Small Business Investment Companies: Passive Business Expansion and Technical Clarifications, 8499 [2017-01809]
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8499
Rules and Regulations
Federal Register
Vol. 82, No. 16
Thursday, January 26, 2017
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
SMALL BUSINESS ADMINISTRATION
13 CFR Part 107
RIN 3245–AG67
Small Business Investment
Companies: Passive Business
Expansion and Technical Clarifications
U.S. Small Business
Administration.
ACTION: Final rule; delay of effective
date and opportunity for public
comment.
AGENCY:
On December 28, 2016, the
Small Business Administration (SBA)
published a final rule to expand
permitted investments in passive
businesses and provide further
clarification with regard to investments
in such businesses for the Small
Business Investment Company (SBIC)
Program, with an effective date of
January 27, 2017. In the meantime, a
memorandum dated January 20, 2017
from the Assistant to the President and
Chief of Staff, entitled ‘‘Regulatory
Freeze Pending Review’’ calls for
agencies to temporarily postpone the
effective date of rules not yet effective
and invite new public comment. In view
of this development, SBA is delaying
the effective date of this rule until
March 21, 2017, and is inviting
additional public comment on the final
rule. Any timely public comments
received will be considered and any
changes to the final rule will be
published in the Federal Register.
DATES: The effective date of the SBA
final rule published December 28, 2016
(81 FR 95419) is delayed until March
21, 2017. Comments must be received
on or before February 19, 2017.
ADDRESSES: You may submit comments,
identified by RIN 3245–AG67, by any of
the following methods:
Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
jstallworth on DSK7TPTVN1PROD with RULES
SUMMARY:
VerDate Sep<11>2014
09:46 Jan 25, 2017
Jkt 241001
Mail, Hand Delivery/Courier: Theresa
Jamerson, Office for Investment and
Innovation, U.S. Small Business
Administration, 409 Third Street SW.,
Washington, DC 20416.
SBA will post comments on https://
www.regulations.gov. If you wish to
submit confidential business
information (CBI) as defined in the User
Notice at https://www.regulations.gov,
please submit the information to
Theresa Jamerson, Office of Investment
and Innovation, 409 Third Street SW.,
Washington, DC 20416. Highlight the
information that you consider to be CBI
and explain why you believe this
information should be held confidential.
SBA will review the information and
make the final determination of whether
it will publish the information or not.
FOR FURTHER INFORMATION CONTACT:
Theresa Jamerson, Office of Investment
and Innovation, (202) 205–7563 or sbic@
sba.gov.
SUPPLEMENTARY INFORMATION: The U.S.
Small Business Administration (SBA) is
revising the regulations for the Small
Business Investment Company (SBIC)
program to expand permitted
investments in passive businesses and
provide further clarification with regard
to investments in such businesses.
SBICs are generally prohibited from
investing in passive businesses under
the Small Business Investment Act of
1958, as amended (Act). SBIC program
regulations provide for two exceptions
that allow an SBIC to structure an
investment utilizing a passive small
business as a pass-through. The first
exception provides conditions under
which an SBIC may structure an
investment through up to two levels of
passive entities to make an investment
in a non-passive business that is a
subsidiary of the passive business
directly financed by the SBIC. The
second exception, prior to this final
rule, enabled a partnership SBIC, with
SBA’s prior approval, to provide
financing to a small business through a
passive, wholly-owned C corporation
(commonly known as a blocker
corporation), but only if a direct
financing would cause the SBIC’s
investors to incur Unrelated Business
Taxable Income (UBTI). This final rule
clarifies several aspects of the first
exception and in the second exception
eliminates the prior approval
requirement and expands the purposes
for which a blocker corporation may be
PO 00000
Frm 00001
Fmt 4700
Sfmt 4700
formed. The final rule also adds new
reporting and other requirements for
passive investments to help protect
SBA’s financial interests and ensure
adequate oversight and makes minor
technical amendments. Finally, this rule
makes a conforming change to the
regulations regarding the amount of
leverage available to SBICs under
common control. This change is
necessary for consistency with the
Consolidated Appropriations Act, 2016,
which increased the maximum amount
of such leverage to $350 million.
Dated: January 23, 2017.
Michele Schimpp,
Deputy Associate Administrator, Office of
Investment and Innovation.
[FR Doc. 2017–01809 Filed 1–25–17; 8:45 am]
BILLING CODE 8025–01–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Parts 22, 51, 52, 61, 68, 80, 81,
124, 147, 171, 239, 259, 300, and 770
[FRL–9958–87–OP]
Delay of Effective Date for 30 Final
Regulations Published by the
Environmental Protection Agency
Between October 28, 2016 and January
17, 2017
Environmental Protection
Agency (EPA).
ACTION: Final rule; delay of effective
dates.
AGENCY:
In accordance with the
Presidential directive as expressed in
the memorandum of January 20, 2017,
from the Assistant to the President and
Chief of Staff, entitled ‘‘Regulatory
Freeze Pending Review,’’ this action
temporarily delays until March 21,
2017, the effective date of the
regulations listed in the table below.
EPA identified 30 regulations that meet
those criteria.
DATES: This regulation is effective
January 26, 2017. The effective date of
each regulation listed in the table below
is delayed to a new effective date of
March 21, 2017.
FOR FURTHER INFORMATION CONTACT:
Sarah Rees, Director, Office of
Regulatory Policy and Management,
Office of Policy, Mail code 1804, U.S.
Environmental Protection Agency, 1200
Pennsylvania Ave NW., Washington, DC
SUMMARY:
E:\FR\FM\26JAR1.SGM
26JAR1
Agencies
[Federal Register Volume 82, Number 16 (Thursday, January 26, 2017)]
[Rules and Regulations]
[Page 8499]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-01809]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 82, No. 16 / Thursday, January 26, 2017 /
Rules and Regulations
[[Page 8499]]
SMALL BUSINESS ADMINISTRATION
13 CFR Part 107
RIN 3245-AG67
Small Business Investment Companies: Passive Business Expansion
and Technical Clarifications
AGENCY: U.S. Small Business Administration.
ACTION: Final rule; delay of effective date and opportunity for public
comment.
-----------------------------------------------------------------------
SUMMARY: On December 28, 2016, the Small Business Administration (SBA)
published a final rule to expand permitted investments in passive
businesses and provide further clarification with regard to investments
in such businesses for the Small Business Investment Company (SBIC)
Program, with an effective date of January 27, 2017. In the meantime, a
memorandum dated January 20, 2017 from the Assistant to the President
and Chief of Staff, entitled ``Regulatory Freeze Pending Review'' calls
for agencies to temporarily postpone the effective date of rules not
yet effective and invite new public comment. In view of this
development, SBA is delaying the effective date of this rule until
March 21, 2017, and is inviting additional public comment on the final
rule. Any timely public comments received will be considered and any
changes to the final rule will be published in the Federal Register.
DATES: The effective date of the SBA final rule published December 28,
2016 (81 FR 95419) is delayed until March 21, 2017. Comments must be
received on or before February 19, 2017.
ADDRESSES: You may submit comments, identified by RIN 3245-AG67, by any
of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov. Follow the
instructions for submitting comments.
Mail, Hand Delivery/Courier: Theresa Jamerson, Office for
Investment and Innovation, U.S. Small Business Administration, 409
Third Street SW., Washington, DC 20416.
SBA will post comments on https://www.regulations.gov. If you wish
to submit confidential business information (CBI) as defined in the
User Notice at https://www.regulations.gov, please submit the
information to Theresa Jamerson, Office of Investment and Innovation,
409 Third Street SW., Washington, DC 20416. Highlight the information
that you consider to be CBI and explain why you believe this
information should be held confidential. SBA will review the
information and make the final determination of whether it will publish
the information or not.
FOR FURTHER INFORMATION CONTACT: Theresa Jamerson, Office of Investment
and Innovation, (202) 205-7563 or sbic@sba.gov.
SUPPLEMENTARY INFORMATION: The U.S. Small Business Administration (SBA)
is revising the regulations for the Small Business Investment Company
(SBIC) program to expand permitted investments in passive businesses
and provide further clarification with regard to investments in such
businesses. SBICs are generally prohibited from investing in passive
businesses under the Small Business Investment Act of 1958, as amended
(Act). SBIC program regulations provide for two exceptions that allow
an SBIC to structure an investment utilizing a passive small business
as a pass-through. The first exception provides conditions under which
an SBIC may structure an investment through up to two levels of passive
entities to make an investment in a non-passive business that is a
subsidiary of the passive business directly financed by the SBIC. The
second exception, prior to this final rule, enabled a partnership SBIC,
with SBA's prior approval, to provide financing to a small business
through a passive, wholly-owned C corporation (commonly known as a
blocker corporation), but only if a direct financing would cause the
SBIC's investors to incur Unrelated Business Taxable Income (UBTI).
This final rule clarifies several aspects of the first exception and in
the second exception eliminates the prior approval requirement and
expands the purposes for which a blocker corporation may be formed. The
final rule also adds new reporting and other requirements for passive
investments to help protect SBA's financial interests and ensure
adequate oversight and makes minor technical amendments. Finally, this
rule makes a conforming change to the regulations regarding the amount
of leverage available to SBICs under common control. This change is
necessary for consistency with the Consolidated Appropriations Act,
2016, which increased the maximum amount of such leverage to $350
million.
Dated: January 23, 2017.
Michele Schimpp,
Deputy Associate Administrator, Office of Investment and Innovation.
[FR Doc. 2017-01809 Filed 1-25-17; 8:45 am]
BILLING CODE 8025-01-P