Vol. 82 Thursday, 

No. 163 August 24, 2017 

Part XIX 

Small Business Administration 

Semiannual Regulatory Agenda 

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40362 Federal Register / Vol. 82, No. 163 / Thursday, August 24, 2017 / Unified Agenda 

SMALL BUSINESS ADMINISTRATION 

13 CFR Ch. I 

Semiannual Regulatory Agenda 

AGENCY: U.S. Small Business 

Administration (SBA). 

ACTION: Semiannual regulatory agenda. 

SUMMARY: This Regulatory Agenda is a 

semiannual summary of current and 

projected regulatory and deregulatory 

actions and completed actions of the 

Small Business Administration (SBA). 

SBA expects that this summary 

information will enable the public to be 

more aware of, and effectively 

participate in, SBA’s regulatory and 

deregulatory activities. SBA invites the 

public to submit comments on any 

aspect of this Agenda. 

FOR FURTHER INFORMATION CONTACT: 

General 

Please direct general comments or 

inquiries to Imelda A. Kish, Law 

Librarian, U.S. Small Business 

Administration, 409 Third Street SW., 

Washington, DC 20416, (202) 205–6849, 

imelda.kish@sba.gov. 

Specific 

Please direct specific comments and 

inquiries on individual regulatory 

activities identified in this Agenda to 

the individual listed in the summary of 

the regulation as the point of contact for 

that regulation. 

SUPPLEMENTARY INFORMATION: SBA is 

fully committed to implementing the 

Administration’s regulatory reform 

policies, as established by Executive 

Order 13771, Reducing Regulation and 

Controlling Regulatory Costs (January 

30, 2017) and Executive Order 13777, 

Enforcing the Regulatory Reform 

Agenda (February 24, 2017). In order to 

fully implement the goal of these 

executive orders, SBA seeks feedback 

from the public in identifying any SBA 

regulations that affected parties believe 

impose unnecessary burdens or costs 

that exceed their benefits; eliminate jobs 

or inhibit job creation; or are ineffective 

or outdated. 

Publication in the Federal Register is 

mandated for rules that, under the 

Regulatory Flexibility Act (5 U.S.C. 

602), are likely to have a significant 

economic impact on a substantial 

number of small entities. Additional 

information on these rules is included 

in the complete Regulatory Agenda, 

which is available online at 

www.reginfo.gov in a format that greatly 

enhances the public’s ability to obtain 

information about SBA’s rules. 

Linda E. McMahon, 

Administrator. 

SMALL BUSINESS ADMINISTRATION—PROPOSED RULE STAGE

Sequence No. Title Regulation 

Identifier No. 

204 .................... Small Business Development Center Program Revisions .............................................................................. 3245–AE05 

205 .................... Small Business HUBZone Program; Government Contracting Programs; Office of Hearings and Appeals 3245–AG38

206 .................... Women-Owned Small Business and Economically Disadvantaged Women-Owned Small Business—Certification.3245–AG75 

207 .................... Ownership and Control of Service-Disabled Veteran-Owned Small Business Concerns ............................... 3245–AG85 

208 .................... Small Business Government Contracting and National Defense Authorization Acts of 2016 and 2017 

Amendments.

3245–AG86 

SMALL BUSINESS ADMINISTRATION—FINAL RULE STAGE

Sequence No. Title Regulation 

Identifier No. 

209 .................... Miscellaneous Amendments to Business Loan Programs and Surety Bond Guarantee Program ................. 3245–AF85 

210 .................... Agent Revocation and Suspension Procedures .............................................................................................. 3245–AG40 

211 .................... Small Business Investment Companies; Passive Business Expansion & Technical Clarifications ................ 3245–AG67 

212 .................... Small Business Timber Set-Aside Program .................................................................................................... 3245–AG69 

SMALL BUSINESS ADMINISTRATION—LONG-TERM ACTIONS

Sequence No. Title Regulation 

Identifier No. 

213 .................... Small Business Size Standards; Alternative Size Standard for 7(a), 504, and Disaster Loan Programs ...... 3245–AG16 

214 .................... Disaster Loan Programs; Federal Flood Risk Management Standard ........................................................... 3245–AG77 

SMALL BUSINESS ADMINISTRATION—COMPLETED ACTIONS

Sequence No. Title Regulation 

Identifier No. 

215 .................... Credit for Lower Tier Small Business Subcontracting ..................................................................................... 3245–AG71 

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Federal Register / Vol. 82, No. 163 / Thursday, August 24, 2017 / Unified Agenda 40363 

SMALL BUSINESS ADMINISTRATION 

(SBA) 

Proposed Rule Stage 

204. Small Business Development 

Center Program Revisions 

Legal Authority: 15 U.S.C. 634(b)(6); 

15 U.S.C. 648 

Abstract: Updates the Small Business 

Development Center (SBDC) program 

regulations by proposing to amend: (1) 

Procedures for approving applications 

for new Host SBDCs; (2) approval 

procedures for travel outside the 

continental U.S. and U.S. territories; (3) 

procedures and requirements regarding 

findings and disputes resulting from 

financial exams, programmatic reviews, 

accreditation reviews, and other SBA 

oversight activities; (4) requirements for 

new or renewal applications for SBDC 

grants, including the requirements for 

electronic submission through the 

approved electronic Government 

submission facility; (5) procedures 

regarding the determination to affect 

suspension, termination or non-renewal 

of an SBDC’s cooperative agreement; 

and (6) provisions regarding the 

collection and use of the individual 

SBDC client data. 

Timetable: 

Action Date FR Cite 

ANPRM ............... 04/02/15 80 FR 17708 

ANPRM Comment 

Period End.

06/01/15 

NPRM .................. 08/00/17 

Regulatory Flexibility Analysis 

Required: Yes. 

Agency Contact: Adriana MenchacaGendron, Associate Administrator for 

Small Business Development Centers, 

Small Business Administration, 409 3rd 

Street SW., Washington, DC 20416, 

Phone: 202 205–6988. 

RIN: 3245–AE05 

205. Small Business Hubzone Program; 

Government Contracting Programs; 

Office of Hearings and Appeals 

Legal Authority: 15 U.S.C. 657a 

Abstract: SBA has been reviewing its 

processes and procedures for 

implementing the HUBZone program 

and has determined that several of the 

regulations governing the program 

should be amended in order to resolve 

certain issues that have arisen. As a 

result, the proposed rule would 

constitute a comprehensive revision of 

part 126 of SBA’s regulations to clarify 

current HUBZone Program regulations, 

and implement various new procedures. 

The amendments will make it easier for 

participants to comply with the program 

requirements and enable them to 

maximize the benefits afforded by 

participation. In developing this 

proposed rule, SBA will focus on the 

principles of Executive Orders 12866, 

13771 and 13563 to determine whether 

portions of regulations should be 

modified, streamlined, expanded or 

repealed to make the HUBZone program 

more effective and/or less burdensome 

on small business concerns. At the same 

time, SBA will maintain a framework 

that helps identify and reduce waste, 

fraud, and abuse in the program. 

Timetable: 

Action Date FR Cite 

NPRM .................. 09/00/17 

Regulatory Flexibility Analysis 

Required: Yes. 

Agency Contact: Mariana Pardo, 

Director, Office of HUBZone, Small 

Business Administration, 409 3rd Street 

SW., Washington, DC 20416, Phone: 202 

205–2985, Email: mariana.pardo@

sba.gov. 

RIN: 3245–AG38 

206. Women-Owned Small Business 

and Economically Disadvantaged 

Women-Owned Small Business— 

Certification 

Legal Authority: Pub. L. 113–291, sec. 

825; 15 U.S.C. 637(m) 

Abstract: Section 825 of the National 

Defense Authorization Act for Fiscal 

Year 2015 (NDAA), Public Law 113– 

291, 128 Stat. 3292, Dec. 19, 2014, 

included language requiring that 

women-owned small business concerns 

and economically disadvantaged 

women-owned small business concerns 

are certified by a Federal agency, a State 

government, the Administrator, or 

national certifying entity approved by 

the Administrator as a small business 

concern owned and controlled by 

women. This rule will propose the 

standards and procedures for 

participation in this certification 

program, including procedures 

governing certifications issued by SBA 

and third parties. This rule will also 

propose to revise the procedures for 

continuing eligibility, program 

examinations, protest and appeals. The 

proposed revisions will reflect public 

comments that SBA received in 

response to the Advanced Notice of 

Proposed Rulemaking that the agency 

issued in December 2016 to solicit 

feedback on implementation of the 

program. Finally, SBA is planning to 

continue to utilize new technology to 

improve its efficiency and decrease 

small business burdens, and therefore, 

the new certification procedures will be 

based on an electronic application and 

certification process. 

Timetable: 

Action Date FR Cite 

ANPRM ............... 12/18/15 80 FR 78984 

ANPRM Comment 

Period End.

02/16/16 

NPRM .................. 09/00/17 

Regulatory Flexibility Analysis 

Required: Yes. 

Agency Contact: Kenneth Dodds, 

Director, Office of Policy, Planning and 

Liaison, Small Business Administration, 

409 3rd Street SW., Washington, DC 

20416, Phone: 202 619–1766, Fax: 202 

481–2950, Email: kenneth.dodds@

sba.gov. 

RIN: 3245–AG75 

207. • Ownership and Control of 

Service-Disabled Veteran-Owned Small 

Business Concerns 

Legal Authority: Pub. L. 114–328, sec. 

1832, 1835 

Abstract: Section 1832 of the National 

Defense Authorization Act for Fiscal 

Year 2017 (NDAA), Public Law 114– 

328, Dec. 23, 2016, provides for a 

government-wide, uniform definition of 

a small business concern owned and 

controlled by a service-disabled veteran. 

Section 1835 requires the Small 

Business Administration (SBA) and the 

Department of Veterans Affairs (VA) to 

issue guidance, not later than 180 days 

after the date of enactment of the NDAA 

of 2017. The proposed rule will propose 

to amend SBA’s regulations to create a 

uniform definition of a small business 

owned and controlled by a servicedisabled veteran to be used for purposes 

of eligibility for government 

procurements by agencies other than the 

VA under the authority of 15 U.S.C. 

657f, and by the VA for VA 

procurements in accordance with 38 

U.S.C. 8127. These changes will include 

addressing ownership by an employee 

stock ownership plan (ESOP) and 

ownership and control by a surviving 

spouse. Section 1835 provides that the 

SBA and VA shall provide notice and 

opportunity for comment for at least 60 

days. 

Timetable: 

Action Date FR Cite 

NPRM .................. 06/00/17 

Regulatory Flexibility Analysis 

Required: Yes. 

Agency Contact: Kenneth Dodds, 

Director, Office of Policy, Planning and 

Liaison, Small Business Administration, 

409 3rd Street SW., Washington, DC 

20416, Phone: 202 619–1766, Fax: 202 

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40364 Federal Register / Vol. 82, No. 163 / Thursday, August 24, 2017 / Unified Agenda 

481–2950, Email: kenneth.dodds@

sba.gov. 

RIN: 3245–AG85 

208. • Small Business Government 

Contracting and National Defense 

Authorization Acts of 2016 and 2017 

Amendments 

Legal Authority: 15 U.S.C. 637(d)(17); 

Pub. L. 114–328, sec. 1811, 1821; Pub. 

L. 114–92, sec. 863 

Abstract: Section 1822 of the National 

Defense Authorization Act (NDAA) for 

Fiscal Year 2017, Public Law 114–328, 

Dec. 23, 2016, establishes a pilot 

program for qualified subcontractors to 

obtain past performance ratings that can 

be used to compete for prime contracts. 

Section 1811 of the NDAA of 2017 also 

limits the scope of review of 

Procurement Center Representatives for 

certain Department of Defense 

procurements performed outside of the 

United States. Section 1821 of the 

NDAA of 2017 establishes that failure to 

act in good faith in providing timely 

subcontracting reports shall be 

considered a material breach of the 

contract. Section 863 of the NDAA for 

FY 2016, Public Law 114–92, Nov. 25, 

2015, establishes procedures for the 

publication of acquisition strategies if 

the acquisition involves consolidation 

or substantial bundling. SBA also 

intends to request comment on various 

proposed changes requested by industry 

or other agencies, including those 

pertaining to exclusions from 

calculating compliance with the 

limitations on subcontracting, an 

agency’s ability to set aside orders under 

set-aside contracts, and a contracting 

officer’s authority to request reports on 

a prime contractor’s compliance with 

the limitations on subcontracting. 

Timetable: 

Action Date FR Cite 

NPRM .................. 09/00/17 

Regulatory Flexibility Analysis 

Required: Yes. 

Agency Contact: Kenneth Dodds, 

Director, Office of Policy, Planning and 

Liaison, Small Business Administration, 

409 3rd Street SW., Washington, DC 

20416, Phone: 202 619–1766, Fax: 202 

481–2950, Email: kenneth.dodds@

sba.gov. 

RIN: 3245–AG86 

Small Business Administration (SBA) 

Final Rule Stage 

209. Miscellaneous Amendments to 

Business Loan Programs and Surety 

Bond Guarantee Program 

Legal Authority: 15 U.S.C. 636(a); 15 

U.S.C. 694b 

Abstract: Certain lenders have been 

delegated the authority to make loan 

decisions without prior approval from 

SBA under certain circumstances. SBA 

plans to formalize such delegated 

authorities in this proposed rule. The 

rule will make several minor 

modifications to the 504 Loan Program 

and governance rules for Certified 

Development Company (CDC) in a 

follow-on to the Final Rule: 504 and 7(a) 

Loan Program Updates (March 21, 

2014). The rule will also align 

terminology for 7(a) lenders that are 

federally regulated to synchronize with 

existing industry requirements. SBA 

will also make several other 

miscellaneous amendments to improve 

oversight and operations of its finance 

programs. 

This rule will make four changes to 

the Surety Bond Guarantee (SBG) 

Program. The first changes the threshold 

for notification to SBA of changes in the 

contract or bond amount. Second, the 

change will require sureties to submit 

quarterly contract completion reports. 

Third, SBA will increase the eligible 

contract limit for the Quick Bond 

Application and Agreement from 

$250,000 to $400,000. Finally, the rule 

will increase the guarantee percentage 

in the Preferred Surety Bond program to 

reflect the statutory change made by the 

National Defense Authorization Act of 

2016. The guarantee percentage will 

increase from 70% to 80% or 90%, 

depending on contract size and 

socioeconomic factors currently in effect 

in the Prior Approval Program. 

Timetable: 

Action Date FR Cite 

NPRM .................. 08/09/16 81 FR 52595 

NPRM Comment 

Period End.

10/11/16 

Final Rule ............ 08/00/17 

Regulatory Flexibility Analysis 

Required: Yes. 

Agency Contact: Dianna L. Seaborn, 

Director, Office of Financial Assistance, 

Small Business Administration, 409 

Third Street SW., Washington, DC 

20416, Phone: 202 205–3645, Email: 

dianna.seaborn@sba.gov. 

RIN: 3245–AF85 

210. Agent Revocation and Suspension 

Procedures 

Legal Authority: 15 U.S.C. 634; 15 

U.S.C. 642 

Abstract: This rule establishes 

detailed procedures for the suspension 

and revocation of an Agent’s privilege to 

do business with the United States 

Small Business Administration (SBA) 

within a single Part of the Code of 

Federal Regulations; clarifies existing 

and related regulations as to suspension, 

revocation, and debarment; and removes 

Office of Hearings and Appeals 

jurisdiction over Agent suspensions and 

revocations and government-wide 

debarment and suspension actions. This 

rule will also conform SBA suspension 

and revocation procedures for Agents 

with general government-wide 

nonprocurement suspension and 

debarment procedures. 

Timetable: 

Action Date FR Cite 

NPRM .................. 10/16/14 79 FR 62060 

NPRM Comment 

Period Extended.

12/12/14 79 FR 73853 

NPRM Comment 

Period End.

12/15/14 

NPRM Comment 

Period Extended End.

02/14/15 

Final Rule ............ 12/00/17 

Regulatory Flexibility Analysis 

Required: Yes. 

Agency Contact: Debra Mayer, Chief, 

Supervision and Enforcement, Office of 

Credit Risk Management, Small 

Business Administration, 409 Third 

Street SW., Washington, DC 20416, 

Phone: 202 205–7577, Email: 

debra.mayer@sba.gov. 

RIN: 3245–AG40 

211. Small Business Investment 

Companies; Passive Business Expansion 

and Technical Clarifications 

Legal Authority: 15 U.S.C. 681 et seq. 

Abstract: The SBA is revising the 

regulations for the Small Business 

Investment Company (SBIC) program to 

further expand the use of Passive 

Businesses and provide needed 

protections for SBA with regard to such 

investments. SBICs are generally 

prohibited from investing in passive 

businesses under the Small Business 

Investment Act of 1958 as amended as 

well as by regulations. Current program 

regulations provided for two exceptions 

that allow an SBIC to structure an 

investment utilizing a passive small 

business as a pass-through. The first 

exception identified in 107.720(b)(2) 

provides that an SBIC may structure an 

investment utilizing two pass-through 

entities to make an investment into an 

active business. The second exception 

identified in 107.720(b)(3) allows 

partnership SBICs with SBA prior 

approval to invest in a wholly owned 

passive business that in turn provides 

financing to an active small business 

only if a direct financing would cause 

its investors to incur Unrelated Business 

Taxable Income (UBTI). The second 

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exception is commonly known as a 

blocker corporation. The rule clarifies 

the first exception and further expands 

the second exception, while providing 

additional protection to SBA from the 

risk posed by passive investment 

structures. As part of the rule, SBA will 

also make technical corrections and 

clarifications, including conforming the 

regulation to the new ‘‘family of funds’’ 

statutory provision. 

Timetable: 

Action Date FR Cite 

NPRM .................. 10/05/15 80 FR 60077 

NPRM Comment 

Period End.

12/04/15 

Final Rule ............ 12/28/16 81 FR 95419 

Final Rule Effective.01/27/17 

Delay of Effective 

Date Opportunity for Public 

Comment.

01/26/17 82 FR 8499 

Comment Period 

End.

02/19/17 

Final Rule Effective.03/21/17 

Delay of Effective 

Date.

03/21/17 82 FR 14428 

Final Rule Effective.05/20/17 

Delay of Effective 

Date and Request for Comment.

05/02/17 82 FR 20433 

Comment Period 

End.

06/01/17 

Final Rule Effective.08/18/17 

Final Rule ............ 08/00/17 

Regulatory Flexibility Analysis 

Required: Yes. 

Agency Contact: Theresa M. Jamerson, 

Senior Policy Advisor, Investment 

Division, Small Business 

Administration, 409 3rd Street SW., 

Washington, DC 20461, Phone: 202 205– 

7563, Email: theresa.jamerson@sba.gov. 

RIN: 3245–AG67 

212. Small Business Timber Set-Aside 

Program 

Legal Authority: 15 U.S.C. 631; 15 

U.S.C. 644(a) 

Abstract: The U.S. Small Business 

Administration (SBA or Agency) is 

amending its Small Business Timber 

Set-Aside Program (the Program) 

regulations. The Small Business Timber 

Set-Aside Program is rooted in the 

Small Business Act, which tasked SBA 

with ensuring that small businesses 

receive a fair proportion of the total 

sales of government property. 

Accordingly, the Program requires 

Timber sales to be set aside for small 

business when small business 

participation falls below a certain 

amount. SBA considered comments 

received during the ANPRM and NPRM 

processes, including on issues such as, 

but not limited to, whether the saw 

timber volume purchased through 

stewardship timber contracts should be 

included in calculations, and whether 

the appraisal point used in set-aside 

sales should be the nearest small 

business mill. In addition, SBA is 

considering data from the timber 

industry to help evaluate the current 

program and economic impact of 

potential changes. 

Timetable: 

Action Date FR Cite 

ANPRM ............... 03/25/15 80 FR 15697 

ANPRM Comment 

Period End.

05/26/15 

NPRM .................. 09/27/16 81 FR 66199 

NPRM Comment 

Period End.

11/28/16 

Final Rule ............ 09/00/17 

Regulatory Flexibility Analysis 

Required: Yes. 

Agency Contact: David W. Loines, 

Area Director, Office of Government 

Contracting, Small Business 

Administration, 409 Third Street SW., 

Washington, DC 20416, Phone: 202 205– 

7311, Email: david.loines@sba.gov. 

RIN: 3245–AG69 

SMALL BUSINESS ADMINISTRATION 

(SBA) 

Long-Term Actions 

213. Small Business Size Standards; 

Alternative Size Standard for 7(a), 504, 

and Disaster Loan Programs 

Legal Authority: 111–240, sec. 1116 

Abstract: SBA will amend its size 

eligibility criteria for Business Loans, 

certified development company (CDC) 

loans under title V of the Small 

Business Investment Act (504) and 

economic injury disaster loans (EIDL). 

For the SBA 7(a) Business Loan Program 

and the 504 program, the amendments 

will provide an alternative size standard 

for loan applicants that do not meet the 

small business size standards for their 

industries. The Small Business Jobs Act 

of 2010 (Jobs Act) established 

alternative size standards that apply to 

both of these programs until SBA’s 

Administrator establishes other 

alternative size standards. For the 

disaster loan program, the amendments 

will provide an alternative size standard 

for loan applicants that do not meet the 

Small Business Size Standard for their 

industries. These alternative size 

standards do not affect other Federal 

Government programs, including 

Federal procurement. 

Timetable: 

Action Date FR Cite 

NPRM .................... To Be Determined 

Regulatory Flexibility Analysis 

Required: Yes. 

Agency Contact: Khem Raj Sharma, 

Phone: 202 205–7189, Fax: 202 205– 

6390, Email: khem.sharma@sba.gov. 

RIN: 3245–AG16 

214. Disaster Loan Programs; Federal 

Flood Risk Management Standard 

Legal Authority: 15 U.S.C. 634(b)(6); 

E.O. 11988; E.O. 13690 

Abstract: In accordance with 

Executive Order 11988, Floodplain 

Management, as amended by Executive 

Order 13690, Establishing a Federal 

Flood Risk Management Standard and a 

Process for Further Soliciting and 

Considering Stakeholder Input, SBA 

will propose a rule to describe which 

disaster loans are subject to the FFRMS. 

SBA will propose to apply the FFRMS 

and corresponding elevation component 

to disaster loans that meet one of the 

following conditions: (1) SBA funds will 

be used for total real estate 

reconstruction at the damaged site that 

is located in the Special Flood Hazard 

Area (SFHA); (2) SBA funds will be 

used for new real estate construction at 

a relocation site that is located in the 

SFHA; or (3) SBA funds will be used for 

code required elevation at the damaged 

site that is located in the SFHA. 

Timetable: 

Action Date FR Cite 

NPRM .................. 08/00/18 

Regulatory Flexibility Analysis 

Required: Yes. 

Agency Contact: Alejandro Contreras, 

Phone: 202 205–6674, Email: 

alejandro.contreras@sba.gov. 

RIN: 3245–AG77 

SMALL BUSINESS ADMINISTRATION 

(SBA) 

Completed Actions 

215. Credit for Lower Tier Small 

Business Subcontracting 

Legal Authority: Pub. L. 113–66, sec. 

1614 

Abstract: The U.S. Small Business 

Administration (SBA or Agency) is 

amending its regulations to implement 

section 1614 of the National Defense 

Authorization Act (NDAA) of 2014, 

Public Law 113–66, December 26, 2013. 

Under the statute, when an other than 

small prime contractor has an 

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individual subcontracting plan for a 

contract, the large business may receive 

credit towards its small business 

subcontracting goals for subcontract 

awards made to small business concerns 

at any tier. Currently, other than small 

business prime contractors only report 

on their performance awarding 

subcontracts to small businesses at the 

first tier level. 

Completed: 

Reason Date FR Cite 

Final Rule ............ 12/23/16 81 FR 94246 

Final Rule Effective.01/23/17 

Regulatory Flexibility Analysis 

Required: Yes. 

Agency Contact: Kenneth Dodds, 

Phone: 202 619–1766, Fax: 202 481– 

2950, Email: kenneth.dodds@sba.gov. 

RIN: 3245–AG71 

[FR Doc. 2017–17029 Filed 8–23–17; 8:45 am] 

BILLING CODE 8025–01–P 

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