[Federal Register Volume 85, Number 73 (Wednesday, April 15, 2020)]
[Rules and Regulations]
[Pages 20817-20821]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07673]
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SMALL BUSINESS ADMINISTRATION
13 CFR Part 121
[Docket No. SBA-2020-0019]
RIN 3245-AH35
Business Loan Program Temporary Changes; Paycheck Protection
Program
AGENCY: U.S. Small Business Administration.
ACTION: Interim final rule.
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SUMMARY: Elsewhere in this issue of the Federal Register, the U.S.
Small Business Administration (SBA) is publishing an interim final rule
(the Initial Rule) announcing the implementation of sections 1102 and
1106 of the Coronavirus Aid, Relief, and Economic Security Act (CARES
Act or the Act). Section 1102 of the Act temporarily adds a new
program, titled the ``Paycheck Protection Program,'' to the SBA's 7(a)
Loan 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. The Paycheck Protection Program and loan
forgiveness are intended to provide economic relief to small businesses
nationwide adversely impacted by the Coronavirus Disease 2019 (COVID-
19). This interim final rule supplements the Initial Rule with
additional guidance regarding the application of certain affiliate
rules applicable to SBA's implementation of sections 1102 and 1106 of
the Act and requests public comment.
DATES:
Effective date: This interim final rule is effective April 15,
2020.
Applicability date: This interim final rule applies to applications
submitted under the Paycheck Protection Program through June 30, 2020,
or until funds made available for this purpose are exhausted.
[[Page 20818]]
Comment Date: Comments must be received on or before May 15, 2020.
ADDRESSES: You may submit comments, identified by number SBA-2020-0019
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: 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, are being
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, are being 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 2, 2020, SBA issued an
interim final rule (the Initial Rule) announcing the implementation of
sections 1102 and 1106 of the Act. A more detailed discussion of
sections 1102 and 1106 of the Act is found in section III of the
Initial Rule.
This interim final rule supplements the Initial Rule with
additional guidance regarding the application of certain affiliate
rules applicable to SBA's implementation of sections 1102 and 1106 of
the Act and requests public comment.
II. Comments and Immediate Effective Date
The intent of the Act is that SBA provide relief to America's small
businesses expeditiously. This intent, along with the dramatic decrease
in economic activity nationwide, provides good cause for SBA to
dispense with the 30-day delayed effective date provided in the
Administrative Procedure Act (5 U.S.C. 553(b)(3)(B)). Specifically,
small businesses need to be informed on how to apply for a loan and the
terms of the loan under section 1102 of the Act as soon as possible
because the last day to apply for and receive a loan is June 30, 2020.
The immediate effective date of this interim final rule will benefit
small businesses so that they can immediately apply for the loan with a
better understanding of loan terms and conditions. This interim final
rule is effective without advance notice and public comment because
section 1114 of the Act authorizes SBA to issue regulations to
implement Title 1 of the Act without regard to notice requirements.
This rule is being issued to allow for immediate implementation of this
program. 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 May 15, 2020. The SBA will consider these comments and the
need for making any revisions as a result of these comments.
III. Affiliate Rules for Paycheck Protection Program
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 the
Paycheck Protection Program (PPP). Loans under the PPP will be 100
percent guaranteed by SBA, and the full principal amount of the loans
may qualify for loan forgiveness. Additional information about the PPP
is available in the Initial Rule.
1. Affiliation Rules Generally
Are affiliates considered together for purposes of determining
eligibility?
In most cases, a borrower will be considered together with its
affiliates for purposes of determining eligibility for the PPP.\1\
Under SBA rules, entities may be considered affiliates based on factors
including stock ownership, overlapping management,\2\ and identity of
interest. 13 CFR 121.301.
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\1\ Section 7(a)(36)(D)(iv) of the Small Business Act (15 U.S.C.
636(a)(36)(D)(iv), as added by the Act, waives the affiliation rules
contained in Sec. 121.103 for (1) any business concern with not
more than 500 employees that, as of the date on which the loan is
disbursed, is assigned a North American Industry Classification
System code beginning with 72; (2) any business concern operating as
a franchise that is assigned a franchise identifier code by the
Administration; and (3) any business concern that receives financial
assistance from a company licensed under section 301 of the Small
Business Investment Act of 1958 (15 U.S.C. 681). This interim final
rule has no effect on these statutory waivers, which remain in full
force and effect. As a result, the affiliation rules contained in
section 121.301 also do not apply to these types of entities.
\2\ In order to help potential borrowers identify other
businesses with which they may be deemed to be affiliated under the
common management standard, the Borrower Application Form, SBA Form
2483, released on April 2, 2020, requires applicants to list other
businesses with which they have common management. The information
supplied by the applicant in response to that information request
should be used by applicants as they assess whether they have
affiliates that should be included in their number of employees
reported on SBA Form 2483.
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How do SBA's affiliation rules affect my eligibility and apply to me
under the PPP?
An entity generally is eligible for the PPP if it, combined with
its affiliates, is a small business as defined in section 3 of the
Small Business Act (15 U.S.C. 632), or (1) has 500 or fewer employees
whose principal place of residence is in the United States or is a
business that operates in a certain industry and meets applicable SBA
employee-based size standards for that industry, and (2) is a
[[Page 20819]]
tax-exempt nonprofit organization described in section 501(c)(3) of the
Internal Revenue Code (IRC), a tax-exempt veterans organization
described in section 501(c)(19) of the IRC, a Tribal business concern
described in section 31(b)(2)(C) of the Small Business Act, or any
other business concern. Prior to the Act, the nonprofit organizations
listed above were not eligible for SBA Business Loan Programs under
section 7(a) of the Small Business Act; only for-profit small business
concerns were eligible. The Act made such nonprofit organizations not
only eligible for the PPP, but also subjected them to SBA's affiliation
rules. Specifically, section 1102 of the Act provides that the
provisions applicable to affiliations under 13 CFR 121.103 apply with
respect to nonprofit organizations and veterans organizations in the
same manner as with respect to small business concerns. However, the
detailed affiliation standards contained in Sec. 121.103 currently do
not apply to PPP borrowers, because Sec. 121.103(a)(8) provides that
applicants in SBA's Business Loan Programs (which include the PPP) are
subject to the affiliation rule contained in 13 CFR 121.301.
2. Faith-Based Organizations
This rule exempts otherwise qualified faith-based organizations
from the SBA's affiliation rules, including those set forth in 13 CFR
part 121, where the application of the affiliation rules would
substantially burden those organizations' religious exercise. This
exemption is required, or at a minimum authorized, by the Religious
Freedom Restoration Act (RFRA) (Pub. L. 103-141), which provides that
the ``[g]overnment shall not substantially burden a person's exercise
of religion'' unless the government can ``demonstrate[] that
application of the burden'' to the person is both ``in furtherance of a
compelling governmental interest'' and ``the least restrictive means of
furthering that compelling governmental interest.'' 42 U.S.C. 2000bb-1.
A substantial burden under RFRA includes both government action
that compels a person to violate his sincere religious beliefs or
suffer a penalty, see, e.g., Burwell v. Hobby Lobby Stores, Inc., 573
U.S. 682, 726 (2014), and the imposition of a substantial burden
through ``indirect'' measures. Thomas v. Review Bd. of Ind. Emp. Sec.
Div., 450 U.S. 707, 717-18 (1981). Notably, the government imposes a
substantial burden on religious exercise when it ``conditions receipt
of an important benefit upon conduct proscribed by a religious faith,
or where it denies such a benefit because of conduct mandated by
religious belief.'' Id. at 718. For example, in Sherbert v. Verner, 374
U.S. 398 (1963), a State denied the plaintiff unemployment benefits
because she would not work on Saturday, the Sabbath of her faith. Id.
at 400-01. Even though no ``sanctions directly compel[led]'' her to
work on Saturday, the Supreme Court held that the State's denial of
benefits ``puts the same kind of burden upon the free exercise of
religion as would a fine imposed against [her] for her Saturday
worship.'' Id. at 404. As the Court observed, the State's framework
``forces her to choose between following the precepts of her religion
and forfeiting benefits, on the one hand, and abandoning one of the
precepts of her religion in order to accept work, on the other hand.''
Id. Consistent with these precedents, RFRA explicitly contemplates that
``the denial of government funding, benefits, or exemptions'' may
violate its protections. 42 U.S.C. 2000bb-4.
SBA is aware of the existence of faith-based organizations that
would qualify for relief under the CARES Act but for their affiliation
with other entities as an aspect of their religious practice. Supreme
Court precedent has long recognized that the organizational structure
of faith-based entities may itself be a matter of significant religious
concern and that faith-based organizations are therefore guaranteed the
``power to decide for themselves, free from state interference, matters
of church government as well as those of faith and doctrine.'' Kedroff
v. St. Nicholas Cathedral of Russian Orthodox Church in N. Am., 344
U.S. 94, 116 (1952). Moreover, an assessment of the extent to which
questions concerning religious polity rest upon theological or other
religious foundations presents particular difficulties, for the First
Amendment ``forbids civil courts'' from ``the interpretation of
particular church doctrines and the importance of those doctrines to
the religion.'' Presbyterian Church v. Mary Elizabeth Blue Hull Mem'l
Presbyterian Church, 393 U.S. 440, 450 (1969). A number of faith-based
organizations understand their affiliation with other religious
entities as a part of their exercise of religion, as a mandate given
the ``hierarchical or connectional'' structure of their church, Jones
v. Wolf, 443 U.S. 595, 597 (1979), or as an expression of their sincere
religious belief. Cf. 1 W. Cole Durham & Robert Smith, Religious
Organizations and the Law section 8.19 (Westlaw rev. ed. 2017)
(``Religious organizations, such as parishes or mission centers,
normally tend to choose the civil-property-holding structures that most
closely mirror their own ecclesiology or polity.''). Either affiliation
decision falls within the definition of ``religious exercise'' that
applies to RFRA, which ``includes any exercise of religion, whether or
not compelled by, or central to, a system of religious belief.'' See 42
U.S.C. 2000cc-5(7)(A); 2000bb-2(4) (``the term `exercise of religion'
means religious exercise, as defined in section 2000cc-5 of this
title'').
As applied to these faith-based organizations, the affiliation
rules would impose a substantial burden. The affiliation rules would
deny an important benefit (participation in a program for which they
would otherwise be eligible under the CARES Act) because of the
exercise of sincere religious belief (affiliation with other religious
entities).
The Administrator has also concluded that she does not have a
compelling interest in denying emergency assistance to faith-based
organizations that are facing the same economic hardship to which the
CARES Act responded and who would be eligible for PPP but for their
faith-based organizational and associational decisions. This conclusion
is reinforced by the fact that the affiliation rules already contain
numerous exemptions, see generally 13 CFR 121.103(b), ranging from
``[b]usiness concerns owned and controlled by Indian Tribes, Alaska
Native Corporations, [and] Native Hawaiian Organizations,'' id. Sec.
121.103(b)(2)(i) to ``member shareholders of a small agricultural
cooperative.'' Id. Sec. 121.103(b)(7). In light of these exemptions,
it is difficult to maintain that denying relief to these faith-based
organizations is necessary to further a compelling government interest,
let alone the least restrictive means of doing so. See Church of the
Lukumi Babalu Aye, Inc. v. City of Hialeah, 508 U.S. 520, 547 (1993)
(``[A] law cannot be regarded as protecting an interest of the highest
order when it leaves appreciable damage to that supposedly vital
interest unprohibited.'') (cleaned up); Gonzales v. O Centro Espirita
Beneficiente Uniao do Vegetal, 546 U.S. 418, 433 (2006) (applying same
principle under RFRA). SBA accordingly must exempt faith-based
organizations that would otherwise be disqualified from the PPP based
on features of those organizations' affiliations that are a matter of
sincere religious exercise as defined in 42 U.S.C. 2000bb-2.
This action is also supported by 15 U.S.C. 634(b)(6), which
authorizes the Administrator to ``make such rules and regulations as he
deems necessary to
[[Page 20820]]
carry out the authority vested in him by or pursuant to this chapter.''
As relevant here, the CARES Act expanded eligibility for the covered
loans during the covered period for nonprofit organizations that employ
not more than 500 employees or, if applicable, the size standard in
number of employees established by the Administrator for the industry
in which the nonprofit organization operates. 15 U.S.C.
636(a)(36)(D)(i). That expansion posed unique concerns for the
Administrator, who is tasked with applying the ``provisions applicable
to affiliations under section 121.103 of title 13, Code of Federal
Regulations, or any successor thereto, . . . with respect to a
nonprofit organization and a veterans organizations in the same manner
as with respect to a small business concern.'' Id. 636(a)(36)(D)(vi).
Although these rules may easily be applied to faith-based organizations
in many cases, their application to certain faith-based organizations
presents significant challenges, in particular because of the large
number of faith-based organizations who would now be eligible for the
PPP but for their religious exercise.
As discussed above, carrying the affiliation rules over to all
faith-based organizations without modification would raise concerns
under RFRA. Moreover, application of the affiliation rules, which, for
example, provide for assessment of whether one faith-based organization
``controls or has the power to control'' another organization, 13 CFR
121.103(a)(1), could involve SBA in questions of church governance
concerning ``the allocation of power within a (hierarchical) church so
as to decide . . . religious law (governing church polity),'' in
violation of the First Amendment. Serbian E. Orthodox Diocese for the
U.S.A. & Canada v. Milivojevich, 426 U.S. 696, 709 (1979) (internal
quotation marks omitted)). Finally, affiliation rules developed in the
context of for-profit enterprises present significant administrative
difficulties where faith-based organizations are concerned. For
example, ``the notion of corporate subsidiarity or affiliation in civil
law is entirely foreign to the polity of religious organizations,'' and
there is a significant risk that civil authorities will
``mischaracterize or misinterpret the polity of a religious body.'' 1
W. Cole Durham & Robert Smith, Religious Organizations and the Law
sections 8.19, 8.21 (discussing examples of judicial
mischaracterizations). Consistent with these concerns, it is also
notable that other areas of federal law approach issues analogous to
affiliation differently for religious organizations. See, e.g., 26
U.S.C. 512 (b)(12).
For these reasons, in addition to the RFRA mandate, the
Administrator has determined that it is appropriate to exercise the
authority granted under 15 U.S.C. 634(b)(6) to exempt from application
of SBA's affiliation rules faith-based organizations that would
otherwise be disqualified from participation in PPP because of
affiliations that are a part of their religious exercise.
Accordingly, the SBA's affiliation rules, including those set forth
in 13 CFR part 121, do not apply to the relationship of any church,
convention or association of churches, or other faith-based
organization or entity to any other person, group, organization, or
entity that is based on a sincere religious teaching or belief or
otherwise constitutes a part of the exercise of religion. This includes
any relationship to a parent or subsidiary and other applicable aspects
of organizational structure or form. A faith-based organization seeking
loans under this program may rely on a reasonable, good faith
interpretation in determining whether its relationship to any other
person, group, organization, or entity is exempt from the affiliation
rules under this provision, and SBA will not assess, and will not
require participating lenders to assess, the reasonableness of the
faith-based organization's determination.
3. Additional Information
SBA may provide further guidance, if needed, through SBA notices
and a program guide which will be posted on SBA's website at
www.sba.gov.
Questions on the Paycheck Protection Program 7(a) Loans 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, 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 impose recordkeeping or
reporting requirements under the Paperwork Reduction Act (``PRA''). SBA
has obtained emergency approval under OMB Control Number 3245-0407 for
the information collection (IC) required to implement the program
described above. This IC consists of Form 2483 (Paycheck Protection
Program Application Form) and SBA Form 2484 (Paycheck Protection
Program Lender's Application for 7(a) Loan Guaranty) SBA Form 3506
(CARES Act Section 1102 Lender Agreement), and SBA Form 3507 (CARES Act
Section 1102 Lender Agreement--Non-Bank and Non-Insured Depository
Institution Lender). The collection is approved for use until October
31, 2020.
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
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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 Ac. Ch.1. p.9. Accordingly, SBA is not
required to conduct a regulatory flexibility analysis.
List of Subjects in 13 CFR Part 121
Administrative practice and procedure, Authority delegations
(Government agencies), Intergovernmental relations, Investigations,
Reporting and recordkeeping requirements.
For the reasons stated in the preamble, the Small Business
Administration amends 13 CFR part 121 as set forth below:
PART 121--SMALL BUSINESS SIZE REGULATIONS
0
1. The authority citation for part 121 is revised to read as follows:
Authority: 15 U.S.C. 632, 634(b)(6), 636(a)(36), 662, and
694a(9); Pub. L. 116-136, Section 1114.
0
2. Amend Sec. 121.103 by adding paragraph (b)(10) to read as follows:
Sec. 121.103 How does SBA determine affiliation?
* * * * *
(b) * * *
(10)(i) The relationship of a faith-based organization to another
organization is not considered an affiliation with the other
organization under this subpart if the relationship is based on a
religious teaching or belief or otherwise constitutes a part of the
exercise of religion. In addition, the eligibility criteria set forth
in 15 U.S.C. 636(a)(36)(D) are satisfied for any faith-based
organization having not more than 500 employees (including individuals
employed on a full-time, part-time, or other basis) that pays Federal
payroll taxes using its own Internal Revenue Service Employer
Identification Number (EIN) or that would support a deduction under the
second sentence of 26 U.S.C. 512(b)(12) if the organization generated
unrelated business taxable income. For purposes of this paragraph
(b)(10), the term ``faith-based organization'' includes, but is not
limited to, any organization associated with a church or convention or
association of churches within the meaning of 26 U.S.C. 414(e)(3)(D).
The term ``organization'' has the meaning given in 26 U.S.C.
414(m)(6)(A). The terms ``church'' and ``convention or association of
churches'' have the same meaning that they have in 26 U.S.C. 414.
(ii) No specific process or filing is necessary to claim the
benefit of the exemption in paragraph (b)(10)(i) of this section. In
applying for a loan under the Paycheck Protection Program (PPP), a
faith-based organization may make all necessary certifications with
respect to common ownership or management or other eligibility criteria
based upon affiliation, if the organization would be an eligible
borrower but for application of SBA affiliation rules and if the
organization falls within the terms of the exemption described in
paragraph (b)(10)(i) of this section. If a faith-based organization
indicates any relationship that may pertain to affiliation, such as
ownership of, ownership by, or common management with any other
organization, on or in connection with a loan application, and if the
faith-based organization applying for a loan falls within the terms of
the exemption described in paragraph (b)(10)(i) of this section with
respect to that relationship, the faith-based organization may indicate
on a separate sheet that it is entitled to the exemption. That sheet
may be identified as addendum A, and no further listing of the other
organization or description of the relationship to that organization is
required. See appendix A to this part for a sample ``Addendum A'', but
the format need not be used as long as the substance is the same.
* * * * *
0
3. Add appendix A to part 121 to read as follows:
Appendix A to Part 121--Paycheck Protection Program Sample Addendum A
[Sample]
ADDENDUM A
[check] The Applicant claims an exemption from all SBA affiliation
rules applicable to Paycheck Protection Program loan eligibility
because the Applicant has made a reasonable, good faith determination
that the Applicant qualifies for a religious exemption under 13 CFR
121.103(b)(10), which says that ``[t]he relationship of a faith-based
organization to another organization is not considered an affiliation
with the other organization . . . if the relationship is based on a
religious teaching or belief or otherwise constitutes a part of the
exercise of religion.''
Jovita Carranza,
Administrator.
[FR Doc. 2020-07673 Filed 4-10-20; 4:15 pm]
BILLING CODE P