Proposal To Adopt the 2010 Small Business Jobs Act Interim Rule as an Alternative Size Standard for Defining a Small Business for Export-Import Bank Programs, 83836-83838 [2016-28083]
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Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Notices
include the deleted uses identified in
Table 2 of Unit III., except for export
consistent with FIFRA section 17 or for
proper disposal.
Persons other than the registrant may
sell, distribute, or use existing stocks of
the affected cancelled products until
supplies are exhausted, provided that
such sale, distribution, or use is
consistent with the terms of the
previously approved labeling on, or that
accompanied, the cancelled products.
A. For Propoxur Products 279–3395,
3862–135, 6218–24, 11556–33, 89459–
39, 89459–28 Identified in Table 1 of
Unit III
FMC Corporation requested that the
voluntary cancellation of propoxur
begin on December 31, 2017. EPA
anticipates allowing the registrants to
sell and distribute existing stocks of
these products until December 31, 2017,
which will be the effective product
cancellation date. Thereafter, registrants
will be prohibited from selling or
distributing the propoxur products
identified in Table 1 of Unit III., except
for export consistent with FIFRA section
17 (7 U.S.C. 136o) or for proper
disposal.
Persons other than the registrant may
sell, distribute, or use existing stocks of
the affected cancelled products until
supplies are exhausted, provided that
such sale, distribution, or use is
consistent with the terms of the
previously approved labeling on, or that
accompanied, the cancelled products.
sradovich on DSK3GMQ082PROD with NOTICES
the action. If the requests for voluntary
cancellation and amendments to
terminate uses are granted, the Agency
intends to publish the cancellation
order in the Federal Register.
In any order issued in response to
these requests for cancellation of
product registrations and for
amendments to terminate uses, EPA
proposes to include the following
provisions for the treatment of any
existing stocks of the products listed in
Tables 1 and 2 of Unit III.
Dated: November 14, 2016.
Yu-Ting Guilaran,
Director, Pesticide Re-Evaluation Division,
Office of Pesticide Programs.
B. For All Other Products Identified in
Table 1 of Unit III
For the other voluntary product
cancellations noted, registrants will be
permitted to sell and distribute existing
stocks of voluntarily cancelled products
for 1 year after the effective date of the
cancellation, which will be the date of
publication of the cancellation order in
the Federal Register. Thereafter,
registrants will be prohibited from
selling or distributing the products
identified in Table 1 of Unit III., except
for export consistent with FIFRA section
17 (7 U.S.C. 136o) or for proper
disposal.
Once EPA has approved product
labels reflecting the requested
amendments to terminate uses, the
registrant will be permitted to sell or
distribute products under the previously
approved labeling for a period of 18
months after the date of Federal
Register publication of the cancellation
order, unless other restrictions have
been imposed. Thereafter, the registrant
will be prohibited from selling or
distributing the products whose labels
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16:52 Nov 21, 2016
Jkt 241001
Authority: 7 U.S.C. 136 et seq.
[FR Doc. 2016–28096 Filed 11–21–16; 8:45 am]
BILLING CODE 6560–50–P
EXPORT-IMPORT BANK
[Public Notice EIB–2016–0004]
Proposal To Adopt the 2010 Small
Business Jobs Act Interim Rule as an
Alternative Size Standard for Defining
a Small Business for Export-Import
Bank Programs
Export-Import Bank of the
United States.
ACTION: Notice and request for
comments.
AGENCY:
The Export-Import Bank of
the United States (‘‘EXIM Bank’’)
proposes to adopt the Interim Rule (as
defined below) set forth in Section 1116
of the Small Business Jobs Act of 2010
(Pub. L. 111–240) (the ‘‘Jobs Act’’) as an
alternative standard for defining a small
business for all of its programs. The Jobs
Act mandated that the U.S. Small
Business Administration (‘‘SBA’’) use
maximum tangible net worth and
average net income as an alternative to
the use of industry based size standards
as follows: Not more than $15 million
in tangible net worth and $5 million in
average net income after Federal income
taxes to define a small business concern
(‘‘Interim Rule’’). The SBA currently
uses the Interim Rule for its business
loans under Section 7(a) of the Small
Business Act (‘‘7(a) Loan Program’’) and
development company loans under Title
V of the Small Business Investment Act
of 1958 (‘‘504 Loan Program’’, and
together with the 7(a) Loan Program, the
‘‘SBA Loan Programs’’) to determine
size eligibility for an applicant if such
applicant does not meet the size
standards that it has developed for
individual industries as defined under
the North American Industry
Classification System (‘‘NAICS’’). If
approved by the SBA’s Administrator,
SUMMARY:
PO 00000
Frm 00040
Fmt 4703
Sfmt 4703
EXIM Bank will apply the Interim Rule
as an alternative size standard in
addition to using size standards
established by SBA for individual
industries to determine whether or not
participants of EXIM programs can be
categorized as small business concerns.
DATES: Comments must be received on
or before December 6, 2016 to be
assured of consideration.
ADDRESSES: Comments may be
submitted through the Federal
rulemaking portal at
WWW.REGULATIONS.GOV. To submit
a comment, enter EIB–2016–0004 under
the heading ‘‘enter keyword or ID’’ and
select ‘‘Search.’’ Follow the instructions
provided at the Submit a Comment
screen. Please include your name,
company name (if any) and EIB–2016–
0004 on any attached document.
Comments received will be made
available to the public at
WWW.REGULATIONS.GOV.
PURPOSE AND USE: EXIM Bank proposes
to align its size standards for
determining a small business with
SBA’s current standards for the SBA
Loan Programs by adopting the Interim
Rule, set forth in the Jobs Act. The
Interim Rule would be used as an
alternative size standard, in addition to
and not a replacement of, SBA’s
industry based size standards currently
used for defining a ‘‘small business
concern’’ for EXIM Bank’s programs and
reporting obligations. The Interim Rule
provides that an applicant for a SBA
Loan Program may be eligible for such
a loan if (i) the tangible net worth of the
applicant is not more than $15,000,000;
and (ii) the average net income after
Federal income taxes (excluding any
carry-over losses) of the applicant for
the two full fiscal years before the date
of the application is not more than
$5,000,000. If the request to adopt the
Interim Rule as an alternative size
standard is approved by the SBA’s
Administrator for EXIM Bank programs,
any applicant for any EXIM Bank
product would be screened to determine
whether or not it is a small business
concern as follows: (i) First by using the
industry-based size standards and (ii)
then by applying the Interim Rule, if
such applicant does not qualify as a
small business concern under the
industry based- size standards. It is
EXIM Bank’s belief and understanding
that the approval for EXIM Bank to
adopt the Interim Rule would align its
small business size definitions with
SBA’s current practices and bring
consistency to the marketplace, would
possibly increase the number of
applicants qualifying as a small
business concern for EXIM Bank’s
E:\FR\FM\22NON1.SGM
22NON1
Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Notices
sradovich on DSK3GMQ082PROD with NOTICES
programs and increase the accuracy of
EXIM Bank’s reporting to Congress on
its small business activities.
as appropriate and necessary to
accomplish those mandates, following
approval by the SBA’s Administrator.
Legal Framework and Statutory
Background
Section 2(b)(1)(E)(v) of the EXIM Bank
Charter requires EXIM Bank to make
available not less than 25% of its overall
loan, guarantee and insurance authority
to support the financing of exports by
‘‘small business concerns.’’ The Charter
further states that a ‘‘small business
concern’’ is ‘‘as defined under Section 3
of the Small Business Act’’. In addition
to criteria for determining a ‘‘small
business concern’’ set forth therein,
Section 3 of the Small Business Act
grants the Administrator of the SBA the
general authority to establish small
business size standards for Federal
government programs. Through this
authority, SBA has promulgated
industry-specific size standards which
determine eligibility as a small business
for more than 1000 industry categories
as defined by the North American
Industry Classification System (NAICS).
Historically, EXIM Bank has relied on
these industry-based size standards to
be able to determine which participants
in its programs can be considered a
small business concern.
Under the Jobs Act, Congress
amended the definition of ‘‘Small
Business Concerns’’ in Section 3(a) of
the Act by adding an ‘‘Alternative Size
Standard’’ as an additional component
of such definition. Under the new
Section 3(a)(5) of the Small Business
Act, Congress directed the SBA to
establish an alternative size standard
using maximum tangible net worth and
average net income for applicants for
the SBA Loan Programs. Further, the
Jobs Act provided that until the SBA
establishes a permanent tangible net
worth and net income based alternative
size standard, the Interim Rule would
enable applicants to be eligible for the
SBA Loan Programs if the applicant’s:
(1) Tangible net worth is not more than
$15 million, and (2) the average net
income after federal income taxes for
the two fiscal years prior to the date of
application is not more than $5 million.
As of the publication of this notice, the
SBA has not established a permanent
alternative size standard definition and
as a result, the SBA continues to apply
the Interim Rule to define a small
business concern for the SBA Loan
Programs, in addition to using the
industry based size standards. Based on
EXIM Bank’s Charter which emphasizes
assistance to small business concerns
and its mandate to adhere to SBA’s
definitions of small business, EXIM
Bank proposes to adopt the Interim Rule
Business Rationale
An important rationale for aligning
EXIM Bank’s definition of small
business with the SBA’s definition as it
applies to the SBA Loan Programs is
that EXIM Bank programs are
complementary and/or work in
conjunction with the 7(a) Loan
Programs. As a result, we believe that
EXIM Bank and the SBA may often
serve many of the same concerns.
However, currently, small businesses
that qualify for 7(a) Loan Programs
under the Interim Rule but not under
industry based size standards would not
be considered small businesses for
programs offered by EXIM Bank.
Notwithstanding a small business’s
eligibility for the SBA Loan Programs
under the Interim Rule, the same small
business may potentially be subject to
different size criteria for EXIM Bank’s
program’s because EXIM Bank is
currently unable to use the Interim Rule
to determine whether a concern can be
considered a small business for its
programs. This inconsistency can cause
confusion in the marketplace and cause
the same entities to be treated
differently by SBA and EXIM Bank even
though such entities may be evaluated
for similar purposes. It also poses a
difficulty for EXIM Bank in providing
accurate reporting on the size of its
participants to Congress because the
same concern may be considered a
small business under a SBA Loan
Program but not under an EXIM Bank
program. Accordingly, EXIM Bank
proposes to align its small business size
criteria with the Interim Rule so that
small businesses that are eligible for
SBA Loan Programs under the Interim
Rule will also be considered small
businesses for EXIM Bank purposes.
The 7(a) Loan Program represents the
bulk of SBA’s small business guaranteed
loans. Furthermore, SBA’s working
capital and all of its international
guaranteed loan programs fall under the
umbrella of the 7(a) Loan Program. The
SBA’s international programs include
the Export Express Loan Program,
Export Working Capital Program and the
International Trade Loan Program. In
each case, SBA is authorized to
guarantee loans to small businesses
using its industry based size standards
or using the Interim Rule for businesses
that otherwise may not be eligible under
the industry based size standards.
Similarly, EXIM Bank programs also
provide various financing and other
support to small businesses through
working capital programs, medium and
VerDate Sep<11>2014
16:52 Nov 21, 2016
Jkt 241001
PO 00000
Frm 00041
Fmt 4703
Sfmt 4703
83837
long term guaranteed credit, direct
loans, trade credit insurance and other
financial support that facilitates the
export of US made goods and services.
Although EXIM Bank programs are
available to businesses of all sizes,
significant efforts are made to make
these programs accessible to small
businesses, and some EXIM Bank
programs are available exclusively to
small businesses, such as Express
Insurance. The SBA may require trade
credit insurance on its loan guarantee
programs where the borrower is
exporting on open account terms. These
credit insurance requirements could be
met by EXIM Bank through the Express
Insurance program. As further incentive,
EXIM Bank provides a 25% discount on
insurance premiums for SBA borrowers
who use any one of the many EXIM
Bank insurance policy options. Other
EXIM Bank programs are likewise useful
to current SBA borrowers. For example,
if a borrower’s working capital needs
exceed $5 million (the maximum loan
amount under the 7(a) Loan Program),
the EXIM Bank Business Credit Working
Capital Guarantee Program (‘‘WCGP’’)
can be used to replace the borrower’s
SBA guaranteed working capital
facilities. In fact, to facilitate such a
transition, EXIM Bank and the SBA
share a common application with
respect to these working capital
guarantee programs. If the borrower
needs to sell on terms longer than the
three year maturity authorized for the
SBA’s Export Working Capital Program,
EXIM Bank has a range of medium and
long term buyer options that can ensure
the booking of a sale. Given the
complementary nature and similarities
of the 7(a) Loan Program and EXIM
Bank financing products, EXIM Bank
believes it is in the best interest of the
public that the Interim Rule be adopted
for EXIM Bank products so that the
standards for a small business are
consistent between these federal
agencies.
Impact of Adopting the Interim Rule
EXIM Bank believes that the adoption
of the Interim Rule for its programs
would enable business concerns that do
not qualify as small business concerns
under the industry based size standards
to qualify as small business concerns
under the Interim Rule. EXIM Bank also
believes that some business concerns
that currently qualify as small business
concerns for the SBA Loan Programs but
not for EXIM Bank Programs will also
qualify as small business concerns
under the Interim Rule. EXIM Bank
intends to collect data showing the
amount of participants that qualify as a
small business concern under the
E:\FR\FM\22NON1.SGM
22NON1
83838
Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Notices
Interim Rule if the Interim Rule is
approved for EXIM Bank programs.
Request for Comments: EXIM Bank
seeks comments from the public with
respect to its proposal to use the Interim
Rule as an alternative size standard in
addition to the industry based standards
in determining what participants of
EXIM Bank programs can be considered
a small business. Commenters
addressing this proposed rule should
include data and/or other information
they consider relevant in support of
their comments.
INFORMATION ON DECISION: Information
on the final decision for this proposal
will be available in the Federal Register.
In accordance with SBA’s small
business size regulations, specifically 13
CFR 121.901–904, EXIM Bank must
evaluate the comments and must submit
them with its recommendation to the
SBA’s Administrator’s approval. The
public must be made aware that the
proposed alternative size standard
under the Interim Rule will not take
effect until EXIM Bank publishes a final
notice in the Federal Register, which
will only occur after the SBA’s
Administrator has approved the
adoption of the Interim Rule for EXIM
Bank programs as an alternative size
standard.
FEDERAL COMMUNICATIONS
COMMISSION
Open Commission Meeting, Thursday,
November 17, 2016
November 10, 2016.
The Federal Communications
Commission will hold an Open Meeting
on the subjects listed below on
Thursday, November 17, 2016 which is
scheduled to commence at 10:30 a.m. in
Room TW–C305, at 445 12th Street SW.,
Washington, DC.
Joyce B. Stone,
Program Specialist, Office of the General
Counsel.
[FR Doc. 2016–28083 Filed 11–21–16; 8:45 am]
BILLING CODE 6690–01–P
Item No.
Bureau
Subject
1 ...................
WIRELESS TELECOMMUNICATIONS ....
2 ...................
WIRELESS TELECOMMUNICATIONS ....
3 ...................
WIRELINE COMPETITION .......................
4 ...................
MEDIA .......................................................
TITLE: Universal Service Reform—Mobility Fund (WT Docket No. 10–208); Connect
America Fund (WC Docket No. 10–90); A National Broadband Plan for Out Future (GN Docket No. 09–51); Establishing Just and Reasonable Rates for Local
Exchange Carriers (WC Docket No. 07–135); High-Cost Universal Service Support (WC Docket No. 05–337); Developing an Unified Intercarrier Compensation
Regime (CC Docket No. 01–92); Federal-State Joint Board on Universal Service
(CC Docket No. 96–45); Lifeline and Link-Up (WC Docket No. 03–109).
SUMMARY: The Commission will consider a Report and Order that would adopt
rules for the second phase of the Mobility Fund, which would provide ongoing
universal service support dedicated to expanding the availability of mobile
broadband networks.
TITLE: Roaming Obligations of Commercial Mobile Service Providers and Regulatory Classification of Voice over LTE Service (WT Docket No. 16–356)
SUMMARY: The Commission will consider a Notice of Proposed Rulemaking that
would seek comment on proposals to implement a unified roaming standard and
to classify Voice over LTE.
TITLE: Business Data Services in an Internet Protocol Environment (WC Docket
No. 16–143); Investigation of Certain Price Cap Local Exchange Carrier Business
Data Services Tariff Pricing Plans (WC Docket No. 15–247); Technology Transitions (GN Docket No. 13–5); Special Access for Price Cap Local Exchange Carriers (WC Docket No. 05–25); AT&T Corporation Petition for Rulemaking to Reform Regulation of Incumbent Local Exchange Carrier Rates for Interstate Special
Access Services (RM–10593).
SUMMARY: The Commission will consider a Report and Order and Second Further
Notice of Proposed Rulemaking that would allow for light-touch regulation of
packet-based Business Data Services and retain and update price cap regulation
for lower-bandwidth TDM-based Business Data Services to ensure that lack of
competition does not unfairly harm commercial customers or the consumers who
rely upon these services.
TITLE: Video Description: Implementation of the Twenty-First Century Communications and Video Accessibility Act of 2010 (MB Docket No. 11–43).
SUMMARY: The Commission will consider a Report and Order which addresses the
amount of video described programming required to be made available to consumers.
*
*
*
*
*
Consent Agenda
sradovich on DSK3GMQ082PROD with NOTICES
The Commission will consider the
following subjects listed below as a
1 ...................
ENFORCEMENT .......................................
2 ...................
GENERAL COUNSEL ...............................
VerDate Sep<11>2014
16:52 Nov 21, 2016
Jkt 241001
PO 00000
consent agenda and these items will not
be presented individually:
TITLE: Enforcement Bureau Action.
SUMMARY: The Commission will consider an enforcement action.
TITLE: In the Matters of Lara V. Carlson on Request for Inspection of Records
(FOIA Control No. 2015–601).
SUMMARY: The Commission will consider a Memorandum Opinion and Order concerning Applications for Review filed by Lara Carlson which appealed a decision
by the Wireline Competition Bureau addressing a Freedom of Information Act request.
Frm 00042
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]]>Agencies
[Federal Register Volume 81, Number 225 (Tuesday, November 22, 2016)]
[Notices]
[Pages 83836-83838]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-28083]
=======================================================================
-----------------------------------------------------------------------
EXPORT-IMPORT BANK
[Public Notice EIB-2016-0004]
Proposal To Adopt the 2010 Small Business Jobs Act Interim Rule
as an Alternative Size Standard for Defining a Small Business for
Export-Import Bank Programs
AGENCY: Export-Import Bank of the United States.
ACTION: Notice and request for comments.
-----------------------------------------------------------------------
SUMMARY: The Export-Import Bank of the United States (``EXIM Bank'')
proposes to adopt the Interim Rule (as defined below) set forth in
Section 1116 of the Small Business Jobs Act of 2010 (Pub. L. 111-240)
(the ``Jobs Act'') as an alternative standard for defining a small
business for all of its programs. The Jobs Act mandated that the U.S.
Small Business Administration (``SBA'') use maximum tangible net worth
and average net income as an alternative to the use of industry based
size standards as follows: Not more than $15 million in tangible net
worth and $5 million in average net income after Federal income taxes
to define a small business concern (``Interim Rule''). The SBA
currently uses the Interim Rule for its business loans under Section
7(a) of the Small Business Act (``7(a) Loan Program'') and development
company loans under Title V of the Small Business Investment Act of
1958 (``504 Loan Program'', and together with the 7(a) Loan Program,
the ``SBA Loan Programs'') to determine size eligibility for an
applicant if such applicant does not meet the size standards that it
has developed for individual industries as defined under the North
American Industry Classification System (``NAICS''). If approved by the
SBA's Administrator, EXIM Bank will apply the Interim Rule as an
alternative size standard in addition to using size standards
established by SBA for individual industries to determine whether or
not participants of EXIM programs can be categorized as small business
concerns.
DATES: Comments must be received on or before December 6, 2016 to be
assured of consideration.
ADDRESSES: Comments may be submitted through the Federal rulemaking
portal at WWW.REGULATIONS.GOV. To submit a comment, enter EIB-2016-0004
under the heading ``enter keyword or ID'' and select ``Search.'' Follow
the instructions provided at the Submit a Comment screen. Please
include your name, company name (if any) and EIB-2016-0004 on any
attached document. Comments received will be made available to the
public at WWW.REGULATIONS.GOV.
PURPOSE AND USE: EXIM Bank proposes to align its size standards for
determining a small business with SBA's current standards for the SBA
Loan Programs by adopting the Interim Rule, set forth in the Jobs Act.
The Interim Rule would be used as an alternative size standard, in
addition to and not a replacement of, SBA's industry based size
standards currently used for defining a ``small business concern'' for
EXIM Bank's programs and reporting obligations. The Interim Rule
provides that an applicant for a SBA Loan Program may be eligible for
such a loan if (i) the tangible net worth of the applicant is not more
than $15,000,000; and (ii) the average net income after Federal income
taxes (excluding any carry-over losses) of the applicant for the two
full fiscal years before the date of the application is not more than
$5,000,000. If the request to adopt the Interim Rule as an alternative
size standard is approved by the SBA's Administrator for EXIM Bank
programs, any applicant for any EXIM Bank product would be screened to
determine whether or not it is a small business concern as follows: (i)
First by using the industry-based size standards and (ii) then by
applying the Interim Rule, if such applicant does not qualify as a
small business concern under the industry based- size standards. It is
EXIM Bank's belief and understanding that the approval for EXIM Bank to
adopt the Interim Rule would align its small business size definitions
with SBA's current practices and bring consistency to the marketplace,
would possibly increase the number of applicants qualifying as a small
business concern for EXIM Bank's
[[Page 83837]]
programs and increase the accuracy of EXIM Bank's reporting to Congress
on its small business activities.
Legal Framework and Statutory Background
Section 2(b)(1)(E)(v) of the EXIM Bank Charter requires EXIM Bank
to make available not less than 25% of its overall loan, guarantee and
insurance authority to support the financing of exports by ``small
business concerns.'' The Charter further states that a ``small business
concern'' is ``as defined under Section 3 of the Small Business Act''.
In addition to criteria for determining a ``small business concern''
set forth therein, Section 3 of the Small Business Act grants the
Administrator of the SBA the general authority to establish small
business size standards for Federal government programs. Through this
authority, SBA has promulgated industry-specific size standards which
determine eligibility as a small business for more than 1000 industry
categories as defined by the North American Industry Classification
System (NAICS). Historically, EXIM Bank has relied on these industry-
based size standards to be able to determine which participants in its
programs can be considered a small business concern.
Under the Jobs Act, Congress amended the definition of ``Small
Business Concerns'' in Section 3(a) of the Act by adding an
``Alternative Size Standard'' as an additional component of such
definition. Under the new Section 3(a)(5) of the Small Business Act,
Congress directed the SBA to establish an alternative size standard
using maximum tangible net worth and average net income for applicants
for the SBA Loan Programs. Further, the Jobs Act provided that until
the SBA establishes a permanent tangible net worth and net income based
alternative size standard, the Interim Rule would enable applicants to
be eligible for the SBA Loan Programs if the applicant's: (1) Tangible
net worth is not more than $15 million, and (2) the average net income
after federal income taxes for the two fiscal years prior to the date
of application is not more than $5 million. As of the publication of
this notice, the SBA has not established a permanent alternative size
standard definition and as a result, the SBA continues to apply the
Interim Rule to define a small business concern for the SBA Loan
Programs, in addition to using the industry based size standards. Based
on EXIM Bank's Charter which emphasizes assistance to small business
concerns and its mandate to adhere to SBA's definitions of small
business, EXIM Bank proposes to adopt the Interim Rule as appropriate
and necessary to accomplish those mandates, following approval by the
SBA's Administrator.
Business Rationale
An important rationale for aligning EXIM Bank's definition of small
business with the SBA's definition as it applies to the SBA Loan
Programs is that EXIM Bank programs are complementary and/or work in
conjunction with the 7(a) Loan Programs. As a result, we believe that
EXIM Bank and the SBA may often serve many of the same concerns.
However, currently, small businesses that qualify for 7(a) Loan
Programs under the Interim Rule but not under industry based size
standards would not be considered small businesses for programs offered
by EXIM Bank. Notwithstanding a small business's eligibility for the
SBA Loan Programs under the Interim Rule, the same small business may
potentially be subject to different size criteria for EXIM Bank's
program's because EXIM Bank is currently unable to use the Interim Rule
to determine whether a concern can be considered a small business for
its programs. This inconsistency can cause confusion in the marketplace
and cause the same entities to be treated differently by SBA and EXIM
Bank even though such entities may be evaluated for similar purposes.
It also poses a difficulty for EXIM Bank in providing accurate
reporting on the size of its participants to Congress because the same
concern may be considered a small business under a SBA Loan Program but
not under an EXIM Bank program. Accordingly, EXIM Bank proposes to
align its small business size criteria with the Interim Rule so that
small businesses that are eligible for SBA Loan Programs under the
Interim Rule will also be considered small businesses for EXIM Bank
purposes.
The 7(a) Loan Program represents the bulk of SBA's small business
guaranteed loans. Furthermore, SBA's working capital and all of its
international guaranteed loan programs fall under the umbrella of the
7(a) Loan Program. The SBA's international programs include the Export
Express Loan Program, Export Working Capital Program and the
International Trade Loan Program. In each case, SBA is authorized to
guarantee loans to small businesses using its industry based size
standards or using the Interim Rule for businesses that otherwise may
not be eligible under the industry based size standards. Similarly,
EXIM Bank programs also provide various financing and other support to
small businesses through working capital programs, medium and long term
guaranteed credit, direct loans, trade credit insurance and other
financial support that facilitates the export of US made goods and
services. Although EXIM Bank programs are available to businesses of
all sizes, significant efforts are made to make these programs
accessible to small businesses, and some EXIM Bank programs are
available exclusively to small businesses, such as Express Insurance.
The SBA may require trade credit insurance on its loan guarantee
programs where the borrower is exporting on open account terms. These
credit insurance requirements could be met by EXIM Bank through the
Express Insurance program. As further incentive, EXIM Bank provides a
25% discount on insurance premiums for SBA borrowers who use any one of
the many EXIM Bank insurance policy options. Other EXIM Bank programs
are likewise useful to current SBA borrowers. For example, if a
borrower's working capital needs exceed $5 million (the maximum loan
amount under the 7(a) Loan Program), the EXIM Bank Business Credit
Working Capital Guarantee Program (``WCGP'') can be used to replace the
borrower's SBA guaranteed working capital facilities. In fact, to
facilitate such a transition, EXIM Bank and the SBA share a common
application with respect to these working capital guarantee programs.
If the borrower needs to sell on terms longer than the three year
maturity authorized for the SBA's Export Working Capital Program, EXIM
Bank has a range of medium and long term buyer options that can ensure
the booking of a sale. Given the complementary nature and similarities
of the 7(a) Loan Program and EXIM Bank financing products, EXIM Bank
believes it is in the best interest of the public that the Interim Rule
be adopted for EXIM Bank products so that the standards for a small
business are consistent between these federal agencies.
Impact of Adopting the Interim Rule
EXIM Bank believes that the adoption of the Interim Rule for its
programs would enable business concerns that do not qualify as small
business concerns under the industry based size standards to qualify as
small business concerns under the Interim Rule. EXIM Bank also believes
that some business concerns that currently qualify as small business
concerns for the SBA Loan Programs but not for EXIM Bank Programs will
also qualify as small business concerns under the Interim Rule. EXIM
Bank intends to collect data showing the amount of participants that
qualify as a small business concern under the
[[Page 83838]]
Interim Rule if the Interim Rule is approved for EXIM Bank programs.
Request for Comments: EXIM Bank seeks comments from the public with
respect to its proposal to use the Interim Rule as an alternative size
standard in addition to the industry based standards in determining
what participants of EXIM Bank programs can be considered a small
business. Commenters addressing this proposed rule should include data
and/or other information they consider relevant in support of their
comments.
INFORMATION ON DECISION: Information on the final decision for this
proposal will be available in the Federal Register.
In accordance with SBA's small business size regulations,
specifically 13 CFR 121.901-904, EXIM Bank must evaluate the comments
and must submit them with its recommendation to the SBA's
Administrator's approval. The public must be made aware that the
proposed alternative size standard under the Interim Rule will not take
effect until EXIM Bank publishes a final notice in the Federal
Register, which will only occur after the SBA's Administrator has
approved the adoption of the Interim Rule for EXIM Bank programs as an
alternative size standard.
Joyce B. Stone,
Program Specialist, Office of the General Counsel.
[FR Doc. 2016-28083 Filed 11-21-16; 8:45 am]
BILLING CODE 6690-01-P
