Small Business Investment Company Information System Modification

SMALL BUSINESS ADMINISTRATION

Small Business Investment Company Information System Modification

AGENCY: U.S. Small Business Administration.

ACTION: Notice of a modified system of records.

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SUMMARY: The U.S. Small Business Administration (SBA) proposes to

modify its system of records, titled Small Business Investment Company

Information System (SBICIS) (SBA

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SBICS 40), to update its inventory of records systems subject to the

Privacy Act of 1974, as amended. Publication of this notice complies

with the Privacy Act and the Office of Management and Budget (OMB)

Circular A-108 and Circular A-130. System of Records Notice (SORN)

titled, Small Business Investment Company Information System (SBA SBICS

40), serves as a centralized and automated framework for the

organization, retrieval, and analysis of information which supports the

SBA's oversight and risk management roles for the SBIC program and

SBA's technical assistance to and related support of any Capital

Assistance Program (defined below).

DATES: Submit comments on or before [30 days from date of publication

in the Federal Register], 2025. This revised system will be effective

upon publication. Routine uses will become effective on the date

following the end of the comment period unless comments are received

which result in a contrary determination.

ADDRESSES: You may submit comments on this notice, identified by Docket

Number SBA-2025-0069 by any of the following methods:

Federal e-Rulemaking Portal:http://www.regulations.gov.

Follow the instructions for submitting comments for Docket Number SBA-

2025-0069.

Mail/Hand Delivery/Courier: Submit written comments to:

Thomas Morris, Acting Deputy Associate Administrator, OII, Office of

Investment and Innovation, U.S. Small Business Administration, 409 3rd

Street SW, Washington, DC 20416.

FOR FURTHER INFORMATION CONTACT: General questions, please contact

Thomas Morris, Acting Deputy Associate Administrator, OII, Office of

Investment and Innovation, U.S. Small Business Administration, 409 3rd

Street SW, Washington, DC 20416 or via email, [email protected],

telephone 202-205-7366 or Mike Post, Chief Information Security

Officer, Office of the Chief Information Officer, U.S. Small Business

Administration, 409 3rd Street SW, Suite 4000, Washington, DC 20416,

email address: [email protected], telephone 202-205-3645. For

Privacy related matters, please contact Mike Post, Acting Chief Privacy

Officer, Office of the Chief Information Officer, or via email to

[email protected].

SUPPLEMENTARY INFORMATION: The Privacy Act of 1974 (5 U.S.C. 552a), as

amended, embodies fair information practice principles in a statutory

framework governing how federal agencies collect, maintain, use, and

disseminate individuals' personal information. The Privacy Act applies

to records about individuals that are maintained in a ``system of

records.'' A system of records is any group of records under the

control of a federal agency from which information is retrieved by the

name of an individual or by a number, symbol or any other identifier

assigned to the individual. The Privacy Act requires each federal

agency to publish in the Federal Register a System of Records Notice

(SORN) identifying and describing each system of records the agency

maintains, the purpose for which the agency uses the Personally

Identifiable Information (PII) in the system, the routine uses for

which the agency discloses such information outside the agency, and how

individuals can exercise their rights related to their PII information.

The modified Privacy Act system of records titled Small Business

Investment Company Information System (SBICIS) (SBA 40) will be used to

provide notice to current and former (i) prospective Small Business

Investment Company license applicants, (ii) SBIC applicants, (iii)

SBICs (solely for the purpose of this SORN, the term ``SBIC'' refers to

each of (i), (ii), (iii)), and to applicants, prospective applicants,

and licensees under any Capital Assistance Program, as defined below.

This includes managers, executives, members, and employees associated

or affiliated with an SBIC or a Capital Assistance Program applicant/

licensee (``CAP Entity''), and personal and professional references for

certain of the foregoing. It also includes investors, portfolio

companies, certain portfolio company employees, service providers, and

certain other individuals associated, affiliated or involved with an

SBIC or a CAP Entity.

Additionally, this modification to SBA SBICIS 40 includes changes

to routine use (H) to reflect SBA's role relative to Capital Assistance

Programs, as defined below.

This system of records is comprised of electronic records managed

by the Office of Investment and Innovation (OII). SBA SBICIS 40 will

not have any undue impact on the privacy of individuals and its use is

compatible with collection.

SYSTEM NAME AND NUMBER:

Small Business Investment Company Information System (SBA SBICIS

40).

SECURITY CLASSIFICATION:

Controlled Unclassified Information.

SYSTEM LOCATION:

SBA Headquarters, 409 3rd Street SW, Washington, DC 20416 and

vendor cloud platform.

SYSTEM MANAGER(S):

Thomas Morris, Acting Deputy Associate Administrator, OII, Office

of Investment and Innovation, U.S. Small Business Administration, 409

3rd Street SW, Washington, DC 20416 or via email [email protected],

telephone 202-205-7366.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:

The Small Business Investment Act of 1958, as amended, 15 U.S.C.

661, et seq.

CATEGORIES OF RECORDS IN THE SYSTEM:

Personal and commercial information (including name, address,

telephone number, credit history, background information, business

information, employer identification number, SBIC or CAP Entity License

number, financial information, investor commitments, identifying number

or other personal identifiers, regulatory compliance information) on

individuals and portfolio companies named in SBIC or CAP Entity files.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES

OF USERS AND PURPOSES OF SUCH USES:

In addition to those disclosures generally permitted under 5 U.S.C.

552a(b) of the Privacy Act, all or a portion of the information

contained in this system may be disclosed to authorized entities, as is

determined to be relevant and necessary, outside SBA as a routine use

pursuant to 5 U.S.C. 552a(b)(3) as follows:

A. To the Department of Justice (DOJ), including offices of the

U.S. Attorneys, or other Federal agency conducting litigation or in

proceedings before any court, adjudicative, or administrative body,

when it is deemed by the SBA to be relevant or necessary to the

litigation or SBA has an interest in such litigation when any of the

following are a party to the litigation or have an interest in the

litigation: (1) Any employee or former employee of the SBA in his or

her official capacity; (2) Any employee or former employee of the SBA

in his or her individual capacity when DOJ or SBA has agreed to

represent the employee or a party to the litigation or have an interest

in the litigation; or (3) The United States or any agency thereof.

B. To a Congressional office from the record of an individual in

response to an inquiry from that Congressional office made at the

request of the individual. The member's access rights are no greater

than those of the individual.

C. To the National Archives and Records Administration (NARA) or

General Services Administration (GSA) pursuant to records management

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inspections being conducted under the authority of 44 U.S.C. 2904 and

2906.

D. To an agency or organization, including the SBA's Office of

Inspector General, for the purpose of performing audit or oversight

operations as authorized by law, but only such information as is

necessary and relevant to such audit or oversight function.

E. To appropriate agencies, entities, and persons when: (1) The SBA

suspects or has confirmed that the security or confidentiality of

information processed and maintained by the SBA has been compromised,

(2) the SBA has determined that as a result of the suspected or

confirmed compromise, there is a risk of identity theft or fraud, harm

to economic or property interests, harm to an individual, or harm to

the security or integrity of this system or other systems or programs

(whether maintained by SBA or any other agency or entity) that rely

upon the compromised information; and (3) the disclosure made to such

agencies, entities, and persons is reasonably necessary to assist in

connection with the SBA's efforts to respond to the suspected or

confirmed compromise and prevent, minimize, or remedy such harm.

F. To another Federal agency or Federal entity, when the SBA

determines that information from this system of records is reasonably

necessary to assist the recipient agency or entity in: (1) Responding

to a suspected or confirmed breach or (2) preventing, minimizing, or

remedying the risk of harm to individuals, the recipient agency or

entity (including its information systems, programs, and operations),

the Federal Government, or national security, resulting from a

suspected or confirmed breach.

G. To another agency or agent of a government jurisdiction within

or under the control of the U.S., lawfully engaged in national security

or homeland defense when disclosure is undertaken for intelligence,

counterintelligence activities (as defined by 50 U.S.C. 3003(3)),

counterterrorism, homeland security, or related law enforcement

purposes, as authorized by U.S. law or Executive Order.

H. To other Federal agencies or Federal entities when mandated by

executive orders or statute, or as documented by a Memorandum of

Understanding or Memorandum of Agreement or Information Exchange

Agreement or Data Sharing Agreement (each an ``Agreement'') and

approved by the applicable Authorizing Officials in compliance with the

Privacy Act of 1974, as amended, 5 U.S.C. 552a and SBA's policies,

specifically including any Agreement under which SBA, through its

Office of Investment and Innovation and supporting offices, provides

technical assistance and support to a federal loan or guarantee program

authorized by statutes and designed to provide investment capital

assistance to eligible businesses (each such program for purposes of

this SORN a ``Capital Assistance Program.'') These Agreements may be

subject to review and approval by SBA's Office of General Counsel and

SBA's Senior Agency Official for Privacy or designee.

I. To other Federal agencies or Federal entities in aggregate and

anonymized for the purpose of marketing, trends, statistical analysis,

forecasting, reporting, and research where the information must

preserve anonymity.

J. To SBA contractors, grantees, interns, regulators, and experts

who have been engaged by SBA to assist in the performance and

performance improvement of a service related to this system of records

and who need access to records to perform this activity which may also

include for regulatory purposes. Recipients of these records shall be

required to comply with the requirements of the Privacy Act of 1974, as

amended, 5 U.S.C. 552a.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:

SBICIS records are retrieved by SBIC name, CAP Entity name, or

Portfolio Company Name, affiliation with a particular SBIC or CAP

Entity personal identifier, SBA identifier, employer identification

number, or any other data field that would enable SBA to perform its

official duties.

POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:

Records are maintained in accordance with SBA Standard Operating

Procedure (SOP) 00 41 latest edition, applicable General Records

Schedules (GRS) and are disposed of in accordance with applicable SBA

policies.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:

Information stored by SBICIS is stored electronically and supported

by the applicable Privacy Impact Assessment(s). Data is protected

through the implementation of access controls--least permissions, role-

based user permissions, event logging, monitoring, security assessment

and authorization reviews, encryption transmission and encrypted data

at rest. Safeguards implemented comply to SBA policies, industry best

practices, and Federal Government standards, memoranda, and circulars.

RECORD ACCESS PROCEDURES:

Individuals wishing to request access to records about them should

submit a Privacy Act request to the SBA Chief, Freedom of Information

and Privacy Act Office, U.S. Small Business Administration, 409 Third

St. SW, Eighth Floor, Washington, DC 20416 or [email protected].

Individuals must provide their full name, mailing address, personal

email address, telephone number, and a detailed description of the

records being requested. Individuals requesting access must also follow

SBA's Privacy Act regulations regarding verification of identity and

access to records (13 CFR part 102 subpart B).

EXEMPTIONS PROMULGATED FOR THE SYSTEM:

None.

HISTORY:

[FR Doc. 2019-19153, Vol. 84, No. 172; FR Doc. 2024-08000, Vol. 89,

No. 74].

Joshua Carter,

Associate Administrator, U.S. Small Business Administration, Office of

Investment and Innovation.

[FR Doc. 2025-16172 Filed 8-22-25; 8:45 am]

BILLING CODE 8026-09-P