[Federal Register Volume 78, Number 74 (Wednesday, April 17, 2013)]
[Proposed Rules]
[Pages 22801-22802]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-08999]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 78, No. 74 / Wednesday, April 17, 2013 / 
Proposed Rules  

[[Page 22801]]



DEPARTMENT OF COMMERCE

Economic Development Administration

13 CFR Chapter III

[Docket No.: 130301184-3184-01]
RIN 0610-XC001


Request for Comments on Developing a Program To Provide Loan 
Guarantees to Small- or Medium-Sized Manufacturers

AGENCY: Economic Development Administration, U.S. Department of 
Commerce.

ACTION: Notice of Inquiry and Request for Comments.

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

SUMMARY: The Economic Development Administration (EDA) seeks public 
comment on, how to design and structure loan guarantees for small- and 
medium-sized manufacturers through its authority under the Consolidated 
and Further Continuing Appropriations Act of 2012 (H.R. 2112, Pub. L. 
112-55), which designated up to $5,000,000 from its Economic Adjustment 
Assistance Program appropriations for loan guarantees under Section 26 
of the Stevenson-Wydler Technology Innovation Act of 1980 (the 
Stevenson-Wydler Act) (15 U.S.C. 3721). Specifically, EDA is 
considering how to implement its statutory authority to establish a 
loan guarantee program for small- and medium-sized manufactures that 
encourages projects that re-equip, expand, or establish a manufacturing 
facility in the United States and that use innovative technology or 
processes in manufacturing. The loan guarantees should also be used to 
encourage the manufacture of innovative products, processes, or ideas 
developed by research funded in whole or in part by grants from the 
Federal government. EDA requests input from the public, through the 
specific questions listed below, on ways to structure this program, in 
order to assess the level of demand for such a program and the level of 
agency support necessary to institute a loan guarantee program 
consistent with the provisions of the Stevenson-Wydler Act.

DATES: Comments must be received by 5:00 p.m. Eastern Time on May 15, 
2013.

ADDRESSES: You may submit comments by any of the following methods. All 
comments must include the title, ``Comments on Development of EDA 
Program to Provide Loan Guarantees to Manufacturers'' and Docket No. 
130301184-3184-01.
     Email: [email protected]. Include ``Comments on Development of 
EDA Program to Provide Loan Guarantees to Manufacturers'' and Docket 
No. 130301184-3184-01 in the subject line of the message.
     Fax: (202) 482-5671, Attention: Office of Chief Counsel. 
Please indicate ``Comments on Development of EDA Program to Provide 
Loan Guarantees to Manufacturers'' and Docket No. 130301184-3184-01 on 
the cover page.
     Mail: Economic Development Administration, Office of Chief 
Counsel, Suite 7325, U.S. Department of Commerce, 1401 Constitution 
Avenue NW., Washington, DC 20230. Please indicate ``Comments on 
Development of EDA Program to Provide Loan Guarantees to 
Manufacturers'' and Docket No. 130301184-3184-01 on the envelope.

FOR FURTHER INFORMATION CONTACT: Samantha Schasberger, Program Analyst, 
U.S. Department of Commerce, Economic Development Administration, 1401 
Constitution Avenue NW., Washington, DC 20230 or via 
[email protected].

SUPPLEMENTARY INFORMATION: Established under the Public Works and 
Economic Development Act of 1965, as amended (42 U.S.C. 3121 et seq.) 
(PWEDA), EDA's mission is to lead the Federal economic development 
agenda by promoting innovation and competitiveness, preparing American 
regions for growth and success in the worldwide economy. EDA partners 
with stakeholders throughout the United States to foster job creation, 
collaboration and innovation. EDA's regulations, which are codified at 
13 CFR chapter III, implement the agency's six economic development 
assistance programs authorized under PWEDA, as well as the Trade 
Adjustment Assistance for Firms Program, which are authorized under 
chapters 3, 4, and 5 of title II of the Trade Act of 1974, as amended 
(19 U.S.C. 2341 et seq.).
    Section 26 of the Stevenson-Wydler Act, 15 U.S.C. 3721, authorizes 
EDA to issue loan guarantees to companies for small- or medium-sized 
manufacturers to finance projects that re-equip, expand, or establish a 
manufacturing facility in the United States to use an innovative 
technology or innovative process in manufacturing; manufacture an 
innovative technology product or an integral component of such a 
product; or, to commercialize an innovative product, process or idea 
developed by research funded in whole or in part by a grant from the 
Federal government. The Stevenson-Wydler Act, at 15 U.S.C. 3721(s)(3), 
defines innovative technology as ``a technology that is significantly 
improved as compared to the technology in general use in the commercial 
marketplace in the United States at the time the loan guarantee is 
issued.'' In considering the definition of small or medium-sized 
manufacturers, EDA refers to the definitions for small businesses 
established by the Small Business Administration (SBA) available at 
http://www.sba.gov/category/navigation-structure/contracting/contracting-officials/eligibility-size-standards. EDA has not yet 
established this program, and seeks public comments, especially from 
lenders and manufacturers, on how best to do so.
    In addition to the questions in this SUPPLEMENTARY INFORMATION 
section that are targeted to manufacturers and lending institutions, 
EDA seeks public comments on any aspect of structuring a loan guarantee 
program. Comments that identify potential impediments and make 
corresponding recommendations, as well as the commenter's experiences 
in attempting, to access capital via loan guarantee programs will be 
instructive.
    Comments should be submitted to EDA as described in the ADDRESSES 
section of this notice. EDA will consider all comments submitted in 
response to this request for information (RFI) that are received by 
5:00 p.m. Eastern Time on May 15, 2013, as referenced under DATES. EDA 
will not accept public comments accompanied by a request that a part or 
all of the material be treated confidentially for any reason; EDA will 
not consider such comments and will return such materials to the

[[Page 22802]]

commenter. All public comments in response to this RFI must be in 
writing (including fax or email) and will be a matter of public record.

Questions

For Lenders

    1. Are small- or medium-sized manufacturers a part of your ordinary 
portfolio of loans? If not, why not?
    2. What are the biggest impediments to a small- or medium-sized 
manufacturer receiving a loan from your lending institution? Are there 
types of manufacturers (company size, industry etc.) that you would be 
more hesitant to loan to than others?
    3. Would a new loan guarantee program make you more likely to lend 
to manufacturers especially small- or medium-sized manufacturers? If 
so, why and what increase in loan volume to these companies would you 
estimate would occur?
    4. If EDA established a new Federal loan guarantee program that 
offered loan guarantees for targeted loans for small- or medium-sized 
manufacturers to support the use or production of innovative technology 
(as defined above) how much of a guarantee would your lending 
institution need in order to be willing to offer loans for such 
purposes? Besides the level of the guarantee, are there any other 
requirements that you would have of the guarantee program in order to 
offer such loans?
    5. What would your lending institution require for a borrower to 
demonstrate that a market exists for an innovative technology product?
    6. With the support of a loan guarantee program, what size loans 
would you anticipate making to manufacturers who meet the definition of 
small- or medium-sized and would you use the loan proceeds to support 
the use or production of innovative technologies?
    7. If such a Federal program were created, what additional 
requirements would you require from the manufacturers, if any, to 
support such a loan?
    8. Have you ever participated in a loan guarantee program (for 
example, any guarantee program provided by SBA? If not, why not? If so, 
would you recommend this process to others? What was your experience 
with loan guarantee programs (including SBA loan guarantee programs)?

For Manufacturers

    9. What is the largest sized manufacturer that you would consider 
calling a medium-sized manufacturer?
    10. Is access to capital an impediment for your development as a 
small- or medium-sized manufacturer? If so, why (specifically) and what 
is the size of your firm?
    11. If accessing capital is an impediment, is securing a loan via a 
new Federal loan guarantee program to support the use or production of 
innovative technologies a strategy that you would pursue in order to 
access capital? If not, why not?
    12. If you would pursue a loan, what size loan would be necessary 
to support your development needs?
    13. Given that the purpose of this program would be to support 
innovation by re-equipping, expanding or establishing a manufacturing 
facility in the U.S., what types of activities and outcomes would you 
use the loan to support?
    14. Have you ever used a loan guarantee program (for example, any 
guarantee program provided by the SBA)? If not, why not? If so, would 
you recommend this process to others? What was your experience with 
loan guarantee programs (including SBA loan guarantee programs)?

General

    15. Are there any additional comments that you would like to offer 
about the proposal to establish a loan guarantee program that targets 
the use or production of innovative technologies for manufacturing?

    Dated: April 10, 2013.
Matt Erskine,
Deputy Assistant Secretary for Economic Development and Chief Operating 
Officer, Economic Development Administration.
[FR Doc. 2013-08999 Filed 4-16-13; 8:45 am]
BILLING CODE 3510-24-P