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Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations 4383
<br /> Treasury Response:In response to conflicts of interest.240 Treasury Loans in Program Administration
<br /> commenters'requests for clarification encourages recipients to design aid Provisions.
<br /> on eligible aid,the final rule requires programs such that funds are first used 4. General Provisions: Other
<br /> that aid to impacted industries, for operational expenses that are
<br /> including to Tribal development generally recognized as ordinary and As noted above,the final rule
<br /> districts,be designed to address the necessary for the recipient's operation, consolidates into a General Provisions
<br /> harm experienced by the impacted such as payroll,before being used on section several types of uses of funds;in
<br /> industry. other types of costs.As noted in the the interim final rule,the eligibility of
<br /> section General Standards: Structure these uses of funds was discussed
<br /> First,recipients should identify a and Standards,uses of funds that do not within specific categories of eligible
<br /> negative economic impact,i.e., an public health and or f uses negative
<br /> economic harm,that is experienced b respond to the negative economic p g
<br /> p y impacts of the pandemic, such as economic impacts.Treasury anticipates
<br /> businesses in the impacted industry. that this re-organization will enhance
<br /> Second,recipients should select a excessive compensation to employees,
<br /> p is ineligible. recipient clarity in assessing eligible
<br /> response that is designed to address the The final rule maintains the interim uses of funds. These General Provisions
<br /> identified economic harm resulting from final rule's requirement that aid may apply across all uses of funds under
<br /> or exacerbated by the public health only be considered responsive to the public health and negative economic
<br /> emergency. Responses must also be neative economic imacts of the impacts.
<br /> g p
<br /> related and reasonably proportional to Specifically,this section considers
<br /> the extent and type of harm pandemic if it supports businesses,
<br /> yp attractions, and Tribal development eligible uses for:
<br /> experienced;uses that bear no relation districts operating prior to the pandemic • Public Sector Capacity and
<br /> or are grossly disproportionate to the and affected by required closures and Workforce,which includes several
<br /> type or extent of harm experienced other efforts to contain the pandemic. separate and non-mutually exclusive
<br /> would not be eligible uses.Recipients Further,to facilitate transparency and categories articulated in the interim
<br /> should consider the further discussion accountability,the final rule maintains final rule: public health and safety staff;
<br /> of this standard provided In the sections the interim final rule's requirement that rehiring state,local,and Tribal
<br /> Standards:Designating a Public Health recipients publicly report assistance government staff; expenses for
<br /> Impact and Standards:Designating a provided to private-sector businesses administering COVID-19 response
<br /> Negative Economic Impact. programs; expenses to improve the
<br /> under this eligible use,including
<br /> These responses may take the form of tourism,travel,hospitality, and other efficacy of public health or economic
<br /> relief programs; and administrative
<br /> direct spending by recipients to promote impacted industries, and its connection
<br /> an industry or support for businesses to negative economic impacts of the expenses caused or exacerbated by the
<br /> pandemic. Treasury recognizes that
<br /> within an"impacted"industry that public health emergency.Recipients
<br /> these are closely related and frequently
<br /> experienced a negative economic impact also should maintain records to support
<br /> (e.g.,through a grant program). their assessment of how businesses overlapping categories.The final rule
<br /> Examples of eligible responses include: treats them as a single purpose,
<br /> p g� p receiving assistance were affected by the supporting public sector capacity, and
<br /> • Aid to mitigate financial hardship negative economic impacts of the public pp g
<br /> provides coordinated guidance on the
<br /> due to declines in revenue or profits by health emergency and how the aid
<br /> provided responds to these impacts. standards and presumptions that apply
<br /> supporting payroll costs and p res p p . to them.
<br /> compensation of returning employees Recipients providing aid to impacted . Capital Expenditures,which was
<br /> for lost pay and benefits during the industries for capital expenditures (i.e., addressed only under Public Health in
<br /> COVID-19 pandemic,as well as support expenditures on property, facilities, or the interim final rule.The final rule
<br /> of operations and maintenance of equipment),including Tribal moves this expense to General
<br /> existingequipment and facilities, such governments providing aid to Tribal
<br /> e qu p development districts,should also Provisions and provides more clarity on
<br /> as rent,leases, and utilities; p the eligibility of capital expenditures
<br /> • Aid for technical assistance, review the section Capital Expenditures across all aspects of the public health
<br /> counseling,and other services to assist in General Provisions: Other,which and negative economic impacts eligible
<br /> with business planning needs; and describes eligibility standards that are use category.
<br /> applicable to these expenditures, . Distinguishing Subrecipients versus
<br /> • Aid to implement COVID-19 depending on the type of aid. Recipients Beneficiaries,which describes the
<br /> mitigation and infection prevention providing assistance in the form of loans
<br /> measures, such as vaccination or testing should review the section Treatment of differences between these two
<br /> categories. Recipient governments
<br /> programs,is broadly eligible for many
<br /> responding to the public health and
<br /> types of entities,including travel, 240 As part of accepting the Award Terms and
<br /> tourism,hospitality,and other impacted Conditions for SURF,each recipient agreed to negative economic impacts of the
<br /> industries. Recipients providing aid to
<br /> maintain a conflict-of-interest policy consistent pandemic may provide assistance to
<br /> with Z CFR 200.318(c)that is applicable to all beneficiaries or execute an eligible use
<br /> impacted industries for COVID-19 activities funded with the SURF award.Pursuant of funds through a subrecipient; some
<br /> public health measures should review to this policy,decisions concerning SURF must be types of entities (e.g.,nonprofits) could
<br /> the section Assistance to Businesses to free of undisclosed personal or organizational
<br /> Implement COVID-19 Strategies in conflicts of interest,both in fact and in appearance. fit into either category depending on the
<br /> Public Health,which describes types of Recipients may avoid conflicts of interest in specific purpose of the use of funds.
<br /> yp awarding aid to impacted industries by,inter alia, . Uses Outside the Scope of this
<br /> eligible uses of funds in this category. making aid available to businesses in the industry Category,which addresses uses of funds
<br /> To address the identified harms, on generally applicable terms or utilizing a
<br /> competitive grant process.A recipient may not use that are ineligible or generally ineligible
<br /> responses (e.g., aid through a grant control over SURF for their own private gain. under this eligible use category in the
<br /> program) should be generally broadly Furthermore,no employee,officer,or agent may interim final rule. These uses of funds
<br /> available to all businesses within the participate in the selection,award,or remain ineligible under the final rule,
<br /> impacted industry to avoid the risk of administration of a contract supported by a federal
<br /> p y award if he or she has a real or apparent conflict but Treasury has re-categorized where
<br /> self-dealing,preferential treatment,and of interest. they are addressed,as described below.
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