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###### Small Business Administration

# ACTION:

60-Day notice and request for comments.

# SUMMARY:

                        The Small Business Administration (SBA) intends to request approval, from the Office of Management and Budget (OMB) for the                               ( print page 62867)                            collection of information described below. The Paperwork Reduction Act (PRA) requires Federal agencies to publish a notice in the                         **Federal Register**                         concerning each proposed collection of information before submission to OMB, and to allow 60 days for public comment in response to the notice. This notice complies with that requirement.                    

# DATES:

Submit comments on or before November 13, 2023.

# ADDRESSES:

Send all comments to Gregorius Suryadi, Financial and Loan Specialist, Office of Financial Assistance, Small Business Administration, Washington, DC 20416.

# FOR FURTHER INFORMATION CONTACT:

                        Gregorius Suryadi, Financial and Loan Specialist, Office of Financial Assistance,                         *gregorius.suryadi@sba.gov*                         (202) 205-6806, or Curtis B. Rich, Agency Clearance Officer, (202) 205-7030,                         *curtis.rich@sba.gov.*

# SUPPLEMENTARY INFORMATION:

The Small Business Investment Act authorizes SBA to guarantee a debenture issued by a Certified Development Company (CDC). The proceeds from each debenture are used to fund loans to eligible small business concerns (“504 loans”). 15 U.S.C. 697(a). The Small Business Act and the Small Business Investment Act mandate that all guaranteed loans provided by the SBA to small business concerns (SBCs) must have a reasonable assurance of ability to repay. See 15 U.S.C. 636(a)(6) and 687(f); see also 13 CFR 120.150. The information collections SBA Form 1244 is being updated for regulatory and Standard Operating Procedure 50 10 7 changes along with conforming the Form more in alignment with Form 1919, the 7(a) program information collection which was recently updated. SBA has updated borrower certifications and proposes streamlining the Form 1244 based on regulatory and SOP updates as well as public comments from trade associations representing the 504 industry.

Additionally, in accordance to the National Defense Authorization Act (NDAA)/Small Business Runway Extension Act (SBREA) for Fiscal Year 2022 rule, the SBA will use its administrative discretion to permit loan applicants to choose between 3 years and 5 years for receipts-based size standards, and from 12 months to 24 months for employee-based size standards. (15 U.S.C. 632(a)(2))

## Solicitation of Public Comments

SBA is requesting comments on (a) Whether the collection of information is necessary for the agency to properly perform its functions; (b) whether the burden estimates are accurate; (c) whether there are ways to minimize the burden, including through the use of automated techniques or other forms of information technology; and (d) whether there are ways to enhance the quality, utility, and clarity of the information.

## Summary of Information Collection

*OMB Control Number:*                     3245-0071.                

*Title:*                     Application for Section 504 Loans.                

*Form Number:*                     SBA Form 1244.                

*Description of Respondents:*                     Small Business Concerns applying for a section 504 loan and Certified Development Companies.                

The information collected by this form is used to review the eligibility of the small business concern (SBC) for SBA financial assistance; the creditworthiness and repayment ability of the SBC; and the terms and conditions of the 504 loan for which the SBC is applying.

SBA has established a streamlined loan application processing procedure known as the Abridged Submission Method (ASM). Under this process, the CDCs are required to collect and retain all exhibits to SBA Form 1244 but are only required to submit selective documents. CDCs using the non-ASM method are required to submit all documents and exhibits required for Form 1244.

The burden estimates (based on the experience of the CDCs and SBA field offices) of the burden hours imposed by use of these forms, including exhibits, are as follows:

There are 200 CDCs affected by the information collection. The total number of small business concerns that will annually respond to Form 1244 is approximately 7,119 based on the average submission of applications submitted from CDCs over the past FY using both the ASM and non-ASM methods. This is a total of 7,119 respondents. Burden hours are 2.25 hours for PCLP Loan and ALP Express Loan, 2.5 hours for ASM, and 3.5 hours for non-ASM submissions.

*Submission through delegated authority:*                     15 × 2.25 = 34 burden hours.                

*Submission through the ASM:*                     5,695 × 2.5 = 14,238 burden hours.                

*Submission through non-ASM (standard method):*                     1,409 × 3.5 = 4,932 burden hours.                

*Total burden hours:*                     19,204.                

Curtis Rich,

Agency Clearance Officer.

[FR Doc. 2023-19709 Filed 9-12-23; 8:45 am]

BILLING CODE 8026-09-P