32006 Federal Register / Vol. 74, No. 127 / Monday, July 6, 2009 / Notices 

• The impact of the proposed change 

is monitored with performance 

measurement strategies. 

10 CFR 50.36(c)(3) states ‘‘Technical 

specifications will include items in the 

following categories: Surveillance 

Requirements. Surveillance 

Requirements are requirements relating 

to test, calibration, or inspection to 

assure that the necessary quality of 

systems and components is maintained, 

that facility operation will be within 

safety limits, and that the limiting 

conditions for operation will be met.’’ 

The NRC staff finds that with the 

proposed relocation of surveillance 

frequencies to an owner-controlled 

document and administratively 

controlled in accordance with the TS 

SFCP, [Licensee] continues to meet the 

regulatory requirement of 10 CFR 50.36, 

and specifically, 10 CFR 50.36(c)(3), 

surveillance requirements. 

The NRC has concluded, on the basis 

of the considerations discussed above, 

that (1) there is reasonable assurance 

that the health and safety of the public 

will not be endangered by operation in 

the proposed manner, (2) such activities 

will be conducted in compliance with 

the NRC’s regulations, and (3) the 

issuance of the amendments will not be 

inimical to the common defense and 

security or to the health and safety of 

the public. 

4.0 State Consultation 

In accordance with the NRC’s 

regulations, the [ ] State official was 

notified of the proposed issuance of the 

amendment. The State official had [(1) 

no comments or (2) the following 

comments—with subsequent 

disposition by the staff]. 

5.0 Environmental Consideration 

The amendment[s] change[s] a 

requirement with respect to the 

installation or use of a facility 

component located within the restricted 

area as defined in 10 CFR Part 20 or 

surveillance requirements. The NRC 

staff has determined that the 

amendment involves no significant 

increase in the amounts, and no 

significant change in the types, of any 

effluents that may be released offsite, 

and that there is no significant increase 

in individual or cumulative 

occupational radiation exposure. The 

NRC has previously issued a proposed 

finding that the amendment involves no 

significant hazards consideration and 

there has been no public comment on 

such finding published [DATE] ([ ] FR 

[ ]). Accordingly, the amendment meets 

the eligibility criteria for categorical 

exclusion set forth in 10 CFR 51.22(c)(9) 

and c(10). Pursuant to 10 CFR 51.22(b), 

no environmental impact statement or 

environmental assessment need be 

prepared in connection with the 

issuance of the amendment. 

6.0 References 

1. TSTF–425, Revision 3, ‘‘Relocate 

Surveillance Frequencies to Licensee 

Control—RITSTF Initiative 5b,’’ March 

18, 2009 (ADAMS Accession Number: 

ML090850642). 

2. NEI 04–10, Revision 1, ‘‘Risk-Informed 

Technical Specifications Initiative 5B, 

Risk-Informed Method for Control of 

Surveillance Frequencies,’’ April 2007 

(ADAMS Accession Number: 

ML071360456). 

3. Regulatory Guide 1.177, ‘‘An Approach for 

Plant-Specific, Risk-Informed Decisionmaking: Technical Specifications,’’ 

August 1998 (ADAMS Accession 

Number: ML003740176). 

4. Regulatory Guide 1.200, Rev. 1 ‘‘An 

Approach for Determining the Technical 

Adequacy of Probabilistic Risk 

Assessment Results for Risk-Informed 

Activities,’’ Revision 1, January 2007 

(ADAMS Accession Number: 

ML070240001). 

5. Regulatory Guide 1.174, ‘‘An Approach for 

Using Probabilistic Risk Assessment in 

Risk-Informed Decisions on PlantSpecific Changes to the Licensing Basis,’’ 

NRC, August 1998 (ADAMS Accession 

Number: ML003740133). 

6. ASME PRA Standard ASME RA–Sb–2005, 

Addenda to ASME RA–S–2002, 

‘‘Standard for Probabilistic Risk 

Assessment for Nuclear Power Plant 

Application.’’ 

7. NEI 00–02, Rev. 1 ‘‘Probabilistic Risk 

Assessment (PRA) Peer Review Process 

Guidance, Rev. 1, May 2006 (ADAMS 

Accession Number: ML061510621). 

8. NEI 05–04, ‘‘Process for Performing 

Follow-On PRA Peer Reviews Using the 

ASME PRA Standard’’, Rev. 0, August 

2006. 

[FR Doc. E9–15780 Filed 7–2–09; 8:45 am] 

BILLING CODE 7590–01–P 

SMALL BUSINESS ADMINISTRATION 

Dealer Floor Plan Pilot Initiative 

AGENCY: U.S. Small Business 

Administration (SBA). 

ACTION: Notice and request for 

comments. 

SUMMARY: SBA is introducing a guaranty 

loan pilot initiative to make available 

7(a) loan guaranties for lines of credit 

that provide floor plan financing to 

support that sector of the Nation’s retail 

community that traditionally requires 

floor plan financing in order to acquire 

titleable inventory. SBA is creating this 

pilot initiative to help address the 

significant decline in the number of 

lenders that have provided the majority 

of this type of financing in recent years. 

In the automobile industry, this often 

included affiliates of the manufacturers 

themselves. Under the Dealer Floor Plan 

Pilot Initiative, which will be available 

through September 30, 2010, SBA will 

guarantee up to 75 percent of a floor 

plan line of credit between $500,000 

and $2,000,000 to eligible dealers of 

titleable assets, including but not 

limited to automobiles, motorcycles, 

boats (including boat trailers), 

recreational vehicles and manufactured 

housing (mobile homes). 

DATES: Effective Date: The Dealer Floor 

Plan Pilot Initiative will be effective on 

July 1, 2009, and will remain in effect 

through September 30, 2010. SBA will 

begin accepting applications on July 1, 

2009 and begin reviewing and 

approving applications the week of July 

6, 2009. 

Comment Date: Comments must be 

received on or before August 5, 2009. 

ADDRESSES: You may submit comments, 

identified by SBA docket number SBA– 

2009–0009 by any of the following 

methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Dealer Floor Plan Pilot 

Initiative 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 

http://www.regulations.gov. If you wish 

to submit confidential business 

information (CBI) as defined in the User 

Notice at http://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 

dealerfloorplancomments@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: 

Sloan Coleman, Office of Financial 

Assistance, U.S. Small Business 

Administration, 409 Third Street, SW., 

Washington, DC 20416; (202) 205–7737; 

w.coleman@sba.gov. 

SUPPLEMENTARY INFORMATION: 

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Federal Register / Vol. 74, No. 127 / Monday, July 6, 2009 / Notices 32007 

1. Background Information 

America’s financial crisis has created 

adverse conditions that are affecting 

small businesses, including reduced 

liquidity in the lending system, a 

reluctance of many lenders to extend 

new loans, tightened credit standards 

and weaker finances at small 

businesses. This has been especially 

true in the area of the financing of 

dealer floor plans for automobiles, 

motorcycles, boats, recreational vehicles 

and similar titled vehicles. In the case 

of the estimated $100 billion in auto 

floor plan lending, for example, the big 

three U.S. auto manufacturers, which 

previously provided roughly one-third 

of the lending, have stopped accepting 

new requests for floor plan financing. 

Banks are not able to meet the 

remaining financing needs and four 

major lenders representing 

approximately $2 billion of the market 

have recently issued 90–120 day closing 

notices to their dealers with existing 

financing. The National Automobile 

Dealers Association (NADA) estimates 

that 30% of its membership (or 

approximately 5,000 dealers) have 

inventories less than $2 million and 

could thus be potential beneficiaries of 

a new SBA offering. 

In addition, these retailers have been 

especially hard hit by the recent 

financial difficulties of several 

manufacturers coupled with a fall off in 

sales and longer cycle times for their 

inventory turnover. When the shortage 

of available financing is coupled with 

the decline in sales, even relatively 

strong dealers who could normally 

weather the current recession are facing 

challenges. This, in turn, has a serious 

deleterious affect on local communities 

as these dealers are often critical 

contributors to local economies and 

civic institutions. 

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) 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. 

Current SBA regulations and policy 

prohibit dealer floor plan financing; 

however, it is not statutorily prohibited. 

In the early history of SBA lending, the 

Agency had a role in the underwriting 

and servicing of most, if not all, of its 

loan portfolio. The Agency historically 

did not make or guarantee floor plan 

financing arrangements because such 

credit was deemed to be widely 

available from conventional sources and 

because the Agency did not have the 

capabilities to maintain servicing for 

such lines of credit in the event it was 

called upon to service the loan. 

With requirements now in place for 

the lender to perform most servicing 

functions, even after a default and 

guaranty purchase, and because there is 

evidence that there are a diminishing 

number of lenders willing to provide 

floor plan financing to smaller dealers, 

the historic reasons for the restrictions 

against floor plan financing have 

become less of a concern, particularly in 

the current economic climate. In 

addition, SBA believes that in this 

recession it is appropriate to ensure that 

guaranties are available for the widest 

possible types of small business 

financial assistance, including the 

guaranty of floor plan lines of credit, 

while maintaining risk within prudent 

levels. 

The SBA has always been able to 

guarantee loans made to eligible small 

businesses that utilize floor plan 

financing in order to help them acquire 

or repair their facility, purchase 

machinery and equipment used in their 

operation, or provide working capital. 

Dealers needing floor plan financing 

had to obtain it separately without SBA 

support. By adding the ability to 

guarantee floor plan lines through this 

pilot program, SBA will enable its 

lending partners to be in a better 

position to offer a full array of financing 

to those businesses that need such 

financing arrangements during the 

current economic environment. 

This pilot initiative is intended to 

complement the provisions of the 

Recovery Act and is, therefore, set to 

expire on September 30, 2010. When the 

initial pilot phase is concluded, SBA 

will evaluate the initiative to determine 

if the pilot will be extended, certain 

aspects made a permanent part of SBA’s 

lending programs, or terminated. A key 

determinate in that review will be the 

extent to which floor plan financing is 

available from the private market, and 

whether there is a sufficient need for 

further government support. 

Loans approved under this pilot 

initiative will qualify for the borrower 

fee eliminations implemented on March 

16, 2009 under the temporary authority 

provided in section 501 of the Recovery 

Act, while funds for fee eliminations are 

available. Funds available for fee relief 

under the Recovery Act may be 

exhausted prior to the expiration date of 

the pilot (September 30, 2010). Loans 

approved under this pilot, however, will 

not be subject to the higher guaranty 

provisions of section 502 of the 

Recovery Act. SBA is limiting the 

guaranty percentage to the maximum 

allowed in the Small Business Act as 

opposed to the higher guaranty 

percentage allowed temporarily under 

the Recovery Act in part to ensure that 

the data collected during the pilot phase 

provides a meaningful basis for which 

to determine if the pilot should be 

extended, made a permanent part of 

SBA’s lending programs, or terminated. 

In addition, SBA is limiting the 

maximum guaranty percentage to 75 

percent so that the pilot will be neutral 

from a credit subsidy standpoint and 

therefore not require an additional 

appropriation of subsidy cost, as 

required under the Federal Credit 

Reform Act (2 U.S.C. 661–661f). 

2. Comments 

The intent of the Dealer Floor Plan 

Pilot Initiative is to complement SBA’s 

other efforts under the Recovery Act to 

ensure credit is available to America’s 

small businesses. Although the pilot 

initiative and this Notice are 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 August 5, 2009. 

The SBA will consider these comments 

and the need for making any revisions 

as a result of these comments. 

3. Dealer Floor Plan Pilot Initiative 

Overview 

Under the Dealer Floor Plan Pilot 

Initiative, SBA is implementing a 7(a) 

loan guaranty product targeted to retail 

dealers of titleable assets, including but 

not limited to automobiles, motorcycles, 

boats (including boat trailers), 

recreational vehicles and manufactured 

housing (mobile homes). 

Eligibility 

In addition to standard 7(a) eligibility 

requirements, the eligibility of 

applicants for a floor plan line of credit 

guaranteed under the Dealer Floor Plan 

Pilot Initiative will be limited to retail 

dealers of titleable inventory (both new 

and used) that require licensing and/or 

registration by a State authority after 

acquisition. Eligible small businesses 

include, but are not limited to, dealers 

of automobiles, motorcycles, boats 

(including boat trailers), recreational 

vehicles and manufactured housing 

(mobile homes). 

SBA size regulations, including those 

pertaining to affiliation set out in 13 

CFR Part 121, apply to the Dealer Floor 

Plan Pilot Initiative. These regulations 

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32008 Federal Register / Vol. 74, No. 127 / Monday, July 6, 2009 / Notices 

include the recently added alternative 

7(a) size standard as published in the 

Federal Register on May 5, 2009 (74 FR 

20577). 

Loan Amount, Maximum Guaranty 

Percentage and Maturity 

Loans under the Dealer Floor Plan 

Pilot Initiative will have a minimum 

loan amount of $500,000 and a 

maximum loan amount outstanding at 

any one time of $2,000,000. 

The maximum guaranty percentage 

will be up to 75 percent of the 

outstanding loan. As noted above, the 

increased guaranty percentage of up to 

90 percent allowed under section 502 of 

the Recovery Act will not be available 

for loans approved under this pilot 

initiative. 

The maximum maturity on lines of 

credit approved under this pilot 

initiative will be limited to five (5) 

years. 

Use of Proceeds and Repayment 

Floor plan lines of credit guaranteed 

by SBA will be revolving lines of credit. 

The proceeds must be used either for 

the acquisition of titleable inventory for 

retail sales or to refinance existing floor 

plan lines of credit with another lender. 

Repayment of these lines will occur as 

the acquired inventory is sold. Proceeds 

may not be used for any other purpose, 

including to refinance any existing 

same-institution floor plan line of 

credit. 

Interest Rates 

The maximum interest rates for loans 

under the Dealer Floor Plan Pilot 

Initiative are the same as those allowed 

under SBA regulations at 13 CFR 

120.213–120.214 for the 7(a) program. 

Collateral 

Collateral must include a first 

perfected security interest in all titleable 

inventory acquired with any portion of 

the proceeds from the SBA-guaranteed 

floor plan line of credit. The floor plan 

line of credit which SBA guarantees 

does not have to be the sole floor plan 

line. However, if more than one floor 

plan line exists to any one business, 

then the inventory supported by each 

line is to be separately accounted for 

and the sale proceeds (or at least the 

percentage of the sale proceeds equal to 

the percentage of the cost financed 

under the line) of any inventory 

acquired with any portion of the floor 

plan line guaranteed by SBA must be 

used to reduce the balance on that line. 

In addition, dealers with multiple floor 

plan lines for multiple product lines 

(manufacturers or new/used) with 

multiple floor plan creditors will be 

required to have appropriate delineated 

inter-creditor agreements to enable 

proper security interest perfection. 

Allowable Fees 

The SBA guaranty fee and the lender’s 

annual servicing fee (SBA ‘‘On-Going 

Guaranty Fee’’) set forth in 13 CFR 

120.220 apply to loans approved under 

this pilot initiative. As noted above, 

loans approved under the Dealer Floor 

Plan Pilot Initiative are eligible for the 

borrower fee elimination implemented 

under the temporary authority provided 

in section 501 of the Recovery Act, to 

the extent such appropriations for the 

cost of fee reductions remain available. 

For loans approved under this pilot 

initiative, lenders may charge the 

borrower the same fees allowed under 

SBA’s 7(a) loan program with the 

exception of the extraordinary servicing 

fee. For loans approved under this pilot 

initiative, SBA will allow lenders to 

charge an extraordinary servicing fee 

that is higher than the 2 percent allowed 

by Agency regulations at 13 CFR 

120.221(b) provided that the fee charged 

is reasonable and prudent based on the 

level of extraordinary effort required to 

adequately service the floor plan line. In 

addition, if the lender currently 

provides floor plan financing to its 

customers, the lender may not charge 

higher fees for its SBA-guaranteed floor 

plan lines of credit than it charges for 

its similarly-sized, non-SBA guaranteed 

floor plan lines of credit. SBA’s 

guaranty does not extend to 

extraordinary servicing fees and, at time 

of guaranty purchase, SBA will not pay 

any portion of such fees. 

Maximum Advance Rates 

Lenders will be allowed a maximum 

advance rate of 90% on new automobile 

inventory and 80% on all other 

inventory for purposes of establishing 

the maximum SBA guaranty. Lenders 

may establish an advance rate higher 

than this; however, the maximum SBA 

guaranty will be no more than 75% of 

90% for new automobile inventory or 

75% of 80% for all other inventory. For 

example, if a lender has an advance rate 

of 100% for all inventory, the maximum 

SBA guaranty will be 67.5% for new 

automobile inventory and 60% for all 

other inventory financed by the lender. 

The lender will need to identify the 

advance rate and calculate the 

maximum allowable guaranty 

percentage for each loan on the Lender’s 

Application for Guaranty (SBA Form 4– 

I). (The SBA Form 4–I can be found at 

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

smallbusinessforms/fsforms/ 

index.html.) 

Secondary Market and Participating 

Lender Financings or Other 

Conveyances 

SBA loan guaranties made under this 

pilot initiative may not be sold under 

Agency regulations at 13 CFR Part 120, 

Subpart F—Secondary Market. In 

addition, SBA loan guaranties approved 

under this pilot initiative may not be 

included in any participating lender 

financings or other conveyances, 

including securitizations, participations 

and pledges, as described in Agency 

regulations at 13 CFR 120.420 through 

120.435. 

Eligible Lenders 

All SBA lenders with an executed 

Loan Guaranty Agreement (SBA Form 

750) may participate in this pilot 

initiative. Lenders participating in the 

pilot initiative must have designated 

personnel who are responsible for 

making and servicing floor plan lines of 

credit. In addition, if a lender has less 

than $15 million in floor plan lines of 

credit in its current portfolio or has been 

making floor plan lines of credit for less 

than 5 years (‘‘Less Experienced Floor 

Plan Lenders’’), the lender may only 

approve lines under the pilot initiative 

to customers with which it has a 

banking relationship that existed prior 

to the effective date of this pilot 

initiative and must submit all Dealer 

Floor Plan applications to the Standard 

7(a) Loan Guaranty Processing Center 

(LGPC) for approval over the life of the 

pilot. It will be the responsibility of the 

lender to document the existing 

relationship with the borrower in the 

credit memorandum, which will be 

required to be submitted to SBA as part 

of any guaranty purchase request. 

Lenders with existing floor plan 

financing operations must administer 

their SBA-guaranteed floor plan 

financing operation in conformance 

with the existing policies and 

procedures used for their similarlysized, non-SBA guaranteed floor plan 

lines, including risk management 

policies and procedures. Lenders who 

have not participated in floor plan 

financing must develop policies and 

procedures specific to floor plan 

financing, including risk management 

policies and procedures. 

When developing policies and 

procedures specific to floor plan 

financing, lenders may follow guidance 

provided by their primary Federal 

regulator or, if none is available, lenders 

may follow the guidance on floor plan 

financing provided by the Office of the 

Comptroller of the Currency (OCC) in 

Section 210 of its Examiner’s Handbook. 

(The OCC Examiner’s Handbook can be 

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Federal Register / Vol. 74, No. 127 / Monday, July 6, 2009 / Notices 32009 

found at http://www.occ.treas.gov/ 

handbook/floorplan1.pdf.) At a 

minimum, the policies and procedures 

of all lenders participating in this pilot 

initiative must address the following: (1) 

The personnel who will be responsible 

for making and servicing floor plan 

loans; (2) the collateral monitoring 

procedures, which must include floor 

checks (physical inventories) conducted 

at least monthly and on a random 

surprise basis; (3) a requirement that the 

borrower provide to the lender copies of 

its monthly manufacturer’s dealership 

financial statement (for dealers of new 

inventory) or monthly financial 

statements (for dealers of used 

inventory) no later than 7 days after the 

end of the previous month; (4) the 

procedures in place to ensure prompt 

payment on the line upon the sale of 

inventory; (5) all policies and 

procedures specific to liquidation that 

are unique to floor plan financing; and 

(6) the fees the lender will charge to 

service these loans. Lenders may use 

contracted services and/or available 

software programs to assist with 

monitoring and tracking the collateral. 

Application Forms and Authorization 

Each lender participating in the pilot 

initiative must submit its first 

application under the pilot following 

Standard 7(a) procedures to the LGPC. 

SBA will begin accepting applications 

under the Dealer Floor Plan Pilot 

Initiative on July 1, 2009 and will begin 

reviewing and approving the 

applications the week of July 6, 2009. 

After the initial application submitted 

under the pilot initiative is approved by 

the LGPC, lenders may submit 

applications for loan guaranties under 

the Dealer Floor Plan Pilot Initiative 

through Standard 7(a), Certified Lender 

Program (CLP) or Preferred Lender 

Program (PLP) processing methods 

using the existing SBA forms applicable 

to the processing method, except for 

Less Experienced Floor Plan Lenders. 

These lenders will continue to submit 

their floor plan applications to the LGPC 

for the life of the pilot. In order to 

submit an application for guaranty 

under this pilot initiative through PLP 

procedures, PLP lenders must ensure 

that the application for a floor plan line 

of credit meets the requirements for 

delegated processing as well as the 

requirements specified in this Notice. 

SBA will issue instructions for lenders 

on how to complete existing SBA 

application forms to include floor plan 

lines of credit. 

SBA will incorporate into the 

Standard 7(a) Authorization Boilerplate 

applicable provisions related to floor 

plan financing. 

In addition to SBA’s existing servicing 

and liquidation requirements as set 

forth in Agency regulations and 

Standard Operating Procedures (SOPs) 

50 50 and 50 51, lenders will be 

required to service any floor plan line of 

credit guaranteed by SBA with the 

requirement that as any item of 

inventory acquired with the line is sold 

the proceeds from the sale (or at least 

the percentage of the sale proceeds 

equal to the percentage of the cost 

financed under the line) must be 

submitted to the lender to reduce the 

balance on the line pursuant to the sold 

inventory item. (SOPs 50 50 and 50 51 

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

tools/resourcelibrary/sops/index.html.) 

Lenders will be required to 

periodically report on disbursement and 

collection activity in addition to their 

1502 reporting, to allow SBA to conform 

to accounting and budgeting 

requirements under credit reform, as 

well as to evaluate and monitor 

portfolio performance. SBA will provide 

further information on this additional 

reporting requirement in the coming 

weeks. 

Guaranty Purchase 

In addition to the standard purchase 

documentation required by SBA, with 

any guaranty purchase request under 

the pilot initiative lenders will be 

required to provide copies of the floor 

check reports and the monthly 

manufacturer’s dealership financial 

statements (for dealers of new 

inventory) or monthly financial 

statements (for dealers of used 

inventory) for the twelve (12) months 

prior to default. Also, as stated above, 

Less Experienced Floor Plan Lenders 

may only approve lines under the pilot 

initiative to customers with which it has 

a banking relationship that existed prior 

to the effective date of this pilot 

initiative. It will be the responsibility of 

the lender to document the existing 

relationship with the borrower in the 

credit memorandum, which will be 

required to be submitted to SBA as part 

of any guaranty purchase request. 

Further, as part of the guaranty purchase 

review, SBA will review the lender’s 

policies and procedures specific to floor 

plan financing and the lender’s 

compliance with those policies and 

procedures. In addition to the grounds 

set forth in 13 CFR 120.524, the lender’s 

failure to comply with its policies and 

procedures or the terms and procedures 

set forth in this Federal Register notice 

may result in denial of SBA’s guaranty 

on the loan, in full or in part. 

Lender Oversight 

As part of its ongoing lender oversight 

activities, SBA’s Office of Credit Risk 

Management (OCRM) will review the 

lender’s policies and procedures 

specific to floor plan financing, 

including risk management policies and 

procedures, and the lender’s compliance 

with those policies and procedures. 

Upon receipt of a lender’s initial 

application under the pilot initiative, 

the Standard 7(a) LGPC will notify 

OCRM who will request a copy of the 

lender’s policies and procedures 

governing floor plan financing as an 

initial step in its oversight of this pilot 

initiative. In addition, once a lender has 

processed 15 loans under this pilot 

initiative, the Office of Financial 

Assistance will alert OCRM to that fact 

for possible additional lender oversight, 

such as an off-site review of the lender’s 

SBA-guaranteed floor plan portfolio 

and/or inclusion of the lender’s floor 

plan loans in a targeted review or as part 

of the lender’s next scheduled on-site 

review. 

Pursuant to the authority provided to 

SBA under 13 CFR 120.3 to waive 

certain regulations in establishing and 

testing pilot loan initiatives for a limited 

period of time, SBA will waive the 

following regulations, which otherwise 

apply to 7(a) loans, for loans made 

under the Dealer Floor Plan Pilot 

Initiative only: (1) 13 CFR 120.130(c), 

which prohibits floor plan financing or 

other revolving lines of credit as an 

allowable use of proceeds, is waived so 

this type of financing can be guaranteed 

by SBA under the Dealer Floor Plan 

Pilot Initiative; (2) 13 CFR 120.221(b), 

which limits extraordinary servicing 

fees to 2% of the outstanding balance on 

an annual basis, is being waived so 

lenders can charge more than 2% on 

loans approved under this pilot 

initiative as long as the fees are not 

higher than those charged on the 

lender’s similarly-sized, non-SBA 

guaranteed floor plan lines of credit and 

as long as the fees are reasonable and 

prudent based on the level of 

extraordinary effort required to 

adequately service the floor plan line; 

(3) 13 CFR 120.390, the regulation that 

covers all Revolving Credit other than 

EWCP loans, is waived so the Dealer 

Floor Plan Pilot Initiative can be carried 

out without having these loans 

classified as CAPLines loans; (4) 13 CFR 

Part 120, Subpart F—Secondary Market, 

is being waived because loans approved 

under the Dealer Floor Plan Pilot 

Initiative cannot be sold on the 

secondary market; and (5) 13 CFR 

120.420 through 120.435 are being 

waived because loans approved under 

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32010 Federal Register / Vol. 74, No. 127 / Monday, July 6, 2009 / Notices 

the Dealer Floor Plan pilot initiative 

cannot be included in any participating 

lender financings or other conveyances, 

including securitizations, participations 

and pledges. 

All other provisions of the Small 

Business Act applicable to the 7(a) 

program and the regulations 

promulgated thereunder that are not 

superseded by any provision of this 

Notice will continue to apply to loans 

made under this pilot initiative. 

Lenders must use prudent lending 

practices in the making and servicing of 

SBA-guaranteed floor plan lines of 

credit and must comply with all SBA 

Loan Program Requirements that are not 

superseded by any provisions of this 

Notice. 

In accordance with section 7(a)(25) of 

the Small Business Act (15 U.S.C. 636), 

loans approved under this pilot 

initiative are limited to not more than 

10 percent of the total number of 7(a) 

loans approved in any fiscal year. 

SBA may provide further guidance, if 

needed, through SBA notices published 

on SBA’s Web site, http://www.sba.gov. 

Questions on the Dealer Floor Plan 

Pilot Initiative may be directed to the 

Lender Relations Specialist in the local 

SBA district office. The local SBA 

district office may be found at http:// 

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

Authority: 15 U.S.C. 636(a)(25) and 13 CFR 

120.3. 

Grady B. Hedgespeth, 

Director, Office of Financial Assistance. 

[FR Doc. E9–15856 Filed 6–30–09; 4:15 pm] 

BILLING CODE 8025–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #11802 and #11803] 

Missouri Disaster # MO–00038 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a Notice of the 

Presidential declaration of a major 

disaster for Public Assistance Only for 

the State of Missouri (FEMA–1847–DR), 

dated 06/19/2009. 

Incident: Severe Storms, Tornadoes, 

and Flooding. 

Incident Period: 05/08/2009 through 

05/16/2009. 

DATES: Effective Date: 06/19/2009. 

Physical Loan Application Deadline 

Date: 08/18/2009. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 03/17/2010. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street, SW., Suite 6050, 

Washington, DC 20416. 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that as a result of the 

President’s major disaster declaration on 

06/19/2009, Private Non-Profit 

organizations that provide essential 

services of governmental nature may file 

disaster loan applications at the address 

listed above or other locally announced 

locations. 

The following areas have been 

determined to be adversely affected by 

the disaster: 

Primary Counties: Adair, Barton, 

Bollinger, Camden, Cape Girardeau, 

Cedar, Crawford, Dade, Dallas, Dent, 

Douglas, Greene, Grundy, Hickory, 

Howell, Iron, Jasper, Knox, Laclede, 

Lewis, Livingston, Madison, Maries, 

Marion, Miller, Newton, Oregon, 

Ozark, Perry, Phelps, Polk, Pulaski, 

Ray, Reynolds, Ripley, Saint Francois, 

Sainte Genevieve, Saline, Shannon, 

Shelby, Stone, Sullivan, Texas, 

Vernon, Washington, Wayne, 

Webster, Wright. 

The Interest Rates are: 

Percent 

Other (Including Non-Profit Organizations) with Credit Available 

Elsewhere; ................................ 4.500 

Businesses and Non-Profit Organizations without Credit Available Elsewhere ......................... 4.000 

The number assigned to this disaster 

for physical damage is 11802B and for 

economic injury is 11803B. 

(Catalog of Federal Domestic Assistance 

Numbers 59002 and 59008) 

James E. Rivera, 

Acting Associate Administrator for Disaster 

Assistance. 

[FR Doc. E9–15817 Filed 7–2–09; 8:45 am] 

BILLING CODE 8025–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #11796 and #11797] 

Kentucky Disaster #KY–00026 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a Notice of the 

Presidential declaration of a major 

disaster for Public Assistance Only for 

the State of Kentucky (FEMA–1841– 

DR), dated 05/29/2009. 

Incident: Severe Storms, Tornadoes, 

Flooding, and Mudslides. 

Incident Period: 05/03/2009 through 

05/20/2009. 

DATES: Effective Date: 05/29/2009. 

Physical Loan Application Deadline 

Date: 07/28/2009. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 03/01/2010. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street, SW., Suite 6050, 

Washington, DC 20416. 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that as a result of the 

President’s major disaster declaration on 

05/29/2009, Private Non-Profit 

organizations that provide essential 

services of governmental nature may file 

disaster loan applications at the address 

listed above or other locally announced 

locations. 

The following areas have been 

determined to be adversely affected by 

the disaster: 

Primary Counties: Ballard, Breathitt, 

Carlisle, Clay, Crittenden, Estill, 

Floyd, Fulton, Grayson, Hickman, 

Jackson, Knott, Lawrence, Lee, Leslie, 

Letcher, Madison, Magoffin, Marshall, 

Owsley, Perry, Pike, Russell, Trigg. 

The Interest Rates are: 

Percent 

Other (Including Non-Profit Organizations) with Credit Available 

Elsewhere ................................. 4.500 

Businesses and Non-Profit Organizations without Credit Available Elsewhere ......................... 4.000 

The number assigned to this disaster 

for physical damage is 11796B and for 

economic injury is 11797B. 

(Catalog of Federal Domestic Assistance 

Numbers 59002 and 59008) 

James E. Rivera, 

Acting Associate Administrator for Disaster 

Assistance. 

[FR Doc. E9–15713 Filed 7–2–09; 8:45 am] 

BILLING CODE 8025–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #11798 and #11799] 

Kansas Disaster # KS–00034 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

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