[Federal Register Volume 85, Number 30 (Thursday, February 13, 2020)]
[Notices]
[Pages 8331-8332]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02869]


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SMALL BUSINESS ADMINISTRATION


Data Collection Available for Public Comments

ACTION: 60-day notice and request for comments.

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SUMMARY: The Small Business Administration (``SBA'') intends to request 
approval from the Office of Management and Budget (``OMB'') for the 
collection of information authorized under OMB Control Number 3245-
0071. The Paperwork Reduction Act (``PRA'') requires federal agencies 
to publish a notice in the Federal Register concerning each proposed 
collection of information before submission to OMB, and to allow 60 
days for public comment in response to the notice.

DATES: Submit comments on or before April 13, 2020.

ADDRESSES: Send all comments to Mary Frias, Loan Specialist, Office of 
Financial Assistance, Small Business Administration, 409 3rd Street, 
8th Floor, Washington, DC 20416.

FOR FURTHER INFORMATION CONTACT: Mary Frias, Loan Specialist, Office of 
Financial Assistance, (202) 401-8234, [email protected], or Curtis B. 
Rich, Management Analyst, (202) 205-7030, [email protected].

SUPPLEMENTARY INFORMATION: The 504 Loan Program is an SBA financing 
program authorized under Title V of the Small Business Investment Act 
of 1958, 15 U.S.C. 695 et seq. The core mission of the 504 Loan Program 
is to provide long-term financing to eligible small businesses for the 
purchase or improvement of land, buildings, and major equipment in an 
effort to facilitate the creation or retention of jobs and local 
economic development. Under the 504 Loan Program, 504 loans are made to 
small businesses by Certified Development Companies (``CDCs''), and the 
504 loans are funded with proceeds from the sale of debentures issued 
by CDCs and guaranteed by SBA. The information collection that is 
approved under OMB Control Number 3245-0071 facilitates the ongoing 
administration of the 504 Loan Program. This information collection 
currently consists of SBA Form 1244, Application for Section 504 Loans; 
and SBA Form 2450, Eligibility Information Required for 504 Submission 
(Non PCLP). SBA recognizes that this information collection needs to be 
modernized to meet the needs of small business applicants and CDCs. As 
a result, SBA intends to make revisions to this information collection 
that would streamline the process and reduce duplication for CDCs and 
the small business applicants. These revisions will result in SBA Form 
2450 being cancelled and its contents substantially incorporated into 
SBA Form 1244. Additionally, three of the forms currently approved 
under OMB Control Number 3245-0346 (Form 2234 (Part A), Premier 
Certified Lenders Program (PCLP) Guarantee Request; Form 2234 (Part B), 
Supplemental Information for Premier Certified Lender Program (PCLP) 
Processing; and Form 2234 (Part C), Eligibility Information Required 
for 504 Submission (PCLP) will also be incorporated into SBA Form 1244. 
SBA is publishing a separate Federal

[[Page 8332]]

Register notice regarding the revisions to the information collection 
under OMB Control Number 3245-0346.
    Summary of changes to: OMB Control Number 3245-0071:
    1. SBA Form 1244, Application for Section 504 Loans. This form is 
used by all small businesses applying for 504 loans and all CDCs 
applying for SBA guarantees of the debentures that are sold by CDCs to 
fund 504 loans. The SBA Form 1244 is currently used for all types of 
504 loan processing--the Abridged Submission Method (``ASM''), non-
PCLP/ASM, and Premier Certified Lenders Program (``PCLP'') processing. 
As discussed below, SBA Form 2450 as well as SBA Form 2234 (Parts A, B, 
C), will be consolidated into this form. Additional changes to SBA Form 
1244 are intended to provide greater clarity for small business 
applicants using the Eligible Passive Company/Operating Company (EPC/
OC) structure, as described in 13 CFR 120.111, that are owned by 
Employee Stock Ownership Plans; or are funded by 401(k) plans.
    2. SBA Form 2450, Eligibility Information Required for 504 
Submission (Non PCLP). Currently, this form is used by non-PCLP CDCs, 
including those CDCs using ASM processing, and is submitted in 
conjunction with the SBA Form 1244. The SBA Form 2450 is an eligibility 
checklist submitted by the CDC that allows SBA to determine the 
eligibility of the small business applicant and the 504 loan. SBA will 
be incorporating the content of the SBA Form 2450 into SBA Form 1244 
and discontinuing the SBA Form 2450. The information that SBA will be 
collecting will remain substantially unchanged; however, the way in 
which the information is submitted will be revised. In some cases, the 
information will be submitted as part of the CDC's credit memorandum, 
which is currently an exhibit to the SBA Form 1244. In other cases, the 
information will be submitted as a new exhibit to the SBA Form 1244.
    3. SBA Form 2234 (Part A), Premier Certified Lenders Program (PCLP) 
Guarantee Request. This form is used for PCLP processing only, and 
serves as a cover sheet for the SBA Form 2234 (Part B) and SBA Form 
2234 (Part C). To the extent that the information collected on this 
form is not already collected on the current SBA Form 1244, it will be 
incorporated into the SBA Form 1244, and the SBA Form 2234 (Part A) 
will be discontinued.
    4. Form 2234 (Part B), Supplemental Information for Premier 
Certified Lender Program (PCLP) Processing. This form is used for PCLP 
processing only, and it collects quantifiable metrics for the 504 loan 
application. To the extent that the information collected on this form 
is not already collected on the current SBA Form 1244, it will be 
incorporated into the SBA Form 1244, and the SBA Form 2234 (Part B) 
will be discontinued.
    5. SBA Form 2234 (Part C), Eligibility Information Required for 504 
Submission (PCLP). Currently, this form is used for PCLP processing 
only. The SBA Form 2234 (Part C) is an eligibility checklist that 
allows a PCLP CDC to determine and certify to SBA the eligibility of 
the small business applicant and the 504 loan. SBA will be 
discontinuing this form and incorporating its content into the SBA Form 
1244. The requested information will remain substantially unchanged. In 
some cases, the information will be submitted as part of the CDC's 
credit memorandum, which is currently an exhibit to the SBA Form 1244. 
In other cases, the information will be submitted as a new exhibit to 
the SBA Form 1244.

Solicitation of Public Comments

    SBA is requesting comments on (i) whether the collection of 
information is necessary for the agency to properly perform its 
functions; (ii) whether the burden estimates are accurate; (iii) 
whether there are ways to minimize the burden, including through the 
use of automated techniques or other forms of information technology; 
and (iv) whether there are ways to enhance the quality, utility, and 
clarity of the information.

Summary of Proposed Information Collection:

    Title: Application for Section 504 Loans.
    Form Number: SBA Form 1244, Application for Section 504 Loans.
    OMB Control Number: 3245-0071.
    Description of Respondents: Small business concerns applying for 
504 loans and CDCs applying for guarantees of debentures to fund 504 
loans.
    Total Estimated Number of Respondents Annually: 7210.
    208 CDCs and approximately 5,800 small businesses based on the 
average number of applications received by SBA in FY19 5,829 using the 
PCLP, ASM and non-PCLP/ASM methods. Of the 5,800 applications 
submitted, 23 or 0.39% are PCLP processed, 4,621 or 80% are ASM, and 
1,156 or 20% are non-PCLP/ASM.
    Frequency of Response Annually: 1 per each small business 
applicant.
    Total Estimated Annual Responses: 5,800.
    Total Estimated Annual Hour Burden: 13,159.
    Submission through the PCLP--23 x 3.25 hours = 74.75 burden hours. 
Submission through the ASM--4,621 x 2.25 hours = 10,397 burden hours. 
Submission through non-PCLP/ASM--1,097 x 2.45 hours = 2,687 burden 
hours.

Curtis Rich,
Management Analyst.
[FR Doc. 2020-02869 Filed 2-12-20; 8:45 am]
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