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SBA RIN: 3245-AG18 Publication ID: Fall 2010 
Title: ●Small Business Jobs Act: Small Business Intermediary Lending Pilot Program 
Abstract: The Small Business Jobs Act directs SBA to conduct a 3-year Small Business Intermediary Lending Pilot Program. SBA will provide loans to eligible intermediaries for the purpose of making loans to start-up, newly established, and growing small business concerns. The rule implements the statute and sets the terms and conditions of the loans made under the Program. 
Agency: Small Business Administration(SBA)  Priority: Other Significant 
RIN Status: First time published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 13 CFR 120, subpart L     (To search for a specific CFR, visit the Code of Federal Regulations.)
Legal Authority: PL 111-240, sec 1131   
Legal Deadline:
Action Source Description Date
Final  Statutory  sec 1131(b) of the Jobs Act requires SBA to issue implementing regulations no later than March 26, 2011.  03/26/2011 

Statement of Need: Due to higher underwriting requirements and resource constraints faced by banks, small business borrowers face significant gaps in the credit market. As a result of these gaps, more small business borrowers are turning to nonprofit lending intermediaries to provide low-cost alternatives to traditional bank financing. These nonprofit lending intermediaries have experience offering the financial products and services that banks, for various reasons, are unable or unwilling to offer. The ILPP will help to fill these credit gaps by providing very low interest loans to selected intermediaries. The intermediaries will then use the money to make loans to small businesses that have needs exceeding the limits of SBA’s Microloan program but cannot obtain financing through a conventional lender, even with a 7(a) guaranty.

Summary of the Legal Basis: Section 1131(b) of the Jobs Act requires SBA to issue regulations no later than March 26, 2011, in order to implement the intermediary lending pilot program.

Alternatives: Because the Jobs Act requires SBA to issue regulations, the Agency cannot consider other alternatives ways to carry out the lending program pilot authority.

Anticipated Costs and Benefits: SBA has not yet analyzed the costs and benefits resulting from the implementation of the intermediary lending pilot program.

Risks: Yet to be determined.

Timetable:
Action Date FR Cite
Interim Final Rule  02/00/2011    
Regulatory Flexibility Analysis Required: Yes  Government Levels Affected: None 
Small Entities Affected: Businesses  Federalism: No 
Included in the Regulatory Plan: Yes 
RIN Data Printed in the FR: Yes 
Agency Contact:
Grady Hedgespeth
Director, Office of Financial Assistance
Small Business Administration
409 Third Street SW.,
Washington, DC 20416
Phone:202 205-7562
Fax:202 481-0248
Email: grady.hedgespeth@sba.gov