99-9268. Surety Bond Guarantees

[Federal Register Volume 64, Number 71 (Wednesday, April 14, 1999)]
[Rules and Regulations]
[Page 18324]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-9268]


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SMALL BUSINESS ADMINISTRATION

13 CFR Part 115


Surety Bond Guarantees

AGENCY: Small Business Administration.

ACTION: Final rule.

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SUMMARY: This document amends 13 CFR 115.31(a)(2) to conform it to 
Section 411(c)(3)(B) of the Small Business Investment Act (the 
``Act''), as amended by Section 604(d) of the Small Business 
Reauthorization Act of 1997 (the ``1997 Reauthorization Act''). The 
1997 Reauthorization Act added bonds issued on behalf of qualified 
HUBZone small business concerns to those receiving a 90 percent 
guarantee under the Surety Bond Guarantee Program. Since this rule only 
implements the cited statute, it is published in final form without 
opportunity to comment.

EFFECTIVE DATE: This rule is effective May 14, 1999.

FOR FURTHER INFORMATION CONTACT: Robert J. Moffitt, Associate 
Administrator, Office of Surety Guarantees, [phone].

SUPPLEMENTARY INFORMATION: This amendment only implements the cited 
statute to include bonds issued by a Prior Approval Surety on behalf of 
qualified HUBZone small business concerns among those to be covered by 
a 90 percent guarantee from SBA. The present regulation already 
provides a 90 percent guarantee for bonds issued on behalf of small 
disadvantaged concerns.
    This change would affect only qualified HUBZone small business 
concerns that are already eligible to participate in the Surety Bond 
Guarantee Program. Publishing a proposed rule for notice and comment is 
unnecessary because the change to the regulation is minimal and SBA has 
no discretion.

Compliance With Executive Orders 12612, 12778, and 12866, the 
Regulatory Flexibility Act (5 U.S.C. 601-612.) and the Paperwork 
Reduction Act (44 U.S.C. Ch. 35)

    SBA certifies that this is not a significant regulatory action 
under E.O. 12866 and will not have a significant economic impact on a 
substantial number of small entities under the Regulatory Flexibility 
Act (5 U.S.C. 601-612.) This rule only affects those HUBZone small 
business concerns who may want to participate in SBA's Surety Bond 
Guarantee Program.
    For purposes of the Paperwork Reduction Act, 44 U.S.C. Ch. 35, SBA 
certifies that this rule contains no new reporting or record keeping 
requirements.
    For purposes of E.O. 12612, SBA certifies that this rule would not 
have any federalism implications warranting the preparation of a 
Federalism Assessment.
    For purposes of E.O. 12778, SBA certifies that this rule is 
drafted, to the extent practicable, under the standards set forth in 
Section 2 of that Order.

List of Subjects in 13 CFR Part 115

    Surety bond guarantees.

    For the reasons stated in the preamble, the Small Business 
Administration amends 13 CFR part 115 as follows:

PART 115--SURETY BOND GUARANTEES

    1. The authority citation for part 115 is revised to read as 
follows:

    Authority: 5 U.S.C. app 3; 15 U.S.C. 687b, 687c, 694a, 694b; 
Pub. L. 101-574, 104 Stat. 2823 (1990); Pub. L. 105-135.


Sec. 115.31  [Amended]

    2. Amend Sec. 115.31 to revise paragraph (a)(2) to read as follows:
    (a) * * *
    (2) The bond was issued on behalf of a small business owned and 
controlled by socially and economically disadvantaged individuals or on 
behalf of a qualified HUBZone small business concern.
* * * * *

    Dated: March 31, 1999.
Aida Alvarez,
Administrator.
[FR Doc. 99-9268 Filed 4-13-99; 8:45 am]
BILLING CODE 8025-01-P