69044 Federal Register / Vol. 70, No. 218 / Monday, November 14, 2005 / Rules and Regulations 

1The primary, secondary, and seasonal credit 

rates described in this section apply to both 

advances and discounts made under the primary, secondary, and seasonal credit programs, 

respectively. 

in the mutual fund or unit investment 

trust. 

[FR Doc. 05–22476 Filed 11–10–05; 8:45 am] 

BILLING CODE 6345–01–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 201 

[Regulation A] 

Extensions of Credit by Federal 

Reserve Banks 

AGENCY: Board of Governors of the 

Federal Reserve System. 

ACTION: Final rule. 

SUMMARY: The Board of Governors of the 

Federal Reserve System (Board) has 

adopted final amendments to its 

Regulation A to reflect the Board’s 

approval of an increase in the primary 

credit rate at each Federal Reserve Bank. 

The secondary credit rate at each 

Reserve Bank automatically increased 

by formula as a result of the Board’s 

primary credit rate action. 

DATES: The amendments in this final 

rule are effective November 14, 2005. 

The rate changes for primary and 

secondary credit were effective on the 

dates specified in 12 CFR 201.51, as 

amended. 

FOR FURTHER INFORMATION CONTACT: 

Jennifer J. Johnson, Secretary of the 

Board (202/452–3259); for users of 

Telecommunication Devices for the Deaf 

(TDD) only, contact 202/263–4869. 

SUPPLEMENTARY INFORMATION: The 

Federal Reserve Banks make primary 

and secondary credit available to 

depository institutions as a backup 

source of funding on a short-term basis, 

usually overnight. The primary and 

secondary credit rates are the interest 

rates that the twelve Federal Reserve 

Banks charge for extensions of credit 

under these programs. In accordance 

with the Federal Reserve Act, the 

primary and secondary credit rates are 

established by the boards of directors of 

the Federal Reserve Banks, subject to 

the review and determination of the 

Board. 

The Board approved requests by the 

Reserve Banks to increase by 25 basis 

points the primary credit rate in effect 

at each of the twelve Federal Reserve 

Banks, thereby increasing from 4.75 

percent to 5.00 percent the rate that 

each Reserve Bank charges for 

extensions of primary credit. As a result 

of the Board’s action on the primary 

credit rate, the rate that each Reserve 

Bank charges for extensions of 

secondary credit automatically 

increased from 5.25 percent to 5.50 

percent under the secondary credit rate 

formula. The final amendments to 

Regulation A reflect these rate changes. 

The 25-basis-point increase in the 

primary credit rate was associated with 

a similar increase in the target for the 

federal funds rate (from 3.75 percent to 

4.00 percent) approved by the Federal 

Open Market Committee (Committee) 

and announced at the same time. A 

press release announcing these actions 

indicated that: 

Elevated energy prices and hurricanerelated disruptions in economic activity have 

temporarily depressed output and 

employment. However, monetary policy 

accommodation, coupled with robust 

underlying growth in productivity, is 

providing ongoing support to economic 

activity that will likely be augmented by 

planned rebuilding in the hurricane-affected 

areas. The cumulative rise in energy and 

other costs has the potential to add to 

inflation pressures; however, core inflation 

has been relatively low in recent months and 

longer-term inflation expectations remain 

contained. 

The Committee perceives that, with 

appropriate monetary policy action, the 

upside and downside risks to the attainment 

of both sustainable growth and price stability 

should be kept roughly equal. With 

underlying inflation expected to be 

contained, the Committee believes that 

policy accommodation can be removed at a 

pace that is likely to be measured. 

Nonetheless, the Committee will respond to 

changes in economic prospects as needed to 

fulfill its obligation to maintain price 

stability. 

Regulatory Flexibility Act Certification 

Pursuant to the Regulatory Flexibility 

Act (5 U.S. C. 605(b)), the Board certifies 

that the new primary and secondary 

credit rates will not have a significantly 

adverse economic impact on a 

substantial number of small entities 

because the final rule does not impose 

any additional requirements on entities 

affected by the regulation. 

Administrative Procedure Act 

The Board did not follow the 

provisions of 5 U.S.C. 553(b) relating to 

notice and public participation in 

connection with the adoption of these 

amendments because the Board for good 

cause determined that delaying 

implementation of the new primary and 

secondary credit rates in order to allow 

notice and public comment would be 

unnecessary and contrary to the public 

interest in fostering price stability and 

sustainable economic growth. For these 

same reasons, the Board also has not 

provided 30 days prior notice of the 

effective date of the rule under section 

553(d). 

12 CFR Chapter II 

List of Subjects in 12 CFR Part 201 

Banks, Banking, Federal Reserve 

System, Reporting and recordkeeping. 

Authority and Issuance 

■ For the reasons set forth in the 

preamble, the Board is amending 12 

CFR Chapter II to read as follows: 

PART 201—EXTENSIONS OF CREDIT 

BY FEDERAL RESERVE BANKS 

(REGULATION A) 

■ 1. The authority citation for part 201 

continues to read as follows: 

Authority: 12 U.S.C. 248(i)–(j), 343 et seq., 

347a, 347b, 347c, 348 et seq., 357, 374, 374a, 

and 461. 

■ 2. In § 201.51, paragraphs (a) and (b) 

are revised to read as follows: 

§ 201.51 Interest rates applicable to credit 

extended by a Federal Reserve Bank.1

(a) Primary credit. The interest rates 

for primary credit provided to 

depository institutions under § 201.4(a) 

are: 

Federal Reserve Bank Rate Effective 

Boston ............................................................................................................................................................ 5.00 November 1, 2005. 

New York ....................................................................................................................................................... 5.00 November 1, 2005. 

Philadelphia .................................................................................................................................................... 5.00 November 1, 2005. 

Cleveland ....................................................................................................................................................... 5.00 November 1, 2005. 

Richmond ....................................................................................................................................................... 5.00 November 1, 2005. 

Atlanta ............................................................................................................................................................ 5.00 November 1, 2005. 

Chicago .......................................................................................................................................................... 5.00 November 1, 2005. 

St. Louis ......................................................................................................................................................... 5.00 November 2, 2005. 

Federal Register / Vol. 70, No. 218 / Monday, November 14, 2005 / Rules and Regulations 69045 

Federal Reserve Bank Rate Effective 

Minneapolis .................................................................................................................................................... 5.00 November 1, 2005. 

Kansas City .................................................................................................................................................... 5.00 November 1, 2005. 

Dallas ............................................................................................................................................................. 5.00 November 1, 2005. 

San Francisco ................................................................................................................................................ 5.00 November 1, 2005. 

(b) Secondary credit. The interest 

rates for secondary credit provided to 

depository institutions under 201.4(b) 

are: 

Federal Reserve Bank Rate Effective 

Boston ............................................................................................................................................................ 5.50 November 1, 2005. 

New York ....................................................................................................................................................... 5.50 November 1, 2005. 

Philadelphia .................................................................................................................................................... 5.50 November 1, 2005. 

Cleveland ....................................................................................................................................................... 5.50 November 1, 2005. 

Richmond ....................................................................................................................................................... 5.50 November 1, 2005. 

Atlanta ............................................................................................................................................................ 5.50 November 1, 2005. 

Chicago .......................................................................................................................................................... 5.50 November 1, 2005. 

St. Louis ......................................................................................................................................................... 5.50 November 2, 2005. 

Minneapolis .................................................................................................................................................... 5.50 November 1, 2005. 

Kansas City .................................................................................................................................................... 5.50 November 1, 2005. 

Dallas ............................................................................................................................................................. 5.50 November 1, 2005. 

San Francisco ................................................................................................................................................ 5.50 November 1, 2005. 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System, November 7, 2005. 

Jennifer J. Johnson, 

Secretary of the Board. 

[FR Doc. 05–22520 Filed 11–10–05; 8:45 am] 

BILLING CODE 6210–02–P 

SMALL BUSINESS ADMINISTRATION 

13 CFR Part 121 

RIN 3245–AF43 

Small Business Size Standards; Gulf 

Opportunity Pilot Loan Program 

AGENCY: Small Business Administration. 

ACTION: Interim final rule with request 

for comments. 

SUMMARY: The U.S. Small Business 

Administration (SBA) is temporarily 

amending the size eligibility criteria for 

loan assistance provided under the 

‘‘Gulf Opportunity Pilot Loan Program,’’

a one-year pilot under the 7(a) Business 

Loan Program. The pilot program makes 

available on an expedited basis 7(a) 

loans to small businesses located in, 

locating to, or relocating in disaster 

areas declared by the President as a 

result of Hurricanes Katrina and Rita 

and any contiguous parishes or 

counties. This interim final rule makes 

financial assistance under the pilot 

program available to businesses that are 

considered small for the purpose of 

SBA’s 7(a) Business Loan Program and 

businesses considered small for the 

purpose of SBA’s Certified Development 

Company Program. SBA prepared this 

rule as an interim final rule because its 

immediate implementation will 

facilitate the reconstruction and 

economic recovery of the Gulf Coast. 

DATES: Effective Date: This regulation 

becomes effective on November 14, 

2005. 

Comment Period: Comments must be 

received by SBA on or before December 

14, 2005. 

ADDRESSES: You may submit comments 

identified by RIN 3245–AF43 through 

one of the following methods: (1) 

Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments; 

(2) Fax: (202) 205–6390; or (3) Mail/ 

Hand Delivery/Courier: Gary M. 

Jackson, Assistant Administrator for 

Size Standards, 409 Third Street, SW., 

Mail Code 6530, Washington, DC 20416. 

FOR FURTHER INFORMATION CONTACT: 

Charles W. Thomas, Director, Office of 

Program Development, Office of 

Financial Assistance, (202) 205–6656 or 

charles.thomas@sba.gov. 

SUPPLEMENTARY INFORMATION: 

Gulf Opportunity Pilot Loan Program 

SBA, in cooperation with lending 

institutions, has established a Gulf 

Opportunity Pilot Loan Program (GO 

Loan Pilot or Pilot), as a pilot under the 

7(a) Business Loan Program, to expedite 

delivery of small business financing in 

the form of 7(a) loans to small 

businesses located in, locating to, or relocating in Presidentially-declared 

disaster areas resulting from Hurricanes 

Katrina and Rita and any contiguous 

parishes or counties (SBA Policy Notice 

5000–978, November 8, 2005). 

The scope and magnitude of damage 

caused by Hurricanes Katrina and Rita 

is unprecedented. SBA has determined 

that the small businesses located in 

those communities have an 

extraordinary need for moderately-sized 

loans ($150,000 or less) provided on an 

expedited basis. To respond to these 

extraordinary needs of the small 

business community, SBA developed a 

pilot program, which goes beyond the 

Agency’s traditional disaster relief 

efforts, to deliver financial assistance to 

small businesses located in, locating to, 

or relocating in the Presidentiallydeclared disaster areas resulting from 

Hurricanes Katrina and Rita and any 

contiguous parishes or counties (A list 

of eligible parishes and counties is 

located at: http://www.sba.gov/ 

disaster_recov/katrinafactsheets.html.). 

Borrowers under this pilot must meet 

the geographical requirements as well as 

the standard eligibility requirements for 

the loan. The Agency structured the GO 

Loan Pilot to provide its full 85 percent 

guaranty to more strongly encourage 

lenders to lend to businesses in the 

affected communities. The GO Loan 

pilot will be a temporary pilot program 

for use in fiscal year 2006, and will 

expire on September 30, 2006. This 

interim final rule makes the expedited 

small business financing available to 

businesses that are considered small for 

the purpose of SBA’s 7(a) Business Loan 

Program and businesses considered 

small for the purpose of SBA’s Certified 

Development Company (CDC) Program.