79734 Federal Register / Vol. 89, No. 190 / Tuesday, October 1, 2024 / Rules and Regulations 

and recordkeeping requirements, Rice, 

Sugar, Vegetables. 

Accordingly, we are amending 7 CFR 

parts 305 and 319 as follows: 

PART 305—PHYTOSANITARY 

TREATMENTS 

■ 1. The authority citation for part 305 

continues to read as follows: 

Authority: 7 U.S.C. 7701–7772 and 7781– 

7786; 21 U.S.C. 136 and 136a; 7 CFR 2.22, 

2.80, and 371.3. 

■ 2. In § 305.1, revise the definition of 

‘‘PPQ Treatment Manual’’ to read as 

follows: 

§ 305.1 Definitions. 

* * * * * 

PPQ Treatment Manual. A document 

that contains treatment schedules that 

are approved by the Administrator for 

use under this part. The Treatment 

Manual is available on the internet at 

https://acir.aphis.usda.gov/s/treatmenthub, or by contacting the Animal and 

Plant Health Inspection Service, Plant 

Protection and Quarantine, Information 

Services and Manuals Unit, 4700 River 

Road, Riverdale, MD 20737. 

* * * * * 

PART 319—FOREIGN QUARANTINE 

NOTICES 

■ 3. The authority citation for part 319 

continues to read as follows: 

Authority: 7 U.S.C. 1633, 7701–7772, and 

7781–7786; 21 U.S.C. 136 and 136a; 7 CFR 

2.22, 2.80, and 371.3. 

§ 319.5 [Amended] 

■ 4. In § 319.5(c), remove the text 

‘‘Commodity Import Analysis and 

Operations,’’. 

■ 5. In § 319.37–2, revise the definition 

of ‘‘Plants for Planting Manual’’ to read 

as follows: 

§ 319.37–2 Definitions. 

* * * * * 

Plants for Planting Manual. The 

document that contains restrictions on 

the importation of specific types of 

plants for planting, as provided in 

§ 319.37–20, and other information 

about the importation of plants for 

planting as provided in this subpart. 

The Plants for Planting Manual is 

available on the internet at https://acir.

aphis.usda.gov/s/plants-for-plantinghub, or by contacting the Animal and 

Plant Health Inspection Service, Plant 

Protection and Quarantine, Information 

Services and Manuals Unit, 4700 River 

Road, Riverdale, MD 20737. 

* * * * * 

§ 319.56–4 [Amended] 

■ 6. In § 319.56–4(c)(1), remove the web 

address ‘‘https://epermits.aphis.

usda.gov/manual’’ and add the web 

address ‘‘https://acir.aphis.usda.gov/s/’’ 

in its place. 

Done in Washington, DC, this 16th day of 

September 2024. 

Michael Watson, 

Administrator, Animal and Plant Health 

Inspection Service. 

[FR Doc. 2024–21619 Filed 9–30–24; 8:45 am] 

BILLING CODE 3410–34–P 

SMALL BUSINESS ADMINISTRATION 

13 CFR Part 120 

RIN 3245–AI15 

504 Debt Refinancing 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Direct final rule. 

SUMMARY: The U.S. Small Business 

Administration (SBA or Agency) is 

amending regulations governing SBA’s 

504 Loan Program for debt refinancing 

with expansion and debt refinancing 

without expansion with this direct final 

rule. The changes will streamline the 

loan application process, expand 

eligibility criteria for small businesses 

borrowers, and make minor corrections. 

The amendments include: removing the 

50% cap on debt refinance without 

expansion to conform with current 

legislation; raising the loan to value 

requirement on debt refinancing 

without expansion projects that include 

other business expenses to 90% and 

eliminating the cap on Eligible Business 

Expenses; aligning the ‘‘substantially 

all’’ standard for 504 debt refinancing 

with expansion so it is consistent with 

the debt refinancing without expansion 

standard of 75%; eliminating the 10% 

substantial benefit test on 504 debt 

refinancing with expansion and 504 

debt refinancing without expansion on 

refinancing other government debt; and 

allowing certain ‘‘other secured debt’’ to 

be included as an Eligible Business 

Expense. 

DATES: The direct final rule is effective 

November 15, 2024. SBA must receive 

comments on this direct final rule on or 

before October 31, 2024. If adverse 

comment is received, SBA will publish 

a timely withdrawal of the rule in the 

Federal Register. 

ADDRESSES: You may submit comments, 

identified by RIN 3245–AI15, through 

the Federal eRulemaking Portal: https:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

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 via email 

to Gregorius.Suryadi@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: 

Gregorius Suryadi, Senior Financial and 

Loan Specialist, 504 Program Branch, 

Office of Financial Assistance, Small 

Business Administration, 409 3rd Street 

SW, Washington, DC 20416; telephone: 

(202) 205–6806; email: 

gregorius.suryadi@sba.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background Information 

The 504 Loan Program is an SBA 

financing program authorized under 

title V of the Small Business Investment 

Act of 1958, 15 U.S.C. 695 et seq. The 

core mission of the 504 Loan Program is 

to provide long-term financing to small 

businesses for the purchase or 

improvement of land, buildings, and 

major equipment, in an effort to 

facilitate the creation or retention of jobs 

and local economic development. Under 

the 504 Loan Program, loans are made 

to small business applicants by Certified 

Development Companies (‘‘CDCs’’), 

which are certified and regulated by 

SBA to promote economic development 

within their community. In general, a 

project in the 504 Loan Program (a ‘‘504 

Project’’) includes: A loan obtained from 

a private sector lender with a senior lien 

covering at least 50 percent of the 

project cost; a loan obtained from a CDC 

(a ‘‘504 Loan’’) with a junior lien 

covering up to 40 percent of the total 

cost (backed by a 100 percent SBAguaranteed debenture); and a 

contribution from the Borrower of at 

least 10 percent equity. 

In addition, the 504 Loan Program 

may be used to refinance debt under 

two options authorized under section 

502(7)(B) and (C) of the Small Business 

Investment Act of 1958. First, if a 504 

Project involves the expansion of the 

small business, any amount of existing 

indebtedness that does not exceed 100 

percent of the project cost of the 

expansion may be refinanced and added 

to the project’s cost (Debt Refinancing 

with Expansion) under the conditions 

set forth in section 502(7)(B) and the 

implementing regulations. See 13 CFR 

120.882(e) and (f). Second, debt 


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1Since March 2022, the Federal Reserve has 

increased its benchmark short-term interest rate 

from near zero to a 23-year high of 5.25% to 5.5% 

to tame inflation. The Federal Reserve raised rates 

on March 17, 2022, by 25 basis points, on May 5, 

2022, by 50 basis points, in July, July, September, 

and November each time by 75 basis point with 

each reset, then on December 14, 2022, by 50 basis 

points, in February, March, May and July 2023 by 

25 basis points with each reset. 

refinancing is available for a 504 Project 

that does not involve the expansion of 

the small business under the 

requirements set forth in section 

502(7)(C) and 13 CFR 120.882(g) (Debt 

Refinancing without Expansion). 

On July 29, 2021, SBA published in 

the Federal Register an interim final 

rule implementing section 328(a) of the 

Economic Aid to Hard-Hit Small 

Businesses, Nonprofits, and Venues Act 

(Economic Aid Act), enacted December 

27, 2020, Public Law 116–260, which 

revised the conditions and requirements 

for refinancing 504 loan debt (‘‘Debt 

Refinancing in the 504 Loan Program 

interim final rule’’ or ‘‘interim final 

rule’’). 86 FR 40775 (July 29, 2021). SBA 

subsequently issued a final rule on 

October 12, 2023, finalizing the interim 

final rule and implementation of section 

328 of the Economic Aid Act (‘‘Debt 

Refinancing in the 504 Loan Program 

final rule’’ or ‘‘final rule’’). 88 FR 70580 

(October 12, 2023). 

With the prior rulemaking the Agency 

included statutorily required mandatory 

changes to the 504 loan program, with 

one omission, as the statutory change 

limiting the loan dollar volume of 504 

refinancing loans without expansion to 

50% of the CDC’s prior portfolio, as 

required by section 328(a)(2)(A) of the 

Economic Aid Act, was not included. In 

addition, during the prior rulemaking 

the National Associate of Development 

Companies (NADCO), a 504 Loan 

Program trade association, along with 

many of its member CDCs, requested 

additional changes to the 504 loan 

program. Since these changes went 

beyond those mandated by the 

Economic Aid Act, they were not 

implemented at the time since the 

Agency’s objective was to implement 

the statutory changes directly and 

expeditiously without variation. Some 

of the changes recommended by the 

trade association required careful 

consideration by each impacted SBA 

office, had the potential for risk shifting 

in the 504 portfolio, had a potential 

impact on other SBA programs such as 

the 7(a) program, or had a potential for 

impact on the 504 subsidy rate and 

consequently were held for future rule 

making. The comments were 

nonetheless consistent with lender 

round table feedback from three major 

lender conferences. 

Commenters, requested that SBA: 

increase eligibility for 504 debt 

refinance with expansion and 504 debt 

refinance without expansion; update the 

eligibility standards for more flexibility; 

remove requirements that are not 

required by statute and which create an 

additional barrier to debt restructuring 

and relief for 504 small business 

borrowers; raise the loan to value 

requirement on debt refinancing 

without expansion projects; align the 

‘‘substantially all’’ standard for 504 debt 

refinancing with expansion with the 504 

debt refinancing without expansion 

standard; and eliminate the 10% 

substantial benefit test on 504 debt 

refinancing with expansion and 504 

debt refinancing without expansion on 

refinancing other government debt. 

Congress’ long-established policy is 

that SBA stimulate and supplement the 

flow of long-term loan funds which 

small business concerns need for the 

sound financing of their business 

operations and for their growth, 

expansion, and modernization, 

including with the refinancing of 

existing loan debt. 15 U.S.C. 661. 

Businesses are facing increasing 

operating costs due to inflation, global 

supply chain challenges, and increases 

in building costs and supplies which are 

above pre-pandemic levels. The impact 

of multiple Federal Reserve interest rate 

increases 1 from March 2022 to February 

2024 has prompted a request for 

expedient SBA action on behalf of small 

business borrowers. The 504 loan 

program has a long-term fixed interest 

rate for 40% of the project to help small 

businesses refinance conventional loans 

or government based programs, which 

are generally based on a variable rate. 

This results in significant cost savings 

for the small business borrower and 

assists small businesses with managing 

costs by providing a predictable expense 

with a fixed interest rate. 

Further, as the interim final rule was 

released July 29, 2021, and as the final 

rule was released October 12, 2023, SBA 

could not have anticipated the impact 

on policy of the Federal Reserve interest 

rate policy during the prior rulemaking. 

Since the publication of the Debt 

Refinancing in the 504 Loan Program 

final rule, SBA’s Office of Financial 

Assistance (OFA) has received input on 

the impact of the rising interest rate 

environment on 504 debt refinancing. 

For example, SBA received feedback on 

the difficulty of SBA applicants in 

meeting the 10% substantial benefit test 

to borrowers, and CDCs have asked for 

a revision of this standard as it was not 

required in statute and was adopted 

through regulations. 

As described in the section-by-section 

analysis below, SBA is issuing this 

direct final rule to correct the omission 

described above and to implement 

changes to 504 debt refinancing in 

response to public comments provided 

during the prior rulemaking and 

industry input both before and 

following the prior rulemaking. 

II. Justification for Direct Final Rule 

In general, SBA publishes a rule for 

public comment before issuing a final 

rule, in accordance with the 

Administrative Procedure Act. 5 U.S.C. 

553. The Administrative Procedure Act 

provides an exception to this standard 

rulemaking process, however, when an 

agency finds good cause to adopt a rule 

without prior public participation. 5 

U.S.C. 553(b)(3)(B). The good cause 

requirement is satisfied when prior 

public participation is impracticable, 

unnecessary, or contrary to the public 

interest. SBA is publishing this rule as 

a direct final rule because public 

participation is unnecessary. SBA views 

this as a non-controversial 

administrative action because all 

technical corrections and updates are 

consistent with public comments 

received throughout the previous 

rulemaking process. This rule will be 

effective on the date shown in the DATES

section unless SBA receives significant 

adverse comment on or before the 

deadline for comments. Significant 

adverse comments are comments that 

provide strong justifications why the 

rule should not be adopted or for 

changing the rule. SBA does not expect 

to receive any significant adverse 

comments because these technical 

corrections and updates are consistent 

with broad stakeholder comments 

received during the prior previous 

rulemaking process. Further, because 

some of the changes in this rule are 

prescribed by statute, SBA does not 

expect significant adverse comments. 

If SBA receives significant adverse 

comment, SBA will publish a document 

in the Federal Register withdrawing 

this rule before the effective date. If SBA 

receives no significant adverse 

comments, the rule will be effective 45 

days after publication without further 

notice. 

III. Section-by-Section Analysis 

A. Delete 13 CFR 120.882(g)(10) To 

Remove the 50% Cap for Debt 

Refinancing Without Expansion in 

Alignment With the Economic Aid Act 

Subsequent to the publication of the 

Debt Refinancing in the 504 Loan 

Program final rule SBA identified a 

drafting omission that must be corrected 


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79736 Federal Register / Vol. 89, No. 190 / Tuesday, October 1, 2024 / Rules and Regulations 

to ensure the corresponding regulation 

aligns with the Economic Aid Act. 

Section 328(a) of the Economic Aid Act 

had repealed section 521(a) of title V of 

division E of the Consolidated 

Appropriations Act of 2016. Section 

521(a), in part, limited a CDC’s 

financings so that in any fiscal year no 

more than 50 percent of the CDC’s 

financings were for debt refinancing not 

involving expansion, a requirement 

implemented by SBA regulations at 13 

CFR 120.882(g)(10). Consequently, the 

Debt Refinancing in the 504 Loan 

Program final rule should have deleted 

the regulation at 13 CFR 120.882(g)(10). 

SBA has included in this direct final 

rule the correction and is removing 50% 

cap for debt refinancing without 

expansion to align with the Economic 

Aid Act, thereby removing the current 

inconsistency between Agency 

regulations and the statute. This change 

will provide certainty to CDCs that their 

debt refinancing loans are no longer 

capped at 50% of the total dollar 

amount of the CDC’s 504 loans 

approved, thereby increasing debt 

refinancing opportunities for small 

business concerns. 

B. Update 13 CFR 120.882(g)(6) To 

Increase the Percentage of Qualified 

Debt in Projects Including Eligible 

Business Expenses From 85% to 90% 

and Remove the 20% Cap on Eligible 

Businesses Expenses 

Currently, if an application for a 504 

debt refinancing without expansion 

project includes a request to finance 

Eligible Business Expenses (as described 

in 13 CFR 120.882(g)(6)(ii)), the portion 

of the refinancing project provided by 

the 504 loan and the third party loan 

may be no more than 85% of the fair 

market value of the fixed assets that will 

serve as collateral and the Borrower may 

receive no more than 20% of the fair 

market value of the eligible fixed assets 

securing the debt to be refinanced for 

Eligible Business Expenses. SBA is 

removing these restrictions in regulation 

in order to expand eligibility for more 

small businesses to access debt 

refinancing under the 504 loan program. 

SBA will review comments received in 

response to this direct final rule and 

will consider further policy changes are 

needed. 

C. Adding Consistency to the Standard 

for ‘‘Substantially All’’ Between 

Refinancing Without Expansion and 

Refinancing With Expansion 

Under current regulations, one of the 

conditions of a 504 debt refinancing 

with expansion project is that 

substantially all (85% or more) of the 

proceeds of the indebtedness were used 

to acquire land, including a building 

situated on that land, to construct a 

building on that land, or to purchase 

equipment. The previous 504 debt 

refinancing rulemaking modified the 

504 debt refinancing without expansion 

‘‘substantially all’’ standard in the 

Qualified Debt definition by lowering 

the threshold from 85% to 75%. The 

effect was that this lowered standard 

only applied to 504 debt refinancing 

without expansion because the term 

‘‘Qualified Debt’’ is only used in the 

context of 504 debt refinancing without 

expansion and not 504 debt refinancing 

with expansion. 

SBA received input from NADCO and 

during lender round tables that this 

inconsistency of 75% for 504 debt 

refinancing without expansion and 85% 

for 504 debt refinancing with expansion 

is confusing and that it would be 

helpful to have a consistent standard 

between the debt refinancing with 

expansion and debt refinancing without 

expansion options for CDCs, third party 

lenders, and small businesses seeking 

504 loan program assistance. Based on 

public comments received, SBA is 

making the ‘‘substantially all’’ standard 

consistent between the two programs by 

revising § 120.882(e)(1) to lower the 

‘‘substantially all’’ standard from 85% 

to 75% for 504 debt refinancing with 

expansion. SBA will review comments 

received in response to this direct final 

rule and will consider further policy 

changes are needed to further expand 

the standard. 

D. Allowing Other Secured Debt To Be 

Included as an Eligible Business 

Expense 

Under current regulations, a debt 

refinancing without expansion project 

may include a request to finance eligible 

business expenses, which are limited to 

the operating expenses of the business. 

Debt is generally not included as an 

eligible business expense, except for 

certain types of unsecured debt. On 

occasion SBA Applicants have debt that 

has been secured by the same Eligible 

Fixed Assets securing the qualified debt 

that is the subject of the 504 debt 

refinancing project (‘‘Other Secured 

Debt’’). Under current regulations Other 

Secured Debt may not be part of the 504 

debt refinancing project. As a result, the 

borrower, even with 504 financing, may 

be subject to debt and liens that are not 

in the best risk portfolio interest of the 

Agency. Including Other Secured Debt 

as an Eligible Business Expense is in 

alignment with 504 loan program goals, 

and the flexibility to include Other 

Secured Debt would further assist the 

small business in restructuring its 

outstanding debt. Even so, SBA will not 

consider Other Secured Debt that was 

incurred for capital expenditures as an 

Eligible Business Expense because such 

expenditures are not the day-to-day 

expenses of a business and SBA does 

not believe Congress intended that such 

expenditures be included as an Eligible 

Business Expense. Further, while a 

secured business line of credit may be 

an Eligible Business Expense, such 

Other Secured Debt will only be eligible 

as part of a 504 debt refinance without 

expansion financing provided any 

existing liens are subordinated to the 

504 loan. 

E. Revising 13 CFR 120.882(e)(5) and 

(g)(3)(iii) the Substantial Benefit Test for 

Government Guaranteed Debt for 504 

Refinancing With and Without 

Expansion To Remove the 10% 

Standard 

Under current regulations at 13 CFR 

120.882(e)(5) and (g)(3)(iii), 504 debt 

refinancing must provide a ‘‘substantial 

benefit’’ to the borrower. For purposes 

of 504 debt refinancing a ‘‘substantial 

benefit’’ means that the portion of the 

new installment amount attributable to 

the debt being refinanced must be at 

least 10 percent less than the existing 

installment amount. In its public 

comments for the prior rulemaking, 

NADCO noted that because of the high 

interest rate environment and the large 

number of interest rate increases in 

recent year, the 10% substantial benefit 

test is overly burdensome for the 504 

small business borrower. NADCO 

requested that SBA remove this test to 

provide the small business borrower the 

maximum opportunity to respond to 

market conditions. 

SBA’s concerns about portfolio risk 

for both the 504 and 7(a) programs led 

SBA to adopt the 10% substantial 

benefit test for the 504 loan program to 

provide parity with the 7(a) program’s 

10% substantial benefit test. There are 

substantial differences, however, 

between the programs that would 

obviate the necessity to anchor the 504 

loan program to the 7(a) loan program’s 

10% substantial benefit test. For 

example, SBA’s motivation for adopting 

a 10% substantial benefit test in 7(a) 

stemmed from the concern with using 

limited 7(a) program authority for 

refinancing, especially for other 7(a) 

loans already considered to be on 

reasonable terms, and the concern over 

the risk of considerable 7(a) secondary 

market distortions. Meanwhile, the 504 

Loan Program has ample authority for 

debt refinancing and adding restrictions 

on 504 refinancing at the same level of 

7(a) refinancing restrictions would be 

overly burdensome on the 504 small 

business borrower. The result is that 


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Federal Register / Vol. 89, No. 190 / Tuesday, October 1, 2024 / Rules and Regulations 79737 

many small businesses are prevented 

from refinancing into a more favorable 

longer term fixed-rate product and must 

remain with their variable rate loan in 

a rising rate environment. 

SBA is therefore revising 13 CFR 

120.882(e)(5) and (g)(3)(iii) to remove 

the 10% substantial benefit test for both 

debt refinancing with expansion and 

debt refinancing without expansion, 

while maintaining the requirement that 

the 504 small business borrowers must 

have documented benefit in the 

restructuring of debt. 

Review Act (5 U.S.C. 801–808), 

Paperwork Reduction Act (44 U.S.C., 

Ch. 35), and the Regulatory Flexibility 

Act (5 U.S.C. 601–612) 

Executive Order 12866 

The Office of Management and Budget 

(OMB) has determined that this rule 

does not constitutes a ‘‘significant 

regulatory action’’ for purposes of 

Executive Orders 12866. This direct 

final rule implements specific statutory 

provisions in section 328(a)(2)(A) and 

implements additional changes to debt 

refinancing in SBA’s 504 loan program. 

As shown in Tables 1A and 1B below, 

during the five-year period spanning 

fiscal year (FY) 2018 and FY 2024 (yearto-date (YTD) through May), a total of 

47,252 504 loans were approved for a 

total gross approval amount as of May 

31, 2024, of $43,003,577,000. In 

addition, during the past six fiscal years, 

SBA approved an average of 235 debt 

refinance with expansion loans per year 

with an average annual dollar volume of 

$305,542,333 and approved an average 

of 441 debt refinance without expansion 

loans per year with an average annual 

dollar volume of $470,209,333. In 2020, 

the Economic Aid Act increased the 

amount of existing indebtedness eligible 

for a debt refinance with expansion 

project from 50 percent of the project 

cost to 100 percent of the project cost 

which appears to have impacted loan 

size. The tables are arranged in order to 

convey the data while staying within 

the margin parameters of the Federal 

Register notice guidelines and are an 

update to the data provided in the 504 

Debt Refinancing final rule published 

October 12, 2023. As this direct final 

rule, in part, is intended to correct 

drafting errors and provide eligibility 

clarifications in the prior final rule, SBA 

has updated data on through May 31, 

2024, and included data reported 

through September 30, 2023 (last full 

fiscal year), in the final rule. 

TABLE 1A—504 REFINANCING LENDING ACTIVITY FROM 2018 TO 2021 

[Note: Table 1B on next page contains 2022 through YTD FY 24] 

504 Cohort 2018 2019 2020 2021 

Total Number of 504 Loans ..................................................... 5,874 6,099 7,119 9,676 

Total Dollar Volume of 504 Loans Approved .......................... $4,753,644,000 $4,958,552,000 $5,826,885,000 $8,218,105,540 

Number of 504 Debt Refinancing with Expansion .................. 181 181 236 301 

Dollar Volume of 504 Debt Refinancing with Expansion ........ $212,098,000 $192,968,000 $296,392,000 $389,801,000 

Number of 504 Debt Refinancing Without Expansion ............ 181 166 386 693 

Dollar Volume of 504 Debt Refinancing Without Expansion .. $154,062,000 $154,842,000 $370,160,000 $709,020,000 

TABLE 1B—504 REFINANCING LENDING ACTIVITY FROM 2022 TO YTD 2024 (MAY 31ST) 

504 Cohort 2022 2023 FY 2024 YTD 

(as of May) 

Totals 

FY 2019–YTD FY24 

(May) 

Total Number of 504 Loans ........................................... 9,254 5,924 3,306 47,252 

Total Dollar Volume of 504 Loans Approved ................ $9,207,996,290 $6,419,378,000 $3,619,017,000 $43,003,577,000 

Number of 504 Debt Refinancing with Expansion ........ 336 176 96 1,507 

Dollar Volume of 504 Debt Refinancing with Expansion $454,568,000 $287,427,000 $156,938,000 $1,990,192,000 

Number of 504 Debt Refinancing Without Expansion ... 829 392 286 2,933 

Dollar Volume of 504 Debt Refinancing Without Expansion ....................................................................... $959,897,000 $473,275,000 $333,791,000 $3,155,047,000 

Prior to the change increasing the 

amount of existing indebtedness eligible 

for a debt refinance with expansion 

project from 50 percent of the project 

cost to 100 percent of the project cost, 

of the debt refinance with expansion 

loans, only 16 refinanced a debt that 

equaled 50 percent of the expansion 

costs. If these borrowers had been able 

to refinance 100 percent of the 

expansion costs instead of 50 percent, 

and assuming that all these borrowers 

did so, these borrowers would have 

been able to borrow $15 million more 

over five years, or about $3 million more 

annually. Since the passage of the 

Economic Aid Act, there have been 

4,312 refinancing 504 loans approved of 

which 1,507 were debt refinancing with 

expansion and 2,933 were debt 

refinancing without expansion. In 

dollars approved, this is a combined 

amount of 504 refinancing loans totaling 

$5,145,239,0000 of which 

$1,990,192,000 was for refinancing with 

expansion and $3,155,047,000 was for 

refinancing without expansion. 

TABLE 2A—504 LOAN ACTIVITY BY COHORT YEARS AUGUST TO JULY 2018 TO JULY 2021 

[Note: Table 2B below contains July 2021 through YTD FY 24] 

Cohorts Aug’18–Jul’19 Aug’19–Jul’20 Aug’20–Jul’21 

Total Number of 504 Loans ....................................................................................... 6,153 6,836 9,572 

Total Dollar Volume of 504 Loans Approved ............................................................ $5,063,078,000 $5,575,249,000 $7,934,192,540 

Number of 504 Debt Refi With Expansion ................................................................ 183 243 295 

Dollar Volume of 504 Debt Refi With Expansion ...................................................... $191,786,000 $309,027,000 $362,039,000 

Number of 504 Debt Refi Without Expansion ........................................................... 160 302 66 


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79738 Federal Register / Vol. 89, No. 190 / Tuesday, October 1, 2024 / Rules and Regulations 

TABLE 2A—504 LOAN ACTIVITY BY COHORT YEARS AUGUST TO JULY 2018 TO JULY 2021—Continued 

[Note: Table 2B below contains July 2021 through YTD FY 24] 

Cohorts Aug’18–Jul’19 Aug’19–Jul’20 Aug’20–Jul’21 

Dollar Volume of 504 Debt Refi Without Expansion ................................................. $157,880,000 $295,396,000 $601,831,000 

TABLE 2B—504 LOAN ACTIVITY BY COHORT YEARS AUGUST TO JULY 2021 TO YTD 2024 (MAY) 1

Cohorts Aug’21–Jul’22 Aug’22–Jul’23 Aug’23–May 24 

Total Number of 504 Loans ....................................................................................... 9,392 6,253 4,312 

Total Dollar Volume of 504 Loans Approved ............................................................ $9,248,887,290 $6,624,952,000 $4,745,370,000 

Number of 504 Debt Refi With Expansion ................................................................ 332 183 135 

Dollar Volume of 504 Debt Refi With Expansion ...................................................... $446,975,000 $305,619,000 $207,621,000 

Number of 504 Debt Refi Without Expansion ........................................................... 934 388 383 

Dollar Volume of 504 Debt Refi Without Expansion ................................................. $1,057,386,000 $432,638,000 $475,326,000 

1As shown in Tables 2A and 2B, 504 Loan Activity by Cohort Years August to July 2018 to YTD 2024 (Feb), Data as of 9/15/2023, total dollar 

volume is lifetime gross approval amount including increases. 

This direct final rule is necessary to 

implement the Economic Aid Act in full 

and provide economic relief to small 

businesses still adversely impacted by 

COVID–19. SBA anticipates that making 

these changes to the 504 debt 

refinancing programs will continue to 

result in benefits to small businesses by 

providing greater flexibility to 

restructure debt. 

To assess the impact of the interim 

final rule, SBA evaluated 504 loan 

activity (including the number of loans 

and dollar volume of both debt 

refinance with expansion and debt 

refinance without expansion) between 

August 2018 and May 2024. Because the 

interim final rule was published on July 

29, 2021, with immediate effectiveness, 

the first full month during which the 

modifications to 504 debt refinancing 

were available was August 2021, with 

August 2021 through July 2022 being 

the first 12-month period during which 

the modifications to 504 debt 

refinancing were available to 504 

applicants. SBA divided the data into 

five cohorts of 12 months each, with the 

first cohort beginning in August 2018 

and the last cohort beginning February 

2024. See Tables 2A and 2B. 

As an appropriate baseline for 

evaluation of the impacts of the direct 

final rule that would be made 

permanent in this rule, SBA considers 

the state of 504 lending for debt 

refinance with expansion and without 

expansion before July 2021. SBA 

examines the 12-month periods from 

August 1, 2018, through July 31, 2019, 

to the period from August 1, 2022, to 

July 31, 2023, noting that external 

influences from the pandemic and from 

payments made on behalf of borrowers 

by SBA under section 1112 of the 

Coronavirus Aid Recovery, and 

Economic Security Act (section 1112 

payments) that ended in September 

2021 occurred. The section 1112 

payments required SBA to make 

principal and interest payments on 504 

loans for certain periods of time 

depending on the when the 504 loan 

was approved, which would have made 

a 504 loan an attractive option for small 

businesses and consequently would 

have increased 504 loan volume. 

Further, interest rates on 504 loans in 

these two periods differ, from a range of 

approximately 4.0 to 5.0 percent in the 

earlier period to rates up to 7.0 percent 

in the later period, as do rates on 

alternatives to 504 loans. These changes 

mean that lending total volume by fiscal 

year comparisons may not be 

appropriate for assessment of impact. 

The current direct final rule is a drafting 

correction update for the previous final 

rule with the estimates of activity 

updated accordingly. The chart below 

also provided in the current rulemaking 

below shows these percentages for five 

August-July cohorts prior to the final 

rule published October 12, 2023. It is 

still current as the July 2024 data is not 

yet available. 

2018–19 2019–20 2020–21 2021–22 2022–23 

Dollar Volume of 504 Debt Refi with Expansion as Percentage of Dollar Volume of Total 504 Loans ................. 3.79 5.54 4.56 4.83 4.61 

Dollar Volume of 504 Debt Refi without Expansion as Percentage of Dollar Volume of Total 504 Loans ................. 3.12 5.30 7.59 11.43 6.53 

As indicated in the chart, the 

percentages of 504 debt refinancing 

loans with and without expansion are in 

the recent period returning to the levels 

seen prior to the publication of the 

interim final rule in July 2021. For debt 

refinancing without expansion, the 

August 2020-July 2021 period was 

elevated, and the August 2021-July 2022 

cohort was an outlier, but the next 12 

months settled to a percentage that was 

at a level consistent with the periods 

before the interim final rule and not 

indicative of a significant impact. These 

two cohorts with higher 504 debt 

refinancing percentages occurred during 

the pandemic and were covered, at least 

in part, by section 1112 payments. The 

12-month percentages of 504 debt 

refinancing with expansion did not vary 

widely. 

The interim final rule increased the 

amounts on 504 debt refinancing with 

and without expansion. Aggregate 504 

lending over the period in question 

ranged from approximately $5 billion to 

almost $9.25 billion, with total 504 

lending in the latest 12-month cohort at 

about $6.6 billion. Even in the unlikely 

scenario of the prior rulemaking was the 

sole cause of an increase in total 504 

lending from the low volume in the 

examined period of $5 billion (in 2018– 

19) to the latest 12-month total of $6.6 

billion, the incremental impact, as 

indicated by changes in the percentage 

of total lending accounted for by each, 

is under $100 million. 


khammond on DSKJM1Z7X2PROD with RULES
Federal Register / Vol. 89, No. 190 / Tuesday, October 1, 2024 / Rules and Regulations 79739 

Executive Order 13563 

Executive Order 13563, Improving 

Regulation and Regulatory Review 

(January 18, 2011), requires agencies to 

adopt regulations through a process that 

involves public participation, and to the 

extent feasible, base regulations on the 

open exchange of information and 

perspectives from affected stakeholders 

and the public as a whole. SBA has 

developed this rule in a manner 

consistent with these requirements, and 

the public will have the opportunity to 

provide comments following the 

publication of this rule. 

Executive Order 12988 

This action meets applicable 

standards set forth in sections 3(a) and 

3(b)(2) of Executive Order 12988, Civil 

Justice Reform, to minimize litigation, 

eliminate ambiguity, and reduce 

burden. The action does not have 

preemptive effect or retroactive effect. 

Executive Order 13132 

This rule does not have Federalism 

implications as defined in Executive 

Order 13132. It will not have substantial 

direct effects on the States, on the 

relationship between the National 

Government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government, as specified in the 

Executive order. As such it does not 

warrant the preparation of a Federalism 

Assessment. 

Executive Order 13175 

This final rule does not have tribal 

implications under Executive Order 

13175, Consultation and Coordination 

with Indian Tribal Governments, 

because it does not have a substantial 

direct effect on one or more Indian 

tribes, on the relationship between the 

Federal Government and Indian tribes, 

or on the distribution of power and 

responsibilities between the Federal 

Government and Indian tribes. 

Congressional Review Act (5 U.S.C. 801– 

808) 

Subtitle E of the Small Business 

Regulatory Enforcement Fairness Act of 

1996, also known as the Congressional 

Review Act, 5 U.S.C. 801 et seq., 

generally provides that before a rule 

may take effect, the agency 

promulgating the rule must submit a 

rule report, which includes a copy of 

the rule, to each House of the Congress 

and to the Comptroller General of the 

United States. SBA will submit a report 

containing this rulemaking and other 

required information to the U.S. Senate, 

the U.S. House of Representatives, and 

the Comptroller General of the United 

States. This rulemaking has been 

reviewed and determined not to meet 

the criteria set forth in 5 U.S.C. 804(2). 

Paperwork Reduction Act 

In order to implement the Economic 

Aid Act, SBA determined that it was 

necessary to modify SBA Form 1244, 

Application for Section 504 Loans, 

which is currently approved under 

OMB Control Number 3245–0071, to 

conform the form to the revised 

requirements for debt refinancing loans. 

The changes did not add any new 

burdens for the respondents, rather, in 

some instances, the revisions will result 

in reduced burden as applicants and 

CDCs no longer have to submit certain 

information. 

(a) SBA will need to revise Form 1244 

page 9 to add ‘‘Other Secured Debt’’ as 

a line item in the sources and uses 

document. 

(b) SBA will need to revise Form 1244 

Exhibit instructions in standard 

operating procedure (SOP) 50 10 7.1 to 

require a 75% substantial benefit for 

refinancing with expansion to match the 

last form change for refinancing with 

expansion. This revision did not change 

the information the CDC is required to 

collect, only the form instructions. No 

further changes are necessary. 

Regulatory Flexibility Act, 5 U.S.C. 601– 

612 

When an agency issues a rulemaking, 

the Regulatory Flexibility Act (RFA), 5 

U.S.C. 601–612, requires the agency to 

‘‘prepare and make available for public 

comment an initial regulatory analysis’’ 

which will ‘‘describe the impact of the 

proposed rule on small entities.’’ The 

RFA requires such analysis only where 

notice and comment rulemaking are 

required. As discussed above, SBA has 

found good cause that notice and public 

procedure are impracticable, 

unnecessary, or contrary to the public 

interest. Accordingly, SBA is not 

required to conduct a regulatory 

flexibility analysis and is publishing 

this rule as a direct final rule without 

advance notice and public comment. 

Further, section 605 of the RFA allows 

an agency to certify a rule, in lieu of 

preparing an analysis, if the proposed 

rulemaking is not expected to have a 

significant economic impact on a 

substantial number of small entities. 

SBA is nonetheless providing the 

following abbreviated analysis. 

The changes in this direct final rule 

would, in part, be a drafting correction 

to 13 CFR 120.882. While there will be 

minor changes to SBA Form 1244, and 

the burden hours to the small business 

concern and the Certified Development 

Company will remain the same. There 

are no anticipated additional 

compliance costs. Furthermore, SBA 

does not anticipate that the additional 

changes to the Eligible Project costs for 

504 loans regulations would have a 

significant impact to a substantial 

number of small businesses. This is 

because only a small percentage of each 

year’s 504 loans involve debt 

refinancing without expansion. Each 

loan represents a unique small business 

borrower because these borrowers are 

only eligible to refinance their debt once 

in a fiscal year with the 504 Loan 

Program, and therefore do not have 

multiple 504 debt refinancing without 

expansion loans in any given year. 

Based on the average number of 504 

loans from FY 2021–2023, only 13% 

involved debt refinancing without 

expansion. Specifically, in FY2021, out 

of 9,676 loans, 693 loans or 7% were for 

debt refinancing without expansion. In 

FY 2022, this figure was 829 out of 

9,254 or 9% 504 loans, while in FY 

2023, 1,005 out of 4,451 or 23% of 504 

loans were for debt refinancing without 

expansion. While the percentage of the 

504 loan portfolio involving debt 

refinancing without expansion 

increased by 20% from FY 2021 to 2023, 

this increase was due in part to section 

1112 payments, and in part to a rapidly 

increasing interest rate environment. 

Because section 1112 payments have 

sunset, SBA believes that the 504 debt 

refinancing without expansion volume 

will return to the pre-section 1112 level 

of less than 10% of small entities. As 

such, SBA concludes that the rule will 

not impact a substantial number of 

small entities. 

While the economic implications of 

the direct final rule are small and the 

data do not reveal a significant 

economic impact on a substantial 

number of small entities, SBA 

anticipates a refinancing growth rate 

more in alignment with pre-pandemic 

levels, with some adjustment to the 

economic impact because the final rule 

will expand program eligibility. In its 

final rule issued October 12, 2023, SBA 

analyzed potential growth scenarios of 

up to 30% growth in the 504 loan 

program, and even using this impact 

model (actual growth has never 

exceeded 15% in any prior fiscal year) 

the total of 504 debt refinance without 

expansion projects as a percentage of 

either number of loans or dollar volume 

of loans is not estimated to exceed 16% 

of the overall portfolio. As this is a 

direct final rule update to correct 

drafting issues with the previous final 

rule, the data provided at that time is 

still relevant. When this percentage is 

applied to the estimated number of 


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79740 Federal Register / Vol. 89, No. 190 / Tuesday, October 1, 2024 / Rules and Regulations 

loans (small businesses impacted), this 

would result in less than 1,100 small 

businesses impacted. SBA estimates that 

the average monthly savings for small 

businesses that refinance their existing 

loans through the 504 loan program 

would be between $7,000 to $8,300 per 

month, with a total estimated savings 

over the life of the loan of between 

$202,000 to $227,000. SBA determined 

this estimate based on the historical 

average of a 504 debt refinancing 

without expansion loan averaging 

$1,000,000 for each small business 

applicant. SBA used the 504 June 2024 

interest rates to calculate both the 

monthly and total loan savings to each 

small business concern. The lower end 

of the $202,000 to $227.0000 range 

reflects the economic impact if a small 

business concern refinanced for 20 

years, while the higher end reflects the 

economic impact of a small business 

concern refinanced for 25 years. Small 

business concerns do not use 10 year 

504 loans for debt refinancing without 

expansion, as their goal is to lower their 

payments by not only taking advantage 

of the 504 loan program’s fixed interest 

rate, but also the longer 20 and 25-year 

loan terms available. 

List of Subjects in 13 CFR Part 120 

Business loan programs, Reporting 

and recordkeeping requirements, Small 

businesses. 

Accordingly, for the reasons stated in 

the preamble, SBA amends 13 CFR part 

120 as follows: 

PART 120—BUSINESS LOANS 

■ 1. The authority citation for 13 CFR 

part 120 continues to read as follows: 

Authority: 15 U.S.C. 634(b) (6), (b) (7), (b) 

(14), (h), and note, 636(a), (h) and (m), 650, 

687(f), 696(3) and (7), and 697(a) and (e); sec. 

521, Pub. L. 114–113, 129 Stat. 2242; sec. 

328(a), Pub. L. 116–260, 134 Stat. 1182. 

■ 2. Amend § 120.882 by: 

■ a. Revising paragraphs (e)(1) and (5), 

(g)(3)(iii), and (g)(6); 

■ b. Removing and reserving paragraph 

(g)(10); and 

■ c. In paragraph (g)(16), adding the 

definitions of ‘‘Eligible Business 

Expenses,’’ ‘‘Operating Expenses,’’ and 

‘‘Other Secured Debt’’ in alphabetical 

order. 

The revisions and additions read as 

follows: 

§ 120.882 Eligible Project costs for 504 

loans. 

* * * * * 

(e) * * * 

(1) Substantially all (75% or more) of 

the proceeds of the indebtedness were 

used to acquire land, including a 

building situated thereon, to construct a 

building thereon, or to purchase 

equipment. The assets acquired must be 

eligible for financing under the 504 loan 

program. If the acquisition, 

construction, or purchase of the asset 

was originally financed through a 

commercial loan that would have 

satisfied the ‘‘substantially all’’ 

requirement and that was subsequently 

refinanced one or more times, with the 

current commercial loan being the most 

recent refinancing, the current 

commercial loan will be deemed to 

satisfy this paragraph (e)(1). 

* * * * * 

(5) The financing will provide a 

substantial benefit to the borrower when 

prepayment penalties, financing fees, 

and other financing costs are accounted 

for. For purposes of this paragraph 

(e)(5), substantial benefit means that the 

portion of the new installment amount 

attributable to the debt being refinanced 

must be less than the existing 

installment amount(s). Prepayment 

penalties, financing fees, and other 

financing costs must also be added to 

the amount being refinanced in 

calculating the percentage reduction in 

the new installment payment. 

Exceptions to the reduction requirement 

may be approved by the Director, Office 

of Financial Assistance (D/FA) or 

designee for good cause. PCLP CDCs 

may not use their delegated authority to 

approve a loan requiring this exception. 

* * * * * 

(g) * * * 

(3) * * * 

(iii) The refinancing will provide a 

substantial benefit to the Borrower. For 

purposes of this paragraph (g)(3)(iii), 

substantial benefit means that the 

portion of the new installment amount 

attributable to the debt being refinanced 

must be less than the existing 

installment amount(s). Prepayment 

penalties (including subsidy 

recoupment fees), financing fees, and 

other financing costs must be added to 

the amount being refinanced in 

calculating the percentage reduction in 

the new installment payment, but the 

portion of the new installment amount 

attributable to Eligible Business 

Expenses (as described in paragraph 

(g)(16) of this section) is not included in 

this calculation. Exceptions to the 

reduction requirement may be approved 

by the D/FA or designee for good cause. 

PCLP CDCs may not use their delegated 

authority to approve a loan requiring the 

exception in this paragraph (g)(3)(iii). 

* * * * * 

(6)(i) The portion of the Refinancing 

Project provided by the 504 loan and the 

Third Party Loan may be no more than 

90% of the fair market value of the fixed 

assets that will serve as collateral. 

(ii) The Borrower’s application may 

include a request to finance Eligible 

Business Expenses as part of the 

Refinancing Project if the amount of 

cash funds that will be provided for the 

Refinancing Project exceeds the amount 

to be paid to the lender of the qualified 

debt. The Borrower’s application must 

include a specific description of the 

Eligible Business Expenses for which 

the financing is requested and an 

itemization of the amount of each 

expense. Any debt for Operating 

Expenses of the business that was 

incurred with a credit card or a business 

line of credit may be included if the 

credit card or business line of credit is 

issued in the name of the small business 

and the Applicant certifies that the debt 

being refinanced was incurred 

exclusively for business related 

purposes. Loan proceeds must not be 

used to refinance any personal 

expenses. Both the CDC and the 

Borrower must certify in the application 

that the funds will be used to cover 

Eligible Business Expenses. Borrower 

must, upon request, substantiate the use 

of the funds provided for business 

expenses through, for example, bank 

statements, invoices marked ‘‘paid,’’ 

cleared checks, or any other documents 

that demonstrate that a business 

obligation was satisfied with the funds 

provided. 

* * * * * 

(16) * * * 

Eligible Business Expenses are 

payments of the business for either 

Operating Expenses or Other Secured 

Debt. 

* * * * * 

Operating Expenses are expenses of 

the business that were incurred but not 

paid prior to the date of the 504 

application or that will become due for 

payment within 18 months after the 

date of application. Examples include 

salaries, rent, utilities, inventory, and 

other expenses of the business that are 

not capital expenditures. 

Other Secured Debt is debt incurred 

prior to the 504 loan application that 

has been secured by the same Eligible 

Fixed Assets securing the qualified debt 

and incurred for the benefit of the 

Borrower and/or Operating Company. 

Other Secured Debt does not include 

debt incurred for the purposes of capital 

expenditures, and any existing liens 

must be released or subordinated to the 


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Federal Register / Vol. 89, No. 190 / Tuesday, October 1, 2024 / Rules and Regulations 79741 

amount of the debt being refinanced by 

the 504 loan. 

* * * * * 

Isabella Casillas Guzman, 

Administrator. 

[FR Doc. 2024–22040 Filed 9–30–24; 8:45 am] 

BILLING CODE 8026–09–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 97 

[Docket No. 31566; Amdt. No. 4131] 

Standard Instrument Approach 

Procedures, and Takeoff Minimums 

and Obstacle Departure Procedures; 

Miscellaneous Amendments 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: This rule establishes, amends, 

suspends, or removes Standard 

Instrument Approach Procedures 

(SIAPS) and associated Takeoff 

Minimums and Obstacle Departure 

procedures (ODPs) for operations at 

certain airports. These regulatory 

actions are needed because of the 

adoption of new or revised criteria, or 

because of changes occurring in the 

National Airspace System, such as the 

commissioning of new navigational 

facilities, adding new obstacles, or 

changing air traffic requirements. These 

changes are designed to provide safe 

and efficient use of the navigable 

airspace and to promote safe flight 

operations under instrument flight rules 

at the affected airports. 

DATES: This rule is effective October 1, 

2024. The compliance date for each 

SIAP, associated Takeoff Minimums, 

and ODP is specified in the amendatory 

provisions. 

The incorporation by reference of 

certain publications listed in the 

regulations is approved by the Director 

of the Federal Register as of October 1, 

2024. 

ADDRESSES: Availability of matters 

incorporated by reference in the 

amendment is as follows: 

For Examination 

1. U.S. Department of Transportation, 

Docket Ops–M30. 1200 New Jersey 

Avenue SE, West Bldg., Ground Floor, 

Washington, DC 20590–0001. 

2. The FAA Air Traffic Organization 

Service Area in which the affected 

airport is located; 

3. The office of Aeronautical 

Information Services, 6500 South 

MacArthur Blvd., Oklahoma City, OK 

73169 or, 

4. The National Archives and Records 

Administration (NARA). For 

information on the availability of this 

material at NARA, visit 

www.archives.gov/federal-register/cfr/ 

ibr-locations or email fr.inspection@

nara.gov. 

Availability 

All SIAPs and Takeoff Minimums and 

ODPs are available online free of charge. 

Visit the National Flight Data Center at 

nfdc.faa.gov to register. Additionally, 

individual SIAP and Takeoff Minimums 

and ODP copies may be obtained from 

the FAA Air Traffic Organization 

Service Area in which the affected 

airport is located. 

FOR FURTHER INFORMATION CONTACT: 

Thomas J. Nichols, Standards Section 

Manager, Flight Procedures and 

Airspace Group, Flight Technologies 

and Procedures Division, Office of 

Safety Standards, Flight Standards 

Service, Aviation Safety, Federal 

Aviation Administration. Mailing 

Address: FAA Mike Monroney 

Aeronautical Center, Flight Procedures 

and Airspace Group, 6500 South 

MacArthur Blvd., STB Annex, Bldg 26, 

Room 217, Oklahoma City, OK 73099. 

Telephone (405) 954–1139. 

SUPPLEMENTARY INFORMATION: This rule 

amends 14 CFR part 97 by establishing, 

amending, suspending, or removes 

SIAPS, Takeoff Minimums and/or 

ODPS. The complete regulatory 

description of each SIAP and its 

associated Takeoff Minimums or ODP 

for an identified airport is listed on FAA 

form documents which are incorporated 

by reference in this amendment under 5 

U.S.C. 552(a), 1 CFR part 51, and 14 

CFR 97.20. The applicable FAA Forms 

are 8260–3, 8260–4, 8260–5, 8260–15A, 

8260–15B, when required by an entry 

on 8260–15A, and 8260–15C. 

The large number of SIAPs, Takeoff 

Minimums and ODPs, their complex 

nature, and the need for a special format 

make publication in the Federal 

Register expensive and impractical. 

Further, pilots do not use the regulatory 

text of the SIAPs, Takeoff Minimums or 

ODPs, but instead refer to their graphic 

depiction on charts printed by 

publishers or aeronautical materials. 

Thus, the advantages of incorporation 

by reference are realized and 

publication of the complete description 

of each SIAP, Takeoff Minimums and 

ODP listed on FAA form documents is 

unnecessary. This amendment provides 

the affected CFR sections and specifies 

the types of SIAPS, Takeoff Minimums 

and ODPs with their applicable effective 

dates. This amendment also identifies 

the airport and its location, the 

procedure, and the amendment number. 

Availability and Summary of Material 

Incorporated by Reference 

The material incorporated by 

reference is publicly available as listed 

in the ADDRESSES section. 

The material incorporated by 

reference describes SIAPS, Takeoff 

Minimums and/or ODPs as identified in 

the amendatory language for part 97 of 

this final rule. 

The Rule 

This amendment to 14 CFR part 97 is 

effective upon publication of each 

separate SIAP, Takeoff Minimums and 

ODP as amended in the transmittal. 

Some SIAP and Takeoff Minimums and 

textual ODP amendments may have 

been issued previously by the FAA in a 

Flight Data Center (FDC) Notice to Air 

Missions (NOTAM) as an emergency 

action of immediate flights safety 

relating directly to published 

aeronautical charts. 

The circumstances that created the 

need for some SIAP and Takeoff 

Minimums and ODP amendments may 

require making them effective in less 

than 30 days. For the remaining SIAPs 

and Takeoff Minimums and ODPs, an 

effective date at least 30 days after 

publication is provided. 

Further, the SIAPs and Takeoff 

Minimums and ODPs contained in this 

amendment are based on the criteria 

contained in the U.S. Standard for 

Terminal Instrument Procedures 

(TERPS). In developing these SIAPs and 

Takeoff Minimums and ODPs, the 

TERPS criteria were applied to the 

conditions existing or anticipated at the 

affected airports. Because of the close 

and immediate relationship between 

these SIAPs, Takeoff Minimums and 

ODPs, and safety in air commerce, I find 

that notice and public procedure under 

5 U.S.C. 553(b) are impracticable and 

contrary to the public interest and, 

where applicable, under 5 U.S.C. 553(d), 

good cause exists for making some 

SIAPs effective in less than 30 days. 

The FAA has determined that this 

regulation only involves an established 

body of technical regulations for which 

frequent and routine amendments are 

necessary to keep them operationally 

current. It, therefore—(1) is not a 

‘‘significant regulatory action’’ under 

Executive Order 12866; (2) is not a 

‘‘significant rule’’ under DOT 

Regulatory Policies and Procedures (44 

FR 11034; February 26, 1979); and (3) 

does not warrant preparation of a 

regulatory evaluation as the anticipated 

impact is so minimal. For the same 


khammond on DSKJM1Z7X2PROD with RULES