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Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Rules and Regulations licensed under section 301 of the Small Business Investment Act of 1958 15 U.S.C.
681; 4a any business concern including any station which broadcasts pursuant to a license granted by the Federal Communications Commission under title III
of the Communications Act of 1934 47
U.S.C. 301 et seq. without regard for whether such a station is a concern as defined in 121.105 of title 13, Code of Federal Regulations, or any successor thereto that employs not more than 500 employees, or the size standard established by the Administrator for the North American Industry Classification System code applicable to the business concern, per physical location of such business concern and is majority owned or controlled by a business concern that is assigned a North American Industry Classification System code beginning with 511110 or 5151; or b any nonprofit organization that is assigned a North American Industry Classification System code beginning with 5151; and 5
any business concern or organization that is assigned a NAICS code of 519130, certifies in good faith as an internet-only news publisher or internet-only periodical publisher, and is engaged in the collection and distribution of local or regional and national news and information, if the business concern or organization employs not more than 500
employees or the size standard in number of employees established by SBA in 13 CFR
121.201 for NAICS code 519130 per physical location, and is majority owned or controlled by a business concern or organization that is assigned NAICS 519130. This interim final rule has no effect on these statutory waivers, which remain in full force and effect. As a result, the affiliation rules contained in 121.301 also do not apply to these types of entities. In addition, paragraph 7a36D of the Small Business Act 15 U.S.C.
636a36D, as amended by section 342 of the Economic Aid Act and section 5001 of the American Rescue Plan Act states that, with respect to a business concern made eligible under paragraph 7a36DiiiII or IV or 7a36DivIV or V certain news organizations and internet publishing organizations, the Administrator shall not consider whether any affiliated entity, which for purposes of this subclause shall include any entity that owns or controls such business concern or organization, is an issuer as defined in subsection III.B.2.a.viii.

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Part IV.c of the interim final rule on second draw PPP loans sets forth who is eligible for a Second Draw PPP Loan.
The American Rescue Plan Act amended the eligibility criteria for a Second Draw PPP Loan similarly to the amendments discussed above for First Draw PPP Loans. Therefore, part IV.c1 of the interim final rule on second draw PPP loans 86 FR 3712, 3717 is revised to read as follows:
c Who is eligible for a Second Draw PPP
Loan?
Subject to subsection e of this section, below, the following applicants are eligible for Second Draw PPP Loans:
1 An applicant is eligible for a Second Draw PPP Loan if it is a business concern,
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independent contractor, eligible selfemployed individual, sole proprietor, nonprofit organization eligible for a First Draw PPP Loan, veterans organization, Tribal business concern, housing cooperative, small agricultural cooperative, eligible 501c6
organization or destination marketing organization, an eligible nonprofit news organization, additional covered nonprofit entity, or eligible internet publishing company 33 that:
i Previously received a First Draw PPP
loan in accordance with the eligibility criteria in the Consolidated First Draw PPP
IFR as amended;
ii has used, or will use, the full amount of its First Draw PPP Loan including the amount of any increase on such First Draw PPP Loan on authorized uses under subsection B.11. of the Consolidated First Draw PPP IFR on or before the expected date on which the Second Draw PPP Loan will be disbursed;
iii employs not more than 300 employees, unless it satisfies the alternative criteria for businesses with a North American Industry Classification System NAICS code beginning with 72, eligible news organizations, 501c3 nonprofit organizations, additional covered nonprofit entities, 501c6 organizations, eligible destination marketing organizations, and eligible internet publishing organizations with more than one physical location described in subsection c3, c4, c5, or c6 of this section; and iv A experienced a reduction in revenue in calendar year 2020, measured as follows:

Part IV.c of the interim final rule on second draw PPP loans 86 FR 3712, 3718 also is revised by adding two new subsections at the end to read as follows:
5 An entity is eligible for a Second Draw PPP Loan if it is a 501c3 nonprofit organization, an additional covered nonprofit entity, an eligible 501c6 organization, or an eligible destination marketing organization and it employs not more than 300 employees per physical location of the entity or organization.
6 A business concern or other organization that was not eligible to receive a covered loan before March 11, 2021, is eligible to receive a Second Draw PPP Loan for the continued provision of news, information, content, or emergency information if it is assigned a NAICS code of 519130, certifies in good faith as an internetonly news publisher or internet-only periodical publisher, and is engaged in the collection and distribution of local or regional and national news and information, and:
i The business concern or organization employs not more than 300 employees per physical location of the business concern or organization; and ii the business concern or organization makes a good faith certification that proceeds 33 All terms in this subsection have the same definitions as in sections 7a36 and 37 of the Small Business Act and the Consolidated First Draw PPP IFR, as applicable.

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of the loan will be used to support expenses at the component of the business concern or organization that supports local or regional news.

Part IV.d of the interim final rule on second draw PPP loans states that eligibility for Second Draw PPP Loans is governed by the same affiliation rules and waivers as First Draw PPP Loans, except as described in subsection d2.
The American Rescue Plan Act revised the affiliation waivers for First Draw and Second Draw PPP Loans. Although the American Rescue Plan Act did not amend section 7a37Eii of the Small Business Act 15 U.S.C.
636a37Eii to substitute not more than 300 employees for not more than 500 employees in subclause V of section 7a36Div of the Small Business Act 15 U.S.C.
636a36Div, as section 7a37Eii does for eligible news organizations, SBA is doing so here to harmonize the affiliation waiver for internet publishing organizations with the 300 employees per location size standard for Second Draw PPP Loans to internet publishing organizations.
Therefore, Part IV.d2 of the interim final rule on second draw PPP loans 86
FR 3712, 3718 is revised by adding a new subsection iii to read as follows:
d How do SBAs affiliation rules affect an applicants eligibility for a Second Draw PPP
Loan?

iii Any business concern or other organization that was not eligible to receive a covered loan before March 11, 2021, is assigned a NAICS code of 519130, certifies in good faith as an internet-only news publisher or internet-only periodical publisher, and is engaged in the collection and distribution of local or regional and national news and information, if the business concern or organization:
A Employs not more than 300 employees, per physical location of the business concern or organization; and B is majority owned or controlled by a busines concern or organization that is assigned a NAICS code of 519130.

In order to implement the American Rescue Plan Act provision that allows businesses to receive both a Shuttered Venue Operator SVO Grant and a PPP
loan, part IV.e5 of the interim final rule on second draw PPP loans 86 FR
3712, 3719 is revised to read as follows:
e Who is not eligible for a Second Draw PPP Loan?
An applicant is not eligible for a Second Draw PPP Loan, even if it meets the eligibility requirements of subsection c of this section, if the applicant is:

5 any person or entity that has been approved for a grant under the Shuttered Venue Operator SVO Grant Program under
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