DATE: October 10, 2000

FROM: Barry McVay, CPCM

SUBJECT: Small Business Administration; Program for Investment in Microentrepreneurs Act

SOURCE: Federal Register, October 10, 2000, Vol. 65, No. 196, page 60225

AGENCIES: Small Business Administration (SBA)

ACTION: Notice Proposed Rulemaking

SYNOPSIS: SBA is proposing to add new regulations to implement the Program for Investment in Microentrepreneurs (PRIME) Act which was created November 12, 1999, with the enactment of Title VII of the Gramm-Leach-Bliley Act (Public Law 106-102). The program is intended to provide training and technical assistance to disadvantaged microentrepreneurs through grants to qualified Microenterprise Development Organizations (MDOs).

EDITOR'S NOTE: The SBA's regulations are in Title 13 of the Code of Federal Regulations (CFR).

DATES: Comments must be submitted by November 9, 2000.

ADDRESSES: Send your comments to Jane Palsgrove Butler, Associate Administrator, Microenterprise Development Branch, Office of Financial Assistance (OFA), U.S. Small Business Administration, 409 3rd Street, SW, Washington, DC 20416, 202-205-6497.

FOR FURTHER INFORMATION CONTACT: Jody Raskind, Chief, Microenterprise Development Branch, 202-205-6485.

SUPPLEMENTAL INFORMATION: With the enactment of the PRIME Act, Congress recognized that many disadvantaged microentrepreneurs (low and very-low income businesses) need training and technical assistance to start, operate, strengthen, or expand their businesses. The PRIME Act intends to achieve this with the award of PRIME grants to qualified MDOs to help them meet the training and technical assistance needs for disadvantaged microentrepreneurs, which will encourage entrepreneurship and capital formation at the community level.

To implement the provisions of the PRIME Act, SBA proposes to amend Title 13 of the CFR by adding Part 119, Program for Investment in Microentrepreneurs ("PRIME" or "the Act"). The following are the main provisions of the proposed Part 119:

The rest of the proposed Part 119 section address the making of subgrants, limitations on the use of program income, carryover procedures from one fiscal year to the next of unexpended federal funds, SBA reporting and record keeping requirements, SBA oversight unctions, restrictions against lobbying, fundraising costs, and conflict of interests.

In addition, this proposed rule includes three separate Program Announcements, one for each category of grants except Discretionary Grants. These Program Announcements will not appear in the regulations, but are published so interested parties may comment on their contents and format. Essentially, each reiterates the requirements and provisions contained in proposed 13 CFR Part 119.

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

Copyright 2000 by Panoptic Enterprises. All Rights Reserved.

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