Policies of General Application

SMALL BUSINESS ADMINISTRATION

13 CFR Part 116

Policies of General Application

AGENCY: Small Business Administration.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would raise from $500,000 to $1.5 million

the ceiling for SBA loan assistance that SBA officials with properly

delegated authority may determine on a case-by-case basis is not

subject to the full review and decision-making process to determine

adverse effects or incompatible development on wetlands or in a

floodplain required by Executive Orders 11988 (42 FR 26951) and 11990

(42 FR 26961).

DATES: Comments must be submitted on or before September 18, 1995.

ADDRESSES: Written comments may be sent to Associate Administrator for

Disaster Assistance, Small Business Administration, 409 3rd Street

S.W., Suite 6050, Washington, D.C. 20416.

FOR FURTHER INFORMATION CONTACT: Bernard Kulik, Associate Administrator

for Disaster Assistance. Telephone (202) 205-6734.

SUPPLEMENTARY INFORMATION: Part 116 of chapter 1, 13 CFR contains

policies of general application for specified SBA programs. Subpart D

thereof prescribes the policies and procedures for implementing

Executive Orders 11988 (42 FR 26951) and 11990 (42 FR 26961), which

relate to floodplain management and the protection of wetlands. Section

116.32(a)(6) provides that full implementation of the Executive Orders

may be waived on a case-by-case basis in instances of actions that

typically do not create adverse effects or incompatible development on

wetlands and floodplains. All SBA loan assistance of $500,000 or less

is included among these types of actions. Applicants for these loans

are relieved of the need to supply SBA with the necessary information

and studies for the implementation of the prescribed decision-making

process, reducing the cost and the time required to process such loans.

This $500,000 loan limit reflects the SBA disaster loan ceiling for any

one disaster as it existed prior to April 1, 1993, and the ceiling on

SBA business loan assistance as it existed prior to 1988.

This proposed rule would increase the ceiling for SBA loan

assistance that may be exempt from review from $500,000 to $1.5

million. This higher amount simply reflects the SBA disaster loan

ceiling for any one disaster commencing on or after April 1, 1993

established by P.L. 103-75 (107 Stat. 740), and would also cover the

ceiling on SBA business loan assistance and development company

assistance.

Compliance With Executive Orders 12612, 12866, and 12778, and the

Regulatory Flexibility and Paperwork Reduction Acts

SBA certifies that this rule does not have federalism implications

warranting the preparation of a Federalism Assessment in accordance

with Executive Order 12612.

For purposes of Executive Order 12866, SBA has determined that the

proposed rule would not be a major rule. SBA certifies that the

economic impact on the national economy would not exceed $100 million

and that the proposed rule would not adversely affect in a material way

the economy or the environment.

SBA certifies that this proposed rule would not have a significant

economic impact on a substantial number of small entities for purposes

of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.

There are no additional reporting or recordkeeping or other

compliance requirements inherent in this proposed rule which would be

subject to the Paperwork Reduction Act, 44 U.S.C. chapter 35. There are

no Federal rules which duplicate, overlap or conflict with this

proposed rule. There are no alternative means to accomplish the

objectives of this proposed rule.

SBA certifies that this proposed rule is drafted, to the extent

practicable, in accordance with the standards set forth in E.O. 12778.

List of Subjects in 13 CFR Part 116

Flood Insurance, Flood plains, Lead poisoning, Small businesses,

Veterans, Coastal barrier system.

For the reasons set forth above, SBA proposes to amend Part 116 of

Title 13 of the Code of Federal Regulations as follows:

Subpart D--Floodplain Management and Wetlands Protection

1. The authority citation for subpart D continues to read as

follows:

Authority: Small Business Act, Pub. L. 85-536 (15 U.S.C. 631);

Small Business Investment Act of 1958, Pub. L. 85-699 (15 U.S.C.

661); EO 11988, 42 FR 26951 and EO 11990, 42 FR 26961.

Sec. 116.32 [Amended]

2. Section 116.32 (a)(6) is amended by removing ``$500,000 or

less'' and inserting in place thereof ``$1,500,000 or less''.

Philip Lader,

Administrator.

[FR Doc. 95-20432 Filed 8-16-95; 8:45 am]

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