CARES ACT Section 1112 Gross Loan Payment

OMB Control No: 3245-0414	ICR Reference No: 202011-3245-003
Status: Active	Previous ICR Reference No:
Agency/Subagency: SBA	Agency Tracking No:
Title: CARES ACT Section 1112 Gross Loan Payment
Type of Information Collection: Existing collection in use without an OMB Control Number	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 12/02/2020
OIRA Conclusion Action: Approved without change	Conclusion Date: 12/03/2020
Retrieve Notice of Action (NOA)	Date Received in OIRA: 11/30/2020
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	06/30/2021	6 Months From Approved
Responses	48,000	0	0
Time Burden (Hours)	12,333	0	0
Cost Burden (Dollars)	355,200	0	0

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Abstract: Section 1112 Of Coronavirus Aid Relief, and Economic Security Act (CARES Ac7t), requires SBA to provide debt relief to certain borrowers by paying on their behalf the principal, interest, and any associated fees that they owe on a "covered loan" that is in regular servicing status. Lenders are requested to provide certain information to SBA that would enable the Agency to remit the payments on behalf of eligible borrowers for the covered period for compliance.

Emergency Justfication: November 25, 2020 Susan Minson OMB Desk Officer Office of lnformation and Regulatory Affairs Office of Management and Budget 725 17th Street, NW Washington, DC 20503 Dear Ms. Minson: Pursuant to the Office of Management and Budget (0MB) procedures established at 5 CFR 1320, the Small Business Administration (SBA) requests that the collection of information associated with payments to 7(a) Lenders under Section 1112 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act be processed in accordance with section 1320.13, Emergency Processing, by December 2, 2020. To assist in addressing the drastic decrease in economic activity created by the COVID-19 pandemic, Section 1112 requires SBA to pay the principal, interest and associated fees that are owed for a 6-month period on certain loans issued under SBA’s 7(a), 504, and Microloan Programs. In order for SBA to make these loan payments in SBA’s 7(a) Loan Program in an accurate and timely manner, SBA created a form that 7(a) Lenders are required to submit to SBA on a monthly basis to provide the loan information necessary for the Agency to make the Section 1112 payments on behalf of borrowers. It has come to light that this Lender reporting requirement has not been submitted to OMB for review and approval. The need for this information will continue until at least the spring of 2021 and longer if the benefit is extended by pending legislation. Given the ongoing need to make the payments, SBA is asking for emergency review of the “Section 1112 Gross Loan Payment Template” to enable SBA to continue to collect the information without further violation. SBA has determined that this information must be collected prior to the expiration of time periods established under Part 1320, and that this information is essential to SBA's ability to provide the debt relief required by that section to certain SBA borrowers. Delaying the payments while the Agency pursues standard processing procedures would cause harm to the 7(a) Lenders who are depending on the payments, as well as to the borrowers who could either default on payments or be forced to use limited resources to make such payments. SBA also requests a waiver from the requirement to publish the public comment notice in the Federal Register before seeking review. Sincerely, Jihoon Kim Director SBA Office of Financial Program Operations

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Authorizing Statute(s): None

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title Form No. Form Name CARES Act Section 112 Subsidy Relief Program

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	48,000	0	0	48,000	0	0
Annual Time Burden (Hours)	12,333	0	0	12,333	0	0
Annual Cost Burden (Dollars)	355,200	0	0	355,200	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Miscellaneous Actions

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: New Collection

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Annual Cost to Federal Government:

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? Yes

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Yes

Agency Contact: Mary Frias 202 401-8234 [email protected]

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
		(a) It is necessary for the proper performance of agency functions;
		(b) It avoids unnecessary duplication;
		(c) It reduces burden on small entities;
		(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;
		(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;
		(f) It indicates the retention periods for recordkeeping requirements;
		(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:
			(i) Why the information is being collected;
			(ii) Use of information;
			(iii) Burden estimate;
			(iv) Nature of response (voluntary, required for a benefit, or mandatory);
			(v) Nature and extent of confidentiality; and
			(vi) Need to display currently valid OMB control number;
		(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.
		(i) It uses effective and efficient statistical survey methodology (if applicable); and
		(j) It makes appropriate use of information technology.
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Certification Date: 11/30/2020

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