This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
Rules and Regulations Federal Register
67427
Vol. 85, No. 206
Friday, October 23, 2020
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Part 1719
RIN 0572–AC45
Rural Energy Savings Program
AGENCY: Rural Utilities Service, USDA.
ACTION: Final rule and response to
comments.
SUMMARY: The Rural Utilities Service
(RUS), a Rural Development agency of
the United States Department of
Agriculture (USDA), is confirming the
final rule published in the Federal
Register on April 2, 2020 to establish
the Rural Energy Savings Program
(RESP) as authorized by Section 6407 of
the Farm Security and Rural Investment
Act of 2002, as amended. This
document also provides the Agency an
opportunity to acknowledge public
comments received on the final rule.
DATES: The final rule published April 2,
2020 at 85 FR 18413 is confirmed.
FOR FURTHER INFORMATION CONTACT:
Robert Coates, Rural Utilities Service,
Electric Program, Rural Development,
United States Department of
Agriculture, 1400 Independence Avenue
SW, STOP 1568, Room 5165–S,
Washington, DC 20250; Telephone:
(202) 260–5415; Email Robert.Coates@
usda.gov.
SUPPLEMENTARY INFORMATION: The Rural
Utilities Service published the RESP
final rule to assist rural families and
small businesses achieve cost savings by
providing loans to qualified consumers
through eligible entities to implement
durable cost-effective energy efficiency
measures pursuant to 7 U.S.C. 8107a(a)
of the RESP authorizing statute. The
Secretary may use this funding to allow
eligible entities to offer energy
efficiency loans to customers in any part
of their service territory in accordance
to 7 CFR part 1719. The Agency
encourages applications that will
support recommendations made in the
Rural Prosperity Task Force report (see
www.usda.gov/ruralprosperity) to help
improve life in rural America, to
consider projects that provide
measurable results in helping rural
communities build robust and
sustainable economies through strategic
investments in infrastructure,
partnerships and innovation. Key
strategies include: Achieving e-
Connectivity for rural America,
developing the rural economy,
harnessing technological innovation,
supporting a rural workforce, and
improving quality of life.
Summary of Comments and Responses
RUS invited comments on the final
rule published on April 2, 2020 in the
Federal Register (85 FR 18413) and
received three comments. Two
comments were received were from
business organizations; Fleet
Development and Energy Trust. One
comment was received from an
individual, Mr. Inri Gonzalez. The
comments and Agency’s responses are
summarized as follows:
Issue 1: One individual and one
organization expressed support for the
Program as published on April 2, 2020
in the Federal Register.
Agency Response: The Agency
appreciates the input from the two
respondents that support the final rule.
Issue 2: Two commenters provide
energy efficiency services in their state,
including services to multi-family
dwellings and manufactured homes,
and more specifically the replacement
of substandard manufactured housing
units. One commenter wrote that ‘‘One
recommendation we offer is to re-
consider the allowable payback period
of both the RESP loan to the eligible
borrower and the loan from the
borrower to the qualified consumer.
Often utility infrastructure, energy
efficiency and renewable energy
projects are major long-term capital
investments. It is not uncommon for a
project of any scale to meet its return on
investment in the 12–20-year range and
then deliver energy savings for the next
10–20 years. We believe this financial
reality may have been partly responsible
for the historic under use of the
program. Energy efficiency and
renewable energy projects deliver their
primary energy savings in the out years
and are essentially break-even projects
in the first years. A debt amortization
period of only 10-years can leave a
significant gap from Year 10 on.’’ The
commenter suggested a potential
solution would be to allow the eligible
borrower to request repayment
schedules that fit the needs of the
project for both repayment to RESP and
the qualified consumer repayment to the
re-lender. The other commenter states
that their company invested in
manufactured home replacement
projects in Oregon. ‘‘It has been our
experience that the higher monthly
payments associated with a 10-year loan
term for higher cost measures such as
manufactured homes, can constitute a
significant obstacle for low- and
moderate-income Oregonians—many of
whom live in rural communities. The
manufactured home replacement pilot
program which they successfully
operate utilizes a 20-year customer loan
term. Should RUS find it feasible to do
so, the agency should consider whether
extending the Qualified consumer loan
term to 20 years would result in more
uptake by rural utility customers and
more effectively advance RUS ability to
deploy these funds to the benefit of
rural Americans.’’
Agency Response—The current 10-
year maturity on loans to qualified
consumers is a statutory requirement
provided in the Rural Energy Savings
Program enabling statute, see 7 U.S.C.
8107a(d)(1)(B). An amendment to that
program feature will require
Congressional action.
The RUS appreciates the interest of
the commenters in the RESP and thanks
them for their submissions.
Chad Rupe,
Administrator, Rural Utilities Service.
[FR Doc. 2020–21772 Filed 10–22–20; 8:45 am]
BILLING CODE P
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 363
RIN 3064–AF63
Applicability of Annual Independent
Audits and Reporting Requirements
for Fiscal Years Ending in 2021
AGENCY: Federal Deposit Insurance
Corporation (FDIC).
ACTION: Interim final rule and request
for comment.
VerDate Sep<11>2014 16:19 Oct 22, 2020 Jkt 253001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\23OCR1.SGM 23OCR1
khammond on DSKJM1Z7X2PROD with RULES
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
Rules and Regulations Federal Register
67427
Vol. 85, No. 206
Friday, October 23, 2020
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Part 1719
RIN 0572–AC45
Rural Energy Savings Program
AGENCY: Rural Utilities Service, USDA.
ACTION: Final rule and response to
comments.
SUMMARY: The Rural Utilities Service
(RUS), a Rural Development agency of
the United States Department of
Agriculture (USDA), is confirming the
final rule published in the Federal
Register on April 2, 2020 to establish
the Rural Energy Savings Program
(RESP) as authorized by Section 6407 of
the Farm Security and Rural Investment
Act of 2002, as amended. This
document also provides the Agency an
opportunity to acknowledge public
comments received on the final rule.
DATES: The final rule published April 2,
2020 at 85 FR 18413 is confirmed.
FOR FURTHER INFORMATION CONTACT:
Robert Coates, Rural Utilities Service,
Electric Program, Rural Development,
United States Department of
Agriculture, 1400 Independence Avenue
SW, STOP 1568, Room 5165–S,
Washington, DC 20250; Telephone:
(202) 260–5415; Email Robert.Coates@
usda.gov.
SUPPLEMENTARY INFORMATION: The Rural
Utilities Service published the RESP
final rule to assist rural families and
small businesses achieve cost savings by
providing loans to qualified consumers
through eligible entities to implement
durable cost-effective energy efficiency
measures pursuant to 7 U.S.C. 8107a(a)
of the RESP authorizing statute. The
Secretary may use this funding to allow
eligible entities to offer energy
efficiency loans to customers in any part
of their service territory in accordance
to 7 CFR part 1719. The Agency
encourages applications that will
support recommendations made in the
Rural Prosperity Task Force report (see
www.usda.gov/ruralprosperity) to help
improve life in rural America, to
consider projects that provide
measurable results in helping rural
communities build robust and
sustainable economies through strategic
investments in infrastructure,
partnerships and innovation. Key
strategies include: Achieving e-
Connectivity for rural America,
developing the rural economy,
harnessing technological innovation,
supporting a rural workforce, and
improving quality of life.
Summary of Comments and Responses
RUS invited comments on the final
rule published on April 2, 2020 in the
Federal Register (85 FR 18413) and
received three comments. Two
comments were received were from
business organizations; Fleet
Development and Energy Trust. One
comment was received from an
individual, Mr. Inri Gonzalez. The
comments and Agency’s responses are
summarized as follows:
Issue 1: One individual and one
organization expressed support for the
Program as published on April 2, 2020
in the Federal Register.
Agency Response: The Agency
appreciates the input from the two
respondents that support the final rule.
Issue 2: Two commenters provide
energy efficiency services in their state,
including services to multi-family
dwellings and manufactured homes,
and more specifically the replacement
of substandard manufactured housing
units. One commenter wrote that ‘‘One
recommendation we offer is to re-
consider the allowable payback period
of both the RESP loan to the eligible
borrower and the loan from the
borrower to the qualified consumer.
Often utility infrastructure, energy
efficiency and renewable energy
projects are major long-term capital
investments. It is not uncommon for a
project of any scale to meet its return on
investment in the 12–20-year range and
then deliver energy savings for the next
10–20 years. We believe this financial
reality may have been partly responsible
for the historic under use of the
program. Energy efficiency and
renewable energy projects deliver their
primary energy savings in the out years
and are essentially break-even projects
in the first years. A debt amortization
period of only 10-years can leave a
significant gap from Year 10 on.’’ The
commenter suggested a potential
solution would be to allow the eligible
borrower to request repayment
schedules that fit the needs of the
project for both repayment to RESP and
the qualified consumer repayment to the
re-lender. The other commenter states
that their company invested in
manufactured home replacement
projects in Oregon. ‘‘It has been our
experience that the higher monthly
payments associated with a 10-year loan
term for higher cost measures such as
manufactured homes, can constitute a
significant obstacle for low- and
moderate-income Oregonians—many of
whom live in rural communities. The
manufactured home replacement pilot
program which they successfully
operate utilizes a 20-year customer loan
term. Should RUS find it feasible to do
so, the agency should consider whether
extending the Qualified consumer loan
term to 20 years would result in more
uptake by rural utility customers and
more effectively advance RUS ability to
deploy these funds to the benefit of
rural Americans.’’
Agency Response—The current 10-
year maturity on loans to qualified
consumers is a statutory requirement
provided in the Rural Energy Savings
Program enabling statute, see 7 U.S.C.
8107a(d)(1)(B). An amendment to that
program feature will require
Congressional action.
The RUS appreciates the interest of
the commenters in the RESP and thanks
them for their submissions.
Chad Rupe,
Administrator, Rural Utilities Service.
[FR Doc. 2020–21772 Filed 10–22–20; 8:45 am]
BILLING CODE P
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 363
RIN 3064–AF63
Applicability of Annual Independent
Audits and Reporting Requirements
for Fiscal Years Ending in 2021
AGENCY: Federal Deposit Insurance
Corporation (FDIC).
ACTION: Interim final rule and request
for comment.
VerDate Sep<11>2014 16:19 Oct 22, 2020 Jkt 253001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\23OCR1.SGM 23OCR1
khammond on DSKJM1Z7X2PROD with RULES
67428 Federal Register / Vol. 85, No. 206 / Friday, October 23, 2020 / Rules and Regulations
1 12 U.S.C. 343(3).
2 See Federal Reserve Board announces an
extension through December 31 of its lending
facilities that were scheduled to expire on or
around September 30 (https://
www.federalreserve.gov/newsevents/pressreleases/
monetary20200728a.htm).
3 Public Law 116–136 (Mar. 27, 2020).
4 Under the PPP, eligible borrowers generally
include businesses with fewer than 500 employees
or that are otherwise considered by the SBA to be
small, including individuals operating sole
proprietorships or acting as independent
contractors, certain franchisees, nonprofit
corporations, veterans’ organizations, and Tribal
businesses. The loan amount under the PPP would
SUMMARY: In light of recent disruptions
in economic conditions caused by the
coronavirus disease 2019 (COVID–19)
and strains in U.S. financial markets,
some insured depository institutions
(IDIs) have experienced increases to
their consolidated total assets as a result
of large cash inflows resulting from
participation in the Paycheck Protection
Program (PPP), the Money Market
Mutual Fund Liquidity Facility
(MMLF), the Paycheck Protection
Program Liquidity Facility (PPPLF), and
the effects of other government stimulus
efforts. Since these inflows may be
temporary, but are significant and
unpredictable, the FDIC is issuing an
interim final rule (IFR) that will allow
IDIs to determine the applicability of
part 363 of the FDIC’s regulations,
Annual Independent Audits and
Reporting Requirements, for fiscal years
ending in 2021 based on the lesser of
their consolidated total assets as of
December 31, 2019, or consolidated
total assets as of the beginning of their
fiscal years ending 2021.
Notwithstanding any temporary relief
provided by this IFR, an IDI would
continue to be subject to any otherwise
applicable statutory and regulatory
audit and reporting requirements. The
IFR also reserves the authority to require
an IDI to comply with one or more
requirements of part 363 if the FDIC
determines that asset growth was related
to a merger or acquisition.
DATES: The interim final rule is effective
October 23, 2020 through December 31,
2021, unless extended by the FDIC.
Comments on the interim final rule
must be received no later than
November 23, 2020.
ADDRESSES: You may submit comments,
identified by RIN 3064–AF63, by any of
the following methods:
• Agency Website: https://
www.fdic.gov/regulations/laws/federal.
Follow instructions for submitting
comments on the Agency website.
• Email: Comments@FDIC.gov.
Include ‘‘RIN 3064–AF63’’ on the
subject line of the message.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments/RIN
3064–AF63, Federal Deposit Insurance
Corporation, 550 17th Street NW,
Washington, DC 20429.
• Hand Delivery/Courier: Comments
may be hand-delivered to the guard
station at the rear of the 550 17th Street
building (located on F Street) on
business days between 7 a.m. and 5 p.m.
All comments received must include the
agency name (FDIC) and RIN 3064-
AF63, and will be posted without
change to https://www.fdic.gov/
regulations/laws/federal, including any
personal information provided.
FOR FURTHER INFORMATION CONTACT:
Harrison E. Greene, Jr., Assistant Chief
Accountant, (202) 898–8905, hgreene@
fdic.gov; Shannon M. Beattie, Section
Chief and Deputy Chief Accountant,
(202) 898–3952, sbeattie@fdic.gov; John
Rieger, Chief Accountant, (202) 898–
3602, jrieger@fdic.gov; Mark G.
Flanigan, Senior Counsel, (202) 898–
7426, mflanigan@fdic.gov; Joyce M.
Raidle, Counsel, (202) 898–6763,
jraidle@fdic.gov; and Merritt Pardini,
Counsel, (202) 898–6680, mpardini@
fdic.gov, Legal Division, Federal Deposit
Insurance Corporation, 550 17th Street
NW, Washington, DC 20429. For the
hearing impaired only,
Telecommunication Device for the Deaf
(TDD), (800) 925–4618.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
A. Selected Government Responses Related
to the Pandemic
B. Section 36 of the Federal Deposit
Insurance Act (FDI Act) and Part 363 of
the FDIC Regulations
C. Effects of Government Response
Programs on IDI Growth
II. The Interim Final Rule
III. Expected Effects
IV. Alternatives Considered
V. Administrative Law Matters
A. Administrative Procedure Act
B. Congressional Review Act
C. Paperwork Reduction Act
D. Regulatory Flexibility Act
E. Riegle Community Development and
Regulatory Improvement Act of 1994
F. Use of Plain Language
I. Background
A. Selected Government Responses
Related to the Pandemic
Recent events have significantly and
adversely impacted the global economy
and financial markets. The spread of
COVID–19 has slowed economic
activity in many countries, including
the United States. Sudden disruptions
in financial markets placed increasing
liquidity pressure on money market
mutual funds (MMFs) and raised the
cost of credit for most borrowers. MMFs
faced redemption requests from clients
with immediate cash needs and
potentially the need to sell a significant
number of assets to meet these
redemption requests, which further
increased market pressures. In order to
prevent the disruption in the money
markets from destabilizing the financial
system, on March 18, 2020, the Board of
Governors of the Federal Reserve
System (Board of Governors), with
approval of the Secretary of the
Treasury, authorized the Federal
Reserve Bank of Boston (FRBB) to
establish the MMLF pursuant to section
13(3) of the Federal Reserve Act.1 Under
the MMLF, the FRBB is extending
nonrecourse loans to eligible borrowers
to purchase assets from MMFs. Assets
purchased from MMFs are posted as
collateral to the FRBB. Eligible
borrowers under the MMLF include
IDIs. Eligible collateral under the MMLF
includes U.S. Treasuries and fully
guaranteed agency securities, securities
issued by government-sponsored
enterprises, and certain types of
commercial paper. The MMLF is
scheduled to terminate on December 31,
2020, unless extended by the Board of
Governors.2
Small businesses also face severe
liquidity constraints and a collapse in
revenue streams, as millions of
Americans were ordered to stay home,
severely reducing their ability to engage
in normal commerce. Many small
businesses were forced to close
temporarily or furlough employees.
Continued access to financing will be
crucial for small businesses to weather
economic disruptions caused by
COVID–19 and, ultimately, to help
restore economic activity.
In recognition of the exigent
circumstances facing small businesses,
Congress created the PPP as part of the
Coronavirus Aid, Relief, and Economic
Security Act (CARES Act).3 PPP loans
are fully guaranteed as to principal and
accrued interest by the Small Business
Administration (SBA), the amount of
each being determined at the time the
guarantee is exercised. As a general
matter, SBA guarantees are backed by
the full faith and credit of the U.S.
Government. PPP loans also afford
borrowers forgiveness up to the
principal amount of the PPP loan if the
loan proceeds are used for certain
eligible expenses. The SBA reimburses
PPP lenders for any amount of a PPP
loan that is forgiven. PPP lenders are not
held liable for any representations made
by PPP borrowers in connection with a
borrower’s request for PPP loan
forgiveness.4 On June 5, 2020, the
VerDate Sep<11>2014 16:19 Oct 22, 2020 Jkt 253001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\23OCR1.SGM 23OCR1
khammond on DSKJM1Z7X2PROD with RULES
1 12 U.S.C. 343(3).
2 See Federal Reserve Board announces an
extension through December 31 of its lending
facilities that were scheduled to expire on or
around September 30 (https://
www.federalreserve.gov/newsevents/pressreleases/
monetary20200728a.htm).
3 Public Law 116–136 (Mar. 27, 2020).
4 Under the PPP, eligible borrowers generally
include businesses with fewer than 500 employees
or that are otherwise considered by the SBA to be
small, including individuals operating sole
proprietorships or acting as independent
contractors, certain franchisees, nonprofit
corporations, veterans’ organizations, and Tribal
businesses. The loan amount under the PPP would
SUMMARY: In light of recent disruptions
in economic conditions caused by the
coronavirus disease 2019 (COVID–19)
and strains in U.S. financial markets,
some insured depository institutions
(IDIs) have experienced increases to
their consolidated total assets as a result
of large cash inflows resulting from
participation in the Paycheck Protection
Program (PPP), the Money Market
Mutual Fund Liquidity Facility
(MMLF), the Paycheck Protection
Program Liquidity Facility (PPPLF), and
the effects of other government stimulus
efforts. Since these inflows may be
temporary, but are significant and
unpredictable, the FDIC is issuing an
interim final rule (IFR) that will allow
IDIs to determine the applicability of
part 363 of the FDIC’s regulations,
Annual Independent Audits and
Reporting Requirements, for fiscal years
ending in 2021 based on the lesser of
their consolidated total assets as of
December 31, 2019, or consolidated
total assets as of the beginning of their
fiscal years ending 2021.
Notwithstanding any temporary relief
provided by this IFR, an IDI would
continue to be subject to any otherwise
applicable statutory and regulatory
audit and reporting requirements. The
IFR also reserves the authority to require
an IDI to comply with one or more
requirements of part 363 if the FDIC
determines that asset growth was related
to a merger or acquisition.
DATES: The interim final rule is effective
October 23, 2020 through December 31,
2021, unless extended by the FDIC.
Comments on the interim final rule
must be received no later than
November 23, 2020.
ADDRESSES: You may submit comments,
identified by RIN 3064–AF63, by any of
the following methods:
• Agency Website: https://
www.fdic.gov/regulations/laws/federal.
Follow instructions for submitting
comments on the Agency website.
• Email: Comments@FDIC.gov.
Include ‘‘RIN 3064–AF63’’ on the
subject line of the message.
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments/RIN
3064–AF63, Federal Deposit Insurance
Corporation, 550 17th Street NW,
Washington, DC 20429.
• Hand Delivery/Courier: Comments
may be hand-delivered to the guard
station at the rear of the 550 17th Street
building (located on F Street) on
business days between 7 a.m. and 5 p.m.
All comments received must include the
agency name (FDIC) and RIN 3064-
AF63, and will be posted without
change to https://www.fdic.gov/
regulations/laws/federal, including any
personal information provided.
FOR FURTHER INFORMATION CONTACT:
Harrison E. Greene, Jr., Assistant Chief
Accountant, (202) 898–8905, hgreene@
fdic.gov; Shannon M. Beattie, Section
Chief and Deputy Chief Accountant,
(202) 898–3952, sbeattie@fdic.gov; John
Rieger, Chief Accountant, (202) 898–
3602, jrieger@fdic.gov; Mark G.
Flanigan, Senior Counsel, (202) 898–
7426, mflanigan@fdic.gov; Joyce M.
Raidle, Counsel, (202) 898–6763,
jraidle@fdic.gov; and Merritt Pardini,
Counsel, (202) 898–6680, mpardini@
fdic.gov, Legal Division, Federal Deposit
Insurance Corporation, 550 17th Street
NW, Washington, DC 20429. For the
hearing impaired only,
Telecommunication Device for the Deaf
(TDD), (800) 925–4618.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
A. Selected Government Responses Related
to the Pandemic
B. Section 36 of the Federal Deposit
Insurance Act (FDI Act) and Part 363 of
the FDIC Regulations
C. Effects of Government Response
Programs on IDI Growth
II. The Interim Final Rule
III. Expected Effects
IV. Alternatives Considered
V. Administrative Law Matters
A. Administrative Procedure Act
B. Congressional Review Act
C. Paperwork Reduction Act
D. Regulatory Flexibility Act
E. Riegle Community Development and
Regulatory Improvement Act of 1994
F. Use of Plain Language
I. Background
A. Selected Government Responses
Related to the Pandemic
Recent events have significantly and
adversely impacted the global economy
and financial markets. The spread of
COVID–19 has slowed economic
activity in many countries, including
the United States. Sudden disruptions
in financial markets placed increasing
liquidity pressure on money market
mutual funds (MMFs) and raised the
cost of credit for most borrowers. MMFs
faced redemption requests from clients
with immediate cash needs and
potentially the need to sell a significant
number of assets to meet these
redemption requests, which further
increased market pressures. In order to
prevent the disruption in the money
markets from destabilizing the financial
system, on March 18, 2020, the Board of
Governors of the Federal Reserve
System (Board of Governors), with
approval of the Secretary of the
Treasury, authorized the Federal
Reserve Bank of Boston (FRBB) to
establish the MMLF pursuant to section
13(3) of the Federal Reserve Act.1 Under
the MMLF, the FRBB is extending
nonrecourse loans to eligible borrowers
to purchase assets from MMFs. Assets
purchased from MMFs are posted as
collateral to the FRBB. Eligible
borrowers under the MMLF include
IDIs. Eligible collateral under the MMLF
includes U.S. Treasuries and fully
guaranteed agency securities, securities
issued by government-sponsored
enterprises, and certain types of
commercial paper. The MMLF is
scheduled to terminate on December 31,
2020, unless extended by the Board of
Governors.2
Small businesses also face severe
liquidity constraints and a collapse in
revenue streams, as millions of
Americans were ordered to stay home,
severely reducing their ability to engage
in normal commerce. Many small
businesses were forced to close
temporarily or furlough employees.
Continued access to financing will be
crucial for small businesses to weather
economic disruptions caused by
COVID–19 and, ultimately, to help
restore economic activity.
In recognition of the exigent
circumstances facing small businesses,
Congress created the PPP as part of the
Coronavirus Aid, Relief, and Economic
Security Act (CARES Act).3 PPP loans
are fully guaranteed as to principal and
accrued interest by the Small Business
Administration (SBA), the amount of
each being determined at the time the
guarantee is exercised. As a general
matter, SBA guarantees are backed by
the full faith and credit of the U.S.
Government. PPP loans also afford
borrowers forgiveness up to the
principal amount of the PPP loan if the
loan proceeds are used for certain
eligible expenses. The SBA reimburses
PPP lenders for any amount of a PPP
loan that is forgiven. PPP lenders are not
held liable for any representations made
by PPP borrowers in connection with a
borrower’s request for PPP loan
forgiveness.4 On June 5, 2020, the
VerDate Sep<11>2014 16:19 Oct 22, 2020 Jkt 253001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\23OCR1.SGM 23OCR1
khammond on DSKJM1Z7X2PROD with RULES