Express Bridge Loan Pilot Program; Modification of Fee Policy, 19921-19922 [2018-09627]

Download as PDF daltland on DSKBBV9HB2PROD with RULES Federal Register / Vol. 83, No. 88 / Monday, May 7, 2018 / Rules and Regulations Eligible Business Expense, except debt that was incurred with a credit card or a business line of credit may be included if the credit card or business line of credit is issued in the name of the small business and the Applicant certifies that the debt being refinanced was incurred exclusively for business related purposes. Loan proceeds must not be used to refinance any personal expenses. Both the CDC and the Borrower must certify in the application that the funds will be used to cover Eligible Business Expenses. * * * * * * * * (12) The 504 loans approved under this paragraph (g) must be disbursed within 9 months after loan approval. The Director, Office of Financial Assistance, or his or her designee, may approve a request for extension of the disbursement period for an additional 6 months for good cause. * * * * * (15) * * * Qualified debt is a commercial loan: * * * (i) * * * A commercial loan that was refinanced within the two years prior to the date of application (the most recent loan) may be deemed incurred not less than 2 years before the date of the application provided that the effect of the most recent loan was to extend the maturity date without advancing any additional proceeds (except to cover closing costs) and the collateral for the most recent loan includes, at a minimum, the same Eligible Fixed Asset(s) that served as collateral for the former loan that was refinanced. The loan documents and lien instruments for the most recent loan, as well as the loan documents and lien instruments for the loan that was replaced by the most recent loan, must be submitted to SBA as part of the application. * * * * * (vii) * * * For the purposes of this paragraph (vii), ‘‘current on all payments due’’ means that no payment was more than 30 days past due from either the original payment terms or modified payment terms (whether through a modification to an existing Note or through a refinancing that results in a new Note). The modification (or refinancing) must have been agreed to in writing by the Borrower and the lender of the existing debt no less than one year preceding the date of application, except that a modified (or refinanced) loan may be allowed if the purpose of the modification (or refinancing) was to extend the maturity date of the loan, including any balloon payment, and if, during the one year period prior to the date of application VerDate Sep<11>2014 16:29 May 04, 2018 Jkt 244001 (i.e., in the months prior to and after the modification or refinancing), the Borrower was current on all payments due, there have been no deferments of any payments, and no additional proceeds were advanced through the modification or refinancing (except to cover closing costs). * * * * * * * * Refinancing Project means the fair market value of the Eligible Fixed Asset(s) securing the qualified debt and any other fixed assets acceptable to SBA, except that if the Refinancing Project includes the financing of Eligible Business Expenses, SBA will not accept as collateral any fixed assets other than the Eligible Fixed Asset(s) securing the Qualified Debt. * * * * * Dated: April 26, 2018. Linda E. McMahon, Administrator. [FR Doc. 2018–09638 Filed 5–4–18; 8:45 am] BILLING CODE 8025–01–P SMALL BUSINESS ADMINISTRATION 13 CFR Part 120 Express Bridge Loan Pilot Program; Modification of Fee Policy U.S. Small Business Administration. ACTION: Notification of change to Express Bridge Loan Pilot Program and impact on regulatory provision. AGENCY: On October 16, 2017, the U.S. Small Business Administration (SBA) published a document announcing the Express Bridge Loan Pilot Program (Express Bridge Pilot). In that document, SBA provided an overview of the Express Bridge Pilot and modified an Agency regulation relating to loan underwriting for loans made under the Express Bridge Pilot. SBA continues to refine and improve the design of the Express Bridge Pilot and is issuing this document to revise the program requirements, including the modification of an Agency regulation relating to fees that can be collected from the Applicant or Borrower in connection with a loan made under the Express Bridge Pilot. DATES: The revised program requirements described in this document apply to all Express Bridge Pilot loans approved on or after May 7, 2018, and the Express Bridge Pilot will remain available through September 30, 2020. FOR FURTHER INFORMATION CONTACT: Dianna Seaborn, Director, Office of SUMMARY: PO 00000 Frm 00017 Fmt 4700 Sfmt 4700 19921 Financial Assistance, U.S. Small Business Administration, 409 Third Street SW, Washington, DC 20416; Telephone (202) 205–3645; email address: dianna.seaborn@sba.gov. SUPPLEMENTARY INFORMATION: On October 16, 2017, SBA published a document announcing the Express Bridge Pilot. (82 FR 47958) The Express Bridge Pilot is designed to supplement the Agency’s disaster response capabilities and authorizes the Agency’s 7(a) Lenders with SBA Express lending authority to deliver expedited SBAguaranteed financing on an emergency basis for disaster-related purposes to small businesses located in communities impacted by a Presidentially-declared disaster, while the businesses apply for and await longterm financing (including through SBA’s direct disaster loan program, if eligible). The Express Bridge Pilot applies the policies and procedures in place for the Agency’s SBA Express program, except as outlined in the Federal Register document published on October 16, 2017. 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 the regulation at 13 CFR 120.150 (‘‘What are SBA’s lending criteria?’’), which applies to loans made in the 7(a) Business Loan Program. SBA modified the regulation in order to minimize the burdens on the businesses applying for loans through the Express Bridge Pilot and to expand the opportunities for SBA Express lenders to participate in the pilot. SBA continues to refine and improve the design of the Express Bridge Pilot and, therefore, is issuing this document to clarify the fees that Lenders or third parties are able to collect from Applicants or Borrowers in connection with loans made under the pilot. All Express Bridge Pilot loans are subject to the same upfront guaranty fees required for 7(a) loans of similar size and maturity as set forth in 13 CFR 120.220. In addition, all Express Bridge Pilot loans are subject to the same Lender’s annual service fee required for all 7(a) loans as set forth in 13 CFR 120.220(f). In order to ensure that Applicants and Borrowers are charged only those additional fees reasonably necessary in connection with an Express Bridge Pilot loan, SBA is modifying the regulation at 13 CFR 120.221 (‘‘Fees and expenses which the Lender may collect from a loan applicant or Borrower’’), using the term modify as contemplated under 13 CFR 120.3, to permit Lenders to collect only the following: E:\FR\FM\07MYR1.SGM 07MYR1 daltland on DSKBBV9HB2PROD with RULES 19922 Federal Register / Vol. 83, No. 88 / Monday, May 7, 2018 / Rules and Regulations 1. Lender Fees: An SBA Express Lender must not impose any fees or direct costs on an Express Bridge Pilot Applicant or Borrower, except for the following: a. Application Fee: SBA Express Lenders may charge an Express Bridge Pilot Applicant an application fee. The maximum permissible application fee is 2% of the loan amount or $250, whichever is greater. If an application fee is charged, it must be disclosed on SBA Form 159(7a), Fee Disclosure Form and Compensation Agreement for Agent Services in Connection with a SBA 7(a) Loan. If an undisbursed loan is canceled, the Lender may retain the application fee; b. Late Payment Fee: A late payment fee not to exceed 5 percent of the scheduled Express Bridge Pilot loan payment; and c. Liquidation Costs: The reasonable direct costs of liquidation. 2. Prohibition on all other fees and charges, including by loan packagers, referral agents or brokers. Except as permitted in 1. above, no other fee or costs may be charged to an Express Bridge Pilot Applicant or Borrower by the Lender. In addition, no fee or costs may be charged to an Express Bridge Pilot Applicant or Borrower by any third party in connection with an Express Bridge Pilot loan, including any referral fee, broker’s fee, or similar fee. The modification of this regulation will permit SBA Express lenders to recoup some of their costs in processing the application, without subjecting the Applicant to excessive or unnecessary fees for these small guaranteed loans that are intended to provide immediate cash to assist the small business with rebuilding and continuing or restarting its operations while awaiting long-term disaster financing. SBA believes that the costs of the program should be kept as low as possible to aid the disasteraffected small business. The application fee is optional; therefore an SBA Express Lender may choose not to collect an application fee from an Express Bridge Pilot Applicant. Additionally, because an Express Bridge Pilot loan Applicant must have had an existing banking relationship with the SBA Express lender, there is no need for either the Applicant or the Lender to pay a referral fee, broker’s fee, or similar fee for these loans. SBA’s modification of 13 CFR 120.221 is authorized by 13 CFR 120.3 of its regulations, which provides that the SBA Administrator may suspend, modify or waive rules for a limited period of time to test new programs or ideas. This modification applies only to loans made under the Express Bridge VerDate Sep<11>2014 16:29 May 04, 2018 Jkt 244001 Pilot and will last only for the duration of the pilot, which expires September 30, 2020. As part of the Express Bridge Pilot, this modification applies only to those small businesses that were located, as of the date of the applicable disaster, in counties that have been Presidentially-declared as disaster areas, plus any contiguous counties. A listing of Presidentially-declared disaster declarations, including primary and contiguous counties can be located at www.sba.gov/disaster. All other SBA terms and conditions and regulatory waivers related to the Express Bridge Pilot remain unchanged. SBA will provide more detailed guidance in the form of a program guide, which will be available on SBA’s website, https://www.sba.gov. SBA may also provide additional guidance, if needed, through SBA notices, which also will be published on SBA’s website, https://www.sba.gov. Authority: 15 U.S.C. 636(a)(25); 13 CFR 120.3. Dated: April 26, 2018. Linda E. McMahon, Administrator. [FR Doc. 2018–09627 Filed 5–4–18; 8:45 am] BILLING CODE 8025–01–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA–2017–1163; Product Identifier 2017–CE–041–AD; Amendment 39–19260; AD 2018–09–04] RIN 2120–AA64 Airworthiness Directives; Gulfstream Aerospace Corporation Airplanes Federal Aviation Administration (FAA), DOT. ACTION: Final rule. AGENCY: We are adopting a new airworthiness directive (AD) for certain Gulfstream Aerospace Corporation Models G–IV and GIV–X airplanes. This AD was prompted by the potential for fatigue cracks developing in the main landing gear actuator attachment fitting that had a certain repair incorporated. This AD requires incorporating new revisions into the Instructions for Continued Airworthiness of the Limitations section of the FAAapproved maintenance program (e.g., maintenance manual) that establish an inspection cycle for the repaired MLG side brace actuator fittings. We are issuing this AD to address the unsafe condition on these products. SUMMARY: PO 00000 Frm 00018 Fmt 4700 Sfmt 4700 This AD is effective June 11, 2018. The Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD as of June 11, 2018. ADDRESSES: For service information identified in this final rule, contact Gulfstream Aerospace Corporation, P.O. Box 2206, Savannah, Georgia 31402– 2206; telephone: (800) 810–4853; fax 912–965–3520; email: pubs@ gulfstream.com; internet: https:// www.gulfstream.com/product_support/ technical_pubs/pubs/index.htm. You may view this service information at the FAA, Policy and Innovation Division, 901 Locust, Kansas City, Missouri 64106. For information on the availability of this material at the FAA, call (816) 329–4148. It is also available on the internet at https:// www.regulations.gov by searching for and locating Docket No. FAA–2017– 1163. DATES: Examining the AD Docket You may examine the AD docket on the internet at https:// www.regulations.gov by searching for and locating Docket No. FAA–2017– 1163; or in person at Docket Operations between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this final rule, the regulatory evaluation, any comments received, and other information. The address for Docket Operations (phone: 800–647–5527) is Docket Operations, U.S. Department of Transportation, Docket Operations, M– 30, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue SE, Washington, DC 20590. FOR FURTHER INFORMATION CONTACT: William O. Herderich, Aerospace Engineer, Atlanta ACO Branch, FAA, 1701 Columbia Avenue, College Park, Georgia 30337; phone: (404) 474–5547; fax: (404) 474–5605; email: william.o.herderich@faa.gov. SUPPLEMENTARY INFORMATION: Discussion We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR part 39 by adding an AD that would apply to certain Gulfstream Aerospace Corporation Models G–IV and GIV–X airplanes. The NPRM published in the Federal Register on December 12, 2017 (82 FR 58362). The NPRM was prompted by the potential for fatigue cracks developing in the main landing gear actuator attachment fitting that had a certain repair incorporated. The NPRM proposed to require incorporating new revisions into the E:\FR\FM\07MYR1.SGM 07MYR1

Agencies

[Federal Register Volume 83, Number 88 (Monday, May 7, 2018)]
[Rules and Regulations]
[Pages 19921-19922]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-09627]


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SMALL BUSINESS ADMINISTRATION

13 CFR Part 120


Express Bridge Loan Pilot Program; Modification of Fee Policy

AGENCY: U.S. Small Business Administration.

ACTION: Notification of change to Express Bridge Loan Pilot Program and 
impact on regulatory provision.

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

SUMMARY: On October 16, 2017, the U.S. Small Business Administration 
(SBA) published a document announcing the Express Bridge Loan Pilot 
Program (Express Bridge Pilot). In that document, SBA provided an 
overview of the Express Bridge Pilot and modified an Agency regulation 
relating to loan underwriting for loans made under the Express Bridge 
Pilot. SBA continues to refine and improve the design of the Express 
Bridge Pilot and is issuing this document to revise the program 
requirements, including the modification of an Agency regulation 
relating to fees that can be collected from the Applicant or Borrower 
in connection with a loan made under the Express Bridge Pilot.

DATES: The revised program requirements described in this document 
apply to all Express Bridge Pilot loans approved on or after May 7, 
2018, and the Express Bridge Pilot will remain available through 
September 30, 2020.

FOR FURTHER INFORMATION CONTACT: Dianna Seaborn, Director, Office of 
Financial Assistance, U.S. Small Business Administration, 409 Third 
Street SW, Washington, DC 20416; Telephone (202) 205-3645; email 
address: [email protected].

SUPPLEMENTARY INFORMATION: On October 16, 2017, SBA published a 
document announcing the Express Bridge Pilot. (82 FR 47958) The Express 
Bridge Pilot is designed to supplement the Agency's disaster response 
capabilities and authorizes the Agency's 7(a) Lenders with SBA Express 
lending authority to deliver expedited SBA-guaranteed financing on an 
emergency basis for disaster-related purposes to small businesses 
located in communities impacted by a Presidentially-declared disaster, 
while the businesses apply for and await long-term financing (including 
through SBA's direct disaster loan program, if eligible).
    The Express Bridge Pilot applies the policies and procedures in 
place for the Agency's SBA Express program, except as outlined in the 
Federal Register document published on October 16, 2017. 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 the regulation at 13 CFR 120.150 (``What are 
SBA's lending criteria?''), which applies to loans made in the 7(a) 
Business Loan Program. SBA modified the regulation in order to minimize 
the burdens on the businesses applying for loans through the Express 
Bridge Pilot and to expand the opportunities for SBA Express lenders to 
participate in the pilot.
    SBA continues to refine and improve the design of the Express 
Bridge Pilot and, therefore, is issuing this document to clarify the 
fees that Lenders or third parties are able to collect from Applicants 
or Borrowers in connection with loans made under the pilot. All Express 
Bridge Pilot loans are subject to the same upfront guaranty fees 
required for 7(a) loans of similar size and maturity as set forth in 13 
CFR 120.220. In addition, all Express Bridge Pilot loans are subject to 
the same Lender's annual service fee required for all 7(a) loans as set 
forth in 13 CFR 120.220(f).
    In order to ensure that Applicants and Borrowers are charged only 
those additional fees reasonably necessary in connection with an 
Express Bridge Pilot loan, SBA is modifying the regulation at 13 CFR 
120.221 (``Fees and expenses which the Lender may collect from a loan 
applicant or Borrower''), using the term modify as contemplated under 
13 CFR 120.3, to permit Lenders to collect only the following:

[[Page 19922]]

    1. Lender Fees: An SBA Express Lender must not impose any fees or 
direct costs on an Express Bridge Pilot Applicant or Borrower, except 
for the following:
    a. Application Fee: SBA Express Lenders may charge an Express 
Bridge Pilot Applicant an application fee. The maximum permissible 
application fee is 2% of the loan amount or $250, whichever is greater. 
If an application fee is charged, it must be disclosed on SBA Form 
159(7a), Fee Disclosure Form and Compensation Agreement for Agent 
Services in Connection with a SBA 7(a) Loan. If an undisbursed loan is 
canceled, the Lender may retain the application fee;
    b. Late Payment Fee: A late payment fee not to exceed 5 percent of 
the scheduled Express Bridge Pilot loan payment; and
    c. Liquidation Costs: The reasonable direct costs of liquidation.
    2. Prohibition on all other fees and charges, including by loan 
packagers, referral agents or brokers. Except as permitted in 1. above, 
no other fee or costs may be charged to an Express Bridge Pilot 
Applicant or Borrower by the Lender. In addition, no fee or costs may 
be charged to an Express Bridge Pilot Applicant or Borrower by any 
third party in connection with an Express Bridge Pilot loan, including 
any referral fee, broker's fee, or similar fee.
    The modification of this regulation will permit SBA Express lenders 
to recoup some of their costs in processing the application, without 
subjecting the Applicant to excessive or unnecessary fees for these 
small guaranteed loans that are intended to provide immediate cash to 
assist the small business with rebuilding and continuing or restarting 
its operations while awaiting long-term disaster financing. SBA 
believes that the costs of the program should be kept as low as 
possible to aid the disaster-affected small business. The application 
fee is optional; therefore an SBA Express Lender may choose not to 
collect an application fee from an Express Bridge Pilot Applicant. 
Additionally, because an Express Bridge Pilot loan Applicant must have 
had an existing banking relationship with the SBA Express lender, there 
is no need for either the Applicant or the Lender to pay a referral 
fee, broker's fee, or similar fee for these loans.
    SBA's modification of 13 CFR 120.221 is authorized by 13 CFR 120.3 
of its regulations, which provides that the SBA Administrator may 
suspend, modify or waive rules for a limited period of time to test new 
programs or ideas. This modification applies only to loans made under 
the Express Bridge Pilot and will last only for the duration of the 
pilot, which expires September 30, 2020. As part of the Express Bridge 
Pilot, this modification applies only to those small businesses that 
were located, as of the date of the applicable disaster, in counties 
that have been Presidentially-declared as disaster areas, plus any 
contiguous counties. A listing of Presidentially-declared disaster 
declarations, including primary and contiguous counties can be located 
at www.sba.gov/disaster.
    All other SBA terms and conditions and regulatory waivers related 
to the Express Bridge Pilot remain unchanged.
    SBA will provide more detailed guidance in the form of a program 
guide, which will be available on SBA's website, https://www.sba.gov. 
SBA may also provide additional guidance, if needed, through SBA 
notices, which also will be published on SBA's website, https://www.sba.gov.

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

    Dated: April 26, 2018.
Linda E. McMahon,
Administrator.
[FR Doc. 2018-09627 Filed 5-4-18; 8:45 am]
 BILLING CODE 8025-01-P
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