The Small Business Administration (SBA) continues to focus its regulatory efforts towards delivering sound economic development programs to small businesses through streamlined, customer-oriented regulations. SBA began its efforts to streamline SBA regulations in 1994 in response to a Presidential directive to all agencies to review, revise, and eliminate regulations. SBA followed the directive, thoroughly reviewed all regulations, and by 1996, revised the bulk of SBA's regulations. The revised regulations are less burdensome, more ``user-friendly,'' and provide for more efficient operations. The regulations incorporate SBA's mission to ensure access to capital to our Nation's small businesses.
SBA's 1998 Regulatory Plan
Today, SBA regulations are streamlined and current. The SBA expects Congress to enact legislation that will require some alterations to SBA's lending and investment programs (13 CFR 107 and 120). SBA does not anticipate the need to draft substantive regulations for the Agency's 1998 initiatives and therefore submits no new regulations for the 1998 regulatory plan.
SBA's 1999 Regulatory Plan
Section 7(a) of the Small Business Act states that the Small Business Administration may provide financing to small businesses ``directly or in cooperation with banks or other financial institutions.'' Today, SBA guarantees loans through approximately 7,000 lenders. Of these lenders, 14 currently are Small Business Lending Companies (SBLCs) that are not otherwise regulated by Federal or State chartering, licensing, or similar regulatory control. SBA examines or audits these SBLCs periodically. In view of SBA's desire to manage its guaranteed loan portfolio more effectively, along with recent increases in loan volume, SBA expects to increase its SBLC oversight. To that end, SBA will draft regulations that govern the oversight and operation of the SBLC program.
Other than the SBLC regulations, SBA does not anticipate the need to draft substantive regulations for the Agency's 1999 initiatives and therefore submits no further regulations for the 1999 regulatory plan.