ua14no94 COMMODITY FUTURES TRADING COMMISSION (CFTC)...

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SMALL BUSINESS ADMINISTRATION (SBA)
Statement of Regulatory Priorities
In formulating its Regulatory Plan for the fiscal year 1995, the Small 
Business Administration (SBA) is mindful of the goals given to it by 
the President: to increase the availability of capital to small 
business owners, to ease the burden of regulation and paperwork on 
small business, and to streamline the Agency so that it can more 
effectively help create jobs and promote economic development.
In the financial assistance area, SBA will focus on improvement of its 
Guaranteed Loan, Certified Development Company, and Small Business 
Investment Company programs. The burden of regulation will be eased by 
changes in its required documentation and procedures for its Guaranteed 
Loan and Disaster Loan programs. To help with streamlining, SBA will 
revamp its existing regulations for the section 8(a) program (for 
socially and economically disadvantaged firms), for Small Business 
Development Centers, and for size determinations.
One proposed rule would augment the infusion of capital into the small 
business community by reducing the scope and complexity of the ``alter 
ego rule.'' This would relieve restrictions on small business 
applicants who seek SBA financial assistance through their real estate 
holding affiliates. SBA also intends to propose rules, analogous to 
those in its section 7(a) Certified Lenders Program, to expedite the 
processing of loans made to small businesses by Certified Development 
Companies.
SBA is presently in the midst of program-wide revisions to its 
regulations governing Small Business Investment Companies (SBICs). 
These revisions are designed to make the SBIC program more responsive 
to the needs of the financial marketplace. Several of these rules have 
already been finalized, including regulations creating a new form of 
leverage as well as other changes in SBA's administration of the SBIC 
Program. Another rule yet to be promulgated would eliminate, for 
nonleveraged SBICs, certain regulatory requirements no longer needed 
for protection of SBA's creditor position.
SBA plans to review and improve its documentation and procedures for 
the section 7(a) and Disaster Loan programs. These improvements may 
well lead to regulatory changes, as well as revisions to existing 
standard operating procedures. Another major objective will be efforts 
to eliminate any unnecessary regulatory burdens that inhibit the growth 
and productivity of small business. To this end, SBA continues to 
undertake broad-based periodic reviews of its existing programs to 
identify regulations that are overly complicated or unduly burdensome 
or that create other impediments to economic growth in the small 
business sector.
As a result of this review process, SBA has decided to modify key rules 
in several programs. It has already taken action to amend its media or 
``opinion molder'' rule to permit applicants engaged in media or media-
related industries to receive financial assistance from SBA. In 
addition to simplifying enforcement efforts, this revision is intended 
to promote job growth and economic development by making financial 
assistance available to a larger number of small businesses.
SBA is contemplating several wide-ranging revisions to its rules 
governing the section 8(a) program. Chief among these is a rulemaking, 
abstracted below, designed to attune the section 8(a) program more 
closely to the realities of the commercial environment in which it is 
intended to operate. Under the proposal, restrictions on self-marketing 
would be lessened, and the capacity of section 8(a) firms to raise 
capital would be increased by permitting owners to pledge their 
interests in such firms as collateral without adversely affecting their 
eligibility status.
SBA will publish a rulemaking, abstracted below, to clarify Agency 
policy with respect to its Small Business Development Center Program 
and to establish a framework for its effective and efficient operation.
SBA will also initiate several rulemakings to update and to simplify 
the size standards governing eligibility to participate in a broad 
range of SBA programs, including those in which Government procurements 
are set aside for competition by small business. One such rule would 
simplify the size determination process by reducing significantly the 
number of size standards employed to determine an entity's size status.
In its role as advocate for small business, SBA continues to monitor 
vigilantly and seek enforcement of the Regulatory Flexibility and 
Paperwork Reduction Acts as they impact upon small business. SBA also 
has commenced a project with the Office of Information and Regulatory 
Affairs to encourage Federal agencies to engage in a serious effort to 
reduce the burdens imposed by Government regulations on small business. 
Forums attended by senior representatives of six Federal agencies were 
held in March and in July 1994. A number of industry-specific working 
groups established in conjunction with these forums are concentrating 
on improvements not only to the regulatory processes of the agencies 
involved, but also to specific regulations that are unduly burdensome 
for those industries. This effort is ongoing and should produce 
tangible benefits during fiscal year 1995.
_______________________________________________________________________
SBA
            ___________________________________________________________
PROPOSED RULE STAGE
            ___________________________________________________________
194. SMALL BUSINESS DEVELOPMENT CENTERS
Legal Authority:


 PL 96-302; PL 98-395; PL 103-81


CFR Citation:


 13 CFR 129


Legal Deadline:


None


Abstract:


Comprehensive regulations governing the Small Business Development 
Center Program.


Statement of Need:


The SBDC program creates a partnership between SBA and organizations 
operating the SBDC networks for the provision of business development 
and technical assistance to small businesses in order to promote 
growth, expansion, innovation, increased productivity and improvements 
in management. The SBDC program has been operating under direct 
statutory authority without regulations. SBA is proposing these 
regulations to establish a framework for its effective and efficient 
operation. Many of the provisions set forth in this proposed rule are 
contained in or have arisen from legislative enactments or formalize 
current procedures used since the program's inception in 1980.


Summary of the Legal Basis:


The SBDC program is administered pursuant to section 21 of the Small 
Business Act. Public Law 102-366, the Small Business Credit and 
Business Opportunity Enhancement Act of 1992, prohibited SBA from 
issuing any rules for the SBDC program prior to submission and approval 
by Congress. Public Law 103-81, enacted on August 13, 1993, removed 
this prohibition.


Alternatives:


This rulemaking codifies existing SBA practice and procedure.


Anticipated Costs and Benefits:


This is a statutorily mandated program the costs of which are reflected 
in the annual appropriation. It is intended to provide aid to a broad 
spectrum of small businesses. Benefits from the provision of such 
assistance will accrue to the general economy in the form of new jobs 
and increased tax revenues.


Risks:


This regulation addresses no risks to the public health and safety or 
to the environment.


Timetable:
_______________________________________________________________________
Action                                 DFR Cite

_______________________________________________________________________
NPRM                                                           12/00/94
Small Entities Affected:


Businesses, Organizations


Government Levels Affected:


Federal


Agency Contact:
Johnnie L. Albertson
Associate Administrator for Small Business Development Centers
Small Business Administration
409 Third Street SW.
Washington, DC 20416
202 205-6766
RIN: 3245-AB17
_______________________________________________________________________
SBA
195. MINORITY SMALL BUSINESS AND CAPITAL OWNERSHIP DEVELOPMENT PROGRAM; 
ELIGIBILITY AND CONTRACTUAL ASSISTANCE
Legal Authority:


 15 USC 634(b)(6); 15 USC 636(j); 15 USC 637(a); 15 USC 637(d); PL 99-
661, sec 1207; PL 100-656; PL 101-37; PL 101-574


CFR Citation:


 13 CFR 124


Legal Deadline:


None


Abstract:


This rule is an amendment to the program regulations governing appeals 
of denials of program admission, graduation, and termination actions, 
and denials of requests for waiver of the requirement that, subject to 
certain conditions, an 8(a) contract must be performed by the 
contractor to which it was awarded.


Statement of Need:


This proposal amends several sections of SBA's regulations governing 
the section 8(a) Program, including restrictions on self-marketing; 
procedures for eligibility determination appeals, graduation and 
termination proceedings; use of ownership interests as collateral; 
receipt of contract awards in excess of a firm's support level and the 
methodology for valuating indefinite quantity, indefinite delivery 
contracts for complying with competition threshold requirements. Many 
of these revisions are required to attune the Program more closely to 
the realities of the commercial environment in which it must operate. 
Other revisions, concerning the eligibility status of concerns owned by 
community development corporations and criteria governing joint venture 
eligibility for small disadvantaged business set asides and evaluation 
preferences, are being implemented in response to statutes or court 
decisions.


Summary of the Legal Basis:


These regulations implement section 8(a) of the Small Business Act. The 
revision concerning program eligibility for firms owned by community 
development companies is authorized by Section 626(a)(2) of Public Law 
97-35; that concerning joint venture eligibility is mandated by a court 
decision requiring SBA to exercise jurisdiction over such matters.


Alternatives:


The revisions proposed amend existing provisions of SBA's program 
regulations.


Anticipated Costs and Benefits:


This rulemaking is designed to effect programmatic changes in SBA's 
section 8(a) Program and will affect that sector of the small business 
community designated as socially and economically disadvantaged. As 
such, no costs, other than administrative, will be incurred by SBA. 
Benefits accruing to the targeted business community and to the economy 
in general include enhancement of program opportunities, the creation 
of jobs and increased tax revenues.


Risks:


The rulemaking addresses no risk to the public health and safety or to 
the environment.


Timetable:
_______________________________________________________________________
Action                                 DFR Cite

_______________________________________________________________________
NPRM                                                           10/00/94
Small Entities Affected:


Businesses


Government Levels Affected:


Federal


Procurement:


This is a procurement-related action for which there is a statutory 
requirement. There is no paperwork burden associated with this action.

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