[Federal Register Volume 60, Number 113 (Tuesday, June 13, 1995)]
[Rules and Regulations]
[Pages 31054-31063]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14371]
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SMALL BUSINESS ADMINISTRATION
13 CFR Part 130
Small Business Development Centers
AGENCY: Small Business Administration.
ACTION: Final rule.
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SUMMARY: The Small Business Administration (SBA) is promulgating
regulations governing the Small Business Development Center (SBDC)
Program. Since enactment of Pub. L. 96-302 establishing the SBDC
Program in 1980, the Program has been operating under direct statutory
authority, without regulations. This rule will establish a framework
for more efficient operation.
EFFECTIVE DATE: This rule is effective on June 13, 1995.
FOR FURTHER INFORMATION CONTACT:
Hardy Patten, Program Manager, (202) 205-6766.
SUPPLEMENTARY INFORMATION: On November 28, 1994, SBA proposed a rule
(59 FR 60723) to establish a regulatory framework for the SBDC Program,
which is administered pursuant to Section 21 of the Small Business Act,
15 U.S.C. Sec. 648 (the ``Act''). In this Program, SBA and the SBDC
networks provide managerial advice and technical assistance to enhance
the growth, innovation, and productivity of small businesses. The
issuance of regulations will clarify Program procedures.
During a 30-day public comment period on the proposed rule, SBA
received four comment letters raising 24 individual concerns. After
analyzing these comments, SBA has decided to make appropriate changes
to the rule.
In addition, in accordance with its policy to streamline existing
and proposed regulations, SBA scrutinized its proposed rule for
duplication and excess verbiage, eliminating more than 25% of the body
of the rule, without altering its substance. The following summary of
issues raised does not discuss streamlining revisions, unless a comment
pertained to a portion of the proposed rule which has been deleted or
otherwise revised.
Summary of Issues Raised by Public Comment
Section 130.100(b) of the proposed rule, providing an overview of
the Program, has been merged into section 130.100(a). The portion of
the section which referred to SBA consultation with SBDC Directors and
recognized organizations representing SBDCs in the formulation of the
annual Program Announcement and the development of Program guidelines
was duplicated in section 130.350(a) and was deleted from section
130.100.
Several comments were received regarding the consultation
provision. One comment correctly pointed out that section 21(a)(3)(A)
of the Act only requires SBA to recognize and consult with the
organization of which more than a majority of SBDCs are members. SBA
has revised the proposed rule to refer in section 130.350(a) to ``the
Recognized Organization'', instead of recognized organizations, and to
add a definition of Recognized Organization at new section 130.110(y).
Two other comments suggested that the regulation describe the
timing and means of obtaining the consultation. [[Page 31055]] SBA
rejected these suggestion, finding no reason why consultation with SBDC
Directors or the Recognized Organization should be limited or
restricted in any manner. Another comment proposed that Program
guidelines not be developed outside of the regulations. SBA disagrees
and has deleted the reference to Program guidelines from this final
rule. SBA will continue to provide guidance and interpretive materials,
consistent with these regulations, for use by SBDCs and SBA field
offices.
Section 130.110 defines terms used in the regulation. Section
130.100(e) states that Cash Match must be non-Federal funds equal to no
less than fifty percent of the Federal funds. Section 130.450(e)(4)
(previously misnumbered as section 130.450(6)(iv)) provides that
Matching Funds may not be from any other Federal source. With respect
to both sections, a comment suggested that funds from other Federal
sources be allowed as Cash Match if the source of the fund specifically
authorized such use. SBA disagrees, since section 21(a)(4) of the Act
clearly requires matching funds to be provided from sources other than
the Federal government.
One comment warned that the proposed definitions of ``Conflict''
and ``Dispute'' created potential for misunderstanding. SBA has
eliminated the definition of ``Conflict'', distinguishing in section
130.630 between financial and non-financial Disputes by the different
procedures provided for resolution.
The same commenter viewed the definition of ``Key SBDC Employee''
in section 130.110(q) as vague and unnecessary. Agreeing with the
comment, SBA has deleted the section.
SBA has not adopted another comment requesting that the definition
of the Grants and Cooperative Agreement Appeals Committee in section
130.110(l) be revised so that the President of the Recognized
Organization (or a designee) serve as an ex officio member of the
Committee. The Committee can still obtain the benefit of the Recognized
Organization's views and comments whenever required or appropriate.
Comments alerted SBA to several sections where language in the
proposed rule referred only to States instead of ``States, Territories
or the District of Columbia''. SBA has added a definition of ``Area of
Service'' as section 130.110(c) and revised sections 130.310(a),
130.310(b) and 130.410(b) as required.
One comment suggested that section 130.360(a) require
representation of States or territories on State advisory boards. SBA
notes that the statutory provision establishing a National SBDC
Advisory Board designated the number and general composition of the
board, while the provision establishing the State and regional boards
was silent as to these matters. Accordingly, SBA has concluded that
Congress intended that SBDCs have maximum flexibility in composing
State boards.
Section 130.340(b) of the proposed rule prohibited SBDCs from
making loans, servicing loans, making credit decisions regarding the
award of loans, or making credit recommendations (unless authorized to
do so by the Administrator). One commenter objected that SBDCs have not
been making credit recommendations, since they are beyond the
responsibility of an SBDC. SBA agreed and deleted the reference to
credit recommendations.
Under section 130.410, an application for initial funding must
include a letter from the Governor, or his or her designee, of the
State or Territory in which the SBDC will operate. A comment suggested
that such a letter be required to accompany each renewal application as
well. Since such a requirement would impose a condition upon renewal
beyond what is required by the statute, SBA rejected the suggested
change.
Section 130.430, describing factors to be considered in reviewing
applications, generated no comments. To implement section 404 of P.L.
103-403, amending section 21(k) of the Act, SBA has added two factors:
the results of any examination conducted under Sec. 130.810(b) and the
pertinent results of any certification process conducted pursuant to
any certification program developed by the Recognized Organization.
Section 130.450 delineates the requirements concerning Matching
Funds. A comment objected that the phrase ``any Cooperative Agreement''
implied that there could be more than one between an SBDC and the SBA.
The sentence was deleted in its entirety as part of the streamlining
effort.
Section 130.460 lists the information to be included in the budget
justification portion of a proposal. Under section 130.460(g) (formerly
section 130.460(b)(2)(iii)(D)), unplanned out-of-State travel which
exceeds the approved budgeted amount must be approved by the Project
Officer. The proposed rule required a written budget revision and a
written narrative explaining the need for such travel. A commenter
objected to the paperwork, since approval still rests in the Project
Officer's discretion. SBA agrees and has deleted the paperwork
requirement.
Section 130.470 describes the activities and services for which an
SBDC may charge a fee. The proposed rule allowed SBDCs to charge a fee
to cover costs in connection with training activities or specialized
services. A comment correctly pointed out that specialized services
were not defined in the proposed rule and that SBDCs often pass through
to clients the costs of services from third parties. SBA has revised
the section to include costs of third parties passed through to clients
and has added a definition of specialized services at Sec. 130.110(cc).
Proposed sections 130.630 and 130.640, respectively, set forth
Dispute and Conflict resolution procedures (now consolidated as section
130.630). One comment objected that the proposed procedures did not
offer neutral decision-making and separation of functions, suggesting
that the Dispute resolution procedures include a hearing conducted
pursuant to Section 554 of the Administrative Procedure Act. Since
neither financial Disputes nor programmatic (non-financial) Disputes
involve suspension, termination or failure to renew or extend, SBA
considered the procedures to be consistent with the statutory
provisions, reflecting reasonable exercise of administrative discretion
without adding undue administrative complexity. Therefore, no changes
were made to either section.
Section 130.700 generally explains the grounds and procedures for
suspending, terminating or failing to renew a recipient organization.
SBA relocated proposed section 130.650 (dealing with procedures for not
renewing an SBDC) as section 130.700(c) in the final rule. SBA also has
deleted the reference in section 130.700(a) to former Sec. 130.630 and
Sec. 130.640 (regarding Dispute and Conflict resolutions), finding it
to be misleading because Disputes do not involve the suspension,
termination or failure to renew a Cooperative Agreement.
Section 130.700(b) sets forth the causes which might lead to
suspension, termination or failure to renew, including the failure to
suspend or terminate an SBDC Director, subcenter Director or key SBDC
employee promptly upon learning that such individual has a criminal
conviction for a felony, a criminal conviction for a misdemeanor
involving a variety of listed offenses, or a civil judgment which
reflects adversely upon his or her business integrity. A comment
objected that the provisions were so broad that [[Page 31056]] nearly
any conviction or judgment might trigger the cause. SBA agrees and has
revised the guidelines.
SBA made one revision in section 130.700(c)(7) (proposed section
130.650(g)), changing from 60 days to 120 days the time permitted an
SBDC to conclude operations and submit close-out documents when its
application for renewal has been denied.
Section 130.810 sets forth mechanisms that SBA may use to oversee
and monitor the SBDC program, including site visits, on-site
examinations and audits. In order to comply with section 404 of P.L.
103-403, SBA has made the following changes to the section: (a)
Sec. 130.810(b) in the proposed rule, providing for required on-site
reviews, has been deleted in its entirety and has been replaced by a
new section 130.810(b), requiring SBA examiners to perform biannual
programmatic and financial examinations of each SBDC; (b)
Sec. 130.810(d)(1) in the proposed rule, providing for limited scope
reviews, has been deleted; and (c) a new section 130.810(c) has been
added permitting SBA to provide financial support to the Recognized
Organization to develop and implement an SBDC certification program.
Section 130.830 describes audit procedures. In response to a
comment, SBA has revised the language to clarify that pre-award audits
will be conducted by or coordinated with the SBA Office of Inspector
General according to Government Auditing Standards.
Compliance With Executive Orders 12612, 12778 and 12866; Regulatory
Flexibility Act, 5 U.S.C. 601 et seq.; and the Paperwork Reduction
Act, 44 U.S.C. ch. 35.
SBA certifies that this rule is not a significant rule within the
meaning of Executive Order 12866 because it does not have an annual
economic effect in excess of $100 million, result in a major increase
in costs for individuals or governments, or have a significant adverse
effect on competition. The rule conforms to existing parameters under
which the Program is functioning.
For purposes of Executive Order 12612, SBA certifies that this rule
has federalism implications. As such, SBA offers the following
Federalism Assessment.
This rule is designed to allow the States participating in the
Program maximum policy-making and administrative discretion within the
requirements of the law and sound Program management. In formulating
and implementing the policies set forth in this rule, SBA has
encouraged State participants to develop their own methods of achieving
program objectives and has limited the number of uniform national
requirements.
For purposes of Executive Order 12778, SBA certifies that this rule
is drafted in accordance with the standards set forth in section 2 of
that Order.
For purposes of the Regulatory Flexibility Act, SBA certifies that
this rule does not have a significant economic effect on a substantial
number of small entities because it does not impose material changes on
the existing program.
For purposes of the Paperwork Reduction Act, SBA certifies that
this rule imposes no new reporting or recordkeeping requirements. The
rule does, however, codify, at sections 130.800 through 130.830,
paperwork requirements previously cleared by the Office of Management
and Budget.
List of Subjects in 13 CFR Part 130
Business development, small businesses, Small Business Development
Center (SBDC), technical assistance.
Title 13 of Code of Federal Regulations, Chapter 1 shall be amended
by adding a new Part 130 as follows:
PART 130--SMALL BUSINESS DEVELOPMENT CENTERS
Sec.
130.100 Introduction.
130.110 Definitions.
130.200 Eligible entities.
130.300 Small Business Development Centers (SBDCs). [Reserved]
130.310 Area of service.
130.320 Location of lead centers and SBDC service providers.
130.330 Operating requirements.
130.340 SBDC services and restrictions on service.
130.350 Specific program responsibilities.
130.360 SBDC advisory boards.
130.400 Application procedure. [Reserved]
130.410 New applications.
130.420 Renewal applications.
130.430 Application decisions.
130.440 Maximum grant.
130.450 Matching funds.
130.460 Budget justification.
130.470 Fees.
130.480 Program income.
130.500 Funding.
130.600 Cooperative agreement. [Reserved]
130.610 General terms.
130.620 Revisions and amendments to cooperative agreement.
130.630 Dispute resolution procedures.
130.700 Suspension, termination and non-renewal.
130.800 Oversight of the SBDC program.
130.810 SBA review authority.
130.820 Reports and recordkeeping.
130.830 Audits and investigations.
Authority: Sections 5(b)(6) and 21 of the Small Business Act, as
amended, 15 U.S.C. 634(b)(6) and 648; Pub. L. 101-515, 101 Stat.
2101; Pub. L. 101-574, 104 Stat. 2814; Pub. L. 102-366, 106 Stat.
986; and Pub. L. 102-395, 106 Stat. 1828.
Sec. 130.100 Introduction.
(a) Objective. The SBDC Program creates a broad-based system of
assistance for the small business community by linking the resources of
Federal, State and local governments with the resources of the
educational community and the private sector. Although SBA is
responsible for the general management and oversight of the SBDC
Program, a partnership exists between SBA and the recipient
organization for the delivery of assistance to the small business
community.
(b) Incorporation of amended references. All references in these
regulations to OMB Circulars, other SBA regulations, Standard Operating
Procedures, and other sources of SBA policy guidance incorporate all
ensuing changes or amendments to such sources.
Sec. 130.110 Definitions.
Application. The written submission by a new applicant organization
or an existing recipient organization explaining its projected SBDC
activities for the upcoming budget period and requesting SBA funding
for use in its operations.
Applicant organization. An entity, described in Sec. 130.200(a),
which applies to establish and operate an SBDC network.
Area of Service. The State or territory, or portion of a State or
territory (when there is more than one SBDC in a State or territory),
or the District of Columbia, in which an applicant organization
proposes to provide services or in which a recipient organization
provides services.
Budget period. The 12-month period in which expenditure obligations
are incurred by an SBDC network, coinciding with either the calendar
year or the Federal fiscal year.
Cash Match. Non-Federal funds allocated specifically to the
operation of the SBDC network equalling no less than fifty percent of
the Federal funds. Cash Match includes direct costs committed by the
applicant or recipient organization and sponsoring SBDC organizations,
to the extent that such costs are committed as part of the verified,
specific, line item direct costs prior to funding. Cash Match does not
include indirect costs, overhead costs or in-kind contributions.
Cognizant Agency. The Federal agency, other than SBA, from which a
recipient organization or sponsoring [[Page 31057]] SBDC organization
receives its largest grant or greatest amount of Federal funding, and
from which it obtains an indirect cost rate for budgetary and funding
purposes, applicable throughout the Federal government.
Cooperative Agreement. The written contract between SBA and a
recipient organization, describing the conditions under which SBA
awards Federal funds and recipient organizations provide services to
the small business community.
Cosponsorship. A ``Cosponsorship'' as defined in and governed by
Sec. 8(b)(1)(A) of the Act and SBA's Standard Operating Procedures.
Counseling. Individual advice, guidance or instruction given to a
small business person or entity.
Direct costs: ``Direct costs'' as defined in Office of Management
and Budget (OMB) Circulars A-21, A-87 and A-122. Recipient
organizations must allocate at least 80 percent of the Federal funds
provided through the Cooperative Agreement to the direct costs of
program delivery.
Dispute. Dispute means a program or financial disagreement which
the recipient organization requests be handled with SBA in a formal
manner.
Grants and Cooperative Agreement Appeals Committee. The SBA
committee, appointed by the SBA Administrator, which resolves appeals
arising from financial Disputes between a recipient organization and
SBA.
Grants Management Specialist. An SBA employee designated by the AA/
SBDCs who is responsible for the financial review, award, and
administration of one or more SBDC Cooperative Agreements.
Indirect costs. ``Indirect costs'' as defined in Office of
Management and Budget (OMB) Circular A-21, A-87 or A-122.
In-kind contributions. Property, facilities, services or other non-
monetary contributions from non-federal sources. See OMB Circular A-87,
A-102, or A-110, as appropriate.
Lead Center. The entity which administers and operates the SBDC
network.
Lobbying. Lobbying as described in OMB Circulars A-21, A-87 and A-
122, and Pub. L. 101-121, section 319.
Overmatched Amount. Non-Federal Contributions to SBDC project
costs, including cash, in-kind contributions and indirect costs, in
excess of the statutorily required amount.
Program Announcement. SBA's annual publication of requirements
which an applicant or recipient organization must address in its
initial or renewal application.
Program income. Income earned or received by the SBDC network from
any SBDC supported activity as defined in Attachment D of OMB Circular
A-110 and Attachment E of OMB Circular A-102.
Program manager. An SBA employee responsible for overseeing the
operations of one or more SBDCs.
Project officer. An SBA employee who negotiates the annual
Cooperative Agreement and monitors the ongoing operations of an SBDC.
Project period. The period of time, usually in twelve (12) month
increments, during which the SBDC network operates, beginning on the
day of award and continuing over a number of budget periods.
Recipient organization. The name given to an applicant organization
after funding is approved and the applicant organization enters into a
Cooperative Agreement. The recipient organization receives the Federal
funds and is responsible for establishing the Lead Center.
Recognized Organization. The organization whose members include a
majority of SBDCs and which is recognized as an SBDC representative by
SBA in accordance with Sec. 21(a)(3)(A) of the Small Business Act, 15
U.S.C. 648(a)(3)(A).
SBDC Director. The full-time senior manager designated by each
recipient organization and approved by SBA.
SBDC network. The Lead Center and SBDC service providers.
SBDC service providers. SBDC network participants, including the
Lead Center, subcenters (at times referred to as regional centers),
satellite locations, and any other entity authorized by the recipient
organization to perform SBDC services.
Specialized Services. SBDC services other than Counseling and
Training.
Sponsoring SBDC organizations. Organizations or entities which
establish one or more SBDC service providers as part of the SBDC
network under a contract or agreement with the recipient organization.
Training. The provision of advice, guidance and instruction to
groups of prospective and existing small business persons and entities,
whether by in-person group sessions or by such communication modes as
teleconferences, videos, publications and electronic media.
Sec. 130.200 Eligible entities.
(a) Recipient Organization. The following entities are eligible to
operate an SBDC network:
(1) A public or private institution of higher education;
(2) A land-grant college or university;
(3) A college or school of business, engineering, commerce or
agriculture;
(4) A community or junior college;
(5) An entity formed by two or more of the above entities; or
(6) Any entity which was operating as a recipient organization as
of December 31, 1990.
(b) SBDC Service Providers. SBDC service providers are not required
to meet the eligibility requirements of a recipient organization.
Sec. 130.300 Small Business Development Centers (SBDCs). [Reserved]
Sec. 130.310 Area of service.
The AA/SBDC shall designate in writing the Area of Service of each
recipient organization, consistent with the State plan. More than one
recipient organization may be located in a State or Territory if the
AA/SBDC determines it is necessary or beneficial to implement the
Program effectively and to provide services to all interested small
businesses.
Sec. 130.320 Location of lead centers and SBDC service providers.
(a) The recipient organization must locate its Lead Center and SBDC
service providers so that services are readily accessible to small
businesses in the Area of Service.
(b) The locations of the Lead Center and the SBDC service providers
will be reviewed by SBA as part of the application review process for
each budget period.
Sec. 130.330 Operating requirements.
(a) The Lead Center must be an independent entity within the
recipient organization, having its own staff, including a full-time
SBDC Director.
(b) A Lead Center must provide administrative services and
coordination for the SBDC network, including program development,
program management, financial management, reports management, promotion
and public relations, program assessment and evaluation, and internal
quality control.
(c) The Lead Center shall be open to the public throughout the year
during the normal business hours of the recipient organization.
Anticipated closures shall be included in the annual renewal
application. Emergency closures shall be reported to the SBA Project
Officer as soon as is feasible. Other SBDC service providers shall be
open during the normal business hours of their sponsoring SBDC
organizations.
(d) The Lead Center and other SBDC service providers must have a
conflict of interest policy applicable to their SBDC
[[Page 31058]] consultants, employees, instructors and volunteers.
(e) The SBDC network shall comply with 13 CFR parts 112, 113 and
117, which require that no person shall be excluded on the grounds of
age, color, handicap, marital status, national origin, race, religion
or sex from participation in, be denied that benefits of, or otherwise
be subjected to discrimination under, any program or activity for which
the recipient organization received Federal financial assistance from
SBA.
Sec. 130.340 SBDC services and restrictions on service.
(a) Services. The SBDC network must provide prospective and
existing small business persons and entities with Counseling, Training
and Specialized Services, concerning the formation, financing,
management and operation of small business enterprises, reflecting
local needs. The recipient organization shall primarily utilize
institutions of higher education to provide services to the small
business community. To the extent possible, SBDCs shall use other
Federal, State, and local government programs that assist small
business. Services periodically should be assessed and improved to keep
pace with changing small business needs.
(b) Access to Capital. (1) SBDCs are encouraged to provide
counseling services that increase a small business concern's access to
capital, such as business plan development, financial statement
preparation and analysis, and cash flow preparation and analysis.
(2) SBDCs should help prepare their clients to represent themselves
to lending institutions. While SBDCs may attend meetings with lenders
to assist clients in preparing financial packages, the SBDCs may not
take a direct role in representing clients in loan negotiations.
(3) SBDCs should inform their clients that financial packaging
assistance does not guarantee receipt of a loan.
(4) SBDCs may not make loans, service loans or make credit
decisions regarding the award of loans.
(5) With respect to SBA guaranty programs, SBDCs may assist clients
to formulate a business plan, prepare financial statements, complete
forms which are part of a loan application, and accompany an applicant
appearing before SBA. Unless authorized by the SBA Administrator with
respect to a specific program, an SBDC may not advocate, recommend
approval or otherwise attempt in any manner to influence SBA to provide
financial assistance to any of its clients. An SBDC cannot collect fees
for helping a client to prepare an application for SBA financial
assistance.
(c) Special emphasis initiatives. From time to time, SBA may
identify portions of the general population to be targeted for
assistance by SBDCs. Support of SBA special emphasis initiatives will
be negotiated each year as part of the application process and included
in the Cooperative Agreement when appropriate.
Sec. 130.350 Specific program responsibilities.
(a) Policy development. SBA will establish Program policies and
procedures to improve the delivery of services by SBDCs to the small
business community, and to enhance compliance with applicable laws,
regulations, OMB Circulars and Executive Orders. In doing so, SBA
should consult, to the extent practicable, with the Recognized
Organization.
(b) Responsibilities of SBDC Directors. The SBDC Director shall
direct and monitor program activities and financial affairs of the SBDC
network to deliver effective services to the small business community,
comply with applicable laws, regulations, OMB Circulars and Executive
Orders, and implement the Cooperative Agreement. The SBDC Director has
authority to control expenditures under the Lead Center's budget. SBDC
Directors may manage other programs in addition to the SBDC Program if
the programs serve small businesses and do not duplicate the services
provided by the SBDC network. However, SBDC Directors may not receive
additional compensation for managing these programs. The SBDC Director
shall serve as the principal contact point for all matters involving
the SBDC network.
Sec. 130.360 SBDC advisory boards.
(a) State/Regional Advisory Boards. (1) The Lead Center must
establish an advisory board to advise, counsel, and confer with the
SBDC Director on matters pertaining to the operation of the SBDC
network.
(2) The advisory board shall be referred to as a State SBDC
Advisory Board in an Area of Service having only one recipient
organization, and a Regional SBDC Advisory Board in an Area of Service
having more than one recipient organization.
(3) These advisory boards must include small business owners and
other representatives from the entire Area of Service.
(4) New Lead Centers must establish a State or Regional SBDC
Advisory Board no later than the second budget period.
(5) A State or Regional SBDC Advisory Board member may also be a
member of the National SBDC Advisory Board.
(6) The reasonable cost of travel of any Board member for official
Board activities may be paid out of the SBDC's budgeted funds.
(b) National SBDC Advisory Board. (1) SBA shall establish a
National SBDC Advisory Board consisting of nine members who are not
Federal employees, appointed by the SBA Administrator. The Board shall
elect a Chair. Three members of the Board shall be from universities or
their affiliates and six shall be from small businesses or associations
representing small businesses. Board members shall serve staggered
three year terms, with three Board members appointed each year. The SBA
Administrator may appoint successors to fill unexpired terms.
(2) The National SBDC Advisory Board shall advise and confer with
SBA's AA/SBDCs on policy matters pertaining to the operation of the
SBDC program. The Board shall meet with the AA/SBDCs at least
semiannually.
Sec. 130.400 Application procedure. [Reserved]
Sec. 130.410 New applications.
(a) If SBA declines to renew an existing recipient organization or
the recipient organization declines to reapply, SBA may accept
applications from other organizations interested in becoming a
recipient organization. An eligible entity may apply by submitting an
application to the SBA District Office in the Area of Service in which
the applicant proposes to provide services.
(b) An application for initial funding of a new SBDC network must
include a letter by the Governor, or his or her designee, of the Area
of Service in which the SBDC will operate, or other evidence,
confirming that the applicant's designation as an SBDC would be
consistent with the plan adopted by the State government and approved
by SBA. No such requirement is imposed on subsequent applications from
existing recipient organizations.
(c) The application must set forth the eligible entity or entities
proposing to operate the SBDC network; a list of the Lead Center and
other SBDC service providers by name, address and telephone number; the
geographic areas to be serviced; the resources to be used; the services
that will be provided; the method for delivering the services,
including a description of how and to what extent academic, private and
public resources will be used; a budget; a listing of the proposed
members of the [[Page 31059]] State or Regional Advisory Board and
other relevant information set forth in the Program Announcement.
(d) SBA officials may request supplemental information or
documentation to revise or complete an application.
(e) Upon written recommendation for approval by the SBA District
Director, the proposal shall be submitted to the AA/SBDCs for review.
Sec. 130.420 Renewal applications.
(a) SBDCs shall comply with the requirements in the annual Program
Announcement, including format and due dates, to receive consideration
of their renewal applications. The SBA Project Officer, with the
concurrence of the Program Manager, may grant an extension. The
recipient organization shall submit the renewal application to the SBA
office in the District in which the recipient organization is located.
The annual Program Announcement will include a timetable for SBA
review.
(b) After review by the SBA Project Officer and written
recommendation for approval by the District Director, the Program
Manager and Grants Management Specialist shall review the renewal
application for conformity with the Program Announcement, OMB Circulars
and all other statutory, financial and regulatory requirements. SBA
officials may request supplemental information and documentation prior
to issuing the Cooperative Agreement.
Sec. 130.430 Application decisions.
(a) The AA/SBDCs may approve, conditionally approve, or reject any
application. In the event of a rejection, the AA/SBDCs shall
communicate the reasons for rejection to the applicant and the
appropriate SBA field office. If the approval is conditional, the
conditions and applicable remedies shall be specified as special terms
and conditions in the Cooperative Agreement. Upon approval or
conditional approval, the Grants Management specialist may issue a
Cooperative Agreement.
(b) In considering the application, significant factors shall
include:
(1) The applicant's ability to contribute Matching Funds;
(2) For renewal Proposals, the quality of prior performance;
(3) The results of any examination conducted pursuant to
Sec. 130.810(b) of these regulations; and
(4) Any certification resulting from any certification program
developed by the Recognized Organization.
(c) In the event of a conditional approval, SBA may conditionally
fund a recipient organization for one or more specified periods of time
up to a maximum of one budget period. If the recipient organization
fails to resolve the specified matters to the AA/SBDCs' satisfaction
within the allotted time period, SBA has the right to discontinue
funding the SBDC, subject to the provisions of Sec. 130.700.
Sec. 130.440 Maximum grant.
No recipient shall receive an SBDC grant exceeding the greater of
the minimum statutory amount, or its pro rata share of all SBDC grants
as determined by the statutory formula set forth in section 21(a)(4) of
the Act.
Sec. 130.450 Matching funds.
(a) The recipient organization must provide total Matching Funds
equal to the total amount of SBA funding. At least 50% of the Matching
Funds must be Cash Match. The remaining 50% may be provided through any
allowable combination of additional cash, in-kind contributions, or
indirect costs.
(b) All sources of Matching Funds must be identified as
specifically as possible in the budget proposal. Cash sources shall be
identified by name and account. All applicants must submit a
Certification of Cash Match and Program Income executed by an
authorized official of the recipient organization or any sponsoring
SBDC organization providing Cash Match through a subcontract agreement.
The account containing such cash must be under the direct management of
the SBDC Director, or, if provided by a sponsoring SBDC organization,
its subcenter Director. If a political entity is providing such cash
and the funds have not been appropriated prior to issuance of the
Cooperative Agreement, the recipient organization must certify that
sufficient funds will be available from the political entity prior to
the use of Federal dollars.
(c) The Grants Management Specialist is responsible for determining
whether Matching Funds or Cash Match meet the requirements of the Act
and appropriate OMB circulars.
(d) Overmatched Amounts. (1) SBDC are encouraged to furnish
Overmatched Amounts.
(2) An Overmatched Amount can be applied to additional Matching
Funds requirements necessitated by any supplemental funding increase
received by the SBDC during the budget period, as long as the total
Cash Match provided by the SBDC is 50% or more of the total SBA funds
provided during the budget period.
(3) If used in the manner described in paragraph (d)(2) of this
section, such Overmatched Amount is reclassified as committed Matching
Funds.
(4) Allowable Overmatched Amounts which have not been used in the
manner described in paragraph (d)(2) of this section may, with the
approval of the AA/SBDCs, be used as a credit to offset any confirmed
audit disallowances applicable only to the budget period in which the
Overmatched Amount exists and the two previous budget periods. Such
offsetting funds shall be considered Matching Funds.
(e) Impermissible sources of Matching Funds. Under no circumstances
may the following be used as sources of the Matching Funds of the
recipient organization:
(1) Uncompensated student labor;
(2) SCORE, ACE, or SBI volunteers;
(3) Program income or fees collected from small businesses
receiving assistance;
(4) Funds or indirect or in-kind contributions from any other
Federal source.
Sec. 130.460 Budget justification.
The SBDC Director, as a part of the renewal application, or the
applicant organization's authorized representative in the case of a new
SBDC application, shall prepare and submit to the SBA Project Officer
the budget justification for the upcoming budget period. The budget
shall be reviewed annually upon submission of a renewal application.
(a) Direct costs. Unless otherwise provided in applicable OMB
circulars, at least eighty percent (80%) of SBA funding must be
allocated to direct costs of Program delivery.
(b) Indirect costs. If the applicant organization waives all
indirect costs to meet the Matching Funds requirement, one hundred
percent (100%) of SBA funding must be allocated to program delivery. If
some, but not all, indirect costs are waived to meet the Matching Funds
requirement, the lesser of the following may be allocated as indirect
costs of the Program and charged against the Federal contribution:
(1) Twenty percent (20%) of Federal contribution, or
(2) The amount remaining after the waived portion of indirect costs
is subtracted from the total indirect costs.
(c) Separate SBDC service provider budgets.
(1) The applicant organization shall include separate budgets for
all subcontracted SBDC service providers in conformity with OMB
requirements. Applicable direct cost categories and indirect cost base/
rate agreements shall be included for the Lead Center and all SBDC
service providers, using a rate [[Page 31060]] equal to or less than
the negotiated predetermined rate. If no such rate exists, the
sponsoring SBDC organization or SBDC service provider shall negotiate a
rate with its Cognizant Agency. In the event the sponsoring SBDC
organization or SBDC service provider does not have a Cognizant Agency,
the rate shall be negotiated with the SBA Project Officer in accordance
with OMB guidelines (see OMB Circular A-21).
(2) The amount of cash, in-kind contributions and indirect costs
for the Lead Center and all sub-contracted SBDC service providers shall
be indicated in accordance with OMB requirements.
(d) Cost principles. Principles for determining allowable costs are
contained in OMB Circulars A-21 (cost principles for grants, contracts,
and other agreements with educational institutions), A-87 (cost
principles for programs administered by State and local governments),
and A-122 (cost principles for nonprofit organizations).
(e) Costs associated with lobbying. No portion of the Federal
contribution received by an SBDC may be used for lobbying activities,
either directly by the SBDC or indirectly through outside
organizations, except those activities permitted by OMB. Restrictions
on and reports of lobbying activities by the SBDC shall be in
accordance with OMB requirements, Section 319 of Public Law No. 101-
121, and the annual Program Announcement.
(f) Salaries. (1) If a recipient organization is an educational
institution, the salaries of the SBDC Director and the subcenter
Directors must approximate the average annualized salary of a full
professor and an assistant professor, respectively, in the school or
department in which the SBDC is located. If a recipient organization is
not an educational institution, the salaries of the SBDC Director and
the subcenter Directors must approximate the average salaries of
parallel positions within the recipient organization. In both cases,
the recipient organization should consider the Director's longevity in
the Program, the number of subcenters and the individual's experience
and background.
(2) Salaries for all other positions within the SBDC should be
based upon level of responsibility, and be comparable to salaries for
similar positions in the area served by the SBDC.
(3) Recruitment and salary increases for SBDC Directors, subcenter
Directors and staff members should conform to the administrative policy
of the recipient organization.
(g) Travel. All travel must be separately identified in the
proposed budget as planned in-State, planned out-of-State, unplanned
in-State or unplanned out-of-State. All proposed travel must use coach
class, apply directly to specific work of the SBDC or be incurred in
the normal course of Program administration, and conform to the written
travel policies of the recipient organization or the sponsoring SBDC
organization. (Per diem rates, including lodging, shall not exceed
those authorized by the recipient organization.) Transportation costs
must be justified in writing, including the estimated cost, number of
persons traveling, and the benefit to be derived by the small business
community from the proposed travel. A specific projected amount, based
on the SBDC's past experience, where appropriate, must also be included
in the budget for unplanned travel. A more detailed justification must
be given for unplanned out-of-State travel. Any proposed unplanned out-
of-State travel exceeding the approved budgeted amount for travel must
be submitted to the Project Officer for approval on a case-by-case
basis. Travel outside the United States must have prior approval by the
AA/SBDCs on a case-by-case basis.
(h) Dues. Costs of memberships in business, technical, and
professional organizations shall be allowable expenses. The use of
Federal funds to pay dues for business, technical and professional
organizations shall be permitted, provided that the payments are
included in the budget proposal, are approved by the SBA and comply
with Sec. 130.460(e).
Sec. 130.470 Fees.
An SBDC may charge clients a reasonable fee to cover the costs of
Training sponsored or cosponsored by the SBDC, costs of services
provided by or obtained from third parties, or the costs of providing
Specialized Services. Fees may not be imposed for Counseling.
Sec. 130.480 Program income.
(a) Program income for recipient organizations or SBDC service
providers based in universities or nonprofit organizations shall be
subject to OMB requirements (see OMB Circular A-110). Program income
for recipient organizations or SBDC service providers based in State or
local governments shall be subject to OMB requirements (see the
provisions of Sec. 7.e and Attachment E of OMB Circular A-102) and 13
CFR 143.25.
(b) Program income, including any interest earned on Program
income, must be used to expand the quantity or quality of services,
resources or outreach provided by the SBDC network. It cannot be used
to satisfy the requirements for Matching Funds. The Project Officer
shall monitor the use of Program income. Any unused Program income will
be carried over to a subsequent budget period.
(c) SBDCs must report in detail on standard SBA forms receipts and
expenditures of program income, including any income received through
cosponsored activities. A narrative description of how Program income
was used to accomplish Program objectives shall be included.
Sec. 130.500 Funding.
The SBA funds Cooperative Agreements through its internal Letter of
Credit Replacement System (LORS), using SBA standard forms to establish
and modify letters of credit. SBDCs must use SBA standard forms to draw
down funds required to meet their estimated or actual expenses and to
submit quarterly cash transactions reports used by SBA to monitor the
frequency of drawdowns and the cash-on-hand balance. Repeated drawdowns
in excess of immediate cash needs may result in the cancellation of the
letter of credit. If interest results from the deposit of any drawdowns
in an interest-bearing account, SBDCs, other than State government
sponsored SBDCs, must report and return such interest annually to SBA.
Sec. 130.600 Cooperative agreement. [Reserved]
Sec. 130.610 General terms.
Upon approval of the initial or renewal application, SBA will enter
into a Cooperative Agreement with the recipient organization, setting
forth the programmatic and fiscal responsibilities of the recipient
organization and SBA, the scope of the project to be funded, and the
budget of the program year covered by the Cooperative Agreement.
Administrative requirements are contained in 13 CFR 143 and applicable
OMB Circulars.
Sec. 130.620 Revisions and amendments to cooperative agreement.
(a) Requests for revisions. The recipient organization may request
at any time one or more revisions to the Cooperative Agreement on an
appropriate SBA form signed by the recipient organization's authorized
representative (including a revised [[Page 31061]] budget and budget
narrative, if applicable). Revisions will normally relate to changes in
scope, work or funding during the specified budget year.
(b) Revisions which require amendment to Cooperative Agreement. The
Cooperative Agreement shall list the revisions which require Project
Officer concurrence, review by the Program Manager and the Grants
Management Specialist, approval of the AA/SBDCs and amendment of the
Cooperative Agreement. No application for an amendment shall be
effective until it is approved and incorporated into the Cooperative
Agreement. Revisions which require amendments shall include:
(1) any change in project scope or objectives;
(2) the addition or deletion of any subgrants or contracts;
(3) the addition of any new budget line items;
(4) Budget revisions and fund reallocations exceeding the limit
established by applicable administrative regulations or OMB Circulars,
either individually or in the aggregate (see paragraphs (c)(1) and
(c)(2) of this section);
(5) any proposed sole-source or one-bid contracts exceeding the
limits established by applicable regulations or OMB Circulars; and
(6) the carryover from one budget period to the next budget period
of unobligated, unexpended SBA funds allocable under the Cooperative
Agreement to nonrecurring, nonseverable bona fide needs of the SBDC
network as provided in applicable OMB Circulars and the annual Program
Announcement.
(c) Revisions which do not require amendments to the Cooperative
Agreement--(1) Budget revisions. Any budget revision, except those
which are covered by paragraph (b)(4) of this section. Budget revisions
require approval of the SBA Project Officer and the AA/SBDCs as
prescribed by applicable OMB Circulars or 13 CFR 143.30.
(2) Reallocation of funds. Reallocation of funds must be conducted
in accordance with applicable OMB Circulars or 13 CFR 143.30.
Additional guidance on this matter may be included in the annual
Program Announcement.
Sec. 130.630 Dispute resolution procedures.
(a) Financial Disputes. (1) A recipient organization wishing to
resolve a financial Dispute formally must submit a written statement
describing the subject of the Dispute, together with any relevant
documents or other evidence bearing on the Dispute, to the Grants
Management Specialist, with copies to the Project Officer. The Grants
Management Specialist shall respond in writing to the recipient
organization within 30 calendar days of receipt of the descriptive
statement.
(2) If the recipient organization receives an unfavorable decision
from the Grants Management Specialist, it may file an appeal with the
AA/SBDCs within 30 calendar days of issuance of the unfavorable
decision. The AA/SBDCs shall respond in writing to the recipient
organization within 15 calendar days of receipt of the appeal.
(3) If the recipient organization receives an unfavorable decision
from the AA/SBDCs, it may make a final appeal to the SBA Grants and
Cooperative Agreements Appeals Committee (the ``Committee'') within 30
calendar days of the date of issuance of the AA/SBDCs' written
decision. Copies of the appeal shall also be sent to the Grants
Management Specialist and the Project Officer.
(4) Appeals must be in writing. Formal briefs and other technical
forms of pleading are not required. Requests for a hearing will not be
granted unless there are material facts substantially in dispute.
Appeals must contain at least the following:
(i) Name and address of the recipient organization;
(ii) The SBA field office;
(iii) The Cooperative Agreement;
(iv) A statement of the grounds for appeal, with reasons why the
appeal should be sustained;
(v) The specific relief desired on appeal; and
(vi) If a hearing is requested, a statement of the material facts
which are substantially in dispute.
(5) The AA/SBDCs or the Committee may request from the SBDC or the
District Office additional information or documentation at any stage in
the proceedings.
(6) If a request for a hearing is granted, the Committee will
provide the recipient organization with written instructions, and will
afford the parties an opportunity to present their positions to the
Committee.
(7) The Committee will reach a decision on the merits of the appeal
within 30 days of the hearing date.
(8) The Chairperson, with advice from the Office of General
Counsel, shall prepare and transmit a written final decision to the
recipient organization with copies to the Grants Management Specialist
and the Project Officer.
(9) Expedited Dispute appeal process. By an affirmative vote
constituting a majority of its total membership, the Committee may
shorten response times to attain final resolution of a Dispute before
the issuance date of a new Cooperative Agreement. At any time within
120 days of the end of the budget period, the recipient organization
may submit a written request to use an expedited process. If a Dispute
affects refunding, the Committee must meet to consider the matter prior
to the end of the budget period, provided that the recipient
organization has supplied the Committee with all requested
documentation.
(b) Programmatic (non-financial) Disputes. (1) If a programmatic
Dispute is not resolved at the SBA District Office level, the recipient
organization may request its submission to the next SBA administrative
level having authority to review such matter. The Project Officer shall
refer the Dispute in writing, including comments of the SBDC Director,
within 15 calendar days of receipt of the request.
(2) If the programmatic Dispute is not resolved at an intermediate
SBA administrative level within 15 calendar days of receipt thereof, it
shall be forwarded, in writing, to the AA/SBDCs for final resolution.
All comments of the SBDC Director must be included in any package
forwarded to the AA/SBDCs.
(3) The AA/SBDCs shall transmit a final, written decision to the
recipient organization, the SBDC Director, the SBA Project Officer and
other appropriate SBA field office personnel within 30 calendar days of
receipt of such documentation, unless an extension of time is mutually
agreed upon by the recipient organization and the AA/SBDCs.
Sec. 130.700 Suspension, termination and non-renewal.
(a) General. After SBA has entered into a Cooperative Agreement
with a recipient organization, it shall not suspend, terminate or fail
to renew the agreement unless SBA gives the recipient organization
written notice setting forth the reasons and affording the recipient
organization an opportunity for a hearing. Subject to this requirement
and the provisions of Sec. 130.700(c) regarding non-renewal procedures
for non-performance, the applicable general procedures for suspension
and termination are contained in 13 CFR 143.43 and 143.44, and in OMB
Circular A-110, Attachment L.
(b) Causes. Causes which may lead to suspension, termination, or
failure to renew include non-performance, poor performance,
unwillingness to implement changes to improve
[[Page 31062]] performance, or any of the following reasons:
(1) Disregard or material violation of these regulations;
(2) A willful or material failure to perform under the Cooperative
Agreement or under these regulations;
(3) Conduct reflecting a lack of business integrity or honesty;
(4) A conflict of interest causing real or perceived detriment to a
small business concern, a contractor, the SBDC or SBA;
(5) Improper use of Federal funds;
(6) Failure of a Lead Center or its subcenters to consent to audits
or examination or to maintain required documents or records;
(7) Failure of the SBDC Director to work at the SBDC Lead Center on
a full-time basis;
(8) Failure promptly to suspend or terminate the employment of an
SBDC Director, subcenter Director or other key employee upon receipt of
knowledge by the recipient organization and/or SBA that such individual
is engaging in or has engaged in conduct resulting in a criminal
conviction or civil judgment which would cause the public to question
the SBDC's business integrity, taking into consideration such factors
as the magnitude, repetitiveness, harm caused and remoteness in time of
the activity or activities underlying the conviction or judgment.
(9) Violation of the SBDC's standards of conduct as specified in
these rules and as established by the SBDC pursuant to these rules; or
(10) Any other cause not otherwise specified which materially and
adversely affects the operation or integrity of an SBDC or the SBDC
program.
(c) Non-Renewal Procedure. (1) Subject to Sec. 130.700(a), when an
SBA District Director believes there is sufficient evidence of SBDC
nonperformance, poor performance or unwillingness to implement changes
to improve performance, under the terms of the Cooperative Agreement or
these regulations, the District Director shall notify the SBDC Director
and any other appropriate official of the recipient organization of an
intention not to approve its renewal application.
(2) Notice can be submitted at any time during the budget period,
but normally should be sent no later than 3 months prior to the due
date for renewal applications at the District Office.
(3) The notice shall specifically cite the reasons for the
intention not to renew. It must allow the recipient organization 60
days within which to change its operations to correct the problems
cited in the notice, and to report to the Project Officer, in writing,
regarding the results of such changes.
(4) If the recipient organization is unwilling or unable to address
the specific problem areas to the satisfaction of the SBA District
Office within the 60-day period, the SBA Project Officer shall have ten
(10) calendar days after expiration of the 60 days to submit to the AA/
SBDCs a written description of the unresolved issues, a summary of the
positions of the District Office on the issues, and any supportive
documentation.
(5) The AA/SBDCs shall transmit a written, final decision to the
recipient organization, the SBDC Director, the SBA Project Officer and
other appropriate SBA field office personnel within 30 calendar days of
receipt of such documentation, unless an extension of time is mutually
agreed upon by the recipient organization and the AA/SBDCs.
(6) The AA/SBDCs shall consider written documentation of the issues
to be resolved, including all relevant correspondence between the
Project Officer, District Director and any other SBA personnel and the
affected recipient organization. At a minimum, such documentation shall
commence with the first written notice of issues invoking the non-
renewal procedure. In addition, the AA/SBDCs also may communicate with
the recipient organization and appropriate SBA personnel.
(7) If the AA/SBDCs determines that the evidence submitted
establishes nonperformance, ineffective performance or an unwillingness
to implement suggested changes to improve performance, the AA/SBDCs
shall have full discretion to order non-renewal of the SBDC. The SBA
District Office shall then pursue proposals from other organizations
interested in applying for SBDC designation. The incumbent SBDC shall
have until the end of the budget period or 120 days, whichever is
longer, to conclude operations and to submit close-out documents to the
SBA District Office. Close-out procedures shall conform with applicable
OMB Circulars.
(d) Effect of action on subcenter. If competing applications are
being accepted, a subcenter of the previously funded recipient
organization may apply for designation as the recipient organization,
so long as the subcenter was not involved in the conduct leading to
non-renewal or termination of the former recipient organization.
Sec. 130.800 Oversight of the SBDC program.
SBA shall monitor and oversee the Cooperative Agreement and ongoing
operations of the SBDC network to ensure the effective and efficient
use of Federal funds for the benefit of the small business community.
Sec. 130.810 SBA review authority.
(a) Site visits. The AA/SBDCs, or a representative, on notice to
the SBDC Director, is authorized to make programmatic and financial
review visits to SBDC service providers to inspect records and client
files, and to analyze and assess SBDC activities.
(b) SBA examinations. SBA examiners shall perform a biannual
programmatic and financial examination of each SBDC.
(c) Certification program. SBA may provide financial support to the
Recognized Organization to develop and implement an SBDC certification
program.
(d) Audits. The examinations by SBA examiners shall not substitute
for audits required of Federal grantees under the Single Audit Act of
1984 or applicable OMB guidelines (see Circulars A-110, A-128 and A-
133), nor shall such internal review substitute for audits to be
conducted by the SBA Office of Inspector General under authority of the
Inspector General Act of 1978, as amended (see Sec. 130.830(b)).
Sec. 130.820 Reports and recordkeeping.
(a) Records. The recipient organization shall maintain the records
required for a Lead Center audit and SBA reports. Lead Centers and
other SBDC service providers shall maintain detailed, complete and
accurate client activity files, specifying counseling, training and
other assistance provided.
(b) Reports. The recipient organization shall submit client service
evaluations and performance and financial reports for SBA review to
determine the quality of services provided by the SBDC, the
completeness and accuracy of SBDC records, and actual SBDC network
accomplishments compared to performance objectives.
(1) Performance reports. For recipient organizations in the Program
for more than three years, interim reports shall be due 30 days after
completion of six months of operation each year; for those recipient
organizations in the Program three years or less, reports shall be due
30 days after completion of each of the first three quarters. The
annual report shall include the second semiannual or the fourth quarter
report and shall be due December 30 for fiscal year and March 30 for
calendar year SBDCs. These reports shall reflect accurately the
activities, accomplishments and deficiencies of the SBDC
network. [[Page 31063]]
(d) Financial reports. The recipient organization shall provide
three quarterly and one annual financial report to the SBA Project
Officer as set forth in the Program Announcement and the Cooperative
Agreement, in compliance with OMB Circulars.
(e) Availability of records. As required by OMB (see Circular A-
133), all SBDC service provider records shall be made available to SBA
for review upon request.
Sec. 130.830 Audits and investigations.
(a) Access to records. Applicable OMB Circulars set forth the
requirements concerning record access and retention.
(b) Audits. (1) Pre-award audit. Applicant organizations that
propose to enter the Program for the first time may be subject to a
pre-award audit conducted by or coordinated with the SBA Office of
Inspector General. The purpose of a pre-award audit is to verify the
adequacy of the accounting system, the suitability of posed costs and
the nature and source of proposed Matching Funds.
(2) Interim or final audits. The recipient organization or SBA may
conduct SBDC network audits. All audits will be conducted according to
Government Auditing Standards, promulgated by the Comptroller General
of the United States.
(i) The recipient organization will conduct its audits as a single
audit of a recipient organization pursuant to OMB Circulars A-102, A-
110, A-128, and A-133, as applicable.
(ii) The SBA Office of Inspector General or its agents will
conduct, supervise, or coordinate SBA's audits, which may, at SBA's
discretion, be audits of the SBDC network, even though single audits
may have been performed. In such instances, SBA will conduct such
audits in compliance with Government Auditing Standards and all
applicable OMB Circulars.
(c) Investigations. SBA may conduct investigations as it deems
necessary to determine whether any person or entity has engaged in acts
or practices constituting a violation of the Act, any rule, regulation
or order issued under that Act, or any other applicable Federal law.
Dated: May 9, 1995.
Philip Lader,
Administrator.
[FR Doc. 95-14371 Filed 6-12-95; 8:45 am]
BILLING CODE 8025-01-M
