[Federal Register Volume 71, Number 16 (Wednesday, January 25, 2006)]
[Proposed Rules]
[Page 4062]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-881]



[[Page 4062]]

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SMALL BUSINESS ADMINISTRATION

13 CFR Part 120

RIN 3245-AE83


Business Loans and Development Company Loans; Liquidation and 
Litigation Procedures

AGENCY: Small Business Administration (SBA).

ACTION: Proposed rule; notice of reopening of the comment period.

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SUMMARY: On November 3, 2005, SBA published in the Federal Register a 
proposed rule which establishes procedures for Certified Development 
Companies (CDCs) that are eligible for, and that request, authority 
from SBA to handle liquidation and litigation of loans that are funded 
with the proceeds of debentures guaranteed by the SBA under the 504 
business loan program, and rights of appeal from denied applications; 
provides for new liquidation and debt collection litigation procedures 
for authorized CDCs and for lenders participating in the 7(a) business 
loan program (Lenders); establishes procedures for, and restrictions 
on, the payment by SBA of legal fees and expenses to CDCs and Lenders; 
requires Lenders to complete all cost-effective debt recovery actions 
prior to requesting guaranty purchase by SBA; limits to 120 days the 
number of days of interest that SBA will pay Lenders on 7(a) loans that 
have gone into default; revises SBA regulations pertaining to loan 
servicing actions; states that for 7(a) loans approved after the 
effective date of the rule, a Lender's consent to SBA's sale of certain 
7(a) loans after guaranty purchase is granted; and clarifies existing 
regulations regarding the applicability of SBA regulations and loan 
program requirements, and regarding SBA purchases of guaranties. The 
proposed rule provided a 60-day comment period closing on January 3, 
2006. We are re-opening the comment period until February 24, 2006, 
because we have been informed that, given the time of year, the public 
needs more time to formulate comments.

DATES: Comments on the proposed rule published at 70 FR 66800, November 
3, 2005, must be received on or before February 24, 2006.

ADDRESSES: You may submit written comments, identified by agency name 
and RIN 3245-AE83 for this rulemaking, by any of the following methods: 
Follow instructions for submitting electronic comments through the 
Federal eRulemaking Portal: http://www.regulations.gov; E-mail: 
[email protected], include RIN number in the subject line of the 
message; Fax: (202) 481-2381; Mail or Hand Delivery/Courier: James 
Hammersley, Acting Assistant Administrator, Office of Portfolio 
Management, Small Business Administration, 409 Third Street, SW., 
Washington, DC 20416.

    Dated: January 19, 2006.
Michael W. Hager,
Associate Deputy Administrator for Capital Access.
[FR Doc. E6-881 Filed 1-24-06; 8:45 am]
BILLING CODE 8025-01-P