27196 Federal Register / Vol. 74, No. 108 / Monday, June 8, 2009 / Notices 

the location of the needle in the prostate 

cannot be verified with certainty. 

NRC—On July 11, 2008, NRC issued 

a Notice of Violation related to this 

event. 

* * * * * 

NRC08–05 Medical Event at Bon 

Secours Virginia Health Source in 

Midlothian, Virginia 

Date and Place—May 1, 2008, 

Midlothian, Virginia. 

Nature and Probable Consequences— 

Bon Secours Virginia Health Source 

reported that a medical event occurred 

during a high dose-rate (HDR) treatment 

for breast cancer using an iridium-192 

source with an activity of 165.4 GBq 

(4.47 Ci). The authorized user physician 

prescribed 10 fractions of 340 cGy (340 

rad) each to be administered using a 

balloon catheter technique. The licensee 

calculated that a portion of the target 

volume received a dose in the range of 

86 cGy (86 rad). In addition, a small 

volume of skin, at the catheter entrance 

into the patient, received a dose in the 

range of 1,142 cGy (1,142 rad). The 

patient and the referring physician were 

informed of this event. 

During the check source run for the 

first fraction, an HDR alarm interrupted 

the run. Rather than investigate the 

cause of the alarm, the physicist 

concluded that a 2 mm error had been 

made in the measurement of the 

catheter length and the alarm occurred 

because the check source hit the end of 

the catheter. The physicist adjusted the 

catheter length value at the treatment 

console from 1300 mm to 1280 mm, 

believing this to be a change of 2 mm, 

and the treatment was administered. 

Immediately following the first 

treatment, it was determined that the 

original catheter length measurement of 

1300 mm was correct and the length 

change made at the treatment console 

was 20 mm rather than 2 mm. As a 

result, the source dwell positions were 

20 mm from the intended locations and 

were closer than intended to the skin 

entry point of the HDR catheter. 

Subsequent HDR treatment fractions 

were administered as intended, with 

adjustments to the final two treatment 

fractions to assure that all areas of the 

target volume received an adequate dose 

over the course of the treatment. An 

NRC medical consultant concluded that 

no significant adverse health effect to 

the patient is expected. 

Cause(s)—The cause of the medical 

event was human error in (1) failing to 

investigate the cause of the HDR alarm 

and (2) adjusting the catheter length 

value at the console by 20 mm instead 

of the intended 2 mm. 

Actions Taken To Prevent Recurrence 

Licensee—The licensee’s corrective 

actions taken to prevent recurrence 

included updating procedures to define 

steps that will be taken to resolve HDR 

device alarms. 

NRC—NRC performed a reactive 

inspection at the facility and issued a 

Notice of Violation for three violations 

of regulatory requirements on October 

10, 2008. 

* * * * * 

AS08–05 Medical Event at Lehigh 

Valley Hospital in Allentown, 

Pennsylvania 

Date and Place—July 17, 2008, 

Allentown, Pennsylvania. 

Nature and Probable Consequences— 

Lehigh Valley Hospital (the licensee) 

reported that a patient was prescribed a 

dose of 740 MBq (20 mCi) of iodine-131, 

for treatment of a thyroid condition, but 

instead was administered 2,775 MBq (75 

mCi). The licensee discovered the event 

within an hour of the administration 

and gave the patient 130 mg of 

potassium iodide, a blocking agent, to 

prevent the uptake of iodine-131 in the 

thyroid. As a result of the 

administration, next day measurements 

indicated that the patient had a 74 MBq 

(2 mCi) uptake to the thyroid and 370 

MBq (10 mCi) whole body retention, 

resulting in an approximate thyroid 

dose of 26 Gy (2,600 rad) and whole 

body effective dose equivalent of 8.7 

cGy (8.7 rad). The patient and the 

referring physician were informed of 

this event. The licensee determined that 

as a result of giving the patient 130 mg 

of potassium iodide, no significant 

adverse health effect to the patient is 

expected. 

Cause(s)—The cause of the medical 

event was human error because the 

technologist accidentally switched the 

doses between two patients. 

Actions Taken To Prevent Recurrence 

Licensee—The licensee implemented 

corrective measures by modifying 

current procedures involving the 

administration of radiopharmaceuticals. 

State—The State conducted a followup inspection on August 21, 2008, to 

ensure that the licensee’s actions taken 

to prevent recurrence had been 

implemented and issued a Notice of 

Violation. 

Dated at Rockville, Maryland, this 29th day 

of May 2009. 

For the U.S. Nuclear Regulatory 

Commission. 

Annette L. Vietti-Cook, 

Secretary of the Commission. 

[FR Doc. E9–13300 Filed 6–5–09; 8:45 am] 

BILLING CODE 7590–01–P 

SMALL BUSINESS ADMINISTRATION 

Business Loan Program Temporary 

Eliminations/Reductions in Fees 

AGENCY: U.S. Small Business 

Administration (SBA). 

ACTION: Notice and request for 

comments. 

SUMMARY: This Notice formalizes the 

implementation of Section 501 of the 

American Recovery and Reinvestment 

Act of 2009. Section 501 authorizes SBA 

to temporarily reduce or eliminate 

certain SBA business loan program fees 

in the 7(a) Loan Program and the 504 

Certified Development Company 

Program. These fee changes are 

intended to promote economic recovery 

by providing economic relief to 

America’s small businesses and 

encouraging lenders to make small 

business loans. While these changes 

have been implemented and are underway, this Notice contains the key 

provisions of SBA’s implementation of 

Section 501 in formal guidance and 

requests public comment. 

DATES: Effective Date: This Notice is 

effective June 8, 2009. 

Applicability Dates: This Notice 

applies to 7(a) loans approved by SBA 

or issued loan numbers for delegated 

lender loans by SBA, on or after 

February 17, 2009 and to 504 loans 

approved by SBA, pending approval at 

SBA, or issued loan numbers for 

delegated CDC loans by SBA, on or after 

February 17, 2009, until funds 

appropriated for Section 501 are 

exhausted. 

Comment Date: Comments must be 

received on or before July 8, 2009. 

ADDRESSES: You may submit comments, 

identified by SBA docket number SBA– 

2009–0001 by any of the following 

methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Recovery Act Comments— 

Office of Financial Assistance, U.S. 

Small Business Administration, Suite 

8300, 409 Third Street, SW., 

Washington, DC 20416. 

• Hand Delivery/Courier: Grady 

Hedgespeth, Director, Office of 

Financial Assistance, U.S. Small 

Business Administration, 409 Third 

Street, SW., Washington, DC 20416. 

SBA will post all comments on 

www.regulations.gov. If you wish to 

submit confidential business 

information (CBI) as defined in the User 

Notice at www.regulations.gov, please 

submit the information to Grady 

Hedgespeth, Director, Office of 

Financial Assistance, U.S. Small 


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Federal Register / Vol. 74, No. 108 / Monday, June 8, 2009 / Notices 27197 

Business Administration, 409 Third 

Street, SW., Washington, DC 20416, or 

send an e-mail to recovery.act@sba.gov. 

Highlight the information that you 

consider to be CBI and explain why you 

believe SBA should hold this 

information as confidential. SBA will 

review the information and make the 

final determination whether it will 

publish the information. 

FOR FURTHER INFORMATION CONTACT: The 

SBA district office nearest you; the list 

of offices can be found at http:// 

www.sba.gov/localresources/index.html. 

SUPPLEMENTARY INFORMATION: 

I. Background Information 

America’s financial crisis has created 

adverse conditions that are affecting 

small businesses, including a lack of 

liquidity in the lending system, a 

reluctance of many lenders to extend 

new loans, tightened credit standards, 

weaker finances at small businesses, 

and uncertainty about taking on new 

debt on the part of many entrepreneurs. 

As a result, lending by SBA program 

participants has significantly declined 

and SBA’s ability to ensure small 

business access to capital has been 

limited. 

On February 17, 2009, the President 

signed the American Recovery and 

Reinvestment Act of 2009 (the Recovery 

Act) (Pub. L. 111–5, 123 Stat. 115 

(February 17, 2009)) to promote 

economic recovery by preserving and 

creating jobs, and to assist those most 

affected by the severe economic 

conditions facing the nation. The SBA 

received funding and authority through 

the Recovery Act to modify existing 

loan programs and establish new loan 

programs to significantly stimulate 

small business lending. It is expected 

that SBA’s actions will increase access 

to affordable credit for small businesses 

through the Agency’s 7(a) and 504 loan 

programs, unfreeze the secondary 

market for SBA guaranteed loans, help 

small businesses struggling with 

existing debt, and allow greater 

investment in high-growth small 

businesses. 

To this end, Section 501 of the 

Recovery Act provides for the temporary 

reduction or elimination of certain loan 

fees in the 7(a) and 504 loan guarantee 

programs. The Recovery Act 

contemplates that these fee 

eliminations/reductions will flow to 

both borrowers and SBA’s lending 

partners, consistent with an order of 

priority set forth in the Recovery Act. 

Relief from some borrower fees will 

make SBA guaranteed loans more 

affordable for small businesses hesitant 

to seek a loan during these difficult 

economic times. Relief from some 

lender fees will provide incentives to 

lenders to expand their SBA lending 

and make loans to America’s small 

businesses with confidence. 

II. Comments 

The intent of Section 501 of the 

Recovery Act is that SBA provide relief 

to America’s small businesses effective 

immediately. This along with the 

current economic conditions provided 

good cause for SBA moving forward 

prior to receiving public comments. 

Although Section 501 has been 

implemented and this Notice is effective 

immediately, comments are solicited 

from interested members of the public 

on all aspects of the Notice including 

the formal guidance set forth in the 

section below. These comments must be 

submitted on or before July 8, 2009. The 

SBA will consider these comments and 

the need for making any revisions as a 

result of these comments. 

III. Business Loan Temporary 

Elimination/Reduction in Fees 

Overview 

On February 17, 2009, President 

Obama signed the American Recovery 

and Reinvestment Act of 2009 (the 

Recovery Act). (Pub. L. 111–5, 123 Stat. 

115). The Recovery Act was enacted to 

promote economic recovery by 

preserving and creating jobs, and 

assisting those most impacted by the 

severe economic conditions facing the 

nation. Among the SBA provisions 

contained in the Recovery Act are 

provisions authorizing SBA to 

temporarily eliminate or reduce certain 

loan fees for borrowers and/or lenders 

in SBA’s 7(a) guaranteed loan program 

and the 504 Certified Development 

Company (CDC) loan program. The 

following outlines the key guidance of 

the Recovery Act Section 501 as 

implemented. 

Applicability Date of Fee Relief 

Provisions 

Section 501 fee relief applies to 7(a) 

loan applications with a term greater 

than one year that are approved, or 

issued loan numbers for delegated 

lender loans, by SBA on or after 

February 17, 2009. This includes 

delegated authority loans, including but 

not limited to, SBA Express Loans. For 

SBA’s 504 program, the fee relief 

applies to loan applications approved 

by SBA, loans issued loan numbers for 

delegated CDC loans by SBA, and loans 

pending approval at SBA, on or after 

February 17, 2009. The Recovery Act 

provides that fee relief will sunset on 

the earlier of September 30, 2010, or 

such date as appropriated funds are 

exhausted. Depending on the loan 

volume, SBA estimates that it will be 

able to eliminate the fees on loans 

approved through approximately 

December 31, 2009. SBA will notify the 

public when appropriated funds are 

exhausted. 

7(a) Program Fees 

Section 501 of the Recovery Act 

authorizes SBA to temporarily eliminate 

or reduce certain 7(a) program loan fees, 

including all Small Business Act 

Section 7(a)(18)(A) fees (guaranty fees) 

to the extent such cost is offset by 

appropriations. Accordingly, SBA is 

eliminating such Section 7(a)(18)(A) 

guaranty fees, including clause (i) 

through (iv) fees, until funds set aside 

for this purpose are exhausted. While 

Section 7(a)(18)(A)(iv) fees are not 

specifically enumerated in the funding 

priority provision of Recovery Act 

Section 501(c), SBA is eliminating this 

fee consistent with its inclusion in 

Recovery Act Section 501(a) and with 

subsection 501(c) priority on borrower 

relief. With the elimination of Section 

7(a)(18)(A) guaranty fees, there will be 

no guaranty fees that a lender might 

retain under 13 CFR 120.220(d) for 

loans with a maturity of more than 

twelve months where the total loan 

amount is no more than $150,000. The 

Recovery Act, however, does not cover 

SBA’s 1⁄4 point guaranty fee for loans 

with maturities of 12 months or less. 13 

CFR 120.220(a). Therefore, the 1⁄4 point 

fee for loans with maturities of 12 

months or less is still effective. The fee 

relief provisions in this Notice 

temporarily supersede any provisions 

that conflict in 13 CFR 120.220. 

While the Recovery Act also allows 

for the potential elimination/reduction 

of Section 7(a)(23)(A) annual fees which 

are paid by the lender, SBA is unable to 

reduce these fees within the constraints 

of the Recovery Act. This is due to the 

Recovery Act’s 7(a) loan program 

provisions that establish a clear priority 

for borrower relief. In addition, the 

Recovery Act fee elimination/reduction 

provisions are only available to the 

extent offset by appropriations. Finally, 

SBA in consultation with OMB 

determined that there was no periodic 

allocation methodology between the 7(a) 

fees that could be implemented without 

significant operational challenges. 

These challenges would be further 

complicated by the difficulty 

differentiating between small and large 

lenders on an ongoing basis as required 

by the statutory provision for ‘‘waterfall 

of benefits.’’ 


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27198 Federal Register / Vol. 74, No. 108 / Monday, June 8, 2009 / Notices 

504 Program Fees 

Section 501 of the Recovery Act also 

authorizes SBA to temporarily eliminate 

two 504 program fees: (i) Small Business 

Investment Act Section 503(d)(2) fees 

(Third-Party Participation Fees), 

codified at 13 CFR 120.972(a) and (ii) 13 

CFR Section 120.971(a)(1) fees (CDC 

Processing Fees). To implement this 

provision, SBA is eliminating these two 

504 program fees. Consistent with the 

Recovery Act’s temporary elimination of 

CDC Processing Fees and until further 

notice, CDCs will no longer be allowed 

to collect processing fee deposits from 

small business borrowers that would 

have gone towards payment of the CDC 

Processing Fee upon loan approval on 

or after February 17, 2009 under 13 CFR 

120.935. However, the Recovery Act 

provides for SBA reimbursement to 

CDCs for the waived CDC Processing 

Fees. Therefore, SBA will pay CDCs 

two-thirds of the estimated CDC 

Processing Fee at the time of loan 

approval and the remainder upon 

funding of the loan. The CDC Processing 

Fee reimbursed will be equal to 1.5% of 

net debenture proceeds for which a CDC 

does not collect the CDC Processing Fee. 

SBA, however, will not reimburse CDCs 

the CDC Processing Fee if the CDC had 

collected such a fee from the borrower 

on a prior 504 loan approved before 

February 17, 2009 and cancelled before 

disbursement. Fee relief provisions in 

this Notice temporarily supersede any 

provisions that conflict in 13 CFR 

120.971 and 120.972. 

Fee Refunds 

If fees have already been paid to SBA 

on eligible loans, SBA will refund to 

lenders the eligible fees. If borrowers 

have already paid lenders for the fees, 

lenders must refund the borrowers from 

the SBA refund within 14 days of the 

date that SBA forwards the refund to 

lender’s account or the date of the SBA 

refund check. If, however, lenders have 

received the refunds before the date of 

publication of the Notice, lenders must 

refund the fees to the borrowers within 

14 days from the publication date of this 

Notice. In addition, if lender retained 

any fees under 13 CFR 120.220(d) (loans 

with a maturity of more than 12 months 

that are $150,000 or less) on an eligible 

loan, lender must similarly return those 

fees to borrowers. Lenders must 

document borrower receipt of the 

refund and be prepared to produce such 

documentation to SBA upon request. 

Failure to produce such documentation 

may result in SBA taking any action 

available under law. SBA has already 

processed most refunds. The Agency 

moved quickly to reimburse all fees 

waived as a result of the Recovery Act 

ensuring that it could adequately 

modify systems and account for and 

report on these funds. 

Conversion of Short-Term Loans 

Approved After 2/17/09 to Long-Term 

Loans 

If a borrower seeks to convert a shortterm loan approved after February 17, 

2009 to a Recovery Act eligible longterm loan, the borrower will have to 

cancel that loan and resubmit the loan 

as a new long-term loan to be eligible for 

the Recovery Act guaranty fee 

reduction. In these cases, SBA will not 

be able to refund the original short-term 

loan 1⁄4 point fee. 

Loan Cancellations for Approvals Prior 

to 2/17/09 

SBA will not allow loans approved 

prior to 2/17/09 to be cancelled and 

then resubmitted as a new loan for 

approval under the Recovery Act to 

avoid fees, unless the resubmitted loan 

is not a replacement for the original 

loan, as determined by SBA on a case 

by case basis. The intention of the fee 

elimination/reduction is to stimulate 

new lending. A loan cancelled and then 

resubmitted to avoid fees does not 

stimulate new lending and, therefore, is 

ineligible for Recovery Act treatment. 

Requests for such case by case 

consideration must be submitted by the 

lender to the Standard 7(a) Loan 

Guaranty Processing Center in Citrus 

Heights, California. The request will be 

reviewed and a recommendation 

forwarded to the Director/Office of 

Financial Assistance for approval. 

In making a case by case 

determination on resubmitted loans, the 

existence of one or more of the 

following factors will make it more 

likely that SBA will approve the 

request: (i) The loan was cancelled for 

reasons other than the passage of the 

Recovery Act (e.g., the loan was 

cancelled because the location for the 

new business was not available, 

subsequently another location became 

available and a new loan was 

requested); (ii) the new loan is for a 

different purpose (e.g., the original loan 

was for working capital but the new 

loan is for the acquisition of real estate); 

(iii) the new loan is likely to achieve 

additional economic stimulus (e.g., the 

previous loan would have preserved 

jobs but the new loan will also create 

new jobs); or (iv) the new loan would 

not be made but for the provisions of the 

Recovery Act (e.g., the loan was 

cancelled because the borrower failed to 

meet a key provision (e.g., appraisal 

value) in the original loan authorization 

and, therefore, the lender would not 

make the loan now but for the higher 

guaranty level). Based on past 

cancellation experience in SBA’s loan 

programs, SBA expects that only a 

limited number of borrowers with 

cancelled/resubmitted loans will meet 

the criteria for a new loan with reduced 

fees and/or a higher guaranty. 

In general, changes to loans approved 

prior to February 17, 2009, including 

loan increases, will be processed as 

changes to the original loan in 

accordance with SBA’s standard 

practice, and loan fees will be assessed 

under the rules in effect at the original 

approval date. For 504 loans approved 

prior to 2/17/09 that seek to add 

allowable refinancing under the 

Recovery Act, a servicing provision will 

be created that will accommodate this 

modification without the need to cancel 

the original loan. 

Funding 

Under the Recovery Act, Congress 

appropriated $375,000,000 for 

reimbursements, loan subsidies and 

loan modifications for 7(a) and 504 

loans as described in Section 501 of the 

Recovery Act. In addition, these funds 

also support the higher guarantee levels 

(up to 90% on qualifying 7(a) loans) in 

Section 502 of the Recovery Act. The 

Recovery Act does not provide an 

allocation of the funds between the 7(a) 

and 504 programs. SBA has decided to 

allocate the funds so as to result in fee 

eliminations for roughly the same 

period of time for the two programs. 

This allocation will support a program 

level of approximately $8.7 billion for 

the 7(a) program and approximately 

$3.6 billion for the 504 program with fee 

elimination/reduction under the Act. 

Use of Proceeds Restriction 

Finally, the Recovery Act provides 

that none of the funds appropriated or 

otherwise made available in the 

Recovery Act may be used by any State 

or local government, or any private 

entity, for any casino or other gambling 

establishment, aquarium, zoo, golf 

course, or swimming pool. For 

otherwise eligible loans to these small 

businesses or for these uses, lenders and 

CDCs may continue to submit 

applications in accordance with SOP 50 

10 5(A); however, all regular fees will 

apply. For Recovery Act loan guaranties, 

it will be the responsibility of the lender 

or CDC to document in the credit 

memorandum that the borrower’s use of 

proceeds does not include a restricted 

use or, if there is a restricted use 

component, the lender must document 

the other resources that the borrower 

has obtained to pay the costs allocable 

to the restricted use component. 


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Federal Register / Vol. 74, No. 108 / Monday, June 8, 2009 / Notices 27199 

Lenders and CDCs also will be expected 

to certify on the applicable eligibility 

checklist that no loan proceeds will be 

used for a restricted use. In addition, on 

7(a) Recovery Act loan guaranties it will 

be the responsibility of the borrower to 

certify that it will not use any working 

capital loan proceeds for any restricted 

use. For all Recovery Act loan 

guaranties for the construction, 

acquisition or renovation of any 

business that has a restricted use, it will 

be the responsibility of the borrower to 

certify that it has obtained alternate 

funding which may come from the 

borrower’s equity injection to pay the 

costs reasonably and in good faith 

estimated to be allocable to the 

restricted use. Failure by a lender to 

accurately identify a restricted use for a 

Recovery Act loan and remit 

appropriate fees within 90 days of loan 

approval or within 90 days of 

publication of this Notice, whichever is 

later, may result in SBA’s denial of 

liability on the loan. Please refer to SBA 

Policy Notice 5000–1105 for further 

guidance on restricted uses of Recovery 

Act loan proceeds. 

For 7(a) loans, the eligibility 

questionnaire and checklists for the 

Standard 7(a), Small/Rural Lender 

Advantage, PLP, SBA Express and Pilot 

Loan Programs have been modified to 

include an additional statement that, for 

loans made under the Recovery Act, no 

proceeds will be used for a restricted 

use. (The Standard 7(a) Eligibility 

Questionnaire can be found at http:// 

www.sba.gov/aboutsba/sbaprograms/ 

elending/lgpc/forms/index.html. The 

Small/Rural Lender Advantage (S/RLA) 

eligibility checklist (SBA Form 2301–C) 

can be found at http://www.sba.gov/ 

tools/Forms/smallbusinessforms/ 

fsforms/index.html. 

The PLP Eligibility Checklist can be 

found at http://www.sba.gov/idc/ 

groups/public/documents/ 

sba_program_office/ 

bank_plpchcklist.pdf. The SBA Express 

and Pilot Loan Program checklists (SBA 

Form 1920SX, Part C) can be found at 

http://www.sba.gov/tools/Forms/ 

smallbusinessforms/fsforms/ 

index.html.) In addition, for eligibility 

authorized SBA Express loans, SBA 

Form 2238 has been modified to include 

an additional statement that, for loans 

made under the Recovery Act, no 

proceeds will be used for a restricted 

use. (SBA Form 2238, SBA Express/ 

Patriot Express Guarantee Request 

(Eligibility Authorized) can be found at 

http://www.sba.gov/idc/groups/public/ 

documents/sba_homepage/ 

sba_forms_2238.pdf.) 

For 504 loans, the 504 and PCLP 

eligibility checklists have been modified 

to include an additional statement that, 

for loans made under the Recovery Act, 

no proceeds will be used for a restricted 

use. (The 504 Eligibility Checklist can 

be found at http://www.sba.gov/idc/ 

groups/public/documents/ 

sba_program_office/ 

bank_504checklist_submission.pdf. The 

PCLP Eligibility Information (Form 

2234) can be found at http:// 

www.sba.gov/idc/groups/public/ 

documents/sba_program_office/ 

bank_pclpchecklist2234c.doc.) 

Additional Requirements 

All other provisions of the Small 

Business Act and the Small Business 

Investment Act applicable to the 7(a) 

and 504 programs and the regulations 

promulgated thereunder that are not 

superseded by the relevant provisions of 

the Recovery Act will continue to apply 

to loans made under the Recovery Act. 

Lenders, CDCs, and/or borrowers may 

be subject to additional reporting or 

recordkeeping requirements in 

connection with loans under the 

Recovery Act. Lenders completing Form 

1086 for the sale of Recovery Act loans 

on the secondary market are advised to 

use the loan approval date for the 

guaranty fee ‘‘paid on’’ date. 

SBA may provide further guidance, if 

needed, through SBA notices published 

on SBA’s Web site, www.sba.gov. 

Authority: Public Law 111–5, Div. A, Title 

V, Section 501, 123 Stat. 115. 

Karen G. Mills, 

Administrator. 

[FR Doc. E9–13306 Filed 6–5–09; 8:45 am] 

BILLING CODE 8025–01–P 

SMALL BUSINESS ADMINISTRATION 

Business Loan Program Temporary 

Increased Guaranty Percentage 

AGENCY: U.S. Small Business 

Administration (SBA). 

ACTION: Notice and request for 

comments. 

SUMMARY: This Notice formalizes the 

implementation of Section 502 of the 

American Recovery and Reinvestment 

Act of 2009. Section 502 temporarily 

permits SBA to guarantee up to 90 

percent of qualifying small business 

loans. The increase in maximum 

guaranty percentage is intended to 

promote economic recovery by 

encouraging lenders to make small 

business loans by reducing their 

exposure to risk. While these changes 

have been implemented and are under 

way, this Notice contains the key 

provisions of SBA’s implementation of 

Section 502 in formal guidance and 

requests public comment. 

DATES: Effective Date: This Notice is 

effective June 8, 2009. 

Applicability Date: This Notice 

applies to 7(a) loan applications (or 

requests for loan numbers submitted 

through delegated lender processes, 

except SBA Express) received by SBA 

on or after March 16, 2009 until funds 

made available for this purpose are 

exhausted. 

Comment Date: Comments must be 

received on or before July 8, 2009. 

ADDRESSES: You may submit comments, 

identified by number SBA–2009–0004 

by any of the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Recovery Act Comments— 

Office of Financial Assistance, U.S. 

Small Business Administration, 409 

Third Street, SW., Suite 8300, 

Washington, DC 20416. 

• Hand Delivery/Courier: Grady 

Hedgespeth, Director, Office of 

Financial Assistance, U.S. Small 

Business Administration, 409 Third 

Street, SW., Washington, DC 20416. 

SBA will post all comments on 

www.regulations.gov. If you wish to 

submit confidential business 

information (CBI) as defined in the User 

Notice at www.regulations.gov, please 

submit the information to Grady 

Hedgespeth, Director, Office of 

Financial Assistance, U.S. Small 

Business Administration, 409 Third 

Street, SW., Washington, DC 20416, or 

send an e-mail to recovery.act@sba.gov. 

Highlight the information that you 

consider to be CBI and explain why you 

believe SBA should hold this 

information as confidential. SBA will 

review the information and make the 

final determination whether it will 

publish the information. 

FOR FURTHER INFORMATION CONTACT: The 

SBA district office nearest you; the list 

of offices can be found at http:// 

www.sba.gov/localresources/index.html. 

SUPPLEMENTARY INFORMATION: 

I. Background Information 

America’s financial crisis has created 

adverse conditions that are affecting 

small businesses, including a lack of 

liquidity in the lending system, a 

reluctance of many lenders to extend 

new loans, tightened credit standards, 

weaker finances at small businesses, 

and uncertainty about taking on new 

debt on the part of many entrepreneurs. 

As a result, lending by SBA program 

participants has significantly declined 

and SBA’s ability to ensure small 


cprice-sewell on PRODPC61 with NOTICES