[Federal Register Volume 85, Number 194 (Tuesday, October 6, 2020)]
[Rules and Regulations]
[Pages 62950-62951]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-19473]


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SMALL BUSINESS ADMINISTRATION

13 CFR Part 119

RIN 3245-AH11


Regulatory Reform Initiative: Program for Investment in 
Microentrepreneurs (PRIME)

AGENCY: U.S. Small Business Administration.

ACTION: Final rule.

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SUMMARY: The U.S. Small Business Administration (SBA or Agency) is 
revising one regulation and removing 19 regulations from the Code of 
Federal Regulations (CFR) related to the Program for Investment in 
Microentrepreneurs (PRIME) that are repetitive and unnecessary because 
they duplicate identical guidance and requirements already stipulated 
in other legal sources and/or provided to grant applicant and 
recipients in the annual PRIME funding opportunity announcement. The 
removal of these regulations assists the public by simplifying SBA's 
regulations in the CFR and reducing the amount of time grant applicants 
and recipients must spend reviewing programmatic guidance.

DATES: This rule is effective on November 5, 2020.

FOR FURTHER INFORMATION CONTACT: Daniel Upham, Chief, Microenterprise 
Development Division, Office of Capital Access, at 202-205-7001 or 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Background Information

A. Part 119--Program for Investment in Microentrepreneurs (``PRIME'' or 
``The Act'')

    Under the PRIME program, SBA is authorized by 15 U.S.C. 6902 to 
make grants to qualified organizations for the purpose of funding: (i) 
Training and technical assistance to disadvantaged microentrepreneurs; 
(ii) training and capacity-building services for microenterprise 
development organizations; (iii) research and development of the best 
practices in the fields of microenterprise development and technical 
assistance for disadvantaged microentrepreneurs; and (iv) other related 
activities as the Agency deems appropriate.
    In this rule, SBA is modifying one regulation and removing 19 
regulations from the CFR related to the Program for Investment in 
Microentrepreneurs (PRIME) that are no longer necessary because they 
duplicate identical guidance and requirements already stipulated in the 
enabling legislation (15 U.S.C. 6901, et seq.), the governmentwide 
grant regulations (2 CFR part 200), and/or provided to grant applicant 
and recipients in the PRIME funding opportunity announcements published 
annually by SBA at www.grants.gov. The removal of these regulations 
will assist the public by simplifying SBA's regulations in the CFR and 
reducing the amount of time grant applicants and recipients must spend 
reviewing programmatic guidance.
    SBA proposed a rule with these amendments on February 7, 2020, and 
the comment period ended on April 7, 2020. 85 FR 7254. SBA received 
three comments on the proposed rule. None of the comments received 
contained any substantive comments on the content of the rule. 
Therefore, SBA is proceeding with publication of the final rule with no 
changes from the proposed rule text.

II. Section by Section Analysis

A. Section 119

    This rule currently summarizes the purpose of the PRIME program. 
SBA retains this statement of programmatic purpose and adds further 
subsections addressing how qualified organizations may apply for grant 
awards under the PRIME program.

B. Sections 119.2 Through 119.20

    These rules provided guidance to PRIME program applicants regarding 
the application and selection process, as well as inform grant 
recipients of certain restrictions and requirements related to the 
conduct of PRIME grant projects. They are no longer necessary because 
the guidance, restrictions, and requirements they reiterate are also 
covered in other sources that are more authoritative, informative, and/
or frequently updated. As such, they are duplicative of, and of less 
utility, than these other sources. SBA therefore is removing these 
sections and instead relying upon the content contained in other 
Federal guidance, such as the enabling legislation (15 U.S.C. 6901 et 
seq.), the government-wide grant regulations (2 CFR part 200), and the 
PRIME program annual funding opportunity announcements and award terms 
and conditions issued by SBA. Program information will be published 
annually at www.grants.gov.

III. Compliance With Executive Orders 12866, 13771, 12988, and 13132, 
the Paperwork Reduction Act (44 U.S.C., Ch. 35), and the Regulatory 
Flexibility Act (5 U.S.C. 601-612)

A. Executive Order 12866

    The Office of Management and Budget (OMB) has determined that this 
rule does not constitute a significant regulatory action for purposes 
of Executive Order 12866 and is not a major rule under the 
Congressional Review Act, 5 U.S.C. 801, et seq.

B. Executive Order 13771

    This rule is an Executive Order 13771 deregulatory action with an 
annualized net savings of $15,382 and a net present value of $219,743 
in savings, both in 2016 dollars. This rule will remove redundant 
information which will save grant applicants from reading the same 
information from multiple sources. The reduced burden assumes 130 grant 
applicants read the regulation per year, which is the average number of 
applicants per year, and that they would save 2 hours each from not 
reading the removed information. This time is valued at $62.82 per 
hour--the wage of a community service manager based on 2018 U.S. Bureau 
of Labor Statistics (BLS) data--and adding 100 percent more for 
benefits and overhead for a total savings per year of $16,333 in 
current dollars.
    It is assumed that there will be no costs to this rule as it 
removes duplicative information. SBA received no comments on its 
regulatory economic analysis.

C. Executive Order 12988

    This action meets applicable standards set forth in Section 3(a) 
and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize 
litigation, eliminate ambiguity, and reduce burden. The action does not 
have retroactive or preemptive effect.

D. Executive Order 13132

    This rule does not have federalism implications as defined in 
Executive Order 13132. It will not have substantial direct effects on 
the States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government, as specified in the

[[Page 62951]]

Executive order. As such it does not warrant the preparation of a 
Federalism Assessment.

E. Paperwork Reduction Act

    The SBA has determined that this rule does not affect any existing 
collection of information.

F. Regulatory Flexibility Act

    When an agency issues a proposed rule, the Regulatory Flexibility 
Act (RFA) requires the agency to prepare an initial regulatory 
flexibility analysis (IRFA), which describes whether the rule will have 
a significant economic impact on a substantial number of small 
entities. However, Section 605 of the RFA allows an agency to certify a 
rule, in lieu of preparing an IRFA, if the rulemaking is not expected 
to have a significant economic impact on a substantial number of small 
entities.
    The Administrator of the SBA certified that this rule will not have 
a significant economic impact on a substantial number of small entities 
during the proposed rule stage and no comments were received on this 
certification.

List of Subjects in 13 CFR Part 119

    Grant programs--business, Small businesses.

    Accordingly, for the reasons stated in the preamble, SBA is 
amending 13 CFR part 119 as follows:

PART 119--PROGRAM FOR INVESTMENT IN MICROENTREPRENEURS (``PRIME'') 
or ``The Act'')

0
1. The authority citation for part 119 is revised to read as follows:

    Authority:  15 U.S.C. 634(b)(6), 6901-6910.


0
2. Revise Sec.  119.1 to read as follows:


Sec.  119.1   What is the Program for Investment in Microentrepreneurs 
(PRIME)?

    (a) The PRIME program authorizes SBA to award grants to qualified 
organizations to fund training and technical assistance for 
disadvantaged microentrepreneurs; training and capacity-building 
services for microenterprise development organizations; research and 
development of the best practices in the fields of microenterprise 
development and the provision of technical assistance to disadvantaged 
microentrepreneurs; and such other activities as the Agency deems 
appropriate.
    (b) Dependent upon the availability of funds and continuing program 
authority, SBA will issue, via Grants.gov or any successor platform, 
funding announcements specifying the terms, conditions, and evaluation 
criteria for each potential round of PRIME awards. These funding 
announcements will identify who is eligible to apply for PRIME awards; 
summarize the purposes for which the available funds may be used; 
advise potential applicants regarding the process for obtaining, 
completing, and submitting an application packet; and provide 
information regarding application deadlines and any additional 
limitations, special rules, procedures, and restrictions which SBA may 
deem advisable.
    (c) SBA will evaluate applications for PRIME awards in accordance 
with the stated statutory goals of the program and the specific 
criteria described in the relevant funding announcement.
    (d) In administering the PRIME program, SBA will require recipients 
to provide reports in accordance with the subject matter areas and 
schedule identified in the terms and conditions of their awards. In 
addition, SBA may, as it deems appropriate, make site visits to 
recipients' premises and review all applicable documentation and 
records.


Sec.  Sec.  119.2 through 119.20  [Removed and reserved]

0
3. Remove and reserve Sec. Sec.  119.2 through 119.20.

Jovita Carranza,
Administrator.
[FR Doc. 2020-19473 Filed 10-5-20; 8:45 am]
BILLING CODE 8026-03-P