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SBA | RIN: 3245-AG53 | Publication ID: Spring 2015 |
Title: Microloan Program Expanded Eligibility and Other Program Changes | |
Abstract:
This rule includes several policy changes requested by existing microloan intermediaries, as well as technical amendments to conform the regulations to current statutory authority. In addition, the rule would allow intermediaries to make loans to businesses with owners or employees who are on parole or probation. Currently, section 120.707(a) requires microborrowers to meet the same eligibility criteria as 7(a) and 504 borrowers (except that nonprofit child care businesses are eligible for microloans). Businesses with an Associate who is incarcerated, on probation, on parole, or currently under indictment for a felony or a crime of moral turpitude are ineligible for assistance under the 7(a) or 504 programs under 13 CFR 120.110; therefore, such businesses are currently ineligible for assistance under the Microloan Program as well. The rule would allow microloan intermediaries, subject to certain conditions, to make microloans to businesses with an Associate who is on parole or probation. SBA is proposing this change as a result of regulatory review conducted in connection with SBA's participation on the Federal Interagency Reentry Council (Reentry Council). The Reentry Council is an interagency task force led by the Department of Justice which seeks to explore ways in which agencies can reduce the Federal barriers to successful reentry of formerly incarcerated individuals in order to assist them in becoming productive citizens. Other changes in the rule include increasing the minimum number of loans that Microloan intermediaries must make annually, removing the requirement that the Microloan Revolving Fund and the Loan Loss Reserve Fund be held in Deposit Accounts that are interest-bearing, updating the definition of Insured Depository Institution to include credit unions, and a technical amendment to conform the regulations to current statutory authority. |
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Agency: Small Business Administration(SBA) | Priority: Other Significant |
RIN Status: Previously published in the Unified Agenda | Agenda Stage of Rulemaking: Final Rule Stage |
Major: No | Unfunded Mandates: No |
CFR Citation: 13 CFR 120 | |
Legal Authority: 15 U.S.C. 636(m) |
Legal Deadline:
None |
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Timetable:
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Additional Information: Included in SBA's Retrospective Review under Executive Orders 13563 and 13610. | |
Regulatory Flexibility Analysis Required: No | Government Levels Affected: None |
Small Entities Affected: Businesses | Federalism: No |
Included in the Regulatory Plan: No | |
RIN Data Printed in the FR: No | |
Agency Contact: Daniel Upham Chief, Microenterprise Development Division Small Business Administration 409 Third Street SW, Washington, DC 20416 Phone:202 205-7001 Fax:202 481-6564 Email: daniel.upham@sba.gov |