81 FR 18679 - Interest Rates

SMALL BUSINESS ADMINISTRATION

Federal Register Volume 81, Issue 62 (March 31, 2016)

Page Range		18679-18679
FR Document		2016-07313

Federal Register, Volume 81 Issue 62 (Thursday, March 31, 2016)

[Federal Register Volume 81, Number 62 (Thursday, March 31, 2016)]
[Notices]
[Page 18679]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-07313]


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SMALL BUSINESS ADMINISTRATION


Interest Rates

    The Small Business Administration publishes an interest rate called 
the optional ``peg'' rate (13 CFR 120.214) on a quarterly basis. This 
rate is a weighted average cost of money to the government for 
maturities similar to the average SBA direct loan. This rate may be 
used as a base rate for guaranteed fluctuating interest rate SBA loans. 
This rate will be 2.25 percent for the April-June quarter of FY 2016.
    Pursuant to 13 CFR 120.921(b), the maximum legal interest rate for 
any third party lender's commercial loan which funds any portion of the 
cost of a 504 project (see 13 CFR 120.801) shall be 6% over the New 
York Prime rate or, if that exceeds the maximum interest rate permitted 
by the constitution or laws of a given State, the maximum interest rate 
will be the rate permitted by the constitution or laws of the given 
State.

Dianna L. Seaborn,
Acting Director, Office of Financial Assistance.
[FR Doc. 2016-07313 Filed 3-30-16; 8:45 am]
 BILLING CODE P

Federal Register / Vol. 81, No. 62 / Thursday, March 31, 2016 / Notices 18679

accordance with the standing of the terms of the transactions by the Additionally, each Fund’s
instructions of the portfolio managers or Fund, including the amount, the independent public accountants, in
such remaining amounts will be maturity and the Interfund Loan Rate, connection with their audit examination
invested directly by the portfolio the rate of interest available at the time of the Fund, will review the operation
managers of the Funds. each Interfund Loan is made on of the proposed credit facility for
13. The Interfund Lending Committee overnight repurchase agreements and compliance with the conditions of the
will monitor the Interfund Loan Rate commercial bank borrowings, the yield application and their review will form
and the other terms and conditions of of any money market fund in which the the basis, in part, of the auditor’s report
the Interfund Loans and will make a lending Fund could otherwise invest, on internal accounting controls in Form
quarterly report to the Trustees of each and such other information presented to N–SAR.
Fund concerning the participation of the the Fund Trustees in connection with 18. No Fund will participate in the
Funds in the proposed credit facility the review required by conditions 13 proposed credit facility upon receipt of
and the terms and other conditions of and 14. requisite regulatory approval unless it
any extensions of credit under the credit 17. The relevant Adviser will prepare has fully disclosed in its prospectus
facility. and submit to the Trustees for review an and/or statement of additional
14. The Trustees of each Fund, initial report describing the operations information all material facts about its
including a majority of the Independent of the proposed credit facility and the intended participation.
Trustees, will: procedures to be implemented to ensure For the Commission, by the Division of
(a) Review, no less frequently than that all Funds are treated fairly. After Investment Management, under delegated
quarterly, the Fund’s participation in the commencement of the proposed authority.
the proposed credit facility during the credit facility, the relevant Adviser will Brent J. Fields,
preceding quarter for compliance with report on the operations of the proposed Secretary.
the conditions of any order permitting credit facility at each of the Trustees’ [FR Doc. 2016–07193 Filed 3–30–16; 8:45 am]
such transactions; quarterly meetings.
BILLING CODE 8011–01–P
(b) establish the Bank Loan Rate Each Fund’s chief compliance officer,
formula used to determine the interest as defined in rule 38a–1(a)(4) under the
rate on Interfund Loans and review, no Act, shall prepare an annual report for
less frequently than annually, the its Trustees each year that the Fund SMALL BUSINESS ADMINISTRATION
continuing appropriateness of the Bank participates in the proposed credit
Loan Rate formula; and facility, that evaluates the Fund’s Interest Rates
(c) review, no less frequently than compliance with the terms and The Small Business Administration
annually, the continuing conditions of the application and the publishes an interest rate called the
appropriateness of the Fund’s procedures established to achieve such optional ‘‘peg’’ rate (13 CFR 120.214) on
participation in the proposed credit compliance. Each Fund’s chief a quarterly basis. This rate is a weighted
facility. compliance officer will also annually average cost of money to the
15. If an Interfund Loan is not paid file a certification pursuant to Item government for maturities similar to the
according to its terms and such default 77Q3 of Form N–SAR as such Form may average SBA direct loan. This rate may
is not cured within two business days be revised, amended or superseded from be used as a base rate for guaranteed
from its maturity or from the time the time to time, for each year that the Fund fluctuating interest rate SBA loans. This
lending Fund makes a demand for participates in the proposed credit rate will be 2.25 percent for the April–
payment under the provisions of the facility, that certifies that the Fund and June quarter of FY 2016.
Interfund Lending Agreement, the its Adviser have established procedures Pursuant to 13 CFR 120.921(b), the
Adviser will promptly refer such loan reasonably designed to achieve maximum legal interest rate for any
for arbitration to an independent compliance with the terms and third party lender’s commercial loan
arbitrator selected by the Trustees of conditions of the order. In particular, which funds any portion of the cost of
each Fund involved in the loan who such certification will address a 504 project (see 13 CFR 120.801) shall
will serve as arbitrator of disputes procedures designed to achieve the be 6% over the New York Prime rate or,
concerning Interfund Loans.2 The following objectives: if that exceeds the maximum interest
arbitrator will resolve any problem (a) That the Interfund Loan Rate will rate permitted by the constitution or
promptly, and the arbitrator’s decision be higher than the Repo Rate and, if laws of a given State, the maximum
will be binding on both Funds. The applicable, the yield of the money interest rate will be the rate permitted
arbitrator will submit, at least annually, market funds, but lower than the Bank by the constitution or laws of the given
a written report to the Trustees setting Loan Rate; State.
forth a description of the nature of any (b) compliance with the collateral
dispute and the actions taken by the requirements as set forth in the Dianna L. Seaborn,
Funds to resolve the dispute. application; Acting Director, Office of Financial
16. Each Fund will maintain and (c) compliance with the percentage Assistance.
preserve for a period of not less than six limitations on interfund borrowing and [FR Doc. 2016–07313 Filed 3–30–16; 8:45 am]
years from the end of the fiscal year in lending; BILLING CODE P
which any transaction by it under the (d) allocation of interfund borrowing
proposed credit facility occurred, the
mstockstill on DSK4VPTVN1PROD with NOTICES

and lending demand in an equitable
first two years in an easily accessible manner and in accordance with SMALL BUSINESS ADMINISTRATION
place, written records of all such procedures established by the Trustees;
transactions setting forth a description Annual Meeting of the Regional Small
and Business Regulatory Fairness Boards
2 If the dispute involves Funds with different
(e) that the Interfund Loan Rate does Office of the National Ombudsman
Trustees, the respective Trustees of each Fund will
not exceed the interest rate on any third
select an independent arbitrator that is satisfactory party borrowings of a borrowing Fund at AGENCY:U.S. Small Business
to each Fund. the time of the Interfund Loan. Administration (SBA).

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Document Created: 2016-03-31 00:55:04
Document Modified: 2016-03-31 00:55:04

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		81 FR 18679