Community Advantage Pilot Program, 6619-6620 [2012-2798]

Download as PDF Federal Register / Vol. 77, No. 26 / Wednesday, February 8, 2012 / Notices SECURITIES AND EXCHANGE COMMISSION [Release No. 34–66208; File No. SR–Phlx– 2012–06] Self-Regulatory Organizations; NASDAQ OMX PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending the Real-Time Risk Management Fee and Other Clarifying Amendments January 20, 2012. Correction In notice document 2012–1583 appearing on pages 4077–4079 in the issue of January 26, 2012 make the following correction: On page 4079, in the first column, in the last full paragraph, in the last sentence, ‘‘February 13, 2012’’, should read ‘‘February 16, 2012.’’ [FR Doc. C1–2012–1583 Filed 2–7–12; 8:45 am] BILLING CODE 1505–01–D SMALL BUSINESS ADMINISTRATION Community Advantage Pilot Program U.S. Small Business Administration. ACTION: Notice of changes to Community Advantage Pilot Program. AGENCY: On February 18, 2011, SBA published a notice introducing the Community Advantage Pilot Program. In that notice, SBA provided an overview of the Community Advantage Pilot Program requirements, including the application process to participate, and SBA modified or waived as appropriate certain regulations, which otherwise apply to the 7(a) loan program, for the Community Advantage Pilot Program. SBA continues to refine and improve the design of the Community Advantage Pilot Program. To support SBA’s commitment to expanding access to capital for small businesses and entrepreneurs in underserved markets, SBA is issuing this Notice to revise certain program requirements, including certain of the regulatory waivers. DATES: Effective Date: This Notice is effective February 8, 2012. Applicability Date: This Notice applies to Community Advantage Pilot Program loan applications (or requests for loan numbers submitted under a lender’s delegated authority) approved by SBA on or after February 8, 2012. FOR FURTHER INFORMATION CONTACT: Grady B. Hedgespeth, Director, Office of Financial Assistance, U.S. Small Business Administration, 409 Third tkelley on DSK3SPTVN1PROD with NOTICES SUMMARY: VerDate Mar<15>2010 14:54 Feb 07, 2012 Jkt 226001 Street SW., Washington DC 20416; (202) 205–7562; grady.hedgespeth@sba.gov. SUPPLEMENTARY INFORMATION: On February 18, 2011, SBA issued a notice and request for comments introducing the Community Advantage Pilot Program (‘‘CA Pilot Program’’) (76 FR 9626). The CA Pilot Program was introduced to increase SBA-guaranteed loans to small businesses in underserved markets. The February 18, 2011 notice provided an overview of the CA Pilot Program requirements and, pursuant to the authority provided to SBA under 13 CFR 120.3 to suspend, modify or waive certain regulations in establishing and testing pilot loan initiatives, SBA modified or waived as appropriate certain regulations which otherwise apply to 7(a) loans for the CA Pilot Program. SBA continues to refine and improve the design of the CA Pilot Program and, on September 12, 2011, SBA issued a notice modifying certain of those regulatory waivers in order to permit Community Advantage Lenders (‘‘CA Lenders’’) to pledge loans made under the CA Pilot Program (‘‘CA loans’’) as collateral for certain lender financings that are approved by SBA. (76 FR 56262) In response to comments received on the CA Pilot Program and to further support SBA’s commitment to expanding access to capital for small businesses and entrepreneurs in underserved markets, SBA is issuing this Notice to revise several of the original program requirements, including certain regulatory waivers, as described more fully below. In the February 18, 2011 notice, SBA waived the regulations at 13 CFR 120.213, 120.214 and 120.215 and set the maximum allowable interest rate that CA Lenders may charge for CA loans at prime + 4%. SBA is now increasing the maximum allowable rate that a CA Lender may charge a borrower to prime + 6%. Therefore, SBA is continuing to waive the regulations at 13 CFR 120.213, 120.214 and 120.215 to allow CA Lenders to charge prime + 6% on CA Loans. Additionally, in response to comments received on the initial notice announcing the CA Pilot Program, SBA is modifying the program requirements to allow participating CA Lenders to contract with Lender Service Providers (LSPs) as defined at 13 CFR 103.1(d). In accordance with Agency regulations at 13 CFR 120.410, a CA Lender must have a continuing ability to evaluate, process, close, disburse, service, liquidate and litigate small business loans. A CA Lender may contract with a third party (an LSP) to assist with one or more of these functions. However, the CA PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 6619 Lender itself, not the LSP, has ultimate responsibility for evaluating, processing, closing, and liquidating its SBA loan portfolio. SBA is also removing ‘‘Tier Two— Conditional Delegation’’ from the levels of delegated authority that a CA Lender may receive. Thus, there will only be two distinct categories: delegated authority and non-delegated authority. The remaining pilot program requirements pertaining to delegated authority, including how to request delegated authority and when a CA Lender can begin processing CA loans using delegated authority, remain unchanged. SBA is further modifying the requirements for CA Lenders to sell loans in the secondary market by allowing CA Lenders to request authority either at the time of application or after one year of participation. CA Lenders granted permission for secondary market sales must have additional reserves and must complete additional training related to secondary market activities and requirements before they are allowed to initiate secondary market sales. Finally, in response to comments received on the initial notice announcing the CA Pilot Program, SBA is revising the original lender oversight strategy to better clarify the expected costs and schedule of oversight. The February 18, 2011 notice provided that all participating lenders will receive an examination or review after the first year of operation. The revised strategy removes this requirement and explains that SBA will monitor CA Lenders using various oversight tools, including but not limited to Off-Site Reviews, Desk Reviews, Agreed Upon Procedures Onsite Reviews, On-site Risk Based Reviews and On-Site Examinations. SBA’s Office of Credit Risk Management (OCRM) will evaluate the CA Lender’s level of activity, performance metrics, risk rating, effectiveness in reaching SBA targeted underserved market segments and other relevant information to determine the appropriate oversight tool(s) to employ. Lender risk evaluations will also include a review of information from SBA’s processing, servicing and liquidation/guaranty purchase centers. SBA anticipates that the cost for off-site monitoring through desk reviews conducted by OCRM will be approximately $150 per $1 million in loans outstanding. Additional costs for more extensive reviews and examinations will vary based on the CA Lender’s portfolio size and performance, as well as OCRM’s assessment of the CA Lender. E:\FR\FM\08FEN1.SGM 08FEN1 6620 Federal Register / Vol. 77, No. 26 / Wednesday, February 8, 2012 / Notices All other SBA guidelines and regulatory waivers related to the CA Pilot Program remain unchanged. In connection with the CA Pilot Program, SBA also issued a Community Advantage Participant Guide to provide more detailed guidance on the CA Pilot Program requirements. This guide was posted on SBA’s Web site at https:// www.sba.gov. SBA has issued a revised Community Advantage Participant Guide that incorporates all of these changes. The revised Community Advantage Participant Guide is available on SBA’s Web site at https:// www.sba.gov/sites/default/files/files/ CA%20-%20Participants%20Guide.pdf. In addition to issuing this Notice and the revised CA Participant Guide, SBA will modify SBA Forms 2301, Parts A, B, C and D to reflect these changes. Finally, SBA will modify the Community Advantage Lender Participation Application (SBA Form 2301, Part E). The application form also may be found on SBA’s Web site at https://www.sba.gov/sites/default/files/ tools_sbf_forms_2301e.pdf. SBA may provide additional guidance, through SBA notices, which may also be published on SBA’s Web site at https://www.sba.gov/category/ lender-navigation/forms-notices-sops/ notices. Questions regarding the CA Pilot Program may be directed to the Lender Relations Specialist in the local SBA district office. The local SBA district office may be found at https:// www.sba.gov/about-offices-list/2. Authority: 15 U.S.C. 636(a)(25) and 13 CFR 120.3. Karen G. Mills, Administrator. [FR Doc. 2012–2798 Filed 2–7–12; 8:45 am] BILLING CODE 8025–01–P SMALL BUSINESS ADMINISTRATION [Disaster Declaration #12998 and #12999] Texas Disaster #TX–00385 U.S. Small Business Administration. ACTION: Notice. AGENCY: This is a notice of an Administrative declaration of a disaster for the State of Texas dated 01/30/2012. Incident: Severe Storms and Flooding. Incident Period: 01/09/2012. DATES: Effective Date: 01/30/2012. Physical Loan Application Deadline Date: 03/30/2012. Economic Injury (Eidl) Loan Application Deadline Date: 10/30/2012. ADDRESSES: Submit completed loan applications to: U.S. Small Business tkelley on DSK3SPTVN1PROD with NOTICES SUMMARY: VerDate Mar<15>2010 14:54 Feb 07, 2012 Jkt 226001 Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street SW., Suite 6050, Washington, DC 20416. SUPPLEMENTARY INFORMATION: Notice is hereby given that as a result of the Administrator’s disaster declaration, applications for disaster loans may be filed at the address listed above or other locally announced locations. The following areas have been determined to be adversely affected by the disaster: Primary Counties: Harris. Contiguous Counties: Texas: Brazoria, Chambers, Fort Bend, Galveston, Liberty, Montgomery, Waller. The Interest Rates are: For Physical Damage: Homeowners with Credit Available Elsewhere ........................ Homeowners without Credit Available Elsewhere ................ Businesses with Credit Available Elsewhere ................................ Businesses without Credit Available Elsewhere ........................ Non-Profit Organizations with Credit Available Elsewhere ..... Non-Profit Organizations without Credit Available Elsewhere ..... For Economic Injury: Businesses & Small Agricultural Cooperatives without Credit Available Elsewhere ................ Non-Profit Organizations without Credit Available Elsewhere ..... Notice of a renewal of an existing computer matching program that will expire on June 30, 2012. ACTION: In accordance with the provisions of the Privacy Act, as amended, this notice announces a renewal of an existing computer matching program that we are currently conducting with the States. DATES: We will file a report of the subject matching program with the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Oversight and Government Reform of the House of Representatives, and the Office of Information and Regulatory Affairs, Office of Management and Budget (OMB). The matching program will be effective as indicated below. ADDRESSES: Interested parties may comment on this notice by either telefaxing to (410) 966–0869 or writing to the Executive Director, Office of Percent Privacy and Disclosure, Office of the General Counsel, 617 Altmeyer Building, 6401 Security Boulevard, Baltimore, MD 21235–6401. All 4.125 comments received will be available for 2.063 public inspection at this address. FOR FURTHER INFORMATION CONTACT: The 6.000 Executive Director, Office of Privacy and Disclosure, Office of the General 4.000 Counsel, as shown above. SUPPLEMENTARY INFORMATION: SUMMARY: 3.125 A. General The Computer Matching and Privacy Protection Act of 1988 (Pub. L. 100– 503), amended the Privacy Act (5 U.S.C. 4.000 552a) by describing the conditions under which computer matching 3.000 involving the Federal government could be performed and adding certain The number assigned to this disaster protections for persons applying for, for physical damage is 12998B and for and receiving, Federal benefits. Section economic injury is 129990. 7201 of the Omnibus Budget The State which received an EIDL Reconciliation Act of 1990 (Pub. L. 101– Declaration # is Texas. 508) further amended the Privacy Act regarding protections for such persons. (Catalog of Federal Domestic Assistance The Privacy Act, as amended, Numbers 59002 and 59008) regulates the use of computer matching Dated: January 30, 2012. by Federal agencies when records in a Karen G. Mills, system of records are matched with Administrator. other Federal, State, or local government [FR Doc. 2012–2797 Filed 2–7–12; 8:45 am] records. It requires Federal agencies BILLING CODE 8025–01–P involved in computer matching programs to: (1) Negotiate written agreements with the other agency or agencies SOCIAL SECURITY ADMINISTRATION participating in the matching programs; [Docket No. SSA 2011–0102] (2) Obtain approval of the matching agreement from the Data Integrity Privacy Act of 1974, as Amended; Computer Matching Program (SSA/the Boards of the participating Federal agencies; States); Match 6000 and 6003 (3) Publish notice of the computer AGENCY: Social Security Administration matching program in the Federal (SSA). Register; PO 00000 Frm 00090 Fmt 4703 Sfmt 4703 3.000 E:\FR\FM\08FEN1.SGM 08FEN1

Agencies

SMALL BUSINESS ADMINISTRATION

[Federal Register Volume 77, Number 26 (Wednesday, February 8, 2012)]
[Notices]
[Pages 6619-6620]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-2798]


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SMALL BUSINESS ADMINISTRATION


Community Advantage Pilot Program

AGENCY: U.S. Small Business Administration.

ACTION: Notice of changes to Community Advantage Pilot Program.

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

SUMMARY: On February 18, 2011, SBA published a notice introducing the 
Community Advantage Pilot Program. In that notice, SBA provided an 
overview of the Community Advantage Pilot Program requirements, 
including the application process to participate, and SBA modified or 
waived as appropriate certain regulations, which otherwise apply to the 
7(a) loan program, for the Community Advantage Pilot Program. SBA 
continues to refine and improve the design of the Community Advantage 
Pilot Program. To support SBA's commitment to expanding access to 
capital for small businesses and entrepreneurs in underserved markets, 
SBA is issuing this Notice to revise certain program requirements, 
including certain of the regulatory waivers.

DATES: Effective Date: This Notice is effective February 8, 2012.
    Applicability Date: This Notice applies to Community Advantage 
Pilot Program loan applications (or requests for loan numbers submitted 
under a lender's delegated authority) approved by SBA on or after 
February 8, 2012.

FOR FURTHER INFORMATION CONTACT: Grady B. Hedgespeth, Director, Office 
of Financial Assistance, U.S. Small Business Administration, 409 Third 
Street SW., Washington DC 20416; (202) 205-7562; 
grady.hedgespeth@sba.gov.

SUPPLEMENTARY INFORMATION: On February 18, 2011, SBA issued a notice 
and request for comments introducing the Community Advantage Pilot 
Program (``CA Pilot Program'') (76 FR 9626). The CA Pilot Program was 
introduced to increase SBA-guaranteed loans to small businesses in 
underserved markets. The February 18, 2011 notice provided an overview 
of the CA Pilot Program requirements and, pursuant to the authority 
provided to SBA under 13 CFR 120.3 to suspend, modify or waive certain 
regulations in establishing and testing pilot loan initiatives, SBA 
modified or waived as appropriate certain regulations which otherwise 
apply to 7(a) loans for the CA Pilot Program. SBA continues to refine 
and improve the design of the CA Pilot Program and, on September 12, 
2011, SBA issued a notice modifying certain of those regulatory waivers 
in order to permit Community Advantage Lenders (``CA Lenders'') to 
pledge loans made under the CA Pilot Program (``CA loans'') as 
collateral for certain lender financings that are approved by SBA. (76 
FR 56262) In response to comments received on the CA Pilot Program and 
to further support SBA's commitment to expanding access to capital for 
small businesses and entrepreneurs in underserved markets, SBA is 
issuing this Notice to revise several of the original program 
requirements, including certain regulatory waivers, as described more 
fully below.
    In the February 18, 2011 notice, SBA waived the regulations at 13 
CFR 120.213, 120.214 and 120.215 and set the maximum allowable interest 
rate that CA Lenders may charge for CA loans at prime + 4%. SBA is now 
increasing the maximum allowable rate that a CA Lender may charge a 
borrower to prime + 6%. Therefore, SBA is continuing to waive the 
regulations at 13 CFR 120.213, 120.214 and 120.215 to allow CA Lenders 
to charge prime + 6% on CA Loans.
    Additionally, in response to comments received on the initial 
notice announcing the CA Pilot Program, SBA is modifying the program 
requirements to allow participating CA Lenders to contract with Lender 
Service Providers (LSPs) as defined at 13 CFR 103.1(d). In accordance 
with Agency regulations at 13 CFR 120.410, a CA Lender must have a 
continuing ability to evaluate, process, close, disburse, service, 
liquidate and litigate small business loans. A CA Lender may contract 
with a third party (an LSP) to assist with one or more of these 
functions. However, the CA Lender itself, not the LSP, has ultimate 
responsibility for evaluating, processing, closing, and liquidating its 
SBA loan portfolio.
    SBA is also removing ``Tier Two--Conditional Delegation'' from the 
levels of delegated authority that a CA Lender may receive. Thus, there 
will only be two distinct categories: delegated authority and non-
delegated authority. The remaining pilot program requirements 
pertaining to delegated authority, including how to request delegated 
authority and when a CA Lender can begin processing CA loans using 
delegated authority, remain unchanged.
    SBA is further modifying the requirements for CA Lenders to sell 
loans in the secondary market by allowing CA Lenders to request 
authority either at the time of application or after one year of 
participation. CA Lenders granted permission for secondary market sales 
must have additional reserves and must complete additional training 
related to secondary market activities and requirements before they are 
allowed to initiate secondary market sales.
    Finally, in response to comments received on the initial notice 
announcing the CA Pilot Program, SBA is revising the original lender 
oversight strategy to better clarify the expected costs and schedule of 
oversight. The February 18, 2011 notice provided that all participating 
lenders will receive an examination or review after the first year of 
operation. The revised strategy removes this requirement and explains 
that SBA will monitor CA Lenders using various oversight tools, 
including but not limited to Off-Site Reviews, Desk Reviews, Agreed 
Upon Procedures On-site Reviews, On-site Risk Based Reviews and On-Site 
Examinations. SBA's Office of Credit Risk Management (OCRM) will 
evaluate the CA Lender's level of activity, performance metrics, risk 
rating, effectiveness in reaching SBA targeted underserved market 
segments and other relevant information to determine the appropriate 
oversight tool(s) to employ. Lender risk evaluations will also include 
a review of information from SBA's processing, servicing and 
liquidation/guaranty purchase centers. SBA anticipates that the cost 
for off-site monitoring through desk reviews conducted by OCRM will be 
approximately $150 per $1 million in loans outstanding. Additional 
costs for more extensive reviews and examinations will vary based on 
the CA Lender's portfolio size and performance, as well as OCRM's 
assessment of the CA Lender.

[[Page 6620]]

    All other SBA guidelines and regulatory waivers related to the CA 
Pilot Program remain unchanged.
    In connection with the CA Pilot Program, SBA also issued a 
Community Advantage Participant Guide to provide more detailed guidance 
on the CA Pilot Program requirements. This guide was posted on SBA's 
Web site at https://www.sba.gov. SBA has issued a revised Community 
Advantage Participant Guide that incorporates all of these changes. The 
revised Community Advantage Participant Guide is available on SBA's Web 
site at https://www.sba.gov/sites/default/files/files/CA%20-%20Participants%20Guide.pdf. In addition to issuing this Notice and the 
revised CA Participant Guide, SBA will modify SBA Forms 2301, Parts A, 
B, C and D to reflect these changes. Finally, SBA will modify the 
Community Advantage Lender Participation Application (SBA Form 2301, 
Part E). The application form also may be found on SBA's Web site at 
https://www.sba.gov/sites/default/files/tools_sbf_forms_2301e.pdf.
    SBA may provide additional guidance, through SBA notices, which may 
also be published on SBA's Web site at https://www.sba.gov/category/lender-navigation/forms-notices-sops/notices. Questions regarding the 
CA Pilot Program may be directed to the Lender Relations Specialist in 
the local SBA district office. The local SBA district office may be 
found at https://www.sba.gov/about-offices-list/2.

    Authority: 15 U.S.C. 636(a)(25) and 13 CFR 120.3.

Karen G. Mills,
Administrator.
[FR Doc. 2012-2798 Filed 2-7-12; 8:45 am]
BILLING CODE 8025-01-P

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