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The amount of loan forgiveness the Borrower applies for may be subject to reductions as explained in PPP Schedule A.
L oan Forgiveness Application Expiration Date: 10/31/2020
SBA Form 3508 (05/20)
Page 1
LOAN FORGIVENESS APPLICATION INSTRUCTIONS FOR BORROWERS
To apply for forgiveness of your Paycheck Protection Program (PPP) loan,
you (the Borrower) must complete this application as directed in these instructions,
and submit it to your Lender (or the Lender that is servicing your loan).
Borrowers may also complete this application electronically through their Lender.
This application has the following components:
(1) the PPP Loan Forgiveness Calculation Form;
(2) PPP Schedule A;
(3) the PPP Schedule A Worksheet;
and (4) the (optional) PPP Borrower Demographic Information Form.
All Borrowers must submit
(1) and (2) to their Lender. Instructions for PPP Loan Forgiveness Calculation Form Business Legal Name (“Borrower”)/DBA
or Tradename (if applicable)/Business TIN (EIN, SSN):
Enter the same information as on your Borrower Application Form.
Business Address/Business Phone/Primary Contact/E-mail Address:
Enter the same information as on your Borrower Application Form,
unless there has been a change in address or contact information.
SBA PPP Loan Number: Enter the loan number assigned by SBA at the time of loan approval. Request this number from the Lender if necessary.
Lender PPP Loan Number:
Enter the loan number assigned to the PPP loan by the Lender. PPP Loan Amount: Enter the disbursed principal amount of the PPP loan (the total loan amount you received from the Lender). Employees at Time of Loan Application: Enter the total number of employees at the time of the Borrower’s PPP Loan Application. Employees at Time of Forgiveness Application: Enter the total number of employees at the time the Borrower is applying for loan forgiveness. PPP Loan Disbursement Date: Enter the date that you received the PPP loan proceeds from the Lender. If loan proceeds were received on more than one date, enter the first date on which you received PPP loan proceeds. EIDL Advance Amount: If the Borrower received an Economic Injury Disaster Loan (EIDL) advance, enter the amount. EIDL Application Number: If the Borrower applied for an EIDL, enter the Borrower’s EIDL Application Number. Payroll Schedule: Select the box that corresponds to your payroll schedule. Covered Period: Enter the eight-week (56-day) Covered Period of your PPP loan. The first day of the Covered Period must be the same as the PPP Loan Disbursement Date. For example, if the Borrower received its PPP loan proceeds on Monday, April 20, the first day of the Covered Period is April 20 and the last day of the Covered Period is Sunday, June 14. Alternative Payroll Covered Period: For administrative convenience, Borrowers with a biweekly (or more frequent) payroll schedule may elect to calculate eligible payroll costs using the eight-week (56-day) period that begins on the first day of their first pay period following their PPP Loan Disbursement Date (the “Alternative Payroll Covered Period”). For example, if the Borrower received its PPP loan proceeds on Monday, April 20, and the first day of its first pay period following its PPP loan disbursement is Sunday, April 26, the first day of the Alternative Payroll Covered Period is April 26 and the last day of the Alternative Payroll Covered Period is Saturday, June 20. Borrowers who elect to use the Alternative Payroll Covered Period must apply the Alternative Payroll Covered Period wherever there is a reference in this application to “the Covered Period or the Alternative Payroll Covered Period.” However, Borrowers must apply the Covered Period (not the Alternative Payroll Covered Period) wherever there is a reference in this application to “the Covered Period” only. If Borrower Received PPP Loans in Excess of $2 Million: Check the box if the Borrower, together with its affiliates (to the extent required under SBA’s interim final rule on affiliates (85 FR 20817 (April 15, 2020)) and not waived under 15 U.S.C. 636(a)(36)(D)(iv)), received PPP loans with an original principal amount in excess of $2 million. Forgiveness Amount Calculation (see Summary of Costs Eligible for Forgiveness below): Line 1: Enter total eligible payroll costs incurred or paid during the Covered Period or the Alternative Payroll Covered Period. Paycheck Protection Program OMB Control Number 3245-0407 Loan Forgiveness Application Expiration Date: 10/31/2020 SBA Form 3508 (05/20) Page 2 To calculate these costs, complete PPP Schedule A. Enter the amount from PPP Schedule A, line 10. Line 2: Enter the amount of business mortgage interest payments during the Covered Period for any business mortgage obligation on real or personal property incurred before February 15, 2020. Do not include prepayments. Line 3: Enter the amount of business rent or lease payments for real or personal property during the Covered Period, pursuant to lease agreements in force before February 15, 2020. Line 4: Enter the amount of business utility payments during the Covered Period, for business utilities for which service began before February 15, 2020. NOTE: For lines 2-4, you are not required to report payments that you do not want to include in the forgiveness amount. Line 5: Enter the number from PPP Schedule A, line 3. This amount reflects the loan forgiveness reduction required for salary/hourly wage reductions in excess of 25% for certain employees as described in PPP Schedule A. Line 6: Add lines 1 through 4, subtract line 5, enter the total. If this amount is less than zero, enter a zero. Line 7: Enter the number from PPP Schedule A, line 13. Line 8: Enter the amount on line 6 multiplied by the amount on line 7. This calculation incorporates the loan forgiveness reduction required for any full-time equivalency (FTE) employee reductions as described in PPP Schedule A. Line 9: Enter the PPP Loan Amount. Line 10: Divide the amount on line 1 by 0.75, and enter the amount. This determines whether at least 75% of the potential forgiveness amount was used for payroll costs. For more information, see Interim Final Rule on Paycheck Protection Program posted on April 2, 2020 (85 FR 20811). Line 11: Enter the smallest of lines 8, 9, or 10. Note: If applicable, SBA will deduct EIDL Advance Amounts from the forgiveness amount remitted to the Lender. Summary of Costs Eligible for Forgiveness: Borrowers are eligible for loan forgiveness for the following costs: 1. Eligible payroll costs. Borrowers are generally eligible for forgiveness for the payroll costs paid and payroll costs incurred during the eight-week (56-day) Covered Period (or Alternative Payroll Covered Period) (“payroll costs”). Payroll costs are considered paid on the day that paychecks are distributed or the Borrower originates an ACH credit transaction. Payroll costs are considered incurred on the day that the employee’s pay is earned. Payroll costs incurred but not paid during the Borrower’s last pay period of the Covered Period (or Alternative Payroll Covered Period) are eligible for forgiveness if paid on or before the next regular payroll date. Otherwise, payroll costs must be paid during the Covered Period (or Alternative Payroll Covered Period). For each individual employee, the total amount of cash compensation eligible for forgiveness may not exceed an annual salary of $100,000, as prorated for the covered period. Count payroll costs that were both paid and incurred only once. For information on what qualifies as payroll costs, see Interim Final Rule on Paycheck Protection Program posted on April 2, 2020 (85 FR 20811). 2. Eligible nonpayroll costs. Nonpayroll costs eligible for forgiveness consist of: (a) covered mortgage obligations: payments of interest (not including any prepayment or payment of principal) on any business mortgage obligation on real or personal property incurred before February 15, 2020 (“business mortgage interest payments”); (b) covered rent obligations: business rent or lease payments pursuant to lease agreements for real or personal property in force before February 15, 2020 (“business rent or lease payments”); and (c) covered utility payments: business payments for a service for the distribution of electricity, gas, water, transportation, telephone, or internet access for which service began before February 15, 2020 (“business utility payments”). An eligible nonpayroll cost must be paid during the Covered Period or incurred during the Covered Period and paid on or before the next regular billing date, even if the billing date is after the Covered Period. Eligible nonpayroll costs cannot exceed 25% of the total forgiveness amount. Count nonpayroll costs that were both paid and incurred only once. The amount of loan forgiveness the Borrower applies for may be subject to reductions as explained in PPP Schedule A. Paycheck Protection Program OMB Control Number 3245-0407 Loan Forgiveness Application Expiration Date: 10/31/2020 SBA Form 3508 (05/20) Page 3 PPP Loan Forgiveness Calculation Form Business Legal Name (“Borrower”) DBA or Tradename, if applicable Business Address Business TIN (EIN, SSN) Business Phone ( ) - Primary Contact E-mail Address SBA PPP Loan Number: ________________________ Lender PPP Loan Number: __________________________ PPP Loan Amount: _____________________________ PPP Loan Disbursement Date: _______________________ Employees at Time of Loan Application: ___________ Employees at Time of Forgiveness Application: ___________ EIDL Advance Amount: ________________________ EIDL Application Number: __________________________ Payroll Schedule: The frequency with which payroll is paid to employees is: ☐ Weekly ☐ Biweekly (every other week) ☐ Twice a month ☐ Monthly ☐ Other _____________ Covered Period: ________________________ to ________________________ Alternative Payroll Covered Period, if applicable: ________________________ to _______________________ If Borrower (together with affiliates, if applicable) received PPP loans in excess of $2 million, check here: ☐ Forgiveness Amount Calculation: Payroll and Nonpayroll Costs Line 1. Payroll Costs (enter the amount from PPP Schedule A, line 10): _____________________ Line 2. Business Mortgage Interest Payments: _____________________ Line 3. Business Rent or Lease Payments: _____________________ Line 4. Business Utility Payments: _____________________ Adjustments for Full-Time Equivalency (FTE) and Salary/Hourly Wage Reductions Line 5. Total Salary/Hourly Wage Reduction (enter the amount from PPP Schedule A, line 3): _____________________ Line 6. Add the amounts on lines 1, 2, 3, and 4, then subtract the amount entered in line 5: _____________________ Line 7. FTE Reduction Quotient (enter the number from PPP Schedule A, line 13): _____________________ Potential Forgiveness Amounts Line 8. Modified Total (multiply line 6 by line 7): _____________________ Line 9. PPP Loan Amount: _____________________ Line 10. Payroll Cost 75% Requirement (divide line 1 by 0.75): _____________________ Forgiveness Amount Line 11. Forgiveness Amount (enter the smallest of lines 8, 9, and 10): _____________________ Paycheck Protection Program OMB Control Number 3245-0407 Loan Forgiveness Application Expiration Date: 10/31/2020 SBA Form 3508 (05/20) Page 4 By Signing Below, You Make the Following Representations and Certifications on Behalf of the Borrower: The authorized representative of the Borrower certifies to all of the below by initialing next to each one. _____ The dollar amount for which forgiveness is requested: • was used to pay costs that are eligible for forgiveness (payroll costs to retain employees; business mortgage interest payments; business rent or lease payments; or business utility payments); • includes all applicable reductions due to decreases in the number of full-time equivalent employees and salary/hourly wage reductions; • does not include nonpayroll costs in excess of 25% of the amount requested; and • does not exceed eight weeks’ worth of 2019 compensation for any owner-employee or self-employed individual/general partner, capped at $15,385 per individual. _____ I understand that if the funds were knowingly used for unauthorized purposes, the federal government may pursue recovery of loan amounts and/or civil or criminal fraud charges. _____ The Borrower has accurately verified the payments for the eligible payroll and nonpayroll costs for which the Borrower is requesting forgiveness. _____ I have submitted to the Lender the required documentation verifying payroll costs, the existence of obligations and service (as applicable) prior to February 15, 2020, and eligible business mortgage interest payments, business rent or lease payments, and business utility payments. _____ The information provided in this application and the information provided in all supporting documents and forms is true and correct in all material respects. I understand that knowingly making a false statement to obtain forgiveness of an SBA-guaranteed loan is punishable under the law, including 18 USC 1001 and 3571 by imprisonment of not more than five years and/or a fine of up to $250,000; under 15 USC 645 by imprisonment of not more than two years and/or a fine of not more than $5,000; and, if submitted to a Federally insured institution, under 18 USC 1014 by imprisonment of not more than thirty years and/or a fine of not more than $1,000,000. _____ The tax documents I have submitted to the Lender are consistent with those the Borrower has submitted/will submit to the IRS and/or state tax or workforce agency. I also understand, acknowledge, and agree that the Lender can share the tax information with SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of ensuring compliance with PPP requirements and all SBA reviews. _____ I understand, acknowledge, and agree that SBA may request additional information for the purposes of evaluating the Borrower’s eligibility for the PPP loan and for loan forgiveness, and that the Borrower’s failure to provide information requested by SBA may result in a determination that the Borrower was ineligible for the PPP loan or a denial of the Borrower’s loan forgiveness application. The Borrower’s eligibility for loan forgiveness will be evaluated in accordance with the PPP regulations and guidance issued by SBA through the date of this application. SBA may direct a lender to disapprove the Borrower’s loan forgiveness application if SBA determines that the Borrower was ineligible for the PPP loan. _____________________________________________________ ____________________________ Signature of Authorized Representative of Borrower Date _____________________________________________________ ____________________________ Print Name Title Paycheck Protection Program OMB Control Number 3245-0407 Loan Forgiveness Application Expiration Date: 10/31/2020 SBA Form 3508 (05/20) Page 5 Instructions for PPP Schedule A Lines 1 through 5: Enter the amounts from PPP Schedule A Worksheet Tables as directed. Enter the amount from line 3 of PPP Schedule A on line 5 of the Loan Forgiveness Application Form. For lines 6 through 9, during the Covered Period or the Alternative Payroll Covered Period: Line 6: Enter the total amount paid by the Borrower for employer contributions for employee health insurance, including employer contributions to a self-insured, employer-sponsored group health plan, but excluding any pre-tax or after tax contributions by employees. Line 7: Enter the total amount paid by the Borrower for employer contributions to employee retirement plans, excluding any pre-tax or after-tax contributions by employees. Line 8: Enter the total amount paid by the Borrower for employer state and local taxes assessed on employee compensation (e.g., state unemployment insurance tax); do not list any taxes withheld from employee earnings. Line 9: Enter any amounts paid to owners (owner-employees, a self-employed individual, or general partners). This amount is capped at $15,385 (the eight-week equivalent of $100,000 per year) for each individual or the eight-week equivalent of their applicable compensation in 2019, whichever is lower. See Interim Final Rule on Additional Eligibility Criteria and Requirements for Certain Pledges of Loans posted on April 14, 2020 for more information (85 FR 21747, 21749). Line 10: Add lines 1, 4, 6, 7, 8, and 9. Enter this amount on line 1 on the PPP Loan Forgiveness Calculation Form. Line 11: Enter the Borrower’s total average weekly full-time equivalency (FTE) during the chosen reference period. For purposes of this calculation, the reference period is, at the Borrower’s election, either (i) February 15, 2019 to June 30, 2019; (ii) January 1, 2020 to February 29, 2020; or (iii) in the case of seasonal employers, either of the preceding periods or a consecutive twelve-week period between May 1, 2019 and September 15, 2019. For each employee, follow the same method that was used to calculate Average FTE on the PPP Schedule A Worksheet. Sum across all employees during the reference period and enter that total on this line. The calculations on lines 11, 12, and 13 will be used to determine whether the Borrower’s loan forgiveness amount must be reduced based on reductions in full-time equivalent employees, as required by the statute. Specifically, the actual loan forgiveness amount that the Borrower will receive may be reduced if the Borrower’s average weekly FTE employees during the Covered Period (or the Alternative Payroll Covered Period) was less than during the Borrower’s chosen reference period. The Borrower is exempt from such a reduction if the FTE Reduction Safe Harbor applies. See PPP Schedule A Worksheet—FTE Reduction Safe Harbor. Line 12: Add lines 2 and 5. Line 13: Divide line 12 by line 11 (or enter 1.0 if the FTE Reduction Safe Harbor has been met, according to PPP Schedule A Worksheet—FTE Reduction Safe Harbor). If more than 1.0, enter 1.0. Enter this amount on line 7 of the Loan Forgiveness Calculation Form. Paycheck Protection Program OMB Control Number 3245-0407 Loan Forgiveness Application Expiration Date: 10/31/2020 SBA Form 3508 (05/20) Page 6 PPP Schedule A PPP Schedule A Worksheet, Table 1 Totals Line 1. Enter Cash Compensation (Box 1) from PPP Schedule A Worksheet, Table 1: ___________________ Line 2. Enter Average FTE (Box 2) from PPP Schedule A Worksheet, Table 1: ___________________ Line 3. Enter Salary/Hourly Wage Reduction (Box 3) from PPP Schedule A Worksheet, Table 1: ___________________ If the average annual salary or hourly wage for each employee listed on the PPP Schedule A Worksheet, Table 1 during the Covered Period or the Alternative Payroll Covered Period was at least 75% of such employee’s average annual salary or hourly wage between January 1, 2020 and March 31, 2020, check here ☐ and enter 0 on line 3. PPP Schedule A Worksheet, Table 2 Totals Line 4. Enter Cash Compensation (Box 4) from PPP Schedule A Worksheet, Table 2: ___________________ Line 5. Enter Average FTE (Box 5) from PPP Schedule A Worksheet, Table 2: ___________________ Non-Cash Compensation Payroll Costs During the Covered Period or the Alternative Payroll Covered Period Line 6. Total amount paid by Borrower for employer contributions for employee health insurance: ___________________ Line 7. Total amount paid by Borrower for employer contributions to employee retirement plans: ___________________ Line 8. Total amount paid by Borrower for employer state and local taxes assessed on employee compensation: ___________________ Compensation to Owners Line 9. Total amount paid to owner-employees/self-employed individual/general partners: _____________________ This amount may not be included in PPP Schedule A Worksheet, Table 1 or 2. If there is more than one individual included, attach a separate table that lists the names of and payments to each. Total Payroll Costs Line 10. Payroll Costs (add lines 1, 4, 6, 7, 8, and 9): ___________________ Full-Time Equivalency (FTE) Reduction Calculation If you have not reduced the number of employees or the average paid hours of your employees between January 1, 2020 and the end of the Covered Period, check here ☐, skip lines 11 and 12 and enter 1.0 on line 13. Line 11. Average FTE during the Borrower’s chosen reference period: ___________________ Line 12. Total Average FTE (add lines 2 and 5): ___________________ Line 13. FTE Reduction Quotient (divide line 12 by line 11) or enter 1.0 if FTE Safe Harbor is met: ___________________ Paycheck Protection Program OMB Control Number 3245-0407 Loan Forgiveness Application Expiration Date: 10/31/2020 SBA Form 3508 (05/20) Page 7 Instructions for PPP Schedule A Worksheet Complete the PPP Schedule A Worksheet or obtain an equivalent report from the Borrower’s payroll system or payroll processor. Table Instructions Employee’s Name: Separately list each employee. Do not include any independent contractors, owner-employees, self-employed individuals, or partners. Employee Identifier: Enter the last four digits of each employee’s Social Security Number. Cash Compensation: Enter the sum of gross salary, gross wages, gross tips, gross commissions, paid leave (vacation, family, medical or sick leave, not including leave covered by the Families First Coronavirus Response Act), and allowances for dismissal or separation paid or incurred during the Covered Period or the Alternative Payroll Covered Period. For each individual employee, the total amount of cash compensation eligible for forgiveness may not exceed an annual salary of $100,000, as prorated for the Covered Period; therefore, do not enter more than $15,385 in Table 1 or Table 2 for any individual employee. Average FTE: This calculates the average full-time equivalency (FTE) during the Covered Period or the Alternative Payroll Covered Period. For each employee, enter the average number of hours paid per week, divide by 40, and round the total to the nearest tenth. The maximum for each employee is capped at 1.0. A simplified method that assigns a 1.0 for employees who work 40 hours or more per week and 0.5 for employees who work fewer hours may be used at the election of the Borrower. This calculation will be used to determine whether the Borrower’s loan forgiveness amount must be reduced due to a statutory requirement concerning reductions in full-time equivalent employees. Borrowers are eligible for loan forgiveness for certain expenditures during the Covered Period or the Alternative Payroll Covered Period. However, the actual loan forgiveness amount that the Borrower will receive may be less, depending on whether the Borrower’s average weekly number of FTE employees during the Covered Period or the Alternative Payroll Covered Period was less than during the Borrower’s chosen reference period (see Instructions to PPP Schedule A, Line 11). The Borrower is exempt from such a reduction if the FTE Reduction Safe Harbor applies. See the FTE Reduction Safe Harbor instructions below. Salary/Hourly Wage Reduction: This calculation will be used to determine whether the Borrower’s loan forgiveness amount must be reduced due to a statutory requirement concerning reductions in employee salary and wages. Borrowers are eligible for loan forgiveness for certain expenditures during the Covered Period or the Alternative Payroll Covered Period. However, the actual amount of loan forgiveness the Borrower will receive may be less, depending on whether the salary or hourly wages of certain employees during the Covered Period or the Alternative Payroll Covered Period was less than during the period from January 1, 2020 to March 31, 2020. If the Borrower restored salary/hourly wage levels, the Borrower may be eligible for elimination of the Salary/Hourly Wage Reduction amount. Borrowers must complete this worksheet to determine whether to reduce the amount of loan forgiveness for which they are eligible. Complete the Salary/Hour Wage Reduction column only for employees whose salaries or hourly wages were reduced by more than 25% during the Covered Period or the Alternative Payroll Covered Period as compared to the period of January 1, 2020 through March 31, 2020. For each employee listed in Table 1, complete the following (using salary for salaried employees and hourly wage for hourly employees): Step 1. Determine if pay was reduced more than 25%. a. Enter average annual salary or hourly wage during Covered Period or Alternative Payroll Covered Period: ______________. b. Enter average annual salary or hourly wage between January 1, 2020 and March 31, 2020: ______________. c. Divide the value entered in 1.a. by 1.b.: ______________. If 1.c. is 0.75 or more, enter zero in the column above box 3 for that employee; otherwise proceed to Step 2. Step 2. Determine if the Salary/Hourly Wage Reduction Safe Harbor is met. a. Enter the annual salary or hourly wage as of February 15, 2020: ______________. b. Enter the average annual salary or hourly wage between February 15, 2020 and April 26, 2020: ______________. If 2.b. is equal to or greater than 2.a., skip to Step 3. Otherwise, proceed to 2.c. c. Enter the average annual salary or hourly wage as of June 30, 2020: ______________. If 2.c. is equal to or greater than 2.a., the Salary/Hourly Wage Reduction Safe Harbor has been met – enter zero in the column above box 3 for that employee. Otherwise proceed to Step 3. Step 3. Determine the Salary/Hourly Wage Reduction. a. Multiply the amount entered in 1.b. by 0.75: ______________. b. Subtract the amount entered in 1.a. from 3.a.: ______________. Paycheck Protection Program OMB Control Number 3245-0407 Loan Forgiveness Application Expiration Date: 10/31/2020 SBA Form 3508 (05/20) Page 8 If the employee is an hourly worker, compute the total dollar amount of the reduction that exceeds 25% as follows: c. Enter the average number of hours worked per week between January 1, 2020 and March 31, 2020: ______________. d. Multiply the amount entered in 3.b. by the amount entered in 3.c. ______________. Multiply this amount by 8: ______________. Enter this value in the column above box 3 for that employee. If the employee is a salaried worker, compute the total dollar amount of the reduction that exceeds 25% as follows: e. Multiply the amount entered in 3.b. by 8: ______________. Divide this amount by 52: ______________. Enter this value in the column above box 3 for that employee. FTE Reduction Exceptions: Indicate the FTE of (1) any positions for which the Borrower made a good-faith, written offer to rehire an employee during the Covered Period or the Alternative Payroll Covered Period which was rejected by the employee; and (2) any employees who during the Covered Period or the Alternative Payroll Covered Period (a) were fired for cause, (b) voluntarily resigned, or (c) voluntarily requested and received a reduction of their hours. In all of these cases, include these FTEs on this line only if the position was not filled by a new employee. Any FTE reductions in these cases do not reduce the Borrower’s loan forgiveness. Boxes 1 through 5: Enter the sums of the amounts in each of the columns. FTE Reduction Safe Harbor A safe harbor under applicable law and regulation exempts certain borrowers from the loan forgiveness reduction based on FTE employee levels. Specifically, the Borrower is exempt from the reduction in loan forgiveness based on FTE employees described above if both of the following conditions are met: (1) the Borrower reduced its FTE employee levels in the period beginning February 15, 2020, and ending April 26, 2020; and (2) the Borrower then restored its FTE employee levels by not later than June 30, 2020 to its FTE employee levels in the Borrower’s pay period that included February 15, 2020. Paycheck Protection Program OMB Control Number 3245-0407 Loan Forgiveness Application Expiration Date: 10/31/2020 SBA Form 3508 (05/20) Page 9 PPP Schedule A Worksheet Table 1: List employees who: • Were employed by the Borrower at any point during the Covered Period or the Alternative Payroll Covered Period whose principal place of residence is in the United States; and • Received compensation from the Borrower at an annualized rate of less than or equal to $100,000 for all pay periods in 2019 or were not employed by the Borrower at any point in 2019. Employee's Name Employee Identifier Cash Compensation Average FTE FTE Reduction Exceptions: Totals: Box 1 Box 2 Box 3 Salary / Hourly Wage Reduction Table 2: List employees who: • Were employed by the Borrower at any point during the Covered Period or the Alternative Payroll Covered Period whose principal place of residence is in the United States; and • Received compensation from the Borrower at an annualized rate of more than $100,000 for any pay period in 2019. Employee's Name Employee Identifier Cash Compensation Totals: Box 4 Box 5 Average FTE Attach additional tables if additional rows are needed. FTE Reduction Safe Harbor: Step 1. Enter the borrower’s total average FTE between February 15, 2020 and April 26, 2020. Follow the same method that was used to calculate Average FTE in the PPP Schedule A Worksheet Tables. Sum across all employees and enter: ______________. Step 2. Enter the borrower’s total FTE in the Borrower’s pay period inclusive of February 15, 2020. Follow the same method that was used in step 1: ______________. Step 3. If the entry for step 2 is greater than step 1, proceed to step 4. Otherwise, the FTE Reduction Safe Harbor is not applicable and the Borrower must complete line 13 of PPP Schedule A by dividing line 12 by line 11 of that schedule. Step 4. Enter the borrower’s total FTE as of June 30, 2020: ______________. Step 5. If the entry for step 4 is greater than or equal to step 2, enter 1.0 on line 13 of PPP Schedule A; the FTE Reduction Safe Harbor has been satisfied. Otherwise, the FTE Reduction Safe Harbor does not apply and the Borrower must complete line 13 of PPP Schedule A by dividing line 12 by line 11 of that schedule. Paycheck Protection Program OMB Control Number 3245-0407 Loan Forgiveness Application Expiration Date: 10/31/2020 SBA Form 3508 (05/20) Page 10 Documents that Each Borrower Must Submit with its PPP Loan Forgiveness Application PPP Loan Forgiveness Calculation Form PPP Schedule A Payroll: Documentation verifying the eligible cash compensation and non-cash benefit payments from the Covered Period or the Alternative Payroll Covered Period consisting of each of the following: a. Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees. b. Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered Period: i. Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and ii. State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state. c. Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the Borrower included in the forgiveness amount (PPP Schedule A, lines (6) and (7)). FTE: Documentation showing (at the election of the Borrower): a. the average number of FTE employees on payroll per month employed by the Borrower between February 15, 2019 and June 30, 2019; b. the average number of FTE employees on payroll per month employed by the Borrower between January 1, 2020 and February 29, 2020; or c. in the case of a seasonal employer, the average number of FTE employees on payroll per month employed by the Borrower between February 15, 2019 and June 30, 2019; between January 1, 2020 and February 29, 2020; or any consecutive twelveweek period between May 1, 2019 and September 15, 2019. The selected time period must be the same time period selected for purposes of completing PPP Schedule A, line 11. Documents may include payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941) and state quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state. Documents submitted may cover periods longer than the specific time period. Nonpayroll: Documentation verifying existence of the obligations/services prior to February 15, 2020 and eligible payments from the Covered Period. a. Business mortgage interest payments: Copy of lender amortization schedule and receipts or cancelled checks verifying eligible payments from the Covered Period; or lender account statements from February 2020 and the months of the Covered Period through one month after the end of the Covered Period verifying interest amounts and eligible payments. b. Business rent or lease payments: Copy of current lease agreement and receipts or cancelled checks verifying eligible payments from the Covered Period; or lessor account statements from February 2020 and from the Covered Period through one month after the end of the Covered Period verifying eligible payments. c. Business utility payments: Copy of invoices from February 2020 and those paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments. Documents that Each Borrower Must Maintain but is Not Required to Submit PPP Schedule A Worksheet or its equivalent and the following: a. Documentation supporting the listing of each individual employee in PPP Schedule A Worksheet Table 1, including the “Salary/Hourly Wage Reduction” calculation, if necessary. b. Documentation supporting the listing of each individual employee in PPP Schedule A Worksheet Table 2; specifically, that each listed employee received during any single pay period in 2019 compensation at an annualized rate of more than $100,000. c. Documentation regarding any employee job offers and refusals, firings for cause, voluntary resignations, and written requests by any employee for reductions in work schedule. d. Documentation supporting the PPP Schedule A Worksheet “FTE Reduction Safe Harbor.” All records relating to the Borrower’s PPP loan, including documentation submitted with its PPP loan application, documentation supporting the Borrower’s certifications as to the necessity of the loan request and its eligibility for a PPP loan, documentation necessary to support the Borrower’s loan forgiveness application, and documentation demonstrating the Borrower’s material compliance with PPP requirements. The Borrower must retain all such documentation in its files for six years after the date the loan is forgiven or repaid in full, and permit authorized representatives of SBA, including representatives of its Office of Inspector General, to access such files upon request. Paycheck Protection Program OMB Control Number 3245-0407 Loan Forgiveness Application Expiration Date: 10/31/2020 SBA Form 3508 (05/20) Page 11 PPP Borrower Demographic Information Form (Optional) Instructions 1. Purpose. Veteran/gender/race/ethnicity data is collected for program reporting purposes only. 2. Description. This form requests information about each of the Borrower’s Principals. Add additional sheets if necessary. 3. Definition of Principal. The term “Principal” means: • For a self-employed individual, independent contractor, or a sole proprietor, the self-employed individual, independent contractor, or sole proprietor. • For a partnership, all general partners and all limited partners owning 20% or more of the equity of the Borrower, or any partner that is involved in the management of the Borrower’s business. • For a corporation, all owners of 20% or more of the Borrower, and each officer and director. • For a limited liability company, all members owning 20% or more of the Borrower, and each officer and director. • Any individual hired by the Borrower to manage the day-to-day operations of the Borrower (“key employee”). • Any trustor (if the Borrower is owned by a trust). • For a nonprofit organization, the officers and directors of the Borrower. 4. Principal Name. Insert the full name of the Principal. 5. Position. Identify the Principal’s position; for example, self-employed individual; independent contractor; sole proprietor; general partner; owner; officer; director; member; or key employee. Principal Name Position Disclosure is voluntary and will have no bearing on the loan forgiveness decision Paperwork Reduction Act – You are not required to respond to this collection of information unless it displays a currently valid OMB Control Number. The estimated time for completing this application, including gathering data needed, is 180 minutes. Comments about this time or the information requested should be sent to Small Business Administration, Director, Records Management Division, 409 3rd St., SW, Washington DC 20416, and/or SBA Desk Officer, Office of Management and Budget, New Executive Office Building, Washington DC 20503. Veteran 1=Non-Veteran; 2=Veteran; 3=Service-Disabled Veteran; 4=Spouse of Veteran; X=Not Disclosed Gender M=Male; F=Female; X=Not Disclosed Race (more than 1 may be selected) 1=American Indian or Alaska Native; 2=Asian; 3=Black or African-American; 4=Native Hawaiian or Pacific Islander; 5=White; X=Not Disclosed Ethnicity H=Hispanic or Latino; N=Not Hispanic or Latino; X=Not Disclosed
https://www.mass.gov/service-details/the-history-of-the-massachusetts-environmental-police
Environmental Police
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Enforcement responsibilities
The Environmental Police is the primary enforcement agency of the Commonwealth’s boating and recreational vehicle laws and regulations.
The Office of Law Enforcement is responsible for registering boats, all terrain vehicles and snowmobiles in Massachusetts. Boating safety enforcement and recreational vehicle enforcement are an every day part of an Environmental Police Officer’s patrol.
With an enforcement fleet of over fifty vessels the Environmental Police patrol all waters of the Commonwealth, both Inland and Coastal.
Officers use 4X4 vehicles, all terrain vehicles and snowmobiles to patrol off-road areas throughout Massachusetts.
These additional enforcement responsibilities compliment our mission of protecting the natural resources of the Commonwealth. "
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The History of the Massachusetts Environmental PoliceA brief history of natural resource conservation in Massachusetts
Conservation Laws in 1600s - 1700s
Massachusetts has had a long history of protecting its natural resources. Some of the earliest hunting and fishing laws date back to 1627 when the Colony of New Plymouth created a law that declared hunting, fowling, and fishing shall be free2. The Massachusetts Bay Colony also declared hunting and fishing to be free in 1641.
“Every inhabitant who is an house-holder shall have free fishing and fowling in any great ponds, bays, coves, and rivers so far as the sea ebbs and flows within the precinct of the town where they dwell unless the freeman of the same town or general court have otherwise appropriated them1.”
The colony also created many laws that paid bounties for killing wolves. In 1630, the Colony created a law that paid one schilling to any colonist who killed a wolf. In 1640, the Massachusetts Bay Colony passed a law which gave forty schillings to any man who killed a wolf with hounds. Many colonists hunted wolves because forty schillings was a sizeable bounty in 1640. The 1640 bounty was equivalent to twenty seven days of a laborers pay6.
“[E]arly Massachusetts laws encouraged residents to keep dogs, such as mastiffs and greyhounds, to use in hunting wolves and authorized town governments to use public funds to purchase and keep wolf-hunting dogs. Towns were also required to set out and bait specific numbers of wolf traps. Any town that neglected its obligation to trap wolves was assessed a fine.”
In 1636, a law was created which stated that no guns or iron traps could be used near the highway4. During the colonial period, alewives were a very important fish used for food and fertilizer. Plymouth colony created some of the country’s earliest fishing regulations to protect the alewives. In 1645, the colony created a law that prohibited the use of nets to catch alewives in the Sandwich river with a fine of ten pounds. In 1661, the Plymouth Colony banned any foreigner without permission from fishing on Cape Cod. In 1668, to protect cod, haddock, and pollock during spawning the Massachusetts Bay Colony banned all fishing in December and January. Fishing of mackerel was also banned in May and June. The penalty for fishing during the spawning period was 5 schillings per barrel.
In 1670, the position of Water Bailiff was created to regulate the Cape Cod Fisheries. Thomas Paine was appointed as the first Water Bailiff. The law required residents of the colony to pay a duty of six pence per barrel of mackerel caught. The duty on mackerel caught by foreigners was one schilling and 6 pence per barrel3.
Water Bailiff Oath
“You shall faithfully serve in the office of Water Bailiff in the Jurisdiction of New Plymouth and shall carefully observe such orders of Court as concerns your said office with special reference unto the improvement thereof at Cape Cod and places adjacent. You shall faithfully discharge the trust imposed upon you in demanding and receiving whatsoever shall be due unto the Colony by such fish as shall be there taken; and shall seasonably give in a true account thereof unto the Treasurer yearly3.”
In 1672, a new law was created which gave the Water Bailiff authority to seize any fish caught by a vessel in Cape Cod Bay that did not pay its duty.
“It is enacted by the Court that if any person or person that shall at any time hereafter ship or load on board any fish, caught at Cape Cod but such as he or they shall give an account of to the water bailiff: All such fish shall be forfeited to the colony’s use. The water bailiff is herby empowered to make seizure of all such fish as shall at any time become forfeit and is to give account thereof to the Treasurer or such as shall be appointed by the magistrates or any four of them to take the said account2.”
In 1673, a law passed which said that all profits from the Cape Cod fishery would be used to fund a public school. In 1684, the taking of mackerel ashore with seines or nets was prohibited under the forfeiture of the seines nets vessels and boats employed. The forfeitures were to be divided between the informer and the colony. Magistrates were authorized to issue warrants to persons empowering them as water bailiffs to make such seizures5.The Massachusetts Bay Colony (situated around present day Boston and Salem) and the Colony of New Plymouth (situated around present day Barnstable County, Plymouth county and Bristol county) unified in 1692 to form the Province of Massachusetts Bay. In 1693, deer hunting was prohibited between January 1st to July 1st. The first offense forty schillings, second offense three pounds, third offense five pounds. In 1710, a law was passed that banned the hunting of waterfowl from any boat, canoe, float, raft, or vessel. The penalty for breaking the law was a fine of forty schillings and a three year prohibition from hunting any waterfowl7. In 1727, the law was revised to include the prohibition of hunting waterfowl at night. The penalty from the crime was split between the person reporting the crime and the poor.
In 1717, to increase the deer population, a law was passed which prohibited any killing of bucks, does, and fawns until August 1st, 1721.
“Whereas the depth of snow in some late winters hath been so great as hath occasioned the destruction of a great part of the deer in this province; to the intent that the said creature (which is both harmless and profitable) may be preserved and increased”.
Massachusetts Appoints First Game Warden in U.S.
Massachusetts was the first in the nation to appoint game wardens in 1739. The first game wardens were first known as “Informers of Deer11” and later on as “Deer Reeves11”. In 1739, the fine for killing a buck, doe, or fawn was increased from forty schillings to ten pounds. Along with the increased fine, every town in the province was now required to appoint two people to enforce the revised law. The two people chosen by the towns were known as “Informers of Deer11” and they were sworn town officers “whose care and duty it shall be to inform of all breaches of this act, and to take care that the violators thereof be duly prosecuted and punished8”. The informers were the first game wardens in the country9. The penalty for towns which did not choose Informers was thirty pounds8. In 1763, the act to increase the deer population in the colony was revised to include moose. The revised law prohibited any hunting of deer and moose from December 21st to August 11th of each year. The law also required each town in the colony to appoint two deer-reeves. The deer reeves duties, like the “Informer of Deers11”, was to enforce the deer protection act and prosecute any offenders. An excerpt from court records:
“At a court in Northampton, March, 1763 John Worthington Esq. Attorney for our sovereign lord the king, in this behalf, here instantly complains and gives this court to understand and be informed, that Azariah Selden of Hadley, in the county of Hampshire, yeoman, on the 8th day of March current, did at said Northampton, wittingly and willingly, with force and arms, kill one wild deer, and then and there had in his possession the raw flesh and raw skin of one wild deer, killed since the 21st day of December last, contrary to a law of this province, the peace of said lord the king, his crown and dignity. He was fined 10 pounds and costs 29 shillings, Noah Smith Jr of Hadley the informer, was to have half the fine”.
Board of Commissioners on Fisheries is Established
In 1865, the Board of Commissioners on Fisheries was created and composed of three members. Deputy commissioners were appointed by the commissioners. The deputy commissioners were given the power to arrest without warrant persons found violating laws. Fishing on Sundays was also banned by an act which said “Whoever attempts to take or catch any fish on the Lord’s Day ... shall be punished by a fine not exceeding ten dollars12”. In 1886, the commission’s authority was extended to the protection and preservation of birds and animals and its name was changed to Board of Commissioners on Fisheries and Game13.In 1899, any hunting of birds and game on Sundays was banned. In 1901, the Attorney General, Hosea M. Knowlton, rendered a decision that the deputies of the commission are no longer allowed to enforce the Sunday fishing ban. The decision made by the attorney general was made because the Sunday fishing ban was not a law relating to inland fisheries.
“Its authority for the enforcement of law being definitely limited to fish and game laws, and the recent rulings and decisions having been established the fact that the law relating to Sunday fishing is “An act for the better observance of the Lord’s day” and not a fish law, it was manifestly our duty to instruct our deputies not to enforce a law which we have no right to enforce12”.
In 1901, the deputy force consisted of paid deputies, special deputies, and unpaid deputies. The paid deputies were employed by the state and served as deputies all year long. The special deputies worked varying terms of service and were employed by the state, hunting clubs, and towns12. In 1902, the Office of Inspector General of Fish was abolished and its power and duties are given to the Board of Commissioners on Fisheries and Game. The deputy force of 1911 consisted of 29 paid deputies, 15 special deputies, and 186 unpaid deputies. In 1912, a new law was passed which authorized that every town and city can appoint a fish and game warden with a salary not exceeding fifty dollars. The town wardens were given the same powers as the commission’s deputies and were paid by the town.
In 1919, the Board of Commissioners on Fisheries and Game was abolished and the Department of Conservation (DOC) was first established.
Division of Fisheries and Game
With the creation of the Department of Conservation all of the states fish and game laws were now enforced by the Division of Fisheries and Game. In 1929, the Bureau of Marine Fisheries was established within the Division of Fisheries and Game. The new legislation also required wardens and deputies to wear a metallic badge when on duty and with authorization to carry a weapon.
“The wardens and deputies, when on duty, shall wear and display a metallic badge bearing the seal of the commonwealth and the words “fish and game warden” or “deputy fish and game warden”, as the case may be. The director, with the approval of the governor, may in writing authorize any warden to have in his possession and carry a revolver, club, billy, handcuffs and twisters, or such other weapon or article required in the performance of his official duty”.
In 1933, the name of the Division of Fisheries and Game was changed to the Division of Game and Inland Fisheries. The Bureau of Marine Fisheries separated from the Division of Game and Inland Fisheries in 193916. The new Division of Marine Fisheries was created to enforce the marine fisheries laws and to appoint coastal wardens. In 1941, a Bureau of Law Enforcement was created within the Division of Game and Inland Fisheries and the Division of Marine Fisheries.
“There shall be in the division a bureau of law enforcement, under the charge of a chief conservation officer. All conservation officers, deputy conservation officers and fish and game wardens of the division shall be assigned to duty in said bureau”.
Enforcing Fish and Game Regulations
In 1945, the authority of officers to enforce game laws on public land including the Quabbin Reservoir without a permit was questioned. The Attorney General, Clarence A. Barnes, ruled in favor of the Division of Fisheries and Game.
“Accordingly, I advise you that the officers of the Division of Fisheries and Game, referred to in G.L (Ter. Ed.) c. 131 S 18 as amended, have the power and duty of enforcing the game laws on the public lands, including those of the Quabbin Reservoir under the control of the Metropolitan District commission, and have the right to enter upon such lands when necessary for the purpose of such enforcement18”.
In 1948, the Division of Law Enforcement was established within the Department of Conservation. The new division consisted of a director who was given the authority to appoint a chief coastal warden and chief conservation officer. The conservation officers enforced inland fish and game laws and the coastal wardens enforced marine fisheries laws19.In 1953, the Department of Conservation changed its name to the Department of Natural Resources. The Division of Law Enforcement was also given the authority to enforce laws relating to marine fisheries, inland fisheries, game, forests, parks, fire, and dogs20. In 1964, the law enforcement responsibilities of the coastal warden service and the conservation officer were combined. The new name of the coastal warden and conservation officer was changed to natural resource officer21. In 1975, the Department of Natural Resources was reorganized and became the Executive Office of Environmental Affairs. The Division of Law Enforcement became the only statewide agency with the primary responsibility to prevent violations of the state’s environmental laws22. In 1978, the Department of Law Enforcement signed a Memorandum of Understanding with the National Marine Fisheries Service to enforce federal laws23. In 1981, the Division of Law Enforcement was transferred back to the Department of Fisheries, Wildlife, and Recreation Vehicles.
Massachusetts Environmental Police is Established
In 1985, the Division of Law Enforcement and the Division of Marine and Recreational Vehicles merged. After the merger, the new agency fell under the Department of Fisheries, Wildlife, and Environmental Law Enforcement. The new department was now called the Massachusetts Environmental Police and officers were now called Environmental Police Officers25.
“The secretary, commissioner, his assistants, director, deputy directors of enforcement, chiefs of enforcement, deputy chiefs of enforcement, environmental police officers and deputy environmental police officers, may in the performance of their duties enter upon; and pass through or over private property or lands whether or not covered by water, and may keep or dispose of sick dead, injured or helpless fish, birds or mammals, that may come into their possession subject to such rules and regulations as said director, with approval of said commissioner, hereby adopts25”.
After September 11th the Environmental Police department’s role changed to include homeland security. In 2003, the department was transferred back to the Executive Office of Environmental Affairs. The name of the department was also changed to the Office of Law Enforcement.
Today, the Massachusetts Environmental Police continues its tradition of environmental law enforcement. The enforcement of fish and game laws including the commercial and recreational harvest of the living marine resources along our coastline is the foundation of the department’s law enforcement mission. Over time, the department’s responsibilities have grown and evolved to include the protection of natural resources, homeland security and law enforcement, safety education, and accident investigation. The department consists of six different bureaus. For more information on the different bureaus please refer to our homepage and see what we do today.
References
Massachusetts has had a long history of protecting its natural resources. Some of the earliest hunting and fishing laws date back to 1627 when the Colony of New Plymouth created a law that declared hunting, fowling, and fishing shall be free2. The Massachusetts Bay Colony also declared hunting and fishing to be free in 1641.
“Every inhabitant who is an house-holder shall have free fishing and fowling in any great ponds, bays, coves, and rivers so far as the sea ebbs and flows within the precinct of the town where they dwell unless the freeman of the same town or general court have otherwise appropriated them1.”
The colony also created many laws that paid bounties for killing wolves. In 1630, the Colony created a law that paid one schilling to any colonist who killed a wolf. In 1640, the Massachusetts Bay Colony passed a law which gave forty schillings to any man who killed a wolf with hounds. Many colonists hunted wolves because forty schillings was a sizeable bounty in 1640. The 1640 bounty was equivalent to twenty seven days of a laborers pay6.
“[E]arly Massachusetts laws encouraged residents to keep dogs, such as mastiffs and greyhounds, to use in hunting wolves and authorized town governments to use public funds to purchase and keep wolf-hunting dogs. Towns were also required to set out and bait specific numbers of wolf traps. Any town that neglected its obligation to trap wolves was assessed a fine.”
In 1636, a law was created which stated that no guns or iron traps could be used near the highway4. During the colonial period, alewives were a very important fish used for food and fertilizer. Plymouth colony created some of the country’s earliest fishing regulations to protect the alewives. In 1645, the colony created a law that prohibited the use of nets to catch alewives in the Sandwich river with a fine of ten pounds. In 1661, the Plymouth Colony banned any foreigner without permission from fishing on Cape Cod. In 1668, to protect cod, haddock, and pollock during spawning the Massachusetts Bay Colony banned all fishing in December and January. Fishing of mackerel was also banned in May and June. The penalty for fishing during the spawning period was 5 schillings per barrel.
In 1670, the position of Water Bailiff was created to regulate the Cape Cod Fisheries. Thomas Paine was appointed as the first Water Bailiff. The law required residents of the colony to pay a duty of six pence per barrel of mackerel caught. The duty on mackerel caught by foreigners was one schilling and 6 pence per barrel3.
Water Bailiff Oath
“You shall faithfully serve in the office of Water Bailiff in the Jurisdiction of New Plymouth and shall carefully observe such orders of Court as concerns your said office with special reference unto the improvement thereof at Cape Cod and places adjacent. You shall faithfully discharge the trust imposed upon you in demanding and receiving whatsoever shall be due unto the Colony by such fish as shall be there taken; and shall seasonably give in a true account thereof unto the Treasurer yearly3.”
In 1672, a new law was created which gave the Water Bailiff authority to seize any fish caught by a vessel in Cape Cod Bay that did not pay its duty.
“It is enacted by the Court that if any person or person that shall at any time hereafter ship or load on board any fish, caught at Cape Cod but such as he or they shall give an account of to the water bailiff: All such fish shall be forfeited to the colony’s use. The water bailiff is herby empowered to make seizure of all such fish as shall at any time become forfeit and is to give account thereof to the Treasurer or such as shall be appointed by the magistrates or any four of them to take the said account2.”
In 1673, a law passed which said that all profits from the Cape Cod fishery would be used to fund a public school. In 1684, the taking of mackerel ashore with seines or nets was prohibited under the forfeiture of the seines nets vessels and boats employed. The forfeitures were to be divided between the informer and the colony. Magistrates were authorized to issue warrants to persons empowering them as water bailiffs to make such seizures5.The Massachusetts Bay Colony (situated around present day Boston and Salem) and the Colony of New Plymouth (situated around present day Barnstable County, Plymouth county and Bristol county) unified in 1692 to form the Province of Massachusetts Bay. In 1693, deer hunting was prohibited between January 1st to July 1st. The first offense forty schillings, second offense three pounds, third offense five pounds. In 1710, a law was passed that banned the hunting of waterfowl from any boat, canoe, float, raft, or vessel. The penalty for breaking the law was a fine of forty schillings and a three year prohibition from hunting any waterfowl7. In 1727, the law was revised to include the prohibition of hunting waterfowl at night. The penalty from the crime was split between the person reporting the crime and the poor.
In 1717, to increase the deer population, a law was passed which prohibited any killing of bucks, does, and fawns until August 1st, 1721.
“Whereas the depth of snow in some late winters hath been so great as hath occasioned the destruction of a great part of the deer in this province; to the intent that the said creature (which is both harmless and profitable) may be preserved and increased”.
Massachusetts Appoints First Game Warden in U.S.
Massachusetts was the first in the nation to appoint game wardens in 1739. The first game wardens were first known as “Informers of Deer11” and later on as “Deer Reeves11”. In 1739, the fine for killing a buck, doe, or fawn was increased from forty schillings to ten pounds. Along with the increased fine, every town in the province was now required to appoint two people to enforce the revised law. The two people chosen by the towns were known as “Informers of Deer11” and they were sworn town officers “whose care and duty it shall be to inform of all breaches of this act, and to take care that the violators thereof be duly prosecuted and punished8”. The informers were the first game wardens in the country9. The penalty for towns which did not choose Informers was thirty pounds8. In 1763, the act to increase the deer population in the colony was revised to include moose. The revised law prohibited any hunting of deer and moose from December 21st to August 11th of each year. The law also required each town in the colony to appoint two deer-reeves. The deer reeves duties, like the “Informer of Deers11”, was to enforce the deer protection act and prosecute any offenders. An excerpt from court records:
“At a court in Northampton, March, 1763 John Worthington Esq. Attorney for our sovereign lord the king, in this behalf, here instantly complains and gives this court to understand and be informed, that Azariah Selden of Hadley, in the county of Hampshire, yeoman, on the 8th day of March current, did at said Northampton, wittingly and willingly, with force and arms, kill one wild deer, and then and there had in his possession the raw flesh and raw skin of one wild deer, killed since the 21st day of December last, contrary to a law of this province, the peace of said lord the king, his crown and dignity. He was fined 10 pounds and costs 29 shillings, Noah Smith Jr of Hadley the informer, was to have half the fine”.
Board of Commissioners on Fisheries is Established
In 1865, the Board of Commissioners on Fisheries was created and composed of three members. Deputy commissioners were appointed by the commissioners. The deputy commissioners were given the power to arrest without warrant persons found violating laws. Fishing on Sundays was also banned by an act which said “Whoever attempts to take or catch any fish on the Lord’s Day ... shall be punished by a fine not exceeding ten dollars12”. In 1886, the commission’s authority was extended to the protection and preservation of birds and animals and its name was changed to Board of Commissioners on Fisheries and Game13.In 1899, any hunting of birds and game on Sundays was banned. In 1901, the Attorney General, Hosea M. Knowlton, rendered a decision that the deputies of the commission are no longer allowed to enforce the Sunday fishing ban. The decision made by the attorney general was made because the Sunday fishing ban was not a law relating to inland fisheries.
“Its authority for the enforcement of law being definitely limited to fish and game laws, and the recent rulings and decisions having been established the fact that the law relating to Sunday fishing is “An act for the better observance of the Lord’s day” and not a fish law, it was manifestly our duty to instruct our deputies not to enforce a law which we have no right to enforce12”.
In 1901, the deputy force consisted of paid deputies, special deputies, and unpaid deputies. The paid deputies were employed by the state and served as deputies all year long. The special deputies worked varying terms of service and were employed by the state, hunting clubs, and towns12. In 1902, the Office of Inspector General of Fish was abolished and its power and duties are given to the Board of Commissioners on Fisheries and Game. The deputy force of 1911 consisted of 29 paid deputies, 15 special deputies, and 186 unpaid deputies. In 1912, a new law was passed which authorized that every town and city can appoint a fish and game warden with a salary not exceeding fifty dollars. The town wardens were given the same powers as the commission’s deputies and were paid by the town.
In 1919, the Board of Commissioners on Fisheries and Game was abolished and the Department of Conservation (DOC) was first established.
Division of Fisheries and Game
With the creation of the Department of Conservation all of the states fish and game laws were now enforced by the Division of Fisheries and Game. In 1929, the Bureau of Marine Fisheries was established within the Division of Fisheries and Game. The new legislation also required wardens and deputies to wear a metallic badge when on duty and with authorization to carry a weapon.
“The wardens and deputies, when on duty, shall wear and display a metallic badge bearing the seal of the commonwealth and the words “fish and game warden” or “deputy fish and game warden”, as the case may be. The director, with the approval of the governor, may in writing authorize any warden to have in his possession and carry a revolver, club, billy, handcuffs and twisters, or such other weapon or article required in the performance of his official duty”.
In 1933, the name of the Division of Fisheries and Game was changed to the Division of Game and Inland Fisheries. The Bureau of Marine Fisheries separated from the Division of Game and Inland Fisheries in 193916. The new Division of Marine Fisheries was created to enforce the marine fisheries laws and to appoint coastal wardens. In 1941, a Bureau of Law Enforcement was created within the Division of Game and Inland Fisheries and the Division of Marine Fisheries.
“There shall be in the division a bureau of law enforcement, under the charge of a chief conservation officer. All conservation officers, deputy conservation officers and fish and game wardens of the division shall be assigned to duty in said bureau”.
Enforcing Fish and Game Regulations
In 1945, the authority of officers to enforce game laws on public land including the Quabbin Reservoir without a permit was questioned. The Attorney General, Clarence A. Barnes, ruled in favor of the Division of Fisheries and Game.
“Accordingly, I advise you that the officers of the Division of Fisheries and Game, referred to in G.L (Ter. Ed.) c. 131 S 18 as amended, have the power and duty of enforcing the game laws on the public lands, including those of the Quabbin Reservoir under the control of the Metropolitan District commission, and have the right to enter upon such lands when necessary for the purpose of such enforcement18”.
In 1948, the Division of Law Enforcement was established within the Department of Conservation. The new division consisted of a director who was given the authority to appoint a chief coastal warden and chief conservation officer. The conservation officers enforced inland fish and game laws and the coastal wardens enforced marine fisheries laws19.In 1953, the Department of Conservation changed its name to the Department of Natural Resources. The Division of Law Enforcement was also given the authority to enforce laws relating to marine fisheries, inland fisheries, game, forests, parks, fire, and dogs20. In 1964, the law enforcement responsibilities of the coastal warden service and the conservation officer were combined. The new name of the coastal warden and conservation officer was changed to natural resource officer21. In 1975, the Department of Natural Resources was reorganized and became the Executive Office of Environmental Affairs. The Division of Law Enforcement became the only statewide agency with the primary responsibility to prevent violations of the state’s environmental laws22. In 1978, the Department of Law Enforcement signed a Memorandum of Understanding with the National Marine Fisheries Service to enforce federal laws23. In 1981, the Division of Law Enforcement was transferred back to the Department of Fisheries, Wildlife, and Recreation Vehicles.
Massachusetts Environmental Police is Established
In 1985, the Division of Law Enforcement and the Division of Marine and Recreational Vehicles merged. After the merger, the new agency fell under the Department of Fisheries, Wildlife, and Environmental Law Enforcement. The new department was now called the Massachusetts Environmental Police and officers were now called Environmental Police Officers25.
“The secretary, commissioner, his assistants, director, deputy directors of enforcement, chiefs of enforcement, deputy chiefs of enforcement, environmental police officers and deputy environmental police officers, may in the performance of their duties enter upon; and pass through or over private property or lands whether or not covered by water, and may keep or dispose of sick dead, injured or helpless fish, birds or mammals, that may come into their possession subject to such rules and regulations as said director, with approval of said commissioner, hereby adopts25”.
After September 11th the Environmental Police department’s role changed to include homeland security. In 2003, the department was transferred back to the Executive Office of Environmental Affairs. The name of the department was also changed to the Office of Law Enforcement.
Today, the Massachusetts Environmental Police continues its tradition of environmental law enforcement. The enforcement of fish and game laws including the commercial and recreational harvest of the living marine resources along our coastline is the foundation of the department’s law enforcement mission. Over time, the department’s responsibilities have grown and evolved to include the protection of natural resources, homeland security and law enforcement, safety education, and accident investigation. The department consists of six different bureaus. For more information on the different bureaus please refer to our homepage and see what we do today.
References
- Boston, 1887, The Colonial Laws of Massachusetts Colony ,1672 edition
- Nathaniel B. Shurtleff and David Pulsifer ,1968, Records of the Colony of New Plymouth in New England
- Dutton & Wentworth, 1836, The compact with the charter & laws of the Colony of New Plymouth
- Boston ,1814,The Charter and General Laws of the Colony and Province of Massachusetts Bay
- Francis Baylies, Samuel Gardner Drake Wiggin & Lunt, 1866 pt. 3. Narrative of the war with King Philip ; pt. 4. From the close of the war in 1677 to the union between Plymouth and Massachusetts; pt. 5. Additions and corrections with analytical index to the whole.
- Rick McIntyre,1995, War Against the Wolf: America's Campaign to Exterminate the Wolf
- Boston, 1869, The Acts and Resolves, Public and Private, of the Province of the Massachusetts Bay: To which are Prefixed the Charters of the Province. With Historical and Explanatory Notes, and an Appendix. Volume I
- Boston, 1874, The Acts and Resolves, Public and Private, of the Province of the Massachusetts Bay: To which are Prefixed the Charters of the Province. With Historical and Explanatory Notes, and an Appendix. Volume II
- T.S Palmer,1912, American game protection, 1776-1911 (Volume no. 41)
- Boston, 1881, The Acts and Resolves, Public and Private, of the Province of the Massachusetts Bay: To which are Prefixed the Charters of the Province. With Historical and Explanatory Notes, and an Appendix. Volume IV
- Sylvester Judd, Lucius Manlius Boltwood 1863 Amherst, MA, History of Hadley: Including the Early History of Hatfield, South Hadley, Amherst and Granby, Massachusetts
- Boston, 1897, 31st to 36th Annual Report of Commissioners on Inland Fisheries and Game of Massachusetts
- R.W. Williams,1907,Washington Game commissions and wardens : their appointment, powers and duties
- Boston, 1912, Acts and Resolves Passed By the General Court of Massachusetts in The Year 1912
- Boston, 1929, Acts and Resolves Passed By the General Court of Massachusetts in The Year 1929
- Boston, 1939, Acts and Resolves Passed By the General Court of Massachusetts in The Year 1939
- Boston, 1941, Acts and Resolves Passed By the General Court of Massachusetts in The Year 1941
- Boston, 1945, The Commonwealth of Massachusetts Report of The Attorney General For The Year Ending June 30, 1945
- Boston, 1948, Acts and Resolves Passed By the General Court of Massachusetts in The Year 1948
- Boston, 1953, Acts and Resolves Passed By the General Court of Massachusetts in The Year 1953
- Boston, 1964, Acts and Resolves Passed By the General Court of Massachusetts in The Year 1964
- Boston, 1975, Acts and Resolves Passed By the General Court of Massachusetts in The Year 1975
- Boston, 1978, Acts and Resolves Passed By the General Court of Massachusetts in The Year 1978
- Boston, 1981, Acts and Resolves Passed By the General Court of Massachusetts in The Year 1981
- Boston, 1985, Acts and Resolves Passed By the General Court of Massachusetts in The Year 1985 "
The amount of loan forgiveness the Borrower applies for may be subject to reductions as explained in PPP Schedule A.
"
Paycheck Protection Program OMB Control Number 3245-0407L oan Forgiveness Application Expiration Date: 10/31/2020
SBA Form 3508 (05/20)
Page 1
LOAN FORGIVENESS APPLICATION INSTRUCTIONS FOR BORROWERS
To apply for forgiveness of your Paycheck Protection Program (PPP) loan,
you (the Borrower) must complete this application as directed in these instructions,
and submit it to your Lender (or the Lender that is servicing your loan).
Borrowers may also complete this application electronically through their Lender.
This application has the following components:
(1) the PPP Loan Forgiveness Calculation Form;
(2) PPP Schedule A;
(3) the PPP Schedule A Worksheet;
and (4) the (optional) PPP Borrower Demographic Information Form.
All Borrowers must submit
(1) and (2) to their Lender. Instructions for PPP Loan Forgiveness Calculation Form Business Legal Name (“Borrower”)/DBA
or Tradename (if applicable)/Business TIN (EIN, SSN):
Enter the same information as on your Borrower Application Form.
Business Address/Business Phone/Primary Contact/E-mail Address:
Enter the same information as on your Borrower Application Form,
unless there has been a change in address or contact information.
SBA PPP Loan Number: Enter the loan number assigned by SBA at the time of loan approval. Request this number from the Lender if necessary.
Lender PPP Loan Number:
Enter the loan number assigned to the PPP loan by the Lender. PPP Loan Amount: Enter the disbursed principal amount of the PPP loan (the total loan amount you received from the Lender). Employees at Time of Loan Application: Enter the total number of employees at the time of the Borrower’s PPP Loan Application. Employees at Time of Forgiveness Application: Enter the total number of employees at the time the Borrower is applying for loan forgiveness. PPP Loan Disbursement Date: Enter the date that you received the PPP loan proceeds from the Lender. If loan proceeds were received on more than one date, enter the first date on which you received PPP loan proceeds. EIDL Advance Amount: If the Borrower received an Economic Injury Disaster Loan (EIDL) advance, enter the amount. EIDL Application Number: If the Borrower applied for an EIDL, enter the Borrower’s EIDL Application Number. Payroll Schedule: Select the box that corresponds to your payroll schedule. Covered Period: Enter the eight-week (56-day) Covered Period of your PPP loan. The first day of the Covered Period must be the same as the PPP Loan Disbursement Date. For example, if the Borrower received its PPP loan proceeds on Monday, April 20, the first day of the Covered Period is April 20 and the last day of the Covered Period is Sunday, June 14. Alternative Payroll Covered Period: For administrative convenience, Borrowers with a biweekly (or more frequent) payroll schedule may elect to calculate eligible payroll costs using the eight-week (56-day) period that begins on the first day of their first pay period following their PPP Loan Disbursement Date (the “Alternative Payroll Covered Period”). For example, if the Borrower received its PPP loan proceeds on Monday, April 20, and the first day of its first pay period following its PPP loan disbursement is Sunday, April 26, the first day of the Alternative Payroll Covered Period is April 26 and the last day of the Alternative Payroll Covered Period is Saturday, June 20. Borrowers who elect to use the Alternative Payroll Covered Period must apply the Alternative Payroll Covered Period wherever there is a reference in this application to “the Covered Period or the Alternative Payroll Covered Period.” However, Borrowers must apply the Covered Period (not the Alternative Payroll Covered Period) wherever there is a reference in this application to “the Covered Period” only. If Borrower Received PPP Loans in Excess of $2 Million: Check the box if the Borrower, together with its affiliates (to the extent required under SBA’s interim final rule on affiliates (85 FR 20817 (April 15, 2020)) and not waived under 15 U.S.C. 636(a)(36)(D)(iv)), received PPP loans with an original principal amount in excess of $2 million. Forgiveness Amount Calculation (see Summary of Costs Eligible for Forgiveness below): Line 1: Enter total eligible payroll costs incurred or paid during the Covered Period or the Alternative Payroll Covered Period. Paycheck Protection Program OMB Control Number 3245-0407 Loan Forgiveness Application Expiration Date: 10/31/2020 SBA Form 3508 (05/20) Page 2 To calculate these costs, complete PPP Schedule A. Enter the amount from PPP Schedule A, line 10. Line 2: Enter the amount of business mortgage interest payments during the Covered Period for any business mortgage obligation on real or personal property incurred before February 15, 2020. Do not include prepayments. Line 3: Enter the amount of business rent or lease payments for real or personal property during the Covered Period, pursuant to lease agreements in force before February 15, 2020. Line 4: Enter the amount of business utility payments during the Covered Period, for business utilities for which service began before February 15, 2020. NOTE: For lines 2-4, you are not required to report payments that you do not want to include in the forgiveness amount. Line 5: Enter the number from PPP Schedule A, line 3. This amount reflects the loan forgiveness reduction required for salary/hourly wage reductions in excess of 25% for certain employees as described in PPP Schedule A. Line 6: Add lines 1 through 4, subtract line 5, enter the total. If this amount is less than zero, enter a zero. Line 7: Enter the number from PPP Schedule A, line 13. Line 8: Enter the amount on line 6 multiplied by the amount on line 7. This calculation incorporates the loan forgiveness reduction required for any full-time equivalency (FTE) employee reductions as described in PPP Schedule A. Line 9: Enter the PPP Loan Amount. Line 10: Divide the amount on line 1 by 0.75, and enter the amount. This determines whether at least 75% of the potential forgiveness amount was used for payroll costs. For more information, see Interim Final Rule on Paycheck Protection Program posted on April 2, 2020 (85 FR 20811). Line 11: Enter the smallest of lines 8, 9, or 10. Note: If applicable, SBA will deduct EIDL Advance Amounts from the forgiveness amount remitted to the Lender. Summary of Costs Eligible for Forgiveness: Borrowers are eligible for loan forgiveness for the following costs: 1. Eligible payroll costs. Borrowers are generally eligible for forgiveness for the payroll costs paid and payroll costs incurred during the eight-week (56-day) Covered Period (or Alternative Payroll Covered Period) (“payroll costs”). Payroll costs are considered paid on the day that paychecks are distributed or the Borrower originates an ACH credit transaction. Payroll costs are considered incurred on the day that the employee’s pay is earned. Payroll costs incurred but not paid during the Borrower’s last pay period of the Covered Period (or Alternative Payroll Covered Period) are eligible for forgiveness if paid on or before the next regular payroll date. Otherwise, payroll costs must be paid during the Covered Period (or Alternative Payroll Covered Period). For each individual employee, the total amount of cash compensation eligible for forgiveness may not exceed an annual salary of $100,000, as prorated for the covered period. Count payroll costs that were both paid and incurred only once. For information on what qualifies as payroll costs, see Interim Final Rule on Paycheck Protection Program posted on April 2, 2020 (85 FR 20811). 2. Eligible nonpayroll costs. Nonpayroll costs eligible for forgiveness consist of: (a) covered mortgage obligations: payments of interest (not including any prepayment or payment of principal) on any business mortgage obligation on real or personal property incurred before February 15, 2020 (“business mortgage interest payments”); (b) covered rent obligations: business rent or lease payments pursuant to lease agreements for real or personal property in force before February 15, 2020 (“business rent or lease payments”); and (c) covered utility payments: business payments for a service for the distribution of electricity, gas, water, transportation, telephone, or internet access for which service began before February 15, 2020 (“business utility payments”). An eligible nonpayroll cost must be paid during the Covered Period or incurred during the Covered Period and paid on or before the next regular billing date, even if the billing date is after the Covered Period. Eligible nonpayroll costs cannot exceed 25% of the total forgiveness amount. Count nonpayroll costs that were both paid and incurred only once. The amount of loan forgiveness the Borrower applies for may be subject to reductions as explained in PPP Schedule A. Paycheck Protection Program OMB Control Number 3245-0407 Loan Forgiveness Application Expiration Date: 10/31/2020 SBA Form 3508 (05/20) Page 3 PPP Loan Forgiveness Calculation Form Business Legal Name (“Borrower”) DBA or Tradename, if applicable Business Address Business TIN (EIN, SSN) Business Phone ( ) - Primary Contact E-mail Address SBA PPP Loan Number: ________________________ Lender PPP Loan Number: __________________________ PPP Loan Amount: _____________________________ PPP Loan Disbursement Date: _______________________ Employees at Time of Loan Application: ___________ Employees at Time of Forgiveness Application: ___________ EIDL Advance Amount: ________________________ EIDL Application Number: __________________________ Payroll Schedule: The frequency with which payroll is paid to employees is: ☐ Weekly ☐ Biweekly (every other week) ☐ Twice a month ☐ Monthly ☐ Other _____________ Covered Period: ________________________ to ________________________ Alternative Payroll Covered Period, if applicable: ________________________ to _______________________ If Borrower (together with affiliates, if applicable) received PPP loans in excess of $2 million, check here: ☐ Forgiveness Amount Calculation: Payroll and Nonpayroll Costs Line 1. Payroll Costs (enter the amount from PPP Schedule A, line 10): _____________________ Line 2. Business Mortgage Interest Payments: _____________________ Line 3. Business Rent or Lease Payments: _____________________ Line 4. Business Utility Payments: _____________________ Adjustments for Full-Time Equivalency (FTE) and Salary/Hourly Wage Reductions Line 5. Total Salary/Hourly Wage Reduction (enter the amount from PPP Schedule A, line 3): _____________________ Line 6. Add the amounts on lines 1, 2, 3, and 4, then subtract the amount entered in line 5: _____________________ Line 7. FTE Reduction Quotient (enter the number from PPP Schedule A, line 13): _____________________ Potential Forgiveness Amounts Line 8. Modified Total (multiply line 6 by line 7): _____________________ Line 9. PPP Loan Amount: _____________________ Line 10. Payroll Cost 75% Requirement (divide line 1 by 0.75): _____________________ Forgiveness Amount Line 11. Forgiveness Amount (enter the smallest of lines 8, 9, and 10): _____________________ Paycheck Protection Program OMB Control Number 3245-0407 Loan Forgiveness Application Expiration Date: 10/31/2020 SBA Form 3508 (05/20) Page 4 By Signing Below, You Make the Following Representations and Certifications on Behalf of the Borrower: The authorized representative of the Borrower certifies to all of the below by initialing next to each one. _____ The dollar amount for which forgiveness is requested: • was used to pay costs that are eligible for forgiveness (payroll costs to retain employees; business mortgage interest payments; business rent or lease payments; or business utility payments); • includes all applicable reductions due to decreases in the number of full-time equivalent employees and salary/hourly wage reductions; • does not include nonpayroll costs in excess of 25% of the amount requested; and • does not exceed eight weeks’ worth of 2019 compensation for any owner-employee or self-employed individual/general partner, capped at $15,385 per individual. _____ I understand that if the funds were knowingly used for unauthorized purposes, the federal government may pursue recovery of loan amounts and/or civil or criminal fraud charges. _____ The Borrower has accurately verified the payments for the eligible payroll and nonpayroll costs for which the Borrower is requesting forgiveness. _____ I have submitted to the Lender the required documentation verifying payroll costs, the existence of obligations and service (as applicable) prior to February 15, 2020, and eligible business mortgage interest payments, business rent or lease payments, and business utility payments. _____ The information provided in this application and the information provided in all supporting documents and forms is true and correct in all material respects. I understand that knowingly making a false statement to obtain forgiveness of an SBA-guaranteed loan is punishable under the law, including 18 USC 1001 and 3571 by imprisonment of not more than five years and/or a fine of up to $250,000; under 15 USC 645 by imprisonment of not more than two years and/or a fine of not more than $5,000; and, if submitted to a Federally insured institution, under 18 USC 1014 by imprisonment of not more than thirty years and/or a fine of not more than $1,000,000. _____ The tax documents I have submitted to the Lender are consistent with those the Borrower has submitted/will submit to the IRS and/or state tax or workforce agency. I also understand, acknowledge, and agree that the Lender can share the tax information with SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of ensuring compliance with PPP requirements and all SBA reviews. _____ I understand, acknowledge, and agree that SBA may request additional information for the purposes of evaluating the Borrower’s eligibility for the PPP loan and for loan forgiveness, and that the Borrower’s failure to provide information requested by SBA may result in a determination that the Borrower was ineligible for the PPP loan or a denial of the Borrower’s loan forgiveness application. The Borrower’s eligibility for loan forgiveness will be evaluated in accordance with the PPP regulations and guidance issued by SBA through the date of this application. SBA may direct a lender to disapprove the Borrower’s loan forgiveness application if SBA determines that the Borrower was ineligible for the PPP loan. _____________________________________________________ ____________________________ Signature of Authorized Representative of Borrower Date _____________________________________________________ ____________________________ Print Name Title Paycheck Protection Program OMB Control Number 3245-0407 Loan Forgiveness Application Expiration Date: 10/31/2020 SBA Form 3508 (05/20) Page 5 Instructions for PPP Schedule A Lines 1 through 5: Enter the amounts from PPP Schedule A Worksheet Tables as directed. Enter the amount from line 3 of PPP Schedule A on line 5 of the Loan Forgiveness Application Form. For lines 6 through 9, during the Covered Period or the Alternative Payroll Covered Period: Line 6: Enter the total amount paid by the Borrower for employer contributions for employee health insurance, including employer contributions to a self-insured, employer-sponsored group health plan, but excluding any pre-tax or after tax contributions by employees. Line 7: Enter the total amount paid by the Borrower for employer contributions to employee retirement plans, excluding any pre-tax or after-tax contributions by employees. Line 8: Enter the total amount paid by the Borrower for employer state and local taxes assessed on employee compensation (e.g., state unemployment insurance tax); do not list any taxes withheld from employee earnings. Line 9: Enter any amounts paid to owners (owner-employees, a self-employed individual, or general partners). This amount is capped at $15,385 (the eight-week equivalent of $100,000 per year) for each individual or the eight-week equivalent of their applicable compensation in 2019, whichever is lower. See Interim Final Rule on Additional Eligibility Criteria and Requirements for Certain Pledges of Loans posted on April 14, 2020 for more information (85 FR 21747, 21749). Line 10: Add lines 1, 4, 6, 7, 8, and 9. Enter this amount on line 1 on the PPP Loan Forgiveness Calculation Form. Line 11: Enter the Borrower’s total average weekly full-time equivalency (FTE) during the chosen reference period. For purposes of this calculation, the reference period is, at the Borrower’s election, either (i) February 15, 2019 to June 30, 2019; (ii) January 1, 2020 to February 29, 2020; or (iii) in the case of seasonal employers, either of the preceding periods or a consecutive twelve-week period between May 1, 2019 and September 15, 2019. For each employee, follow the same method that was used to calculate Average FTE on the PPP Schedule A Worksheet. Sum across all employees during the reference period and enter that total on this line. The calculations on lines 11, 12, and 13 will be used to determine whether the Borrower’s loan forgiveness amount must be reduced based on reductions in full-time equivalent employees, as required by the statute. Specifically, the actual loan forgiveness amount that the Borrower will receive may be reduced if the Borrower’s average weekly FTE employees during the Covered Period (or the Alternative Payroll Covered Period) was less than during the Borrower’s chosen reference period. The Borrower is exempt from such a reduction if the FTE Reduction Safe Harbor applies. See PPP Schedule A Worksheet—FTE Reduction Safe Harbor. Line 12: Add lines 2 and 5. Line 13: Divide line 12 by line 11 (or enter 1.0 if the FTE Reduction Safe Harbor has been met, according to PPP Schedule A Worksheet—FTE Reduction Safe Harbor). If more than 1.0, enter 1.0. Enter this amount on line 7 of the Loan Forgiveness Calculation Form. Paycheck Protection Program OMB Control Number 3245-0407 Loan Forgiveness Application Expiration Date: 10/31/2020 SBA Form 3508 (05/20) Page 6 PPP Schedule A PPP Schedule A Worksheet, Table 1 Totals Line 1. Enter Cash Compensation (Box 1) from PPP Schedule A Worksheet, Table 1: ___________________ Line 2. Enter Average FTE (Box 2) from PPP Schedule A Worksheet, Table 1: ___________________ Line 3. Enter Salary/Hourly Wage Reduction (Box 3) from PPP Schedule A Worksheet, Table 1: ___________________ If the average annual salary or hourly wage for each employee listed on the PPP Schedule A Worksheet, Table 1 during the Covered Period or the Alternative Payroll Covered Period was at least 75% of such employee’s average annual salary or hourly wage between January 1, 2020 and March 31, 2020, check here ☐ and enter 0 on line 3. PPP Schedule A Worksheet, Table 2 Totals Line 4. Enter Cash Compensation (Box 4) from PPP Schedule A Worksheet, Table 2: ___________________ Line 5. Enter Average FTE (Box 5) from PPP Schedule A Worksheet, Table 2: ___________________ Non-Cash Compensation Payroll Costs During the Covered Period or the Alternative Payroll Covered Period Line 6. Total amount paid by Borrower for employer contributions for employee health insurance: ___________________ Line 7. Total amount paid by Borrower for employer contributions to employee retirement plans: ___________________ Line 8. Total amount paid by Borrower for employer state and local taxes assessed on employee compensation: ___________________ Compensation to Owners Line 9. Total amount paid to owner-employees/self-employed individual/general partners: _____________________ This amount may not be included in PPP Schedule A Worksheet, Table 1 or 2. If there is more than one individual included, attach a separate table that lists the names of and payments to each. Total Payroll Costs Line 10. Payroll Costs (add lines 1, 4, 6, 7, 8, and 9): ___________________ Full-Time Equivalency (FTE) Reduction Calculation If you have not reduced the number of employees or the average paid hours of your employees between January 1, 2020 and the end of the Covered Period, check here ☐, skip lines 11 and 12 and enter 1.0 on line 13. Line 11. Average FTE during the Borrower’s chosen reference period: ___________________ Line 12. Total Average FTE (add lines 2 and 5): ___________________ Line 13. FTE Reduction Quotient (divide line 12 by line 11) or enter 1.0 if FTE Safe Harbor is met: ___________________ Paycheck Protection Program OMB Control Number 3245-0407 Loan Forgiveness Application Expiration Date: 10/31/2020 SBA Form 3508 (05/20) Page 7 Instructions for PPP Schedule A Worksheet Complete the PPP Schedule A Worksheet or obtain an equivalent report from the Borrower’s payroll system or payroll processor. Table Instructions Employee’s Name: Separately list each employee. Do not include any independent contractors, owner-employees, self-employed individuals, or partners. Employee Identifier: Enter the last four digits of each employee’s Social Security Number. Cash Compensation: Enter the sum of gross salary, gross wages, gross tips, gross commissions, paid leave (vacation, family, medical or sick leave, not including leave covered by the Families First Coronavirus Response Act), and allowances for dismissal or separation paid or incurred during the Covered Period or the Alternative Payroll Covered Period. For each individual employee, the total amount of cash compensation eligible for forgiveness may not exceed an annual salary of $100,000, as prorated for the Covered Period; therefore, do not enter more than $15,385 in Table 1 or Table 2 for any individual employee. Average FTE: This calculates the average full-time equivalency (FTE) during the Covered Period or the Alternative Payroll Covered Period. For each employee, enter the average number of hours paid per week, divide by 40, and round the total to the nearest tenth. The maximum for each employee is capped at 1.0. A simplified method that assigns a 1.0 for employees who work 40 hours or more per week and 0.5 for employees who work fewer hours may be used at the election of the Borrower. This calculation will be used to determine whether the Borrower’s loan forgiveness amount must be reduced due to a statutory requirement concerning reductions in full-time equivalent employees. Borrowers are eligible for loan forgiveness for certain expenditures during the Covered Period or the Alternative Payroll Covered Period. However, the actual loan forgiveness amount that the Borrower will receive may be less, depending on whether the Borrower’s average weekly number of FTE employees during the Covered Period or the Alternative Payroll Covered Period was less than during the Borrower’s chosen reference period (see Instructions to PPP Schedule A, Line 11). The Borrower is exempt from such a reduction if the FTE Reduction Safe Harbor applies. See the FTE Reduction Safe Harbor instructions below. Salary/Hourly Wage Reduction: This calculation will be used to determine whether the Borrower’s loan forgiveness amount must be reduced due to a statutory requirement concerning reductions in employee salary and wages. Borrowers are eligible for loan forgiveness for certain expenditures during the Covered Period or the Alternative Payroll Covered Period. However, the actual amount of loan forgiveness the Borrower will receive may be less, depending on whether the salary or hourly wages of certain employees during the Covered Period or the Alternative Payroll Covered Period was less than during the period from January 1, 2020 to March 31, 2020. If the Borrower restored salary/hourly wage levels, the Borrower may be eligible for elimination of the Salary/Hourly Wage Reduction amount. Borrowers must complete this worksheet to determine whether to reduce the amount of loan forgiveness for which they are eligible. Complete the Salary/Hour Wage Reduction column only for employees whose salaries or hourly wages were reduced by more than 25% during the Covered Period or the Alternative Payroll Covered Period as compared to the period of January 1, 2020 through March 31, 2020. For each employee listed in Table 1, complete the following (using salary for salaried employees and hourly wage for hourly employees): Step 1. Determine if pay was reduced more than 25%. a. Enter average annual salary or hourly wage during Covered Period or Alternative Payroll Covered Period: ______________. b. Enter average annual salary or hourly wage between January 1, 2020 and March 31, 2020: ______________. c. Divide the value entered in 1.a. by 1.b.: ______________. If 1.c. is 0.75 or more, enter zero in the column above box 3 for that employee; otherwise proceed to Step 2. Step 2. Determine if the Salary/Hourly Wage Reduction Safe Harbor is met. a. Enter the annual salary or hourly wage as of February 15, 2020: ______________. b. Enter the average annual salary or hourly wage between February 15, 2020 and April 26, 2020: ______________. If 2.b. is equal to or greater than 2.a., skip to Step 3. Otherwise, proceed to 2.c. c. Enter the average annual salary or hourly wage as of June 30, 2020: ______________. If 2.c. is equal to or greater than 2.a., the Salary/Hourly Wage Reduction Safe Harbor has been met – enter zero in the column above box 3 for that employee. Otherwise proceed to Step 3. Step 3. Determine the Salary/Hourly Wage Reduction. a. Multiply the amount entered in 1.b. by 0.75: ______________. b. Subtract the amount entered in 1.a. from 3.a.: ______________. Paycheck Protection Program OMB Control Number 3245-0407 Loan Forgiveness Application Expiration Date: 10/31/2020 SBA Form 3508 (05/20) Page 8 If the employee is an hourly worker, compute the total dollar amount of the reduction that exceeds 25% as follows: c. Enter the average number of hours worked per week between January 1, 2020 and March 31, 2020: ______________. d. Multiply the amount entered in 3.b. by the amount entered in 3.c. ______________. Multiply this amount by 8: ______________. Enter this value in the column above box 3 for that employee. If the employee is a salaried worker, compute the total dollar amount of the reduction that exceeds 25% as follows: e. Multiply the amount entered in 3.b. by 8: ______________. Divide this amount by 52: ______________. Enter this value in the column above box 3 for that employee. FTE Reduction Exceptions: Indicate the FTE of (1) any positions for which the Borrower made a good-faith, written offer to rehire an employee during the Covered Period or the Alternative Payroll Covered Period which was rejected by the employee; and (2) any employees who during the Covered Period or the Alternative Payroll Covered Period (a) were fired for cause, (b) voluntarily resigned, or (c) voluntarily requested and received a reduction of their hours. In all of these cases, include these FTEs on this line only if the position was not filled by a new employee. Any FTE reductions in these cases do not reduce the Borrower’s loan forgiveness. Boxes 1 through 5: Enter the sums of the amounts in each of the columns. FTE Reduction Safe Harbor A safe harbor under applicable law and regulation exempts certain borrowers from the loan forgiveness reduction based on FTE employee levels. Specifically, the Borrower is exempt from the reduction in loan forgiveness based on FTE employees described above if both of the following conditions are met: (1) the Borrower reduced its FTE employee levels in the period beginning February 15, 2020, and ending April 26, 2020; and (2) the Borrower then restored its FTE employee levels by not later than June 30, 2020 to its FTE employee levels in the Borrower’s pay period that included February 15, 2020. Paycheck Protection Program OMB Control Number 3245-0407 Loan Forgiveness Application Expiration Date: 10/31/2020 SBA Form 3508 (05/20) Page 9 PPP Schedule A Worksheet Table 1: List employees who: • Were employed by the Borrower at any point during the Covered Period or the Alternative Payroll Covered Period whose principal place of residence is in the United States; and • Received compensation from the Borrower at an annualized rate of less than or equal to $100,000 for all pay periods in 2019 or were not employed by the Borrower at any point in 2019. Employee's Name Employee Identifier Cash Compensation Average FTE FTE Reduction Exceptions: Totals: Box 1 Box 2 Box 3 Salary / Hourly Wage Reduction Table 2: List employees who: • Were employed by the Borrower at any point during the Covered Period or the Alternative Payroll Covered Period whose principal place of residence is in the United States; and • Received compensation from the Borrower at an annualized rate of more than $100,000 for any pay period in 2019. Employee's Name Employee Identifier Cash Compensation Totals: Box 4 Box 5 Average FTE Attach additional tables if additional rows are needed. FTE Reduction Safe Harbor: Step 1. Enter the borrower’s total average FTE between February 15, 2020 and April 26, 2020. Follow the same method that was used to calculate Average FTE in the PPP Schedule A Worksheet Tables. Sum across all employees and enter: ______________. Step 2. Enter the borrower’s total FTE in the Borrower’s pay period inclusive of February 15, 2020. Follow the same method that was used in step 1: ______________. Step 3. If the entry for step 2 is greater than step 1, proceed to step 4. Otherwise, the FTE Reduction Safe Harbor is not applicable and the Borrower must complete line 13 of PPP Schedule A by dividing line 12 by line 11 of that schedule. Step 4. Enter the borrower’s total FTE as of June 30, 2020: ______________. Step 5. If the entry for step 4 is greater than or equal to step 2, enter 1.0 on line 13 of PPP Schedule A; the FTE Reduction Safe Harbor has been satisfied. Otherwise, the FTE Reduction Safe Harbor does not apply and the Borrower must complete line 13 of PPP Schedule A by dividing line 12 by line 11 of that schedule. Paycheck Protection Program OMB Control Number 3245-0407 Loan Forgiveness Application Expiration Date: 10/31/2020 SBA Form 3508 (05/20) Page 10 Documents that Each Borrower Must Submit with its PPP Loan Forgiveness Application PPP Loan Forgiveness Calculation Form PPP Schedule A Payroll: Documentation verifying the eligible cash compensation and non-cash benefit payments from the Covered Period or the Alternative Payroll Covered Period consisting of each of the following: a. Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees. b. Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered Period: i. Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and ii. State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state. c. Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the Borrower included in the forgiveness amount (PPP Schedule A, lines (6) and (7)). FTE: Documentation showing (at the election of the Borrower): a. the average number of FTE employees on payroll per month employed by the Borrower between February 15, 2019 and June 30, 2019; b. the average number of FTE employees on payroll per month employed by the Borrower between January 1, 2020 and February 29, 2020; or c. in the case of a seasonal employer, the average number of FTE employees on payroll per month employed by the Borrower between February 15, 2019 and June 30, 2019; between January 1, 2020 and February 29, 2020; or any consecutive twelveweek period between May 1, 2019 and September 15, 2019. The selected time period must be the same time period selected for purposes of completing PPP Schedule A, line 11. Documents may include payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941) and state quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state. Documents submitted may cover periods longer than the specific time period. Nonpayroll: Documentation verifying existence of the obligations/services prior to February 15, 2020 and eligible payments from the Covered Period. a. Business mortgage interest payments: Copy of lender amortization schedule and receipts or cancelled checks verifying eligible payments from the Covered Period; or lender account statements from February 2020 and the months of the Covered Period through one month after the end of the Covered Period verifying interest amounts and eligible payments. b. Business rent or lease payments: Copy of current lease agreement and receipts or cancelled checks verifying eligible payments from the Covered Period; or lessor account statements from February 2020 and from the Covered Period through one month after the end of the Covered Period verifying eligible payments. c. Business utility payments: Copy of invoices from February 2020 and those paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments. Documents that Each Borrower Must Maintain but is Not Required to Submit PPP Schedule A Worksheet or its equivalent and the following: a. Documentation supporting the listing of each individual employee in PPP Schedule A Worksheet Table 1, including the “Salary/Hourly Wage Reduction” calculation, if necessary. b. Documentation supporting the listing of each individual employee in PPP Schedule A Worksheet Table 2; specifically, that each listed employee received during any single pay period in 2019 compensation at an annualized rate of more than $100,000. c. Documentation regarding any employee job offers and refusals, firings for cause, voluntary resignations, and written requests by any employee for reductions in work schedule. d. Documentation supporting the PPP Schedule A Worksheet “FTE Reduction Safe Harbor.” All records relating to the Borrower’s PPP loan, including documentation submitted with its PPP loan application, documentation supporting the Borrower’s certifications as to the necessity of the loan request and its eligibility for a PPP loan, documentation necessary to support the Borrower’s loan forgiveness application, and documentation demonstrating the Borrower’s material compliance with PPP requirements. The Borrower must retain all such documentation in its files for six years after the date the loan is forgiven or repaid in full, and permit authorized representatives of SBA, including representatives of its Office of Inspector General, to access such files upon request. Paycheck Protection Program OMB Control Number 3245-0407 Loan Forgiveness Application Expiration Date: 10/31/2020 SBA Form 3508 (05/20) Page 11 PPP Borrower Demographic Information Form (Optional) Instructions 1. Purpose. Veteran/gender/race/ethnicity data is collected for program reporting purposes only. 2. Description. This form requests information about each of the Borrower’s Principals. Add additional sheets if necessary. 3. Definition of Principal. The term “Principal” means: • For a self-employed individual, independent contractor, or a sole proprietor, the self-employed individual, independent contractor, or sole proprietor. • For a partnership, all general partners and all limited partners owning 20% or more of the equity of the Borrower, or any partner that is involved in the management of the Borrower’s business. • For a corporation, all owners of 20% or more of the Borrower, and each officer and director. • For a limited liability company, all members owning 20% or more of the Borrower, and each officer and director. • Any individual hired by the Borrower to manage the day-to-day operations of the Borrower (“key employee”). • Any trustor (if the Borrower is owned by a trust). • For a nonprofit organization, the officers and directors of the Borrower. 4. Principal Name. Insert the full name of the Principal. 5. Position. Identify the Principal’s position; for example, self-employed individual; independent contractor; sole proprietor; general partner; owner; officer; director; member; or key employee. Principal Name Position Disclosure is voluntary and will have no bearing on the loan forgiveness decision Paperwork Reduction Act – You are not required to respond to this collection of information unless it displays a currently valid OMB Control Number. The estimated time for completing this application, including gathering data needed, is 180 minutes. Comments about this time or the information requested should be sent to Small Business Administration, Director, Records Management Division, 409 3rd St., SW, Washington DC 20416, and/or SBA Desk Officer, Office of Management and Budget, New Executive Office Building, Washington DC 20503. Veteran 1=Non-Veteran; 2=Veteran; 3=Service-Disabled Veteran; 4=Spouse of Veteran; X=Not Disclosed Gender M=Male; F=Female; X=Not Disclosed Race (more than 1 may be selected) 1=American Indian or Alaska Native; 2=Asian; 3=Black or African-American; 4=Native Hawaiian or Pacific Islander; 5=White; X=Not Disclosed Ethnicity H=Hispanic or Latino; N=Not Hispanic or Latino; X=Not Disclosed
Federal Register / Vol. 85, No. 76 / Monday, April 20, 2020 / Rules and Regulations 21747 Where: m˙ SD = dry air mass flow rate of infiltration air for single-duct portable air conditioners, in pounds per minute (lb/ m). m˙ 95 and m˙ 83 = dry air mass flow rate of infiltration air for dual-duct portable air conditioners, as calculated based on testing according to the test conditions in Table 1 of this appendix, in lb/m. Vco_SD, Vco_95, and Vco_83 = average volumetric flow rate of the condenser outlet air during cooling mode testing for single-duct portable air conditioners; and at the 95 °F and 83 °F dry-bulb outdoor conditions for dual-duct portable air conditioners, respectively, in cubic feet per minute (cfm). Vci_95 and Vci_83 = average volumetric flow rate of the condenser inlet air during cooling mode testing at the 95 °F and 83 °F dry-bulb outdoor conditions for dual-duct portable air conditioners, respectively, in cfm. rco_SD, rco_95, and rco_83 = average density of the condenser outlet air during cooling mode testing for single-duct portable air conditioners, and at the 95 °F and 83 °F dry-bulb outdoor conditions for dualduct portable air conditioners, respectively, in pounds mass per cubic foot (lbm/ft3). rci_95 and rci_83 = average density of the condenser inlet air during cooling mode testing at the 95 °F and 83 °F dry-bulb outdoor conditions for dual-duct portable air conditioners, respectively, in lbm/ft3. wco_SD, wco_95, and wco_83 = average humidity ratio of condenser outlet air during cooling mode testing for single-duct portable air conditioners, and at the 95 °F and 83 °F dry-bulb outdoor conditions for dual-duct portable air conditioners, respectively, in pounds mass of water vapor per pounds mass of dry air (lbw/ lbda). wci_95 and wci_83 = average humidity ratio of condenser inlet air during cooling mode testing at the 95 °F and 83 °F dry-bulb outdoor conditions for dual-duct portable air conditioners, respectively, in lbw/lbda. For single-duct and dual-duct portable air conditioners, calculate the sensible component of infiltration air heat contribution according to: Qs_95 = m˙ × 60 × [(cp_da × (Tia_95¥Tindoor)) + (cp_wv × (wia_95 × Tia_95¥windoor × Tindoor))] Qs_83 = m˙ × 60 × [(cp_da × (Tia_83¥Tindoor)) + (cp_wv × (wia_83 × Tia_83¥windoor × Tindoor))] Where: Qs_95 and Qs_83 = sensible heat added to the room by infiltration air, calculated at the 95 °F and 83 °F dry-bulb outdoor conditions in Table 1 of this appendix, in Btu/h. m˙ = dry air mass flow rate of infiltration air, m˙ SD or m˙ 95 when calculating Qs_95 and m˙ SD or m˙ 83 when calculating Qs_83, in lb/ m. cp_da = specific heat of dry air, 0.24 Btu/lbm- °F. cp_wv = specific heat of water vapor, 0.444 Btu/lbm-°F. Tindoor = indoor chamber dry-bulb temperature, 80 °F. Tia_95 and Tia_83 = infiltration air dry-bulb temperatures for the two test conditions in Table 1 of this appendix, 95 °F and 83 °F, respectively. wia_95 and wia_83 = humidity ratios of the 95 °F and 83 °F dry-bulb infiltration air, 0.0141 and 0.01086 lbw/lbda, respectively. windoor = humidity ratio of the indoor chamber air, 0.0112 lbw/lbda. 60 = conversion factor from minutes to hours. Calculate the latent heat contribution of the infiltration air according to: Ql_95 = m˙ × 60 × Hfg × (wia_95¥windoor) Ql_83 = m˙ × 60 × Hfg × (wia_83¥windoor) Where: Ql_95 and Ql_83 = latent heat added to the room by infiltration air, calculated at the 95 °F and 83 °F dry-bulb outdoor conditions in Table 1 of this appendix, in Btu/h. m˙ = mass flow rate of infiltration air, m˙ SD or m˙ 95 when calculating Ql_95 and m˙ SD or m˙ 83 when calculating Ql_83, in lb/m. Hfg = latent heat of vaporization for water vapor, 1061 Btu/lbm. wia_95 and wia_83 = humidity ratios of the 95 °F and 83 °F dry-bulb infiltration air, 0.0141 and 0.01086 lbw/lbda, respectively. windoor = humidity ratio of the indoor chamber air, 0.0112 lbw/lbda. 60 = conversion factor from minutes to hours. The total heat contribution of the infiltration air is the sum of the sensible and latent heat: Qinfiltration_95 = Qs_95 + Ql_95 Qinfiltration_83 = Qs_83 + Ql_83 Where: Qinfiltration_95 and Qinfiltration_83 = total infiltration air heat in cooling mode, calculated at the 95 °F and 83 °F dry-bulb outdoor conditions in Table 1 of this appendix, in Btu/h. Qs_95 and Qs_83 = sensible heat added to the room by infiltration air, calculated at the 95 °F and 83 °F dry-bulb outdoor conditions in Table 1 of this appendix, in Btu/h. Ql_95 and Ql_83 = latent heat added to the room by infiltration air, calculated at the 95 °F and 83 °F dry-bulb outdoor conditions in Table 1 of this appendix, in Btu/h. * * * * * [FR Doc. 2020–07733 Filed 4–17–20; 8:45 am] BILLING CODE 6450–01–P SMALL BUSINESS ADMINISTRATION 13 CFR Part 120 [Docket Number SBA–2020–0020] RIN 3245–AH36 Business Loan Program Temporary Changes; Paycheck Protection Program—Additional Eligibility Criteria and Requirements for Certain Pledges of Loans AGENCY: U. S. Small Business Administration. ACTION: Interim final rule. SUMMARY: On April 2, 2020, the U.S. Small Business Administration (SBA) posted an interim final rule (the First PPP Interim Final 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 (PPP). The PPP is intended to provide economic relief to small businesses nationwide adversely impacted by the Coronavirus Disease 2019 (COVID–19). This interim final rule supplements the First PPP Interim Final Rule with guidance for individuals with self-employment income who file a Form 1040, Schedule C. This rule also addresses eligibility issues for certain business concerns and requirements for certain pledges of PPP loans. This interim final rule supplements SBA’s implementation of sections 1102 and 1106 of the Act and requests public comment. DATES: Effective Date: This rule is effective April 20, 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. Comment Date: Comments must be received on or before May 20, 2020. ADDRESSES: You may submit comments, identified by number SBA–2020–0020 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. VerDate Sep<11>2014 16:11 Apr 17, 2020 Jkt 250001 PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 E:\FR\FM\20APR1.SGM 20APR1 jbell on DSKJLSW7X2PROD with RULES 21748 Federal Register / Vol. 85, No. 76 / Monday, April 20, 2020 / Rules and Regulations Highlight the information that you consider to be CBI and explain why you believe SBA should hold this information as confidential. SBA will review the information and make the final determination whether it will publish the information. FOR FURTHER INFORMATION CONTACT: A Call Center Representative at 833–572– 0502, or the local SBA Field Office; the list of offices can be found at https:// www.sba.gov/tools/local-assistance/ districtoffices. SUPPLEMENTARY INFORMATION: I. Background Information On March 13, 2020, President Trump declared the ongoing Coronavirus Disease 2019 (COVID–19) pandemic of sufficient severity and magnitude to warrant an emergency declaration for all States, territories, and the District of Columbia. With the COVID–19 emergency, many small businesses nationwide are experiencing economic hardship as a direct result of the Federal, State, tribal, and local public health measures that are being taken to minimize the public’s exposure to the virus. These measures, some of which are government-mandated, 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-athome orders, are being implemented, resulting in a dramatic decrease in economic activity as the public avoids malls, retail stores, and other businesses.
<11>
<11> 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.
<11>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.
<11>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.’’
<11> Section 1106 of the Act provides for forgiveness of up to the full principal amount of qualifying loans guaranteed under the Paycheck Protection Program. II.
<11>Comments and Immediate Effective Date The intent of the Act is that SBA provide relief to America’s small businesses expeditiously.
<11> 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.
<11> Specifically, small businesses need to be informed on whether they are eligible to apply for a loan, 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.
<11>The immediate effective date of this interim final rule will benefit small businesses so that they can immediately determine their eligibility and apply for the loan with a full understanding of loan terms and conditions.
<11>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 I of the Act without regard to notice requirements.
<11>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, including section III below.
<11>These comments must be submitted on or before May 20, 2020. SBA will consider these comments and the need for making any revisions as a result of these comments. III.
<11>
<11> Additional Paycheck Protection Program Eligibility Criteria and Requirements for Certain Pledges of Loans 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).
<11> Loans under the PPP will be 100 percent guaranteed by SBA, and the full principal amount of the loans and any accrued interest may qualify for loan forgiveness.
<11>Additional information about the PPP is available in the First PPP Interim Final Rule (85 FR 20811) and a second interim final rule (85 FR 20817) posted April 3, 2020. 1.
<11>Individuals With Self-Employment Income Who File a Form 1040, Schedule C
<11> a. I have income from selfemployment and file a Form 1040, Schedule C.
<11>Am I eligible for a PPP Loan?
<11>You are eligible for a PPP loan if:
<11>(i) You were in operation on February 15, 2020;
<11>(ii) you are an individual with self-employment income (such as an independent contractor or a sole proprietor);
<11>(iii) your principal place of residence is in the United States;
<11>and (iv) you filed or will file a Form 1040 Schedule C for 2019.
<11>However, if you are a partner in a partnership, you may not submit a separate PPP loan application for yourself as a selfemployed individual. Instead, the selfemployment income of general active partners may be reported as a payroll cost, up to $100,000 annualized, on a PPP loan application filed by or on behalf of the partnership. Partnerships are eligible for PPP loans under the Act, and the Administrator has determined, in consultation with the Secretary of the Treasury (Secretary), that limiting a partnership and its partners (and an LLC filing taxes as a partnership) to one PPP loan is necessary to help ensure that as many eligible borrowers as possible obtain PPP loans before the statutory deadline of June 30, 2020. This limitation will allow lenders to more quickly process applications and lower the burdens of applying for partnerships/partners.
<11>The Administrator has further determined that permitting partners to apply as selfemployed individuals would create unnecessary confusion regarding which entity, the partner or the partnership, applies for partner and LLC member income, and would generate loan proceeds use coordination and allocation issues. Rent, mortgage interest, utilities, and other debt service are generally incurred at the partnership level, not partner level, so it is most natural to provide the funds for these expenses to the partnership, not individual partners.
<11>
<11> In addition, you should be aware that participation in the PPP may affect your eligibility for state-administered unemployment compensation or unemployment assistance programs, including the programs authorized by Title II, Subtitle A of the CARES Act, or CARES Act Employee Retention Credits. SBA will issue additional guidance for those individuals with self-employment income who: (i) Were not in operation in 2019 but who were in operation on February 15, 2020, and (ii) will file a Form 1040 Schedule C for 2020. VerDate Sep<11>2014 16:11 Apr 17, 2020 Jkt 250001 PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 E:\FR\FM\20APR1.SGM 20APR1 jbell on DSKJLSW7X2PROD with RULES Federal Register / Vol. 85, No. 76 /
<11><11>Monday, April 20, 2020 / Rules and Regulations 21749
<11><11>b. How do I calculate the maximum amount I can borrow and what documentation is required?
<11><11>How you calculate your maximum loan amount depends upon whether or not you employ other individuals. If you have no employees, the following methodology should be used to calculate your maximum loan amount:
<11><11> i. Step 1: Find your 2019 IRS Form 1040 Schedule C line 31 net profit amount (if you have not yet filed a 2019 return, fill it out and compute the value). If this amount is over $100,000, reduce it to $100,000. If this amount is zero or less, you are not eligible for a PPP loan.
<11><11>ii. Step 2: Calculate the average monthly net profit amount (divide the amount from Step 1 by 12).
<11><11>iii. Step 3: Multiply the average monthly net profit amount from Step 2 by 2.5.
<11><11>iv. Step 4: Add the outstanding amount of any Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020 that you seek to refinance, less the amount of any advance under an EIDL COVID–19 loan (because it does not have to be repaid). Regardless of whether you have filed a 2019 tax return with the IRS, you must provide the 2019 Form 1040 Schedule C with your PPP loan application to substantiate the applied-for PPP loan amount and a 2019 IRS Form 1099– MISC detailing nonemployee compensation received (box 7), invoice, bank statement, or book of record that establishes you are self-employed.
<11><11>You must provide a 2020 invoice, bank statement, or book of record to establish you were in operation on or around February 15, 2020.
<11><11> If you have employees, the following methodology should be used to calculate your maximum loan amount: i. Step 1: Compute 2019 payroll by adding the following:
<11><11> a. Your 2019 Form 1040 Schedule C line 31 net profit amount (if you have not yet filed a 2019 return, fill it out and compute the value), up to $100,000 annualized, if this amount is over $100,000, reduce it to $100,000, if this amount is less than zero, set this amount at zero;
<11><11>b. 2019 gross wages and tips paid to your employees whose principal place of residence is in the United States computed using 2019 IRS Form 941 Taxable Medicare wages & tips (line 5c—column 1) from each quarter plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages; tips; subtract any amounts paid to any individual employee in excess of $100,000 annualized and any amounts paid to any employee whose principal place of residence is outside the United States;
<11><11> and c. 2019 employer health insurance contributions (health insurance component of Form 1040 Schedule C line 14), retirement contributions (Form 1040 Schedule C line 19), and state and local taxes assessed on employee compensation (primarily under state laws commonly referred to as the State Unemployment Tax Act or SUTA from state quarterly wage reporting forms).
<11><11> ii. Step 2: Calculate the average monthly amount (divide the amount from Step 1 by 12).
<11><11>iii. Step 3: Multiply the average monthly amount from Step 2 by 2.5.
<11><11>iv. Step 4: Add the outstanding amount of any EIDL made between January 31, 2020 and April 3, 2020 that you seek to refinance, less the amount of any advance under an EIDL COVID– 19 loan (because it does not have to be repaid). You must supply your 2019 Form 1040 Schedule C, Form 941 (or other tax forms or equivalent payroll processor records containing similar information) and state quarterly wage unemployment insurance tax reporting forms from each quarter in 2019 or equivalent payroll processor records, along with evidence of any retirement and health insurance contributions, if applicable.
<11><11>A payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish you were in operation on February 15, 2020.
<11><11>d. How can PPP loans be used by individuals with income from selfemployment who file a 2019 Form 1040, Schedule C? The proceeds of a PPP loan are to be used for the following.
<11><11> i. Owner compensation replacement, calculated based on 2019 net profit as described in Paragraph 1.b. above.
<11><11> ii. Employee payroll costs (as defined in the First PPP Interim Final Rule) for employees whose principal place of residence is in the United States, if you have employees.
<11><11>iii. Mortgage interest payments (but not mortgage prepayments or principal payments) on any business mortgage obligation on real or personal property (e.g., the interest on your mortgage for the warehouse you purchased to store business equipment or the interest on an auto loan for a vehicle you use to perform your business), business rent payments (e.g., the warehouse where you store business equipment or the vehicle you use to perform your business), and business utility payments (e.g., the cost of electricity in the warehouse you rent or gas you use driving your business vehicle).
<11><11>You must have claimed or be entitled to claim a deduction for such expenses on your 2019 Form 1040 Schedule C for them to be a permissible use during the eight-week period following the first disbursement of the loan (the ‘‘covered period’’).
<11><11>For example, if you did not claim or are not entitled to claim utilities expenses on your 2019 Form 1040 Schedule C, you cannot use the proceeds for utilities during the covered period.
<11><11> iv. Interest payments on any other debt obligations that were incurred before February 15, 2020 (such amounts are not eligible for PPP loan forgiveness).
<11><11>v. Refinancing an SBA EIDL loan made between January 31, 2020 and April 3, 2020 (maturity will be reset to PPP’s maturity of two years). If you received an SBA EIDL loan from January 31, 2020 through April 3, 2020, you can apply for a PPP loan. If your EIDL loan was not used for payroll costs, it does not affect your eligibility for a PPP loan. If your EIDL loan was used for payroll costs, your PPP loan must be used to refinance your EIDL loan. Proceeds from any advance up to $10,000 on the EIDL loan will be deducted from the loan forgiveness amount on the PPP loan. The Administrator, in consultation with the Secretary, determined that it is appropriate to limit self-employed individuals’ (who file a Form 1040 Schedule C) use of loan proceeds to those types of allowable uses for which the borrower made expenditures in 2019.
<11><11> The Administrator has determined that this limitation on selfemployed individuals who file a Form 1040 Schedule C is consistent with the borrower certification required by the Act; specifically, that the PPP loan is necessary ‘‘to support the ongoing operations’’ of the borrower.
<11><11> The Administrator and the Secretary thus believe that this limitation is consistent with the structure of the Act to maintain existing operations and payroll and not for business expansion.
<11><11>This limitation on the use of PPP loan proceeds will also help to ensure that the finite appropriations available for these loans are directed toward maintaining existing operations and payroll, as each loan that is made depletes the appropriation. Finally, although the Act makes businesses in operation on February 15, 2020 eligible for PPP loans, the Administrator, in consultation with the Secretary, has determined that selfemployed individuals will need to rely on their 2019 Form 1040 Schedule C, which provides verifiable documentation on expenses between January 1, 2019 and December 31, 2019.
<11><11>VerDate Sep<11>2014 16:11 Apr 17, 2020 Jkt 250001 PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 E:\FR\FM\20APR1.SGM 20APR1 jbell on DSKJLSW7X2PROD with RULES 21750 Federal Register / Vol. 85, No. 76 /
<11><11><11>Monday, April 20, 2020 / Rules and Regulations For individuals with income from selfemployment from 2019 for which they have filed or will file a 2019 Form 1040 Schedule C, expenses incurred between January 1, 2020 and February 14, 2020 may not be considered because of the lack of verifiable documentation on expenses in this period.
<11><11><11>SBA will issue additional guidance for those individuals with self-employment income who:
<11><11><11>(i) Were not in operation in 2019 but who were in operation on February 15, 2020, and
<11><11><11>(ii) will file a Form 1040 Schedule C for 2020. e. Are there any other restrictions on how I can use PPP loan proceeds? Yes.
<11><11><11> At least 75 percent of the PPP loan proceeds shall be used for payroll costs.
<11><11><11> For purposes of determining the percentage of use of proceeds for payroll costs (but not for forgiveness purposes), the amount of any refinanced EIDL will be included.
<11><11><11> The rationale for this 75 percent floor is contained in the First PPP Interim Final Rule.
<11><11><11> f. What amounts shall be eligible for forgiveness?
<11><11><11>The amount of loan forgiveness can be up to the full principal amount of the loan plus accrued interest.
<11><11><11>The actual amount of loan forgiveness will depend, in part, on the total amount spent over the covered period on:
<11><11><11>i. Payroll costs including salary, wages, and tips, up to $100,000 of annualized pay per employee (for eight weeks, a maximum of $15,385 per individual), as well as covered benefits for employees (but not owners), including health care expenses, retirement contributions, and state taxes imposed on employee payroll paid by the employer (such as unemployment insurance premiums);
<11><11><11> ii. owner compensation replacement, calculated based on 2019 net profit as described in Paragraph 1.b. above, with forgiveness of such amounts limited to eight weeks’ worth (8/52) of 2019 net profit, but excluding any qualified sick leave equivalent amount for which a credit is claimed under section 7002 of the Families First Coronavirus Response Act (FFCRA) (Pub. L. 116–127) or qualified family leave equivalent amount for which a credit is claimed under section 7004 of FFCRA;
<11><11><11>iii. payments of interest on mortgage obligations on real or personal property incurred before February 15, 2020, to the extent they are deductible on Form 1040 Schedule C (business mortgage payments);
<11><11><11>iv. rent payments on lease agreements in force before February 15, 2020, to the extent they are deductible on Form 1040 Schedule C (business rent payments); and v. utility payments under service agreements dated before February 15, 2020 to the extent they are deductible on Form 1040 Schedule C (business utility payments).
<11><11><11>The Administrator, in consultation with the Secretary, has determined that it is appropriate to limit the forgiveness of owner compensation replacement for individuals with self-employment income who file a Schedule C to eight weeks’ worth (8/52) of 2019 net profit.
<11><11><11>This is most consistent with the structure of the Act and its overarching focus on keeping workers paid, and will prevent windfalls that Congress did not intend. Congress determined that the maximum loan amount is based on 2.5 months of the borrower’s payroll during the one-year period preceding the loan.
<11><11><11> Congress also determined that the maximum amount of loan forgiveness is based on the borrower’s eligible payments—i.e., the sum of payroll costs and certain overhead expenses—over the eight-week period following the date of loan disbursement.
<11><11><11>For individuals with self-employment income who file a Schedule C, the Administrator, in consultation with the Secretary, has determined that it is appropriate to limit loan forgiveness to a proportionate eight-week share of 2019 net profit, as reflected in the individual’s 2019 Form 1040 Schedule C.
<11><11><11>This is because many self-employed individuals have few of the overhead expenses that qualify for forgiveness under the Act.
<11><11><11>For example, many such individuals operate out of either their homes, vehicles, or sheds and thus do not incur qualifying mortgage interest, rent, or utility payments.
<11><11><11>As a result, most of their receipts will constitute net income. Allowing such a self-employed individual to treat the full amount of a PPP loan as net income would result in a windfall. The entire amount of the PPP loan (a maximum of 2.5 times monthly payroll costs) would be forgiven even though Congress designed this program to limit forgiveness to certain eligible expenses incurred in an eight-week covered period. Limiting forgiveness to eight weeks of net profit from the owner’s 2019 Form 1040 Schedule C is consistent with the structure of the Act, which provides for loan forgiveness based on eight weeks of expenditures.
<11><11><11>This limitation will also help to ensure that the finite appropriations are directed toward payroll protection, consistent with the Act’s central objective.
<11><11><11>Finally, 75 percent of the amount forgiven must be attributable to payroll costs for the reasons specified in the First PPP Interim Final Rule.
<11><11><11>g. What documentation will I be required to submit to my lender with my request for loan forgiveness? In addition to the borrower certification required by Section 1106(e)(3) of the Act, to substantiate your request for loan forgiveness, if you have employees, you should submit Form 941 and state quarterly wage unemployment insurance tax reporting forms or equivalent payroll processor records that best correspond to the covered period (with evidence of any retirement and health insurance contributions).
<11><11><11>Whether or not you have employees, you must submit evidence of business rent, business mortgage interest payments on real or personal property, or business utility payments during the covered period if you used loan proceeds for those purposes.
<11><11><11> The 2019 Form 1040 Schedule C that was provided at the time of the PPP loan application must be used to determine the amount of net profit allocated to the owner for the eight-week covered period. The Administrator, in consultation with the Secretary, determined that for purposes of loan forgiveness it is appropriate to require self-employed individuals to rely on the 2019 Form 1040 Schedule C to determine the amount of net profit allocated to the owner during the covered period for the reasons described in Paragraph 1.d. above.
<11><11><11>2. Clarification Regarding Eligible Businesses
<11><11><11>a. Are eligible businesses owned by directors or shareholders of a PPP Lender permitted to apply for a PPP Loan through the Lender with which they are associated?
<11><11><11>The Administrator recognizes that, unlike other SBA loan programs, the financial terms for PPP Loans are uniform for all borrowers, and the standard underwriting process does not apply because no creditworthiness assessment is required for PPP Loans.
<11><11><11> Consequently, there is no meaningful risk of underwriting bias or belowmarket rates and terms. The Administrator also recognizes that many directors and equity holders of PPP Lenders are owners of unrelated businesses.
<11><11><11>For those reasons, the Administrator, in consultation with the Secretary, has determined that SBA regulations (including 13 CFR 120.110 and 120.140) shall not apply to prohibit an otherwise eligible business owned (in whole or part) by an outside director or holder of a less than 30 percent equity interest in a PPP Lender from obtaining a PPP loan from the PPP Lender on whose board the director serves or in which the equity owner VerDate Sep<11>2014 16:11 Apr 17, 2020 Jkt 250001 PO 00000 Frm 00012 Fmt 4700 Sfmt 4700 E:\FR\FM\20APR1.SGM 20APR1 jbell on DSKJLSW7X2PROD with RULES Federal Register / Vol. 85, No. 76 / Monday, April 20, 2020 / Rules and Regulations 21751
<11><11><11><11>
<11><11><11><11>holds an interest, provided that the eligible business owned by the director or equity holder follows the same process as any similarly situated customer or account holder of the Lender. Favoritism by the Lender in processing time or prioritization of the director’s or equity holder’s PPP application is prohibited.
<11><11><11><11>The Administrator cautions, however, that Lenders should comply with all other applicable state and federal regulations concerning loans to associates of the Lender. Lenders should also consult their own internal policies concerning lending to individuals or entities associated with the Lender. The foregoing paragraph does not apply to a director or owner who is also an officer or key employee of the PPP Lender.
<11><11><11><11>Officers and key employees of a PPP Lender may obtain a PPP Loan from a different lender, but not from the PPP Lender with which they are associated. SBA also reminds Lenders that the ‘‘Authorized Lender Official’’ for each PPP Loan is subject to the limitations described in the Lender Application Form, which states in relevant part: ‘‘Neither the undersigned Authorized Lender Official, nor such individual’s spouse or children, has a financial interest in the Applicant [Borrower].’’ b. Are businesses that receive revenue from legal gaming eligible for a PPP Loan? A business that is otherwise eligible for a PPP Loan is not rendered ineligible due to its receipt of legal gaming revenues if the existing standard in 13 CFR 120.110(g) is met or the following two conditions are satisfied:
(a) The business’s legal gaming revenue (net of payouts but not other expenses) did not exceed $1 million in 2019; and
b) legal gaming revenue (net of payouts but not other expenses)
comprised less than 50 percent of the business’s total revenue in 2019. Businesses that received illegal gaming revenue are categorically ineligible.
The Administrator, in consultation with the Secretary,
believes this test appropriately balances the longstanding policy reasons for limiting lending to businesses primarily and substantially engaged in gaming activity with the policy aim of making the PPP Loan available to a broad segment of U.S. businesses and their employees.
3. Requirements for Certain Pledges of PPP Loans
Do the requirements for loan pledges under 13 CFR 120.434
apply to PPP loans pledged for borrowings from a Federal Reserve Bank
(FRB) or advances by a Federal Home Loan Bank (FHLB)
? No.
Pursuant to SBA regulations at
13 CFR 120.435
(d) and (e),
a pledge of
7(a) loans to a FRB or FHLB does not require SBA’s prior written consent or notice to SBA. SBA, in consultation with Treasury, has determined that for purposes of loans made under the PPP, the additional requirements set forth in 120.434 shall also not apply.
This would mean, for example, that SBA would not have to approve loan documents or require a multi-party agreement among SBA, the lender, and others.
4. Additional Information SBA may provide further guidance, if needed, through SBA notices that will be posted on SBA’s website at www.sba.gov.
Questions on the Paycheck Protection Program may be directed to the Lender Relations Specialist in the local SBA Field Office.
The local SBA Field Office may be found at https://www.sba.gov/tools/ local-assistance/districtoffices.
Compliance With Executive Orders 12866, 12988, 13132, 13563, and 13771,
the Paperwork Reduction Act
(44 U.S.C. Ch. 35),
and the Regulatory Flexibility Act
(5 U.S.C. 601–612)
Executive Orders 12866, 13563, and 13771
This interim final rule is economically significant for the purposes of Executive Orders 12866 and 13563, and is considered a major rule under the
Congressional Review Act.
SBA, however, is proceeding under the emergency provision at
Executive Order
12866 Section 6
(a)(3)
(D)
based on the need to move expeditiously to mitigate the current economic conditions arising from the COVID–19
emergency.
This rule’s designation under
Executive Order 13771 will be informed by public comment.
Executive Order 12988
SBA has drafted this rule,
to the extent practicable, in accordance with the standards set forth in section 3(a) and 3(b)(2) of Executive Order 12988,
to minimize litigation, eliminate ambiguity, and reduce burden.
The rule has no preemptive or retroactive effect.
Executive Order 13132
SBA has determined that this rule will not have substantial direct effects on the States, on the relationship between the
National Government and the States,
or on the distribution of power and responsibilities among the various layers of government. Therefore, SBA has determined that this rule has no federalism implications warranting preparation of a federalism assessment.
Paperwork Reduction Act
, 44 U.S.C.
Chapter 35 SBA
has determined that this rule will not impose new or modify existing
recordkeeping or
reporting requirements under the Paperwork Reduction Act.
Regulatory Flexibility Act (RFA)
The Regulatory Flexibility Act (RFA)
generally requires that when an agency issues a proposed rule,
or a final rule pursuant to section 553(b) of the APA or another law,
the agency must prepare a regulatory flexibility analysis that meets the requirements of
the RFA and publish such analysis in the Federal Register. 5 U.S.C. 603, 604. Specifically, the RFA normally requires agencies
to describe the impact of a rulemaking
on small entities by providing a regulatory impact analysis.
Such analysis must address the consideration of regulatory options that would lessen the economic effect of the rule on small entities. The RFA defines a ‘‘small entity’’ as
(1) a proprietary firm meeting the size standards of the Small Business Administration (SBA);
(2) a nonprofit organization that is not dominant in its field; or
(3) a small government jurisdiction with a population of less than 50,000. 5
U.S.C. 601(3)–(6).
Except for such small government jurisdictions, neither State nor local governments are ‘‘small entities.’’ Similarly, for purposes of the RFA,
individual persons are not small entities. The requirement to conduct a regulatory impact analysis does not apply if the head of the agency ‘‘certifies that the rule will not, if promulgated, have a significant economic impact on a substantial number of small entities.’’
5 U.S.C. 605(b).
he 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 VerDate Sep<11>2014 16:11 Apr 17, 2020 Jkt 250001 PO 00000 Frm 00013 Fmt 4700 Sfmt 4700 E:\FR\FM\20APR1.SGM 20APR1 jbell on DSKJLSW7X2PROD with RULES 21752 Federal Register / Vol. 85, No. 76 / Monday, April 20, 2020 / Rules and Regulations to the public interest. SBA Office of Advocacy guide: How to Comply with the Regulatory Flexibility Act.
Ch.1. p.9. Accordingly, SBA is not required to conduct a regulatory flexibility analysis. List of Subjects in 13 CFR Part 120 Community development, Environmental protection, Equal employment opportunity, Exports, Loan programs—business, Reporting and recordkeeping requirements, Small businesses. For the reasons stated above, the Small Business Administration amends 13 CFR part 120 as set forth bel ow.
PART 120 —
BUSINESS LOANS
■ 1. The authority citation for part 120 continues to read as follows
: Authority: 15 U.S.C. 634(b)(6), (b)(7), (b)(14), (h), and note,
636(a), (h) and (m), and note, 650, 657t, and note, 657u, and note,
687(f), 696(3) and (7), and note, and 697(a) and (e), and note
. ■ 2. Revise § 120.435 to read as follows: § 120.435 Which loan pledges do not require notice to or consent by SBA? (a) Notwithstanding the provisions of § 120.434(e),
7
(a) loans may be pledged for the following purposes without notice to or consent by SBA
:
(1) Treasury tax and loan accounts;
2) The deposit of public funds;
3) Uninvested trust funds;
4) Borrowings from a Federal Reserve Bank
; or
5) Advances by a Federal Home Loan Bank. (b) For purposes of the Paycheck Protection Program (PPP), the other provisions of § 120.434 shall also not apply to PPP loans pledged under paragraph (a)(4) or (5) of this section. Jovita Carranza, Administrator. [FR Doc. 2020–08257 Filed 4–17–20; 8:45 am]
BILLING CODE P DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39 [Docket No. FAA–2019–1074;
Product Identifier 2019–NM–191–AD; Amendment 39–19900;
AD 2020–07–21] RIN 2120–AA64 Airworthiness Directives;
Yabora˜ Indu´ stria Aerona´utica S.A. (Type Certificate Previously Held by Embraer S.A.) Airplanes AGENCY: Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Final rule. SUMMARY: The FAA is adopting a new airworthiness directive (AD) for certain Yabora˜ Indu´ stria Aerona´utica S.A. Model ERJ–170 airplanes and Model ERJ 190–100 STD, –100 LR, –100 ECJ, –100 IGW, –200 STD, –200 LR, and –200 IGW airplanes. This AD was prompted by a determination that certain main landing gear (MLG) aft pintle pins repaired using a sulphamate nickel plating have a life limit that is less than the certified life limit. This AD requires a one-time records review or a general visual inspection (GVI) of the MLG aft pintle pins to determine if certain repairs were done, and replacement of certain MLG aft pintle pins with serviceable MLG aft pintle pins, as specified in an Ageˆncia Nacional de Aviac¸a˜o Civil (ANAC)
Brazilian AD, which is incorporated by reference.
The FAA is issuing this AD to address the unsafe condition on these products.
DATES: This AD is effective May 26, 2020.
The Director of the Federal Register approved the incorporation
by reference of a certain publication listed in this AD as of May 26, 2020.
ADDRESSES: For the material incorporated by reference (IBR)
in this AD contact National Civil Aviation Agency,
Aeronautical Products Certification Branch (GGCP),
Rua Laurent Martins, n° 209,
Jardim Esplanada, CEP 12242–431—Sa˜o Jose´ dos Campos—SP, Brazil; telephone 55 (12) 3203–6600; email pac@anac.gov.br; internet www.anac.gov.br/en/. You may find this IBR material on the ANAC website at https://sistemas.anac.gov.br/ certificacao/DA/DAE.asp. You may view this IBR material at the FAA, Transport Standards Branch, 2200 South 216th St.
, Des Moines, WA.
For information on the availability of this material at the FAA, call 206–231–3195. It is also available in the AD docket on the internet at
https:// www.regulations.gov
by searching for and locating
Docket No. FAA–2019– 1074.
Examining the AD Docket You may examine the AD docket on the internet at https:// www.regulations.gov by searching for and locating Docket No. FAA–2019– 1074;
or in person at Docket Operations between 9 a.m. and 5 p.m.
, Monday through Friday
, except Federal holidays.
The AD docket contains this final rule, the regulatory evaluation, any comments received, and other information.
The address for Docket Operations is
U.S. Department of Transportation
, Docket Operations
, M– 30
, West Building Ground Floor
, Room W12–140, 1200
New Jersey Avenue SE
,
Washington
, DC 20590.
FOR FURTHER INFORMATION CONTACT :
Krista Greer
, Aerospace Engineer
,
International Section,
Transport Standards Branch,
FAA,
2200 South 216th St.
,
Des Moines
, WA
98198
;
telephone and fax
206–231–3221; .
email krista.greer@faa.gov
.
.
SUPPLEMENTARY INFORMATION:
Discussion The ANAC, which is the aviation authority for Brazil, has issued Brazilian AD 2019–11–07, effective November 18, 2019
(‘‘Brazilian AD 2019–11–07’’)
(also referred to as the Mandatory Continuing Airworthiness Information, or ‘‘the MCAI’’),
to correct an unsafe condition for certain Yabora˜ Indu´ stria Aerona´utica S.A. Model ERJ 170–100 LR, –100 STD, –100 SE,
and –100 SU airplanes;
Model ERJ 170–200 LR, –200 SU, –200 STD, and –200 LL airplanes; and Model ERJ 190–100 STD, –100 LR, –100 ECJ, –100 IGW, –100 SR, –200 STD, –200 LR, and –200 IGW airplanes.
Model ERJ 190–100 SR airplanes are not certified by the FAA and are not included on the U.S.
type certificate data sheet; this AD, therefore, does not include those airplanes in the applicability.
The FAA issued a notice of proposed rulemaking (NPRM) to amend 14 CFR part 39 by adding an AD that would apply to certain Yabora˜ Indu´ stria Aerona´utica S.A. Model ERJ 170–100 LR, –100 STD, –100 SE, and –100 SU airplanes; Model ERJ 170–200 LR, –200 SU, –200 STD, and –200 LL airplanes;
and Model ERJ 190–100 STD, –100 LR, –100 ECJ, –100 IGW, –200 STD, –200 LR, and –200 IGW airplanes. The NPRM published in the Federal Register on January 17, 2020 (85 FR 2909). The NPRM was prompted by a determination that certain MLG aft pintle pins repaired using a sulphamate VerDate Sep<11>2014 16:11 Apr 17, 2020 Jkt 250001 PO 00000 Frm 00014 Fmt 4700 Sfmt 4700 E:\FR\FM\20APR1.SGM 20APR1 jbell on DSKJLSW7X2PROD with RULES
Instead, the selfemployment income of general active partners may be reported as a payroll cost, up to $100,000 annualized, on a PPP loan application filed by or on behalf of the partnership. Partnerships are eligible for PPP loans under the Act, and the Administrator has determined, in consultation with the Secretary of the Treasury (Secretary), that limiting a partnership and its partners (and an LLC filing taxes as a partnership) to one PPP loan is necessary to help ensure that as many eligible borrowers as possible obtain PPP loans before the statutory deadline of June 30, 2020.
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