OCC Bulletin 2020-36| April 9, 2020

Capital Treatment for Paycheck Protection Program: Interim Final Rule


Chief Executive Officers of All National Banks and Federal Savings Associations; Department and Division Heads; All Examining Personnel; and Other Interested Parties


The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation (collectively, the agencies) today approved an interim final rule that implements the capital treatment for loans originated pursuant to the U.S. Small Business Administration’s Paycheck Protection Program. The interim final rule neutralizes the regulatory capital effect of participation in the Paycheck Protection Program Liquidity Facility (PPPL Facility) announced on Tuesday, April 7, 2020, by the Federal Reserve. The PPPL Facility provides liquidity to small business lenders and the broader credit markets. The Small Business Administration’s Paycheck Protection Program was established by section 1102 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.1

Note for Community Banks

This interim final rule applies to all community banks2 that originate loans under Section 1102 (Paycheck Protection Program) of the CARES Act.


The interim final rule

  • allows a bank to assign a zero percent risk weight to any loan originated under section 1102 of the CARES Act.
  • allows a bank to exclude any loan originated pursuant to the Small Business Administration’s Paycheck Protection Program and pledged to the PPPL Facility from its standardized total risk-weighted assets, average total consolidated assets, advanced approaches total risk-weighted assets, and total leverage exposure, as applicable.

Further Information

Please contact Margot Schwadron, Director for Capital Policy, or Andrew Tschirhart, Risk Expert for Capital Policy, at (202) 649-6370; or Carl Kaminski, Special Counsel, or Chris Rafferty, Counsel, Chief Counsel’s Office, at (202) 649-5490.


Jonathan V. Gould
Senior Deputy Comptroller and Chief Counsel

Related Links

1 Refer to Pub. L. 116-136.

2 The term "banks" refers to national banks and federal savings associations.