[Federal Register Volume 75, Number 2 (Tuesday, January 5, 2010)]
[Notices]
[Page 473]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-31346]


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SMALL BUSINESS ADMINISTRATION


Community Express Pilot Program

AGENCY: U.S. Small Business Administration (SBA).

ACTION: Notice of extension of the Community Express Pilot Program.

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SUMMARY: This notice extends the Community Express Pilot Program in its 
current form through December 31, 2010. Based upon the significant 
restructuring of this pilot program implemented in October 2008, the 
Agency seeks to extend the pilot to obtain sufficient experience to 
better evaluate the pilot's accomplishments. This notice also reminds 
SBA's participating lenders of the statutory limitation on the number 
of loans SBA can process under a pilot program.

DATES: The Community Express Pilot Program is extended through December 
31, 2010.

FOR FURTHER INFORMATION CONTACT: V. Anita Jacobs, Office of Financial 
Assistance, U.S. Small Business Administration, 409 Third Street, SW., 
Washington, DC 20416; Telephone (202) 205-6557; [email protected].

SUPPLEMENTARY INFORMATION: The Community Express Pilot Program was 
established in 1999 based on the Agency's SBA Express Program. Lenders 
approved for participation in Community Express are authorized to use 
the expedited loan processing procedures in place for SBA Express, in 
order to specifically support lending to distressed or underserved 
markets. In addition, participating lenders must arrange and, when 
necessary, pay for appropriate management and technical assistance for 
their Community Express borrowers. To encourage lenders to make these 
loans, SBA provides its full 75-85 percent guaranty, rather than the 50 
percent guaranty the Agency provides under SBA Express. The maximum 
loan amount under this pilot program is $250,000.
    In June 2008, SBA published a notice in the Federal Register to 
extend the existing pilot program through September 30, 2008 and to 
notify the public of SBA's plan to significantly restructure the 
Community Express Pilot Program effective October 1, 2008. (73 FR 
36950, June 30, 2008) The restructured pilot program was extended 
through December 31, 2009 (73 FR 36950). Extension of this restructured 
pilot for an additional year will allow SBA time to better evaluate the 
results of the program changes implemented in October 2008.
    Because Community Express is a pilot program, SBA must ensure that 
it complies with Section 7(a)(25) of the Small Business Act, which 
prohibits the Agency from approving under any 7(a) pilot loan program 
more than 10 percent of the total number of 7(a) loans SBA approves in 
any fiscal year. During the early months of Fiscal Year 2008, SBA 
received loan guaranty requests under Community Express at a volume 
that would have exceeded this statutory limit by fiscal year end, if 
unchecked. As a result, during Fiscal Year 2008, and continuing through 
Fiscal Year 2009 and into Fiscal Year 2010, the SBA has taken steps to 
limit the number of Community Express loans accepted each month. In 
addition to keeping the number of Community Express loans within the 
statutory limitation, this action has helped enhance competition, 
diversify SBA lending, and control SBA's risk under the pilot program. 
SBA will continue to closely monitor the number of Community Express 
loans approved and make adjustments as needed.

    Authority:  15 U.S.C. 636(a)(25); 13 CFR 120.3.

Grady B. Hedgespeth,
Director, Office of Financial Assistance.
[FR Doc. E9-31346 Filed 12-31-09; 11:15 am]
BILLING CODE 8025-01-P