Development Company Loan Program-Job Opportunity Requirement, 16432-16433 [E9-8157]

Agencies

• SMALL BUSINESS ADMINISTRATION

[Federal Register Volume 74, Number 68 (Friday, April 10, 2009)]
[Notices]
[Pages 16432-16433]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-8157]


=======================================================================
-----------------------------------------------------------------------

SMALL BUSINESS ADMINISTRATION


Development Company Loan Program--Job Opportunity Requirement

AGENCY: U.S. Small Business Administration.

ACTION: Notice, changing of job requirements.

-----------------------------------------------------------------------

SUMMARY: This Notice specifies the job creation or retention 
requirements under SBA's Development Company Loan Program (504 
Program), and the changes made to these requirements by the American 
Recovery and Reinvestment Act of 2009.

DATES: Effective Date: This notice is effective April 10, 2009.
    Applicability Date: The changes to the job creation or retention 
standards made by the American Recovery and Reinvestment Act that are 
specified in this notice apply to new loan applications received on or 
after February 17, 2009.

FOR FURTHER INFORMATION CONTACT: The SBA district office nearest you; 
the list of offices can be found at https://www.sba.gov/localresources/.

SUPPLEMENTARY INFORMATION: 

I. Background

    The American Recovery and Reinvestment Act of 2009 (the Recovery 
Act), Public Law 111-05, was enacted on February 17, 2009 to among 
other things, promote economic recovery by preserving and creating 
jobs, and assisting those most impacted by the severe economic 
conditions facing the nation. Among ARRA's several initiatives to re-
invigorate small businesses is the revision of the job creation goals 
of SBA's 504 Program.
    The purpose of the 504 Program is to foster economic development 
and create and preserve job opportunities in both urban and rural areas 
by providing long-term financing for small business concerns. Loans 
made under the 504 Program are principally used by small businesses to 
build or to purchase long-term fixed assets (mostly acquiring land and 
constructing or renovating commercial buildings) to assist in the 
growth of the business.

II. Job Creation or Retention Requirements

    Under the 504 Program, a 504 loan is required to create or retain a 
minimum number of jobs within two years of the disbursement of the loan 
as a result of the project or to meet other defined economic 
development objectives (13 CFR 120.861-120.862).
    The standards for determining whether a project meets the job 
creation or retention requirements are set forth in section 501(e) of 
the Small Business Investment Act.
    In the Section 504 Loan Application, the borrower will enter the 
number of jobs to be created or retained as a result of the project and 
the CDC will verify that it meets the job creation or retention 
requirements. In addition, the job impact data will continue to be 
entered into SBA's database, and the application data combined with 
data from annual CDC reports will be used to report the total number of 
jobs created or retained.
    To stimulate the growth of small business and create more job 
opportunities, section 504(b) of the Recovery Act, amends the minimum 
number of jobs that are required to be created or retained per dollar 
amount guaranteed by SBA by increasing such dollar amount from $50,000 
to $65,000, as follows:
    (1) A Project must create or retain one Job Opportunity per $65,000 
of 504 loan funding, or
    (2) For Projects that are eligible under the 504 Program under 13 
CFR 120.862, a CDC's portfolio must reflect an average of one Job 
Opportunity for every $65,000 guaranteed by SBA.
    The remaining amounts listed below are unchanged from the amounts 
set forth in section 501(e)(1) and (3) of the Small Business Investment 
Act of 1958:
    (1) A Project must create or retain one Job Opportunity per 
$100,000 of 504

[[Page 16433]]

loan funding in the case of a project of a small manufacturer.
    (2) For Projects in Alaska, Hawaii, State-designated enterprise 
zones, empowerment zones and enterprise communities, labor surplus 
areas, as determined by the Secretary of Labor, and for other areas 
designated by SBA, the CDC's portfolio may average not more than 
$75,000 per job created or retained.

Grady Hedgespeth,
Director, Office of Financial Assistance.
 [FR Doc. E9-8157 Filed 4-9-09; 8:45 am]
BILLING CODE 8025-01-P