[Federal Register Volume 60, Number 159 (Thursday, August 17, 1995)]
[Rules and Regulations]
[Page 42781]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-20433]
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SMALL BUSINESS ADMINISTRATION
13 CFR Part 122
Business Loans--Microloans
AGENCY: Small Business Administration (SBA).
ACTION: Final rule.
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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
(Program) under which the SBA lends funds to qualified intermediaries
which re-lend amounts of $25,000 or less to eligible small business
concerns. Under this final 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 is in the best interest of the small business
community to allow such intermediary to operate in more than one state.
EFFECTIVE DATE: This rule is effective August 17, 1995.
FOR FURTHER INFORMATION CONTACT: John R. Cox, 202/205-6490.
SUPPLEMENTARY INFORMATION: Section 7(m) of the Act authorizes the SBA
to operate the Program in which the SBA lends funds to authorized
intermediaries which re-lend amounts up through $25,000 to eligible
small business concerns.
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 regulation 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. On May 5, 1995, SBA published in the
Federal Register (60 FR 22311) a proposed rule to allow the SBA
Associate Administrator for Financial Assistance to make a
determination in that regard. No comments were received so the final
rule is being published as proposed.
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 final rule will not have a significant
economic impact on a substantial number of small entities.
SBA certifies that this final rule will not constitute a
significant regulatory action for the purposes of Executive Order
12866, since the change is not likely to result in an annual effect on
the economy of $100 million or more, nor will this final rule impose
additional reporting or recordkeeping requirements which would be
subject to the Paperwork Reduction Act, 44 U.S.C. Chapter 35.
SBA certifies that this final rule would not have federalism
implications warranting the preparation of a Federalism Assessment in
accordance with Executive Order 12612.
For purposes of Executive Order 12778, SBA certifies that this
final rule is drafted, to the extent practicable, in accordance with
the standards set forth in section 2 of that Order.
(Catalog of Federal Domestic Assistance Programs, 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 amends part 122,
chapter I, title 13, Code of Federal Regulations, as follows:
PART 122--BUSINESS LOANS
1. The authority citation for part 122 continues to read as
follows:
Authority: 15 U.S.C. 634(b)(6), 636(a), 636(m).
2. Section 122.61-11(a) is 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: July 31, 1995.
Philip Lader,
Administrator.
[FR Doc. 95-20433 Filed 8-16-95; 8:45 am]
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