38250 Federal Register / Vol. 87, No. 122 / Monday, June 27, 2022 / Notices 

1These numbers do not include over 5,000 

lenders that participated in the Paycheck Protection 

Program (PPP) that issued approximately 11.8 

million guaranteed, forgivable loans for $800 

billion. 

2SBLCs and NFRLs are defined in 15 U.S.C. 

632(r) and 13 CFR 120.10. 

3Safety and Soundness Examinations are only 

performed on SBA Supervised Lenders in the 7(a) 

program. SBA Supervised Lenders include SBA 

licensed Small Business Lending Companies and 

Non-Federally Regulated Lenders as defined in 13 

CFR 120.10. Analytical Reviews and Full Reviews 

are performed on 7(a) Lenders and CDCs. 

4For purposes of this notice, Third-party vendors 

include, for example, Loan Agents (e.g., Packagers 

and Lender Service Providers) and Professional 

Managers with management contracts. 

5FTA refers to SBA’s Fiscal and Transfer Agent. 

7(a) Lenders that sell SBA loans in the Secondary 

Market are required by the terms of the Form 1086, 

Secondary Participation Guaranty Agreement, to 

deposit the guaranteed portion of loan payments in 

a segregated account for the benefit of investors. 

6SBA Supervised Lenders are a relatively small 

subset of 7(a) Lenders. 7(a) Lenders include SBA 

Supervised Lenders and 7(a) Lenders with a Federal 

Financial Institution Regulator as defined by 13 

CFR 120.10 (i.e., lenders regulated by the Federal 

Deposit Insurance Corporation, the Office of the 

Comptroller of the Currency, the Federal Reserve 

Board, the National Credit Union Administration, 

and/or the Farm Credit Administration). 

IV, LP, said license is hereby declared 

null and void. 

Bailey DeVries, 

Associate Administrator, Office of Investment 

and Innovation. 

[FR Doc. 2022–13625 Filed 6–24–22; 8:45 am] 

BILLING CODE 8026–03–P 

SMALL BUSINESS ADMINISTRATION 

Reporting and Recordkeeping 

Requirements Under OMB Review 

AGENCY: Small Business Administration. 

ACTION: 30-Day notice. 

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 members of the public an 

additional 30 days to provide comments 

on the proposed collection of 

information. 

DATES: Submit comments on or before 

July 27, 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 

Curtis.Rich@sba.gov, (202) 205–7030, or 

from www.reginfo.gov/public/do/ 

PRAMain. 

SUPPLEMENTARY INFORMATION: SBA’s 

Office of Credit Risk Management 

(OCRM) is responsible for the oversight 

and supervision of the SBA operations 

of over 3100 7(a) Lenders, Certified 

Development Companies (‘‘CDCs’’), and 

Microloan Intermediaries 

(‘‘Intermediaries’’) that participate in 

SBA’s business loan programs and is 

responsible for enforcement of the 

applicable rules and regulations. 

Currently, the Agency guarantees more 

than $110 billion dollars in small 

business loans through these programs.1

The information collection described in 

detail below helps OCRM protect the 

safety and soundness of the business 

loan programs and taxpayer dollars. 

In general, SBA collects information 

in connection with reviews for 

Federally-regulated 7(a) Lenders, CDCs, 

and SBA Supervised Lenders including 

Small Business Lending Companies 

(SBLCs) and Non-Federally Regulated 

Lenders (NFRLs).2 SBA also requests 

certain information when it conducts 

Microloan Intermediary Site Visits. The 

discussion below identifies the nature of 

the information to be collected for each 

type of lender and the related review or 

examination. In addition, SBA has 

created separate lists, which are also 

discussed below, to clearly identify the 

information to be collected. 

I. 7(a) Lender Diagnostic, Limited 

Scope, Limited Scope (Targeted) 

Reviews; CDC SMART Analytical and 

Full Reviews; and Supervised Lender 

Safety and Soundness Exams 

A. Common Information Collected 

For all reviews, and Safety and 

Soundness examinations 3 of 7(a) 

Lenders and CDCs, as applicable, in 

general, SBA requests information 

related to the 7(a) Lender’s or CDC’s 

management and operation, eligibility of 

its SBA loans for SBA guaranty, 

compliance with SBA Loan Program 

Requirements, credit administration, 

and performance of its SBA loan 

portfolio. 

1. Management and Operations: The 

information requested generally 

includes the SBA program organization 

chart with responsibilities, business 

plan, financial and program audits, 

evidence of Lender compliance with 

regulatory orders and agreements (if 

applicable and as appropriate), and staff 

training on SBA lending. 

2. Eligibility and Credit 

Administration: In reviewing these 

areas, SBA may request the Lender’s or 

CDC’s credit policies and procedures; 

servicing policies and procedures; loan 

sample files; independent loan reviews; 

underwriting, loan credit scoring, risk 

rating methodologies; and information 

on loans approved as exceptions to 

policy. 

3. Compliance with Loan Program 

Requirements: Here, SBA generally 

collects information on services and fees 

charged for Lenders’ third-party 

vendors,4 Lender’s FTA 5 trust account, 

and Lender’s use of the System for 

Awards Management to perform agent 

due diligence. For CDCs, SBA collects 

additional information related to Loan 

Program Requirements as described 

below in Section I.C. 

4. Portfolio Performance: In 

considering Lender or CDC portfolio 

performance, SBA may request that 

lenders provide a listing of loans 

indicating those past due, those with 

servicing actions, individual risk 

ratings, and those in liquidation or 

purchased for SBA to compare with 

SBA data. SBA may also request that 

lenders provide an explanation for risks 

identified (e.g., identified by higher risk 

metrics or PARRiS flags triggered). 

Further detail on the information SBA 

collects in reviews, and Safety and 

Soundness Exams is contained in the 

SBA Supervised Lender Safety and 

Soundness Examination/Full Review 

Information Request; 7(a) Lender 

Diagnostic Review Request; 7(a) Lender 

Limited Scope Review Request; 7(a) 

Lender Limited Scope (Targeted) 

Review Request; CDC SMART 

Analytical Review Information Request; 

and CDC SMART Full Review 

Information Request. Each Information 

Request document is available upon 

request. 

B. SBA Supervised Lender 

Supplemental Information for Safety 

and Soundness Exams 

SBA is the primary Federal regulator 

for SBA licensed SBLCs and NFRLs that 

participate in the 7(a) program.6

Because SBA is the primary Federal 

regulator, SBA performs comprehensive 

exams that require information in 

addition to that referenced in Section 

I.A. Specifically, for SBA Supervised 

Lender examinations, SBA additionally 

requests corporate governance 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 122 / Monday, June 27, 2022 / Notices 38251 

7Through SBA’s Delegated Authority programs, 

qualified lenders may process SBA loans with 

further autonomy and reduced paperwork than 

through regular SBA loan processing. 

8Other Reviews may include, for example, 

Secondary Market loan reviews, reviews of lender 

self-assessments, or Agreed Upon Procedures 

Reviews performed by third-party practitioners or 

an independent office within the Lender to which 

SBA and the Lender agree, that follow a review 

protocol as prescribed or approved by SBA. 

documents and information on the 

Lender’s financial condition, internal 

controls, and risk mitigation. SBA also 

requests information on higher risk 

loans, payments related to loans in loan 

sample, fidelity insurance, credit 

scoring model validation and lender 

self-testing for compliance with SBA 

Loan Program Requirements. SBA 

Supervised Lender safety and 

soundness examinations include review 

of capital, earnings, and liquidity in 

accordance with 13 CFR 120.1050(b) 

and accordingly, SBA requests 

information on the lender’s financing, 

asset account calculations, and dividend 

policy. Further detail on the information 

that SBA requests for SBA Supervised 

Lender examinations is contained in 

SBA Supervised Lender Safety and 

Soundness Examination/Full Review 

Information Request. This document is 

available upon request. 

C. CDC Supplemental Information 

SBA is also the primary Federal 

regulator for CDCs. SBA guarantees 

100% of 504 program debentures. 

Therefore, SBA also requests additional 

information to prudently oversee CDCs, 

as it does for SBA Supervised Lenders. 

The additional information generally 

requested includes corporate 

governance documents and information 

on Lenders’ financial condition, internal 

controls and risk mitigation practices, 

and the CDC’s plan for investment in 

other local economic development. In 

addition, SBA requests, as applicable, 

information on a CDC’s Premier 

Certified Lenders Program (PCLP) Loan 

Loss Reserve Account and loans that a 

CDC packages for other 7(a) lenders. 

You may request a copy of the CDC 

SMART Analytical Review Information 

Request and CDC SMART Full Review 

Information Request for more details on 

this supplemental information request. 

II. 7(a) Lender and CDC Delegated 

Authority Reviews 

SBA collects information for 

Delegated Authority Reviews 

performed, in general, every two years 

for lenders applying or reapplying to 

SBA’s Delegated Authority Programs. 

Delegated Authority programs include 

for example; the Preferred Lender 

Program (PLP) for 7(a) Lenders and 

Accredited Lender Program (ALP) or 

PCLP for CDCs.7 If a lender is scheduled 

to receive a review or a Safety and 

Soundness Examination during the 

same review cycle as a Delegated 

Authority Review, generally SBA will 

coordinate the timing of the reviews and 

the related information collections to 

lessen the burden. 

For 7(a) delegated authority reviews, 

SBA may request information on (for 

example) organizational changes, staff 

training and experience, lender 

explanation for risk indicators triggered, 

Lender risk mitigation efforts, Lender’s 

financial condition, Lender’s 

deficiencies underlying regulatory 

orders (if applicable and as appropriate), 

and loan sample files (as requested). 

For CDC delegated authority reviews, 

SBA requests corporate governance 

documents and additional information 

on organization/staff, financial 

condition, internal controls and risk 

mitigation. SBA also requests a CDC’s 

policies including its no-adverse-change 

determination, loan reviews, and lender 

explanation for its higher risk metrics. 

For more detail on Delegated 

Authority Review collections, you may 

request a copy of the 7(a) Lender 

Nomination and Renewal for Delegated 

Authority Information Requests and/or 

the ALP/PCLP Renewal Guide and 

Information Request. 

III. Microloan Intermediary Reviews 

For Microloan Program Intermediary 

oversight, SBA District Offices perform 

an annual site visit for active 

Intermediaries. SBA requests 

information, for example, on SBA 

program management and operations 

including organizational chart with 

responsibilities, contact information, 

Promissory notes, and credit policies 

and procedures. SBA primarily reviews 

the Intermediary’s credit administration 

through a loan sample file request. 

Specifics on the information collected 

are contained in SBA’s Microloan 

Intermediary Site Visit/Review 

Information Request document, a copy 

of which is available upon request. 

IV. Other Reviews, Corrective Action 

Plans, and Increased Supervision for 

7(a) Lenders, CDCs, and Intermediaries 

SBA may pose additional information 

requests for its Other Reviews,8

generally of higher risk lenders. For 

example, for 7(a) Lenders under a public 

regulatory order or agreement, SBA may 

request information relating to the status 

of the underlying deficiencies, as 

appropriate, or request loan files for 

SBA to review to mitigate risk before the 

loan can be sold into the secondary 

market. SBA may also conduct reviews 

of higher risk lenders that utilize Lender 

Service Providers or Loan Agents 

requesting information for example on 

fees, service agreements, and activities 

performed. SBA may also request 

corrective action plans from lenders 

following reviews where findings and 

deficiencies are identified. Finally, SBA 

may request additional information of 

lenders under increased supervision. 

However, information requests for 

increased supervision tend to be lender 

specific. 

In general, for information that has 

already been provided by a 7(a) Lender, 

a CDC, or a Microloan Intermediary but 

is unchanged, a lender may certify that 

the information was already provided 

and is unchanged in lieu of resubmitting 

the information. The certification must 

also state to whom and on what date the 

information was provided to SBA. 

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 No.: 3245–0365. 

Title: SBA Lender and Microloan 

Intermediary Reporting Requirements. 

Description of Respondents: 7(a) 

Lenders (including SBA Supervised 

Lenders), Certified Development 

Companies, and Microloan 

Intermediaries. 

Estimated Number of Respondents: 

1,985. 

Estimated Annual Responses: 2,083. 

Estimated Annual Hour Burden: 

17,279. 

Curtis B. Rich, 

Agency Clearance Officer. 

[FR Doc. 2022–13597 Filed 6–24–22; 8:45 am] 

BILLING CODE 8026–09–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #17489 and #17490; 

Montana Disaster Number MT–00158] 

Presidential Declaration of a Major 

Disaster for Public Assistance Only for 

the State of Montana 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 


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