Rule2024-18083
Business Loan Program Temporary Changes; Paycheck Protection Program-Extension of Lender Records Retention Requirements
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 23, 2024
Effective
August 22, 2024
Issuing agencies
Small Business Administration
Abstract
This interim final rule lengthens the required records retention for lenders that made loans under the Paycheck Protection Program (PPP) to ten years. PPP was established under the Coronavirus Aid, Relief, and Economic Security Act as a temporary emergency guaranteed loan program to provide economic relief to small businesses nationwide adversely impacted by the Coronavirus Disease 2019 (COVID- 19), as amended. SBA has issued a number of final rules implementing the PPP Program. This interim final rule harmonizes the PPP lender records retention requirements with subsequent legislation extending the statute of limitations for criminal charges and civil enforcement actions for alleged PPP borrower fraud to ten years after the offense.
Full Text
<html>
<head>
<title>Federal Register, Volume 89 Issue 164 (Friday, August 23, 2024)</title>
</head>
<body><pre>
[Federal Register Volume 89, Number 164 (Friday, August 23, 2024)]
[Rules and Regulations]
[Pages 68090-68094]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-18083]
=======================================================================
-----------------------------------------------------------------------
SMALL BUSINESS ADMINISTRATION
13 CFR Part 120
[Docket Number SBA-2024-0006]
RIN 3245-AI17
Business Loan Program Temporary Changes; Paycheck Protection
Program--Extension of Lender Records Retention Requirements
AGENCY: U.S. Small Business Administration.
ACTION: Interim final rule.
-----------------------------------------------------------------------
SUMMARY: This interim final rule lengthens the required records
retention for lenders that made loans under the Paycheck Protection
Program (PPP) to ten years. PPP was established under the Coronavirus
Aid, Relief, and Economic Security Act as a temporary emergency
guaranteed loan program to provide economic relief to small businesses
nationwide adversely impacted by the Coronavirus Disease 2019 (COVID-
19), as amended. SBA has issued a number of final rules implementing
the PPP Program. This interim final rule harmonizes the PPP lender
records retention requirements with subsequent legislation extending
the statute of limitations for criminal charges and civil enforcement
actions for alleged PPP borrower fraud to ten years after the offense.
DATES:
Effective date: The provisions of this interim final rule are
effective August 22, 2024.
Applicability date: This interim final rule applies to all PPP
lender loan records. This includes PPP loan applications that were
withdrawn, approved, denied or cancelled, and all other PPP lender loan
records for PPP loans with an outstanding balance, PPP loans that have
been forgiven, and PPP loans that are in repayment or have been paid in
full by the borrower as of the effective date of this rule.\1\
---------------------------------------------------------------------------
\1\ To the extent that a federally regulated PPP lender
destroyed any PPP loan records before the effective date of this
rule in accordance with a general internal records retention policy
that was acceptable to the PPP lender's federal regulator, SBA will
not enforce compliance by that federally regulated PPP lender with
respect to the PPP loan records that were destroyed before the
effective date of this rule.
---------------------------------------------------------------------------
Comment date: Comments must be received on or before September 23,
2024.
ADDRESSES: You may submit comments, identified by docket number SBA-
2024-0006 through the Federal eRulemaking Portal: <a href="http://www.regulations.gov">http://www.regulations.gov</a>. Follow the instructions for submitting comments.
[[Page 68091]]
SBA will post all comments on <a href="http://www.regulations.gov">www.regulations.gov</a>. If you wish to
submit confidential business information (CBI) as defined in the User
Notice at <a href="http://www.regulations.gov">www.regulations.gov</a>, please send an email to <a href="/cdn-cgi/l/email-protection#a3d3d3d38ecac5d1e3d0c1c28dc4ccd5"><span class="__cf_email__" data-cfemail="bfcfcfcf92d6d9cdffccddde91d8d0c9">[email protected]</span></a>.
All other comments must be submitted through the Federal eRulemaking
Portal described above. 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 <a href="https://www.sba.gov/tools/local-assistance/districtoffices">https://www.sba.gov/tools/local-assistance/districtoffices</a>. If
you use a telecommunications device for the deaf (TDD) or a text
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-
800-877-8339. Individuals with disabilities can obtain this document in
an accessible format that may be provided in Rich Text Format (RTF) or
text format (txt), a thumb drive, an mp3 file, Braille, large print,
audiotape, or compact disc, or other accessible formats.
SUPPLEMENTARY INFORMATION:
I. Background Information
On March 27, 2020, the Coronavirus Aid, Relief, and Economic
Security Act (CARES Act) (Pub. L. 116-136) was enacted to provide
emergency assistance and health care response for individuals,
families, and businesses affected by the Coronavirus Disease 2019
(COVID-19) pandemic. Section 1102 of the CARES Act temporarily
permitted the Small Business Administration (SBA) to guarantee 100
percent of 7(a) loans made by participating lenders under a new program
titled the ``Paycheck Protection Program'' (PPP), pursuant to section
7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) (First Draw
PPP Loans). Section 1102(F)(ii)(I) of the CARES Act stated that all PPP
lenders were deemed to have been delegated authority by the SBA
Administrator to make and approve PPP loans (15 U.S.C.
636(a)(36)(F)(ii)(I)). Section 1106 of the CARES Act provided for
forgiveness of up to the full principal amount of qualifying loans
guaranteed under the PPP. On April 24, 2020, the Paycheck Protection
Program and Health Care Enhancement Act (Pub. L. 116-139) was enacted,
which provided additional funding and authority for the PPP Program.
On June 5, the Paycheck Protection Program Flexibility Act of 2020
(PPP Flexibility Act) (Pub. L. 116-142) was enacted, 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, Public Law 116-147 extended SBA's authority to guarantee
PPP loans to August 8, 2020.
On December 27, 2020, the Economic Aid to Hard-Hit Small
Businesses, Nonprofits and Venues Act (Economic Aid Act) (Pub. L. 116-
260) was enacted. The Economic Aid Act reauthorized lending under the
PPP through March 31, 2021. The Economic Aid Act added a new temporary
section 7(a)(37) to the Small Business Act, which authorized SBA to
guarantee additional PPP loans (Second Draw PPP Loans) to certain
eligible borrowers that previously received a First Draw PPP Loan under
generally the same terms and conditions available under section
7(a)(36) of the Small Business Act. The Economic Aid Act also
redesignated section 1106 of the CARES Act as section 7A of the Small
Business Act, to appear after section 7 of the Small Business Act.
On March 11, 2021, the American Rescue Plan Act (ARPA) (Pub. L.
117-2) was enacted, and among other things, expanded eligibility for
First Draw PPP Loans and Second Draw PPP Loans. On March 30, 2021, the
PPP Extension Act of 2021 (Pub. L. 117-6) was enacted, extending SBA's
PPP program authority through June 30, 2021.
From April 3, 2020, through August 8, 2020, when the 2020 round of
PPP expired, SBA guaranteed over 5.2 million PPP loans made by over
5,000 PPP lenders under delegated authority. Of the approximately 5,000
lenders that participated in the PPP Program, approximately 4,900 were
federally regulated lenders and several hundred were SBA Supervised
Lenders (as defined in 13 CFR 120.10). From January 11, 2021, when the
PPP reopened, through June 30, 2021, when the PPP program authority
expired, SBA guaranteed over 6.6 million additional PPP loans made by
PPP lenders under delegated authority. Thus, the total number of PPP
loans guaranteed by SBA exceeds 11.8 million.\2\ The total dollar
amount of the PPP loans guaranteed by SBA exceeds $806 billion.
---------------------------------------------------------------------------
\2\ In addition to the approximately 11.8 million loans
guaranteed by SBA, there were also loans where the borrower's
application was withdrawn by the borrower, declined by the PPP
lender, or the PPP lender cancelled the loan guaranty.
---------------------------------------------------------------------------
Because the approximately 5,000 PPP lenders processed PPP loans
under the delegated authority provided by the CARES Act, the PPP
lenders were responsible for obtaining loan applications and supporting
documentation and preparing the loan note and other closing
documentation. The PPP lenders were not required to provide SBA with
copies of the loan origination and closing documentation, but instead
when the PPP lenders applied to SBA for the issuance of a PPP loan
number, the PPP lenders were required to certify that they would retain
those documents in their files. See, SBA Form 2484 (Lender's
Application--Paycheck Protection Program Loan Guaranty) and SBA Form
2484-SD (Lender's Application--Second Draw Loan Guaranty). The forms
did not specify the length of time required to retain documents in
their files.
SBA posted the first interim final rule implementing the PPP on
SBA's website on April 2, 2020, and published the rule in the Federal
Register on April 15, 2020 (85 FR 20811). SBA subsequently issued
numerous additional interim final rules. In particular, on February 5,
2021, SBA published an interim final rule implementing Economic Aid Act
changes related to the forgiveness and review of PPP loans (86 FR 8283)
(Consolidated Forgiveness and Loan Review IFR).
On August 5, 2022, President Biden signed the PPP and Bank Fraud
Enforcement Harmonization Act of 2022 (Harmonization Act) (Pub. L. 117-
166). The Harmonization Act amends section 7(a) of the Small Business
Act to provide, for both First Draw PPP Loans and Second Draw PPP
Loans, that notwithstanding any other provision of law, any criminal
charge or civil enforcement action alleging that a borrower engaged in
fraud with respect to a PPP loan guaranteed by SBA shall be filed not
later than 10 years after the offense was committed. The Harmonization
Act was necessitated by the unprecedented volume of PPP loans, law
enforcement estimates of the amount of fraud associated with these
loans, and the tremendous strain on law enforcement resources in
dealing not only with PPP Program fraud, but fraud in the other COVID-
19 pandemic assistance programs administered by SBA and other Federal
agencies.\3\
---------------------------------------------------------------------------
\3\ On August 5, 2022, President Biden also signed the COVID-19
EIDL Fraud Statute of Limitations Act of 2022 extending the statute
of limitations for criminal or civil enforcement actions alleging
that a borrower engaged in fraud in SBA's COVID EIDL disaster loan
program, EIDL Advance program and Targeted EIDL Advance program to
not later than ten years after the offense was committed.
---------------------------------------------------------------------------
SBA, with support from the Department of Justice (DOJ) and SBA's
Office of Inspector General (OIG), which
[[Page 68092]]
are charged with investigating and prosecuting PPP fraud, is seeking to
harmonize the records retention requirements applicable to PPP lenders
by extending those requirements so that they are consistent with
expanded statute of limitations in the Harmonization Act.
As of December 31, 2023, U.S. Attorneys' Offices had criminally
charged approximately 3,500 defendants in 2,388 pandemic fraud related
cases, of which approximately 2,005 defendants had pleaded guilty or
been convicted at trial.\4\ The fraud loss associated with these
completed cases is more than $1.2 billion. While not all of the cases
were related to the PPP Program, a substantial number were, and the
U.S. Attorneys' Offices have a similar number of investigations open
that are yet to be charged. Further, more than $1.4 billion in seizures
and forfeiture orders have been issued to recover stolen CARES Act
funds.
---------------------------------------------------------------------------
\4\ See, COVID-19 Fraud Enforcement Task Force 2024 Report
(April 2024), <a href="https://www.justice.gov/coronavirus/media/1347161/dl?inline">https://www.justice.gov/coronavirus/media/1347161/dl?inline</a>.
---------------------------------------------------------------------------
To date, the DOJ Civil Frauds Division has opened more than 800 new
investigations relating to potential civil fraud enforcement in
connection with the PPP Program. These include investigations
implicating more than 5,000 individuals and entities and billions of
dollars in pandemic relief funds. To date, DOJ has obtained more than
450 civil settlements and judgments relating to the PPP Program,
totaling more than $200 million. The number of civil fraud
investigations relating to PPP borrowers has grown in volume every year
since 2020, and DOJ believes that trend is likely to continue.
Extending the PPP lender records retention requirements will ensure
that PPP loan records remain available to law enforcement while they
continue to investigate and prosecute PPP fraud during the expanded
ten-year statute of limitations period authorized by the Harmonization
Act.
II. Current SBA Records Retention Requirements for PPP Lenders
The Consolidated Forgiveness and Loan Review IFR sets forth the
current SBA records retention requirements for PPP lenders as follows:
Lenders must comply with applicable SBA requirements for records
retention, which for federally regulated lenders means compliance with
the requirements of their federal financial institution regulator and
for SBA supervised lenders (as defined in 13 CFR 120.10 and including
PPP lenders with authority under SBA Form 3507) means compliance with
13 CFR 120.461. (86 FR 8283, 8295). These records retention
requirements apply to all PPP loan records, including First Draw PPP
Loans and Second Draw PPP Loans.
The records retention requirements in 13 CFR 120.461 for SBA
Supervised Lenders provide as follows:
<bullet> Other preservation of records. An SBA Supervised Lender
must preserve for at least 6 years following final disposition of each
individual SBA loan:
All applications for financing;
Lending, participation, and escrow agreements;
Financing instruments; and
[cir] All other documents and supporting material relating to such
loans, including correspondence.
Id.
As noted previously, several hundred SBA Supervised Lenders
participated in the PPP Program. An SBA Supervised Lender is defined in
13 CFR 120.10 as a 7(a) Lender that is either a Small Business Lending
Company or a NFRL. A 7(a) Lender is defined in 13 CFR 120.10 as an
institution that has executed a participation agreement with SBA under
the guaranteed loan program.\5\ A Small Business Lending Company (SBLC)
is defined in 13 CFR 120.10 as a non-depository lending institution
that is SBA-licensed and is authorized by SBA to make loans pursuant to
section 7(a) of the Small Business Act and loans to Intermediaries in
SBA's Microloan program. An NFRL or Non-Federally Regulated Lender is
defined in 13 CFR 120.10 as a business concern that is authorized by
the SBA to make loans under section 7(a) and is subject to regulation
by a state but whose lending activities are not regulated by a federal
financial institution regulator. Many of the several hundred SBA
Supervised Lenders that participated in the PPP Program did so under
their existing SBA Form 750 (Loan Guaranty Agreement (Deferred
Participation)) or SBA Form 750CA (Community Advantage Pilot Program
Loan Guaranty Agreement (Deferred Participation)). Other SBA Supervised
Lenders participated in PPP by signing an SBA Form 3507 (CARES Act
Section 1102 Lender Agreement--Non-Bank and Non-Insured Depository
Institution Lenders).\6\
---------------------------------------------------------------------------
\5\ Because PPP is authorized under section 7(a) of the Small
Business Act, all lenders participating in the PPP Program are 7(a)
Lenders.
\6\ SBA Form 3507 lenders included numerous fintechs.
---------------------------------------------------------------------------
The overwhelming majority of lenders that participated in the PPP
Program are not SBA Supervised Lenders. Instead, they are federally
regulated lenders. The approximately 4,900 federally regulated lenders
that participated in the PPP Program included those PPP lenders
regulated by the Federal Deposit Insurance Corporation, the Federal
Reserve, the Office of the Comptroller of the Currency, the National
Credit Union Administration, and the Farm Credit Administration. Many
of these federally regulated lenders participated in PPP under their
existing SBA Form 750 (Loan Guaranty Agreement (Deferred
Participation)). Other federally regulated lenders participated in PPP
by signing an SBA Form 3506 (CARES Act Section 1102 Lender Agreement).
Under the Consolidated Forgiveness and Loan Review IFR, federally
regulated lenders that participated in the PPP Program are currently
required to retain their PPP loan records in accordance with the
records retention requirements imposed by their federal financial
institution regulator. SBA has determined that there do not appear to
be any consistent or specific time requirements imposed by federal
financial institution regulators that are applicable to PPP records
retention as a whole. Instead, federally regulated PPP lenders may
implement and follow general internal records retention policies that
are acceptable to their regulators. It is likely that many of these
general internal records retention policies allow for periodic
destruction of certain records after a loan is paid in full, which for
PPP would include payment in full through forgiveness or otherwise.\7\
SBA has been making forgiveness payments to lenders on PPP loans since
late 2020, so there is considerable time sensitivity associated with
the need to extend the current PPP records retention requirements for
federally regulated lenders.
---------------------------------------------------------------------------
\7\ See, e.g., 12 CFR part 749, Appendix A.
---------------------------------------------------------------------------
This interim final rule extends the records retention requirements
for all PPP lenders to ten years from the date of final disposition of
each individual PPP loan.
III. Interim Final Rule With Immediate Effective Date
This interim final rule is being issued without advance notice and
public comment because section 1114 of the CARES Act and section 303 of
the Economic Aid Act authorize SBA to issue regulations to implement
the PPP Program without regard to notice requirements. Congress
designed the PPP as a temporary emergency program, and the issuance of
this interim final rule under the statutory rulemaking
[[Page 68093]]
authority in the CARES Act and the Economic Aid Act is consistent with
Congressional intent.
SBA finds good cause for forgoing the advance notice-and-public-
comment procedure because that procedure would be impracticable. The
earliest PPP loan was made in April 2020 and SBA began forgiving PPP
loans in late 2020, so it is urgent that the PPP lender records
retention requirements be extended to prevent the lapse of records
retention requirements for and potential destruction of PPP records by
federally regulated lenders that could result in the loss of records
that need to be preserved for law enforcement purposes. As noted
previously, the overwhelming majority of PPP lenders are federally
regulated lenders. Under the Consolidated Forgiveness and Loan Review
IFR, those approximately 4,900 lenders are currently required to follow
the records retention requirements of their federal financial
institution regulators. SBA has determined that there do not appear to
be any consistent or specific time requirements imposed by federal
financial institution regulators that are applicable to PPP records
retention as a whole. Instead, federally regulated PPP lenders may
implement and follow general internal records retention policies that
are acceptable to their regulators. It is likely that many of these
general internal records retention policies allow for periodic
destruction of certain records after a loan is paid in full, which for
PPP would include payment in full through forgiveness or otherwise.
Since SBA began making forgiveness payments to PPP lenders starting in
late 2020, it is urgent that the current PPP records retention
requirements be extended to prevent the destruction of PPP loan
records.
Additionally, advising PPP lenders of the extended records
retention requirement expeditiously will allow those lenders to adjust
their systems and processes as soon as possible in order to comply with
the newly extended records retention period. If SBA were to follow the
advance notice-and-public-comment process, that would delay issuance of
the rule by at least three months, during which time records that need
to be preserved for law enforcement purposes are at risk of loss.
For related reasons, SBA has determined that there is good cause to
make this rule effective immediately. 5 U.S.C. 553(d)(3). An immediate
effective date will prevent potential loss of records that need to be
preserved for law enforcement purposes. Given the urgent need to
preserve PPP loan records for law enforcement purposes, SBA has
determined that it is impractical and not in the public interest to
provide a delayed effective date. An immediate effective date will
allow PPP lenders to adjust their systems and processes to prevent the
loss of PPP loan records that need to be preserved for law enforcement
purposes. In this rule, SBA is not imposing a new requirement on PPP
lenders, rather SBA is extending an existing requirement of records
retention. The systems and process that will need to be adjusted are
those that prevent the periodic destruction of records, and SBA
believes that PPP lenders do not need a delayed effective date to make
these adjustments.
Although this interim final rule is effective immediately, comments
are solicited from interested members of the public on all aspects of
the interim final rule. These comments must be submitted on or before
September 23, 2024. SBA will consider these comments and the need for
making any revisions as a result of these comments.
IV. Revisions to Prior PPP Rule
To harmonize the PPP lender records retention requirements with the
ten-year PPP fraud statute of limitations in the Harmonization Act, SBA
is extending the records retention requirements for all PPP lenders to
ten years from the date of final disposition of each individual PPP
loan. The extended records retention requirements apply equally to
federally regulated lenders (including lenders that executed an SBA
Form 3506) and SBA Supervised Lenders (including lenders that executed
an SBA Form 3507).
Therefore, the following change is made to the Consolidated
Forgiveness and Loan Review IFR:
The last paragraph of Part V.1.c. of the Consolidated Forgiveness
and Loan Review IFR (86 FR 8283, 8295) is revised to read as follows:
1. SBA Reviews of Individual PPP Loans
* * *
c. When will SBA undertake a loan review?
* * *
All PPP lenders must preserve for at least 10 years following final
disposition of each individual PPP loan:
i. All applications for financing (including applications for
withdrawn, approved, declined and cancelled loans);
ii. Lending, participation, and escrow agreements;
iii. Financing instruments; and
iv. All other documents and supporting material relating to such
loans, including correspondence.
V. Additional Information
SBA may provide further guidance, if needed, through SBA notices
that will be posted on SBA's website at <a href="http://www.sba.gov">www.sba.gov</a>. Questions on the
PPP Program may be directed to the Lender Relations Specialist in the
local SBA Field Office. The local SBA Field Office may be found at
<a href="https://www.sba.gov/tools/local-assistance/districtoffices">https://www.sba.gov/tools/local-assistance/districtoffices</a>.
Compliance With Executive Orders 12866, 12988, 13132 and 13563, the
Congressional Review Act, the Administrative Procedure Act, the
Paperwork Reduction Act (44 U.S.C. Ch. 35), and the Regulatory
Flexibility Act (5 U.S.C. 601-612)
Executive Orders 12866 and 13563
OMB's Office of Information and Regulatory Affairs (OIRA) has
determined that this interim final rule is significant for the purposes
of Executive Orders 12866 and 13563. 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 preserve the PPP lender
records for law enforcement purposes.
This rule is necessary to prevent the loss of PPP loan records
during the expanded statute of limitations period under the
Harmonization Act. SBA anticipates that this rule will result in
substantial benefits to law enforcement. As discussed above, as of
December 31, 2023, DOJ has prosecuted thousands of cases of pandemic-
related criminal fraud involving over a billion dollars in fraud loss.
DOJ has a similar number of investigations that are open and yet to be
charged. There have also been over a billion dollars in seizures and
forfeitures issued in connection with stolen CARES Act funds. Further,
the DOJ Civil Frauds Division has over 800 pending investigations for
civil fraud enforcement actions related to the PPP Program, involving
thousands of individuals and entities and billions of dollars in
losses. DOJ believes that the numbers of these civil fraud
investigations will continue to grow.
Extending the records retention requirements for PPP loan records
will provide a substantial benefit to the government and the public by
preserving records to allow law enforcement to continue to investigate
and prosecute these criminal and civil fraud cases and recover taxpayer
funds that were wrongfully obtained by these individuals and entities.
In this rule, SBA is not imposing new records retention
requirements on the PPP lenders. Instead, SBA is extending existing
records retention requirements
[[Page 68094]]
for an additional period of time to allow continued investigation and
prosecution of criminal and civil fraud cases. For this reason, SBA
expects the costs incurred by PPP lenders due to the expanded records
retention requirements to be de minimis.
Congressional Review Act and Administrative Procedure Act
The Congressional Review Act, 5 U.S.C. 801 et seq., as amended by
the Small Business Regulatory Enforcement Fairness Act of 1996,
generally provides a major rule cannot take effect until 60 days after
it is published in the Federal Register. This rulemaking has been
reviewed and determined by OMB not to be a ``major rule'' under 5
U.S.C. 804(2).
As explained above, SBA has found good cause to bypass the
Administrative Procedure Act's notice-and-comment and 30-day effective
date delay requirements. 5 U.S.C. 553(b)(B), (d)(3).
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 require revisions to
existing recordkeeping or reporting requirements of the PPP Program
information collection, OMB Control Number 3245-0407. The revisions
will have a de minimis effect on the costs associated with PPP lender
recordkeeping. SBA has requested Office of Management and Budget (OMB)
emergency approval of the revisions to the PPP lender recordkeeping
requirements to prevent the loss of PPP loan records.
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 Administrative Procedure Act 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.
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. Since this rule is
exempt from notice and comment, SBA is not required to conduct a
regulatory flexibility analysis.
Authority: 15 U.S.C. 636(a)(36); 15 U.S.C. 636(a)(37); and 15
U.S.C. 636m; Coronavirus Aid, Relief, and Economic Security Act,
Pub. L. 116-136, section 1114, and Economic Aid to Hard-Hit Small
Businesses, Nonprofits, and Venues Act, Pub. L. 116-260, section
303; PPP and Bank Fraud Enforcement Harmonization Act of 2022, Pub.
L. 117-166.
Isabella Casillas Guzman,
Administrator.
[FR Doc. 2024-18083 Filed 8-22-24; 8:45 am]
BILLING CODE 8026-09-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on August 23, 2024.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.