[Federal Register Volume 85, Number 135 (Tuesday, July 14, 2020)]
[Notices]
[Pages 42479-42480]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15145]


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SMALL BUSINESS ADMINISTRATION


Data Collection Available for Public Comments

ACTION: 60-Day notice and request for comments.

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SUMMARY: The Small Business Administration (SBA) intends to request 
approval, from the Office of Management and Budget (OMB), for the 
collection of information described below. The Paperwork Reduction Act 
(PRA) of 1995 requires federal agencies to publish a notice in the 
Federal Register concerning each collection of information before 
submission to OMB and to allow 60 days for public comment in response 
to the notice. This notice complies with that requirement.

DATES: Submit comments on or before September 14, 2020.

ADDRESSES: Send all comments to the U.S. Small Business 
Administration's Office of Financial Assistance dedicated email box at 
[email protected].

FOR FURTHER INFORMATION CONTACT: Gregorius Suryardi, Financial and Loan 
Specialist, Office of Financial Assistance at 
[email protected] or Mary Frias, Loan Specialist, Office of 
Financial Assistance at [email protected] or Curtis B. Rich, 
Management Analyst, (202) 205-7030, [email protected].

SUPPLEMENTARY INFORMATION: Section 1102 of the Coronavirus Aid, Relief, 
and Economic Security (CARES) Act, Public Law 116-136 (3/27/2020), 
authorized SBA to guarantee loans made by banks or other financial 
institutions under a new temporary program titled the ``Paycheck 
Protection Program'' (PPP). These loans are available to eligible small 
businesses; certain non-profit organizations, veterans' organizations, 
and Tribal business concerns; independent contractors; and self-
employed individuals adversely impacted by the COVID-19 emergency. 
Proceeds of a PPP loan may be used for payroll costs, including costs 
related to the continuation of group health care benefits during 
periods of paid sick, medical or family leave, and insurance premiums; 
rent payments; mortgage interest payments, and payments of interest on 
other debt incurred prior to February 15, 2020, and to refinance 
certain SBA Economic Injury Disaster Loans received between January 31, 
2020 and April 3, 2020 or used for the same purpose. Under section 
1106(b) of the CARES Act, a loan may be forgiven in full or in part if 
the small business uses the proceeds for payroll costs, payment of 
interest on a covered mortgage, payment on any covered rent obligation, 
and any covered utility payment.
    In order to make the financial assistance available as 
expeditiously as possible after the PPP was authorized, SBA obtained 
emergency approval, including waiver of the 60-day public comment 
notice, of the information collection necessary to implement the 
program. That approval will expire on October 30, 2020. SBA will 
request OMB's approval to extend this expiration date to enable the 
agency to remain in compliance with the PRA as it continues to collect 
information from the PPP participants.
    (a) Solicitation of Public Comments:
    SBA is requesting comments on (i) Whether the collection of 
information is necessary for the agency to properly perform its 
functions; (ii) whether the burden estimates are accurate; (iii) 
whether there are ways to minimize the burden, including through the 
use of automated techniques or other forms of information technology; 
and (iv) whether there are ways to enhance the quality, utility, and 
clarity of the information.
    (b) Summary of Information Collection:
    Title: Paycheck Protection Program.
    OMB Control Number: 3245-0407.
    (i) SBA Form 2483, Paycheck Protection Program Borrower Application 
Form. SBA estimates approximately 6.5 million loan applicants will 
submit this form (or the lender's equivalent form) to PPP participating 
lenders to provide information concerning the purpose of the loan, 
applicant's history of any prior government debt, information regarding 
20.0 percent or more owners of the business, including criminal 
history. The estimated time to complete this form is 8 minutes for a 
total of 866,667 hours. Lenders will use the information to evaluate 
whether applicants are eligible to receive a PPP loan and if loan 
proceeds will be used for eligible purposes.
    (ii) SBA Form 2484, Paycheck Protection Program Lender's 
Application for 7(a) Guaranty. Lenders making PPP loans are required to 
submit the information concerning the eligibility of each loan 
applicant and the use of proceeds, and also the loan terms and 
conditions. SBA estimates that the 7,000 lenders will take about 25 
minutes to gather and complete the requested information, for a total 
estimated burden of 2,708,333 hours. SBA uses the information provided 
by lenders to ensure the loan was made in compliance with all 
applicable laws and PPP loan program requirements issued by SBA.
    (iii) SBA Form 3506, CARES Act Section 1102 Lender Agreement. This 
information is submitted by Federally Insured Depository Institutions, 
federally insured credit unions, and Farm Credit System regulated 
agricultural lenders (other than the Federal Agricultural Mortgage 
Corporation) that do not already participate in SBA's 7(a) loan program 
but are seeking to participate in the PPP. SBA and the Department of 
Treasury use the information to determine whether the financial 
institutions meet the eligibility requirements to participate in the 
PPP. An estimated 1,000 lending institutions will submit this form and 
will need approximately 10 minutes to review and complete the 
information for a total estimated burden of 167 hours.
    (iv) SBA Form 3507, CARES Act Section 1102 Lender Agreement--Non-
Bank and Non-Insured Depository Institution Lenders. This form collects 
information from depository or non-depository institutions and certain 
service providers that have contracted with insured depository 
institutions to support their lending activities. SBA and the 
Department of Treasury use the information to determine the eligibility 
of Non-Bank and Non-Insured Depository Institution Lenders to make PPP 
loans. SBA estimates that 250 institutions will apply and that it will 
take approximately 25 minutes for them to review, complete and submit 
the

[[Page 42480]]

application for a total estimated burden of 104 hours.
    (v) SBA Form 3508, Paycheck Protection Program--Loan Forgiveness 
Application and SBA Form 3508EZ, Paycheck Protection Program--PPP Loan 
Forgiveness Application Form EZ. PPP borrowers submit the applicable 
version of these forms (or the lender's equivalent forms) to request 
forgiveness of all or a portion of the PPP loan. The information is 
used to determine whether the application meets the criteria for loan 
forgiveness. SBA estimates that 1.625 million borrowers (or 25.0 
percent of all borrowers) will submit the SBA Form 3508 to request 
forgiveness. The estimated time for each borrower to review and 
complete this form is 180 minutes for a total estimated burden of 
4,875,000 hours. SBA assumes that the remaining 4.875 million borrowers 
will submit the streamlined Form 3508EZ to request forgiveness. The 
estimated time for each of these borrowers to complete this form is 20 
minutes, for a total estimated burden of 1,625,500 hours.
    (vi) [No Form Number] Lender Reporting Requirements Concerning 
Requests for Forgiveness. Lenders participating in the PPP are required 
to submit information to SBA to support the requests for forgiveness, 
including certain information extracted from SBA Form 3508, and to 
support the Lenders' decision to approve or deny that request for 
forgiveness. SBA will use the information to determine borrowers' and 
Lenders' compliance with PPP requirements and the appropriate amount of 
loan forgiveness. SBA estimates that it will take Lenders about 30 
minutes to review the information submitted by the estimated 1.625 
borrowers that use SBA Form 3508 and prepare the rationale for its 
decision. The total estimated burden is 812,500 hours. SBA estimates 
that it will take Lenders about 15 minutes to review the information 
submitted by the 4.875 million borrowers that use SBA Form 3508EZ for a 
total estimated burden of 1,218,750 hours.
    (vii) [No Form Number] Lender Reporting for Loan Reviews. PPP loans 
are subject to review by SBA in its sole discretion, and Lenders are 
required to submit information to the agency to facilitate the reviews 
when requested. The information to be collected includes a certified 
transcript of account, borrower's loan application, application for 
forgiveness, and all supporting documentation. SBA will use the 
information to review the eligibility of the borrower, the eligibility 
of the loan amount and use of loan proceeds, and whether the borrower 
is eligible for forgiveness in whole or in part. SBA estimates that it 
will select about 1,025,000 loans for review and that it will take 
lenders about 30 minutes to compile the information and respond to SBA, 
for a total estimated burden of 512,500 hours.

Curtis Rich,
Management Analyst.
[FR Doc. 2020-15145 Filed 7-13-20; 8:45 am]
BILLING CODE 8026-03-P