Microloan Program; Changes to the Microloan Program Under the Economic Aid To Hard-Hit Small Businesses, Nonprofits, and Venues Act (rule, 89 FR 35688, May…
Summary
A direct final rule from the U.S. Small Business Administration (SBA) amending Microloan Program regulations to reflect changes made by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act. It was published in the Federal Register on May 2, 2024 (Vol. 89, No. 86; Docket No. SBA–2023–0010). The program funds nonprofit intermediary lenders that make loans of up to $50,000 to small businesses and certain not-for-profit childcare centers. The changes increase the total amount an Intermediary may borrow per year and in aggregate. They also expand bonus grant eligibility to Intermediaries that provide not less than 25 percent of their Microloans to businesses located in or owned by residents of an Economically Distressed Area. The rule takes effect without further action unless significant adverse comment is received by June 3, 2024.
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“Microloan Program; Changes to the Microloan Program Under the Economic Aid To Hard-Hit Small Businesses, Nonprofits, and Venues Act (rule, 89 FR 35688, May….”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/microloan-program-changes-to-the-microloan-program-under-the-economic-4514c88d89/
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35688 Federal Register / Vol. 89, No. 86 / Thursday, May 2, 2024 / Rules and Regulations
shall be excused for the length of time submit confidential business outstanding limit of $7,000,000. The
provided by the court order. information (CBI) as defined in the User maximum amount an Intermediary may
* * * * * Notice at http://www.regulations.gov, borrow during its first year of
please submit the information to Daniel participation remains $750,000.
Dated: April 18, 2024.
Upham, Chief, Microenterprise
On behalf of the Commission. 3. 120.712 How does an Intermediary
Development Division, 409 3rd Street
Sean J. Cooksey, get a grant to assist Microloan
SW, 8th Floor, Washington, DC 20416.
Chairman, Federal Election Commission. borrowers?
Highlight the information that you
[FR Doc. 2024–08700 Filed 5–1–24; 8:45 am] consider to be CBI and explain why you The Economic Aid Act provides a
BILLING CODE 6715–01–P believe this information should be held new minimum base grant amount of 25
confidential. SBA will review the percent of an Intermediary’s total
information and make the final outstanding SBA loan balance
SMALL BUSINESS ADMINISTRATION determination as to whether to publish applicable in fiscal years in which the
the information. amount appropriated for TA grants is
13 CFR Part 120 FOR FURTHER INFORMATION CONTACT: sufficient to provide all Intermediaries
[Docket No. SBA–2023–0010] Daniel Upham, Microenterprise with a grant equal to 25 percent or more
Development Division, (202) 205–7001 of their total outstanding SBA loan
RIN 3245–AH83 balances. In these fiscal years, the
or Daniel.Upham@sba.gov.
SUPPLEMENTARY INFORMATION: maximum base grant amount is 30
Microloan Program; Changes to the
percent of an Intermediary’s total
Microloan Program Under the A. General Information outstanding SBA loan balance.
Economic Aid To Hard-Hit Small
The U.S. Small Business Intermediaries eligible for bonus grants
Businesses, Nonprofits, and Venues
Act Administration (SBA) is amending its may receive an additional grant for a
Microloan rules to reflect statutory total eligible maximum grant amount of
AGENCY: U.S. Small Business changes from section 329 of the 35 percent of the total outstanding SBA
Administration (SBA). Economic Aid to Hard-Hit Small loan balance. SBA has revised
ACTION: Direct final rule. Businesses, Nonprofits, and Venues Act paragraph (a) to reflect these statutory
(Pub. L. 116–260), enacted December 27, changes.
SUMMARY: The U.S. Small Business Currently, Intermediaries that
2020 (the Economic Aid Act). SBA’s
Administration (SBA) is amending its maintain a portfolio of Microloans
Microloan Program is authorized by
Microloan Program regulations to reflect averaging $10,000 or less are eligible for
section 7(m) of the Small Business Act,
statutory changes to the Microloan a bonus grant equal to 5 percent of the
(15 U.S.C. 636(m)) and 13 CFR part 120,
Program contained in the Economic Aid Intermediary’s total outstanding SBA
subpart G. The Microloan Program
to Hard-Hit Small Businesses, loan balance. The Economic Aid Act
provides loans up to $50,000 to help
Nonprofits, and Venues Act. The expands eligibility for bonus grants to:
changes increase the total amount an small businesses and certain not-for-
profit childcare centers start up and (a) Intermediaries that provide not less
Intermediary may borrow under the than 25 percent of their Microloans to
Microloan Program per year and in expand. SBA provides funds to
specially designated intermediary small businesses located in or owned by
aggregate, expand eligibility for one or more residents of an
Intermediaries to receive a bonus grant lenders, which are nonprofit
community-based organizations with economically distressed area and (b)
and add the necessary definitions, and Intermediaries with a Microloan
revise the eligible base grant award experience in lending as well as
management and technical assistance. portfolio of which at least 25 percent is
amount for Intermediaries under certain serving rural areas. SBA has revised
circumstances. This direct final rule These intermediaries administer the
Microloan Program for eligible paragraph (c) to include these two
conforms the regulations to the Act by
borrowers. additional bonus grant eligibility
adopting the new statutory requirements
SBA is amending §§ 120.701, 120.706, criteria.
without change.
and 120.712 to incorporate Microloan C. Compliance With Executive Orders
DATES: This rule is effective June 17,
Program changes required by the 12866, 12988, 13132, 13175, and 13563,
2024 without further action, unless
Economic Aid Act. The specific the Congressional Review Act (5 U.S.C.
significant adverse comment is received
regulatory changes are detailed below in 801–808), the Paperwork Reduction Act
by June 3, 2024. If significant adverse
the section-by-section analysis. (44 U.S.C., Ch. 35) and the Regulatory
comment is received, SBA will publish
a timely withdrawal of the rule in the B. Section-by-Section Analysis Flexibility Act (5 U.S.C. 601–612)
Federal Register. Executive Order 12866
1. § 120.701 Definitions
ADDRESSES: You may submit comments,
identified by docket number SBA– Section 329 of the Economic Aid Act The Office of Management and Budget
2023–0010, by any of the following established two new definitions: (OMB) has determined that this direct
methods: ‘‘Economically Distressed Area’’ and final rule does not constitute a
(1) Federal Rulemaking Portal: http:// ‘‘Rural Area.’’ To recognize these significant regulatory action under
www.regulations.gov, following the additions, the definitions for the Executive Order 12866.
specific instructions for submitting Microloan Program are revised. Executive Order 12988
comments;
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2. 120.706 What are the terms and This action meets applicable
(2) Email: Daniel.Upham@sba.gov; or
(3) Mail/Hand Delivery/Courier: conditions of an SBA loan to an standards set forth in sections 3(a) and
Daniel Upham, Chief, Microenterprise Intermediary? 3(b)(2) of Executive Order 12988, Civil
Development Division, 409 3rd Street The Economic Aid Act permanently Justice Reform, to minimize litigation,
SW, 8th Floor, Washington, DC 20416. increased the maximum amount an eliminate ambiguity, and reduce
SBA will post all comments on http:// Intermediary may borrow from SBA to burden. The action does not have
www.regulations.gov. If you wish to $3,000,000 per year, with an aggregate preemptive effect. The final rule will
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Federal Register / Vol. 89, No. 86 / Thursday, May 2, 2024 / Rules and Regulations 35689
have retroactive effect to the enactment is not expected to have a significant Authority: 15 U.S.C. 634(b)(6), (b)(7),
date of the statutory amendment. These impact on a substantial number of small (b)(14), (h), and note, 636(a), (h) and (m), and
changes will become effective December entities. note, 636m, 650, 657t, and note, 657u, and
28, 2020. note, 687(f), 696(3), and (7), and note, and
This rule only makes conforming 697, 697a and e, and note; Pub. L. 116–260,
Executive Order 13132 amendments to the regulations due to 134 Stat. 1182.
recent legislation on the Microloan
This rule does not have federalism Program and does not implement new Subpart G—Microloan Program
implications as defined in Executive agency policies. The amendment will
Order 13132. The direct final rule will affect small entities; however, SBA has ■ 2. Revise § 120.701 to read as follows:
not have substantial direct effects on the determined that the amendment will not
States, on the relationship between the § 120.701 Definitions.
have a significant economic impact on
national government and the States, or a substantial number of such entities. Deposit account is a demand, time,
the distribution of power and savings, passbook, or similar account
responsibilities among the various D. Justification for Direct Final Rule— maintained with an insured depository
levels of government, as specified in the Administrative Procedure Act institution (not including an account
Executive Order. Therefore, SBA In general, SBA publishes a rule for evidenced by a Certificate of Deposit).
determined that this direct final rule has public comment before issuing a final Economically Distressed Area is a
no federalism implications warranting rule in accordance with the county or equivalent division of local
preparation of a Federalism Assessment. Administrative Procedure Act. 5 U.S.C. government of a State in which the
553. The Administrative Procedure Act small business concern is located, in
Executive Order 13175 which, according to the most recent data
provides an exception to this standard
In accordance with Executive Order rulemaking process, however, where an available from the Bureau of the Census,
13175, SBA has determined this agency finds good cause to adopt a rule Department of Commerce, not less than
rulemaking does not include policies without prior public participation. 5 40 percent of residents have an annual
that have Tribal implications. U.S.C. 553(b)(3)(B). The good cause income that is at or below the poverty
requirement is satisfied when prior level.
Executive Order 13563 Grant is a Federal award of money, or
public participation is impracticable,
Executive Order 13563, Improving property in lieu of money (including
unnecessary, or contrary to the public
Regulation and Regulatory Review cooperative agreements) to an eligible
interest.
(January 18, 2011), requires agencies to grantee that must account for its use.
adopt regulations through a process that SBA is publishing this rule as a direct The term does not include the provision
involves public participation, and to the final rule because public participation is of technical assistance, revenue sharing,
extent feasible, base regulations on the unnecessary. SBA believes that this rule loans, loan guarantees, interest
open exchange of information and is routine and non-controversial since it subsidies, insurance, direct
perspectives from affected stakeholders merely implements changes required by appropriations, or any fellowship or
and the public as a whole. SBA has statute, and SBA anticipates no other lump sum award.
developed this rule in a manner significant adverse comments to this Insured depository institution means
consistent with these requirements. This rulemaking. This rule will be effective any federally insured bank, savings
direct final rule makes statutorily on the date shown in the DATES section association, or credit union.
required changes. unless SBA receives significant adverse Intermediary is an entity participating
comment on or before the deadline for in the Microloan Program which makes
Congressional Review Act, 5 U.S.C. 801– comments. Significant adverse and services Microloans to eligible
808 comments are comments that provide small businesses and which provides
The Office of Management and Budget strong justifications why the rule should marketing, management, and technical
has determined that this is not a major not be adopted or for changing the rule. assistance to its borrowers. It may be:
rule under 5 U.S.C. 804(2). SBA does not expect to receive any (1) A private, nonprofit community
significant adverse comments because it development corporation or other
Paperwork Reduction Act (44 U.S.C. Ch. is adopting statutory changes. entity;
35) If SBA receives any significant (2) A consortium of private, nonprofit
SBA has determined that this direct adverse comments, it will publish a community development corporations
final rule would not impose any new document in the Federal Register or other entities;
reporting or recordkeeping withdrawing this rule before the (3) A quasi-governmental economic
requirements. effective date. If SBA receives no development entity, other than a state,
significant adverse comments, the rule county, municipal government or any
Regulatory Flexibility Act (5 U.S.C. 601– will be effective 45 days after agency thereof; or
612) publication without further notice. (4) An agency of or a nonprofit entity
The Regulatory Flexibility Act (RFA), established by a Native American Tribal
5 U.S.C. 601, requires administrative List of Subjects in 13 CFR Part 120
Government.
agencies to consider the effect of their Definitions, Economically distressed Microloan is a short-term, fixed
actions on small entities, including area, Grant, Intermediary, Microloan, interest rate loan of not more than
small businesses. According to the RFA, Rural area, Terms and conditions. $50,000 made by an Intermediary to an
when an agency issues a rule, the For reasons set forth in the preamble, eligible small business.
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agency must prepare an analysis to the SBA amends 13 CFR part 120 as Non-Federal sources are sources of
determine whether the impact of the follows: funds other than the Federal
rule will have a significant economic Government and may include indirect
impact on a substantial number of small PART 120—MICROLOAN PROGRAM costs or in-kind contributions paid for
entities. However, the RFA allows an under non-Federal programs.
agency to certify a rule in lieu of ■ 1. The authority citation for 13 CFR Community Block Development Grants
preparing an analysis if the rulemaking part 120 continues to read as follows: are considered non-Federal sources.
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35690 Federal Register / Vol. 89, No. 86 / Thursday, May 2, 2024 / Rules and Regulations
Rural Area is any political (2) Provides not less than 25 percent Docket Operations is U.S. Department of
subdivision or unincorporated area: of its loans to small business concerns Transportation, Docket Operations, M–
(1) In a nonmetropolitan county (as located in or owned by one or more 30, West Building Ground Floor, Room
defined by the Secretary of Agriculture) residents of an Economically Distressed W12–140, 1200 New Jersey Avenue SE,
or its equivalent thereof; or Area; or Washington, DC 20590.
(2) In a metropolitan county or its (3) Maintains a portfolio of Material Incorporated by Reference:
equivalent that has a resident Microloans of which at least 25 percent • For material that is identified in
population of less than 20,000 if the is serving Rural Areas. this final rule, contact Transport
Small Business Administration has * * * * * Canada, Transport Canada National
determined such political subdivision Aircraft Certification, 159 Cleopatra
or area to be rural. Isabella C. Guzman, Drive, Nepean, Ontario K1A 0N5,
Specialized Intermediary is an Administrator. Canada; telephone 888–663–3639; email
Intermediary which maintains a [FR Doc. 2024–09520 Filed 5–1–24; 8:45 am] TC.AirworthinessDirectives-
portfolio of Microloans averaging BILLING CODE 8026–09–P Consignesdenavigabilite.TC@tc.gc.ca;
$10,000 or less. website tc.canada.ca/en/aviation.
■ 3. Amend § 120.706 by revising
• You may view this material at the
paragraph (a) to read as follows: DEPARTMENT OF TRANSPORTATION FAA, Airworthiness Products Section,
Operational Safety Branch, 2200 South
§ 120.706 What are the terms and Federal Aviation Administration 216th Street, Des Moines, WA. For
conditions of an SBA loan to an information on the availability of this
Intermediary? 14 CFR Part 39 material at the FAA, call 206–231–3195.
(a) Loan amount. An Intermediary It is also available in the AD docket at
[Docket No. FAA–2023–1817; Project
may not borrow more than $750,000 in Identifier MCAI–2023–00664–T; Amendment regulations.gov under Docket No. FAA–
the first year of participation in the 39–22732; AD 2024–07–11] 2023–1817.
program, or more than $3,000,000 in FOR FURTHER INFORMATION CONTACT:
any subsequent year. An Intermediary’s RIN 2120–AA64
Steven Dzierzynski, Aviation Safety
obligation to SBA may not exceed an Engineer, FAA, 1600 Stewart Avenue,
Airworthiness Directives; Airbus
aggregate of $7 million, subject to Suite 410, Westbury, NY 11590;
Canada Limited Partnership (Type
statutory limitations on the total amount telephone 516–228–7300; email 9-avs-
Certificate Previously Held by C Series
of funds available per state. nyaco-cos@faa.gov.
Aircraft Limited Partnership (CSALP);
* * * * * Bombardier, Inc.) Airplanes SUPPLEMENTARY INFORMATION:
■ 4. Amend § 120.712 by revising
AGENCY: Federal Aviation Background
paragraphs (a) and (c) to read as follows:
Administration (FAA), DOT. The FAA issued a notice of proposed
§ 120.712 How does an Intermediary get a ACTION: Final rule. rulemaking (NPRM) to amend 14 CFR
grant to assist Microloan borrowers? part 39 by adding an AD that would
(a) General. (1) Except as provided in SUMMARY: The FAA is adopting a new apply to certain Airbus Canada Limited
(a)(2) of this section, an Intermediary is airworthiness directive (AD) for certain Partnership Model BD–500–1A10 and
eligible to receive a base grant of not Airbus Canada Limited Partnership BD–500–1A11 airplanes. The NPRM
more than 25 percent of the outstanding Model BD–500–1A10 and BD–500– published in the Federal Register on
balance of all SBA loans to the 1A11 airplanes. This AD was prompted September 6, 2023 (88 FR 60899). The
Intermediary. by a design review that identified the NPRM was prompted by AD CF–2023–
(2) In fiscal years in which the fixed emergency locator transmitter 31, dated May 8, 2023 (Transport
amount appropriated for grants is (ELT) lithium batteries would not be Canada AD CF–2023–31) (also referred
sufficient to provide all Intermediaries sufficiently cooled by the outside air in to as the MCAI), issued by Transport
with a base grant equal to 25 percent or the event of a thermal runaway event. Canada, which is the aviation authority
more of their total outstanding SBA loan This AD requires replacing the ELT with for Canada. The MCAI states a design
balances, then the amount of base grants a new ELT with redesigned batteries, as review identified that the fixed ELT
to eligible Intermediaries will be equal specified in a Transport Canada AD, lithium batteries would not be
to at least 25 percent of the outstanding which is incorporated by reference. The sufficiently cooled by the outside air in
balance of all SBA loans to the FAA is issuing this AD to address the the event of a thermal runaway event.
Intermediary and not more than 30 unsafe condition on these products. As a result, a thermal runaway could
percent of such balance. DATES: This AD is effective June 6, 2024. lead to an uncontrolled fire of the fixed
(3) The Intermediary must contribute, The Director of the Federal Register ELT, which may compromise the
solely from non-Federal sources, an approved the incorporation by reference structural integrity of the aircraft
amount equal to 25 percent of the grant. of a certain publication listed in this AD structure in the area where the fixed
Contributions may be made in cash or as of June 6, 2024. ELT is installed.
in kind. ADDRESSES: The FAA is issuing this AD to address
* * * * * AD Docket: You may examine the AD the unsafe condition on these products.
(c) Intermediaries eligible to receive docket at regulations.gov under Docket You may examine the MCAI in the AD
additional bonus grant monies. An No. FAA–2023–1817; or in person at docket at regulations.gov under Docket
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Intermediary may receive an additional Docket Operations between 9 a.m. and No. FAA–2023–1817.
SBA grant equal to five percent of the 5 p.m., Monday through Friday, except Discussion of Final Airworthiness
outstanding balance of all loans Federal holidays. The AD docket Directive
received from SBA (with no obligation contains this final rule, the mandatory
to contribute additional matching funds) continuing airworthiness information Comments
if the Intermediary: (MCAI), any comments received, and The FAA received comments from the
(1) Is a Specialized Intermediary; other information. The address for Air Line Pilots Association,
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