[Federal Register Volume 79, Number 184 (Tuesday, September 23, 2014)]
[Notices]
[Pages 56842-56844]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-22537]


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SMALL BUSINESS ADMINISTRATION


Delegations of Authority: Delegation of Authority No. 12-G, 
Revision 1

AGENCY: Small Business Administration.

ACTION: Notice of Delegations of Authority.

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SUMMARY: This document provides the public notice of a revision to 
Delegations of Authority No. 12-G (70 FR 21262, April 25, 2005), which 
delegated authority for lender oversight and enforcement activities by 
the Administrator of the Small Business Administration (SBA) to the 
Associate Administrator for the Office of Lender Oversight (AA/OLO), 
the Lender Oversight Committee, and the Associate Deputy Administrator 
for Capital Access (ADA/CA). By this revision, the Administrator 
provides the public notice of a change in the name of Office of Lender 
Oversight to the ``Office of Credit Risk Management.'' It also provides 
notice of changes in the position titles of the AA/OLO to the 
``Director, Office of Credit Risk Management'' (D/OCRM) and the ADA/CA 
to the ``Associate Administrator for Capital Access'' (AA/CA). Through 
this document, the Administrator is delegating additional authority in 
lender oversight and enforcement matters to the D/OCRM, the Lender 
Oversight Committee, and the AA/CA. The additional delegations to the 
D/OCRM include, but are not limited to, the authority to renew certain 
delegated lending authorities accorded to 7(a) Lenders and Certified 
Development Companies, authorities over SBA Supervised Lender 
reporting, and the authority to oversee Agent activity in the business 
loan programs. The additional authorities delegated to the Lender 
Oversight Committee effect a transfer of certain supervision and 
enforcement authorities from the Director, Office of Financial 
Assistance to the Lender Oversight Committee. The additional 
authorities delegated to the AA/CA relate to Small Business Lending 
Company capital. Finally, this revision incorporates a few updates and 
clarifications. These Delegations of Authority No. 12-G, Revision 1 
supersede Delegations of Authority No. 12-G.

FOR FURTHER INFORMATION CONTACT: Brent Ciurlino, Director, Office of 
Credit Risk Management, or Diane K. Wright, Attorney Advisor, Office of 
General Counsel, U.S. Small Business Administration, 409 3rd Street 
SW., Washington, DC 20416, telephone numbers: (202) 205-3049 or (202) 
205-6642, respectively; facsimile number: (202) 205-6831; and 
electronic mail: [email protected] or [email protected], 
respectively.

SUPPLEMENTARY INFORMATION: This publication provides the public notice 
of a revision to the Administrator's Delegations of Authority with 
respect to SBA's lender oversight and enforcement activities. 
Specifically, this revision provides the public notice of a change in 
the name of the office from the ``Office of Lender Oversight'' to the 
``Office of Credit Risk Management.'' This document also provides the 
public notice of a change in the position titles from ``Associate 
Administrator for the Office of Lender Oversight'' to ``Director, 
Office of Credit Risk Management'' (D/OCRM) and from the ``Associate 
Deputy Administrator for Capital Access'' to the ``Associate 
Administrator for Capital Access'' (AA/CA).
    In addition, the revision grants further authority in lender 
oversight and enforcement matters to the D/OCRM, the Lender Oversight 
Committee, and the AA/CA. This revision delegates to the D/OCRM the 
authority to renew delegated lending authority accorded to 7(a) Lenders 
in the Preferred Lenders Program (PLP), SBA Express Program, and Export 
Express Program and to renew delegated lending authority accorded to 
Certified Development Companies (CDCs) in the Accredited Lenders 
Program (ALP) and the Premier Certified Lenders Program (PCLP). The 
Director, Office of Financial Assistance (D/OFA) will make the 
delegated lending authority determination on initial applications 
(Nominations). This revision also delegates to the D/OCRM the authority 
over participation in the Community Advantage Program, currently a 
pilot program. The document further delegates to the D/OCRM authority 
over SBA Supervised Lender reporting. In addition, it eliminates the 
Risk Rating ``4'' and ``5'' delineation for the D/OCRM and the D/OFA in 
their respective responsibilities for dealings with 7(a) Lenders and 
CDCs (collectively, SBA Lenders), and Intermediaries in the Microloan 
Program and Intermediaries in the ILP

[[Page 56843]]

Program (collectively, Intermediaries). More specifically, the D/OCRM 
will have responsibility for dealings with all SBA Lenders and 
Intermediaries in matters of oversight/monitoring, supervision, and 
enforcement, as applicable. Other dealings with SBA Lenders, including 
but not limited to approval of 7(a) Lender financing and other 
conveyances (e.g., securitizations, sales, sales of participations, and 
pledges) and approvals of SBA Supervised Lender applications and 
changes of ownership and control, will rest with the D/OFA regardless 
of Risk Rating. The D/OFA will make certain significant decisions 
(e.g., other conveyances and SBA Supervised Lender applications and 
changes of ownership and control) in consultation with the D/OCRM. The 
Administrator is also delegating to the D/OCRM oversight of Agent 
activity in SBA's business loan programs and the authority to suspend 
or revoke the privilege of these Agents to conduct business with SBA 
under 13 C.F.R. Part 103.
    The revision also expands certain authorities of the Lender 
Oversight Committee. Specifically, the Lender Oversight Committee's 
authority to approve certain enforcement actions against lenders is no 
longer limited to lenders Risk Rated ``4'' and ``5''. With this 
Delegation, the Lender Oversight Committee has authority to approve 
such enforcement actions regardless of an SBA Lender's or 
Intermediary's Risk Rating. By this revision, the Administrator also 
delegates to the AA/CA additional authorities, including authorities 
involving SBA Supervised Lender capital regulation (e.g., the authority 
to set SBLC capital standards). These changes extend the formal 
migration of lender oversight and enforcement responsibilities from the 
D/OFA to the D/OCRM, the Lender Oversight Committee, and the AA/CA. 
Finally, the revision incorporates a few clarifications and updates 
(e.g., inclusion of risk-based reviews/examinations as an oversight 
tool in paragraph I.A.2.b. below, additional supervision and 
enforcement authorities over Intermediaries, and D/OCRM authority to 
implement certain portfolio transfers). Delegation of Authority No. 12-
G Revision 1 reads as follows:
    Delegation of Authority No. 12-G, Revision 1.
    I. The Administrator of the SBA, pursuant to the authority vested 
in her by the Small Business Act, 15 U.S.C. 631 et. seq., as amended, 
and the Small Business Investment Act of 1958, 15 U.S.C. 661 et. seq., 
as amended, hereby delegates the following authorities:
    A. To the Director, Office of Credit Risk Management (D/OCRM):
    1. Loan Program Delegated Authority Renewals and Community 
Advantage Program Participation. To approve or decline: (i) Renewal of 
7(a) Lender participation in the Preferred Lenders (PLP) \1\, SBA 
Express, Export Express, and PLP-Export Working Capital (PLP-EWCP) 
programs; (ii) renewal of Certified Development Company (CDC) 
participation in the Accredited Lenders Program (ALP) and Premier 
Certified Lenders Program (PCLP); (iii) renewal of 7(a) Lender or CDC 
(together, SBA Lender) participation in other delegated authority 
programs established in the future, unless otherwise provided; and (iv) 
a lender's participation in the Community Advantage Program, regardless 
of the lender's Risk Rating and as more specifically set forth in (a) 
through (g) below. If a renewal request is denied or renewal authority 
expires and an SBA Lender later reapplies, the D/OCRM may approve or 
deny the request. If an SBA Lender requests additional delegated 
authority with its renewal request, the D/OCRM may also approve or deny 
the additional authority request. The D/OCRM's determination is the 
final Agency decision.
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    \1\ The D/OCRM's authority to renew PLP authority will also 
include renewal of CLP authority if CLP authority is expiring at the 
same time.
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    a. PLP.
    To approve or decline the renewal of a 7(a) Lender's participation 
in PLP \2\ and PLP-EWCP.
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    \2\ This includes authority to renew CLP that is expiring with 
renewal of PLP.
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    b. SBA Express Program.
    To approve or decline the renewal of a 7(a) Lender's participation 
in SBA Express.
    c. Export Express Program.
    To approve or decline the renewal of a 7(a) Lender's participation 
in Export Express.
    d. ALP.
    To approve or decline the renewal of a CDC's participation in ALP.
    e. PCLP.
    To approve or decline the renewal of a CDC's participation in PCLP.
    f. Other Delegated Lending Authority Programs.
    To approve or decline the renewal of an SBA Lender's participation 
in other delegated lending authority programs hereafter established 
unless otherwise provided.
    g. Community Advantage Program.
    (i) To approve or decline a lender's application for participation 
in Community Advantage, including delegated lending authority and/or 
the authority to sell Community Advantage loans on the Secondary 
Market.
    (ii) To approve or decline the renewal of a lender's participation 
in Community Advantage, including delegated lending authority and/or 
the authority to sell Community Advantage loans on the Secondary 
Market.
    2. Lender Oversight Activities.
    a. To direct and coordinate SBA's lender oversight activities.
    b. To review, examine, monitor, and assess the risks to SBA loan 
programs of SBA Lenders (including but not limited to: Small Business 
Lending Companies (SBLCs); Non-Federally Regulated Lenders (as defined 
in 13 CFR 120.10, NFRLs); other 7(a) Lenders; and CDCs) and 
Intermediaries in the Microloan Program and Intermediaries in the ILP 
Program (collectively, Intermediaries) (the latter two programs in 
conjunction with SBA's Office of Economic Opportunity), using a variety 
of oversight tools, including but not limited to: Risk-based reviews/
exams; ongoing monitoring and evaluation; Risk Ratings and Assessments; 
and increased supervision, where applicable.
    c. To assign Risk Ratings and Assessments.
    d. To conduct increased supervision.
    e. To oversee SBA Supervised Lender reporting (including, but not 
limited to, receiving: SBA Supervised Lender reports; capital 
impairment notices; copies of documents related to transfer of 
ownership or control filed with another authority; and requests for SBA 
Supervised Lender reporting waivers) and to make the final Agency 
decision to waive any reporting requirements for SBA Supervised 
Lenders.
    f. To assume responsibility for the follow-up and dealings with SBA 
Lenders and Intermediaries regardless of Risk Rating, in matters 
involving lender oversight, supervision and enforcement.
    g. To head and direct the activities of the Bureau of PCLP 
Oversight.
    h. To oversee Agent activity in SBA's business loan programs. For 
purposes of these delegations, ``Agent'' refers to an Agent under 13 
CFR 103.1(a) of an applicant or participant in SBA's business loan 
programs.
    i. To take all other actions relating to lender oversight 
activities and supervision that are not otherwise delegated to others.
    3. Enforcement Actions.
    a. To make recommendations to the Lender Oversight Committee 
relating to formal enforcement actions under 13 CFR 120.1500-120.1540 
against SBA Lenders and Intermediaries.
    b. To take formal enforcement actions under 13 CFR 120.1500-
120.1540

[[Page 56844]]

against SBA Lenders and Intermediaries as approved by the Lender 
Oversight Committee and, if necessary, as approved by the Administrator 
or his/her authorized delegatee, with the concurrence of the Office of 
General Counsel.
    c. To approve and take informal enforcement actions against SBA 
Lenders and Intermediaries.
    d. To take all other actions in connection with lender oversight 
enforcement for SBA Lenders and Intermediaries that are not otherwise 
delegated to others (including, but not limited to, receiving written 
objections to proposed enforcement actions or immediate suspensions, 
requests for clarification of the notice of actions, and requests for 
additional time to respond to the notice of actions and making the 
final Agency decision on requests for clarification and additional time 
to respond).
    e. To approve or disapprove suspension or revocation of the 
privilege of any Agent in SBA's business loan programs to conduct 
business with SBA under 13 CFR part 103 or take other Agent action as 
available under law.
    f. To take other actions in connection with lender oversight 
enforcement as permitted by SBA Loan Program Requirements or other law 
that are not otherwise delegated herein.
    4. Policy, Program, and Portfolio Analysis.
    a. To provide the Office of Capital Access (OCA) and appropriate 
program management offices with independent policy, program and 
portfolio analysis and recommendations for SBA's loan programs and 
portfolios, generally developed through lender oversight and 
enforcement activities and Office of Performance and Systems Management 
reports.
    b. To conduct quality assurance activities at SBA loan operation 
centers.
    c. To monitor changes in accounting, banking, and financial 
industries relative to financial institution oversight and recommend 
appropriate modification of SBA oversight policies.
    d. To manage the content of SBA's Loan and Lender Monitoring 
System.
    5. To implement portfolio and servicing transfers in conjunction 
with increased supervision or enforcement activity. This includes, but 
is not limited to, determining transferee.
    6. To serve as the debarring and suspending official for SBA's 
financial assistance programs.
    7. To take all other actions in connection with matters related to 
SBA Lender, Intermediary, and Agent oversight, supervision and 
enforcement and SBA's Credit Risk Management Program and to take any 
and all action necessary and proper to execute or implement the 
authority granted herein.
    B. To the Lender Oversight Committee:
    1. To review reports on lender oversight activities.
    2. To review formal enforcement action recommendations of the D/
OCRM for SBA Lenders, Microloan Intermediaries and ILP Intermediaries 
and
    a. With respect to formal enforcement actions under Sections 23(d) 
(revocation or suspension of loan authority of SBLC/NFRL) and 23(e) 
(Cease and Desist Order issued to SBLC/NFRL) of the Small Business Act, 
to vote to recommend such action or any other action under this 
paragraph to the Administrator or his/her authorized delegatee or to 
vote to not recommend action under this paragraph to the Administrator 
or his/her delegatee, and
    b. With respect to all other formal enforcement actions not 
otherwise delegated to others herein, to vote to approve, disapprove, 
or modify the action.
    3. To review OCRM's budget, staffing, and operating plans.
    4. To review in an advisory capacity any lender oversight, 
portfolio risk management, or program integrity matters brought by the 
D/OCRM at his/her discretion on a case by case basis.
    5. To take such other actions and perform such other functions as 
may be formally adopted in SBA Loan Program Requirements or otherwise.
    6. The Lender Oversight Committee will consist of SBA's Chief 
Operating Officer or Deputy Chief Operating Officer (Chairperson and 
voting member); Chief Financial Officer or Deputy Chief Financial 
Officer (voting member); AA/CA or Deputy Associate Administrator/CA 
(voting member); the D/OCRM (non-voting recommending member); Director, 
Office of Financial Assistance (non-voting advisory member); Director, 
Office of Economic Opportunity (non-voting advisory member); Director, 
Office of Financial Program Operations (non-voting advisory member); 
Director, Office of Performance and Systems Management (non-voting 
advisory member); Associate Administrator, Office of Field Operations 
(non-voting advisory member); Associate Administrator, Office of 
International Trade (non-voting advisory member); and General Counsel 
(non-voting advisor).
    C. To the Associate Administrator for Capital Access (AA/CA): In 
addition to the powers and authorities already delegated to the AA/CA:
    1. SBA Supervised Lender Capital.
    a. To set capital standards for SBLCs in general.
    b. To set higher individual minimum capital requirements for an 
SBLC.
    c. To issue a capital directive to an SBLC.
    d. To make the final Agency decision on waiver of the loan guaranty 
presentment prohibition for an SBA Supervised Lender that is capitally 
impaired, in consultation with the Lender Oversight Committee.
    II. The authorities delegated to the D/OCRM, except the authority 
to change assigned ratings, may be redelegated.
    III. The authorities delegated to the D/OCRM may be exercised by 
any SBA employee officially designated as Acting in the position.
    IV. Other than the authority delegated to the Lender Oversight 
Committee in Paragraph I.B.2.b. (enforcement actions), the authorities 
delegated herein to the Lender Oversight Committee may not be 
redelegated. With regard to the authority delegated in Paragraph 
I.B.2.b., the Lender Oversight Committee may redelegate authority to 
the D/OCRM or a subcommittee to approve, disapprove, or modify certain 
enforcement actions (e.g., Agreement or Memorandum of Understanding 
between SBA and lender).
    V. The authorities delegated to each Lender Oversight Committee 
member or advisor may be exercised by any SBA employee officially 
designated as Acting in the position.
    VI. The authorities delegated to the AA/CA in Paragraph I.C.1. 
except the authority in Subparagraph I.C.1.a. (to set SBLC capital 
standards), cannot be redelegated.
    VII. The authorities delegated herein to the AA/CA may be exercised 
by any SBA employee officially designated as Acting in the position.
    VIII. The authorities delegated herein can only be revoked or 
amended by the Administrator and in writing.
    IX. All previous delegations that are contrary to these delegations 
are hereby revoked.

    Authority:  5 U.S.C. 302; 15 U.S.C. 634; 15 U.S.C. 636; 15 
U.S.C. 642; 15 U.S.C. 650; 15 U.S.C. 687(f); 15 U.S.C. 696(3)(A); 15 
U.S.C. 697; Pub. L. 104-208, Division D, Title I, Section 103(h) 
(September 30, 1996); and 2 CFR 2700 et. seq.

    Dated: September 16, 2014.
Maria Contreras-Sweet,
Administrator.
[FR Doc. 2014-22537 Filed 9-22-14; 8:45 am]
BILLING CODE 8025-01-P