, 6619 [C1-2012-1583]
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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
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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.
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]]>[Federal Register Volume 77, Number 26 (Wednesday, February 8, 2012)]
[Notices]
[Page 6619]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: C1-2012-1583]
[[Page 6619]]
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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
