unemployment insurance premiums); 4 Given the 2.5 multiplier in the calculation of maximum PPP loan amount in SBA Form 2483, this per-individual maximum would only be reached if the borrower had reduced its FTEs but was eligible for an exemption (safe harbor) from the resulting reduction in forgiveness. ii. owner compensation replacement, calculated based on 2019 net profit as described in Paragraph 1.b. above, with forgiveness of such amounts limited to eight weeks' worth (8/52) of 2019 net profit (up to $15,385) for an eight-week covered period or 2.5 months' worth (2.5/12) of 2019 net profit (up to $20,833) for a 24-week covered period, but excluding any qualified sick leave equivalent amount for which a credit is claimed under section 7002 of the Families First Coronavirus Response Act (FFCRA) (Pub. L. 116-127) or qualified family leave equivalent amount for which a credit is claimed under section 7004 of FFCRA; iii. payments of interest on mortgage obligations on real or personal property incurred before February 15, 2020, to the extent they are deductible on Form 1040 Schedule C (business mortgage payments); iv. rent payments on lease agreements in force before February 15, 2020, to the extent they are deductible on Form 1040 Schedule C (business rent payments); and v. utility payments under service agreements dated before February 15, 2020 to the extent they are deductible on Form 1040 Schedule C (business utility payments). The Administrator, in consultation with the Secretary, has determined that it is appropriate to limit the forgiveness of owner compensation replacement for individuals with self-employment income who file a Schedule C or F to either eight weeks' worth (8/52) of 2019 net profit (up to $15,385) for an eight-week covered period or 2.5 months' worth (2.5/12) of 2019 net profit (up to $20,833) for a 24-week covered period per owner in total across all businesses. This approach is consistent with the structure of the CARES Act and its overarching focus on keeping workers paid, and will prevent windfalls that Congress did not intend. Specifically, Congress determined that the maximum loan amount is generally based on 2.5 months of the borrower's average total monthly payroll costs during the one-year period preceding the loan. 15 U.S.C. 636(a)(36)(E). For example, a borrower with one other employee would receive a maximum loan amount equal to five months of payroll (2.5 months of payroll for the owner plus 2.5 months of payroll for the employee). If the owner laid off the employee and availed itself of the safe harbor in the Flexibility Act from reductions in loan forgiveness for a borrower that is unable to return to the same level of business activity the business was operating at before February 15, 2020, the owner could treat the entire amount of the PPP loan as payroll, with the entire loan being forgiven. This would not only result in a windfall for the owner, by providing the owner with five months of payroll instead of 2.5 months, but also defeat the purpose of the CARES Act of protecting the paycheck of the employee. For borrowers with no employees, this limitation will have no effect, because the maximum loan amount for such borrowers already includes only 2.5 months of their payroll. Finally, at least 60 percent of the amount forgiven must be attributable to payroll costs, for the reasons specified in the First PPP Interim Final Rule and SBA's interim final rule posted on June 11, 2020. In addition, Part III.1.g. of the Third Interim Final Rule (85 FR 21747, 21750) is revised by striking “eight-week”. 2. Changes to the Sixth Interim Final Rule As described above, section 3(b) of the Flexibility Act extended the length of the covered period as defined in section 1106 of the CARES Act from eight to 24 weeks, while allowing borrowers that received PPP loans before June 5, 2020 to elect to use the original eight-week covered period. Therefore, Part III.1.a. of the Sixth Interim Final Rule (85 FR 26321, 26322-23) is revised by striking both references to “eight-week covered period” and replacing them with “covered period”. 3. Additional Information SBA may provide further guidance, if needed, through SBA notices which will be posted on SBA's website at *www.sba.gov.* Questions on the Paycheck Protection Program may be directed to the Lender Relations Specialist in the local SBA Field Office. The local SBA Field Office may be found at *https://www.sba.gov/tools/local-assistance/districtoffices.* Compliance With Executive Orders 12866, 12988, 13132, 13563, and 13771, the Paperwork Reduction Act (44 U.S.C. Ch. 35), and the Regulatory Flexibility Act (5 U.S.C. 601-612) Executive Orders 12866, 13563, and 13771 This interim final rule is economically significant for the purposes of Executive Orders 12866 and 13563, and is considered a major rule under the Congressional Review Act. SBA, however, is proceeding under the emergency provision at Executive Order 12866 Section 6(a)(3)(D) based on the need to move expeditiously to mitigate the current economic conditions arising from the COVID-19 emergency. This rule's designation under Executive Order 13771 will be informed by public comment. This rule is necessary to implement Sections 1102 and 1106 of the CARES Act and the Flexibility Act in order to provide economic relief to small businesses nationwide adversely impacted under the COVID-19 Emergency Declaration. We anticipate that this rule will result in substantial benefits to small businesses, their employees, and the communities they serve. However, we lack data to estimate the effects of this rule. Executive Order 12988 SBA has drafted this rule, to the extent practicable, in accordance with the standards set forth in section 3(a) and 3(b)(2) of Executive Order 12988, to minimize litigation, eliminate ambiguity, and reduce burden. The rule has no preemptive effect but does have a limited retroactive effect consistent with section 3(d) of the Flexibility Act. Executive Order 13132 SBA has determined that this rule will not have substantial direct effects on the States, on the relationship between the National Government and the States, or on the distribution of power and responsibilities among the various layers of government. Therefore, SBA has determined that this rule has no federalism implications warranting preparation of a federalism assessment. Paperwork Reduction Act, 44 U.S.C. Chapter 35 SBA has determined that this rule will not modify existing recordkeeping or reporting requirements under the Paperwork Reduction Act. Regulatory Flexibility Act

(RFA)The Regulatory Flexibility Act

(RFA)generally requires that when an agency issues a proposed rule, or a final rule pursuant to section 553(b) of the APA 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. Specifically, the RFA normally requires agencies to describe the impact of a rulemaking on small entities by providing a regulatory impact analysis. Such analysis must address the consideration of regulatory options that would lessen the economic effect of the rule on small entities. The RFA defines a “small entity” as

(1)a proprietary firm meeting the size standards of the Small Business Administration (SBA);

(2)a nonprofit organization that is not dominant in its field; or

(3)a small government jurisdiction with a population of less than 50,000. 5 U.S.C. 601(3)-(6). Except for such small government jurisdictions, neither State nor local governments are “small entities.” Similarly, for purposes of the RFA, individual persons are not small entities. The requirement to conduct a regulatory impact analysis does not apply if the head of the agency “certifies that the rule will not, if promulgated, have a significant economic impact on a substantial number of small entities.” 5 U.S.C. 605(b). The agency must, however, publish the certification in the **Federal Register** at the time of publication of the rule, “along with a statement providing the factual basis for such certification.” If the agency head has not waived the requirements for a regulatory flexibility analysis in accordance with the RFA's waiver provision, and no other RFA exception applies, the agency must prepare the regulatory flexibility analysis and publish it in the **Federal Register** at the time of promulgation or, if the rule is promulgated in response to an emergency that makes timely compliance impracticable, within 180 days of publication of the final rule. 5 U.S.C. 604(a), 608(b). Rules that are exempt from notice and comment are also exempt from the RFA requirements, including conducting a regulatory flexibility analysis, when among other things the agency for good cause finds that notice and public procedure are impracticable, unnecessary, or contrary to the public interest. Small Business Administration's Office of Advocacy guide: *How to Comply with the Regulatory Flexibility Act, Ch.1. p.9.* Accordingly, SBA is not required to conduct a regulatory flexibility analysis. Authority: 15 U.S.C. 636(a)(36); Paycheck Protection Program Flexibility Act of 2020, Pub. L. 116-142; Coronavirus Aid, Relief, and Economic Security Act, Pub. L. 116-136, Section 1114. Jovita Carranza, Administrator. [FR Doc. 2020-13293 Filed 6-16-20; 4:15 pm]

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