83 FR 30810 - Data Collection Available for Public Comments

SMALL BUSINESS ADMINISTRATION

Federal Register Volume 83, Issue 126 (June 29, 2018)

Page Range		30810-30811
FR Document		2018-13956
The Paperwork Reduction Act (PRA) requires federal agencies to publish a notice in the Federal Register concerning each proposed collection of information before submitting it to OMB for approval, and to allow 60 days for public comment in response to the notice. SBA initially published this required notice on April 2, 2018. SBA is republishing the notice to address the two comments it received requesting greater detail on the information to be collected and to provide an additional 60 days for public comment.
Federal Register, Volume 83 Issue 126 (Friday, June 29, 2018)
[Federal Register Volume 83, Number 126 (Friday, June 29, 2018)]
[Notices]
[Pages 30810-30811]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-13956]


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SMALL BUSINESS ADMINISTRATION


Data Collection Available for Public Comments

ACTION: 60-Day notice and request for comments.

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SUMMARY: The Paperwork Reduction Act (PRA) requires federal agencies to 
publish a notice in the Federal Register concerning each proposed 
collection of information before submitting it to OMB for approval, and 
to allow 60 days for public comment in response to the notice. SBA 
initially published this required notice on April 2, 2018. SBA is 
republishing the notice to address the two comments it received 
requesting greater detail on the information to be collected and to 
provide an additional 60 days for public comment.

DATES: Submit comments on or before August 28, 2018.

ADDRESSES: Send all comments to Adrienne Grierson, Deputy Director, 
Office of Credit Risk Management, Small Business Administration, at 
[email protected].

FOR FURTHER INFORMATION CONTACT: Adrienne Grierson, Deputy Director, 
Office of Credit Risk Management at [email protected] or 202-
205-6573, or Curtis B. Rich, Management Analyst, 202-205-7030, 
[email protected].

SUPPLEMENTARY INFORMATION: SBA's Office of Credit Risk Management 
(OCRM) is responsible for the oversight and supervision of the SBA 
operations of approximately 4000 7(a) Lenders, Certified Development 
Companies (``CDCs''), and Microloan Intermediaries 
(``Intermediaries''), that participate in SBA's business loan programs 
and, for enforcement of the applicable rules and regulations. 
Currently, the agency guarantees more than $90 billion dollars in small 
business loans through these programs. The information collection 
described in detail below helps OCRM protect the safety and soundness 
of the business loan programs and taxpayer dollars.
    In general, SBA collects information in connection with PARRiS \1\ 
reviews for 7(a) Federally-regulated Lenders, SMART \2\ reviews for 
CDCs, and PARRiS Safety and Soundness Examinations for SBA Supervised 
Lenders including Small Business Lending Companies (SBLCs) and Non-
Federally Regulated Lenders (NFRLs).\3\ SBA also requests certain 
information when it conducts Delegated Authority Reviews of 7(a) 
Lenders and CDCs, and Microloan Intermediary Site Visits. The 
discussion below identifies the nature of the information to be 
collected for each type of lender and the related review or 
examination. In addition, SBA has created separate lists, which are 
also discussed below, to clearly identify the information to be 
collected.
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    \1\ PARRiS refers to the specific risk components reviewed for 
7(a) Lenders: (i) Portfolio Performance; (ii) Asset Management; 
(iii) Regulatory Compliance; (iv) Risk Management; and (v) Special 
Items.
    \2\ SMART refers to the specific risk components reviewed for 
Certified Development Companies: (i) Solvency and Financial 
Condition; (ii) Management and Board Governance; (iii) Asset Quality 
and Servicing; (iv) Regulatory Compliance; and (v) Technical Issues 
and Mission.
    \3\ SBLCs and NFRLs are defined in 15 U.S.C. 632(r) and 13 CFR 
120.10.
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I. 7(a) Lender and CDC PARRIS and SMART Analytical and Full Reviews and 
Safety and Soundness Exams

A. Common Information Collected

    For all Analytical Reviews, Full Reviews, and Safety and Soundness 
examinations \4\ of 7(a) lenders and CDCs, as applicable, in general, 
SBA requests information related to the lender's or CDC's management 
and operation, eligibility of its SBA loans for SBA guaranty, 
compliance with SBA Loan Program Requirements, credit administration, 
and performance of its SBA loan portfolio.
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    \4\ Safety and Soundness Examinations are only performed on SBA 
Supervised Lenders in the 7(a) program. SBA Supervised Lenders 
include SBA licensed Small Business Lending Companies and Non-
Federally Regulated Lenders as defined in 13 CFR 120.10. Analytical 
Reviews and Full Reviews are performed on 7(a) Lenders and CDCs.
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    1. Management and Operations: The information requested generally 
includes the SBA program organization chart with responsibilities, 
business plan, financial and program audits, evidence of lender 
compliance with regulatory orders and agreements (if applicable and as 
appropriate), and staff training on SBA lending.
    2. Eligibility and Credit Administration: In reviewing these areas, 
SBA primarily requests lender's or CDC's policies, loan sample files; 
independent loan reviews; loan credit scoring and risk rating 
methodologies; and information on loans approved as exceptions to 
policy.
    3. Compliance with Loan Program Requirements: Here, SBA collects 
information on services and fees charged for Third-party vendors,\5\ 
lender's FTA \6\ trust account, and lender's use of the System of 
Awards Management to perform agent due diligence.
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    \5\ For purposes of this notice, Third-party vendors include, 
for example, Loan Agents (e.g., Packagers and Lender Service 
Providers) and Professional Managers with management contracts.
    \6\ FTA refers to SBA's Fiscal and Transfer Agent. 7(a) Lenders 
that sell SBA loans in the Secondary Market are required by the 
terms of the Form 1086, Secondary Participation Guaranty Agreement, 
to deposit the guaranteed portion of loan payments in a segregated 
account for the benefit of investors.
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    4. Portfolio Performance: In considering lender or CDC portfolio 
performance, SBA requests that lenders provide a listing of loans 
indicating those past due, those with servicing actions, individual 
risk ratings, and those in liquidation or purchased for SBA to compare 
with SBA data. SBA also requests that lenders provide an explanation 
for risks identified (e.g., identified by high risk metrics or PARRiS 
flags triggered).
    Further detail on the information SBA collects in Analytical and 
Full Reviews and Safety and Soundness Exams is contained in the SBA 
Supervised Lender Safety and Soundness Examination/Full Review 
Information Request; 7(a) Lender PARRiS Analytical Review Information 
Request; CDC SMART Analytical Review Information Request; 7(a) Lender 
PARRiS Full Review Information Request; and, CDC SMART Full Review 
Information Request. Each Information Request document is available 
upon request.

B. SBA Supervised Lender Supplemental Information for Safety and 
Soundness Exams

    SBA is the primary federal regulator for SBA licensed SBLCs and 
NFRLs that participate in the 7(a) program.\7\

[[Page 30811]]

Because SBA is the primary federal regulator, SBA performs 
comprehensive exams that require information in addition to that 
referenced in Section I.A. Specifically, for SBA Supervised Lender 
examinations, SBA additionally requests corporate governance documents 
and information on the lender's financial condition, internal controls 
and risk mitigation. SBA also requests information on higher risk 
loans, payments related to loans in loan sample, fidelity insurance, 
credit scoring model validation and lender self-testing for compliance 
with SBA Loan Program Requirements. SBA Supervised Lender safety and 
soundness examinations include review of capital, earnings, and 
liquidity in accordance with 13 CFR 120.1050(b) and accordingly, SBA 
requests information on the lender's financing, asset account 
calculations, and dividend policy. Further detail on the information 
that SBA requests for SBA Supervised Lender examinations is contained 
in SBA Supervised Lender Safety and Soundness Examination/Full Review 
Information Request. This document is available upon request.
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    \7\ SBA Supervised Lenders are a relatively small subset of 7(a) 
Lenders. 7(a) Lenders include SBA Supervised Lenders and Federally 
Regulated 7(a) Lenders (i.e., those lenders regulated by the federal 
bank regulators--Federal Deposit Insurance Corporation, the Office 
of the Comptroller of the Currency, the Federal Reserve Board, the 
National Credit Union Administration, and the Farm Credit 
Administration).
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C. CDC Supplemental Information

    SBA is also the primary federal regulator for CDCs. SBA guarantees 
100% of 504 program debentures. Therefore, SBA also requests additional 
information to prudently oversee CDCs, as it does for SBA Supervised 
Lenders. The additional information generally requested includes 
corporate governance documents and information on lender's financial 
condition, internal controls and risk mitigation practices, and the 
CDC's plan for investment in other local economic development. In 
addition, SBA requests, as applicable, information on a CDC's Premier 
Certified Lenders Program (PCLP) Loan Loss Reserve Account and loans 
that a CDC packages for other 7(a) lenders. You may request a copy of 
the CDC SMART Analytical Review Information Request and CDC SMART Full 
Review Information Request for more details on this supplemental 
information request.

I. 7(a) Lender and CDC Delegated Authority Reviews

    SBA collects information for Delegated Authority Reviews performed, 
in general, every two years for lenders applying or reapplying to SBA's 
Delegated Authority Programs (e.g., Preferred Lender Program for 7(a) 
Lenders and Accredited Lender Program or PCLP for CDCs).\8\ If a lender 
is scheduled to receive an Analytical or Full Review or a Safety and 
Soundness Examination during the same review cycle as a Delegated 
Authority Review, generally SBA will coordinate the timing of the 
reviews and the related information collections to lessen the burden.
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    \8\ Through SBA's Delegated Authority programs, qualified 
lenders may process SBA loans with further autonomy and reduced 
paperwork than through regular SBA loan processing.
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    For 7(a) delegated authority reviews, SBA requests information on 
organizational changes, staff training and experience, lender 
explanation for risk indicators triggered, lender risk mitigation 
efforts, lender's financial condition, lender's deficiencies underlying 
regulatory orders (if applicable and as appropriate), and loan sample 
files (as requested).
    For CDC delegated authority reviews, SBA requests corporate 
governance documents and additional information on organization/staff, 
financial condition, internal controls and risk mitigation. SBA also 
requests a CDC's policies including its no-adverse-change 
determination, loan reviews, and lender explanation for its higher risk 
metrics.
    For more detail on Delegated Authority Review collections, you may 
request a copy of the 7(a) Lender Nomination for Delegated Authority 
Information Request; and, the ALP/PCLP Renewal Guide and Information 
Request.

II. Microloan Intermediary Reviews

    For Microloan Program Intermediary oversight, SBA District Offices 
perform an annual site visit for active Intermediaries. SBA requests 
information on SBA program management and operations including 
organizational chart with responsibilities, business plan, staff 
training on SBA lending, and risk mitigation practices. SBA primarily 
reviews the Intermediary's credit administration through a loan sample 
file request. Specifics on the information collected are contained in 
SBA's Microloan Intermediary Site Visit/Review Information Request 
document, a copy of which is available upon request.

III. Other Reviews, Corrective Action Plans, and Increased Supervision 
for 7(a) Lenders, CDCs, and Intermediaries

    SBA may pose additional information requests for its Other 
Reviews,\9\ generally of higher risk lenders. For example, for 7(a) 
lenders under a public regulatory order or agreement, SBA may request 
information relating to the status of the underlying deficiencies, as 
appropriate, or request loan files for SBA to review to mitigate risk 
before the loan can be sold into the secondary market. SBA may also 
request corrective action plans from lenders following reviews where 
findings and deficiencies are identified. Finally, SBA may request 
additional information of lenders under increased supervision. However, 
information requests for increased supervision tend to be lender 
specific.
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    \9\ Other Reviews may include, for example, Secondary Market 
loan reviews, reviews of lender self-assessments, or Agreed Upon 
Procedures Reviews performed by third-party practitioners or an 
independent office within the Lender to which SBA and the Lender 
agree, that follow a review protocol as prescribed or approved by 
SBA.
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    In general, for information that has already been provided by a 
7(a) lender, a CDC, or a Microloan Intermediary but is unchanged, a 
lender may certify that the information was already provided and is 
unchanged in lieu of resubmitting the information. The certification 
must also state to whom and on what date the information was provided 
to SBA.
    Summary of Information Collection:
    Title: SBA Lender and Microloan Intermediary Reporting 
Requirements.
    OMB Control Number: 3245-0365.
    Description of Respondents: SBA 7(A) Lenders, Certified Development 
Companies, and Microloan Intermediary lenders.
    Form Numbers: N/A.
    Total Estimated Annual Responses: 1,861.
    Total Estimated Annual Hour Burden: 14,573.
    Solicitation of Public Comments: SBA requests comments on the 
information described above, specifically on (a) whether the collection 
of information is necessary for the agency to properly perform its 
functions; (b) whether the burden estimates are accurate; (c) whether 
there are ways to minimize the burden, including through the use of 
automated techniques or other forms of information technology; and (d) 
whether there are ways to enhance the quality, utility, and clarity of 
the information.

Curtis Rich,
Management Analyst.
[FR Doc. 2018-13956 Filed 6-28-18; 8:45 am]
 BILLING CODE 8025-01-P
Federal Register / Vol. 83, No. 126 / Friday, June 29, 2018 / Notices 30811

Because SBA is the primary federal scheduled to receive an Analytical or example, for 7(a) lenders under a public
regulator, SBA performs comprehensive Full Review or a Safety and Soundness regulatory order or agreement, SBA may
exams that require information in Examination during the same review request information relating to the status
addition to that referenced in Section cycle as a Delegated Authority Review, of the underlying deficiencies, as
I.A. Specifically, for SBA Supervised generally SBA will coordinate the appropriate, or request loan files for
Lender examinations, SBA additionally timing of the reviews and the related SBA to review to mitigate risk before the
requests corporate governance information collections to lessen the loan can be sold into the secondary
documents and information on the burden. market. SBA may also request corrective
lender’s financial condition, internal For 7(a) delegated authority reviews, action plans from lenders following
controls and risk mitigation. SBA also SBA requests information on reviews where findings and deficiencies
requests information on higher risk organizational changes, staff training are identified. Finally, SBA may request
loans, payments related to loans in loan and experience, lender explanation for additional information of lenders under
sample, fidelity insurance, credit risk indicators triggered, lender risk increased supervision. However,
scoring model validation and lender mitigation efforts, lender’s financial information requests for increased
self-testing for compliance with SBA condition, lender’s deficiencies supervision tend to be lender specific.
Loan Program Requirements. SBA underlying regulatory orders (if In general, for information that has
Supervised Lender safety and applicable and as appropriate), and loan already been provided by a 7(a) lender,
soundness examinations include review sample files (as requested). a CDC, or a Microloan Intermediary but
of capital, earnings, and liquidity in For CDC delegated authority reviews, is unchanged, a lender may certify that
accordance with 13 CFR 120.1050(b) SBA requests corporate governance the information was already provided
and accordingly, SBA requests documents and additional information and is unchanged in lieu of resubmitting
information on the lender’s financing, on organization/staff, financial the information. The certification must
asset account calculations, and dividend condition, internal controls and risk also state to whom and on what date the
policy. Further detail on the information mitigation. SBA also requests a CDC’s information was provided to SBA.
that SBA requests for SBA Supervised policies including its no-adverse-change Summary of Information Collection:
Lender examinations is contained in determination, loan reviews, and lender Title: SBA Lender and Microloan
SBA Supervised Lender Safety and explanation for its higher risk metrics. Intermediary Reporting Requirements.
Soundness Examination/Full Review For more detail on Delegated
OMB Control Number: 3245–0365.
Information Request. This document is Authority Review collections, you may
Description of Respondents: SBA 7(A)
available upon request. request a copy of the 7(a) Lender
Lenders, Certified Development
Nomination for Delegated Authority
C. CDC Supplemental Information Companies, and Microloan Intermediary
Information Request; and, the ALP/
lenders.
SBA is also the primary federal PCLP Renewal Guide and Information
Form Numbers: N/A.
regulator for CDCs. SBA guarantees Request.
Total Estimated Annual Responses:
100% of 504 program debentures. II. Microloan Intermediary Reviews 1,861.
Therefore, SBA also requests additional Total Estimated Annual Hour Burden:
information to prudently oversee CDCs, For Microloan Program Intermediary
oversight, SBA District Offices perform 14,573.
as it does for SBA Supervised Lenders. Solicitation of Public Comments: SBA
an annual site visit for active
The additional information generally requests comments on the information
Intermediaries. SBA requests
requested includes corporate described above, specifically on (a)
information on SBA program
governance documents and information whether the collection of information is
management and operations including
on lender’s financial condition, internal necessary for the agency to properly
organizational chart with
controls and risk mitigation practices, perform its functions; (b) whether the
responsibilities, business plan, staff
and the CDC’s plan for investment in burden estimates are accurate; (c)
training on SBA lending, and risk
other local economic development. In whether there are ways to minimize the
mitigation practices. SBA primarily
addition, SBA requests, as applicable, burden, including through the use of
reviews the Intermediary’s credit
information on a CDC’s Premier automated techniques or other forms of
administration through a loan sample
Certified Lenders Program (PCLP) Loan file request. Specifics on the information technology; and (d) whether
Loss Reserve Account and loans that a information collected are contained in there are ways to enhance the quality,
CDC packages for other 7(a) lenders. SBA’s Microloan Intermediary Site utility, and clarity of the information.
You may request a copy of the CDC Visit/Review Information Request
SMART Analytical Review Information Curtis Rich,
document, a copy of which is available
Request and CDC SMART Full Review Management Analyst.
upon request.
Information Request for more details on [FR Doc. 2018–13956 Filed 6–28–18; 8:45 am]
this supplemental information request. III. Other Reviews, Corrective Action BILLING CODE 8025–01–P
Plans, and Increased Supervision for
I. 7(a) Lender and CDC Delegated 7(a) Lenders, CDCs, and Intermediaries
Authority Reviews
SBA may pose additional information SUSQUEHANNA RIVER BASIN
SBA collects information for requests for its Other Reviews,9 COMMISSION
Delegated Authority Reviews generally of higher risk lenders. For
performed, in general, every two years Projects Approved for Minor
sradovich on DSK3GMQ082PROD with NOTICES

for lenders applying or reapplying to further autonomy and reduced paperwork than Modifications
SBA’s Delegated Authority Programs through regular SBA loan processing.
(e.g., Preferred Lender Program for 7(a) 9 Other Reviews may include, for example, AGENCY: Susquehanna River Basin
Lenders and Accredited Lender Program Secondary Market loan reviews, reviews of lender Commission.
self-assessments, or Agreed Upon Procedures
or PCLP for CDCs).8 If a lender is Reviews performed by third-party practitioners or
ACTION: Notice.
an independent office within the Lender to which
8 Through SBA’s Delegated Authority programs, SBA and the Lender agree, that follow a review SUMMARY: This notice lists the minor
qualified lenders may process SBA loans with protocol as prescribed or approved by SBA. modifications approved for a previously

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Document Created: 2018-06-29 01:12:57
Document Modified: 2018-06-29 01:12:57
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
Action		60-Day notice and request for comments.
Dates		Submit comments on or before August 28, 2018.
Contact		Adrienne Grierson, Deputy Director, Office of Credit Risk Management at [email protected] or 202- 205-6573, or Curtis B. Rich, Management Analyst, 202-205-7030, [email protected]
FR Citation		83 FR 30810