[Federal Register Volume 76, Number 176 (Monday, September 12, 2011)]
[Notices]
[Page 56262]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-23244]


=======================================================================
-----------------------------------------------------------------------

SMALL BUSINESS ADMINISTRATION

[Docket No. SBA 2011-0003]


Community Advantage Pilot Program

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

ACTION: Notice of change to Community Advantage Pilot Program.

-----------------------------------------------------------------------

SUMMARY: On February 18, 2011, SBA published a notice and request for 
comments introducing the Community Advantage Pilot Program. In that 
notice, SBA modified or waived as appropriate certain regulations which 
otherwise apply to the 7(a) loan program for the Community Advantage 
Pilot Program. To support SBA's commitment to expanding access to 
capital for small businesses and entrepreneurs in underserved markets, 
SBA is issuing this notice to revise certain of these regulatory 
waivers.

DATES: This notice is effective September 12, 2011.

FOR FURTHER INFORMATION CONTACT: Grady B. Hedgespeth, Director, Office 
of Financial Assistance, U.S. Small Business Administration, 409 Third 
Street, SW., Washington, DC 20416; (202) 205-7562; 
[email protected].

SUPPLEMENTARY INFORMATION: On February 18, 2011, SBA issued a notice 
and request for comments introducing the Community Advantage Pilot 
Program (``CA Pilot Program'') (76 FR 9626). Pursuant to the authority 
provided to SBA under 13 CFR 120.3 to suspend, modify or waive certain 
regulations in establishing and testing pilot loan initiatives, SBA 
temporarily waived certain regulations, which otherwise apply to 7(a) 
loans, for the CA Pilot Program. Specifically, SBA waived 13 CFR 
120.420 through 120.435 because CA Lenders were prohibited from 
including CA loans in participant lender financings and other 
conveyances, including securitizations, participations and pledges. 
This prohibition, however, may restrict the ability of CA Lenders to 
obtain access to capital from commercial banks and warehouse lenders. 
Therefore, SBA is revising the February 18, 2011 notice to allow CA 
Lenders participating in the CA Pilot Program to pledge CA loans as 
collateral for certain lender financings that are approved by SBA, 
provided the CA Lender complies with all applicable SBA regulations. To 
accomplish this, SBA is no longer waiving the regulations at 13 CFR 
120.420, 120.430 -120.431 (only with respect to pledges), and 120.434. 
While SBA is permitting CA Lenders to pledge CA loans as collateral for 
certain lender financings in accordance with the aforementioned 
regulations, SBA will not permit CA Lenders to include CA loans in 
securitizations, any loan sales or participations. Therefore, SBA 
continues to waive the regulations at 13 CFR 120.421 through 120.428, 
120.432, 120.433 and 120.435, as stated in the February 18, 2011 
notice. This notice does not affect a CA Lender's ability to sell the 
guaranteed portions of CA loans in the secondary market, as further 
described in the February 18, 2011 notice.
    In addition to issuing this notice, SBA will modify the Community 
Advantage Pilot Program Loan Guaranty Agreement (SBA Form 750CA) to 
allow lenders to pledge CA loans as collateral for certain lender 
financings. SBA will make the revised SBA Form 750CA available to CA 
Lenders. All participants in the CA Pilot Program must execute the 
revised SBA Form 750CA and return it to SBA prior to pledging any CA 
loans.
    All other SBA guidelines and regulatory waivers related to the CA 
Pilot Program remained unchanged.
    SBA has provided more detailed guidance in the form of a 
participant guide which is available on SBA's Web site, http://www.sba.gov. SBA may also provide additional guidance, if needed, 
through SBA notices, which will also be published on SBA's Web site, 
http://www.sba.gov.
    Questions on the CA Pilot Program may be directed to the Lender 
Relations Specialist in the local SBA district office. The local SBA 
district office may be found at http://www.sba.gov/about-offices-list/2.

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

Karen G. Mills,
Administrator.
[FR Doc. 2011-23244 Filed 9-9-11; 8:45 am]
BILLING CODE 8025-01-P