20294 Federal Register / Vol. 77, No. 65 / Wednesday, April 4, 2012 / Rules and Regulations 

will not impose any new reporting or 

recordkeeping requirements. The 

requirement for SBICs to submit 

requests for conflict of interest 

exemptions is not an information 

collection as that term is defined by the 

PRA because the requests do not involve 

any standardized or identical reporting, 

recordkeeping or disclosure 

requirements. Rather, each request for 

exemption is unique to the 

circumstances of the particular SBIC. In 

any event, to the extent that SBICs have 

been required to submit conflict of 

interest exemptions under the 

circumstances described in this rule, 

that requirement no longer exists. 

Compliance With the Regulatory 

Flexibility Act, 5 U.S.C. 601–612 

When an agency promulgates a final 

rule following publication of the 

proposed rule, the Regulatory Flexibility 

Act (RFA) (5 U.S.C. 601–612) requires 

the agency to prepare a final regulatory 

flexibility analysis (FRFA) which 

describes the potential economic impact 

of the rule on small entities and 

alternatives that may minimize that 

impact. Section 605 of the RFA allows 

an agency to certify a rule, in lieu of 

preparing a FRFA, if the rulemaking is 

not expected to have a significant 

economic impact on a substantial 

number of small entities. This final rule 

affects all SBICs, of which there are 

currently 294, most of which are small 

entities. Therefore, SBA has determined 

that this rule will have an impact on a 

substantial number of small entities. 

However, SBA has determined that the 

impact on entities affected by the rule 

will not be significant. The new conflict 

of interest exception eliminates the 

requirement for SBICs to obtain a 

conflict of interest exemption for a 

particular type of transaction. This 

change is expected to reduce the 

regulatory burden on SBICs and allow 

them to close such financing 

transactions with less delay. 

SBA asserts that the economic impact 

of the rule, if any, will be minimal and 

entirely beneficial to small SBICs. 

Accordingly, the Administrator of the 

SBA hereby certifies that this rule will 

not have a significant impact on a 

substantial number of small entities. 

List of Subjects in 13 CFR Part 107 

Investment companies, Loan 

programs—business, Reporting and 

recordkeeping requirements, Small 

businesses. 

For the reasons stated in the 

preamble, the Small Business 

Administration amends part 107 of title 

13 of the Code of Federal Regulations as 

follows: 

PART 107—SMALL BUSINESS 

INVESTMENT COMPANIES 

■ 1. The authority citation for part 107 

continues to read as follows: 

Authority: 15 U.S.C. 681 et seq., 683, 

687(c), 687b, 687d, 687g, 687m, Pub. L. 106– 

554, 114 Stat. 2763; and Pub. L. 111–5, 123 

Stat. 115. 

§ 107.505 [Removed] 

■ 2. Remove § 107.505. 

■ 3. Amend § 107.530 by redesignating 

paragraphs (b)(3) through (b)(6) as (b)(4) 

through (b)(7), and adding a new 

paragraph (b)(3) to read as follows: 

§ 107.530 Restrictions on investments of 

idle funds by leveraged Licensees. 

* * * * * 

(b) Permitted investments of idle 

funds. * * * 

(3) Mutual funds, securities, or other 

instruments that exclusively consist of, 

or represent pooled assets of, 

investments described in paragraphs 

(b)(1) or (b)(2) of this section; or 

* * * * * 

■ 4. Amend § 107.730 by revising 

paragraphs (a)(1) and (g) to read as 

follows: 

§ 107.730 Financings which constitute 

conflicts of interest. 

(a) * * * 

(1) Provide Financing to any of your 

Associates, except for a Financing to an 

Associate that meets all of the following 

conditions: 

(i) The Small Business that receives 

the Financing is your Associate, 

pursuant to paragraph (8)(ii) of the 

Associate definition in § 107.50, only 

because an investment fund that is your 

Associate holds a 10% or greater equity 

interest in the Small Business. 

(ii) You and the Associate investment 

fund previously invested in the Small 

Business at the same time and on the 

same terms and conditions. 

(iii) You and the Associate investment 

fund are providing follow-on financing 

to the Small Business at the same time, 

on the same terms and conditions, and 

in the same proportionate dollar 

amounts as your respective investments 

in the previous round(s) of financing 

(for example, if you invested $2 million 

and your Associate invested $1 million 

in the previous round, your respective 

follow-on investments would be in the 

same 2:1 ratio). 

* * * * * 

(g) Public notice. Before granting an 

exemption under this § 107.730, SBA 

will publish notice of the transaction in 

the Federal Register. 

§ 107.855 [Amended] 

■ 5. Amend § 107.855 by removing 

paragraph (g)(10) and redesignating 

current paragraphs (g)(11) through 

(g)(13) as (g)(10) through (g)(12). 

Karen G. Mills, 

Administrator. 

[FR Doc. 2012–8017 Filed 4–3–12; 8:45 am] 

BILLING CODE 8025–01–P 

DEPARTMENT OF STATE 

22 CFR Parts 22 and 42 

[Public Notice 7838] 

RIN 1400–AD06 

Revision to the Schedule of Fees for 

Consular Services, Department of 

State and Overseas Embassies and 

Consulates; Correction 

AGENCY: Bureau of Consular Affairs, 

Department of State. 

ACTION: Interim Final Rule; Correction. 

SUMMARY: This document contains a 

correction to the Schedule of Fees for 

Consular Services, Department of State 

and Overseas Embassies and Consulates 

published in the Federal Register on 

March 29, 2012 [Public Notice 7835]. 

DATES: Effective April 13, 2012. 

FOR FURTHER INFORMATION CONTACT: 

Special Assistant, Office of the 

Comptroller, Bureau of Consular Affairs, 

Department of State; phone: 202–663– 

1576, telefax: 202–663–2526; email: 

fees@state.gov. 

SUPPLEMENTARY INFORMATION: 

Correction 

The interim final rule published on 

March 29, 2012, 77 FR 18907–18914, is 

corrected as follows: 

1. In the chart on pg. 18912 detailing 

the proposed fee changes, the total 

estimated change in annual fees 

collected amount, at the bottom of the 

far right column, is corrected so that the 

decimal places are correct. The correct 

figure is 94,813,970. 

Dated: March 30, 2012. 

Alexandra C. Gianinno, 

Comptroller, Office of the Comptroller, 

Bureau of Consular Affairs, U.S. Department 

of State. 

[FR Doc. 2012–8109 Filed 4–3–12; 8:45 am] 

BILLING CODE 4710–06–P 


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