Federal Register / Vol. 62, No. 49 / Thursday, March 13, 1997 / Rules and Regulations 11759

ACTION: Correcting amendment.

SUMMARY: This document contains

corrections to a final regulation which

was published July 10, 1996 (61 FR

36277). The regulation provides for

maintenance of a bond equivalent in

lieu of a required surety bond by

packers, market agencies or dealers.

DATES: March 13, 1997.

FOR FURTHER INFORMATION CONTACT:

Sharon Vassiliades, GIPSA, USDA, 1400

Independence Avenue, SW,

Washington, D.C. 20250, (202) 720–

1738.

SUPPLEMENTARY INFORMATION:

Background

The final regulation that is the subject

of this correction revised the

introductory paragraph of § 201.27(b)

applicable to packers, market agencies,

and dealers subject to the Packers and

Stockyards Act (7 U.S.C. 181, et seq.)

and became effective on August 9, 1996.

Need for Correction

As published, the final regulation

inadvertently omitted language which

was set forth in the proposed

rulemaking published August 21, 1995

(60 FR 43411). Language in the final

regulation may be confusing and is in

need of clarification.

List of Subjects in 9 CFR Part 201

Bonding, Dealer, Market agency,

Packer, Registration.

PART 201—REGULATIONS UNDER

THE PACKERS AND STOCKYARDS

ACT

Accordingly, 9 CFR 201.27(b) is

corrected by making the following

correcting amendment:

1. The authority citation for Part 201

continues to read as follows:

Authority: 7 U.S.C. 204, 228; 7 CFR 2.17(e),

2.56.

2. In § 201.27, paragraph (b) is revised

to read as follows:

§ 201.27 Underwriter: equivalent in lieu of

bonds; standard forms.

* * * * *

(b) Any packer, market agency, or

dealer required to maintain a surety

bond under these regulations may elect

to maintain, in whole or partial

substitution for such surety bond, a

bond equivalent as provided below. The

total amount of any such surety bond,

equivalent, or combination thereof,

must be the total amount of the surety

bond otherwise required under these

regulations. Any such bond equivalent

must be in the form of:

(1) * * *

* * * * *

Done at Washington, D.C. this 7th day of

March 1997.

James R. Baker,

Administrator, Grain Inspection, Packers and

Stockyards Administration.

[FR Doc. 97–6263 Filed 3–12–97; 8:45 am]

BILLING CODE 3410–EN–P

SMALL BUSINESS ADMINISTRATION

13 CFR Part 107

Small Business Investment Companies

AGENCY: Small Business Administration.

ACTION: Final rule.

SUMMARY: The Small Business

Administration (SBA) is amending Part

107 Section 710 and Part 107 Section 50

of its Small Business Investment

Companies (SBIC) regulations by

deleting the term ‘‘Smaller Business’’

and replacing it with the statutory term

‘‘Smaller Enterprise.’’ These revisions to

SBA’s regulations are in accordance

with Section 208 of the Small Business

Programs Improvement Act of 1996

(SBPIAct).

EFFECTIVE DATE: March 13, 1997.

FOR FURTHER INFORMATION CONTACT: Gary

M. Jackson, Assistant Administrator for

Size Standards, 409 3rd Street, SW.,

Washington, DC 20416, (202)205–6618.

SUPPLEMENTARY INFORMATION: Division D

of the Omnibus Consolidated

Appropriations Act for Fiscal Year 1997

(Public Law 104–208) is the Small

Business Programs Improvement Act of

1996 (SBPIAct), which amended the

Small Business Investment Act of 1958

(SBIAct). Title II, Section 208 of the

SBPIAct adds Section 103(12) to the

SBIAct where it includes and defines

the term ‘‘smaller enterprise.’’ A

‘‘smaller enterprise’’ is a small business,

including its affiliates, with net

financial worth no greater than $6

million and average net income of no

more than $2 million, or that meets the

size standards established by SBA in 13

CFR Part 121.

Current regulations at 13 CFR

§ 107.710 require SBICs to make a

certain proportion of their total

financings into ‘‘smaller businesses,’’

which are defined in § 107.710(a).

Section 208 of the SBPIAct, however,

established the same size criteria for an

entity named ‘‘smaller enterprise’’ that

SBA has in its regulations for a ‘‘smaller

business.’’ Therefore, SBA is changing

the terminology of its regulations to

require SBICs to finance smaller

enterprises to be consistent with this

legislation.

SBA is issuing a final rule because

this constitutes only a change of

terminology with no substantive effect

upon current regulations. That is, SBA

is merely adopting no more than a

statutory change to a term. SBA is not

modifying or otherwise changing its

regulations in any way other than to the

extent that the statute directs the

Agency to do so.

Compliance With Executive Orders

12612, 12778, and 12866, the

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

et seq.), and the Paperwork Reduction

Act (44 U.S.C. Ch. 5)

Under the Regulatory Flexibility Act

(RFA), SBA is not required to analyze

the impact on small businesses of this

revision of its SBIC Program regulations

because: the RFA applies to federal

rules that require public comment; and

this is a final rule, incorporating into the

Regulations the Congressionally

mandated definition of a smaller

enterprise. In any event, SBA does not

believe this rule has a significant impact

on small businesses, since the size

applicable to a ‘‘smaller enterprise’’

remains unchanged from that for a

‘‘smaller business’’ which definition it

replaces, and does not affect other SBA

programs.

For purposes of the Paperwork

Reduction Act, 44 U.S.C. Ch. 35, SBA

certifies that this final rule contains no

new reporting or recordkeeping

requirements. For purposes of Executive

Order 12612, SBA certifies that this rule

does not have federalism implications

warranting the preparation of a

Federalism Assessment. For purposes of

Executive Order 12778, SBA certifies

that this rule is drafted, to the extent

practicable, in accordance with the

standards set forth in Section 2 of that

Order.

List of Subjects in 13 CFR Part 107

Investment companies, Loan

Programs—business, reporting and

recordkeeping requirements, Small

businesses.

PART 107—[AMENDED]

1. The authority citation for 13 CFR

part 107 is revised to read as follows:

Authority: 15 U.S.C. 662 (12).

2. Section 107.50 is amended by

removing the definition for ‘‘Smaller

Business’’ and by adding a new

definition in alphabetical order to read

as follows:

§ 107.50 Definition of terms.

* * * * *
11760 Federal Register / Vol. 62, No. 49 / Thursday, March 13, 1997 / Rules and Regulations

Smaller Enterprise has the meaning

set forth in § 107.710.

* * * * *

3. Section 107.710 is revised to read

as follows:

§ 107.710 Requirement to Finance Smaller

Enterprises.

Your Portfolio must include

Financings to Smaller Enterprises.

(a) Definition of Smaller Enterprise. A

Smaller Enterprise means any small

business concern that:

(1) Together with its Affiliates has a

net worth of not more than $6.0 million

and average net income after Federal

income taxes (excluding any carry-over

losses) for the preceding two years no

greater than $2.0 million; or

(2) Both together with its Affiliates,

and by itself, meets the size standard of

§ 121.201 of this chapter at the time of

Financing for the industry in which it

is then primarily engaged.

(b) Phase 1 of Smaller Enterprise

Financing requirement. At the close of

your first complete fiscal year beginning

on or after April 25, 1994, at least 10

percent of the total dollar amount of the

Financings you extended since April 25,

1994, must have been in Smaller

Enterprises.

(c) Phase 2 of Smaller Enterprise

Financing requirement. At the close of

each of your next fiscal years, at least 20

percent of the total dollar amount of the

Financings you extended since April 25,

1994, must have been invested in

Smaller Enterprises.

(d) Financing a change of ownership

which results in the creation of a

Smaller Enterprises. The Financing of a

change of ownership under § 107.750

which results in the creation of a

Smaller Enterprise qualifies as a Smaller

Enterprise Financing..

(e) Non-compliance with this section.

If you have not reached the required

percentage of Smaller Enterprise

Financings at the end of any fiscal year,

then you must be in compliance by the

end of the following fiscal year.

Aida Alvarez,

Administrator.

[FR Doc. 97–5740 Filed 3–12–97; 8:45 am]

BILLING CODE 8025–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 97–NM–23–AD; Amendment

39–9961; AD 97–06–04]

RIN 2120–AA64

Airworthiness Directives; Boeing

Model 757–200 Series Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule; request for

comments.

SUMMARY: This amendment adopts a

new airworthiness directive (AD) that is

applicable to certain Boeing Model 757–

200 series airplanes. This action

requires inspections to detect cracking

on the free edge of the tang, if necessary,

and of the fastener holes in the lower

spar chord; and various follow-on

actions. This action also provides for

optional terminating action for the

requirements of this AD. This

amendment is prompted by a report of

fatigue cracking in the lower spar chord

of two Model 757 series airplanes. The

actions specified in this AD are

intended to detect and correct such

fatigue cracking, which could result in

reduced structural integrity of the

engine strut.

DATES: Effective March 28, 1997.

The incorporation by reference of

certain publications listed in the

regulations is approved by the Director

of the Federal Register as of March 28,

1997.

Comments for inclusion in the Rules

Docket must be received on or before

May 12, 1997.

ADDRESSES: Submit comments in

triplicate to the Federal Aviation

Administration (FAA), Transport

Airplane Directorate, ANM–103,

Attention: Rules Docket No. 97–NM–

23–AD, 1601 Lind Avenue, SW.,

Renton, Washington 98055–4056.

The service information referenced in

this AD may be obtained from Boeing

Commercial Airplane Group, P.O. Box

3707, Seattle, Washington 98124–2207.

This information may be examined at

the FAA, Transport Airplane

Directorate, 1601 Lind Avenue, SW.,

Renton, Washington; or at the Office of

the Federal Register, 800 North Capitol

Street, NW., suite 700, Washington, DC.

FOR FURTHER INFORMATION CONTACT:

Todd Martin, Aerospace Engineer,

Airframe Branch, ANM–120S, FAA,

Seattle Aircraft Certification Office,

1601 Lind Avenue, SW., Renton,

Washington; telephone (206) 227–2781;

fax (206) 227–1181.

SUPPLEMENTARY INFORMATION: The FAA

received a report indicating that fatigue

cracking was found in the lower spar

chord on two Boeing Model 757–200

series airplanes powered by Rolls Royce

engines. On one of these airplanes, the

tang of the chord was cracked

completely through. The crack had

propagated approximately five inches

into the vertical flange adjacent to the

side skins. On the other airplane, a 0.3-

inch crack was found in the tang of the

chord. Such fatigue cracking, if not

detected and corrected in a timely

manner, could result in reduced

structural integrity of the engine strut.

An initial analysis conducted by

Boeing revealed that the stiffening

straps, which were installed on the strut

midchords of twelve airplanes during

production, were the primary cause of

the cracks. Consequently, to prevent

cracks in the lower spar chords, the

stiffening straps were removed from the

midchords in accordance with Boeing

Service Bulletin 757–54–0028.

However, results of subsequent analysis

related to the structural reassessment of

the strut structure of the Model 757

revealed that cracks can continue to

occur after removal of the stiffening

straps. The analysis also revealed that

cracks can occur in the same area on

struts that are made without stiffening

straps.

Explanation of Relevant Service

Information

The FAA has reviewed and approved

Boeing Service Bulletin 757–54–0031,

Revision 2, dated December 19, 1996.

The service bulletin describes

procedures for certain inspections and

follow-on actions, which include the

following:

1. Tang Inspection: The service

bulletin describes procedures for an

eddy current inspection to detect

cracking on the free edge of the tang. For

airplanes on which cracking within

certain limits is found, the service

bulletin describes procedures for

removal of the midchord channels, stopdrilling of the cracking, and installation

of a repair. The service bulletin

recommends that if any cracking is

found that is outside specified limits,

the lower spar chord must be replaced

with a new or serviceable chord;

however, the service bulletin does not

provide procedures for such

replacement.

2. Initial Bolt Hole Inspection: The

service bulletin also describes

procedures for an eddy current

inspection (bolt hole inspection) to

detect cracking of the two fastener holes

in the lower spar chord. For airplanes

on which no cracking is found during