[Federal Register Volume 82, Number 163 (Thursday, August 24, 2017)]
[Proposed Rules]
[Pages 40361-40366]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-17029]



[[Page 40361]]

Vol. 82

Thursday,

No. 163

August 24, 2017

Part XIX





Small Business Administration





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Semiannual Regulatory Agenda

  Federal Register / Vol. 82 , No. 163 / Thursday, August 24, 2017 / 
Unified Agenda  

[[Page 40362]]


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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 current and 
projected regulatory and deregulatory actions 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 and deregulatory activities. 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 is fully committed to implementing the 
Administration's regulatory reform policies, as established by 
Executive Order 13771, Reducing Regulation and Controlling Regulatory 
Costs (January 30, 2017) and Executive Order 13777, Enforcing the 
Regulatory Reform Agenda (February 24, 2017). In order to fully 
implement the goal of these executive orders, SBA seeks feedback from 
the public in identifying any SBA regulations that affected parties 
believe impose unnecessary burdens or costs that exceed their benefits; 
eliminate jobs or inhibit job creation; or are ineffective or outdated.
    Publication in the Federal Register is mandated for rules that, 
under the Regulatory Flexibility Act (5 U.S.C. 602), are likely to have 
a significant economic impact on a substantial number of small 
entities. Additional information on these rules is included in the 
complete Regulatory Agenda, which is available online at 
www.reginfo.gov in a format that greatly enhances the public's ability 
to obtain information about SBA's rules.

Linda E. McMahon,
Administrator.

           Small Business Administration--Proposed Rule Stage
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
204.......................  Small Business Development         3245-AE05
                             Center Program Revisions.
205.......................  Small Business HUBZone             3245-AG38
                             Program; Government
                             Contracting Programs;
                             Office of Hearings and
                             Appeals.
206.......................  Women-Owned Small Business         3245-AG75
                             and Economically
                             Disadvantaged Women-Owned
                             Small Business--
                             Certification.
207.......................  Ownership and Control of           3245-AG85
                             Service-Disabled Veteran-
                             Owned Small Business
                             Concerns.
208.......................  Small Business Government          3245-AG86
                             Contracting and National
                             Defense Authorization
                             Acts of 2016 and 2017
                             Amendments.
------------------------------------------------------------------------


             Small Business Administration--Final Rule Stage
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
209.......................  Miscellaneous Amendments           3245-AF85
                             to Business Loan Programs
                             and Surety Bond Guarantee
                             Program.
210.......................  Agent Revocation and               3245-AG40
                             Suspension Procedures.
211.......................  Small Business Investment          3245-AG67
                             Companies; Passive
                             Business Expansion &
                             Technical Clarifications.
212.......................  Small Business Timber Set-         3245-AG69
                             Aside Program.
------------------------------------------------------------------------


            Small Business Administration--Long-Term Actions
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
213.......................  Small Business Size                3245-AG16
                             Standards; Alternative
                             Size Standard for 7(a),
                             504, and Disaster Loan
                             Programs.
214.......................  Disaster Loan Programs;            3245-AG77
                             Federal Flood Risk
                             Management Standard.
------------------------------------------------------------------------


            Small Business Administration--Completed Actions
------------------------------------------------------------------------
                                                           Regulation
       Sequence No.                    Title             Identifier No.
------------------------------------------------------------------------
215.......................  Credit for Lower Tier              3245-AG71
                             Small Business
                             Subcontracting.
------------------------------------------------------------------------


[[Page 40363]]

SMALL BUSINESS ADMINISTRATION (SBA)

Proposed Rule Stage

204. Small Business Development Center Program Revisions

    Legal Authority: 15 U.S.C. 634(b)(6); 15 U.S.C. 648
    Abstract: Updates the Small Business Development Center (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................................   08/00/17  .......................
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Adriana Menchaca-Gendron, Associate Administrator 
for Small Business Development Centers, Small Business Administration, 
409 3rd Street SW., Washington, DC 20416, Phone: 202 205-6988.
    RIN: 3245-AE05

205. 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 Orders 12866, 13771 and 
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................................   09/00/17  .......................
------------------------------------------------------------------------

    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

206. 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. This rule will propose the standards and procedures for 
participation in this certification program, including procedures 
governing certifications issued by SBA and third parties. This rule 
will also propose to revise the procedures for continuing eligibility, 
program examinations, protest and appeals. The proposed revisions will 
reflect public comments that SBA received in response to the Advanced 
Notice of Proposed Rulemaking that the agency issued in December 2016 
to solicit feedback on implementation of the program. Finally, SBA is 
planning to continue to utilize new technology to improve its 
efficiency and decrease small business burdens, and therefore, the new 
certification procedures will be based on an electronic application and 
certification process.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
ANPRM...............................   12/18/15  80 FR 78984
ANPRM Comment Period End............   02/16/16  .......................
NPRM................................   09/00/17  .......................
------------------------------------------------------------------------

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

207.  Ownership and Control of Service-Disabled Veteran-Owned 
Small Business Concerns

    Legal Authority: Pub. L. 114-328, sec. 1832, 1835
    Abstract: Section 1832 of the National Defense Authorization Act 
for Fiscal Year 2017 (NDAA), Public Law 114-328, Dec. 23, 2016, 
provides for a government-wide, uniform definition of a small business 
concern owned and controlled by a service-disabled veteran. Section 
1835 requires the Small Business Administration (SBA) and the 
Department of Veterans Affairs (VA) to issue guidance, not later than 
180 days after the date of enactment of the NDAA of 2017. The proposed 
rule will propose to amend SBA's regulations to create a uniform 
definition of a small business owned and controlled by a service-
disabled veteran to be used for purposes of eligibility for government 
procurements by agencies other than the VA under the authority of 15 
U.S.C. 657f, and by the VA for VA procurements in accordance with 38 
U.S.C. 8127. These changes will include addressing ownership by an 
employee stock ownership plan (ESOP) and ownership and control by a 
surviving spouse. Section 1835 provides that the SBA and VA shall 
provide notice and opportunity for comment for at least 60 days.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   06/00/17  .......................
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Kenneth Dodds, Director, Office of Policy, Planning 
and Liaison, Small Business Administration, 409 3rd Street SW., 
Washington, DC 20416, Phone: 202 619-1766, Fax: 202

[[Page 40364]]

481-2950, Email: [email protected].
    RIN: 3245-AG85

208.  Small Business Government Contracting and National 
Defense Authorization Acts of 2016 and 2017 Amendments

    Legal Authority: 15 U.S.C. 637(d)(17); Pub. L. 114-328, sec. 1811, 
1821; Pub. L. 114-92, sec. 863
    Abstract: Section 1822 of the National Defense Authorization Act 
(NDAA) for Fiscal Year 2017, Public Law 114-328, Dec. 23, 2016, 
establishes a pilot program for qualified subcontractors to obtain past 
performance ratings that can be used to compete for prime contracts. 
Section 1811 of the NDAA of 2017 also limits the scope of review of 
Procurement Center Representatives for certain Department of Defense 
procurements performed outside of the United States. Section 1821 of 
the NDAA of 2017 establishes that failure to act in good faith in 
providing timely subcontracting reports shall be considered a material 
breach of the contract. Section 863 of the NDAA for FY 2016, Public Law 
114-92, Nov. 25, 2015, establishes procedures for the publication of 
acquisition strategies if the acquisition involves consolidation or 
substantial bundling. SBA also intends to request comment on various 
proposed changes requested by industry or other agencies, including 
those pertaining to exclusions from calculating compliance with the 
limitations on subcontracting, an agency's ability to set aside orders 
under set-aside contracts, and a contracting officer's authority to 
request reports on a prime contractor's compliance with the limitations 
on subcontracting.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   09/00/17  .......................
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Kenneth Dodds, Director, Office of Policy, Planning 
and Liaison, Small Business Administration, 409 3rd Street SW., 
Washington, DC 20416, Phone: 202 619-1766, Fax: 202 481-2950, Email: 
[email protected].
    RIN: 3245-AG86

Small Business Administration (SBA)

Final Rule Stage

209. Miscellaneous Amendments to Business Loan Programs and Surety Bond 
Guarantee Program

    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. The rule will make several minor modifications to 
the 504 Loan Program and governance rules for Certified Development 
Company (CDC) in a follow-on to the Final Rule: 504 and 7(a) Loan 
Program Updates (March 21, 2014). The rule will also align terminology 
for 7(a) lenders that are federally regulated to synchronize with 
existing industry requirements. SBA will also make several other 
miscellaneous amendments to improve oversight and operations of its 
finance programs.
    This rule will make four changes to the Surety Bond Guarantee (SBG) 
Program. The first changes the threshold for notification to SBA of 
changes in the contract or bond amount. Second, the change will require 
sureties to submit quarterly contract completion reports. Third, SBA 
will increase the eligible contract limit for the Quick Bond 
Application and Agreement from $250,000 to $400,000. Finally, the rule 
will 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................................   08/09/16  81 FR 52595
NPRM Comment Period End.............   10/11/16  .......................
Final Rule..........................   08/00/17  .......................
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Dianna L. Seaborn, 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

210. 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; 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  .......................
NPRM Comment Period Extended End....   02/14/15  .......................
Final Rule..........................   12/00/17  .......................
------------------------------------------------------------------------

    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

211. 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

[[Page 40365]]

exception is commonly known as a blocker corporation. The rule 
clarifies the first exception and further expands the second exception, 
while providing additional protection to SBA from the risk posed by 
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..........................   12/28/16  81 FR 95419
Final Rule Effective................   01/27/17  .......................
Delay of Effective Date Opportunity    01/26/17  82 FR 8499
 for Public Comment.
Comment Period End..................   02/19/17  .......................
Final Rule Effective................   03/21/17  .......................
Delay of Effective Date.............   03/21/17  82 FR 14428
Final Rule Effective................   05/20/17  .......................
Delay of Effective Date and Request    05/02/17  82 FR 20433
 for Comment.
Comment Period End..................   06/01/17  .......................
Final Rule Effective................   08/18/17  .......................
Final Rule..........................   08/00/17  .......................
------------------------------------------------------------------------

    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

212. 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 
amending 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 considered comments received during the ANPRM and 
NPRM processes, 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................................   09/27/16  81 FR 66199
NPRM Comment Period End.............   11/28/16  .......................
Final Rule..........................   09/00/17  .......................
------------------------------------------------------------------------

    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

SMALL BUSINESS ADMINISTRATION (SBA)

Long-Term Actions

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

    Legal Authority: 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 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:

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

214. Disaster Loan Programs; Federal Flood Risk Management Standard

    Legal Authority: 15 U.S.C. 634(b)(6); E.O. 11988; E.O. 13690
    Abstract: In accordance with Executive Order 11988, Floodplain 
Management, as amended by Executive Order 13690, Establishing a Federal 
Flood Risk Management Standard and a Process for Further Soliciting and 
Considering Stakeholder Input, SBA will propose a rule to describe 
which disaster loans are subject to the FFRMS. SBA will propose to 
apply the FFRMS and corresponding elevation component to disaster loans 
that meet one of the following conditions: (1) SBA funds will be used 
for total real estate reconstruction at the damaged site that is 
located in the Special Flood Hazard Area (SFHA); (2) SBA funds will be 
used for new real estate construction at a relocation site that is 
located in the SFHA; or (3) SBA funds will be used for code required 
elevation at the damaged site that is located in the SFHA.
    Timetable:

------------------------------------------------------------------------
               Action                    Date            FR Cite
------------------------------------------------------------------------
NPRM................................   08/00/18
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Alejandro Contreras, Phone: 202 205-6674, Email: 
[email protected].
    RIN: 3245-AG77

SMALL BUSINESS ADMINISTRATION (SBA)

Completed Actions

215. 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

[[Page 40366]]

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.
    Completed:

------------------------------------------------------------------------
               Reason                    Date            FR Cite
------------------------------------------------------------------------
Final Rule..........................   12/23/16  81 FR 94246
Final Rule Effective................   01/23/17
------------------------------------------------------------------------

    Regulatory Flexibility Analysis Required: Yes.
    Agency Contact: Kenneth Dodds, Phone: 202 619-1766, Fax: 202 481-
2950, Email: [email protected].
    RIN: 3245-AG71

[FR Doc. 2017-17029 Filed 8-23-17; 8:45 am]
BILLING CODE 8025-01-P