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Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations 4377
<br /> "small business" is defined as a rule, according to the standard definition of small business. Comments
<br /> business concern or other organization described in the section Standards: also suggested that self-employed
<br /> that: Identifying a Negative Economic Impact. individuals and Tribal enterprises be
<br /> (1)Has no more than 500 employees A recipient may also identify small classified as small businesses,
<br /> or,if applicable,the size standard in businesses that have been respectively. Commenters argued that
<br /> number of employees established by the disproportionately impacted by the these types of small businesses are more
<br /> Administrator of the Small Business public health emergency and design and common among low-income and
<br /> Administration for the industry in implement a program that responds to minority businessowners and serve as
<br /> which the business concern or the source of that disproportionate important institutions in underserved
<br /> organization operates; and impact. communities.
<br /> (2)Is a small business concern as Consistent with other eligible use Finally,some commenters suggested
<br /> defined in section 3 of the Small categories to respond to the public that Treasury permit broader
<br /> Business Act(15 U.S.C. 632). health and economic impacts of the enumerated eligible uses to assist small
<br /> Specifically,the interim final rule pandemic,recipients may identify and businesses in disproportionately
<br /> provided that recipients may provide serve small businesses that experienced impacted communities and generally
<br /> assistance to small businesses to adopt a negative economic impact or strengthen economic growth in these
<br /> safer operating procedures,weather disproportionate impact due to the communities. These commenters
<br /> periods of closure,or mitigate financial pandemic,as described in the section recommended that Treasury presume
<br /> hardship resulting from the COVID-19 Standards for Identifying Other Eligible small businesses operating in QCTs are
<br /> public health emergency,including: Populations. For example,to identify disproportionately impacted and
<br /> • Loans or grants to mitigate financial impacted small businesses,a recipient eligible for broader enumerated uses.
<br /> hardship such as declines in revenues may consider whether the small Treasury Response:As discussed in
<br /> or impacts of periods of business businesses faced challenges in covering the section Designating a Negative
<br /> closure; payroll,mortgage or rent, or other Economic Impact,in the final rule,
<br /> • Loans,grants, or in-kind assistance operating costs as a result of the public recipients must identify an economic
<br /> to implement COVID-19 prevention or health emergency and measures taken to harm caused or exacerbated by the
<br /> mitigation tactics; and contain the spread of the virus.In order pandemic on a small business or class
<br /> • Technical assistance,counseling, or to ease administrative burden,the final of small businesses to provide services
<br /> other services to assist with business rule presumes that small businesses that respond.
<br /> planning needs. operating in QCTs, small businesses As discussed above,programs or
<br /> The interim final rule further operated by Tribal governments or on services in this category must respond
<br /> provided that recipients may consider Tribal Lands, and small businesses to a harm experienced by a small
<br /> additional criteria to target assistance to operating in the U.S.territories were business or class of small businesses as
<br /> businesses in need,including small disproportionately impacted by the a result of the public health emergency.
<br /> businesses. Such criteria may include pandemic. To identify impacted small businesses
<br /> businesses facing financial insecurity, Reorganizations and Cross- and necessary response measures,
<br /> substantial declines in gross receipts References:As detailed above,Treasury recipients may consider impacts such as
<br /> (e.g., comparable to measures used to has re-categorized some uses of funds in lost revenue or increased costs,
<br /> assess eligibility for the Paycheck the final rule to provide greater clarity. challenges covering payroll,rent or
<br /> Protection Program), or other economic For discussion of assistance to small mortgage,or other operating costs,the
<br /> harm due to the pandemic, as well as businesses and impacted industries to capacity of a small business to weather
<br /> businesses with less capacity to weather implement COVID-19 mitigation and financial hardships,and general
<br /> financial hardship, such as the smallest prevention strategies, see section financial insecurity resulting from the
<br /> businesses,those with less access to COVID-19 Mitigation and Prevention in public health emergency.
<br /> credit,or those serving underserved Public Health. Recognizing the difficulties faced by
<br /> communities. The interim final rule also small businesses in certain
<br /> indicated that recipients should Small Businesses Eligible for Assistance communities,the final rule presumes
<br /> consider local economic conditions and Public Comment:Treasury received that small businesses operating in QCTs,
<br /> business data when establishing such many comments about the general small businesses operated by Tribal
<br /> criteria. Finally,the interim final rule benefits or drawbacks of use of SLFRF governments or on Tribal Lands,and
<br /> posed a question on whether there are funds to provide assistance to small small businesses operating in the U.S.
<br /> other services or costs that Treasury businesses. Some commenters suggested territories were disproportionately
<br /> should consider as eligible uses to that SLFRF funds should be available to impacted by the pandemic. This
<br /> respond to the disproportionate impacts assist all small businesses,rather than presumption parallels the final rule's
<br /> of COVID-19 on low-income only businesses that experienced direct approach to assistance to households,
<br /> populations and communities. negative economic impacts due to the reflecting the more severe pandemic
<br /> Final Rule Structure:Consistent with public health emergency. Other impacts in underserved communities
<br /> the interim final rule approach,the final commenters argued that aid to small and creating a parallel structure across
<br /> rule provides a non-exhaustive list of businesses should be narrowed in the different categories of eligible uses to
<br /> enumerated eligible uses for assistance final rule, asserting that SLFRF funds make the structure simpler for
<br /> to small businesses that are impacted or should instead focus on assistance to recipients to understand and navigate.
<br /> disproportionately impacted by the households or building public sector Treasury notes that recipients may
<br /> pandemic.Further,within Assistance to capacity. also designate a class of small
<br /> Small Business, a recipient may also Treasury also received comments businesses that experienced a negative
<br /> identify a negative economic impact requesting clarification of the types of economic impact or disproportionate
<br /> experienced by small businesses and small businesses eligible for assistance. negative economic impact(e.g.,
<br /> design and implement a response to that For example, some commenters microbusinesses, small businesses in
<br /> negative economic impact,beyond the requested clarification about whether certain economic sectors), design an
<br /> uses specifically enumerated in the final microbusinesses were included in the intervention to fit the impact, and
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