[Federal Register Volume 59, Number 142 (Tuesday, July 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18067]


[[Page Unknown]]

[Federal Register: July 26, 1994]


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SMALL BUSINESS ADMINISTRATION
 

Delegation of Authority

AGENCY: Small Business Administration.

ACTION: Notice Delegating Loan Approval Authority to Specific Agency 
Field Personnel.

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SUMMARY: This notice delegates authority to a specific Small Business 
Administration (SBA) field person to approve SBA guaranteed and 
economic development loans. This authority is based upon the education, 
training, and experience of such person and is meant to expedite Agency 
action in processing loan applications.

EFFECTIVE DATE: This notice is effective July 8, 1994.

FOR FURTHER INFORMATION CONTACT:
John R. Cox, Associate Administrator for Financial Assistance, U.S. 
Small Business Administration, 409 Third Street, SW, Washington, DC 
20416, Tel. (202) 205-6490.

SUPPLEMENTARY INFORMATION: On December 19, 1991, SBA published in the 
Federal Register, a final rule amending Sec. 101.3-2 of part 101, Title 
13, Code of Federal Regulations, which set forth a clarified standard 
delegation of authority to conduct program activities in SBA field 
offices (56 FR 65821). Previously Sec. 101.3-2 had set forth the 
standard delegation of authority to SBA field personnel as well as all 
deviations from the standard based upon education, experience, and/or 
training. The December 19, 1991, publication eliminated all deviations 
in favor of a standard delegation of authority. In addition, the rule 
provided authority by which SBA might, as it deemed appropriate, 
increase, decrease, or set the level of authority for any individual 
SBA field official in a regional, district, or branch office, based 
upon education, training, or experience, by publication of a notice in 
the Federal Register.
    The Agency believes that, when appropriate, delegating increased 
levels of authority to field personnel yields increased benefits for 
program participants and SBA. SBA is authorized to guarantee up to 90% 
of a loan depending upon total loan amount. Further, SBA has certain 
authority to make direct loans and economic development (503/504) 
loans. As such, it is essential that the Agency have qualified loan 
officers to process expeditiously and accurately the applications 
submitted. Agency officials in the field who are delegated greater 
levels of authority in light of their additional education, training, 
or experience allow for loan applications of greater amounts being 
processed where both the lender and the borrower are located. In this 
fashion, the loan applicant and the lender are both served with quicker 
and more accurate processing, while the Agency is served by quality 
lending and, in the case of guaranteed loans, better relations with its 
participating lenders.
    This notice delegates authority to a specific SBA official to 
approve guaranteed and direct and 503/504 loan applications, as well as 
to undertake other loan related activities based upon experience. The 
SBA Officer-in-Charge of the Camden Post-of-Duty has successfully 
completed training courses offered by the Agency. Such training in 
conjunction with his extensive experience qualifies him to better 
analyze and process loan applications and justifies delegating loan 
approval authority.
    No standard delegated authority to approve SBA guaranteed and 
direct loans and 503/504 loans exists for a post-of-duty office. This 
notice establishes the authority to approve each type of SBA loan at 
$250,000 and the authority to decline each type of SBA loan at $750,000 
for the Camden Post-of-Duty Office and only for that post-of-duty 
office.
    This delegation of authority is specific to the incumbent and 
continues only so long as he remains in such position.

    Dated: July 8, 1994.
John R. Cox,
Associate Administrator for Financial Assistance.
[FR Doc. 94-18067 Filed 7-25-94; 8:45 am]
BILLING CODE 8025-01-M