This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

84828 

Vol. 89, No. 206 

Thursday, October 24, 2024 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 927 

[Doc. No. AMS–SC–24–0045] 

Pears Grown in Oregon and 

Washington; Increased Assessment 

Rate for Fresh Pears 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This proposed rulemaking 

would implement a recommendation 

from the Fresh Pear Committee 

(Committee) to increase the assessment 

rate established for the 2024–2025 and 

subsequent fiscal periods from $0.468 to 

$0.516 per 44-pound standard box or 

equivalent for fresh ‘‘summer/fall’’ pears 

and fresh ‘‘winter’’ pears grown in 

Oregon and Washington. The proposed 

assessment rate would remain in effect 

indefinitely unless modified, 

suspended, or terminated. 

DATES: Comments must be received by 

November 25, 2024. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this proposed rulemaking. 

Comments can be sent to the Docket 

Clerk, Market Development Division, 

Specialty Crops Program, AMS, USDA, 

1400 Independence Avenue SW, STOP 

0237, Washington, DC 20250–0237. 

Comments can also be sent to the 

Docket Clerk electronically by Email: 

MarketingOrderComment@usda.gov or 

via the internet at: https://

www.regulations.gov. Comments should 

reference the document number and the 

date and page number of this issue of 

the Federal Register. Comments 

submitted in response to this proposed 

rulemaking will be included in the 

record, will be made available to the 

public, and can be viewed at: https://

www.regulations.gov. Please be advised 

that the identity of the individuals or 

entities submitting the comments will 

be made public on the internet at the 

address provided above. 

FOR FURTHER INFORMATION CONTACT: 

Joshua R. Wilde, Marketing Specialist, 

or Barry Broadbent, Chief, Northwest 

Region Branch, Market Development 

Division, Specialty Crops Program, 

AMS, USDA; Telephone: (503) 326– 

2724, or Email: Joshua.R.Wilde@

usda.gov or Barry.Broadbent@usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Richard Lower, 

Market Development Division, Specialty 

Crops Program, AMS, USDA, 1400 

Independence Avenue SW, STOP 0237, 

Washington, DC 20250–0237; 

Telephone: (202) 720–8085, or Email: 

Richard.Lower@usda.gov. 

SUPPLEMENTARY INFORMATION: This 

action, pursuant to 5 U.S.C. 553, 

proposes to amend regulations issued to 

carry out a marketing order as defined 

in 7 CFR 900.2(j). This proposed 

rulemaking is issued under Marketing 

Order No. 927, as amended (7 CFR part 

927), regulating the handling of pears 

grown in Oregon and Washington. Part 

927 (referred to as the ‘‘Order’’) is 

effective under the Agricultural 

Marketing Agreement Act of 1937, as 

amended (7 U.S.C. 601–674), hereinafter 

referred to as the ‘‘Act.’’ The Committee 

locally administers the Order and is 

comprised of growers and handlers of 

pears operating within the area of 

production, and a public member. 

The Agricultural Marketing Service 

(AMS) is issuing this proposed 

rulemaking in conformance with 

Executive Orders 12866, 13563, and 

14094. 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. Executive Order 14094 

supplements and reaffirms Executive 

Order 12866 and further directs 

agencies to solicit and consider input 

from a wide range of affected and 

interested parties through a variety of 

means. This proposed action falls 

within a category of regulatory actions 

that the Office of Management and 

Budget (OMB) exempted from Executive 

Order 12866 review. 

This proposed rulemaking has been 

reviewed under Executive Order 

13175—Consultation and Coordination 

with Indian Tribal Governments, which 

requires Federal agencies to consider 

whether their rulemaking actions would 

have Tribal implications. AMS has 

determined that this proposed 

rulemaking is unlikely to have 

substantial direct effects 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. 

This proposed rulemaking has been 

reviewed under Executive Order 

12988—Civil Justice Reform. Under the 

Order now in effect, Oregon and 

Washington pear handlers are subject to 

assessments. Funds to administer the 

Order are derived from such 

assessments. It is intended that the 

assessment rate would be applicable to 

all assessable Oregon and Washington 

fresh pears for the 2024–2025 fiscal 

period, and continue until amended, 

suspended, or terminated. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) of the Act, any 

handler subject to an order may file 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. Such 

handler is afforded the opportunity for 

a hearing on the petition. After the 

hearing, USDA would rule on the 

petition. The Act provides that the 

district court of the United States in any 

district in which the handler is an 

inhabitant, or has his or her principal 

place of business, has jurisdiction to 

review USDA’s ruling on the petition, 

provided an action is filed not later than 

20 days after the date of the entry of the 

ruling. 

This proposed rulemaking would 

increase the assessment rate for Oregon 

and Washington fresh ‘‘summer/fall’’ 

pears and ‘‘winter’’ pears handled under 

the Order from $0.468 per 44-pound 

standard box or equivalent, the rate that 

was established for the 2021–2022 and 

subsequent fiscal periods, to $0.516 per 


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Federal Register / Vol. 89, No. 206 / Thursday, October 24, 2024 / Proposed Rules 84829 

44-pound standard box or equivalent for 

the 2024–2025 and subsequent fiscal 

periods. 

Sections 927.40 and 927.41 of the 

Order authorize the Committee, with the 

approval of AMS, to formulate an 

annual budget of expenses and collect 

assessments from handlers to administer 

the program. The members of the 

Committee are familiar with the 

Committee’s needs and with the costs of 

goods and services in their local area 

and are able to formulate an appropriate 

budget and assessment rate. The 

assessment rate is formulated and 

discussed in a public meeting, and all 

directly affected persons have an 

opportunity to participate and provide 

input. 

For the 2021–2022 and subsequent 

fiscal periods, the Committee 

recommended, and AMS approved, an 

assessment rate of $0.468 per 44-pound 

standard box or equivalent of assessable 

fresh ‘‘summer/fall’’ pears and ‘‘winter’’ 

pears within the production area. That 

rate continues in effect from fiscal 

period to fiscal period until modified, 

suspended, or terminated by AMS upon 

recommendation and information 

submitted by the Committee or other 

information available to AMS. 

The Committee met on May 29, 2024, 

and recommended, with a vote of 10 in 

favor, with 1 opposed, and 1 abstention, 

2024–2025 fiscal period expenditures of 

$8,167,642 and an assessment rate of 

$0.516 per 44-pound standard box or 

equivalent of fresh ‘‘summer/fall’’ and 

‘‘winter’’ pears for the 2024–2025 fiscal 

period. In comparison, last year’s 

budgeted expenditures were $8,364,570. 

The member voting in opposition does 

not support any increase to the 

assessment rate. The member who 

abstained did not provide a justification. 

The proposed assessment rate of $0.516 

per 44-pound standard box or 

equivalent is $0.048 higher than the rate 

currently in effect. The Committee 

recommended increasing the assessment 

rate due to a smaller estimated 2024 

crop and to provide adequate income to 

cover the Committee’s budgeted 

expenses for the 2024–2025 fiscal 

period without needing to draw from 

the Committee’s financial reserves. The 

Committee projects handler receipts of 

16,000,000 44-pound standard boxes or 

equivalent of assessable fresh pears for 

the 2024–2025 fiscal period, down from 

the approximately 18,000,000 44-pound 

standard boxes or equivalent that the 

Committee initially projected for the 

2023–2024 fiscal period. 

The major expenditures 

recommended by the Committee for the 

2024–2025 fiscal period include 

$6,928,000 for promotion and paid 

advertising, $621,148 for production 

research and market development, 

$435,321 for contracted administration 

and Committee expenses, and $183,173 

for industry development. For 

comparison, budgeted expenses for 

these items during the 2023–2024 fiscal 

period were $6,930,000, $843,373, 

$415,238, and $175,959, respectively. 

The Committee derived the 

recommended assessment rate by 

considering anticipated expenses, the 

estimated volume of assessable fresh 

pears, and the amount of funds available 

in the authorized reserve. The expected 

16,000,000 44-pound standard boxes or 

equivalent of assessable fresh ‘‘summer/ 

fall’’ and ‘‘winter’’ pears would generate 

$8,256,000 in assessment revenue at the 

proposed assessment rate (16,000,000 

44-pound standard boxes or equivalent 

multiplied by the $0.516 assessment 

rate). The income generated from 

handler assessments, along with $3,000 

expected in interest income, should be 

sufficient to meet the Committee’s 

estimated program expenditures of 

$8,167,642 without needing to draw 

from the Committee’s financial reserves. 

Funds available in the financial reserve 

(currently about $716,365) would be 

kept within the maximum permitted by 

the Order (approximately one fiscal 

period’s expenses as authorized in 

§ 927.42). 

The proposed assessment rate would 

continue in effect indefinitely unless 

modified, suspended, or terminated by 

AMS upon recommendation and 

information submitted by the 

Committee or other available 

information. Although this assessment 

rate would be in effect for an indefinite 

period, the Committee will continue to 

meet prior to or during each fiscal 

period to recommend a budget of 

expenses and consider 

recommendations for modification of 

the assessment rate. The dates and times 

of Committee meetings are available 

from the Committee or AMS. Committee 

meetings are open to the public and 

interested persons may express their 

views at these meetings. AMS would 

evaluate Committee recommendations 

and other available information to 

determine whether modification of the 

assessment rate is needed. Further 

rulemaking would be undertaken as 

necessary. The Committee’s 2024–2025 

fiscal period budget, and those for 

subsequent fiscal periods, will be 

reviewed and, as appropriate, approved 

by AMS. 

Initial Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) (5 

U.S.C. 601–612), AMS has considered 

the economic impact of this proposed 

rulemaking on small entities. 

Accordingly, AMS has prepared this 

initial regulatory flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

businesses subject to such actions in 

order that small businesses will not be 

unduly or disproportionately burdened. 

Marketing orders issued pursuant to the 

Act, and the rules issued thereunder, are 

unique in that they are brought about 

through group action of essentially 

small entities acting on their own 

behalf. 

There are approximately 27 handlers 

subject to regulation under the Order 

and approximately 700 growers of fresh 

pears in the production area. At the time 

this analysis was prepared, the Small 

Business Administration (SBA) defined 

small agricultural service firms as those 

having annual receipts of less than 

$34,000,000 (North American Industry 

Classification System (NAICS) code 

115114, Postharvest Crop Activities), 

and small agricultural producers of 

fresh pears as those having annual 

receipts of less than $3,500,000 (NAICS 

code 111339, Other Noncitrus Fruit 

Farming) (13 CFR 121.201). 

Data from USDA’s National 

Agricultural Statistics Service (NASS), 

indicate a three-year average grower 

price for Oregon and Washington fresh 

pears of approximately $11.92 per 44- 

pound standard box or equivalent for 

the most recent seasons for which data 

is available (2020–2021 through 2022– 

2023 fiscal periods). Committee records 

indicate average annual fresh pear 

shipments of 15,246,095 44-pound 

standard boxes or equivalent over the 

same period. Based on these data, the 

average total annual value of assessable 

fresh pears over this period would have 

been approximately $181,733,452 

(15,246,095 44-pound standard boxes or 

equivalent multiplied by $11.92 per 

box). Dividing that figure by the number 

of fresh pear growers (700) yields an 

average annual crop value per grower of 

approximately $259,619. This figure is 

well below the SBA small agricultural 

producer threshold of $3,500,000 in 

annual sales. Assuming a normal 

distribution, this provides evidence that 

a large majority of pear growers would 

likely be considered small agricultural 

producers according to the SBA 

definition. 

According to USDA Market News 

data, the most recent shipping point 

price for fresh pears out of the Yakima 

Valley and Wenatchee District ranged 

between $36.25 and $45.05 per 44- 

pound standard box or equivalent. 

Using this data to assume an average 

shipping point price of $40.65 for all 


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84830 Federal Register / Vol. 89, No. 206 / Thursday, October 24, 2024 / Proposed Rules 

Oregon and Washington fresh pears 

yields a total crop value of 

approximately $619,753,762 (15,246,095 

44-pound standard boxes multiplied by 

$40.65 per box). Dividing this figure by 

27 regulated handlers yields estimated 

average annual handler receipts of 

approximately $22,953,843. Therefore, 

according to the above data, the majority 

of growers and handlers of Oregon and 

Washington fresh pears may be 

classified as small entities. 

As noted above, the average price 

received by growers in the previous 

three crop years was $11.92 per 44- 

pound standard box or equivalent of 

assessable fresh ‘‘summer/fall’’ pears 

and ‘‘winter’’ pears. Given the 

Committee-estimated production of 

16,000,000 44-pound standard boxes or 

equivalent of assessable fresh pears for 

the 2024–2025 crop year, total grower 

revenue is estimated to be $190,720,000. 

Total assessment revenue is expected to 

be $8,256,000 (16,000,000 boxes 

multiplied by $0.516 per box). 

Therefore, estimated assessment 

revenue as a percentage of total grower 

revenue would be about 4.3 percent 

($8,256,000 divided by $190,720,000 

multiplied by 100). 

This proposal would increase the 

assessment rate collected from handlers 

for the 2024–2025 and subsequent fiscal 

periods from $0.468 to $0.516 per 44- 

pound standard box or equivalent of 

fresh ‘‘summer/fall’’ and ‘‘winter’’ pears. 

The Committee recommended 2024– 

2025 fiscal period expenditures of 

$8,167,642 and an assessment rate of 

$0.516 per 44-pound standard box or 

equivalent of assessable fresh ‘‘summer/ 

fall’’ and ‘‘winter’’ pears handled. The 

proposed assessment rate of $0.516 is 

$0.048 higher than the rate currently in 

effect. The Committee expects the 

industry to handle 16,000,000 44-pound 

standard boxes or equivalent of 

assessable fresh ‘‘summer/fall’’ pears 

and ‘‘winter’’ pears during the 2024– 

2025 fiscal period. Thus, the $0.516 per 

44-pound standard box or equivalent 

assessment rate should provide 

$8,256,000 in assessment income 

(16,000,000 44-pound standard boxes or 

equivalent multiplied by the $0.516 

assessment rate). The income generated 

from handler assessments, along with 

$3,000 expected in interest income, 

should be sufficient to meet budgeted 

expenditures for the 2024–2025 fiscal 

period. 

The major expenditures 

recommended by the Committee for the 

2024–2025 fiscal period include 

$6,928,000 for promotion and paid 

advertising, $621,148 for production 

research and market development, 

$435,321 for contracted administration 

and Committee expenses, and $183,173 

for industry development. For 

comparison, budgeted expenses for 

these items during the 2023–2024 fiscal 

period were $6,930,000, $843,373, 

$415,238, and $175,959, respectively. 

The Committee recommended 

increasing the assessment rate to 

provide adequate income to cover the 

Committee’s budgeted expenses for the 

2024–2025 fiscal period without 

needing to draw from the Committee’s 

financial reserves. The Committee 

projects handler receipts of 16,000,000 

44-pound standard boxes or equivalent 

of assessable fresh pears for the 2024– 

2025 fiscal period, down from the 

estimated 18,000,000 44-pound 

standard boxes or equivalent that the 

Committee initially projected for the 

2023–2024 fiscal period. 

Prior to arriving at this budget and 

assessment rate recommendation, the 

Committee discussed various 

alternatives, including maintaining the 

current assessment rate of $0.468 per 

44-pound standard box or equivalent of 

assessable fresh pears and increasing the 

assessment rate by a different amount. 

However, the Committee determined 

that the recommended assessment rate 

would adequately fund budgeted 

expenses for the 2024–2025 fiscal 

period without needing to draw from 

the Committee’s financial reserves. 

Consequently, those alternatives were 

rejected. 

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 growers. 

However, these costs are expected to be 

offset by the benefits derived by the 

operation of the Order. 

The Committee’s meetings are widely 

publicized throughout the Oregon and 

Washington pear industry and all 

interested persons are invited to attend 

the meetings and participate in 

Committee deliberations on all issues. 

Like all Committee meetings, the May 

29, 2024, 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 

rulemaking, 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. 0581–0189, Fruit 

Crops. No changes in those 

requirements would be necessary as a 

result of this proposed rulemaking. 

Should any changes become necessary, 

they would be submitted to OMB for 

approval. 

This proposed rulemaking would not 

impose any additional reporting or 

recordkeeping requirements on either 

small or large Oregon and Washington 

pear 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 rulemaking. 

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/smallbusinesses. Any questions about the 

compliance guide should be sent to 

Richard Lower at the previously 

mentioned address in the FOR FURTHER

INFORMATION CONTACT section. 

After consideration of all relevant 

material presented, including the 

information and recommendations 

submitted by the Committee and other 

available information, AMS has 

determined that this proposed 

rulemaking is consistent with and 

would effectuate the purposes of the 

Act. 

A 30-day comment period is provided 

to allow interested persons to respond 

to this proposed rulemaking. All written 

comments timely received will be 

considered before a final determination 

is made on this rulemaking. 

List of Subjects in 7 CFR Part 927 

Marketing agreements, Pears, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, the Agricultural Marketing 

Service proposes to amend 7 CFR part 

927 as follows: 

PART 927—PEARS GROWN IN 

OREGON AND WASHINGTON 

■ 1. The authority citation for part 927 

continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Amend § 927.236 by revising the 

introductory text and paragraphs (a) and 

(b) to read as follows: 


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Federal Register / Vol. 89, No. 206 / Thursday, October 24, 2024 / Proposed Rules 84831 

§ 927.236 Fresh pear assessment rate. 

On and after July 1, 2024, the 

following base rates of assessment for 

fresh pears are established for the Fresh 

Pear Committee: 

(a) $0.516 per 44-pound net weight 

standard box or container equivalent for 

any or all varieties or subvarieties of 

fresh pears classified as ‘‘summer/fall’’; 

(b) $0.516 per 44-pound net weight 

standard box or container equivalent for 

any or all varieties or subvarieties of 

fresh pears classified as ‘‘winter’’; and 

* * * * * 

Erin Morris, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2024–24773 Filed 10–23–24; 8:45 am] 

BILLING CODE P 

SMALL BUSINESS ADMINISTRATION 

13 CFR Part 120 

RIN 3245–AI21 

ALP Express Pilot to Permanent Status 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The U.S. Small Business 

Administration (‘‘SBA’’ or Agency) is 

proposing to make permanent the 

increased delegated authorities made 

available under the ALP Express Pilot 

for Certified Development Companies 

(‘‘CDCs’’) approved for the Accredited 

Lenders Program (‘‘ALP’’). These 

increased delegated authorities for 504 

loans of $500,000 or less (‘‘ALP Express 

authority’’) were authorized under the 

Economic Aid to Hard-hit Small 

Businesses, Nonprofits, and Venues Act 

(Economic Aid Act or EAA). When 

these increased delegated authorities 

expired on September 30, 2023, SBA 

implemented the ALP Express Pilot in 

October 2023 to allow SBA to further 

evaluate the improved customer service 

levels for SBA Borrowers and the use of 

these increased delegated authorities by 

ALP CDCs. The ALP Express Pilot 

expires on September 30, 2025. SBA is 

proposing rules to make the pilot 

permanent and is seeking public 

comment to help the Agency identify 

which parts of the pilot have been 

successful and which may need further 

modification. SBA notified Congress of 

the pilot prior to OMB approval and 

notified Congress of the intent to 

convert the pilot to become a permanent 

part of the 504 Loan Program in 

September 2024. 

DATES: SBA must receive comments on 

this proposed rule on or before 

November 25, 2024. 

ADDRESSES: You may submit comments, 

identified by SBA docket number 

Docket No. SBA–2023–0012, by any of 

the following methods: 

• Federal eRulemaking Portal: 

https://www.regulations.gov/. Follow 

the instructions for submitting 

comments. 

• Mail: Gregorius Suryadi, Office of 

Financial Assistance, U.S. Small 

Business Administration, 409 Third 

Street SW, Suite 8300, Washington, DC 

20416. 

• Hand Delivery/Courier: Gregorius 

Suryadi, Office of Financial Assistance, 

U.S. Small Business Administration, 

409 Third Street SW, Washington, DC 

20416. 

SBA will post all comments on 

https://www.regulations.gov/. 

If you wish to submit confidential 

business information (‘‘CBI’’) as defined 

in the User Notice at https://

www.regulations.gov/, please submit the 

information to Gregorius Suryadi, Office 

of Financial Assistance, U.S. Small 

Business Administration, 409 Third 

Street SW, Suite 8300, Washington, DC 

20416; or send an 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 as to whether it will 

publish the information. 

FOR FURTHER INFORMATION CONTACT: 

Gregorius Suryadi, Office of Financial 

Assistance, U.S. Small Business 

Administration at (202) 205–6806 or 

gregorius.suryadi@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 TTYBased Telecommunications Relay 

Service teletype service at 711. 

SUPPLEMENTARY INFORMATION: 

1. Background Information 

The 504 Loan Program is an SBA 

financing program authorized under 

title V of the Small Business Investment 

Act of 1958, as amended, 15 U.S.C. 695 

et seq (‘‘Small Business Investment 

Act’’). 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, and 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 SBA 

guaranteed debenture); and a 

contribution from the Borrower of at 

least ten percent equity. 

There are three types of CDCs that 

participate in the 504 Loan Program. 

This document relates to the temporary 

increased delegated authority that was 

granted, in accordance with section 

328(b) of the Economic Aid Act 

(‘‘EAA’’), to CDCs that are approved by 

SBA to participate in the Accredited 

Lenders Program (hereafter ‘‘ALP 

CDCs’’), which is authorized under 

section 507(a) of the Small Business 

Investment Act. Under section 507(c) of 

the Small Business Investment Act, SBA 

is authorized to develop an expedited 

procedure for processing a loan 

application or servicing action 

submitted by ALP CDCs. [15 U.S.C. 

697d.] 

Prior to the Economic Aid Act, ALP 

CDCs were required to obtain SBA’s 

approval on both the loan’s eligibility 

and creditworthiness determinations. In 

addition, ALP CDCs only had delegated 

authority to make certain ‘‘No Adverse 

Change’’ certifications prior to loan 

closing without SBA’s review and 

approval and were only authorized to 

close 504 loans under the expedited 

loan closing procedures applicable to a 

Priority CDC. Further, ALP CDCs were 

required to obtain SBA’s approval for 

most servicing actions. Section 328(b) of 

the EAA temporarily provided ALP 

CDCs increased delegated authority to 

‘‘approve, authorize, close and service 

covered loans,’’ for loans of not more 

than $500,000 and that are not made to 

a borrower in an industry with a high 

rate of default as defined by SBA 

(hereafter referred to as ‘‘ALP Express 

Loans’’). SBA implemented these 

increased delegated authorities with the 

publication of an interim final rule on 

June 27, 2022. (87 FR 37979). Pursuant 

to the EAA, these delegated authorities 

were to expire on September 30, 2023. 

In order to evaluate the use of these 

increased delegated authorities by ALP 

CDCs and to identify opportunities for 

further modification, SBA developed 

the ALP Express Pilot program to 

provide these increased delegated 

authorities through September 30, 2025 


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