Development Company Loan Program-Job Creation and Retention Requirements; Additional Areas for Higher Portfolio Average, 55224-55226 [2018-24033]
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Federal Register / Vol. 83, No. 213 / Friday, November 2, 2018 / Notices
Kenner, 100 F Street NE, Washington,
DC 20549 or send an email to: PRA_
Mailbox@sec.gov. Comments must be
submitted to OMB within 30 days of
this notice.
Dated: October 29, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–23962 Filed 11–1–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–282, OMB Control No.
3235–0318]
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Extension:
Form N–4
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission (the
‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
The collection of information is
entitled: ‘‘Form N–4 (17 CFR 239.17b)
under the Securities Act of 1933 and (17
CFR 274.11c) under the Investment
Company Act of 1940, registration
statement of separate accounts
organized as unit investment trust.’’
Form N–4 is the form used by insurance
company separate accounts organized as
unit investment trusts that offer variable
annuity contracts to register as
investment companies under the
Investment Company Act of 1940 (15
U.S.C. 80a–1 et seq.) and/or to register
their securities under the Securities Act
of 1933 (15 U.S.C. 77a et seq.). Section
5 of the Securities Act (15 U.S.C. 77e)
requires the filing of a registration
statement prior to the offer of securities
to the public and that the registration
statement be effective before any
securities are sold, and Section 8 of the
Investment Company Act (15 U.S.C.
80a–8) provides for the registration of
investment companies. Pursuant to
Form N–4, separate accounts organized
as unit investment trusts that offer
variable annuity contracts provide
investors with a prospectus and a
statement of additional information
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17:57 Nov 01, 2018
Jkt 247001
covering essential information about a
separate account. Section 5(b) of the
Securities Act requires that investors be
provided with a prospectus containing
the information required in a
registration statement prior to or at the
time of sale or delivery of securities.
The purpose of Form N–4 is to meet
the filing and disclosure requirements of
the Securities Act and the Investment
Company Act and to enable filers to
provide investors with information
necessary to evaluate an investment in
a security. The information required to
be filed with the Commission permits
verification of compliance with
securities law requirements and assures
the public availability and
dissemination of the information.
The estimated annual number of
filings on Form N–4 is 35 initial
registration statements and 1,326 posteffective amendments. The estimated
average number of portfolios per filing
is one, both for initial registration
statements and post-effective
amendments on Form N–4.
Accordingly, the estimated number of
portfolios referenced in initial Form N–
4 filings annually is 35 and the
estimated number of portfolios
referenced in post-effective amendment
filings on Form N–4 annually is 1,326.
The estimate of the annual hour burden
for Form N–4 is approximately 278.5
hours per initial registration statement
and 197.25 hours per post-effective
amendment, for a total of 271,301 hours
((35 initial registration statements ×
278.5 hours) + (1,326 post-effective
amendments × 197.25 hours)).
The current estimated annual cost
burden for preparing an initial Form N–
4 filing is $24,858 per portfolio and the
current estimated annual cost burden
for preparing a post-effective
amendment filing on Form N–4 is
$23,561 per portfolio. The Commission
estimates that, on an annual basis, 35
portfolios will be referenced in initial
Form N–4 filings and 1,326 portfolios
will be referenced in post-effective
amendment filings on Form N–4. Thus,
the estimated total annual cost burden
allocated to Form N 4 would be
$32,111,916 ((35 × $24,858) + (1,326 ×
$23,561)).
Providing the information required by
Form N–4 is mandatory. Responses will
not be kept confidential. Estimates of
average burden hours are made solely
for the purposes of the Paperwork
Reduction Act, and are not derived from
a comprehensive or even a
representative survey or study of the
costs of Commission rules and forms.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless it
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displays a currently valid control
number.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
Please direct your written comments
to Charles Riddle, Acting Director/Chief
Information Officer, Securities and
Exchange Commission, C/O Candace
Kenner, 100 F Street NE, Washington,
DC 20549; or send an email to: PRA_
Mailbox@sec.gov.
Dated: October 29, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–23957 Filed 11–1–18; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[Docket No.: SBA–2018–0010]
Development Company Loan
Program—Job Creation and Retention
Requirements; Additional Areas for
Higher Portfolio Average
U.S. Small Business
Administration.
ACTION: Notification of changes to
Development Company Program;
request for comments.
AGENCY:
The Small Business
Administration (SBA) is changing the
job creation or retention requirements
under its Development Company Loan
Program (504 Loan Program) by
increasing the dollar amounts used in
calculating the number of jobs that must
be created or retained for each 504
Project and for the portfolio average of
each Certified Development Company.
In addition, SBA is designating
additional areas for application of the
higher portfolio average.
DATES: Applicability Date: The job
creation or retention requirements and
the designation of the additional areas
that are described in this document will
apply to all 504 loans that are approved
SUMMARY:
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Federal Register / Vol. 83, No. 213 / Friday, November 2, 2018 / Notices
under the 504 Loan Program on or after
November 2, 2018.
Comment Date: SBA must receive
comments on or before December 3,
2018.
ADDRESSES: You may submit comments,
identified by Docket No. SBA–2018–
0010, by any of the following methods:
(1) Federal eRulemaking Portal: https://
www.regulations.gov, following the
instructions for submitting comments;
or (2) Mail/Hand Delivery/Courier:
Babak Hosseini, Finance and Loan
Specialist, Office of Financial
Assistance, U.S. Small Business
Administration, 409 3rd Street SW,
Washington DC 20416.
SBA will post all 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,
you must submit such information to
U.S. Small Business Administration,
409 3rd Street SW, Washington, DC
20416, Attn: Babak Hosseini, Finance
and Loan Specialist; or send an email to
babak.hosseini@sba.gov. Highlight the
information that you consider to be CBI
and explain why you believe SBA
should hold this information as
confidential. SBA will review your
information and determine whether it
will make the information public.
FOR FURTHER INFORMATION CONTACT:
Babak Hosseini, Finance and Loan
Specialist, Office of Financial
Assistance, U.S. Small Business
Administration; telephone: 202–205–
7076; email: babak.hosseini@sba.gov.
SUPPLEMENTARY INFORMATION: The 504
Loan Program is an SBA financing
program authorized under Title V of the
Small Business Investment Act of 1958
(the SBIAct), 15 U.S.C. 695 et seq. The
purpose of the 504 Loan Program is to
foster economic development and to
create or preserve job opportunities in
both urban and rural areas by providing
long-term financing for small business
concerns. See section 501(a) of the
SBIAct, 15 U.S.C. 695(a). Under the 504
Loan Program, loans are made to small
business applicants by Certified
Development Companies (CDCs), which
are certified and regulated by SBA to
promote economic development within
their community. In general, a project in
the 504 Loan Program (a 504 Project) is
financed through: A loan obtained from
a private sector lender with a senior lien
covering at least 50 percent of the
project cost; a loan obtained from a CDC
(a 504 Loan) with a junior lien covering
up to 40 percent of the total cost (backed
by a 100 percent SBA-guaranteed
debenture); and a contribution from the
Borrower of at least 10 percent equity.
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To qualify for financing under the 504
Loan Program, each 504 Project must
satisfy one of the economic
development objectives or public policy
goals set forth in sections 501(d)(1)
through (3) of the SBIAct. Under section
501(d)(1), a Project is eligible for 504
financing if it creates job opportunities
within two years of completion of the
Project or if it preserves jobs attributable
to the Project. To satisfy this objective
under current requirements, each 504
Project must create or preserve one job
for every $65,000 guaranteed by SBA; in
the case of a small manufacturing
Project, the amount is $100,000. See
section 501(e)(1) of the SBIAct and 74
FR 16432 (April 10, 2009).
If the Project is eligible for financing
under one of the objectives or goals set
forth in section 501(d)(2) or (3), the
Project need not satisfy the job creation
or preservation criteria described above,
but the CDC’s overall portfolio of
outstanding debentures must meet or
exceed the job creation or preservation
criteria of one job for every $65,000
guaranteed by SBA. See section
501(e)(2) of the SBIAct and 74 FR 16432
(April 10, 2009). In addition, for projects
in Alaska, Hawaii, State-designated
enterprise zones, empowerment zones
and enterprise communities, labor
surplus areas (as determined by the
Secretary of Labor), and for other areas
designated by SBA, the CDC’s portfolio
may average not more than $75,000 per
job created or retained. See section
501(e)(3) of the SBIAct; 74 FR 16432
(April 10, 2009). (Loans for Projects of
small manufacturers are excluded from
the overall portfolio calculations.)
In the application for a loan under the
504 Loan Program, the borrower enters
the number of jobs to be created or
retained as a result of the Project and
the CDC verifies that the Project meets
the job creation or retention
requirements. In addition, the job
impact data is entered into SBA’s
database, and the application data
combined with data from annual CDC
reports is used to report the total
number of jobs created or retained.
The SBIAct authorizes SBA to
develop the job creation or job
preservation criteria that apply to the
504 Loan Program. See section 501(d) of
SBIAct (last freestanding paragraph after
paragraph 501(d)(3)(L)). SBA’s
regulations provide that ‘‘[a] Project
must create or retain one Job
Opportunity per an amount of 504 loan
funding that will be specified by SBA
from time to time in a Federal Register
notice.’’ 13 CFR 120.861. SBA’s
regulations also provide that ‘‘[a] CDC’s
portfolio must maintain a minimum
average of one Job Opportunity per an
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55225
amount of 504 loan funding that will be
specified by SBA from time to time in
a Federal Register notice.’’ 13 CFR
120.829(a).
The standard of one job for every
$65,000 guaranteed by SBA, which
applies to both individual Projects and
to the CDC’s overall portfolio average,
has been in effect since it was adopted
in 2009. See section 504(b) of the
American Recovery and Reinvestment
Act of 2009, Public Law 111–5. In
addition, the standards for both (1)
Projects of small manufacturers, and (2)
Projects in Alaska, Hawaii, Statedesignated enterprise zones,
empowerment zones and enterprise
communities, labor surplus areas (as
determined by the Secretary of Labor),
and other areas designated by the
Administrator of SBA, have not been
changed since they were first enacted in
2004 by section 105 of the Small
Business Reauthorization and
Manufacturing Assistance Act of 2004,
Public Law 108–447. For small
manufacturing Projects, the standard is
one job for every $100,000 guaranteed
by SBA; for Projects in Alaska, Hawaii
and other designated areas, the standard
is that the CDC’s portfolio may average
not more than $75,000 per job created
or retained.
Although the job creation or retention
standards for the 504 Loan Program
have not been increased since 2009, and
in some cases earlier, the Consumer
Price Index for All Urban Consumers
has increased 19% from 2009 through
August 2018 according to the Bureau of
Labor Statistics of the U.S. Department
of Labor. Accordingly, pursuant to 13
CFR 120.829(a) and 120.861, SBA is
modifying the Job Opportunity
requirements as follows:
(1) A Project must create or retain one
Job Opportunity per $75,000 guaranteed
by SBA except that, in the case of a
Project of a small manufacturer, the
Project must create or retain one Job
Opportunity per $120,000 guaranteed by
SBA;
(2) For Projects that are eligible under
13 CFR 120.862, ‘‘Other economic
development objectives,’’ a CDC’s
portfolio must reflect an average of one
Job Opportunity for every $75,000
guaranteed by SBA; and
(3) For Projects in Alaska, Hawaii,
State-designated enterprise zones,
empowerment zones and enterprise
communities, labor surplus areas (as
determined by the Secretary of Labor),
and for other areas designated by SBA,
the CDC’s portfolio may average not
more than $85,000 per job created or
retained.
In addition, pursuant to section
501(e)(3) of the SBIAct, 15 U.S.C.
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Federal Register / Vol. 83, No. 213 / Friday, November 2, 2018 / Notices
695(e)(3), SBA is designating
‘‘Opportunity Zones’’ as additional
areas for which the higher portfolio
average described in paragraph (3)
above would apply. An Opportunity
Zone is an economically distressed
community that has been nominated by
the State and certified by the Secretary
of the U.S. Treasury as a community in
which new investments, under certain
conditions, may be eligible for
preferential tax treatment. More
information and a list of Opportunity
Zones for all States are available at
https://www.cdfifund.gov/Pages/
Opportunity-Zones.aspx.
SBA has determined that the changes
described in this Notice should apply
immediately to any 504 Loan that is
approved on or after November 2, 2018
in order to give CDCs and small
business applicants the benefits of these
changes as soon as possible and because
neither the new job creation/retention
requirements nor the additional areas
designated for application of the higher
portfolio average will adversely affect
either CDCs or their small business
applicants.
SBA invites public comments on
these new job creation or preservation
standards and the designation of
additional areas for application of the
higher portfolio average described
above. Please clearly identify paper and
electronic comments as ‘‘Public
Comments on 504 Loan Program’s Job
Opportunity Requirements, Docket No.
SBA–2018–0010’’ and submit them by
one of the methods identified in the
ADDRESSES section of this document.
SBA will consider the comments and
determine whether any revisions are
necessary.
Authority: 15 U.S.C. 695(d); 13 CFR
120.829(a) and 120.861.
Dated: October 29, 2018.
Linda E. McMahon,
Administrator.
[FR Doc. 2018–24033 Filed 11–1–18; 8:45 am]
BILLING CODE 8025–01–P
SOCIAL SECURITY ADMINISTRATION
[Docket No. SSA–2018–0062]
Privacy Act of 1974; System of
Records
Office of the Commissioner,
Social Security Administration (SSA).
ACTION: Notice of a modified system of
records.
AGENCY:
In accordance with the
Privacy Act, we are issuing public
notice of our intent to modify an
existing system of records entitled,
SUMMARY:
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17:57 Nov 01, 2018
Jkt 247001
Assignment and Correspondence
Tracking (ACT) System (60–0001), last
published in full on January 11, 2006.
This notice publishes details of the
proposed updates as set forth below
under the caption, SUPPLEMENTARY
INFORMATION.
The system of records notice
(SORN) is applicable upon its
publication in today’s Federal Register,
with the exception of the routine uses,
which are effective December 3, 2018.
We invite public comment on the
routine uses or other aspects of this
SORN. In accordance with 5 U.S.C.
552a(e)(4) and (e)(11), the public is
given a 30-day period in which to
submit comments. Therefore, please
submit any comments by December 3,
2018.
DATES:
The public, Office of
Management and Budget (OMB), and
Congress may comment on this
publication by writing to the Executive
Director, Office of Privacy and
Disclosure, Office of the General
Counsel, SSA, Room G–401 West High
Rise, 6401 Security Boulevard,
Baltimore, Maryland 21235–6401, or
through the Federal e-Rulemaking Portal
at https://www.regulations.gov, please
reference docket number SSA–2018–
0062. All comments we receive will be
available for public inspection at the
above address and we will post them to
https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
Tristin Dorsey, Government Information
Specialist, Privacy Implementation
Division, Office of Privacy and
Disclosure, Office of the General
Counsel, SSA, Room G–401 West High
Rise, 6401 Security Boulevard,
Baltimore, Maryland 21235–6401,
telephone: (410) 965–2950, email:
tristin.dorsey@ssa.gov.
SUPPLEMENTARY INFORMATION: We are
modifying the system of records name
from ACT System, SSA, Office of the
Commissioner, to the Electronic
Management of Assignments and
Correspondence (EMAC) to accurately
reflect the system name, hereinafter
referred to as EMAC. We are also
modifying the notice throughout to
correct miscellaneous stylistic
formatting and typographical errors of
the previously published Notice, and to
ensure the language reads consistently
across multiple systems.
We are modifying the system manager
to clarify the name of the office and
specifying in the categories of records
that correspondence may be received in
all agency offices. We are revising the
categories of individuals and explaining
how the records are retrieved. We are
ADDRESSES:
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also adding new routine uses to clarify
that records may be provided to the
Department of Treasury, Internal
Revenue Service (IRS), for auditing
purposes, to contractors and other
Federal agencies for the purpose of
assisting SSA in the efficient
administration of its programs, and to
other Federal agencies and entities for
the purpose of assisting in breach
responses. The entire notice is being
republished for ease of reference.
In accordance with 5 U.S.C. 552a(r),
we have provided a report to OMB and
Congress on this new system of records.
Dated: October 25, 2018.
Mary Zimmerman,
Acting Executive Director, Office of Privacy
and Disclosure, Office of the General Counsel.
SYSTEM NAME AND NUMBER
Electronic Management of
Assignments and Correspondence, 60–
0001.
SECURITY CLASSIFICATION:
Unclassified.
SYSTEM LOCATION:
Social Security Administration, Office
of the Commissioner, Robert M. Ball
Building, 6401 Security Boulevard,
Baltimore, Maryland 21235–6401.
SYSTEM MANAGER(S):
Social Security Administration, Chief
of Staff, Office of the Commissioner,
Robert M. Ball Building, 6401 Security
Boulevard, Baltimore, MD 21235–6401,
OC.Controls@ssa.gov.
AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
Sections 205 and 1631 of the Social
Security Act, as amended (42 U.S.C.
405) and (42 U.S.C. 1383).
PURPOSE(S) OF THE SYSTEM:
We will use the information in this
system to assist us in supporting agency
objectives to track, manage, and respond
to external correspondence received
from members of the public, the media,
the White House, Congress, and other
Federal agencies that require
information or a response from SSA. We
will also use this system to track and
manage correspondence and
assignments within SSA, and use the
system to make assignments to agency
employees to respond to the external
requests. The system is an internal webbased system allowing authorized
employees at all organizational levels to
electronically access, create, assign, and
process correspondence from the receipt
of an inquiry through its completed
response.
E:\FR\FM\02NON1.SGM
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]]>Agencies
[Federal Register Volume 83, Number 213 (Friday, November 2, 2018)]
[Notices]
[Pages 55224-55226]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24033]
=======================================================================
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SMALL BUSINESS ADMINISTRATION
[Docket No.: SBA-2018-0010]
Development Company Loan Program--Job Creation and Retention
Requirements; Additional Areas for Higher Portfolio Average
AGENCY: U.S. Small Business Administration.
ACTION: Notification of changes to Development Company Program; request
for comments.
-----------------------------------------------------------------------
SUMMARY: The Small Business Administration (SBA) is changing the job
creation or retention requirements under its Development Company Loan
Program (504 Loan Program) by increasing the dollar amounts used in
calculating the number of jobs that must be created or retained for
each 504 Project and for the portfolio average of each Certified
Development Company. In addition, SBA is designating additional areas
for application of the higher portfolio average.
DATES: Applicability Date: The job creation or retention requirements
and the designation of the additional areas that are described in this
document will apply to all 504 loans that are approved
[[Page 55225]]
under the 504 Loan Program on or after November 2, 2018.
Comment Date: SBA must receive comments on or before December 3,
2018.
ADDRESSES: You may submit comments, identified by Docket No. SBA-2018-
0010, by any of the following methods: (1) Federal eRulemaking Portal:
https://www.regulations.gov, following the instructions for submitting
comments; or (2) Mail/Hand Delivery/Courier: Babak Hosseini, Finance
and Loan Specialist, Office of Financial Assistance, U.S. Small
Business Administration, 409 3rd Street SW, Washington DC 20416.
SBA will post all 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, you must submit such
information to U.S. Small Business Administration, 409 3rd Street SW,
Washington, DC 20416, Attn: Babak Hosseini, Finance and Loan
Specialist; or send an email to [email protected]. Highlight the
information that you consider to be CBI and explain why you believe SBA
should hold this information as confidential. SBA will review your
information and determine whether it will make the information public.
FOR FURTHER INFORMATION CONTACT: Babak Hosseini, Finance and Loan
Specialist, Office of Financial Assistance, U.S. Small Business
Administration; telephone: 202-205-7076; email: [email protected].
SUPPLEMENTARY INFORMATION: The 504 Loan Program is an SBA financing
program authorized under Title V of the Small Business Investment Act
of 1958 (the SBIAct), 15 U.S.C. 695 et seq. The purpose of the 504 Loan
Program is to foster economic development and to create or preserve job
opportunities in both urban and rural areas by providing long-term
financing for small business concerns. See section 501(a) of the
SBIAct, 15 U.S.C. 695(a). Under the 504 Loan Program, loans are made to
small business applicants by Certified Development Companies (CDCs),
which are certified and regulated by SBA to promote economic
development within their community. In general, a project in the 504
Loan Program (a 504 Project) is financed through: A loan obtained from
a private sector lender with a senior lien covering at least 50 percent
of the project cost; a loan obtained from a CDC (a 504 Loan) with a
junior lien covering up to 40 percent of the total cost (backed by a
100 percent SBA-guaranteed debenture); and a contribution from the
Borrower of at least 10 percent equity.
To qualify for financing under the 504 Loan Program, each 504
Project must satisfy one of the economic development objectives or
public policy goals set forth in sections 501(d)(1) through (3) of the
SBIAct. Under section 501(d)(1), a Project is eligible for 504
financing if it creates job opportunities within two years of
completion of the Project or if it preserves jobs attributable to the
Project. To satisfy this objective under current requirements, each 504
Project must create or preserve one job for every $65,000 guaranteed by
SBA; in the case of a small manufacturing Project, the amount is
$100,000. See section 501(e)(1) of the SBIAct and 74 FR 16432 (April
10, 2009).
If the Project is eligible for financing under one of the
objectives or goals set forth in section 501(d)(2) or (3), the Project
need not satisfy the job creation or preservation criteria described
above, but the CDC's overall portfolio of outstanding debentures must
meet or exceed the job creation or preservation criteria of one job for
every $65,000 guaranteed by SBA. See section 501(e)(2) of the SBIAct
and 74 FR 16432 (April 10, 2009). In addition, for projects in Alaska,
Hawaii, State-designated enterprise zones, empowerment zones and
enterprise communities, labor surplus areas (as determined by the
Secretary of Labor), and for other areas designated by SBA, the CDC's
portfolio may average not more than $75,000 per job created or
retained. See section 501(e)(3) of the SBIAct; 74 FR 16432 (April 10,
2009). (Loans for Projects of small manufacturers are excluded from the
overall portfolio calculations.)
In the application for a loan under the 504 Loan Program, the
borrower enters the number of jobs to be created or retained as a
result of the Project and the CDC verifies that the Project meets the
job creation or retention requirements. In addition, the job impact
data is entered into SBA's database, and the application data combined
with data from annual CDC reports is used to report the total number of
jobs created or retained.
The SBIAct authorizes SBA to develop the job creation or job
preservation criteria that apply to the 504 Loan Program. See section
501(d) of SBIAct (last freestanding paragraph after paragraph
501(d)(3)(L)). SBA's regulations provide that ``[a] Project must create
or retain one Job Opportunity per an amount of 504 loan funding that
will be specified by SBA from time to time in a Federal Register
notice.'' 13 CFR 120.861. SBA's regulations also provide that ``[a]
CDC's portfolio must maintain a minimum average of one Job Opportunity
per an amount of 504 loan funding that will be specified by SBA from
time to time in a Federal Register notice.'' 13 CFR 120.829(a).
The standard of one job for every $65,000 guaranteed by SBA, which
applies to both individual Projects and to the CDC's overall portfolio
average, has been in effect since it was adopted in 2009. See section
504(b) of the American Recovery and Reinvestment Act of 2009, Public
Law 111-5. In addition, the standards for both (1) Projects of small
manufacturers, and (2) Projects in Alaska, Hawaii, State-designated
enterprise zones, empowerment zones and enterprise communities, labor
surplus areas (as determined by the Secretary of Labor), and other
areas designated by the Administrator of SBA, have not been changed
since they were first enacted in 2004 by section 105 of the Small
Business Reauthorization and Manufacturing Assistance Act of 2004,
Public Law 108-447. For small manufacturing Projects, the standard is
one job for every $100,000 guaranteed by SBA; for Projects in Alaska,
Hawaii and other designated areas, the standard is that the CDC's
portfolio may average not more than $75,000 per job created or
retained.
Although the job creation or retention standards for the 504 Loan
Program have not been increased since 2009, and in some cases earlier,
the Consumer Price Index for All Urban Consumers has increased 19% from
2009 through August 2018 according to the Bureau of Labor Statistics of
the U.S. Department of Labor. Accordingly, pursuant to 13 CFR
120.829(a) and 120.861, SBA is modifying the Job Opportunity
requirements as follows:
(1) A Project must create or retain one Job Opportunity per $75,000
guaranteed by SBA except that, in the case of a Project of a small
manufacturer, the Project must create or retain one Job Opportunity per
$120,000 guaranteed by SBA;
(2) For Projects that are eligible under 13 CFR 120.862, ``Other
economic development objectives,'' a CDC's portfolio must reflect an
average of one Job Opportunity for every $75,000 guaranteed by SBA; and
(3) For Projects in Alaska, Hawaii, State-designated enterprise
zones, empowerment zones and enterprise communities, labor surplus
areas (as determined by the Secretary of Labor), and for other areas
designated by SBA, the CDC's portfolio may average not more than
$85,000 per job created or retained.
In addition, pursuant to section 501(e)(3) of the SBIAct, 15 U.S.C.
[[Page 55226]]
695(e)(3), SBA is designating ``Opportunity Zones'' as additional areas
for which the higher portfolio average described in paragraph (3) above
would apply. An Opportunity Zone is an economically distressed
community that has been nominated by the State and certified by the
Secretary of the U.S. Treasury as a community in which new investments,
under certain conditions, may be eligible for preferential tax
treatment. More information and a list of Opportunity Zones for all
States are available at https://www.cdfifund.gov/Pages/Opportunity-Zones.aspx.
SBA has determined that the changes described in this Notice should
apply immediately to any 504 Loan that is approved on or after November
2, 2018 in order to give CDCs and small business applicants the
benefits of these changes as soon as possible and because neither the
new job creation/retention requirements nor the additional areas
designated for application of the higher portfolio average will
adversely affect either CDCs or their small business applicants.
SBA invites public comments on these new job creation or
preservation standards and the designation of additional areas for
application of the higher portfolio average described above. Please
clearly identify paper and electronic comments as ``Public Comments on
504 Loan Program's Job Opportunity Requirements, Docket No. SBA-2018-
0010'' and submit them by one of the methods identified in the
ADDRESSES section of this document. SBA will consider the comments and
determine whether any revisions are necessary.
Authority: 15 U.S.C. 695(d); 13 CFR 120.829(a) and 120.861.
Dated: October 29, 2018.
Linda E. McMahon,
Administrator.
[FR Doc. 2018-24033 Filed 11-1-18; 8:45 am]
BILLING CODE 8025-01-P
