Federal Register / Vol. 86, No. 167 / Wednesday, September 1, 2021 / Notices 49087 

If you are interested in more information 

on the proposal, or want to provide feedback 

on additional questions, click here. 

Comments should be received on or before 

October 1, 2021. 

Thank you! 

[FR Doc. 2021–18901 Filed 8–31–21; 8:45 am] 

BILLING CODE P 

SMALL BUSINESS ADMINISTRATION 

Change to SBA Secondary Market 

Program 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice of change to secondary 

market program. 

SUMMARY: The purpose of this Notice is 

to inform the public that the Small 

Business Administration (SBA) is 

making a change to its Secondary 

Market Loan Pooling Program. SBA is 

increasing the minimum maturity ratio 

for both SBA Standard Pools and 

Weighted-Average Coupon (WAC) Pools 

by 400 basis points, to 93.0%. The 

change described in this Notice is being 

made to cover the estimated cost of the 

timely payment guaranty for newly 

formed SBA 7(a) loan pools. This 

change will be incorporated, as needed, 

into the SBA Secondary Market Program 

Guide and all other appropriate SBA 

Secondary Market documents. 

DATES: This change will apply to SBA 

7(a) loan pools with an issue date on or 

after October 1, 2021. 

ADDRESSES: Address comments 

concerning this Notice to John M. Wade, 

Chief Secondary Market Division, U.S. 

Small Business Administration, 409 3rd 

Street SW, Washington, DC 20416; or 

john.wade@sba.gov. 

FOR FURTHER INFORMATION CONTACT: John 

M. Wade, Chief, Secondary Market 

Division at 202–205–3647; or 

john.wade@sba.gov. 

SUPPLEMENTARY INFORMATION: The 

Secondary Market Improvements Act of 

1984, 15 U.S.C. 634(f) through (h), 

authorized SBA to guarantee the timely 

payment of principal and interest on 

Pool Certificates. A Pool Certificate 

represents a fractional undivided 

interest in a ‘‘Pool,’’ which is an 

aggregation of SBA guaranteed portions 

of loans made by SBA Lenders under 

section 7(a) of the Small Business Act, 

15 U.S.C. 636(a). In order to support the 

timely payment guaranty requirement, 

SBA established the Master Reserve 

Fund (MRF), which serves as a 

mechanism to cover the cost of SBA’s 

timely payment guaranty. Borrower 

payments on the guaranteed portions of 

pooled loans, as well as SBA guaranty 

payments on defaulted pooled loans, are 

deposited into the MRF. Funds are held 

in the MRF until distributions are made 

to investors (Registered Holders) of Pool 

Certificates. The interest earned on the 

borrower payments and the SBA 

guaranty payments deposited into the 

MRF supports the timely payments 

made to Registered Holders. 

From time to time, SBA provides 

guidance to SBA Pool Assemblers on 

the required loan and pool 

characteristics necessary to form a Pool. 

These characteristics include, among 

other things, the minimum number of 

guaranteed portions of loans required to 

form a Pool, the allowable difference 

between the highest and lowest gross 

and net note rates of the guaranteed 

portions of loans in a Pool, and the 

minimum maturity ratio of the 

guaranteed portions of loans in a Pool. 

The minimum maturity ratio is equal to 

the ratio of the shortest and the longest 

remaining term to maturity of the 

guaranteed portions of loans in a Pool. 

Based on SBA’s expectations as to the 

performance of future Pools, SBA has 

determined that for pools formed on or 

after October 1, 2021, SBA Pool 

Assemblers may decrease the difference 

between the shortest and the longest 

remaining term of the guaranteed 

portions of loans in a Pool by 4 

percentage points (i.e., increasing the 

minimum maturity ratio by 400 basis 

points). SBA does not expect a 4 

percentage point increase in the 

minimum maturity ratio to have an 

adverse impact on either the program or 

the participants in the program. 

Therefore, effective October 1, 2021, all 

guaranteed portions of loans in 

Standard Pools and WAC Pools 

presented for settlement with SBA’s 

Fiscal Transfer Agent will be required to 

have a minimum maturity ratio of at 

least 93.0%. SBA is making this change 

pursuant to Section 5(g)(2) of the Small 

Business Act, 15 U.S.C. 634(g)(2). 

SBA will continue to monitor loan 

and pool characteristics and will 

provide notification of additional 

changes as necessary. It is important to 

note that there is no change to SBA’s 

obligation to honor its guaranty of the 

amounts owed to Registered Holders of 

Pool Certificates and that such guaranty 

continues to be backed by the full faith 

and credit of the United States. 

This program change will be 

incorporated as necessary into SBA’s 

Secondary Market Guide and all other 

appropriate SBA Secondary Market 

documents. As indicated above, this 

change will be effective for Standard 

Pools and WAC Pools with an issue date 

on or after October 1, 2021. 

John M. Wade, 

Chief, Secondary Market Division, Office of 

Capital Access. 

[FR Doc. 2021–18858 Filed 8–31–21; 8:45 am] 

BILLING CODE P 

SMALL BUSINESS ADMINISTRATION 

SBIC Licensing and Examination Fees 

Inflation Adjustment 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice of SBIC fee increases. 

SUMMARY: The U.S. Small Business 

Administration (SBA) is providing 

notice of the increased licensing and 

examination fees charged to Small 

Business Investment Companies (SBICs) 

due to the annual inflation adjustment 

required under SBIC program 

regulations. 

DATES: The changes to the SBIC program 

licensing and examination fees 

identified in this notice take effect on 

October 1, 2021. 

FOR FURTHER INFORMATION CONTACT: 

Steve Knott, Office of Investment and 

Innovation, at 202–205–7731 or 

steve.knott@sba.gov. 

SUPPLEMENTARY INFORMATION: Beginning 

October 1, 2021, the SBIC program 

regulations at 13 CFR 107.300(b)(2) and 

107.692(b)(2) require SBA to annually 

adjust the licensing and examination 

fees for SBICs using the Inflation 

Adjustment defined in 13 CFR 107.50. 

This document provides notice of that 

adjustment. The table below identifies 

the amounts of the adjusted licensing 

and examination fees payable by SBICs 

and SBIC license applicants, which 

become effective on October 1, 2021. 

SBIC fee type 

Fees amounts 

(effective 

Oct. 1, 2021) 

Licensing Fees (§ 107.300) 

Initial Licensing Fee 

§ 107.300(a) ...................... $10,500 

Final Licensing Fee 

§ 107.300(b) ...................... 36,900 

Examination Fees (§ 107.692(b)) 

Minimum Base Fee .............. 9,500 

Maximum Base Fee for nonLeveraged SBICs .............. 31,600 

Maximum Base Fee for Leveraged SBICs .................. 46,400 


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