Small Business Administration, Program Fraud Civil Remedies Act Regulations Statutory Updates, RIN 3245-AI29 — Federal Register Vol. 91, No. 53, March 19, 2026

Summary

A Small Business Administration direct final rule amending 13 CFR Part 142 (RIN 3245–AI29), Program Fraud Civil Remedies Act Regulations Statutory Updates, published in the Federal Register, Vol. 91, No. 53, Thursday, March 19, 2026. SBA states that the rule implements changes required by the Administrative False Claims Act of 2023 (AFCA), Public Law 118–159, sec. 5203. It renames the administrative action from “Program Fraud Civil Remedies” to “Administrative False Claims” and increases the threshold for a claim from $150,000 to $1,000,000. The rule takes effect without further action unless significant adverse comment is received by April 20, 2026.

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13217 Federal Register/Vol. 91, No. 53/Thursday, March 19, 2026/Rules and Regulations
timeframe, the Agency may revoke
Delegated Lender status.
(f) Termination of delegated authority.
(1) The Agency may suspend or
terminate the lender’s delegated status
for reasons including, but not limited to:
(i) Approving loans that do not meet
Agency guidelines.
(ii) Providing data to the Agency’s
automated underwriting system which
is not supported by documentation
retained by the lender.
(iii) Unacceptable portfolio
performance as evidenced by
delinquency, loss claim, default rates,
material deficiencies, or any other
performance metric established by the
Agency; and
(iv) Noncompliance with other
requirements described in §3555.51, or
if the Agency determines that other
good cause exists.
(2) Termination of a Delegated
Lender’s participation in the SFHGLP
under §3555.52 automatically revokes
Delegated Lender status without
separate Agency action under paragraph
(g) of this section.
(g) Revocation of delegated status.
Delegated Lenders will retain delegated
status until revoked by the Agency or
withdrawn by the lender. If the Agency
revokes the delegated authority of a
Delegated Lender, the Delegated Lender
will be given appeal rights as specified
in §3555.4. This is distinct from
termination from participation in the
SFHGLP under §3555.52.
(h) Administration of delegated
program. The Agency may adjust,
modify, or cancel the Delegated Lender
program based on overall program
considerations such as budget, program
performance, and program integrity.
Subpart C—Loan Requirements
§3555.107 [Amended]
■ 4. Amend §3555.107 by removing
paragraph (i)(5).
George Kelly,
Administrator, Rural Housing Service.
[FR Doc. 2026–05387 Filed 3–18–26; 8:45 am]
BILLING CODE 3410–XV–P
SMALL BUSINESS ADMINISTRATION
13 CFR Part 142
RIN 3245–AI29
Program Fraud Civil Remedies Act
Regulations Statutory Updates
AGENCY: U.S. Small Business
Administration.
ACTION: Direct final rule.
SUMMARY: The United States Small
Business Administration (SBA) is
amending the Program Fraud Civil
Remedies Act regulations in 13 CFR part
142 to reflect changes made to the
Program Fraud Civil Remedies Act of
1986 by the Administrative False Claims
Act of 2023. These changes, among
other things, revise the name of the
administrative action from ‘‘Program
Fraud Civil Remedies’’ to
‘‘Administrative False Claims’’ and
increase the threshold for a claim from
$150,000 to $1,000,000. The
Administrative False Claims Act
mandates that the Agency issue
regulations to update part 142 and this
direct final rule conforms the
regulations to the Administrative False
Claims Act by adopting the new
statutory requirements without change.
DATES: This rule is effective May 4,
2026, without further action, unless
significant adverse comment is received
by April 20, 2026. If significant adverse
comment is received, SBA will publish
a timely withdrawal of the rule in the
Federal Register.
ADDRESSES: You may submit comments,
identified by number SBA–2026–0067
or RIN 3245–AI29, in the Federal
eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
SBA will post all comments on
www.regulations.gov. If you wish to
submit confidential business
information (CBI) as defined in the User
Notice at www.regulations.gov, please
send an email to Kandace Zelaya at
Kandace.Zelaya@sba.gov and highlight
the information that you consider to be
CBI and explain why you believe SBA
should hold this information as
confidential. SBA will review the
information and make the final
determination whether it will publish
the information. All other comments
must be submitted through the Federal
eRulemaking Portal described above.
FOR FURTHER INFORMATION CONTACT:
Kandace Zelaya, Office of General
Counsel, (504) 589–2033,
Kandace.Zelaya@sba.gov.
SUPPLEMENTARY INFORMATION:
I. Background
This direct final rule implements
regulatory changes required by the
Administrative False Claims Act of 2023
(AFCA), Public Law 118–159, sec. 5203,
138 Stat. 2440 (December 23, 2024). The
specific regulatory changes are further
described below.
II. Description of Regulatory Changes
SBA is revising the title of part 142
from ‘‘Program Fraud Civil Remedies
Act Regulations’’ to ‘‘Administrative
False Claims Act Regulations.’’ In
addition, SBA is revising all references
to ‘‘Program Fraud Civil Remedies’’
within part 142 to ‘‘Administrative
False Claims.’’
SBA is revising 13 CFR 142.1 by
adding a reference to the Administrative
False Claims Act of 2023, Public Law
118–159, sec. 5203, 138 Stat. 2440
(2024).
The AFCA expanded the list of claims
that a Federal agency can pursue by
imposing liability for submissions of
‘‘reverse false claims.’’ A reverse false
claim is when a person acts
improperly—not to obtain money from
the Government—but to avoid having to
pay money to the Government. Thus,
SBA is revising the definition of a
‘‘claim’’ in 13 CFR 142.3 by modifying
paragraph (a)(2) to state that a claim
includes any request, demand, or
submission made to SBA which ‘‘has
the effect of concealing or improperly
avoiding or decreasing an obligation to
pay or transmit property, services, or
money.’’ Additionally, the AFCA
adopted the definition of ‘‘obligation’’
from the Federal False Claims Act (FCA)
(31 U.S.C. 3729–3733). Thus, SBA is
adding a parenthetical to paragraph
(a)(2) to explain that ‘‘obligation’’ has
the meaning given the term in 31 U.S.C.
3729(b).
The AFCA also adopted the definition
of ‘‘material’’ from the FCA. Therefore,
SBA is revising 13 CFR 142.5(a)(2) to
include a parenthetical explaining that
‘‘material’’ has the meaning given the
term in 31 U.S.C. 3729(b).
SBA is revising 13 CFR 142.7 to
replace ‘‘the Program Fraud Civil
Remedies Act’’ with ‘‘the
Administrative False Claims Act.’’
SBA is revising 13 CFR 142.9 to
increase the threshold for a claim or a
group of related claims from $150,000 to
$1,000,000. Additionally, SBA is
restructuring the existing text into a new
paragraph (a) and adding two new
paragraphs. SBA is adding a new
paragraph (b) to this regulation to
provide that the maximum amount of a
claim or a group of related claims shall
be adjusted for inflation in the same
manner and to the same extent as civil
monetary penalties under the Federal
Civil Penalties Inflation Adjustment Act
(28 U.S.C. 2461 note). SBA is adding a
new paragraph (c) to this regulation to
incorporate the revised statute of
limitations included in the AFCA. The
AFCA revised the statute of limitations
for bringing an action to the later of 6
years after the date of the violation or 3
years after the date on which facts
material to the action are known or
reasonably should have been known by
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the agency head, but in no event more
than 10 years after the violation.
SBA is making two minor technical
corrections to 13 CFR 142.12. In
paragraph (a), SBA is replacing ‘‘the
Office of Hearings and Appeals’’ with
‘‘OHA’’ because the term is defined
previously in §142.10. In paragraph (d),
SBA is replacing ‘‘the ALJ’’ with
‘‘OHA.’’
As discussed above, the AFCA revised
the statute of limitations for bringing a
claim and, thus, SBA is revising 13 CFR
142.9 to state when SBA will bring an
action by issuing a complaint and
incorporating the new timeframes set in
the AFCA. Consequently, SBA is
revising 13 CFR 142.14(b) to remove the
six-year limitation on serving the notice
of oral hearing, which incorporated the
previous statutory language in 31 U.S.C.
3808(a) that was stricken and replaced
under the AFCA. The requirement that
the ALJ promptly serve a notice of oral
hearing upon receipt of the complaint
and answer will remain.
The AFCA added a requirement that
the reviewing official notify the
Attorney General in writing not later
than 30 days before entering into any
agreement to compromise or settle
allegations of liability under the AFCA
and before the date on which the
reviewing official is permitted to refer
allegations of liability to a presiding
officer. SBA is revising 13 CFR 142.38
by adding the new notification
requirement to paragraph (b).
Finally, SBA is revising 13 CFR
142.39 to add language from the statute
that states that a civil action to recover
a penalty or assessment under this part
shall be commenced within 3 years after
the date on which the determination of
liability for such penalty or assessment
becomes final.
III. Justification for Direct Final Rule
In general, SBA publishes a rule for
public comment before issuing a final
rule in accordance with the
Administrative Procedure Act. 5 U.S.C.
553. The Administrative Procedure Act
provides an exception to this standard
rulemaking process, however, where an
agency finds good cause to adopt a rule
without prior public participation. 5
U.S.C. 553(b)(B). The good cause
requirement is satisfied when prior
public participation is impracticable,
unnecessary, or contrary to the public
interest.
Agencies typically utilize direct final
rulemakings for routine, non-
controversial regulatory actions that are
unlikely to receive adverse comments.
In direct final rulemaking, an agency
publishes a final rule with a statement
that the rule will go into effect unless
the agency receives significant adverse
comment within a specified period.
Significant adverse comments are
comments that provide strong
justifications why the rule should not be
adopted or for changing the rule. If the
agency receives no significant adverse
comment in response to the direct final
rule, the rule goes into effect on the date
listed in the DATES section without
further notice. If the agency receives
significant adverse comment, the agency
will withdraw the direct final rule prior
to the effective date and may instead
issue a proposed rulemaking.
SBA has determined that prior public
participation is unnecessary, because
the regulatory changes addressed in this
direct final rulemaking are routine, non-
controversial, and not likely to result in
adverse comments. SBA is
implementing changes required by
statute which are already in effect and
is merely updating the regulations in
order to conform to the statute. Because
the changes in this rule are prescribed
by statute, SBA does not expect
significant adverse comments.
Compliance With Executive Orders
12866, 12988, 13132, 13175, 13563,
14192, the Congressional Review Act (5
U.S.C. 801–808), Paperwork Reduction
Act (44 U.S.C., Ch. 35), and the
Regulatory Flexibility Act (5 U.S.C.
601–612)
Executive Orders 12866 and 13563
Executive Order 12866, Regulatory
Planning and Review, requires agencies
to provide a Regulatory Impact Analysis
assessing costs and benefits and
addressing available alternatives for any
‘‘significant regulatory action.’’ The
Office of Management and Budget has
determined that this direct final rule
does not constitute a ‘‘significant
regulatory action.’’
Executive Order 13563, Improving
Regulation and Regulatory Review,
reaffirms the principles of Executive
Order 12866 and requires agencies to
adopt regulations through a process that
involves public participation and, to the
extent feasible, base regulations on the
open exchange of information and
perspectives from affected stakeholders
and the public as a whole. SBA has
developed this direct final rule in a
manner consistent with these
requirements. Moreover, Executive
Order 13563 requires agencies to assess
the benefits and costs of any regulations
and address available alternatives to
direct regulation. This rule implements
statutory changes and is not expected to
have an annual effect on the economy
of $100 million or more or adversely
affect in a material way the economy, a
sector of the economy, productivity,
competition, jobs, the environment,
public health or safety, or State, local,
or tribal governments or communities.
As a result, no Regulatory Impact
Analysis is required.
Executive Order 14192
This rule is not an Executive Order
14192 regulatory action because it is not
significant under Executive Order
12866.
Executive Order 12988
This action meets the 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
preemptive effect or retroactive effect.
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
Executive Order. As such it does not
warrant the preparation of a Federalism
Assessment.
Executive Order 13175
This rule does not have tribal
implications under Executive Order
13175, Consultation and Coordination
with Indian Tribal Governments,
because it does not have a substantial
direct effect on one or more Indian
tribes, on the relationship between the
Federal Government and Indian tribes,
or on the distribution of power and
responsibilities between the Federal
Government and Indian tribes.
Congressional Review Act, 5 U.S.C. 801–
808
This rule has been determined not to
meet the criteria set forth in 5 U.S.C.
804(2). SBA will submit the rule to
Congress and the Government
Accountability Office consistent with
the Congressional Review Act’s
requirements.
Paperwork Reduction Act, 44 U.S.C. Ch.
35
SBA has determined that this rule
does not impose additional reporting or
recordkeeping requirements under the
Paperwork Reduction Act, 44 U.S.C.,
Chapter 35.
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Regulatory Flexibility Act, 5 U.S.C. 601–
612
The Regulatory Flexibility Act (RFA),
5 U.S.C. 601–612, requires
administrative agencies to consider the
effect of their actions on small entities,
small nonprofit enterprises, and small
local governments. Pursuant to the RFA,
when an agency issues a rulemaking,
the agency must prepare a regulatory
flexibility analysis which describes the
impact of the rule on small entities.
However, the RFA requires such
analysis only where notice and
comment rulemaking is required. As
discussed above, SBA has found good
cause that notice and public comment
are impracticable, unnecessary, or
contrary to the public interest.
Accordingly, SBA is not required to
conduct a regulatory flexibility analysis
and is publishing this rule as a direct
final rule without advance notice and
public comment.
List of Subjects in 13 CFR Part 142
Administrative practice and
procedure, Claims, Fraud, Penalties.
For the reasons set forth in the
preamble, the SBA amends 13 CFR part
142 as follows:
PART 142—ADMINISTRATIVE FALSE
CLAIMS ACT REGULATIONS
■ 1. 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).
■ 2. The heading for part 142 is revised
to read as set forth above.
■ 3. Amend §142.1 by revising the first
sentence of paragraph (a) to read as
follows:
§142.1 Overview of regulations.
(a) * * * This part implements the
Program Fraud Civil Remedies Act of
1986, 31 U.S.C. 3801–3812, as amended
by the Administrative False Claims Act
of 2023, Public Law 118–159, sec. 5203,
138 Stat. 2440 (‘‘the Act’’). * * *
* * * * *
■ 4. Amend §142.3 by revising
paragraph (a)(3) to read as follows:
§142.3 What is a claim?
(a) * * *
(3) Made to SBA which has the effect
of concealing or improperly avoiding or
decreasing an obligation to pay or
transmit property, services, or money
(‘‘obligation’’ has the meaning given the
term in 31 U.S.C. 3729(b)).
* * * * *
■ 5. Amend §142.5 by revising
paragraph (a)(2) to read as follows:
§142.5 What is a false claim or statement?
(a) * * *
(2) Includes or is supported by a
written statement which asserts or
contains a material fact which is false,
fictitious, or fraudulent (‘‘material’’ has
the meaning given the term in 31 U.S.C.
3729(b));
* * * * *
§142.7 [Amended]
■ 6. Amend §142.7 by removing
‘‘Program Fraud Civil Remedies Act’’
and adding in its place ‘‘Administrative
False Claims Act’’.
■ 7. Revise §142.9 to read as follows:
§142.9 When will SBA issue a complaint?
(a) SBA will issue a complaint:
(1) If the Attorney General (or
designee) approves the referral of the
allegations for adjudication; and
(2) In a case of submission of false
claims, if the amount of money or the
value of property or services demanded
or requested in a false claim, or a group
of related claims submitted at the same
time, does not exceed $1,000,000. A
group of related claims submitted at the
same time includes only those claims
arising from the same transaction (such
as a grant, loan, application, or contract)
which are submitted together as part of
a single request, demand, or submission.
(b) Adjustment for inflation: the
maximum amount in paragraph (a)(2)
shall be adjusted for inflation in the
same manner and to the same extent as
civil monetary penalties under the
Federal Civil Penalties Inflation
Adjustment Act (28 U.S.C. 2461 note).
(c) The complaint must be served not
later than the later of:
(1) 6 years after the date on which
such claim or statement is made; or
(2) 3 years after the date on which
facts material to the action are known or
reasonably should have been known by
SBA, but in no event later than 10 years
after the date on which the claim or
statement was made.
§142.12 [Amended]
■ 8. Amend §142.12 as follows:
■ a. In paragraph (a), remove ‘‘the Office
of Hearings and Appeals’’ and add in its
place ‘‘OHA’’; and
■ b. In paragraph (d), remove ‘‘the ALJ’’
and add in its place ‘‘OHA’’.
§142.14 [Amended]
■ 9. Amend §142.14 in paragraph (b) by
removing the last sentence.
■ 10. Amend §142.38 by adding a
sentence to the end of paragraph (b) to
read as follows:
§142.38 Can the administrative complaint
be settled voluntarily?
* * * * *
(b) * * * A reviewing official shall
notify the Attorney General in writing
not later than 30 days before entering
into an agreement to compromise or
settle allegations of liability under 31
U.S.C. 3802 and before the date on
which the reviewing official is
permitted to refer allegations of liability
to a Presiding Officer under 31 U.S.C.
3803(d)(2)(B).
* * * * *
■ 11. Amend §142.39 by adding a
sentence at the end to read as follows:
§142.39 How are civil penalties and
assessments collected?
* * * A civil action to recover a
penalty or assessment under this part
shall be commenced within 3 years after
the date on which the determination of
liability for such penalty or assessment
becomes final.
Kelly Loeffler,
Administrator.
[FR Doc. 2026–05459 Filed 3–18–26; 8:45 am]
BILLING CODE 8026–09–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 71
[Docket No. FAA–2024–1122; Airspace
Docket No. 24–AGL–12]
RIN 2120–AA66
Amendment of Class E Airspace;
Paxton, IL
AGENCY: Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
SUMMARY: This action amends the Class
E airspace at Paxton, IL. This action is
the result of an airspace review
conducted due to changes in the
instrument procedures at Paxton
Airport, Paxton, IL. This action brings
the airspace into compliance with FAA
orders and supports instrument flight
rule (IFR) procedures and operations.
DATES: Effective 0901 UTC, July 9, 2026.
The Director of the Federal Register
approves this incorporation by reference
action under 1 CFR part 51, subject to
the annual revision of FAA Order JO
7400.11 and publication of conforming
amendments.
ADDRESSES: A copy of the notice of
proposed rulemaking (NPRM), all
comments received, this final rule, and
all background material may be viewed
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