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/register/2023/10/05/2023-22185·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
--- schema: federal-register doc_type: fedreg source_file: FR-2023-10-05.xml --- 88 192 Thursday, October 5, 2023 Contents Agency Health Agency for Healthcare Research and Quality NOTICES Supplemental Evidence and Data Request: Evidence Map on Home and Community Based Services, 69186-69188 2023-22131 Agriculture Agriculture Department See Forest Service See Rural Housing Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Hawaii Agricultural Disaster Survey, 69115 2023-22178 Alcohol Tobacco Tax Alcohol and Tobacco Tax and Trade Bureau PROPOSED RULES Establishment of Viticultural Area:
Wanapum Village, Proposed Name Change to Beverly, WA, 69113-69114 2023-22213 Antitrust Division Antitrust Division NOTICES Changes under the National Cooperative Research and Production Act: Bytecode Alliance Foundation, 69231 2023-22224 Homeland Security Technology Consortium, 69231 2023-22232 Medical CBRN Defense Consortium, 69231-69232 2023-22227 National Spectrum Consortium, 69232-69234 2023-22231 Point of Care Marketing Association, 69231 2023-22234 Rust Foundation, 69234 2023-22228 Silicon Integration Initiative, Inc., 69234 2023-22233 The Institute of Electrical and Electronics Engineers, Inc., 69232 2023-22223 Centers Disease Centers for Disease Control and Prevention NOTICES Reorganization of the National Center for Chronic Disease Prevention and Health Promotion, 69188-69190 2023-22160 Children Children and Families Administration NOTICES Agency Information Collection Activities;
Proposals, Submissions, and Approvals: Office of Human Services Emergency Preparedness and Response Disaster Human Services Case Management Intake Assessment, Resource Referral, and Case Management Plan, 69191-69192 2023-22294 Report Forms for the Unaccompanied Refugee Minors Program, 69190-69191 2023-22156 Coast Guard Coast Guard RULES Coast Guard Sector Juneau; Sector Name Conforming Amendment, 69034-69036 2023-21877 DUKW Amphibious Passenger Vessels, 69043 C1-2023-19421 Safety Zone:
Potomac River, Washington, DC, 69036-69038 2023-22166 Commerce Commerce Department See Foreign-Trade Zones Board See International Trade Administration See National Institute of Standards and Technology See National Oceanic and Atmospheric Administration Consumer Product Consumer Product Safety Commission NOTICES Draft Scientific Integrity Policy, 69172-69173 2023-22110 Copyright Royalty Board Copyright Royalty Board RULES Determination of Adjustment to Administrative Assessment to Fund Mechanical Licensing Collective, 69038-69039 2023-22179 Defense Department Defense Department RULES Federal Acquisition Regulation: 8(a) Program, 69523-69525 2023-21322 Federal Acquisition Circular 2023-06;
Introduction, 69502-69503 2023-21319 Federal Acquisition Circular 2023-06; Small Entity Compliance Guide, 69526-69527 2023-21324 Implementation of Federal Acquisition Supply Chain Security Act Orders, 69503-69517 2023-21320 Technical Amendments, 69525-69526 2023-21323 Whistleblower Protection for Contractor Employees, 69517-69523 2023-21321 Energy Department Energy Department See Federal Energy Regulatory Commission Environmental Protection Environmental Protection Agency RULES Pesticide Tolerance;
Exemptions, Petitions, Revocations, etc.: Ledprona Double-Stranded RNA, 69039-69043 2023-22199 NOTICES Public Water System Supervision Program Revision: Texas, 69178-69179 2023-20668 Federal Aviation Federal Aviation Administration RULES Airspace Designations and Reporting Points: Philadelphia, PA, 69025-69026 2023-22162 Airworthiness Directives: Airbus Canada Limited Partnership (Type Certificate Previously Held by C Series Aircraft Limited Partnership (CSALP); Bombardier, Inc.
) Airplanes, 69018-69020 2023-22086 Airbus SAS Airplanes, 69008-69011, 69013-69018, 69023-69025 2023-22078 2023-22080 2023-22085 2023-22144 ATR-GIE Avions de Transport Regional Airplanes, 69011-69013 2023-22083 MHI RJ Aviation ULC (Type Certificate Previously Held by Bombardier, Inc.) Airplanes, 69020-69023 2023-22082 PROPOSED RULES Airworthiness Directives: Airbus SAS Airplanes, 69110-69112 2023-22070 ATR-GIE Avions de Transport Regional Airplanes, 69102-69105 2023-22071 International Aero Engines, LLC Engines, 69099-69102 2023-22174 Saab AB, Support and Services (Formerly Known as Saab AB, Saab Aeronautics) Airplanes, 69105-69107 2023-22069 The Boeing Company Airplanes, 69107-69110 2023-22066 Federal Communications Federal Communications Commission NOTICES Agency Information Collection Activities;
Proposals, Submissions, and Approvals, 69179-69180 2023-22165 2023-22217 Privacy Act; Systems of Records, 69180-69182 2023-22161 Federal Energy Federal Energy Regulatory Commission RULES Accounting and Reporting Treatment of Certain Renewable Energy Assets, 69294-69388 2023-14994 NOTICES Combined Filings, 69173-69177 2023-22203 2023-22208 2023-22212 Environmental Assessments; Availability, etc.: EONY Generation Ltd., 69178 2023-22204 Initial Market-Based Rate Filings Including Requests for Blanket Section 204 Authorizations:
Wolfskin Solar, LLC, 69177-69178 2023-22207 Federal Motor Federal Motor Carrier Safety Administration NOTICES Exemption Application: Qualification of Drivers; Epilepsy and Seizure Disorders, 69285-69287 2023-22122 Qualification of Drivers; Hearing, 69287-69288 2023-22148 Federal Reserve Federal Reserve System NOTICES Change in Bank Control: Acquisitions of Shares of a Bank or Bank Holding Company, 69182-69183 2023-22216 Fish Fish and Wildlife Service RULES Endangered and Threatened Species:
Revision of a Nonessential Experimental Population of Black-Footed Ferrets (Mustela nigripes) in the Southwest, 69045-69073 2023-21978 Status for Lassics Lupine and Designation of Critical Habitat, 69074-69098 2023-21477 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Declaration for Importation or Exportation of Fish or Wildlife, 69219-69224 2023-22181 Food and Drug Food and Drug Administration NOTICES Emergency Use Authorization: In Vitro Diagnostic Device for Detection and/or Diagnosis of COVID-19, 69192-69205 2023-22188 Guidance:
Stimulant Use Disorders: Developing Drugs for Treatment, 69205-69207 2023-22189 Meetings: Radiological Devices Panel of the Medical Devices Advisory Committee, 69207 2023-22106 Foreign Trade Foreign-Trade Zones Board NOTICES Application for Expansion of Subzone: Orgill, Inc., Foreign-Trade Zone 144, Subzone 144C, Tifton, GA, 69116 2023-22129 Authorization of Production Activity: Nexsus Cocoa Services LLC, Foreign-Trade Zone142, Southern New Jersey, 69116 2023-22130 Forest Forest Service NOTICES Proposed New Recreation Fee Sites, 69115-69116 2023-22173 General Services General Services Administration RULES Federal Acquisition Regulation: 8(a) Program, 69523-69525 2023-21322 Federal Acquisition Circular 2023-06;
Introduction, 69502-69503 2023-21319 Federal Acquisition Circular 2023-06; Small Entity Compliance Guide, 69526-69527 2023-21324 Implementation of Federal Acquisition Supply Chain Security Act Orders, 69503-69517 2023-21320 Technical Amendments, 69525-69526 2023-21323 Whistleblower Protection for Contractor Employees, 69517-69523 2023-21321 Government Ethics Government Ethics Office NOTICES Privacy Act; Systems of Records, 69183-69186 2023-22167 2023-22168 Health and Human Health and Human Services Department See Agency for Healthcare Research and Quality See Centers for Disease Control and Prevention See Children and Families Administration See Food and Drug Administration See National Institutes of Health See Substance Abuse and Mental Health Services Administration NOTICES Agency Information Collection Activities;
Proposals, Submissions, and Approvals, 69207-69208 2023-22158 Homeland Homeland Security Department See Coast Guard See U.S. Customs and Border Protection NOTICES Determination Pursuant to the Illegal Immigration Reform and Immigrant Responsibility Act, 69214-69215 2023-22176 Housing Housing and Urban Development Department NOTICES Privacy Act; Systems of Records, 69215-69219 2023-22175 Section 3 Benchmarks for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses, 69219 2023-22183 Indian Affairs Indian Affairs Bureau NOTICES Agency Information Collection Activities;
Proposals, Submissions, and Approvals: Acquisition of Trust Land, 69224-69225 2023-22225 Interior Interior Department See Fish and Wildlife Service See Indian Affairs Bureau See Land Management Bureau Internal Revenue Internal Revenue Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 69288-69289 2023-22191 International Trade Adm International Trade Administration NOTICES Antidumping or Countervailing Duty Investigations, Orders, or Reviews:
Certain Cold-Rolled Steel Flat Products from the Republic of Korea, 69116-69118, 69136-69138 2023-22198 2023-22200 Certain Corrosion Inhibitors from the People's Republic of China, 69122-69124 2023-22201 Certain Folding Gift Boxes from the People's Republic of China, 69133 2023-22128 Certain Lined Paper Products from India, 69125-69127 2023-22125 Certain Magnesia Carbon Bricks from the People's Republic of China, 69122 2023-22126 Certain Oil Country Tubular Goods from the Republic of Korea, 69118-69121 2023-22132 Certain Tin Mill Products from Japan, 69133-69134 2023-22127 Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes from Mexico, 69127-69129 2023-22202 Mattresses from Indonesia, 69132 2023-22133 Paper File Folders from India, 69134-69136 2023-22197 Stainless Steel Bar from India, 69121 2023-22134 Sales at Less Than Fair Value;
Determinations, Investigations, etc.: Paper File Folders from India, 69138-69141 2023-22194 Paper File Folders from the People's Republic of China, 69141-69142 2023-22195 Paper File Folders from the Socialist Republic of Vietnam, 69130-69132 2023-22196 International Trade Com International Trade Commission NOTICES Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Brass rod from Brazil, India, Israel, Mexico, South Africa, and South Korea, 69229-69230 2023-22150 Justice Department Justice Department See Antitrust Division NOTICES Agency Information Collection Activities;
Proposals, Submissions, and Approvals: Crime Victims' Rights Act Complaint Form, 69235 2023-22101 Proposed Consent Decree: Clean Water Act, 69235-69236 2023-22152 Land Land Management Bureau NOTICES Temporary Closure and Temporary Restrictions on Public Lands: La Paz County, AZ—AZ Race Corp., the Parker 400, 69227-69229 2023-22210 La Paz County, AZ—Legacy Racing, 69225-69227 2023-22211 Library Library of Congress See Copyright Royalty Board Management Management and Budget Office PROPOSED RULES Guidance for Grants and Agreements, 69390-69500 2023-21078 NASA National Aeronautics and Space Administration RULES Federal Acquisition Regulation: 8(a) Program, 69523-69525 2023-21322 Federal Acquisition Circular 2023-06;
Introduction, 69502-69503 2023-21319 Federal Acquisition Circular 2023-06; Small Entity Compliance Guide, 69526-69527 2023-21324 Implementation of Federal Acquisition Supply Chain Security Act Orders, 69503-69517 2023-21320 Technical Amendments, 69525-69526 2023-21323 Whistleblower Protection for Contractor Employees, 69517-69523 2023-21321 NOTICES Charter Amendments, Establishments, Renewals and Terminations: Federal Advisory Committees, 69236 2023-22221 National Endowment for the Arts National Endowment for the Arts NOTICES Meetings:
National Council on the Arts, 69236 2023-22111 National Foundation National Foundation on the Arts and the Humanities See National Endowment for the Arts National Institute National Institute of Standards and Technology NOTICES Meetings: Information Security and Privacy Advisory Board, 69143 2023-22147 National Technical Information Service Advisory Board, 69142-69143 2023-22146 National Institute National Institutes of Health NOTICES Meetings: Center for Scientific Review, 69210-69212 2023-22116 2023-22117 Eunice Kennedy Shriver National Institute of Child Health and Human Development, 69210 2023-22098 National Center for Advancing Translational Sciences, 69208 2023-22100 National Eye Institute, 69212 2023-22114 National Heart, Lung, and Blood Institute, 69213 2023-22099 National Institute of Biomedical Imaging and Bioengineering, 69211 2023-22113 National Institute of Environmental Health Sciences, 69209-69210 2023-22118 National Institute on Drug Abuse, 69212 2023-22097 Office of the Director, 69208-69209 2023-22119 National Oceanic National Oceanic and Atmospheric Administration RULES Inseason Action for 2023-2024 Commercial Pacific Bluefin Tuna Biennial Catch Limit in the Eastern Pacific Ocean, 69098 2023-22219 NOTICES Meetings:
Mid-Atlantic Fishery Management Council, 69170, 69172 2023-22121 2023-22124 New England Fishery Management Council, 69158-69159 2023-22123 U.S. Integrated Ocean Observing System Advisory Committee, 69171-69172 2023-22151 Permits; Applications, Issuances, etc.: Magnuson-Stevens Fishery Conservation and Management Act, General Provisions for Domestic Fisheries, 69143-69144 2023-22095 Taking or Importing of Marine Mammals: City of Cordova Harbor Rebuild Project, Cordova, AK, 69145-69158 2023-22096 Marine Site Characterization Surveys in the Area of Commercial Lease of Submerged Lands for Renewable Energy Development on the Outer Continental Shelf Lease Areas, 69159-69170 2023-22120 National Transportation National Transportation Safety Board RULES Official Seal Description, 69043-69045 2023-22193 Nuclear Regulatory Nuclear Regulatory Commission NOTICES Licenses;
Exemptions, Applications, Amendments etc.: In the Matter of Vistra Operations Company LLC; Energy Harbor Nuclear Corp.; Comanche Peak Nuclear Power Plant, Unit Nos. 1 and 2; Beaver Valley Power Station, Unit Nos. 1 and 2; Davis-Besse Nuclear Power Station, Unit No. 1; Perry Nuclear Power Plant, Unit No. 1; and the Associated Independent Spent Fuel Storage Installations, 69237-69238 2023-22135 Postal Regulatory Postal Regulatory Commission NOTICES New Postal Products, 69239 2023-22112 Postal Service Postal Service NOTICES Product Change:
Priority Mail and USPS Ground Advantage Negotiated Service Agreement, 69239-69240 2023-22136 2023-22137 2023-22138 2023-22139 2023-22140 Priority Mail Express, Priority Mail, and USPS Ground Advantage Negotiated Service Agreement, 69239 2023-22141 Priority Mail Negotiated Service Agreement, 69239 2023-22142 Rural Housing Service Rural Housing Service PROPOSED RULES Updating Manufactured Housing Provisions, 69099 2023-22184 Securities Securities and Exchange Commission NOTICES Agency Information Collection Activities;
Proposals, Submissions, and Approvals, 69241-69242 2023-22186 2023-22187 2023-22190 Fiscal Year 2020 Service Contract Inventory, 69240-69241 2023-22192 Small Business Small Business Administration RULES Community Advantage Pilot Program, 69003-69008 2023-22185 NOTICES Disaster Declaration: La Jolla Band of Luiseno Indians; Public Assistance Only, 69243 2023-22205 Pennsylvania, 69243 2023-22214 Tennessee; Public Assistance Only, 69244 2023-22209 Utah, 69242-69243 2023-22215 State Department State Department NOTICES Meetings:
Binational Bridges and Border Crossings Group in Tijuana, Baja California, Mexico, 69285 2023-22073 Sanctions Action, 69244-69285 2023-22107 2023-22108 2023-22109 Substance Substance Abuse and Mental Health Services Administration NOTICES Meetings: Interdepartmental Substance Use Disorders Coordinating Committee, 69213-69214 2023-22157 Tennessee Tennessee Valley Authority NOTICES Meetings: Regional Energy Resource Council, 69285 2023-22177 Transportation Department Transportation Department See Federal Aviation Administration See Federal Motor Carrier Safety Administration Treasury Treasury Department See Alcohol and Tobacco Tax and Trade Bureau See Internal Revenue Service Customs U.S.
Customs and Border Protection RULES Regulatory Implementation of the Centers of Excellence and Expertise, 69026-69034 2023-22170 African United States African Development Foundation NOTICES Meetings: Board of Directors, 69115 2023-22154 Veteran Affairs Veterans Affairs Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Application for Assumption Approval and/or Release from Personal Liability to the Government on a Home Loan, 69289 2023-22172 Generic Clearance for the Collection of Qualitative Feedback on Agency Service Delivery, 69290-69291 2023-22143 Separate Parts In This Issue Part II Energy Department, Federal Energy Regulatory Commission, 69294-69388 2023-14994 Part III Management and Budget Office, 69390-69500 2023-21078 Part IV Defense Department, 69502-69527 2023-21322 2023-21319 2023-21324 2023-21320 2023-21323 2023-21321 General Services Administration, 69502-69527 2023-21322 2023-21319 2023-21324 2023-21320 2023-21323 2023-21321 National Aeronautics and Space Administration, 69502-69527 2023-21322 2023-21319 2023-21324 2023-21320 2023-21323 2023-21321 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice of recently enacted public laws.
To subscribe to the Federal Register Table of Contents electronic mailing list, go to https://public.govdelivery.com/accounts/USGPOOFR/subscriber/new, enter your e-mail address, then follow the instructions to join, leave, or manage your subscription. 88 192 Thursday, October 5, 2023 Rules and Regulations SMALL BUSINESS ADMINISTRATION [Docket No. SBA-2023-0011] 13 CFR Part 120 Community Advantage Pilot Program AGENCY: U.S. Small Business Administration. ACTION: Notification. SUMMARY:
The Small Business Administration (“SBA” or “Agency”) is sunsetting the Community Advantage Pilot Program effective October 31, 2023. DATES: The changes identified in this document take effect October 31, 2023. ADDRESSES: You may submit comments, identified by SBA docket number SBA-2023-0011, by any of the following methods: • *Federal eRulemaking Portal: https://www.regulations.gov/.* Follow the instructions for submitting comments. • *Mail:* Dianna Seaborn, Office of Financial Assistance, U.S.
Small Business Administration, 409 Third Street SW, Washington, DC 20416. • *Hand Delivery/Courier:* Dianna Seaborn, Office of Financial Assistance, U.S. Small Business Administration, 409 Third Street SW, Washington, DC 20416. SBA will post all comments on *https://www.regulations.gov.* If you wish to submit confidential business information (“CBI”) as defined in the User Notice at *https://www.regulations.gov,* please submit the information to Dianna Seaborn, Office of Financial Assistance, U.S.
Small Business Administration, 409 Third Street SW, Washington, DC 20416; or send an email to *communityadvantage@sba.gov.* Highlight the information that you consider to be CBI and explain why you believe SBA should hold this information as confidential. SBA will review the information and make the final determination as to whether it will publish the information. FOR FURTHER INFORMATION CONTACT: Dianna Seaborn, Office of Financial Assistance, Small Business Administration, at
(202)205-3645 or *dianna.seaborn@sba.gov.* The phone number above may also be reached by individuals who are deaf or hard of hearing, or who have speech disabilities, through the Federal Communications Commission's TTY-Based Telecommunications Relay Service teletype service at 711. SUPPLEMENTARY INFORMATION: 1. Background As part of its efforts to increase the number of SBA-guaranteed 7(a) loans made to small businesses in underserved markets, on February 18, 2011, SBA issued a notice and request for comments introducing the Community Advantage
(CA)Pilot Program (76 FR 9626). That notice provided an overview of the CA Pilot Program requirements and, pursuant to the authority provided to SBA under 13 CFR 120.3 to suspend, modify, or waive certain regulations in establishing and testing pilot loan initiatives, SBA modified or waived as appropriate certain regulations which otherwise apply to 7(a) loans for the CA Pilot Program. Subsequent notices made changes to the CA Pilot Program to improve the program experience for participants, improve their ability to deliver capital to underserved markets, and appropriately manage risk to the Agency. These notices were issued on the following dates: February 18, 2011 (76 FR 9626), September 12, 2011 (76 FR 56262), February 8, 2012 (77 FR 6619), November 9, 2012 (77 FR 67433), December 28, 2015 (80 FR 80872), September 12, 2018 (83 FR 46237), and March 2, 2020 (85 FR 12369). In the notice published September 12, 2018 (the “September 2018 Notice”), SBA extended the pilot program to September 30, 2022, and implemented a temporary moratorium on the acceptance of new Community Advantage Pilot Lender Participation Applications (CA Pilot Lender Applications) effective October 1, 2018, among other changes to the CA Pilot Program. On April 29, 2022, notice 87 FR 25398 announced SBA's intention to extend the CA Pilot Program through September 30, 2024, and to remove the temporary moratorium on the acceptance of new CA Lender Applications. After evaluating the impact of the CA Pilot Program, on April 12, 2023, SBA published the Final Rule on Small Business Lending Company
(SBLC)Moratorium Rescission and Removal of the Requirement for a Loan Authorization (SBLC Rule), 88 FR 21890. In the SBLC Rule, SBA lifted the moratorium on licensing new SBLCs and created a new type of SBLC called a Community Advantage Small Business Lending Company (CA SBLC). The SBLC Rule also provided for the grandfathering of current CA Pilot Lenders to be licensed as CA SBLCs with permanent 7(a) lending authority. This means when SBA authorizes a CA SBLC license for a CA Pilot Lender, the CA Pilot Lender will no longer be making 7(a) loans in a temporary pilot program but will instead be making regular 7(a) loans under a CA SBLC license in the 7(a) program. On May 1, 2023, SBA published Information Notice 5000-846918, Community Advantage Small Business Lending Company Conversion, to announce that effective May 12, 2023, SBA's Office of Credit Risk Management
(OCRM)initiated a program to enable current CA Pilot Lenders to become CA SBLCs. This notice also communicated to Lenders that SBA intended to sunset the CA Pilot Program on September 30, 2023. SBA issued a notice and request for comments on May 22, 2023, 88 FR 32623, SBLC Application Process, to announce that SBA's Office of Capital Access
(OCA)opened the application period for new SBLC licenses from June 1, 2023, to July 31, 2023, and shared the process by which interested entities may apply. SBA also announced in this notice that the CA Pilot Program will sunset on September 30, 2023. 2. CA Pilot Program Will Sunset October 31, 2023 As described above, SBA has previously announced on two separate occasions that the CA Pilot Program will sunset on September 30, 2023. The purpose of this notice is to provide a third and final public notice of the CA Pilot Program's termination. Although the previous notices announced the termination of the CA Pilot Program on September 30, 2023, the termination date has been extended and will now be October 31, 2023. 3. Program Evaluation On April 1, 2022, SBA published a Notice in the **Federal Register** to, among other things, extend the term of the CA Pilot Program. In this notice, SBA stated that it will evaluate the CA Pilot Program to determine whether it should be made permanent, with evaluation criteria including, but not limited to, whether the pilot is achieving its objective(s), impact on job creation and retention, impact on business creation and/or business expansion, whether the costs (including losses) of the pilot are within an acceptable range, and portfolio performance as it relates to other 7(a) programs. SBA's program evaluation, found that the record on both job creation and retention and business creation and expansion, as discussed in this analysis, is unclear. While administrative and subsidy costs to SBA of the pilot program are unknown, indicators, such as hours spent on counseling and the riskiness of CA loans, are consistent with higher costs in both categories. Portfolio measures such as early loan problem rates, default rates, and Small Business Risk Portfolio
(SBPS)Scores compare unfavorably with other 7(a) programs. CA Pilot Program evaluation results: A. General Community Advantage characteristics. B. Increased access to credit for small businesses in underserved markets. C. How have CA Pilot Lenders provided management and technical assistance to CA Pilot Program borrowers. D. CA Pilot Program and job creation/retention and business creation/retention. E. Are CA Pilot Program costs in an acceptable range? F. How does CA Pilot Program portfolio performance relate to other 7(a) programs? A. General Community Advantage Characteristics As Table 1 indicates, the number of CA Pilot Lenders that made loans in a fiscal year has ranged from 22 in its first full year to a high of 75 in 2018 and 2019. Unique CA Pilot Lenders in the period of the program's existence number 121. CA Pilot Lenders have made a total of 8,248 loans to businesses totaling over $1.1 billion over the life of the program. Average loan size on an annual basis has ranged from $124,665 in 2014 to $176,937 in 2023, for a mean annual average of $140,728. In percentage terms, the annual averages have ranged from 89 percent of the mean annual average in 2014 to 26 percent above that mean for the first five months of 2023. Table 1—CA Loans, Lenders, and Amounts Year Number of CA loans Number of CA pilot lenders that made a loan Average amount of CA loans Volume of CA loans 2011 15 5 142,853 2,142,800 2012 188 22 134,260 25,240,900 2013 273 34 139,926 38,199,800 2014 453 46 124,665 56,473,500 2015 828 64 125,019 103,516,100 2016 988 69 124,671 123,175,000 2017 1,043 74 131,923 137,595,500 2018 1,118 75 140,903 157,529,200 2019 947 75 141,302 133,813,400 2020 538 67 141,663 76,214,700 2021 565 64 146,609 82,834,100 2022 717 63 158,995 113,999,400 2023 575 53 176,937 101,739,000 Total 8,248 1,152,473,400 B. Increased Access The purpose of the CA Pilot Program is to promote lending by mission-oriented lenders, primarily non-profit financial intermediaries that operate in underserved markets. SBA assessed the performance of this objective by examining the number of new Lenders in the 7(a) market enabled by this pilot program and the amount of CA loans made to borrowers in underserved markets, which includes veteran-owned and women-owned businesses, loans to new businesses, and businesses in rural areas. Over the period of CA Pilot Program, 121 unique CA Pilot Lenders have made CA loans. Of the CA loans, 30.98 percent were made to small businesses owned by women, 7.84 percent to veteran-owned small businesses, and 36.58 percent to small businesses owned by racial and ethnic minorities, with 11.00 percent of the CA loans going to small businesses with owners of undetermined ethnicity. Further, 12.25 percent of loans went to small businesses located in rural areas, with rural location defined in accordance with 13 CFR 120.10 as a political subdivision or unincorporated area in a non-metropolitan county (as defined by the Department of Agriculture), or, if in a metropolitan county, any such subdivision or area with a resident population under 20,000 which is designated by SBA as rural. For 7(a) loans other than CA loans, the numbers were 17.56 percent for small businesses owned by women, 18.10 percent for veteran-owned small businesses, 25.48 percent to small businesses owned by racial and ethnic minorities,15.47 percent going to small businesses with owners of undetermined ethnicity, and 18.10 percent for rural small businesses. For underserved borrowers, the picture of access has been mixed. Table 2 shows numbers of loans to women-owned small businesses, veteran-owned small businesses, and minority owned small businesses. The numbers may double-count some categories, such as businesses that qualify for two or all three categories. A measure of increased access is the geographic distribution of the number of CA loans in Table 2. Two states—California and Texas—with a combined total of just over 20 percent of the US population, account for over 40 percent of the number of CA loans made. This imbalance could indicate an uneven distribution of the lending activity, or it could indicate that there are more borrowers in the underserved category living in these two states. Table 2—Percentage of CA Loans by State State Percent of CA loans California 30.80 Texas 10.90 Ohio 6.46 New York 5.60 New Jersey 4.27 Wisconsin 4.11 North Carolina 4.00 Arizona 3.95 Florida 3.04 Georgia 2.16 Colorado 2.15 Michigan 1.98 Illinois 1.65 Indiana 1.64 Nevada 1.19 All others 16.11 Table 3—CA Loans to Borrowers in Underserved Markets Year Number of CA loans Borrower was women-owned small businesses Borrower was veteran-owned small business Borrower was minority-owned small businesses 2011 15 4 0 2 2012 188 43 9 32 2013 273 77 15 73 2014 453 116 21 151 2015 828 249 61 293 2016 988 317 69 324 2017 1,043 308 92 350 2018 1,118 331 110 418 2019 947 307 88 355 2020 538 153 47 190 2021 565 180 35 233 2022 717 260 58 321 2023 575 210 42 275 As shown in Table 3, the number of veteran-owned small business loans has not risen above 10 percent of the number of CA loans in any year of the pilot program. Women-owned businesses have received between 26 percent and 36 percent of CA loans and minority-owned businesses have received a quarter of the loans since FY 2013 and over 40 percent in the post-pandemic years. C. Management and Technical Assistance Data gathered from the addendum to SBA Form 1919, “Borrower Information Form”, submitted by lenders to SBA, indicate that borrowers have requested management and technical assistance over the period of the pilot program on 2,968 unique CA loans, or 35.98 percent of the loans. The addendum did not separate SBA-provided training from that provided by CA Pilot Lenders. The most common assistance type was Financing/Capital followed by Business Plan assistance. Some loans involved multiple types of assistance and these two categories were both involved in over half of the loans. Table 4—CA Assistance by Type Assistance type Loan count Percent of loans receiving assistance type Financing/Capital 1,860 62.67 Business Plan 1,561 52.59 Start-up Assistance 1,122 37.80 Cash Flow Management 960 32.35 Business Accounting/Budget 828 27.90 Marketing/Sales 696 23.45 Managing Business 694 23.38 Legal Issues 308 10.38 Tax Planning 277 9.33 Customer Relations 265 8.93 Human Resources/Employees 242 8.15 Other 230 7.75 Technology Computers 176 5.93 Buy/Sell Business 165 5.56 eCommerce 152 5.12 Franchising 119 4.01 Government Contracting 113 3.81 International Trade 27 0.91 Modes of delivery included group training, one-on-one counseling, telephone counseling, and web-based tutorials. One-on-one counseling was the most frequently employed mode, with over 80 percent of loans benefiting from this type of counseling and with over 36 percent of loans involving 5 or more hours. A borrower may have used more than one mode of delivery. Telephone Counseling was the second most common mode of delivery. Table 5—Modes of Delivery for Assistance to CA Borrowers Assistance type Assistance hours Loan count Percent of loans receiving assistance mode and hours Group Training 5+ Hours 429 15.08 Group Training 3-5 Hours 119 4.18 Group Training Less Than 3 Hours 322 11.32 Total Group Training 870 30.59 One-on-one Counseling 5+ Hours 1,037 36.46 One-on-one Counseling 3-5 Hours 604 21.24 One-on-one Counseling Less Than 3 Hours 645 22.68 Total One-on-one Counseling 2.286 80.38 Telephone Counseling 5+ Hours 649 22.82 Telephone Counseling 3-5 Hours 529 18.60 Telephone Counseling Less Than 3 Hours 607 21.34 Total Telephone Counseling 1,785 62.76 Web-based Tutorials 5+ Hours 340 11.95 Web-based Tutorials 3-5 Hours 208 7.31 Web-based Tutorials Less Than 3 Hours 358 12.59 Total Web-based Tutorials 906 31.86 ER05OC23.065 D. CA Pilot Program and Job Creation/Retention and Business Creation/Retention Jobs created plus jobs retained over the life of CA Pilot Program total 59,487. This number represents 0.81 percent of the overall 7(a) portfolio of jobs. CA lending represents 0.39 percent of total 7(a) dollars approved; therefore, CA Pilot Program appears to be performing better than average when considering the number of jobs created and retained relative to dollars in loans. However, comparison with other 7(a) loan delivery methods, which have different equity and other loan criteria and, hence, lower lending risk, as discussed below, is not insightful. In Table 6, jobs created represent 54.87 percent or most of the total jobs in the CA portfolio. For comparison, jobs created represent 33.84 percent of the SBA Express loan jobs, while jobs retained account for the remainder. Table 6—CA Pilot Program Jobs Created and Retained by Year Year Jobs created Jobs retained Total jobs 2011 61 122 183 2012 763 936 1,649 2013 1,015 1,085 2,100 2014 1,563 1,473 3,036 2015 3,588 3,106 6,694 2016 3,834 2,861 6,695 2017 4,298 3,632 7,930 2018 4,886 4,437 9,323 2019 3,707 2,736 6,443 2020 1,703 1,878 3,581 2021 2,068 1,334 3,402 2022 2,723 1,631 4,354 2023 2,431 1,666 4,097 Total 32,640 26,897 59,487 Over the term of CA Pilot Program's activities, 57.78 percent of CA loans have been to new businesses, defined as in operations for 2 years or less. The percentage of CA loans going to new businesses has generally increased over the life of the program, as shown in Table 7. Table 7—CA Loans to New Small Businesses Year Number of CA loans Number of CA loans to new businesses Percentage of CA loans to new businesses 2011 15 7 46.67 2012 188 89 47.34 2013 273 134 49.08 2014 453 239 52.76 2015 828 423 51.09 2016 988 487 49.29 2017 1,043 580 55.61 2018 1,118 658 58.86 2019 947 576 60.82 2020 538 304 56.51 2021 565 394 69.73 2022 717 501 69.87 2023 575 374 65.04 Total 8,248 4,766 57.78 E. CA Pilot Program Costs SBA does not disaggregate 7(a) administrative or subsidy costs. Therefore, the agency cannot determine if these costs are in an acceptable range. As the following section indicates, loans in the CA Pilot Program have characteristics that are consistent with higher administrative and subsidy costs. Specifically, the early problem loan rate for CA loans has been and remains significantly higher than for other 7(a) loans, including other small loans, and the SBPS Score for CA loans has remained in the high-risk range during the entire existence of the CA Pilot Program. F. CA Pilot Program Portfolio Performance A standard metric for loan portfolio performance is the early problem loan rate. This rate is the percentage of the gross amount of loans that have been in place for 36 months or less that have had either a deferred, delinquent (60 or more days past due), liquidated, purchased, or charged off status within 18 months of disbursement. SBA defines the threshold for higher risk loans as 4 percent or higher. For CA loans, the early problem loan rate has been above 4 percent since the first quarter of FY 2014 and has more than doubled to 8 percent in FY 2016. This increase is on pace with CA Pilot Program's expansion (see Table 1). Since FY 2016, the early problem loan rate has not dropped below 7 percent, and the average of annual early problem loan rates over the life of CA Pilot Program through the second quarter of FY 2023 is 8.28 percent. For comparison, the early problem loan rate for the entire 7(a) portfolio over the same period is 2.61 percent and for non-CA Pilot Program 7(a) loans of $250,000 or less, the rate is 3.10 percent. SBA compared CA Pilot Program loans with non-CA Pilot Program 7(a) loans of $250,000 or less because for the duration of the CA Pilot Program (until May 2023), the maximum loan amount for a CA Pilot Program loan was $250,000. Default rates for CA loans have also been higher. Quarterly default rates over a five-year period from March 2013 to March 2018 average 2.07 percent for CA loans, compared to 0.76 percent for the 7(a) portfolio. The averages for non-CA Pilot Program 7(a) loans of $250,000 or less and non-CA Pilot Programs 7(a) loans to underserved markets of $250,000 or less were 1.04 percent and 1.15 percent, respectively. Another metric for comparison is the Small Business Risk Portfolio Solution
(SBPS)Score, which assesses the likelihood of debt delinquency in the next 12 to 24 months. A higher measurement means lower risk of debt delinquency, with a score of below 180 defined as high risk. At the end of Q2 in FY 2023, the SBPS Score for CA loans was 170.94, well below the overall 7(a) score of 203.51 and below the score of 182.27 for non-CA Pilot Program 7(a) loans of $250,000 or less. The SBPS Score for CA loans has never broken the 180 threshold score over the period of CA Pilot Program. In contrast, the SBPS Score for the 7(a) portfolio has not fallen below 180 for over the period of CA Pilot Program. SBPS Scores have averaged 172.62 for CA loans over the time of the pilot program, 180.2 for 7(a) loans of $250,000 or less, and 191.09 for the 7(a) portfolio over the same period. 4. General Information Questions regarding the CA Pilot Program may be directed to the local SBA district office. The local SBA district office may be found at *http://www.sba.gov/about-offices-list/2.* Authority: 15 U.S.C. 636(a)(25) and 13 CFR 120.3. Isabella Guzman, Administrator. [FR Doc. 2023-22185 Filed 10-4-23; 8:45 am]
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