Unknown. Interim final rule

4,138 words·~19 min read·/register/2020/08/27/2020-18940

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--- schema: federal-register doc_type: fedreg source_file: FR-2020-08-27.xml --- 85 167 Thursday, August 27, 2020 Contents Editorial Note: In the printed version of the **Federal Register** Table of Contents for August 26, 2020, the Semiannual Regulatory Agenda documents were inadvertently dropped from the main portion of the Table of Contents, but they can be found under the heading **Separate Parts In This Issue.** Agency Health Agency for Healthcare Research and Quality NOTICES Patient Safety Organizations;

Delistings: Institute for Safe Medication Practices; Voluntary Relinquishment, 53003-53004 2020-18877 Agriculture Agriculture Department See Food and Nutrition Service See Forest Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 52942 2020-18884 Centers Disease Centers for Disease Control and Prevention NOTICES Privacy Act; System of Records, 53004-53007 2020-18805 Centers Medicare Centers for Medicare & Medicaid Services RULES Medicare Program:

FY 2021 Inpatient Psychiatric Facilities Prospective Payment System and Special Requirements for Psychiatric Hospitals for Fiscal Year Beginning October 1, 2020; Correction, 52923-52924 2020-18902 PROPOSED RULES Medicare Program: Modernizing and Clarifying the Physician Self-Referral Regulations, 52940-52941 2020-18867 Chemical Chemical Safety and Hazard Investigation Board NOTICES Meetings; Sunshine Act, 52947 2020-19035 Civil Rights Civil Rights Commission NOTICES Meetings:

Georgia Advisory Committee, 52948 2020-18810 Michigan Advisory Committee, 52948-52949 2020-18807 New York Advisory Committee, 52947-52948 2020-18864 Coast Guard Coast Guard RULES Safety Zone: Atlantic Ocean, Cape Canaveral, FL, 52919-52920 2020-18886 Special Local Regulation: Boat Parade; San Diego, CA, 52916-52918 2020-18962 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 53012-53013 2020-18854 Commerce Commerce Department See Industry and Security Bureau See International Trade Administration See National Oceanic and Atmospheric Administration Consumer Product Consumer Product Safety Commission NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Consumer Focus Groups, 52966 2020-18893 Generic Clearance for the Collection of Qualitative Feedback on Agency Service Delivery, 52965-52966 2020-18891 Defense Department Defense Department RULES Federal Acquisition Regulations: Circular 2020-09; Introduction, 53126 2020-18771 Federal Acquisition Circular 2020-09; Small Entity Compliance Guide, 53134-53135 2020-18773 Prohibition on Contracting with Entities Using Certain Telecommunications and Video Surveillance Services or Equipment, 53126-53134 2020-18772 NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 52966-52968 2020-18868 2020-18869 Drug Drug Enforcement Administration RULES Schedules of Controlled Substances: Extension of Temporary Placement of N-Ethylpentylone in Schedule I of the Controlled Substances Act, 52915-52916 2020-19011 PROPOSED RULES Schedules of Controlled Substances: Placement of N-Ethylpentylone in Schedule I, 52935-52940 2020-19007 Education Department Education Department RULES Final Waivers and Extensions of the Project Periods for the American Indian Vocational Rehabilitation Services Training and Technical Assistance Center and the Vocational Rehabilitation Training Institute for the Preparation of Personnel in American Indian Vocational Rehabilitation Services, 52921-52923 2020-19004 Energy Department Energy Department See Southeastern Power Administration Environmental Protection Environmental Protection Agency NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Chemical-Specific Rules under the Toxic Substances Control Act Section 8(a), Certain Nanoscale Materials, 52995-52996 2020-18887 Toxic Substance Control Act Section 8(b) Reporting Requirements for TSCA Inventory Notifications, 52994-52995 2020-18897 Federal Aviation Federal Aviation Administration RULES Airworthiness Directives: Airbus SAS Airplanes, 52895-52898 2020-18820 Leonardo S.p.A. Helicopters, 52893-52895 2020-18620 Robinson Helicopter Company, 52890-52893 2020-18829 PROPOSED RULES Airworthiness Directives:

Airbus Helicopters Deutschland GmbH Helicopters, 52931-52933 2020-18696 Federal Communications Federal Communications Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 52996-52999, 53001-53002 2020-18836 2020-18837 2020-18838 2020-18901 Privacy Act; Systems of Records, 52999-53001 2020-18888 Federal Maritime Federal Maritime Commission NOTICES Agreements Filed, 53002 2020-18845 Fish Fish and Wildlife Service NOTICES Proposed American Burying Beetle Habitat Conservation Plan and Low-Effect Screening Form:

NS-374 Bridge Over Leader Creek, Hughes County, OK, 53017-53018 2020-18899 Food and Drug Food and Drug Administration NOTICES Guidance: Evaluating Cancer Drugs in Patients with Central Nervous System Metastases, 53007-53008 2020-18894 Food and Nutrition Food and Nutrition Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: FNS Information Collection Needs Due to COVID-19, 52942-52945 2020-18860 Supplemental Nutrition Assistance Program Emergency Allotments (COVID-19), 52945-52946 2020-18859 Forest Forest Service NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Advertised Timber for Sale, 52946-52947 2020-18835 General Services General Services Administration RULES Federal Acquisition Regulations: Circular 2020-09; Introduction, 53126 2020-18771 Federal Acquisition Circular 2020-09; Small Entity Compliance Guide, 53134-53135 2020-18773 Prohibition on Contracting with Entities Using Certain Telecommunications and Video Surveillance Services or Equipment, 53126-53134 2020-18772 NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: General Services Administration Acquisition Regulation; Zero Burden Information Collection Reports, 53003 2020-18799 Geological Geological Survey NOTICES Draft National Spatial Data Infrastructure Strategic Plan, 53018 2020-18879 Health and Human Health and Human Services Department See Agency for Healthcare Research and Quality See Centers for Disease Control and Prevention See Centers for Medicare & Medicaid Services See Food and Drug Administration See Health Resources and Services Administration See National Institutes of Health Health Resources Health Resources and Services Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Be the Match Patient Support Center Survey, 53009-53011 2020-18895 Requests for Nominations: Tribal Advisory Council; Membership, 53008-53009 2020-18865 Homeland Homeland Security Department See Coast Guard See U.S. Customs and Border Protection Industry Industry and Security Bureau RULES Addition of Entities to the Entity List, and Revision of Entries on the Entity List, 52898-52909 2020-18909 PROPOSED RULES Identification and Review of Controls for Certain Foundational Technologies, 52934-52935 2020-18910 NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: End-User, Delivery Verification Certificates and Firearms Entry Clearance Requirements, 52949-52950 2020-18851 Interior Interior Department See Fish and Wildlife Service See Geological Survey Internal Revenue Internal Revenue Service RULES Limitation on Deduction for Dividends Received from Certain Foreign Corporations and Amounts Eligible for Section 954 Look-Through Exception, 53068-53097 2020-18543 PROPOSED RULES Coordination of Extraordinary Disposition and Disqualified Basis Rules, 53098-53124 2020-18544 International Trade Adm International Trade Administration NOTICES Antidumping or Countervailing Duty Investigations, Orders, or Reviews:

Carbon and Certain Alloy Steel Wire Rod from Brazil, Indonesia, Mexico, Moldova, and Trinidad and Tobago, 52953-52955 2020-18900 Determination of Sales At Less Than Fair Value: Difluoromethane from the People's Republic of China, 52950-52953 2020-18811 International Trade Com International Trade Commission NOTICES Investigations; Determinations, Modifications, and Rulings, etc.: Lobsters: Effects of the Canada-EU Trade Agreement on the U.S. Industry, 53018-53020 2020-18889 Justice Department Justice Department See Drug Enforcement Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 53020 2020-18871 Agency Information Collection Activities; Proposals, Submissions, and Approvals: Number of Full-time Law Enforcement Employees as of October 31, 53020-53021 2020-18876 Proposed Consent Decree under CERCLA, 53021 2020-18722 Labor Department Labor Department See Occupational Safety and Health Administration Maritime Maritime Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals:

Automated Mutual Assistance Vessel Rescue System, 53062 2020-18842 Cruise Vessel Security and Safety Act Training Provider Certification, 53061 2020-18843 NASA National Aeronautics and Space Administration RULES Federal Acquisition Regulations: Circular 2020-09; Introduction, 53126 2020-18771 Detection and Avoidance of Counterfeit Parts; Supplement, 52924-52929 2020-16986 Federal Acquisition Circular 2020-09; Small Entity Compliance Guide, 53134-53135 2020-18773 Prohibition on Contracting with Entities Using Certain Telecommunications and Video Surveillance Services or Equipment, 53126-53134 2020-18772 National Institute National Institutes of Health NOTICES Meetings:

National Center for Advancing Translational Sciences, 53011 2020-18882 National Institute of Biomedical Imaging and Bioengineering, 53011 2020-18817 National Institute of Dental and Craniofacial Research, 53011-53012 2020-18880 2020-18881 National Oceanic National Oceanic and Atmospheric Administration NOTICES Application: Marine Mammals; File No. 23644, 52956-52957 2020-18866 Meetings: Hydrographic Services Review, 52956 2020-18892 Public Information Session Regarding Atlantic Bluefin Tuna Stock Assessment, 52957-52958 2020-18874 Record of Decision, 52955 2020-18798 Nuclear Regulatory Nuclear Regulatory Commission PROPOSED RULES Criteria for Development of Evacuation Time Estimate Studies, 52930-52931 2020-18818 NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Approval of Official Foreign Travel By Non-Government Personnel, 53023-53024 2020-18858 Licenses, Certifications, and Approvals for Nuclear Power Plants, 53024-53025 2020-18856 Issuance of Multiple Exemptions in Response to COVID-19 Public Health Emergency, 53025-53029 2020-18815 Occupational Safety Health Adm Occupational Safety and Health Administration NOTICES Grant of Expansion of Recognition and Modification to the Nationally Recognized Testing Laboratory Program's List of Appropriate Test Standards:

SGS North America, Inc., 53021-53023 2020-18833 Postal Regulatory Postal Regulatory Commission NOTICES New Postal Products, 53029 2020-18870 Presidential Documents Presidential Documents EXECUTIVE ORDERS Federal Site Locations; Efforts To Target Opportunity Zones and Other Distressed Communities (EO 13946), 52879-52880 2020-19032 Securities Securities and Exchange Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 53034-53036, 53040-53041 2020-18802 2020-18803 2020-18808 Self-Regulatory Organizations;

Proposed Rule Changes: Cboe Exchange, Inc., 53029-53034, 53045-53054 2020-18827 2020-18828 2020-18830 Fixed Income Clearing Corp., 53054-53056 2020-18832 ICE Clear Credit, LLC, 53036-53040 2020-18826 NYSE National, Inc., 53041-53045 2020-18831 Small Business Small Business Administration RULES Appeals of SBA Loan Review Decisions under the Paycheck Protection Program, 52883-52890 2020-17895 Business Loan Program Temporary Changes; Paycheck Protection Program: Treatment of Owners and Forgiveness of Certain Nonpayroll Costs, 52881-52883 2020-18940 NOTICES Major Disaster Declaration:

State of Iowa, 53057 2020-18847 Surrender of License of Small Business Investment Company: First New England Capital III, LP, 53056 2020-18848 Garrison Capital SBIC, LP, 53056 2020-18846 Patriot Capital, LP, 53056 2020-18844 Social Social Security Administration RULES Waiver of Recovery of Certain Overpayment Debts Accruing during the COVID-19 Pandemic Period, 52909-52915 2020-18834 NOTICES Announcing Addresses for Service of Process, 53057-53059 2020-18898 Southeastern Southeastern Power Administration NOTICES Rate Schedules:

Cumberland System; Interim Approval, 52985-52994 2020-18822 Kerr-Philpott System; Interim Approval, 52968-52985 2020-18821 State Department State Department NOTICES Meetings: Industry Advisory Group, 53059-53060 2020-18890 Surface Transportation Surface Transportation Board NOTICES Acquisition and Operation Exemption: New Orleans Public Belt Railroad Commission for the Port of New Orleans; New Orleans Public Belt Railroad Corp., 53060-53061 2020-18878 Transportation Department Transportation Department See Federal Aviation Administration See Maritime Administration Treasury Treasury Department See Internal Revenue Service NOTICES Privacy Act;

Computer Matching Program, 53062-53064 2020-18863 Customs U.S. Customs and Border Protection NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Customs Regulations Pertaining to Customhouse Brokers, 53013-53014 2020-18853 Passenger and Crew Manifest, 53015-53017 2020-18872 Temporary Scientific or Educational Purposes, 53014-53015 2020-18873 Veteran Affairs Veterans Affairs Department NOTICES Disruption of Mail Service, 53064-53065 2020-18839 Meetings:

Special Medical Advisory Group, 53065 2020-18814 Separate Parts In This Issue Part II Treasury Department, Internal Revenue Service, 53068-53124 2020-18543 2020-18544 Part III Defense Department, 53126-53135 2020-18771 2020-18773 2020-18772 General Services Administration, 53126-53135 2020-18771 2020-18773 2020-18772 National Aeronautics and Space Administration, 53126-53135 2020-18771 2020-18773 2020-18772 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. 85 167 Thursday, August 27, 2020 Rules and Regulations SMALL BUSINESS ADMINISTRATION 13 CFR Part 120 [Docket Number SBA-2020-0044] RIN 3245-AH56 Business Loan Program Temporary Changes; Paycheck Protection Program—Treatment of Owners and Forgiveness of Certain Nonpayroll Costs 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 the U.S. Small Business Administration's (SBA's) 7(a) Loan Program. Subsequently, SBA issued a number of interim final rules implementing the Paycheck Protection Program. This interim final rule supplements the previously posted interim final rules by providing additional guidance on treatment of owners and forgiveness of certain nonpayroll costs. DATES: *Effective date:* The provisions in this interim final rule are effective August 25, 2020. *Comment date:* Comments must be received on or before September 28, 2020. ADDRESSES: You may submit comments, identified by number SBA-2020-0044 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, tribal, 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) (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 CARES 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 CARES 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 CARES Act provides for forgiveness of up to the full principal amount of qualifying loans guaranteed under the Paycheck Protection Program (PPP). 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 changed provisions of the PPP relating to the maturity of PPP loans, the deferral of PPP loan payments, and the forgiveness of PPP loans. On July 4, 2020, the President signed into law S. 4116, which reauthorized lending under the PPP through August 8, 2020 (Pub. L. 116-147). This interim final rule addresses the ownership percentage that triggers the applicability of owner compensation rules for forgiveness purposes. This interim final rule also addresses limitations on the eligibility of certain nonpayroll costs for forgiveness. II. Comments and 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 expired on August 8, 2020 and SBA began accepting lender loan forgiveness submissions on August 10, 2020. These same reasons provide good cause for SBA to dispense with the 30-day delayed effective date provided in the Administrative Procedure Act (APA). *See* 5 U.S.C. 553(b)(B). 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 September 28, 2020. The SBA will consider these comments and the need for making any revisions as a result of these comments. III. Paycheck Protection Program—Treatment of Owners and Forgiveness of Certain Nonpayroll Costs Overview The CARES Act was enacted to provide immediate assistance to individuals, families, and organizations 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 purpose of this interim final rule is to provide additional guidance concerning the ownership percentage that triggers the applicability of the owner compensation rule for forgiveness purposes and limitations on the eligibility of certain nonpayroll costs for forgiveness. 1. Owners *Are any individuals with an ownership stake in a PPP borrower exempt from application of the PPP owner-employee compensation rule when determining the amount of their compensation that is eligible for loan forgiveness?* Yes, owner-employees with less than a 5 percent ownership stake in a C- or S-Corporation are not subject to the owner-employee compensation rule. The First Loan Forgiveness Rule, as revised by the Revisions to Loan Forgiveness and Loan Review Procedures Interim Final Rules, 85 FR 38304, 38307 (June 26, 2020), caps the amount of loan forgiveness for payroll compensation attributable to an owner-employee. There is no exception in the rule based on the owner-employee's percentage of ownership. The Administrator, in consultation with the Secretary, has now determined that an owner-employee in a C- or S-Corporation who has less than a 5 percent ownership stake will not be subject to the owner-employee compensation rule. This exemption is intended to cover owner-employees who have no meaningful ability to influence decisions over how loan proceeds are allocated. 2. Eligibility of Certain Nonpayroll Costs for Loan Forgiveness *a. Are amounts attributable to the business operation of a tenant or sub-tenant of the PPP borrower or, in the context of home-based businesses, household expenses, eligible for forgiveness?* No, the amount of loan forgiveness requested for nonpayroll costs may not include any amount attributable to the business operation of a tenant or sub-tenant of the PPP borrower or, for home-based businesses, household expenses. The examples below illustrate this rule. *Example 1:* A borrower rents an office building for $10,000 per month and sub-leases out a portion of the space to other businesses for $2,500 per month. Only $7,500 per month is eligible for loan forgiveness. *Example 2:* A borrower has a mortgage on an office building it operates out of, and it leases out a portion of the space to other businesses. The portion of mortgage interest that is eligible for loan forgiveness is limited to the percent share of the fair market value of the space that is not leased out to other businesses. As an illustration, if the leased space represents 25% of the fair market value of the office building, then the borrower may only claim forgiveness on 75% of the mortgage interest. *Example 3:* A borrower shares a rented space with another business. When determining the amount that is eligible for loan forgiveness, the borrower must prorate rent and utility payments in the same manner as on the borrower's 2019 tax filings, or if a new business, the borrower's expected 2020 tax filings. *Example 4:* A borrower works out of his or her home. When determining the amount of nonpayroll costs that are eligible for loan forgiveness, the borrower may include only the share of covered expenses that were deductible on the borrower's 2019 tax filings, or if a new business, the borrower's expected 2020 tax filings. b. Are rent payments to a related party eligible for loan forgiveness? Yes, as long as

(1)the amount of loan forgiveness requested for rent or lease payments to a related party is no more than the amount of mortgage interest owed on the property during the Covered Period that is attributable to the space being rented by the business, and

(2)the lease and the mortgage were entered into prior to February 15, 2020. 1 Any ownership in common between the business and the property owner is a related party for these purposes. The borrower must provide its lender with mortgage interest documentation to substantiate these payments. While rent or lease payments to a related party may be eligible for forgiveness, mortgage interest payments to a related party are not eligible for forgiveness. PPP loans are intended to help businesses cover certain non-payroll obligations that are owed to third parties, not payments to a business's owner that occur because of how the business is structured. This will maintain equitable treatment between a business owner that holds property in a separate entity and one that holds the property in the same entity as its business operations. 1 In this context, the related party itself would not also be eligible to request forgiveness for this amount. 3. Additional Information SBA may provide further guidance, if needed, through SBA notices that 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. 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 or retroactive effect. 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 impose new or 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. SBA 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. Jovita Carranza, Administrator. [FR Doc. 2020-18940 Filed 8-25-20; 1:00 pm]

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