[Federal Register Volume 87, Number 79 (Monday, April 25, 2022)]
[Notices]
[Pages 24385-24386]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-08717]


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SMALL BUSINESS ADMINISTRATION


Reporting and Recordkeeping Requirements Under OMB Review

AGENCY: Small Business Administration.

ACTION: 30-Day notice.

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SUMMARY: The Small Business Administration (SBA) is seeking approval 
from the Office of Management and Budget (OMB) for the information 
collection described below. In accordance with the Paperwork Reduction 
Act and OMB procedures, SBA is publishing this notice to allow all 
interested member of the public an additional 30 days to provide 
comments on the proposed collection of information.

DATES: Submit comments on or before May 25, 2022

ADDRESSES: Written comments and recommendations for this information 
collection request should be sent within 30 days of publication of this 
notice to www.reginfo.gov/public/do/PRAMain. Find this particular 
information collection request by selecting ``Small Business 
Administration''; ``Currently Under Review,'' then select the ``Only 
Show ICR for Public Comment'' checkbox. This information collection can 
be identified by title and/or OMB Control Number.

FOR FURTHER INFORMATION CONTACT: You may obtain a copy of the 
information collection and supporting documents from the Agency 
Clearance Office at <a href="/cdn-cgi/l/email-protection#591a2c2b2d302a770b303a31192a3b38773e362f"><span class="__cf_email__" data-cfemail="febd8b8c8a978dd0ac979d96be8d9c9fd0999188">[email protected]</span></a>; (202) 205-7030, or

[[Page 24386]]

from www.reginfo.gov/public/do/PRAMain.

SUPPLEMENTARY INFORMATION: SBA Form 1050, Settlement Sheet is used in 
SBA's 7(a) Loan Program to collect information from lenders and 
borrowers regarding the disbursement of loan proceeds. SBA relies on 
this information during the guaranty purchase review process as a 
component in determining whether to honor a loan guaranty. The current 
form includes 1050 Settlement Sheet instructions for the lender. The 
currently approved form primarily requires the lender and borrower to 
certify to whether they complied with a series of loan requirements. 
The current form also requires submission of documentation (e.g., joint 
payee or cancelled checks, invoices or paid receipts, and wire transfer 
records) in support of the certification. SBA has determined that the 
section for ``Authorized Use of Proceeds'' does not include in the 
Settlement Sheet all the categories for'' Use of Proceeds'' this 
addition to the 1050 Settlement Sheet would enable the agency to 
effectively monitor compliance with loan disbursement procedures and 
will align with the ``Use of Proceeds'' categories for 7(a) loans. As a 
result, SBA is proposing to change both the content and format of the 
Form 1050.
    The form will be divided into several sections to clearly identify 
the information to be submitted. The revised form will continue to 
collect the same basic identifying information such as loan amount, 
loan number and lender's name. In addition, the form will continue to 
require certifications from both the lender and borrower regarding 
compliance with the disbursement requirements and accuracy of 
information submitted. In the section for ``Authorized Use of 
Proceeds,'' the revised 1050 Settlement Sheet will include ``Land 
Acquisitions with or without improvements'', ``Leasehold Improvements 
to property owned by applicant or owned by others'', ``Export Working 
Capital (EWCP or Export Express)'', ``Support Standby Letter of Credit 
(EWCP or Export Express)'', Refinance Existing (EWCP) or Export LOC 
(EWCP)'', ``Business Acquisition/Change of Ownership'', ``Pay off SBA 
Loan, SID or Other Lender'', '' Pay Notes Payable, SID or Other 
Lender'', ``Pay Accounts Payable.'' These changes will allow the lender 
to document all the sources and uses of funds at the time of loan 
closing more clearly. This additional information will better allow 
both lenders and SBA staff to ensure that the necessary information is 
collected at the time of loan origination.

Solicitation of Public Comments

    Comments may be submitted on (a) whether the collection of 
information is necessary for the agency to properly perform its 
functions; (b) whether the burden estimates are accurate; (c) whether 
there are ways to minimize the burden, including through the use of 
automated techniques or other forms of information technology; and (d) 
whether there are ways to enhance the quality, utility, and clarity of 
the information.
    OMB Control: 3245-0200.
    Title: Settlement Statement.
    Description of Respondents: SBA Lenders and Borrowers.
    Estimated Number of Respondents: 52,000.
    Estimated Annual Responses: 52,000.
    Estimated Annual Hour Burden: 14,112.

Curtis Rich,
Agency Clearance Officer.
[FR Doc. 2022-08717 Filed 4-22-22; 8:45 am]
BILLING CODE 8026-03-P


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