Respondents are applicants for a Certified Development Company (CDC) loan (or 504 loan) and the CDC's certified by SBA to issue such loans. The information is necessary for the Small Business Administration (SBA) to determine whether applicants meet the Agency's criteria for eligibility, creditworthiness, and repayment ability, and also whether to approve CDC's request for debenture guarantees.
December 28, 2021
Ms. Susan Minson 0MB Desk Officer
Office of Information and Regulatory Affairs Office of Management and Budget
725 17th Street, NW Washington, DC 20503
409 3rd Street, SW
Washington, DC 20416
Dear Ms. Minson:
Pursuant to the Office of Management and Budget (0MB) procedures established at 5 CFR 1320, the Small Business Administration (SBA) requests that the collection of information associated with the application form for a 504 loan (SBA Form 1244) be processed in accordance with section 1320.13, Emergency Processing, by January 14, 2022. The application form needs to be updated as soon as possible to incorporate the changes made by Section 328(b) of the Economic Aid to Hard Hit Small Businesses, Nonprofits, and Venues Act (the Economic Aid Act) to the criteria for 504 Express (referred to by SBA as ALP Express) under SBA' s 504 Loan Program. The changes being made to conform the form to the Economic Aid Act amendments, include adding an option for CDCs to select "ALP Express" as a submission method and revising the instructions to clarify submission procedures and the exhibits to be submitted for each type of submission.
SBA has determined that the revisions to this information collection are essential to SBA's ability to delegate the increased authority granted to ALP CDCs to make ALP Express loans, and in order to implement the revisions as expeditiously as a possible, the information collection must be revised prior to the expiration off time periods established under Part 1320. Further delaying implementation of the ALP Express loan authority of the Economic Aid Act would cause harm to the 504 borrowers who are depending on this program efficiency. SBA also requests a waiver from the requirement to publish the public comment notice in the Federal Register before seeking review. SBA will publish the required notices before seeking standard review and approval for continued use of this information collection after the emergency period expires.
Dianna L. Seaborn Director
Office of Financial Assistance
None
US Code: 15 USC 697 Name of Law: 504 and 7(a) Loan Program
The total annual hour burden is estimated to decrease slightly compared to the last submission. While FY 2021 was a record-breaking year for 504 loan submissions, this increased activity was due primarily to the availability of enhanced financial benefits authorized by the CARES Act. Since those benefits have expired , SBA has no indication that this higher level of 504 program activity will be sustained in FY 2022.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Form SBA Form 1244 U.S. Small Business Administration Application for Section 504 Loan
3245-0071 ALP Express EAA Authority 12-29-2021.docx
3245-0071 15USC 12-29-2021.pdf
U.S. Small Business Administration Application for Section 504 Loan