[Federal Register Volume 81, Number 111 (Thursday, June 9, 2016)]
[Proposed Rules]
[Pages 37392-37398]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-12927]



[[Page 37391]]

Vol. 81

Thursday,

No. 111

June 9, 2016

Part XX





Small Business Administration





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Semiannual Regulatory Agenda

  Federal Register / Vol. 81 , No. 111 / Thursday, June 9, 2016 / 
Unified Agenda  

[[Page 37392]]


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SMALL BUSINESS ADMINISTRATION

13 CFR Ch. I


Semiannual Regulatory Agenda

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

ACTION: Semiannual regulatory agenda.

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

SUMMARY: This Regulatory Agenda is a semiannual summary of all current 
and projected rulemakings and completed actions of the Small Business 
Administration (SBA). SBA expects that this summary information will 
enable the public to be more aware of, and effectively participate in, 
SBA's regulatory activity. SBA invites the public to submit comments on 
any aspect of this Agenda.

FOR FURTHER INFORMATION CONTACT: 

General

    Please direct general comments or inquiries to Imelda A. Kish, Law 
Librarian, U.S. Small Business Administration, 409 Third Street SW., 
Washington, DC 20416, (202) 205-6849, [email protected].

Specific

    Please direct specific comments and inquiries on individual 
regulatory activities identified in this Agenda to the individual 
listed in the summary of the regulation as the point of contact for 
that regulation.

SUPPLEMENTARY INFORMATION: SBA provides this notice under the 
requirements of the Regulatory Flexibility Act, 5 U.S.C. 601 to 612 and 
Executive Order 12866, ``Regulatory Planning and Review,'' which 
require each agency to publish a semiannual agenda of regulations. The 
Regulatory Agenda is a summary of all current and projected Agency 
rulemakings, as well as actions completed since the publication of the 
last Regulatory Agenda. SBA's last Semiannual Regulatory Agenda was 
published on December 15, 2015, at 80 FR 78039. The Semiannual Agenda 
of the SBA conforms to the Unified Agenda format developed by the 
Regulatory Information Service Center. The complete Unified Agenda will 
be available online at www.reginfo.gov in a format that greatly 
enhances a user's ability to obtain information about the rules in 
SBA's Agenda.
    The Regulatory Flexibility Act requires federal agencies to publish 
those regulatory actions that are likely to have a significant economic 
impact on a substantial number of small entities in their regulatory 
flexibility agendas in the Federal Register. SBA's Regulatory Agenda 
includes regulatory actions that are in the SBA's regulatory 
flexibility agenda. Publication of these entries is limited to fields 
that contain information required by the Regulatory Flexibility Act's 
Agenda requirements. Additional information on these entries is 
available in the Unified Agenda published on the Internet.

Maria Contreras-Sweet,
Administrator.

           Small Business Administration--Proposed Rule Stage
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
244.......................  Small Business Development         3245-AE05
                             Center Program Revisions.
245.......................  Miscellaneous Amendments           3245-AF85
                             to Surety Bond, 7(a), and
                             504 Regulations.
246.......................  Immediate, Expedited, and          3245-AF99
                             Private Disaster
                             Assistance Loan Programs.
247.......................  Office of Women Owned              3245-AG02
                             Business: Women's
                             Business Center Program.
248.......................  Small Business HUBZone             3245-AG38
                             Program; Government
                             Contracting Programs;
                             Office of Hearings and
                             Appeals.
249.......................  Record Disclosure and              3245-AG52
                             Privacy.
250.......................  Small Business Timber Set-         3245-AG69
                             Aside Program.
251.......................  Women-Owned Small Business         3245-AG75
                             and Economically
                             Disadvantaged Women-Owned
                             Small Business--
                             Certification.
------------------------------------------------------------------------


             Small Business Administration--Final Rule Stage
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
252.......................  Small Business Mentor              3245-AG24
                             Prot[eacute]g[eacute]
                             Programs.
253.......................  Agent Revocation and               3245-AG40
                             Suspension Procedures.
254.......................  Small Business Government          3245-AG58
                             Contracting and National
                             Defense Authorization Act
                             of 2013 Amendments.
255.......................  Small Business Investment          3245-AG66
                             Company (SBIC) Program--
                             Impact SBICs.
256.......................  Small Business Investment          3245-AG67
                             Companies; Passive
                             Business Expansion &
                             Technical Clarifications.
257.......................  Credit for Lower Tier              3245-AG71
                             Small Business
                             Subcontracting.
258.......................  Affiliation for Business           3245-AG73
                             Loan Programs and Surety
                             Bond Guarantee Program.
------------------------------------------------------------------------


            Small Business Administration--Long-Term Actions
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
259.......................  Small Business Size                3245-AG16
                             Standards; Alternative
                             Size Standard for 7(a),
                             504, and Disaster Loan
                             Programs.
------------------------------------------------------------------------


            Small Business Administration--Completed Actions
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
260.......................  Small Business Size                3245-AG49
                             Standards: Employee Based
                             Size Standards in
                             Wholesale Trade and
                             Retail Trade.
261.......................  Small Business Size                3245-AG50
                             Standards for
                             Manufacturing.

[[Page 37393]]

 
262.......................  Small Business Size                3245-AG51
                             Standards: Industries
                             With Employee Based Size
                             Standards Not Part of
                             Manufacturing, Wholesale
                             Trade, or Retail Trade.
263.......................  Small Business Size                3245-AG60
                             Standards: Inflation
                             Adjustment to Monetary
                             Based Size Standards.
264.......................  Surety Bond Guarantee              3245-AG70
                             Program; Miscellaneous
                             Amendments.
------------------------------------------------------------------------


SMALL BUSINESS ADMINISTRATION (SBA)

Proposed Rule Stage

244. Small Business Development Center Program Revisions

    Legal Authority: 15 U.S.C. 634(b)(6); 15 U.S.C. 648
    Abstract: Updates the SBDC program regulations by proposing to 
amend: (1) Procedures for approving applications for new Host SBDCs; 
(2) approval procedures for travel outside the continental U.S. and 
U.S. territories; (3) procedures and requirements regarding findings 
and disputes resulting from financial exams, programmatic reviews, 
accreditation reviews, and other SBA oversight activities; (4) 
requirements for new or renewal applications for SBDC grants, including 
the requirements for electronic submission through the approved 
electronic Government submission facility; (5) procedures regarding the 
determination to affect suspension, termination or non-renewal of an 
SBDC's cooperative agreement; and (6) provisions regarding the 
collection and use of the individual SBDC client data.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
ANPRM...............................   04/02/15  80 FR 17708
ANPRM Comment Period End............   06/01/15  .......................
NPRM................................   10/00/16  .......................
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Victoria Mundt, Acting Deputy Associate 
Administrator, Office of Small Business Development Centers, Small 
Business Administration, 409 Third Street SW., Washington, DC 20416, 
Phone: 202 205-7176, Email: [email protected].
    RIN: 3245-AE05

245. Miscellaneous Amendments to Surety Bond, 7(A), and 504 Regulations

    Legal Authority: 15 U.S.C. 636(a); 15 U.S.C. 694b
    Abstract: Certain lenders have been delegated the authority to make 
loan decisions without prior approval from SBA under certain 
circumstances. SBA plans to formalize such delegated authorities in 
this proposed rule. Several minor modifications to the 504 Loan Program 
and governance rules for Certified Development Company (CDC) are also 
proposed in a follow-on to the Final Rule: 504 and 7(a) Loan Program 
Updates (March 21, 2014), along with alignment of terminology for 7(a) 
lenders that are federally regulated to synchronize with existing 
industry requirements. SBA plans to propose several other miscellaneous 
amendments to improve oversight and operations of its finance programs.
    This rule proposes to make four changes to the Surety Bond 
Guarantee (SBG) Program. The first would change the threshold for 
notification to SBA of changes in the contract or bond amount. Second, 
the change would require sureties to submit quarterly contract 
completion reports. Third, SBA proposes to increase the eligible 
contract limit for the Quick Bond Application and Agreement from 
$250,000 to $400,000. Finally, SBA proposes to increase the guarantee 
percentage in the Preferred Surety Bond program to reflect the 
statutory change made by the National Defense Authorization Act of 
2016. The guarantee percentage will increase from 70% to 80% or 90%, 
depending on contract size and socioeconomic factors currently in 
effect in the Prior Approval Program.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   05/00/16
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Dianna L. Seaborn, Acting Director, Office of 
Financial Assistance, Small Business Administration, 409 Third Street 
SW., Washington, DC 20416, Phone: 202 205-3645, Email: 
[email protected].
    RIN: 3245-AF85

246. Immediate, Expedited, and Private Disaster Assistance Loan 
Programs

    Legal Authority: 15 U.S.C. 636(c); 15 U.S.C. 636j; 15 U.S.C. 657n
    Abstract: Through this advanced notice of proposed rulemaking, SBA 
solicited comments from potential lenders and the public on three 
guaranteed disaster loan programs: (1) The expedited disaster 
assistance program (EDAP), under which the SBA would guarantee short-
term loans of up to $150,000 made by private lenders to eligible small 
businesses located in a catastrophic disaster area; (2) the private 
disaster assistance program (PDAP), under which SBA would guarantee 
loans of up to $2 million made by private lenders to eligible small 
businesses and homeowners located in a catastrophic disaster area; and 
(3) the immediate disaster assistance program (IDAP), under which the 
SBA would guarantee interim loans of up to $25,000 made by private 
lenders to eligible small businesses, which would then be repaid with 
the proceeds of SBA direct disaster loans. SBA will seek input on what 
program features would be required for lenders to participate in these 
guaranteed disaster loan programs. SBA plans to use this feedback in 
drafting proposed rules for the EDAP and PDAP programs and in 
considering changes to the existing IDAP regulations.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
ANPRM...............................   10/21/15  80 FR 63715
ANPRM Comment Period End............   12/21/15
NPRM................................   09/00/16
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Dianna L. Seaborn, Acting Director, Office of 
Financial Assistance, Small Business Administration, 409 Third Street 
SW., Washington, DC 20416, Phone: 202 205-3645, Email: 
[email protected].
    RIN: 3245-AF99

247. Office of Women Owned Business: Women's Business Center Program

    Legal Authority: 15 U.S.C. 656
    Abstract: SBA's Office of Women's Business Ownership (OWBO) 
oversees a network of SBA-funded Women's Business Centers (WBCs) 
throughout the United States and its territories. WBCs provide 
management and technical assistance to small business concerns both 
nascent and established, with a focus on such businesses that are owned

[[Page 37394]]

and controlled by women, or on women planning to start a business, 
especially women who are economically or socially disadvantaged. The 
training and counseling provided by the WBCs encompass a comprehensive 
array of topics, such as finance, management and marketing in various 
languages. This rule would propose to codify the requirements and 
procedures that govern the delivery, funding and evaluation of the 
management and technical assistance provided under the WBC Program. The 
rule would address, among other things, the eligibility criteria for 
selection as a WBC, use of Federal funds, standards for effectively 
carrying out program duties and responsibilities, and the requirements 
for reporting on financial and programmatic performance.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
ANPRM...............................   04/22/15  80 FR 22434
ANPRM Comment Period End............   06/22/15
NPRM................................   09/00/16
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Bruce D. Purdy, Deputy Assistant Administrator, 
Office of Women's Business Ownership, Small Business Administration, 
Washington, DC 20416, Phone: 202 205-7532, Email: [email protected].
    RIN: 3245-AG02

248. Small Business Hubzone Program; Government Contracting Programs; 
Office of Hearings and Appeals

    Legal Authority: 15 U.S.C. 657a
    Abstract: SBA has been reviewing its processes and procedures for 
implementing the HUBZone program and has determined that several of the 
regulations governing the program should be amended in order to resolve 
certain issues that have arisen. As a result, the proposed rule would 
constitute a comprehensive revision of part 126 of SBA's regulations to 
clarify current HUBZone Program regulations, and implement various new 
procedures. The amendments will make it easier for participants to 
comply with the program requirements and enable them to maximize the 
benefits afforded by participation. In developing this proposed rule, 
SBA will focus on the principles of Executive Order 13563 to determine 
whether portions of regulations should be modified, streamlined, 
expanded or repealed to make the HUBZone program more effective and/or 
less burdensome on small business concerns. At the same time, SBA will 
maintain a framework that helps identify and reduce waste, fraud, and 
abuse in the program.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   10/00/16  .......................
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Mariana Pardo, Director, Office of HUBZone, Small 
Business Administration, 409 3rd Street SW., Washington, DC 20416, 
Phone: 202 205-2985, Email: [email protected].
    RIN: 3245-AG38

249. Record Disclosure and Privacy

    Legal Authority: 5 U.S.C. 301, 552 and 552(a); 31 U.S.C. 9701; 44 
U.S.C. 3501 et seq.; E.O. 12600; 52 FR 23781
    Abstract: SBA proposes to amend its Record Disclosure and Privacy 
regulations to implement the Openness Promotes Effectiveness in our 
National Government Act. The amendments, among other things, will 
update the Agency's Freedom of Information Act regulations to adjust 
the time for the public to submit an appeal of SBA's decision regarding 
a request for information, correct an obsolete address and provide 
applicable Web site addresses, and clarify the definition of news media 
for purposes of assessing processing fees.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   11/00/16
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Laura Magere, Director, Freedom of Information Act 
Office, Small Business Administration, 409 Third Street SW., 
Washington, DC 20416, Phone: 202 205-6837, Email: [email protected].
    RIN: 3245-AG52

250. Small Business Timber Set-Aside Program

    Legal Authority: 15 U.S.C. 631; 15 U.S.C. 644(a)
    Abstract: The U.S. Small Business Administration (SBA or Agency) is 
proposing to amend its Small Business Timber Set-Aside Program (the 
Program) regulations. The Small Business Timber Set-Aside Program is 
rooted in the Small Business Act, which tasked SBA with ensuring that 
small businesses receive a fair proportion of the total sales of 
government property. Accordingly, the Program requires Timber sales to 
be set aside for small business when small business participation falls 
below a certain amount. SBA is considering comments received during the 
ANPRM process, including on issues such as, but not limited to, whether 
the saw timber volume purchased through stewardship timber contracts 
should be included in calculations, and whether the appraisal point 
used in set-aside sales should be the nearest small business mill. In 
addition, SBA is considering data from the timber industry to help 
evaluate the current program and economic impact of potential changes.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
ANPRM...............................   03/25/15  80 FR 15697
ANPRM Comment Period End............   05/26/15
NPRM................................   06/00/16
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: David W. Loines, Area Director, Office of 
Government Contracting, Small Business Administration, 409 Third Street 
SW., Washington, DC 20416, Phone: 202 205-7311, Email: 
[email protected].
    RIN: 3245-AG69

251. Women-Owned Small Business and Economically Disadvantaged Women-
Owned Small Business--Certification

    Legal Authority: Pub. L. 113-291, sec 825; 15 U.S.C. 637(m)
    Abstract: Section 825 of the National Defense Authorization Act for 
Fiscal Year 2015 (NDAA), Public Law 113-291, 128 Stat. 3292, Dec. 19, 
2014, included language requiring that women-owned small business 
concerns and economically disadvantaged women-owned small business 
concerns are certified by a Federal agency, a State government, the 
Administrator, or national certifying entity approved by the 
Administrator as a small business concern owned and controlled by 
women. SBA is issuing this Advance Notice of Proposed Rulemaking to get 
public feedback on how best to implement this statutory provision. SBA 
intends to request information on whether SBA should: Create its own 
certification program, rely on private certifiers, allow Federal 
agencies to create their own certification systems, or create a hybrid 
system. SBA also intends to request information from the public 
concerning State government certification programs.
    Timetable:

[[Page 37395]]



------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
ANPRM...............................   12/18/15  80 FR 78984
ANPRM Comment Period End............   02/16/16
NPRM................................   10/00/16
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Kenneth Dodds, Director, Office of Government 
Contracting, Small Business Administration, 409 3rd Street SW., 
Washington, DC 20416, Phone: 202 619-1766, Fax: 202 481-2950, Email: 
[email protected].
    RIN: 3245-AG75

SMALL BUSINESS ADMINISTRATION (SBA)

Final Rule Stage

252. Small Business Mentor Prot[eacute]g[eacute] Programs

    Legal Authority: Pub. L. 111-240; sec 1347; 15 U.S.C. 657r
    Abstract: The U.S. Small Business Administration (SBA or Agency) is 
amending its regulations to implement provisions of the Small Business 
Jobs Act of 2010 and the National Defense Authorization Act for Fiscal 
Year 2013. Based on authorities provided in these two statutes, the 
rule will establish a Government-wide mentor-prot[eacute]g[eacute] 
program for all small business concerns, consistent with SBA's mentor-
prot[eacute]g[eacute] program for Participants in SBA's 8(a) Business 
Development (BD) program. The rule will also make minor changes to the 
mentor-prot[eacute]g[eacute] provisions for the 8(a) Business 
Development program in order to make the mentor-prot[eacute]g[eacute] 
rules for each of the programs as consistent as possible. The rule will 
amend the current joint venture provisions to clarify the conditions 
for creating and operating joint venture partnerships, including the 
effect of such partnerships on any mentor-prot[eacute]g[eacute] 
relationships. Finally, the rule will make several additional changes 
to current size, 8(a) Office of Hearings and Appeals or HUBZone 
regulations, concerning among other things, ownership and control, 
changes in primary industry, standards of review and interested party 
status for some appeals.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   02/05/15  80 FR 6618
NPRM Comment Period End.............   04/06/15
NPRM Comment Period Extension.......   04/07/15  80 FR 18556
NPRM Comment Period End.............   05/06/15
Final Rule..........................   06/00/16
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Brenda J. Fernandez, Procurement Analyst, Small 
Business Administration, 409 Third Street SW., Washington, DC 20416, 
Phone: 202 205-7337, Email: [email protected].
    RIN: 3245-AG24

253. Agent Revocation and Suspension Procedures

    Legal Authority: 15 U.S.C. 634; 15 U.S.C. 642
    Abstract: This rule establishes detailed procedures for the 
suspension and revocation of an Agent's privilege to do business with 
the United States Small Business Administration (SBA) within a single 
Part of the Code of Federal Regulations; removes 8(a) program specific 
procedures for Agent suspension and revocation; clarifies existing and 
related regulations as to suspension, revocation, and debarment; and 
removes Office of Hearings and Appeals jurisdiction over Agent 
suspensions and revocations and government-wide debarment and 
suspension actions. This rule will also conform SBA suspension and 
revocation procedures for Agents with general government-wide 
nonprocurement suspension and debarment procedures.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   10/16/14  79 FR 62060
NPRM Comment Period Extended........   12/12/14  79 FR 73853
NPRM Comment Period End.............   12/15/14
Second NPRM Comment Period End......   02/14/15
Final Rule..........................   10/00/16
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Debra Mayer, Chief, Supervision and Enforcement, 
Office of Credit Risk Management, Small Business Administration, 409 
Third Street SW., Washington, DC 20416, Phone: 202 205-7577, Email: 
[email protected].
    RIN: 3245-AG40

254. Small Business Government Contracting and National Defense 
Authorization Act of 2013 Amendments

    Legal Authority: 15 U.S.C. 631; Pub. L. 112-239
    Abstract: The U.S. Small Business Administration (SBA or Agency) is 
amending its regulations to implement provisions of the National 
Defense Authorization Act of 2013, which pertain to performance 
requirements applicable to small business and socioeconomic program set 
aside contracts and small business subcontracting. SBA will make 
changes to its regulations concerning the nonmanufacturer rule and 
affiliation rules. Further, SBA will allow a joint venture to qualify 
as small for any government procurement as long as each partner to the 
joint venture qualifies individually as small under the size standard 
corresponding to the NAICS code assigned in the solicitation.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   12/29/14  79 FR 77955
NPRM Comment Period End.............   02/27/15
NPRM Comment Period Reopened........   03/09/15  80 FR 12353
Second NPRM Comment Period End......   04/06/15
Final Rule..........................   05/00/16
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Brenda J. Fernandez, Procurement Analyst, Small 
Business Administration, 409 Third Street SW., Washington, DC 20416, 
Phone: 202 205-7337, Email: [email protected].
    RIN: 3245-AG58

255. Small Business Investment Company (SBIC) Program--Impact SBICS

    Legal Authority: 15 U.S.C. 681
    Abstract: This rule establishes a regulatory structure for the SBIC 
Programs Impact Investment Fund, which is currently being implemented 
through a policy memorandum to interested applicants. The rule 
establishes in the regulations a new type of SBIC license called the 
Impact SBIC license and will include application and examination fee 
considerations to incentivize Impact Investment Fund participation. 
Impact SBICs may also be able to access Early Stage leverage on the 
same terms as Early Stage SBICs without applying through the Early 
Stage call process defined in 107.310. This will allow Impact SBICs 
with early stage strategies to apply for the program. The new license 
will be available to investment funds that meet the SBIC Programs 
licensing qualifications and commit to invest at least 50 percent of 
their invested capital in impact

[[Page 37396]]

investments as defined in the rule. The rule would also outline 
reporting and performance measures for licensed funds to maintain 
Impact Investment Fund designation. The goal of the Impact Investment 
Fund is to support small business investment strategies that maximize 
financial returns while also yielding enhanced social environmental or 
economic impacts as part of the SBIC Programs overall effort to 
supplement the flow of private equity and long-term loan funds to small 
businesses whose capital needs are not being met.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   02/03/16  81 FR 5666
NPRM Comment Period End.............   03/04/16
Final Rule..........................   09/00/16
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Nate T. Yohannes, Senior Advisor, Office of 
Investments, Small Business Administration, 409 Third Street SW., 
Washington, DC 20416, Phone: 202 205-6714, Email: 
[email protected].
    RIN: 3245-AG66

256. Small Business Investment Companies; Passive Business Expansion 
and Technical Clarifications

    Legal Authority: 15 U.S.C. 681 et seq.
    Abstract: The SBA is revising the regulations for the Small 
Business Investment Company (SBIC) program to further expand the use of 
Passive Businesses and provide needed protections for SBA with regard 
to such investments. SBICs are generally prohibited from investing in 
passive businesses under the Small Business Investment Act of 1958 as 
amended as well as by regulations. Current program regulations provided 
for two exceptions that allow an SBIC to structure an investment 
utilizing a passive small business as a pass-through. The first 
exception identified in 107.720(b)(2) provides that an SBIC may 
structure an investment utilizing two pass-through entities to make an 
investment into an active business. The second exception identified in 
107.720(b)(3) allows partnership SBICs with SBA prior approval to 
invest in a wholly owned passive business that in turn provides 
financing to an active small business only if a direct financing would 
cause its investors to incur Unrelated Business Taxable Income (UBTI). 
The second exception is commonly known as a blocker corporation. The 
current rule creates unnecessary complications in defining two 
exceptions and does not provide SBA with sufficient protections. SBA is 
simplifying the rule to allow a more flexible two pass-through entity 
structure but provides SBA certain protections to offset risks 
associated with passive investment structures. As part of the rule, SBA 
will also make technical corrections and clarifications, including 
conforming the regulation to the new ``family of funds'' statutory 
provision.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   10/05/15  80 FR 60077
NPRM Comment Period End.............   12/04/15
Final Rule..........................   05/00/16
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Theresa M. Jamerson, Senior Policy Advisor, 
Investment Division, Small Business Administration, 409 3rd Street SW., 
Washington, DC 20461, Phone: 202 205-7563, Email: 
[email protected].
    RIN: 3245-AG67

257. Credit for Lower Tier Small Business Subcontracting

    Legal Authority: Pub. L. 113-66, sec 1614
    Abstract: The U.S. Small Business Administration (SBA or Agency) is 
amending its regulations to implement Section 1614 of the National 
Defense Authorization Act (NDAA) of 2014, Public Law 113-66, December 
26, 2013. Under the statute, when an other than small prime contractor 
has an individual subcontracting plan for a contract, the large 
business may receive credit towards its small business subcontracting 
goals for subcontract awards made to small business concerns at any 
tier. Currently, other than small business prime contractors only 
report on their performance awarding subcontracts to small businesses 
at the first tier level.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   10/06/15  80 FR 60300
NPRM Comment Period End.............   12/07/15
Final Rule..........................   09/00/16
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Kenneth Dodds, Director, Office of Government 
Contracting, Small Business Administration, 409 3rd Street SW., 
Washington, DC 20416, Phone: 202 619-1766, Fax: 202 481-2950, Email: 
[email protected].
    RIN: 3245-AG71

258. Affiliation for Business Loan Programs and Surety Bond Guarantee 
Program

    Legal Authority: 15 U.S.C. 634(b)(6)
    Abstract: The U.S. Small Business Administration (SBA) has 
determined that changing conditions in the American economy and a 
constantly evolving small business community compel it to seek ways to 
improve program efficiency for its Surety Bond Guarantee (SBG) Program, 
and the business loan programs consisting of the 7(a) Loan Program, the 
Business Disaster Loan Programs (the Economic Injury Disaster Loans, 
Reservist Injury Disaster Loans, Physical Disaster Business Loans, 
Immediate Disaster Assistance Program loans), the Microloan Program, 
and the Development Company Program (the 504 Loan Program). As a 
result, SBA is simplifying guidelines for determining affiliation for 
eligibility based on size as it relates to these programs. This rule 
would redefine affiliation for all five Programs, thereby simplifying 
eligibility determinations.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   10/02/15  80 FR 59667
NPRM Comment Period End.............   12/01/15
Final Rule..........................   07/00/16
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Dianna L. Seaborn, Acting Director, Office of 
Financial Assistance, Small Business Administration, 409 Third Street 
SW., Washington, DC 20416, Phone: 202 205-3645, Email: 
[email protected].
    RIN: 3245-AG73

SMALL BUSINESS ADMINISTRATION (SBA)

Long-Term Actions

259. Small Business Size Standards; Alternative Size Standard for 7(a), 
504, and Disaster Loan Programs

    Legal Authority: Pub. L. 111-240, sec 1116
    Abstract: SBA will amend its size eligibility criteria for Business 
Loans, certified development company (CDC) loans under title V of the 
Small Business Investment Act (504) and economic injury disaster loans 
(EIDL). For the SBA 7(a) Business Loan Program and the 504 program, the 
amendments will provide an alternative size standard

[[Page 37397]]

for loan applicants that do not meet the small business size standards 
for their industries. The Small Business Jobs Act of 2010 (Jobs Act) 
established alternative size standards that apply to both of these 
programs until SBA's Administrator establishes other alternative size 
standards. For the disaster loan program, the amendments will provide 
an alternative size standard for loan applicants that do not meet the 
Small Business Size Standard for their industries. These alternative 
size standards do not affect other Federal Government programs, 
including Federal procurement.
    Timetable:

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               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................           To Be Determined
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Khem Raj Sharma, Phone: 202 205-7189, Fax: 202 205-
6390, Email: [email protected].
    RIN: 3245-AG16

SMALL BUSINESS ADMINISTRATION (SBA)

Completed Actions

260. Small Business Size Standards: Employee Based Size Standards in 
Wholesale Trade and Retail Trade

    Legal Authority: 15 U.S.C. 632(a)
    Abstract: The U.S. Small Business Administration (SBA) published a 
rule to increase employee based size standards in 46 industries in 
North American Industry Classification System (NAICS) Sector 42, 
Wholesale Trade, and in one industry in Sector 44-45, Retail Trade. As 
a part of its comprehensive size standards review required by the Small 
Business Jobs Act of 2012, SBA reviewed all 71 industries in Sector 42 
and two industries with employee based size standards in Sector 44-45 
to determine whether their size standards should be retained or 
revised. The revisions primarily affect eligibility for SBA's financial 
assistance programs. This is one of the rules that will examine 
industries grouped by an NAICS Sector. SBA has applied its ``Size 
Standards Methodology,'' which is available on its Web site at http://www.sba.gov/size, to this purposed rule. SBA expects to publish the 
final rule in the near future.
    NOTE: The title for this rule has been changed since the rule was 
first reported in the Regulatory Agenda on January 8, 2013, from 
``Small Business Size Standards for Wholesale Trade'' to ``Small 
Business Size Standards: Employee Based Size Standards for Wholesale 
Trade and Retail Trade.'' The title was changed to make it clear that 
the rule also addresses industries with employee based size standards 
in Retail Trade.
    Completed:

------------------------------------------------------------------------
               Reason                    Date            FR Cite
------------------------------------------------------------------------
Final Rule..........................   01/25/16  81 FR 3941
Final Rule Effective................   02/26/16
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Khem Raj Sharma, Phone: 202 205-7189, Fax: 202 205-
6390, Email: [email protected].
    RIN: 3245-AG49

261. Small Business Size Standards for Manufacturing

    Legal Authority: 15 U.S.C. 632(a)
    Abstract: This rule increases employee based size standards for 209 
industries in North American Industry Classification System (NAICS) 
Section 31-33, Manufacturing. SBA also increases the refining capacity 
component of the Petroleum Refiners (NAICS 324110) size standard to 
200,000 barrels per calendar day total capacity for businesses that are 
primarily engaged in petroleum refining. The rule also eliminates the 
requirement that 90 percent of a refiner's output being delivered 
should be refined by the bidder. As a part of its comprehensive size 
standards review required by the Small Business Jobs Act of 2010, SBA 
evaluated all 364 industries in NAICS Sector 31-33 to determine whether 
their size standards should be retained or revised. This is one of the 
rules that examined industries grouped by an NAICS Sector. SBA has 
applied its ``Size Standards Methodology,'' which is available on its 
Web site at http://www.sba.gov/size, to this proposed rule.
    Completed:

------------------------------------------------------------------------
               Reason                    Date            FR Cite
------------------------------------------------------------------------
Final Rule..........................   01/26/16  81 FR 4469
Final Rule Effective................   02/26/16
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Khem Raj Sharma, Phone: 202 205-7189, Fax: 202 205-
6390, Email: [email protected].
    RIN: 3245-AG50

262. Small Business Size Standards: Industries With Employee Based Size 
Standards Not Part of Manufacturing, Wholesale Trade, or Retail Trade

    Legal Authority: 15 U.S.C. 632(a)
    Abstract: This rule increases the employee-based size standards for 
30 industries and three exceptions and decrease them for three 
industries that are not a part of NAICS Sector 31-33 (Manufacturing) 
Sector 42 (Wholesale Trade) and Sector 44-45 (Retail Trade). 
Additionally, SBA proposes to remove the Information Technology Value 
Added Resellers exception under NAICS 541519 (Other Computer Related 
Services) together with its 150-employee size standard. Similarly, SBA 
proposes to eliminate the Offshore Marine Air Transportation Services 
exception under NAICS 481211 and 481212 and Offshore Marine Services 
exception under NAICS Subsector 483 and their $30.5 million receipts 
based size standard. As part of its comprehensive size standards review 
required by the Small Business Jobs Act of 2010 SBA evaluated 57 
industries and five exceptions with employee based size standards that 
are not in NAICS Sectors 31-33 42 or 4445. This is one of the rules 
that examined industries grouped by an NAICS Sector. SBA has applied 
its Size Standards Methodology, which is available on its Web site at 
http://www.sba.gov/size to this proposed rule.
    Please Note: The title for this rule has been changed since it was 
first announced in the Regulatory Agenda on January 8, 2013 to add the 
words or Retail Trade at the end of the previous title. This change 
makes it clear that industries in the retail trade with employee based 
size standards are also not addressed in the rule.
    Completed:

------------------------------------------------------------------------
               Reason                    Date            FR Cite
------------------------------------------------------------------------
Final Rule..........................   01/26/16  81 FR 4436
Final Rule Effective................   02/26/16
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Khem Raj Sharma, Phone: 202 205-7189, Fax: 202 205-
6390, Email: [email protected].
    RIN: 3245-AG51

263. Small Business Size Standards: Inflation Adjustment to Monetary 
Based Size Standards

    Legal Authority: 15 U.S.C. 632(a)
    Abstract: SBA issued a final rule with to adjust its monetary small 
business size standards (i.e., receipts, net income, net worth, and 
financial assets), for the effects of inflation that have occurred

[[Page 37398]]

since the last inflation adjustment. The final rule aims to restore 
small business eligibility to businesses that have lost their small 
business status due to inflation. The Small Business Jobs Act of 2010 
(Jobs Act) requires SBA to review and adjust (as necessary) all size 
standards within five years of its enactment. SBA's Small Business Size 
Regulations at 13 CFR 121.102(c) require the same quinquennial (or 
less) review and adjustment. The rule did not increase the $750,000 
size standard for agricultural enterprises, which is established by the 
Small Business Act (Sec.  3(a)(1)). The alternate size standard used in 
the 7(a) and 504 business loan programs is unaffected by this 
adjustment.
    Completed:

------------------------------------------------------------------------
               Reason                    Date            FR Cite
------------------------------------------------------------------------
Final Rule..........................   01/25/16  81 FR 3949
Final Rule Effective................   01/25/16
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Khem Raj Sharma, Phone: 202 205-7189, Fax: 202 205-
6390, Email: [email protected].
    RIN: 3245-AG60

264. Surety Bond Guarantee Program; Miscellaneous Amendments

    Legal Authority: 15 U.S.C. 694b
    Abstract: This rule will change the regulations for SBA's Surety 
Bond Guarantee Program in four areas. First, as a condition for 
participating in the Prior Approval and Preferred Programs, the rule 
will clarify that a Surety must directly employ underwriting and claims 
staffs sufficient to perform and manage these functions, and final 
settlement authority for claims and recovery is vested only in salaried 
employees of the Surety. Second, the rule will provide that all costs 
incurred by the Surety's salaried claims staff are ineligible for 
reimbursement by SBA, but the Surety may seek reimbursement for amounts 
paid for specialized services that are provided by outside consultants 
in connection with the processing of a claim. Third, the rule will 
modify the criteria for determining when a Principal that caused a Loss 
to SBA is ineligible for a bond guaranteed by SBA. Fourth, the rule 
will modify the criteria for admitting Sureties to the Preferred Surety 
Bond Guarantee Program by increasing the Surety's underwriting 
limitation, as certified by the U.S. Treasury Department on its list of 
acceptable sureties, from at least $2 million to at least $6.5 million.
    Completed:

------------------------------------------------------------------------
               Reason                    Date            FR Cite
------------------------------------------------------------------------
Final Rule..........................   04/22/16  81 FR 23563
Final Rule Effective................   05/23/16
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Barbara J. Brannan, Phone: 202 205-6545, Email: 
[email protected].
    RIN: 3245-AG70

[FR Doc. 2016-12927 Filed 6-8-16; 8:45 am]
 BILLING CODE 8025-01-P