66960 Federal Register / Vol. 87, No. 214 / Monday, November 7, 2022 / Proposed Rules 
reserve. Budgeted expenses for these 
items during the 2021–22 crop year were $14,025, $12,000, and $187, respectively. The Committee deliberated the proposed budget categories and decreased their budget for office supplies and expenses to account for the 2022–23 crop year being a non-election year, therefore requiring less office supplies. Overall, the 2022–23 crop year budget of $26,700 is $488 more than the $26,212 budgeted for the 2021–22 crop year. 
The Committee recommended 
increasing the assessment rate due to a lower than normal crop size produced in the 2021–22 crop year and a projected lower crop size again for the 2022–23 crop year. At the current assessment rate, assessment income would equal $21,000 (75,000 tons multiplied $0.28), an amount along with the carry over funds from the previous year sufficient to cover the Committee’s anticipated 2022–23 expenditures of $26,700. 
Prior to arriving at this budget and the 
proposed assessment rate, the Committee considered information from various sources including the Committee’s Executive, Marketing, Inspection, and Research subcommittees. Alternate expenditure levels were discussed by these groups, based upon the relative value of various projects to the dried prune industry and the expected dried prune production. The assessment rate of $0.33 per ton of salable dried prunes was derived by considering anticipated expenses, the projected volume of assessable dried prunes, the current monetary balance expected to be carried into the upcoming crop year, and additional pertinent factors. 
A review of NASS information 
indicates that the average producer price for the 2021–22 crop year was $2,000 per ton, and the estimated quantity of assessable dried prunes harvested in the 2021–22 crop year was 74,000 tons, which would yield total 
producer revenue $148,000,000 ($2,000 per ton multiplied by 74,000 tons). Therefore, utilizing the assessment rate of $0.33 per ton, assessment revenue for the 2021–22 crop year, as a percentage of total producer revenue, would be approximately 1.65 percent ($0.33 multiplied by 74,000 tons divided by $148,000,000 multiplied by 100). 
This proposed action would increase 
the assessment obligation imposed on handlers. Assessments are applied uniformly on all handlers, and some of the costs may be passed on to producers. However, these costs would be offset by the benefits derived by the operation of the Order. The Committee’s meetings were 
widely publicized throughout the 
production area. The dried prune industry and all interested persons are invited to attend the meetings and participate in Committee deliberations on all issues. Like all Committee meetings, the June 28, 2022, meeting was a public meeting and all entities, both large and small, were able to express views on this issue. Finally, interested persons are invited to submit comments on this proposed rule, 
including the regulatory and information collection impacts of this action on small businesses. 
In accordance with the Paperwork 
Reduction Act of 1995, (44 U.S.C. Chapter 35), the Order’s information collection requirements have been previously approved by OMB and assigned OMB No. 0581–0178, Vegetable and Specialty Crops. No changes in those requirements would be necessary as a result of this proposed rule. Should any changes become necessary, they would be submitted to OMB for approval. 
This proposed rule would not impose 
any additional reporting or recordkeeping requirements on either small or large California dried prune handlers. As with all Federal marketing order programs, reports and forms are periodically reviewed to reduce information requirements and duplication by industry and public sector agencies. 
AMS is committed to complying with 
the E-Government Act, to promote the use of the internet and other information technologies to provide increased opportunities for citizen access to Government information and services, and for other purposes. 
AMS has not identified any relevant 
Federal rules that duplicate, overlap, or conflict with this proposed rule. 
A small business guide on complying 
with fruit, vegetable, and specialty crop marketing agreements and orders may be viewed at: https://www.ams.usda.gov/rules-regulations/ moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower at the previously mentioned address in the 
FOR FURTHER  
INFORMATION CONTACT section. 
A 30-day comment period is provided 
to allow interested persons to respond to this proposed rule. All written comments timely received will be considered before a final determination is made on this rule. 
List of Subjects in 7 CFR Part 993 
Marketing agreements, Plum, Prunes, 
Reporting and recordkeeping 
requirements. For the reasons set forth in the 
preamble, the Agricultural Marketing Service proposes to amend 7 CFR part 993 as follows: 
PART 993—DRIED PRUNES 
PRODUCED IN CALIFORNIA 
■1. The authority citation for 7 CFR 
part 993 continues to read as follows: 
Authority: 7 U.S.C. 601–674. 
■2. Section 993.347 is revised to read 
as follows: 
§ 993.347 Assessment rate. 
On and after August 1, 2022, an 
assessment rate of $0.33 per ton of salable dried prunes is established for California dried prunes. 
Erin Morris, 
Associate Administrator, Agricultural 
Marketing Service. 
[FR Doc. 2022–24172 Filed 11–4–22; 8:45 am] 
BILLING CODE P 
DEPARTMENT OF AGRICULTURE 
Agricultural Marketing Service 
7 CFR Part 1222 
[Doc. No. AMS–SC–22–0050] 
Harmonized Tariff Schedule Numbers 
for the Paper and Paper-Based Packaging Products 
AGENCY : Agricultural Marketing Service, 
Department of Agriculture (USDA). 
ACTION : Proposed rule. 
SUMMARY : This proposal invites 
comments on updates to the Harmonized Tariff Schedule (HTS) numbers for paper and paper-based packaging products in the Paper and Paper-Based Packaging Promotion, Research, and Information Order (Order). In addition, this action proposes new language that allows assessment collection to continue even if HTS numbers change in the future. The Paper and Packaging Board (Board) administers the Order with oversight by the U.S. Department of Agriculture (USDA). 
DATES : Comments must be received by 
December 7, 2022. 
ADDRESSES : Interested persons are 
invited to submit written comments concerning this proposed rule. All comments must be submitted through the Federal e-rulemaking portal at https://www.regulations.gov and should 
reference the document number and the date and page number of this issue of the Federal Register. All comments 
submitted in response to this proposed 
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1https://hts.usitc.gov/current Chapter 48. 
2No domestic market pricing information for 
paper and paper-based packaging was publicly 
Continued rule will be included in the rulemaking 
record and will be made available to the public. Please be advised that the identity of the individuals or entities submitting comments will be made public on the internet at https://www.regulations.gov. 
FOR FURTHER INFORMATION CONTACT : 
Marlene Betts, Marketing Specialist, or Alexandra Caryl, Branch Chief, Mid- Atlantic Region Branch, Market Development Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, Room 1406– S, Stop 0244, Washington, DC 20250– 0244; Telephone: (202) 720–5057; or Email: Marlene.Betts@usda.gov or 
Alexandra.Caryl@usda.gov. 
SUPPLEMENTARY INFORMATION : This 
proposal is issued under the Order (7 CFR part 1222). The Order is authorized under the Commodity Promotion, Research, and Information Act of 1996 (1996 Act) (7 U.S.C. 7411–7425). 
Executive Orders 12866 and 13563 
Executive Orders 12866 and 13563 
direct agencies to assess all costs and 
benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, reducing costs, harmonizing rules, and promoting flexibility. This action falls within a category of regulatory actions that the Office of Management and Budget (OMB) exempted from Executive Order 12866 review. 
Executive Order 13175 
This action has been reviewed in 
accordance with the requirements of 
Executive Order 13175, Consultation and Coordination with Indian Tribal Governments. Agricultural Marketing Service (AMS) has assessed the impact of this proposed rule on Indian tribes and determined that this rulemaking would not have tribal implications that require consultation under Executive Order 13175. AMS hosts a quarterly teleconference with tribal leaders where matters of mutual interest regarding the marketing of agricultural products are discussed. Information about the proposed changes to the regulations will be shared during an upcoming quarterly call, and tribal leaders will be informed about the proposed revisions to the regulation and the opportunity to submit comments. AMS will work with the USDA Office of Tribal Relations to ensure meaningful consultation is 
provided as needed with regards to this change to the Order. 
Executive Order 12988 
This proposal has been reviewed 
under Executive Order 12988, Civil 
Justice Reform. It is not intended to have retroactive effect. Section 524 of the 1996 Act (7 U.S.C. 7423) provides that it shall not affect or preempt any other Federal or State law authorizing promotion or research relating to an agricultural commodity. 
Under section 519 of the 1996 Act (7 
U.S.C. 7418), a person subject to an order may file a written petition with USDA stating that an order, any provision of an order, or any obligation imposed in connection with an order, is not established in accordance with the law, and request a modification of an order or an exemption from an order. Any petition filed challenging an order, any provision of an order, or any obligation imposed in connection with an order, shall be filed within two years after the effective date of an order, provision, or obligation subject to 
challenge in the petition. The petitioner will have the opportunity for a hearing on the petition. Thereafter, USDA will issue a ruling on the petition. The 1996 Act provides that the district court of the United States for any district in which the petitioner resides or conducts business shall have the jurisdiction to review a final ruling on the petition if the petitioner files a complaint for that purpose not later than 20 days after the date of the entry of USDA’s final ruling. 
Background 
The Paper and Paper-Based Packaging 
Promotion, Research, and Information 
Order (Order) took effect in January 2014 (79 FR 3696), and assessment collection began in March 2014 for paper and paper-based packaging. The program is funded by assessments on manufacturers and importers of 100,000 short tons or more of paper and paper- based packaging per year. The assessments are used for projects to promote paper and paper-based packaging. This proposed rule invites comments on updates to the Harmonized Tariff Schedule (HTS) numbers for paper and paper-based packaging products. This action also proposes the addition of verbiage that allows the collection of assessments to continue even if HTS numbers change in the future. Updates to the HTS numbers and the additional verbiage are necessary to ensure that importers are being assessed appropriately. 
This change would ensure that 
importers are being assessed on the same products as domestic manufacturers. The proposed changes were recommended by the Board at its meeting on June 21, 2022. The Board was unanimously in favor of this recommendation. AMS agrees to propose the updates to the HTS numbers. 
Update HTS Numbers 
Sections 1222.46(p) of the Order 
allows for the Board to recommend 
amendments to the Order as the Board considers appropriate. The Board reviewed the current HTS numbers after noting that several changes made by the U.S. International Trade Commission (USITC) are not reflected in the Order’s current HTS numbers. Therefore, this action proposes to update the Order’s HTS numbers, bringing them in-line with the most current HTS numbers as provided by the USITC.
1In addition, 
this action proposes additional verbiage that allows the collection of assessments to continue even if HTS numbers change in the future. 
Section 1222.52(e) would be updated 
to include language that would allow the Board to continue to collect assessments in the event the USITC makes future changes to any HTS number by merely replacing a previous number. In addition, the list of HTS numbers in the table for assessments on importers of paper and paper-based packaging have all been reviewed and updated in the Order to coincide with the most current HTS numbers as provided by USITC. 
Initial Regulatory Flexibility Act 
Analysis 
In accordance with the Regulatory 
Flexibility Act (RFA) (5 U.S.C. 601– 612), AMS has considered the economic impact of this action on small entities that would be affected by this rule. The purpose of the RFA is to fit regulatory action to scale of businesses subject to such action so that small businesses will not be disproportionately burdened. The Small Business Administration defines small agricultural service firms as those having annual receipts of no more than $30 million (13 CFR part 121). Manufacturers and importers would be considered agricultural service firms. 
According to the Board, there are 
approximately 50 manufacturers in the United States that produce the types of paper and paper-based packaging covered under the Order. Using an average price of $1,165 per short ton,
2 
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available; instead, average prices were estimated 
using export data from the U.S. Census Bureau. a manufacturer who produces less than 
about 25,760 short tons of paper and paper-based packaging per year would be considered a small entity. The Board estimates that no manufacturers produced less than 25,760 short tons in 2021; thus, no domestic manufacturers would be considered small businesses. 
Based on U.S. Customs and Border 
Protection (Customs) data, there were 
3,020 importers of paper and paper- based packaging in 2021. Of these, 34 importers, or 1 percent, had annual receipts of more than $30 million of paper and paper-based packaging. Thus, most importers would be considered small entities. 
The proposed rule would update the 
Order’s HTS numbers, bringing them in- line with the most current HTS numbers as provided by the USITC. In addition, this action proposes additional verbiage that allows the Board to continue to collect assessments even if HTS numbers change in the future. 
This rulemaking does not impose 
additional recordkeeping requirements on manufacturers and importers of paper and paper-based packaging. There are no Federal rules that duplicate, overlap, or conflict with this proposed rule. In accordance with OMB regulations (5 CFR part 1320) that implements the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35), the information collection and recordkeeping requirements that are imposed by the Order have been previously approved under OMB control number 0581–0093. This rulemaking does not result in a change to the information collection and recordkeeping requirements previously approved. 
Regarding outreach efforts, the Board 
discussed this action during Board meetings in 2022. The Board members unanimously approved the changes to the HTS numbers to bring them in accordance with the USITC numbers and ensure that assessments on domestic manufacturers are the same as assessments on imports. In addition, all of the Board’s meetings are open to the public and interested persons are invited to participate and express their views. 
AMS is committed to complying with 
the E-Government Act, to promote the use of the internet and other information technologies to provide increased opportunities or citizen access to Government information and services, and for other purposes. 
We have performed this initial RFA 
analysis regarding the impact of the proposed action on small entities and we invite comments concerning the potential effects of this action. 
USDA has determined that this 
proposed rule is consistent with and would effectuate the purpose of the 1996 Act. 
A 30-day comment period is provided 
to allow interested persons to respond to this proposal. All written comments received in response to this proposed rule by the date specified will be considered prior to finalizing this action. 
List of Subjects in 7 CFR Part 1222 
Administrative practice and 
procedure, Advertising, Labeling, 
Marketing agreements, Reporting and recordkeeping requirements. 
For the reasons set forth in the 
preamble, the Agricultural Marketing Service proposed to amend 7 CFR part 1222 as follows: 
PART 1222—PAPER AND PAPER– 
BASED PACKAGING PROMOTION, RESEARCH, AND INFORMATION ORDER 
■1. The authority citation for 7 CFR 
part 1222 continues to read as follows: 
Authority: 7 U.S.C. 7411–7425; 7 U.S.C. 
7401. 
■2. In § 1222.52, revise paragraph (e) to 
read as follows: 
§ 1222.52 Assessment. 
* * * * * 
(e) Each importer of paper and paper- 
based packaging shall pay through Customs to the Board an assessment on the paper and paper-based packaging imported into the United States identified in the Harmonized Tariff Schedule of the United States (HTSUS) number listed in the following table. In the event that any HTSUS number subject to assessment is changed and such change is merely a replacement of a previous number and has no impact on the description of the paper and paper-based packaging involved, assessments will continue to be collected based on the new number. 
Paper and paper-based 
packaging Assessment 
$/kg 
4802.54.1000 ............................ $0.000386 
4802.54.3100 ............................ 0.000386 
4802.54.5000 ............................ 0.000386 
4802.54.6100 ............................ 0.000386 
4802.55.1000 ............................ 0.000386 
4802.55.2000 ............................ 0.000386 
4802.55.4000 ............................ 0.000386 
4802.55.6000 ............................ 0.000386 
4802.55.7020 ............................ 0.000386 
4802.55.7040 ............................ 0.000386 
4802.56.1000 ............................ 0.000386 Paper and paper-based 
packaging Assessment 
$/kg 
4802.56.2000 ............................ 0.000386 
4802.56.4000 ............................ 0.000386 
4802.56.6000 ............................ 0.000386 
4802.56.7020 ............................ 0.000386 
4802.56.7050 ............................ 0.000386 
4802.56.7090 ............................ 0.000386 
4802.57.1000 ............................ 0.000386 
4802.57.2000 ............................ 0.000386 
4802.57.4000 ............................ 0.000386 
4802.57.4020 ............................ 0.000386 
4802.57.4040 ............................ 0.000386 
4802.57.4090 ............................ 0.000386 
4802.58.1000 ............................ 0.000386 
4802.58.2020 ............................ 0.000386 
4802.58.2040 ............................ 0.000386 
4802.58.2080 ............................ 0.000386 
4802.58.5000 ............................ 0.000386 
4802.58.6020 ............................ 0.000386 
4802.58.6040 ............................ 0.000386 
4802.61.1000 ............................ 0.000386 
4802.61.2000 ............................ 0.000386 
4802.61.3110 ............................ 0.000386 
4802.61.3135 ............................ 0.000386 
4802.61.3191 ............................ 0.000386 
4802.61.5000 ............................ 0.000386 
4802.61.6020 ............................ 0.000386 
4802.61.6040 ............................ 0.000386 
4802.62.1000 ............................ 0.000386 
4802.62.2000 ............................ 0.000386 
4802.62.3000 ............................ 0.000386 
4802.62.5000 ............................ 0.000386 
4802.62.6120 ............................ 0.000386 
4802.62.6140 ............................ 0.000386 
4802.69.1000 ............................ 0.000386 
4802.69.2000 ............................ 0.000386 
4802.69.3000 ............................ 0.000386 
4804.11.0000 ............................ 0.000386 
4804.19.0000 ............................ 0.000386 
4804.21.0000 ............................ 0.000386 
4804.29.0000 ............................ 0.000386 
4804.31.4020 ............................ 0.000386 
4804.31.4040 ............................ 0.000386 
4804.31.6000 ............................ 0.000386 
4804.39.4020 ............................ 0.000386 
4804.39.4049 ............................ 0.000386 
4804.39.6020 ............................ 0.000386 
4804.39.6040 ............................ 0.000386 
4804.41.2000 ............................ 0.000386 
4804.41.4000 ............................ 0.000386 
4804.42.0010 ............................ 0.000386 
4804.42.0020 ............................ 0.000386 
4804.42.0030 ............................ 0.000386 
4804.42.0040 ............................ 0.000386 
4804.42.0050 ............................ 0.000386 
4804.49.0000 ............................ 0.000386 
4804.51.0000 ............................ 0.000386 
4804.52.0010 ............................ 0.000386 
4804.52.0020 ............................ 0.000386 
4804.52.0030 ............................ 0.000386 
4804.52.0040 ............................ 0.000386 
4804.52.0050 ............................ 0.000386 
4804.59.0000 ............................ 0.000386 
4805.11.0000 ............................ 0.000386 
4805.12.1000 ............................ 0.000386 
4805.12.2000 ............................ 0.000386 
4805.19.1000 ............................ 0.000386 
4805.19.2000 ............................ 0.000386 
4805.24.5000 ............................ 0.000386 
4805.24.7000 ............................ 0.000386 
4805.24.9000 ............................ 0.000386 
4805.25.0000 ............................ 0.000386 
4805.91.1010 ............................ 0.000386 
4805.91.9000 ............................ 0.000386 
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Paper and paper-based 
packaging Assessment 
$/kg 
4805.92.4010 ............................ 0.000386 
4805.92.4030 ............................ 0.000386 
4805.93.4010 ............................ 0.000386 
4805.93.4030 ............................ 0.000386 
4805.93.4050 ............................ 0.000386 
4805.93.4060 ............................ 0.000386 
4807.00.9100 ............................ 0.000386 
4807.00.9400 ............................ 0.000386 
4810.13.1120 ............................ 0.000386 
4810.13.1140 ............................ 0.000386 
4810.13.1900 ............................ 0.000386 
4810.13.2010 ............................ 0.000386 
4810.13.2090 ............................ 0.000386 
4810.13.5000 ............................ 0.000386 
4810.13.6000 ............................ 0.000386 
4810.13.7020 ............................ 0.000386 
4810.13.7040 ............................ 0.000386 
4810.14.1120 ............................ 0.000386 
4810.14.1140 ............................ 0.000386 
4810.14.1900 ............................ 0.000386 
4810.14.2010 ............................ 0.000386 
4810.14.2090 ............................ 0.000386 
4810.14.5000 ............................ 0.000386 
4810.14.6000 ............................ 0.000386 
4810.14.7020 ............................ 0.000386 
4810.14.7040 ............................ 0.000386 
4810.19.1100 ............................ 0.000386 
4810.19.1900 ............................ 0.000386 
4810.19.2010 ............................ 0.000386 
4810.19.2090 ............................ 0.000386 
4810.22.1000 ............................ 0.000386 
4810.22.5044 ............................ 0.000386 
4810.22.5080 ............................ 0.000386 
4810.22.6000 ............................ 0.000386 
4810.22.7020 ............................ 0.000386 
4810.22.7040 ............................ 0.000386 
4810.29.1025 ............................ 0.000386 
4810.29.1035 ............................ 0.000386 
4810.29.5000 ............................ 0.000386 
4810.29.6000 ............................ 0.000386 
4810.29.7020 ............................ 0.000386 
4810.29.7025 ............................ 0.000386 
4810.29.7035 ............................ 0.000386 
4810.31.1020 ............................ 0.000386 
4810.31.1040 ............................ 0.000386 
4810.31.3000 ............................ 0.000386 
4810.31.6500 ............................ 0.000386 
4810.32.1020 ............................ 0.000386 
4810.32.1040 ............................ 0.000386 
4810.32.1060 ............................ 0.000386 
4810.32.3000 ............................ 0.000386 
4810.32.6500 ............................ 0.000386 
4810.39.1200 ............................ 0.000386 
4810.39.1400 ............................ 0.000386 
4810.39.3000 ............................ 0.000386 
4810.39.6500 ............................ 0.000386 
4810.92.1225 ............................ 0.000386 
4810.92.1235 ............................ 0.000386 
4810.92.6525 ............................ 0.000386 
4810.92.6535 ............................ 0.000386 
4810.99.1050 ............................ 0.000386 
4810.99.6500 ............................ 0.000386 
4811.51.2010 ............................ 0.000386 
4811.51.2020 ............................ 0.000386 
4811.51.2030 ............................ 0.000386 
4811.59.4020 ............................ 0.000386 
4811.90.8030 ............................ 0.000386 * * * * * 
Erin Morris, 
Associate Administrator, Agricultural 
Marketing Service. 
[FR Doc. 2022–24108 Filed 11–4–22; 8:45 am] 
BILLING CODE P 
SMALL BUSINESS ADMINISTRATION 
13 CFR Part 120 
RIN 3245–AH92 
Small Business Lending Company 
(SBLC) Moratorium Rescission and Removal of the Requirement for a Loan Authorization 
AGENCY : U.S. Small Business 
Administration. 
ACTION : Proposed rule. 
SUMMARY : The U.S. Small Business 
Administration (SBA or Agency) is proposing to lift the moratorium on licensing new Small Business Lending Companies (SBLCs) and add a new type of entity called a Mission-Based SBLC. SBA is also proposing to remove the requirement for a Loan Authorization. 
DATES : SBA must receive comments on 
this proposed rule on or before January 6, 2023. 
ADDRESSES : You may submit comments, 
identified by RIN 3245–AH92, through the Federal eRulemaking Portal: http:// 
www.regulations.gov. Follow the 
instructions for submitting comments. 
SBA will post all comments on http:// 
www.regulations.gov. If you wish to 
submit confidential business information (CBI) as defined in the User Notice at http://www.regulations.gov, please submit the information via email to Dianna.Seaborn@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 whether it will publish the information. 
FOR FURTHER INFORMATION CONTACT : 
Dianna Seaborn, Director, Office of Financial Assistance, Office of Capital Access, 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 : I. Background Information 
The mission of SBA is to ‘‘aid, 
counsel, assist, and protect . . . the interests of small business concerns in order to preserve free competitive enterprise . . . and to maintain and strengthen the overall economy of our nation.’’ 15 U.S.C. 631(a). SBA accomplishes this mission, in part, through programs that bridge the financing gap in the private market. One such program is the 7(a) Loan Program authorized by section 7(a) of the Small Business Act (15 U.S.C. 636(a)), which supports our nation’s economy by providing SBA-guaranteed loans to small businesses that lack adequate access to capital on reasonable terms and conditions. 
Section 7(a)(17) of the Small Business 
Act states that SBA shall authorize lending institutions and other entities, in addition to banks, to make 7(a) loans. To this end, SBA has authorized Small Business Lending Companies (SBLCs) as defined in 13 CFR 120.10 to participate in the 7(a) Loan Program. SBLCs are non-depository lending institutions authorized by SBA only to make loans pursuant to section 7(a) of the Small Business Act and loans to Intermediaries in SBA’s Microloan program. Under current regulations, SBLCs may not be affiliated with another SBA Lender, including 7(a) Lenders or Certified Development Companies (CDCs) that participate in SBA’s CDC/504 Loan Program. SBLCs are subject to all regulations pertaining to 7(a) loans and Loan Program Requirements (as defined in 13 CFR 120.10) regarding origination, servicing, and liquidation. Unlike the majority of 7(a) Lenders, which are Federally- regulated depository institutions, SBLCs are regulated, supervised, and examined solely by SBA. As SBA-regulated entities, SBLCs are subject to specific regulations regarding formation, capitalization, and enforcement actions. 
On August 17, 1981, SBA published 
a Proposed Rule (46 FR 41523) to, among other things, impose a moratorium on licensing new SBLCs, because the Agency did not have adequate resources to effectively service and supervise additional SBLCs. Subsequently, on January 4, 1982, SBA published a Final Rule (47 FR 9) repealing its authority to approve additional SBLCs as participating lenders. Since then, the number of SBLC Licenses has remained unchanged at 14. To become an SBLC under current regulations, an entity must acquire one of the existing 14 SBLC Licenses from an entity that is willing to sell its SBLC License and exit the 7(a) Loan Program. 
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