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4378 Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations
<br /> document that the individual entity is a negatively impacted by COVID-19. for unemployed individuals. These
<br /> member of the class. Additional Several commenters also argued that initiatives also may support small
<br /> information about this framework is funds should be available to support business start-ups,microbusinesses, and
<br /> included in the section General and grow microbusinesses, or individuals seeking to start small or
<br /> Provisions: Structure and Standards. businesses with five or fewer microbusinesses.
<br /> Further,Treasury is maintaining the employees,which are more likely to be Disproportionately impacted small
<br /> interim final rule definition of"small owned by women and people of color. businesses.Additionally,Treasury
<br /> business,"which used the Small Treasury Response:In the final rule, agrees with commenters that
<br /> Business Administration's (SBA) Treasury is maintaining and clarifying disproportionately impacted small
<br /> definition of fewer than 500 employees, the enumerated eligible uses of funds businesses may benefit from additional
<br /> or per the standard for that industry, as for assistance to small businesses that assistance to address the sources of that
<br /> defined by SBA. This definition are impacted or disproportionately disparate impact.
<br /> includes businesses with very few impacted by the pandemic. As such,the final rule provides a
<br /> employees,self-employed individuals, Impacted small businesses. broader set of enumerated eligible uses
<br /> and Tribally owned businesses.220 Specifically,Treasury is maintaining for disproportionately impacted small
<br /> Finally,Treasury notes that recipients enumerated eligible uses from the businesses and/or small businesses in
<br /> may award SLFRF funds to many interim final rule for assistance to disproportionately impacted business
<br /> different types of organizations, impacted small businesses. These districts. Recipients may use SLFRF
<br /> including small businesses,to function include but are not limited to: funds to assist these businesses with
<br /> as a subrecipient in carrying out eligible • Loans or grants to mitigate financial certain capital investments,such as
<br /> uses of funds on behalf of a recipient hardship such as declines in revenues rehabilitation of commercial properties,
<br /> government.In this case,a small or impacts of periods of business storefront improvements,and fagade
<br /> business need not have experienced a closure,for example by supporting improvements. Recipients may also
<br /> negative economic impact in order to payroll and benefits costs, costs to retain provide disproportionately impacted
<br /> serve as a subrecipient. See section employees,mortgage,rent, or utilities microbusinesses additional support to
<br /> Distinguishing Subrecipients versus costs,and other operating costs; operate the business,including
<br /> Beneficiaries for more detailed • Loans,grants,or in-kind assistance financial, childcare,and transportation
<br /> discussion of interactions with to implement COVID-19 prevention or supports.
<br /> subrecipients,in contrast to mitigation tactics (see section Public Recipients could also provide
<br /> beneficiaries of assistance. Health for details on these eligible uses); technical assistance,business
<br /> and incubators, and grants for start-ups or
<br /> Enumerated Eligible Uses for Assistance . Technical assistance, counseling, or expansion costs for disproportionately
<br /> to Small Businesses other services to assist with business impacted small businesses. Note that
<br /> Public Comment:Treasury received planning needs. some of these types of assistance are
<br /> comments requesting clarification of the Treasury acknowledges a range of similar to those eligible to respond to
<br /> types of assistance available to small potential circumstances in which small businesses that experienced a
<br /> businesses.For example, one assisting small businesses could be negative economic impact("impacted"
<br /> commenter suggested that outdoor responsive to the negative economic small businesses).However,because the
<br /> dining be an eligible use for SLFRF impacts of COVID-19,including for final rule presumes that some small
<br /> funds as assistance to small businesses. small businesses startups and businesses were disproportionately
<br /> Other commenters asked for microbusinesses and individuals impacted,these enumerated eligible
<br /> clarification about how SLFRF funds seeking to start small or uses can be provided to those
<br /> could be used to support new microbusinesses.For example: businesses without any specific
<br /> businesses and start-ups.
<br /> • As noted above,a recipient could assessment of whether they individually
<br /> Several commenters requested assist small business startups or experienced negative economic impacts
<br /> clarification of whether and how microbusinesses with additional costs or disproportionate impacts due to the
<br /> recipients may provide services to associated with COVID-19 mitigation pandemic.
<br /> business districts or downtown areas, tactics; see section Public Health for Cross-References:Recipients
<br /> particularly those that exist in whole or details on these eligible uses. providing assistance to small businesses
<br /> in part within a QCT, and requested • A recipient could identify and for capital expenditures (i.e.,
<br /> reduced documentation of the specific respond to a negative economic impact expenditures on property, facilities, or
<br /> negative economic impact for the of COVID-19 on new small business equipment) should also review the
<br /> businesses operating within those areas. startups or microbusinesses; for section Capital Expenditures in General
<br /> These commenters argued in favor of example,if small business startups or Provisions: Other,which describes
<br /> allowing redevelopment or other microbusinesses in a locality faced eligibility standards that apply to capital
<br /> support,including capital investments, greater difficulty accessing credit than expenditures.Recipients should also
<br /> in business districts that were prior to the pandemic or faced increased note that services to address vacant or
<br /> costs to starting the business due to the abandoned commercial or industrial
<br /> 220In regard to counting employees,businesses pandemic or if particular small properties are addressed in section
<br /> owned and controlled by a Tribal government are businesses or microbusinesses had lost Vacant or Abandoned Properties in
<br /> not considered affiliates of the Tribal government expected startup capital due to the Assistance to Households.
<br /> and are not considered affiliates of other businesses pandemic.
<br /> owned by the Tribal government because of their • The interim final rule also Loans to Small Businesses
<br /> common ownership by the Tribal government or
<br /> common management,as described in 13 CFR discussed, and the final rule maintains, Public Comment:Treasury received
<br /> 121.103(b)(2).This definition is consistent with the eligible uses that provide support for many comments requesting clarification
<br /> Small Business Administration(SBA)HUBZone individuals who have experienced a on using SLFRF funds to establish funds
<br /> definition of a"small business concern"relating to negative economic impact from the that provide loans to small businesses.
<br /> Tribal governments as well as how Tribal
<br /> enterprises are defined for the State Small Business COVID-19 public health emergency, For example, commenters sought
<br /> Credit Initiative(SSBCI). including uses that provide job training clarification of how eligible use
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