[Federal Register Volume 87, Number 134 (Thursday, July 14, 2022)]
[Notices]
[Page 42257]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-15015]


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SMALL BUSINESS ADMINISTRATION


Temporary 504 Express Loan Authority for Certified Development 
Companies Participating in the Accredited Lenders Program--Industries 
With a High Rate of Default

    The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and 
Venues Act (Pub. L. 116-260) (``Economic Aid Act'') temporarily 
provides increased authority to Certified Development Companies (CDCs) 
participating in the Small Business Administration's (SBA) Accredited 
Lenders Program (ALP) with respect to 504 loans that are not more than 
$500,000 and that are not made to a borrower in an industry with a high 
rate of default. The authority for ALP CDCs to make ALP Express Loans 
was implemented through an interim final rule published in the Federal 
Register on June 27, 2022 Vol. 97, No. 122 RIN 3245-AH74.
    Section 328(b) of the Economic Aid Act further requires that SBA 
annually identify the industries with a high rate of default. 
Accordingly, on an annual basis, SBA will list the industries that it 
has determined have a high rate of default in a notice published in the 
Federal Register, with the first list published after the publication 
of the interim final rule, and annually thereafter.
    To comply with this requirement, SBA defines ``industries with a 
high rate of default'' as an industry that for the past 5 fiscal years 
has 50 or more approvals/year and an annualized default rate of 5% or 
above. Using SBA's ALP Express risk identification methodology, SBA has 
determined there are no industries with a high rate of default in the 
504 program based on prior SBA 504 portfolio performance. SBA will 
review and update its analysis and publish an updated list annually 
through September 20, 2023.
    For SBA's analysis, the industries are analyzed by North American 
Industry Classification System (NAICS) Subsector Title and three-digit 
subsector code.

Isabella Casillas Guzman,
Administrator.
[FR Doc. 2022-15015 Filed 7-13-22; 8:45 am]
BILLING CODE 8026-09-P