[Federal Register Volume 75, Number 167 (Monday, August 30, 2010)]
[Notices]
[Page 53007]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-21436]
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SMALL BUSINESS ADMINISTRATION
Gulf Opportunity Pilot Loan Program (GO Loan Pilot)
AGENCY: U.S. Small Business Administration (SBA).
ACTION: Notice of extension of waiver of regulatory provisions.
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SUMMARY: This notice announces the extension of the ``Notice of waiver
of regulatory provisions'' for SBA's GO Loan Pilot until September 30,
2011. Due to the scope and magnitude of the devastation to
Presidentially-declared disaster areas resulting from Hurricanes
Katrina and Rita as well as the further devastation by the BP Oil Spill
that began on April 20, 2010, the Agency is extending its full guaranty
and streamlined and centralized loan processing available through the
GO Loan Pilot to small businesses in the eligible parishes/counties
through September 30, 2011.
DATES: The waiver of regulatory provisions published in the Federal
Register on November 17, 2005, is extended under this Notice until
September 30, 2011.
FOR FURTHER INFORMATION CONTACT: Gail Hepler, Office of Financial
Assistance, U.S. Small Business Administration, 409 Third Street, SW.,
Washington, DC 20416; Telephone (202) 205-7530; [email protected].
SUPPLEMENTARY INFORMATION: On November 8, 2005, SBA initiated the GO
Loan Pilot program which was designed to provide expedited small
business financial assistance to businesses located in those
communities severely impacted by Hurricanes Katrina and Rita. Under
this unique initiative, SBA provides its full (85%) guaranty and
streamlined and centralized loan processing to all eligible lenders
that agree to make expedited SBA 7(a) loans available to small
businesses located in, locating to or re-locating in the parishes/
counties that have been Presidentially-declared as disaster areas
resulting from Hurricanes Katrina and Rita, plus any contiguous
parishes/counties.
To maximize the effectiveness of the GO Loan Pilot, on November 17,
2005, SBA published a notice in the Federal Register waiving for the GO
Loan Pilot certain Agency regulations for the 7(a) Business Loan
Program. (70 FR 69645). Because the pilot was designed as a temporary
program scheduled to expire on September 30, 2006, and was extended to
September 30, 2010, the waiver of certain Agency regulations also is
due to expire on September 30, 2010. However, the Agency believes that
there is a continuing, substantial need for the specific SBA assistance
provided by this pilot in the affected areas.
When compared to other similarly-sized Section 7(a) loans, the GO
Loan portfolio is performing very well, at about one-half the rate of
liquidation and one-quarter the rate of loan purchase compared to all
other 7(a) loans of $150,000 or less. In addition, the demand for GO
Loans has continued during FY2010 in response to the ongoing need to
rebuild the Gulf Coast areas devastated by Hurricanes Katrina and Rita.
The annualized number of GO Loans approved in FY 2010 is about the same
as the number of approvals for FY 2009 at approximately 560 loans per
year. Also, the Deepwater BP oil spill that began April 20, 2010, has
further devastated the Gulf Coast region and adversely affected many
small businesses.
Thus, the Agency believes it is appropriate to extend this unique
and vital program through September 30, 2011. Accordingly, the SBA is
also extending its waiver of the Agency regulations identified in the
Federal Register notice at 70 FR 69645 through September 30, 2011.
SBA's waiver of these provisions is authorized by regulations. These
waivers apply only to those loans approved under the GO Loan Pilot and
will last only for the duration of the Pilot, which expires September
30, 2011. As part of the GO Loan Pilot, these waivers apply only to
those small businesses located in, locating to, or relocating in the
parishes/counties that have been Presidentially-declared as disaster
areas resulting from Hurricanes Katrina or Rita, plus any contiguous
parishes/counties. A list of all eligible parishes/counties will be
included in an SBA procedural notice that will announce the extension
of the GO Loan Pilot.
Authority: 15 U.S.C. 636(a)(24); 13 CFR 120.3.
Eric R. Zarnikow,
Associate Administrator, Office of Capital Access.
[FR Doc. 2010-21436 Filed 8-27-10; 8:45 am]
BILLING CODE 8025-01-P