Changes to SBA Secondary Market Program, 48144 [2017-22466]
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48144
Federal Register / Vol. 82, No. 198 / Monday, October 16, 2017 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.27
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017–22264 Filed 10–13–17; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
Changes to SBA Secondary Market
Program
U.S. Small Business
Administration (‘‘SBA’’).
ACTION: Notice.
AGENCY:
The purpose of this Notice is
to provide the public with notification
of a procedural change in SBA’s
Secondary Market Pooling program.
This change involves the pass through
of principal payments to Registered
Holders of Pool Certificates resulting
from Pool loan prepayments.
DATES: The change referenced in this
Notice affects all outstanding Pools
issued between October 1, 2004, and on
or about September 1, 2017. The change
will be incorporated into payments
made to Registered Holders of Pool
Certificates before the end of the
calendar year.
FOR FURTHER INFORMATION CONTACT: John
M. Wade, Chief, Secondary Market
Division, U.S. Small Business
Administration, 409 3rd Street SW.,
Washington, DC 20416, or john.wade@
sba.gov.
SUMMARY:
The
Secondary Market Improvements Act of
1984 authorized SBA to guaranty the
timely payment of principal and interest
on Pool Certificates. A Pool Certificate
represents a fractional undivided
interest in a ‘‘Pool,’’ which is an
aggregation of SBA guaranteed portions
of loans made by SBA Lenders under
section 7(a) of the Small Business Act,
15 U.S.C. 636(a). In order to support the
timely payment guaranty requirement,
SBA established the Master Reserve
Fund (‘‘MRF’’), which serves as a
mechanism to cover the cost of SBA’s
timely payment guaranty on Pool
Certificates.
Pool payments to Registered Holders
of Pool Certificates are made monthly
and consist of scheduled payments of
pool principal and interest. The
payments may also include a return of
pool principal from full or partial
prepayments of pool loans prior to the
Pool maturity date. Principal from these
prepayments are passed through to
ethrower on DSK3G9T082PROD with NOTICES
SUPPLEMENTARY INFORMATION:
27 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
16:59 Oct 13, 2017
Jkt 244001
Registered Holders of Pool Certificates,
but the amounts may vary based on
amortization excess associated with the
prepaid loan.
Amortization excess represents that
portion of the outstanding principal
balance of a Pool allocated to a
particular pool loan compared to the
actual loan principal balance
outstanding at the time the loan is
prepaid. Amortization excess may
include differences attributed to
principal prepayments on a pool loan
that is less than or equal to 20% of the
outstanding principal balance. Borrower
payments of loan principal made up to
the date of prepayment are based on the
amortization schedule of the borrower’s
Note, but paid to Registered Holders of
Pool Certificates based on the
amortization schedule of the Pool. This
variance comes from differences in
interest rates and maturity dates of the
pool loan compared with the Pool
Certificate.
On September 21, 2004, SBA issued
Notice of a Change in the SBA
Secondary Market Program (and
referenced herein as the ‘‘2004 Notice’’).
69 FR 56472. This 2004 Notice
described program changes made to all
Pools formed on or after October 1, 2004
including the disposition of
amortization excess. Prior to October 1,
2004, SBA spread the amortization
excess from prepaid loans over the
remaining life of the Pool. In the 2004
Notice, SBA revised the program to pass
through amortization excess once a pool
loan is prepaid. In certain
circumstances, however, amortization
excess resulted in a reduction in the
amount of a principal passed through to
Registered Holders of Pool Certificates,
with the retained principal remaining in
the MRF to be paid out through
scheduled principal payments until the
Pool matures, or as all pool loans are
fully paid.
In order to improve the efficiency of
the program, SBA is implementing a
procedural change that will adjust the
timing of certain principal distributions
from the MRF. For Pools formed
between October 1, 2004 and on or
about September 1, 2017 with pool
loans remaining, SBA will reallocate the
outstanding Pool balances pro rata
across the remaining pool loan principal
within a Pool. When a pool loan
subsequently prepays in full, payments
to Registered Holders of Pool
Certificates may include retained
principal in addition to the scheduled
payments of pool principal, interest and
related prepayments. This change will
be incorporated, as needed, into the
SBA Secondary Market Program Guide,
PO 00000
Frm 00095
Fmt 4703
Sfmt 4703
and all other appropriate SBA
Secondary Market materials.
It is important to note that there is no
change to SBA’s obligation to honor its
guaranty of the amount owed to
Registered Holders of Pool Certificates
and that such guaranty continues to be
backed by the full faith and credit of the
United States.
Authority: 15 U.S.C. 634(g)(2).
William M. Manger,
Associate Administrator, Office of Capital
Access.
[FR Doc. 2017–22466 Filed 10–13–17; 8:45 am]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #15342 and #15343;
US VIRGIN ISLANDS Disaster Number VI–
00012]
Presidential Declaration of a Major
Disaster for Public Assistance Only for
the U.S. Virgin Islands
U.S. Small Business
Administration.
ACTION: Notice.
AGENCY:
This is a Notice of the
Presidential declaration of a major
disaster for Public Assistance Only for
the US Virgin Islands (FEMA–4340–
DR), dated 10/05/2017.
Incident: Hurricane Maria.
Incident Period: 09/16/2017 and
continuing.
DATES: Issued on 10/05/2017.
Physical Loan Application Deadline
Date: 12/04/2017.
Economic Injury (EIDL) Loan
Application Deadline Date: 07/05/2018.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
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,
(202) 205–6734.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
President’s major disaster declaration on
10/05/2017, Private Non-Profit
organizations that provide essential
services of a governmental nature may
file disaster loan applications 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: Saint Croix, Saint
John, Saint Thomas.
SUMMARY:
E:\FR\FM\16OCN1.SGM
16OCN1
]]>Agencies
[Federal Register Volume 82, Number 198 (Monday, October 16, 2017)]
[Notices]
[Page 48144]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-22466]
=======================================================================
-----------------------------------------------------------------------
SMALL BUSINESS ADMINISTRATION
Changes to SBA Secondary Market Program
AGENCY: U.S. Small Business Administration (``SBA'').
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The purpose of this Notice is to provide the public with
notification of a procedural change in SBA's Secondary Market Pooling
program. This change involves the pass through of principal payments to
Registered Holders of Pool Certificates resulting from Pool loan
prepayments.
DATES: The change referenced in this Notice affects all outstanding
Pools issued between October 1, 2004, and on or about September 1,
2017. The change will be incorporated into payments made to Registered
Holders of Pool Certificates before the end of the calendar year.
FOR FURTHER INFORMATION CONTACT: John M. Wade, Chief, Secondary Market
Division, U.S. Small Business Administration, 409 3rd Street SW.,
Washington, DC 20416, or john.wade@sba.gov.
SUPPLEMENTARY INFORMATION: The Secondary Market Improvements Act of
1984 authorized SBA to guaranty the timely payment of principal and
interest on Pool Certificates. A Pool Certificate represents a
fractional undivided interest in a ``Pool,'' which is an aggregation of
SBA guaranteed portions of loans made by SBA Lenders under section 7(a)
of the Small Business Act, 15 U.S.C. 636(a). In order to support the
timely payment guaranty requirement, SBA established the Master Reserve
Fund (``MRF''), which serves as a mechanism to cover the cost of SBA's
timely payment guaranty on Pool Certificates.
Pool payments to Registered Holders of Pool Certificates are made
monthly and consist of scheduled payments of pool principal and
interest. The payments may also include a return of pool principal from
full or partial prepayments of pool loans prior to the Pool maturity
date. Principal from these prepayments are passed through to Registered
Holders of Pool Certificates, but the amounts may vary based on
amortization excess associated with the prepaid loan.
Amortization excess represents that portion of the outstanding
principal balance of a Pool allocated to a particular pool loan
compared to the actual loan principal balance outstanding at the time
the loan is prepaid. Amortization excess may include differences
attributed to principal prepayments on a pool loan that is less than or
equal to 20% of the outstanding principal balance. Borrower payments of
loan principal made up to the date of prepayment are based on the
amortization schedule of the borrower's Note, but paid to Registered
Holders of Pool Certificates based on the amortization schedule of the
Pool. This variance comes from differences in interest rates and
maturity dates of the pool loan compared with the Pool Certificate.
On September 21, 2004, SBA issued Notice of a Change in the SBA
Secondary Market Program (and referenced herein as the ``2004
Notice''). 69 FR 56472. This 2004 Notice described program changes made
to all Pools formed on or after October 1, 2004 including the
disposition of amortization excess. Prior to October 1, 2004, SBA
spread the amortization excess from prepaid loans over the remaining
life of the Pool. In the 2004 Notice, SBA revised the program to pass
through amortization excess once a pool loan is prepaid. In certain
circumstances, however, amortization excess resulted in a reduction in
the amount of a principal passed through to Registered Holders of Pool
Certificates, with the retained principal remaining in the MRF to be
paid out through scheduled principal payments until the Pool matures,
or as all pool loans are fully paid.
In order to improve the efficiency of the program, SBA is
implementing a procedural change that will adjust the timing of certain
principal distributions from the MRF. For Pools formed between October
1, 2004 and on or about September 1, 2017 with pool loans remaining,
SBA will reallocate the outstanding Pool balances pro rata across the
remaining pool loan principal within a Pool. When a pool loan
subsequently prepays in full, payments to Registered Holders of Pool
Certificates may include retained principal in addition to the
scheduled payments of pool principal, interest and related prepayments.
This change will be incorporated, as needed, into the SBA Secondary
Market Program Guide, and all other appropriate SBA Secondary Market
materials.
It is important to note that there is no change to SBA's obligation
to honor its guaranty of the amount owed to Registered Holders of Pool
Certificates and that such guaranty continues to be backed by the full
faith and credit of the United States.
Authority: 15 U.S.C. 634(g)(2).
William M. Manger,
Associate Administrator, Office of Capital Access.
[FR Doc. 2017-22466 Filed 10-13-17; 8:45 am]
BILLING CODE 8025-01-P
