Small Business Administration, Civil Monetary Penalties Inflation Adjustments, RIN 3245-AI01 — Federal Register Vol. 90, No. 105, June 3, 2025

Summary

A Small Business Administration final rule, Civil Monetary Penalties Inflation Adjustments, amending 13 CFR Parts 107, 120, 142 and 146 (RIN 3245–AI01), published in the Federal Register, Vol. 90, No. 105, Tuesday, June 3, 2025, and effective June 3, 2025. It applies a 2025 adjustment factor of 1.02598 to the penalty amounts published in SBA’s 2024 adjustments at 89 FR 48132. The rule changes the penalty in § 107.665 from $324 to $332 per day of failure to file, § 120.465(b) from $8,058 to $8,267 per day, § 120.1500(b)(2) from $298,887 to $306,652, and § 142.1(b) from $13,946 to $14,308. It also sets the § 146.400(a) and (b) amounts at not less than $25,132 and not more than $251,322.

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23422 Federal Register/Vol. 90, No. 105/Tuesday, June 3, 2025/Rules and Regulations
packaging. If continuance of the Order
is favored, USDA would also lift the
moratorium on assessment collection. If,
as a result of the referendum, the
Secretary determines that the Order is
not approved, USDA will comply with
the termination procedures at 7 CFR
1222.82.
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
chapter 35), the referendum ballot has
been approved by the Office of
Management and Budget (OMB) and
assigned OMB No. 0581–0093. It has
been estimated that approximately 40
entities will be eligible to vote in the
referendum. It will take an average of 15
minutes for each voter to read the voting
instructions and complete the
referendum ballot.
Referendum Order
George Webster, Marketing Specialist,
and Kelly Robertson, Acting Branch
Chief, Mid-Atlantic Region Branch,
Market Development Division, SCP,
AMS, USDA, Stop 0244, Room 1406–S,
1400 Independence Avenue SW,
Washington, DC 20250–0244, are
designated as the referendum agents to
conduct this referendum. The
referendum procedures at 7 CFR
1222.100 through 1222.108, which were
issued pursuant to the Act, shall be used
to conduct the referendum.
The referendum agents will express
mail ballots and voting instructions,
including how to vote electronically, to
all known, eligible domestic
manufacturers and importers prior to
the first day of the voting period. Any
eligible domestic manufacturer or
importer who does not receive a ballot
should contact a referendum agent no
later than three days before the end of
the voting period. Ballots delivered via
express mail or electronic ballot must
show proof of delivery by no later than
11:59 p.m. Eastern Time on July 25,
2025.
List of Subjects in 7 CFR Part 1222
Administrative practice and
procedure, Advertising, Consumer
information, Marketing agreements,
Paper and paper-based-packaging
promotion, Reporting and
recordkeeping requirements.
(Authority: 7 U.S.C. 7411–7425; 7 U.S.C.
7401)
Erin Morris,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2025–10053 Filed 6–2–25; 8:45 am]
BILLING CODE P
SMALL BUSINESS ADMINISTRATION
13 CFR Parts 107, 120, 142 and 146
RIN 3245–AI01
Civil Monetary Penalties Inflation
Adjustments
AGENCY: U.S. Small Business
Administration.
ACTION: Final rule.
SUMMARY: The Small Business
Administration (SBA) is amending its
regulations to adjust for inflation the
amount of certain civil monetary
penalties that are within the jurisdiction
of the agency. These adjustments
comply with the requirement in the
Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended by
the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015, to make annual adjustments to the
penalties.
DATES: This rule is effective June 3,
2025.
FOR FURTHER INFORMATION CONTACT:
Arlene Embrey, 202–205–6976 or at
arlene.embrey@sba.gov.
SUPPLEMENTARY INFORMATION:
I. Background
On November 2, 2015, the Federal
Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (the 2015
Inflation Adjustment Act), Public Law
114–74, 129 Stat. 584, was enacted. This
act amended the Federal Civil Penalties
Inflation Adjustment Act of 1990, Public
Law 101–410, 104 Stat. 890 (the 1990
Inflation Adjustment Act), to improve
the effectiveness of civil monetary
penalties and to maintain their deterrent
effect. The 2015 Inflation Adjustment
Act required agencies to issue a final
rule by August 1, 2016, to adjust the
level of civil monetary penalties with an
initial ‘‘catch-up’’ adjustment and to
annually adjust these monetary
penalties for inflation by January 15 of
each subsequent year.
Based on the definition of a ‘‘civil
monetary penalty’’ in the 1990 Inflation
Adjustment Act, agencies are to make
adjustments only to the civil penalties
that (i) are for a specific monetary
amount as provided by federal law or
have a maximum amount provided for
by Federal law; (ii) are assessed or
enforced by an agency; and (iii) are
enforced or assessed in an
administrative proceeding or a civil
action in the Federal courts. Therefore,
penalties that are stated as a percentage
of an indeterminate amount or as a
function of a violation (penalties that
encompass actual damages incurred) are
not to be adjusted.
SBA published in the Federal
Register an interim final rule with its
initial adjustments to the civil monetary
penalties, including an initial ‘‘catch-
up’’ adjustment, on May 19, 2016 (81 FR
31489), with an effective date of August
1, 2016. SBA published its first annual
adjustments to the monetary penalties
on February 9, 2017 (82 FR 9967), with
an immediate effective date. SBA
published its subsequent annual
adjustments for 2018 on February 21,
2018 (83 FR 7361), for 2019 on April 1,
2019 (84 FR 12059), for 2020 on March
10, 2020 (85 FR 13725), for 2021 on
September 24, 2021 (86 FR 52955), for
2022 on May 11, 2022 (87 FR 28756), for
2023 on August 1, 2023 (88 FR 50003),
and for 2024 on June 5, 2024 (89 FR
48132) all with immediate effective
dates. This rule will establish the
adjusted penalty amounts for 2025 with
an immediate effective date upon
publication.
On December 17, 2024, the Office of
Management and Budget (OMB)
published its annual guidance
memorandum for 2025 civil monetary
penalties inflation adjustments (M–24–
02, Implementation of Penalty Inflation
Adjustments for 2025 pursuant to the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015). The memorandum provides the
formula for calculating the annual
adjustments based on the Consumer
Price Index for all Urban Consumers
(CPI–U) for the month of October
preceding the adjustment, and
specifically on the change between the
October CPI–U preceding the date of
adjustment and the prior year’s CPI–U.
Based on this methodology, the 2025
civil monetary penalty inflation
adjustment factor is 1.02598 (October
2024 CPI–U (315.664)/October 2023
CPI–U (307.671)). The annual
adjustment amounts identified in this
rule were obtained by applying this
multiplier of 1.02598 to those penalty
amounts that were published in SBA’s
2024 adjustments to civil monetary
penalties at 89 FR 48132 (June 5, 2024).
II. Civil Money Penalties Adjusted by
This Rule
This rule adjusts civil monetary
penalties authorized by the Small
Business Act, the Small Business
Investment Act of 1958 (SBI Act), the
Program Fraud Civil Remedies Act, and
the Byrd Amendment to the Federal
Regulation of Lobbying Act. These
penalties and the implementing
regulations are discussed below.
1. 13 CFR 107.665—Civil Penalties
SBA licenses, regulates, and provides
financial assistance to financial entities
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called small business investment
companies (SBICs). Pursuant to section
315 of the SBI Act, 15 U.S.C. 687g, SBA
may impose a penalty on any SBIC for
each day that it fails to comply with
SBA’s regulations or directives
governing the filing of regular or special
reports. The penalty for non-compliance
is incorporated in §107.665 of the SBIC
program regulations.
This rule amends §107.665 to adjust
the current civil penalty from $324 to
$332 per day of failure to file. The
current civil penalty of $324 was
multiplied by the multiplier of 1.02598
to reach a product of $332, rounded to
the nearest dollar.
2. 13 CFR 120.465—Civil Penalty for
Late Submission of Required Reports
According to the regulations at
§120.465, any SBA Supervised Lender,
as defined in 13 CFR 120.10, that
violates a regulation or written directive
issued by the SBA Administrator
regarding the filing of any regular or
special report is subject to the civil
penalty amount stated in §120.465(b)
for each day the company fails to file
the report, unless the SBA Supervised
Lender can show that there is
reasonable cause for its failure to file.
This penalty is authorized by section
23(j)(1) of the Small Business Act, 15
U.S.C. 650(j)(1).
This rule amends §120.465(b) to
adjust the current civil penalty to $8,267
per day of failure to file from $8,058 per
day of failure to file. The current civil
penalty of $8,058 was multiplied by the
multiplier of 1.02598 to reach a product
of $8,267, rounded to the nearest dollar.
3. 13 CFR 120.1500—Types of Formal
Enforcement Actions—SBA Lenders
According to the regulations at
§120.1500(b), SBA may assess a civil
monetary penalty against a 7(a) Lender.
In determining whether to assess a civil
monetary penalty and, if so, in what
amount, SBA may consider: the gravity
(e.g., severity and frequency) of the
violation; the history of previous
violations; the financial resources and
good faith of the 7(a) Lender; and any
other matters as justice may require.
This penalty is authorized by the Small
Business Act, 15 U.S.C. 657t(e)(2)(B).
This rule amends §120.1500(b)(2) to
adjust the current civil penalty from
$298,887 to $306,652. The current civil
penalty of $298,887 was multiplied by
the multiplier of 1.02598 to reach a
product of $306,652, rounded to the
nearest dollar.
4. 13 CFR 142.1—Overview of
Regulations
SBA has promulgated regulations at
13 CFR part 142 to implement the civil
penalties authorized by the Program
Fraud Civil Remedies Act of 1986
(PFCRA), 31 U.S.C. 3801–3812. Under
the current regulation at 13 CFR
142.1(b), a person who submits, or
causes to be submitted, a false claim or
a false statement to SBA is subject to a
civil penalty of not more than $13,946
for each statement or claim.
This rule amends §142.1(b) to adjust
the current civil penalty from $13,946 to
$14,308. The adjusted civil penalty
amount was calculated by multiplying
the current civil penalty of $13,946 by
the multiplier of 1.02598 to reach a
product of $14,308, rounded to the
nearest dollar.
5. 13 CFR 146.400—Penalties
SBA’s regulations at 13 CFR part 146
govern lobbying activities by recipients
of federal financial assistance. These
regulations implement the authority in
31 U.S.C. 1352 and impose penalties on
any recipient that fails to comply with
certain requirements in the part.
Specifically, under §146.400(a) and (b),
penalties may be imposed on those who
make prohibited expenditures or fail to
file the required disclosure forms or to
amend such forms, if necessary.
This rule amends §146.400(a) and (b)
to adjust the current civil penalty
amounts to ‘‘not less than $25,132 and
not more than $251,322.’’ The current
civil penalty amounts of $24,496 and
$244,958 were multiplied by the
multiplier of 1.02598 to reach a product
of $25,132 and $251,322, respectively,
rounded to the nearest dollar.
This rule also amends §146.400(e) to
adjust the civil penalty that may be
imposed for a first-time violation of
§146.400(a) and (b) to $25,132 and to
adjust the civil penalty that may be
imposed for second and subsequent
offenses to ‘‘not less than $25,132 and
not more than $251,322.’’ The current
civil penalty amounts of $24,496 and
$244,958 were multiplied by the
multiplier of 1.02598 to reach a product
of $25,132 and $251,322, respectively,
rounded to the nearest dollar.
Compliance With Executive Orders
12866, 12988, 13132, and the
Administrative Procedure Act (5 U.S.C.
553), the Congressional Review Act (5
U.S.C. 801–808), the Paperwork
Reduction Act (44 U.S.C. Ch. 35), and
the Regulatory Flexibility Act (5 U.S.C.
601–612)
Executive Order 12866
The Office of Management and Budget
has determined that this final rule is not
a significant regulatory action under
Executive Order 12866.
Executive Order 12988
This action meets applicable
standards set forth in sections 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.
Executive Order 13132
For the purpose of Executive Order
13132, SBA determined that the rule
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. Therefore,
this final rule has no federalism
implications warranting preparation of a
federalism assessment.
The Administrative Procedure Act
(APA)
The APA requires agencies generally
to provide notice and an opportunity for
public comment before adopting a rule
unless the agency for good cause finds
that notice and comment are
impracticable, unnecessary, or contrary
to the public interest. 5 U.S.C. 553(b).
The APA also requires agencies to allow
at least 30-days after publication for a
final rule to become effective ‘‘except as
otherwise provided by the agency for
good cause found and published with
the rule.’’ 5 U.S.C. 553(d). For the
following reasons prior public notice, an
opportunity for public comment, and a
delayed effective date are not required
for this rule. The 2015 Inflation
Adjustment Act directs agencies to
adjust their civil penalties annually
notwithstanding section 553 of the APA.
28 U.S.C. 2461 note, sec. 4(b)(2).
This exemption from the notice and
comment, and delayed effective date
requirements of the APA, in effect
provides SBA with the good cause
justification to promulgate this as a final
rule that will become effective
immediately on the date it is published
in the Federal Register. Additionally,
the 2015 Inflation Adjustment Act
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1 49 U.S.C. 44702.
2 14 CFR 91.1014, 119.35, 125.21, 133.15, 137.15,
141.13, 142.11, 145.51, 147.5
provides a non-discretionary cost-of-
living formula for making the annual
adjustment to the civil monetary
penalties; SBA merely performs the
ministerial task of calculating the
amount of the adjustments. Therefore,
even without the statutory exemption
from the APA, notice and comment
would be unnecessary.
The Congressional Review Act (CRA)
The Office of Management and Budget
determined that this rule is not a major
rule under 5 U.S.C. 804(2).
Paperwork Reduction Act
SBA has determined that this rule
does not impose additional reporting or
recordkeeping requirements.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
requires agencies to consider the effect
of their regulatory actions on small
entities, including small non-profit
businesses, and small local
governments. Pursuant to the RFA,
when an agency issues a rule, the
agency must prepare an analysis that
describes whether the impact of the rule
will have a significant economic impact
on a substantial number of such small
entities. However, the RFA requires
such analysis only where notice and
comment rulemaking is required. As
stated above, SBA has express statutory
authority to issue this rule without
regard to the notice and comment
requirement of the APA. Since notice
and comment is not required before this
rule is issued, SBA is not required to
prepare a regulatory analysis.
List of Subjects
13 CFR Part 107
Investment companies, Loan
programs—business, Reporting and
recordkeeping requirements, Small
businesses.
13 CFR Part 120
Loan programs—business, Reporting
and recordkeeping requirements, Small
businesses.
13 CFR Part 142
Administrative practice and
procedure, Claims, Fraud, Penalties.
13 CFR Part 146
Government contracts, Grant
programs, Loan programs, Lobbying,
Penalties, Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, SBA amends 13 CFR parts
107, 120, 142, and 146 as follows:
PART 107—SMALL BUSINESS
INVESTMENT COMPANIES
■ 1. The authority citation for part 107
continues to read as follows:
Authority: 15 U.S.C. 662, 681–687, 687b–
h, 687k–m.
§107.665 [Amended]
■ 2. In §107.665, remove ‘‘$324’’ and
add in its place ‘‘$332’’.
PART 120—BUSINESS LOANS
■ 3. The authority citation for part 120
continues to read as follows:
Authority: 15 U.S.C. 634(b) (6), (b) (7), (b)
(14), (h), and note, 636(a), (h) and (m), 650,
687(f), 696(3) and (7), and 697(a) and (e); sec.
521, Pub. L. 114–113, 129 Stat. 2242; sec.
328(a), Pub. L. 116–260, 134 Stat. 1182.
§120.465 [Amended]
■ 4. In §120.465, amend paragraph (b)
by removing ‘‘$8,058’’ and adding in its
place ‘‘$8,267’’.
§120.1500 [Amended]
■ 5. In §120.1500, amend paragraph
(b)(2) by removing ‘‘298,887’’ and
adding in its place ‘‘$306,652’’.
PART 142—PROGRAM FRAUD CIVIL
REMEDIES ACT REGULATIONS
■ 6. The authority citation for part 142
continues to read as follows:
Authority: 15 U.S.C. 634(b); 31 U.S.C.
3803(g)(2).
§142.1 [Amended]
■ 7. In §142.1, amend paragraph (b) by
removing ‘‘$13,946’’ and adding in its
place ‘‘$14,308’’.
PART 146—NEW RESTRICTIONS ON
LOBBYING
■ 8. The authority citation for part 146
continues to read as follows:
Authority: 31 U.S.C. 1352 and 15 U.S.C.
634(b)(6).
§146.400 [Amended]
■ 9. In §146.400, remove ‘‘$24,496’’ and
‘‘$244,958’’ wherever they appear and
add in their places ‘‘$25,132’’ and
‘‘$251,322’’, respectively.
Kelly Loeffler,
Administrator.
[FR Doc. 2025–09833 Filed 6–2–25; 8:45 am]
BILLING CODE 8026–09–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Parts 13, 91 Subpart K (Part
91K), 119, 121, 125, 133, 135, 137, 141,
142, 145, and 147
[Docket No. FAA 2025–0928]
Changes to Application for
Certification Process
AGENCY: Federal Aviation
Administration (FAA), Department of
Transportation (DOT).
ACTION: Procedural update; notification
of availability.
SUMMARY: This action announces the
implementation of an update to the
process for an applicant to withdraw, or
for the FAA to deny, an application for
certification to better address the
expectations of applicants and the FAA
with respect to certification timelines.
The change supports the FAA’s mission
and the Certification Services Oversight
Process (CSOP) by enhancing
engagement with air carrier, air
operator, or air agency certification
applicants and further streamlining the
certification process. This update is
intended to reduce wait times and better
utilize FAA resources for processing
complete applications from prepared
applicants, thus increasing efficiency in
accomplishing the certification process.
DATES: [DATE OF PUBLICATION IN
THE FEDERAL REGISTER].
FOR FURTHER INFORMATION CONTACT:
Mark Trudeau, Section Manager, Office
of Safety Standards (AFS–330), Flight
Standards Service, Federal Aviation
Administration, 800 Independence
Avenue SW, Washington, DC 20591;
(202) 267–1675.
SUPPLEMENTARY INFORMATION: As set
forth in Title 49 of the United States
Code (49 U.S.C.), the Administrator of
the Federal Aviation Administration
(Administrator) may issue air carrier, air
operating, and air agency certificates.
An application for a certificate must be
under oath when the Administrator
requires; and be in the form, contain
information, and be filed and served in
the way the Administrator prescribes.1
Only when the FAA receives a complete
application in a manner prescribed by
the Administrator shall the entity be
considered an applicant.2 The FAA’s
certification offices have, in recent
years, experienced significant backlog
and resource constraints related to the
timing and delay in responsiveness by
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