[Federal Register Volume 60, Number 87 (Friday, May 5, 1995)]
[Proposed Rules]
[Pages 22311-22312]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11156]
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SMALL BUSINESS ADMINISTRATION
13 CFR Part 122
Business Loans--Microloans
AGENCY: Small Business Administration (SBA).
ACTION: Notice of proposed rulemaking.
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SUMMARY: Section 7(m) of the Small Business Act (15 U.S.C. 636(m))
(Act) authorizes the SBA to operate a microloan demonstration program.
Under this program, the SBA lends funds to qualified intermediaries
which re-lend amounts of $25,000 or less to eligible small business
concerns. Under this proposed rule, an intermediary would be allowed to
operate across State lines with the written approval of the SBA
Associate Administrator for Financial Assistance if that person makes a
determination that it would be in the best interest of the small
business community to allow such intermediary to operate in more than
one State.
DATES: Comments may be submitted on or before June 5, 1995.
ADDRESSES: Comments may be mailed to John R. Cox, Associate
Administrator for Financial Assistance, Small Business Administration,
409 Third Street SW., Washington, DC 20416.
FOR FURTHER INFORMATION CONTACT:
John R. Cox, 202/205-6490.
SUPPLEMENTARY INFORMATION: Section 7(m) of the Act authorizes the SBA
to undertake a microloan demonstration program in which the SBA lends
funds to authorized intermediaries which re-lend amounts up through
$25,000 to eligible small business concerns.
At the present time, section 122.61-11(a) of SBA's regulations (13
CFR 122.61-11(a)) provides that ``* * * no intermediary may undertake
Program activities in more than one State.'' Since section 7(m) of the
Act does not prohibit a microloan intermediary from conducting its
operations in more than one State, SBA believes that the present
regulatory provision is too broad. Circumstances may occur when it
would be in the best interest of a small business community to
authorize a microloan intermediary to operate across State lines, and
this proposed regulation would allow the SBA Associate Administrator
for Financial Assistance to make a determination in that
regard. [[Page 22312]]
Compliance With Executive Orders 12612, 12778 and 12866, the Regulatory
Flexibility Act, 5 U.S.C. 601 et seq., and the Paperwork Reduction Act,
44 U.S.C. Ch. 35
For purposes of the Regulatory Flexibility Act, 5 U.S.C. 601 et
seq., SBA certifies that this proposed rule, if promulgated in final
form, will not have a significant economic impact on a substantial
number of small entities.
The SBA certifies that this proposed rule, if promulgated in final
form, will not constitute a significant regulatory action for the
purposes of Executive Order 12866, since the proposed change is not
likely to result in an annual effect on the economy of $100 million or
more.
The SBA certifies that the proposed rule, if promulgated in final
form, would not impose additional reporting or recordkeeping
requirements which would be subject to the Paperwork Reduction Act, 44
U.S.C. Chapter 35.
The SBA certifies that this proposed rule would not have federalism
implications warranting the preparation of a Federalism Assessment in
accordance with Executive Order 12612.
Further, for purposes of Executive Order 12778, SBA certifies that
this proposed rule, if promulgated in final form, is drafted, to the
extent practicable, in accordance with the standards set forth in
section 2 of that Order.
(Catalog of Federal Domestic Assistance Program No. 59.012)
List of Subjects in 13 CFR Part 122
Loan programs--business, Small businesses.
Accordingly, pursuant to the authority contained in section 5(b)(6)
of the Small Business Act (15 U.S.C. 634(b)(6)), SBA proposes to amend
part 122, chapter I, title 13, Code of Federal Regulations, as follows:
PART 122--BUSINESS LOANS
1. The authority citation for part 122 would continue to read as
follows:
Authority: 15 U.S.C. 634(b)(6), 636(a), 636(m).
2. Section 122.61-11(a) would be amended by revising the last
sentence to read as follows:
Sec. 122.61-11 Program procedure.
(a) Participation of intermediary by State. * * * Further, no
intermediary may undertake Program activities in more than one State
unless the SBA Associate Administrator for Financial Assistance
determines in writing that it would be in the best interest of the
small business community to operate across State lines.
* * * * *
Dated: March 31, 1995.
Philip Lader,
Administrator.
[FR Doc. 95-11156 Filed 5-4-95; 8:45 am]
BILLING CODE 8025-01-M