<<

Federal Register / Vol. 86, No. 8 / Wednesday, 13, 2021 / Rules and Regulations 2529

TABLE 1 TO PARAGRAPH (b)—Continued

Adjusted civil Statute money penalty

Third Tier ...... 2,073,133 12 U.S.C. 505: First Tier ...... 10,366 Second Tier ...... 51,827 Third Tier ...... 2,073,133 12 U.S.C. 1464(v)(4) ...... 4,146 12 U.S.C. 1464(v)(5) ...... 41,463 12 U.S.C. 1464(v)(6) ...... 2,073,133 12 U.S.C. 1467a(i)(2) ...... 51,827 12 U.S.C. 1467a(i)(3) ...... 51,827 12 U.S.C. 1467a(r): First Tier ...... 4,146 Second Tier ...... 41,463 Third Tier ...... 2,073,133 12 U.S.C. 1817(j)(16): First Tier ...... 10,366 Second Tier ...... 51,827 Third Tier ...... 2,073,133 12 U.S.C. 1818(i)(2): First Tier ...... 10,366 Second Tier ...... 51,827 Third Tier ...... 2,073,133 12 U.S.C. 1820(k)(6)(A)(ii) ...... 341,000 12 U.S.C. 1832(c) ...... 3,011 12 U.S.C. 1847(b) ...... 51,827 12 U.S.C. 1847(d): First Tier ...... 4,146 Second Tier ...... 41,463 Third Tier ...... 2,073,133 12 U.S.C. 1884 ...... 301 12 U.S.C. 1972(2)(F): First Tier ...... 10,366 Second Tier ...... 51,827 Third Tier ...... 2,073,133 12 U.S.C. 3110(a) ...... 47,378 12 U.S.C. 3110(c): First Tier ...... 3,791 Second Tier ...... 37,901 Third Tier ...... 1,895,095 12 U.S.C. 3909(d) ...... 2,579 15 U.S.C. 78u–2(b)(1): For a natural person ...... 9,753 For any other person ...... 97,523 15 U.S.C. 78u–2(b)(2): For a natural person ...... 97,523 For any other person ...... 487,616 15 U.S.C. 78u–2(b)(3): For a natural person ...... 195,047 For any other person ...... 975,230 15 U.S.C. 1639e(k)(1) ...... 11,906 15 U.S.C. 1639e(k)(2) ...... 23,811 42 U.S.C. 4012a(f)(5) ...... 2,252

By order of the Board of Governors of the SMALL BUSINESS ADMINISTRATION Development (BD) program. The U.S. Federal Reserve System, under delegated Small Business Administration (SBA) is authority. 13 CFR Part 124 revising its regulations to implement a Ann Misback, RIN 3245–AH64 provision in the Consolidated Secretary of the Board. Appropriations Act, 2021 [FR Doc. 2021–00235 Filed 1–12–21; 8:45 am] Extension of Participation in 8(a) (Appropriations Act), and the National BILLING CODE 6210–01–P Business Development Program Defense Authorization Act for Fiscal AGENCY: U.S. Small Business Year 2021 (NDAA 2021), which Administration. authorized certain 8(a) Participants to extend their 8(a) BD program term by a ACTION: Interim final rule. period of one year. This interim final SUMMARY: This interim final rule rule amends the 8(a) BD program contains amendments to the regulations regulations to carry out the changes governing the 8(a) Business made by the Act.

VerDate Sep<11>2014 16:05 Jan 12, 2021 Jkt 253001 PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 E:\FR\FM\13JAR1.SGM 13JAR1 2530 Federal Register / Vol. 86, No. 8 / Wednesday, , 2021 / Rules and Regulations

DATES: 13, 2020) (https://www.whitehouse.gov/ the NDAA 2021, SBA is amending Effective date: This interim final rule presidential-actions/proclamation- § 124.2 of its regulations to incorporate is effective on January 13, 2021. declaring-national-emergency- the optional program term extension for Comment date: Comments must be concerning-novel-coronavirus-disease- small business concerns participating in received no later than 15, 2021. covid-19-outbreak). the 8(a) BD program on , 2020. ADDRESSES: You submit comments, Section 869 of the National Defense Specifically, revised § 124.2 provides identified by RIN: 3245–AH64 by any of Authorization Act for Fiscal Year 2021, that for a firm participating in the 8(a) the following methods: Public Law 116–283, title VIII, sec. 869 BD program as of March 13, 2020 and • Federal eRulemaking Portal: http:// (January 1, 2021) (NDAA 2021) also through January 13, 2021, SBA will www.regulations.gov. Follow the contained the same language extend its program term by one year instructions for submitting comments. authorizing business concerns unless the concern declines such • Email: Van Tran, Deputy Associate participating in the 8(a) BD program on extension. A firm that was participating Administrator, Office of Business or before 9, 2020 to extend in the 8(a) BD program as of March 13, Development, Small Business their participation in the program for a 2020, but has since graduated or Administration, at 8aQuestions@ period of one year from the end of their otherwise left the program before sba.gov. program terms. The statutory language January 13, 2021 must notify SBA of its SBA will post all comments on http:// of both the Appropriations Act and intent to be readmitted for a period of www.regulations.gov. If you wish to NDAA 2021 authorizes an extension for one year from the date it completed its submit confidential business firms participating in the program ‘‘on program term. Any such notification information (CBI), as defined in the User or before , 2020.’’ There is must be received by SBA no later than Notice at http://www.regulations.gov, no further clarifying language as to what , 2021. In addition, a firm please submit the information to Van ‘‘before’’ September 9, 2020 is intended seeking to be readmitted must certify Tran, Deputy Associate Administrator, to encompass. It is SBA’s understanding that it continues to meet the applicable Office of Business Development, Small that Congress extended the term of eligibility requirements as set forth in Business Administration at participation in the 8(a) BD program §§ 124.101 through 124.111. [email protected]. Highlight the because it believed that the pandemic SBA is also revising § 124.2 to clarify information that you consider to be CBI has adversely affected 8(a) concerns and that any period of extension under the and explain why you believe SBA their ability to participate in and receive Act will be added to a Participant’s should hold this information as the full benefits of the program. Thus, transitional stage of participation in the confidential. SBA will review the SBA believes it is reasonable to 8(a) BD program. SBA has selected this information and make the final conclude that any firms participating in approach for two reasons. First, in determination on whether it will the program as of the date the national authorizing an extension of 8(a) BD publish the information. disaster was declared due to the program participation, Congress clearly pandemic (i.e., March 13, 2020) should intended to give certain 8(a) Participants FOR FURTHER INFORMATION CONTACT: Van receive the program term extension the opportunity to recover and take full Tran, Deputy Associate Administrator, authorized by Congress. advantage of the program’s business Office of Business Development, Office This extension authority does not development assistance, including the of Government Contracting and extend to business concerns that additional assistance available to firms Business Development, at 8aQuestions@ graduated from or otherwise left the 8(a) in the transitional stage as set forth in sba.gov, or SBA’s 8(a) BD information BD program prior to March 13, 2020, or § 124.404(c). Second, it would be line at (415) 744–0328. to business concerns that were admitted administratively burdensome and SUPPLEMENTARY INFORMATION: to the 8(a) BD program after September illogical to place a Participant that has I. Background Information 9, 2020. In addition, this rule clarifies already entered the transitional stage (or that the extension will not apply to completed its program term) back in the On 27, 2020, President business concerns that were Participants development stage during its period of Trump signed into law the in the 8(a) BD program at any point extension. Appropriations Act, Public Law 116– between March 13, 2020, and September As part of this revision, SBA is also 260, Div. N, title III, sec. 330 (Dec. 27, 9, 2020, but were terminated, early making conforming amendments to 2020), to, among other things, make graduated or voluntarily withdrew from § 124.404 to clarify the respective terms appropriations for the 2021 fiscal year the program in lieu of being terminated of the developmental and transitional and to provide coronavirus emergency or early graduated. SBA has already stages of program participation. response and relief. Section 330 of the determined that such business concerns Lastly, SBA is revising § 124.509 of its Appropriations Act mandates that SBA are no longer eligible to participate in regulations to clarify how an extension must ensure that any small business the 8(a) BD program. of participation under the Act will concern participating in the 8(a) BD In addition, both the Appropriations impact an 8(a) Participant’s requirement program on or before September 9, 2020 Act and the NDAA 2021 provide that to attain the targeted dollar levels of has the option to extend such SBA shall issue regulations non-8(a) revenue in its extended participation for a period of one year implementing the provision not later program term. Currently, under SBA’s from the end of its program term, than 15 days after the date of enactment, regulations, a Participant in the regardless of whether the concern and that the regulations shall be issued transitional stage of the 8(a) BD program previously elected to voluntarily without regard to the notice (i.e., years five through nine) must suspend its program participation in requirements under section 553(b) of generally achieve certain targets of connection with the President’s title 5, Code. As such, this revenue derived from sources other than nationwide coronavirus emergency rule is being implemented as an interim sole source or competitive 8(a) disaster declaration on March 13, 2020. final rule with an immediate effective contracts. The purpose of these targets (Presidential Disaster Declaration on date. is to ensure that Participants do not Declaring a National Emergency In order to implement the statutory develop an unreasonable reliance on Concerning the Novel Coronavirus language of section 330 of the 8(a) awards, and to ease their transition Disease (COVID–19) Outbreak (March Appropriations Act and section 869 of into the competitive marketplace after

VerDate Sep<11>2014 16:05 Jan 12, 2021 Jkt 253001 PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 E:\FR\FM\13JAR1.SGM 13JAR1 Federal Register / Vol. 86, No. 8 / Wednesday, January 13, 2021 / Rules and Regulations 2531

leaving the 8(a) BD program. As such, business activity target requirements requirements under section 553(b) of the targets increase incrementally any such Participant that elects to title 5, United States Code.’’ Similarly, during the transitional stage of the extend its participation in the program section 869(b) of the NDAA 21 provides: program. Where a Participant fails to under the Act will not repeat a year in ‘‘(b) Emergency Rulemaking meet its applicable competitive business the transitional stage or revert back to a Authority.—Not later than 15 days after activity target for the just completed prior year in the transitional stage as a the date of enactment of this section, the program year and SBA determines that result of the program extension. Administrator shall issue regulations to the Participant did not make good faith II. Comments and Immediate Effective carry out this section without regard to efforts to obtain the requisite non-8(a) Date the notice requirements under section revenue, that Participant will be 553(b) of title 5, United States Code.’’ ineligible for sole source 8(a) contracts This interim final rule is effective Although this interim final rule is in the current program year unless a without advance notice and public effective immediately, comments are waiver is granted by SBA. comment because section 330(b) of the solicited from interested members of the Appropriations Act and section 869(b) Currently, a Participant in the ninth public on all aspects of the interim final of the NDAA 2021 authorize SBA to year of its program term must derive at rule. These comments must be received issue implementing regulations without least 50 percent of its revenues from on or before the close of the comment regard to notice requirements under 5 sources other than sole source or period noted in the DATES section of this U.S.C. 553(b). However, SBA is interim final rule. SBA will then competitive 8(a) contracts. As noted providing a 60-day comment period for above, the statutory language contained consider these comments in making any the public to comment on this Interim necessary revisions to these regulations. in section 330 of the Appropriations Act Final Rule. SBA’s justification for the and section 869 of the NDAA 2021 was use of an interim final rule and IV. Justification for Immediate Effective added because Congress believed that immediate effective date follow. Date firms participating in the 8(a) BD program may not have been able to III. Justification for Interim Final Rule The APA requires that ‘‘publication or service of a substantive rule shall be experience the full benefits of the In general, SBA publishes a rule for made not less than 30 days before its program due to complications caused by public comment before issuing a final effective date, except as—otherwise the pandemic. Thus, it is our view that rule, in accordance with the provided by the agency for good cause firms that were in program year nine as Administrative Procedure Act, 5 U.S.C. found and published with the rule.’’ 5 of March 13, 2020 should not be subject 553. The Administrative Procedure Act U.S.C. 553(d)(3). The purpose of this to a higher business activity target for provides an exception to this standard provision is to provide interested and the time added on to the end of their rulemaking process, however, where an affected member of the public sufficient program terms by section 330 and agency finds good cause to adopt a rule time to adjust their behavior before the section 869. As such, the same 50 without prior public participation. 5 rule takes effect. percent business activity target that U.S.C. 553(b)(3)(B). The good cause In light of the urgent need to assist applies to program year nine will also requirement is satisfied when prior 8(a) small business concerns during the apply to the extended program term. In public participation is impracticable, pandemic, SBA finds that there is good order to receive sole source 8(a) unnecessary, or contrary to the public cause for making this rule effective contracts during the extended program interest. Under such circumstances, an immediately instead of observing the term a Participant must meet (or have agency may publish an interim final 30-day period between publication and met) the applicable 50 percent non-8(a) rule without soliciting public comment. business activity target or have made SBA has determined that there is good effective date. While this interim final good faith efforts to obtain the requisite cause for dispensing with advance rule is effective immediately upon non-8(a) revenue in the ninth program public notice and comment on the publication, SBA is inviting public year (or fifth year of the transitional grounds that that it would be contrary comment on the rule during a 60-day stage). Because the period of extension to the public interest. Specifically, period and will consider the comments for firms that were participating as of advance public notice and comment in developing a final rule. SBA has March 13, 2020 but have since would delay the delivery of critical included an applicability date to make graduated or otherwise left the program business development assistance clear that the rule is applicable for may be less than a full year, SBA Congress sought to extend to firms that eligible 8(a) companies to either retain understands that it may be more are presently not eligible for the or regain their 8(a) status as quickly as difficult to meet the 50 percent non-8(a) program’s assistance because they have possible. business activity target for the extended already graduated or otherwise left the V. Compliance With Executive Orders program term. However, SBA 8(a) BD program. As explained above, 12866, 13771, 12988, 13132, and 13175, encourages Participants to make good such firms will need to notify SBA that the Paperwork Reduction Act (44 faith efforts to obtain at least 50 percent they would like to be readmitted to the U.S.C., Ch. 35), and the Regulatory of their revenue from non-8(a) sources program as soon as possible in order to Flexibility Act (5 U.S.C. 601–612) during the extension period in order to take full advantage of the extension ease the transition to the competitive period. Executive Order 12866 marketplace after graduating from the In addition, both the Appropriations The Office of Information and 8(a) BD program. As a point of Act and the NDAA provisions cited Regulatory Affairs has determined that clarification, SBA notes that this interim provide specific authority for SBA to this interim final rule is not significant final rule does not revise the schedule proceed with this rule. Section 330(b) of for the purposes of Executive Order of the transitional stage or the the Appropriation Act provides: ‘‘(b). 12866 and is not considered a major corresponding business activity target Emergency Rulemaking Authority—Not rule under the Congressional Review requirements for current 8(a) later than 15 days after the date of Act. Participants in years one through five of enactment of this Act, the Administrator This interim final rule is necessary to the transitional stage of the program. In shall issue regulations to carry out this implement section 330 of the other words, for purposes of the section without regard to the notice Appropriations act and section 869 of

VerDate Sep<11>2014 16:05 Jan 12, 2021 Jkt 253001 PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 E:\FR\FM\13JAR1.SGM 13JAR1 2532 Federal Register / Vol. 86, No. 8 / Wednesday, January 13, 2021 / Rules and Regulations

the NDAA 2021 in order to provide marginal costs associated with an be subject to the notification relief to 8(a) firms adversely impacted additional year at the end of a firm’s requirement. by the March 13, 2020, emergency term in the 8(a) program, but anticipates Regulatory Flexibility Act declaration. SBA anticipates that this that it would not exceed SBA’s annual rule will substantially benefit such 8(a) costs for an 8(a) Participant. The Regulatory Flexibility Act (RFA), firms, their employees, and the 5 U.S.C. 601, requires administrative communities they serve. The rule will Executive Order 13771 agencies to consider the effect of their allow 8(a) firms to continue to be This rule is not an E.O. 13771 actions on small entities, small eligible to be awarded both competitive regulatory action because this rule is not nonprofit enterprises, and small local and sole source 8(a) contracts for an significant under E.O. 12866. governments. Pursuant to the RFA, extended period in the program. In FY when an agency issues a rulemaking, 2019, 8(a) firms were awarded 5.15% of Executive Order 12988 the agency must prepare a regulatory federal contract dollars amounting to This action meets applicable flexibility analysis which describes the $30.39 billion with $8.62 billion standards set forth in sections 3(a) and impact of the rule on small entities. awarded through set asides, $9.90 3(b)(2) of Executive Order 12988, Civil However, rules that are exempt from billion awarded as sole-source, and Justice Reform, to minimize litigation, notice and comment are exempt from $11.87 billion awarded though open eliminate ambiguity, and reduce the RFA requirements when the agency competition or with another preference burden. The action does not have for good cause finds that notice and (e.g., HUBZone) applied.1 In the past retroactive or preemptive effect. public procedure are impracticable, five years (FY 2016–FY 2020) the unnecessary, or contrary to the public average total contract awards per 8(a) Executive Order 13132 interest. Small Business Administration’s Office of Advocacy firm ranged from $3.15 million in FY This rule does not have federalism guide: How to Comply with the 2018 to $4.45 million in FY 2016. implications as defined in Executive Regulatory Flexibility Ac. Ch.1. p.9. An addition of one year to the term Order 13132. It will not have substantial Accordingly, SBA is not required to of 8(a) firms will increase the pool of direct effects on the States, on the conduct a regulatory flexibility analysis. firms participating in the program by up relationship between the National to 400 to 600 8(a) firms each year for the Government and the States, or on the List of Subjects in 13 CFR Part 124 next ten years, which reflects the distribution of power and amount of firms that have graduated Administrative practice and responsibilities among the various from the 8(a) program annually in the procedure, Government procurement, levels of government, as specified in the past five years, on average. Government property, Small businesses. Executive Order. As such it does not Approximately 4,150 8(a) firms would Accordingly, for the reasons stated in warrant the preparation of a Federalism be eligible to receive benefits for an the preamble, SBA is amending 13 CFR Assessment. additional year in the 8(a) program part 124 as follows: during the course of the next ten years Executive Order 13175 based on the number of firms within the PART 124—8(a) BUSINESS current 8(a) portfolio and including This rule does not have tribal DEVELOPMENT/SMALL those firms that graduated since March implications under Executive Order DISADVANTAGED BUSINESS STATUS 13, 2020. While more firms will be 13175, Consultation and Coordination DETERMINATIONS eligible to participate in the 8(a) with Indian Tribal Governments, because it would not have a substantial ■ 1. The authority citation for part 124 program each year, the impact on 8(a) is revised to read as follows: contract dollars awarded is anticipated direct effect on one or more Indian to be non-substantive. tribes, on the relationship between the Authority: 15 U.S.C. 634(b)(6), 636(j), SBA will also need to account for Federal Government and Indian tribes, 637(a), 637(d), 644 and Pub. L. 99–661, Pub. or on the distribution of power and L. 100–656, sec. 1207, Pub. L. 101–37, Pub. costs associated with the management of L. 101–574, section 8021, Pub. L. 108–87, an additional year of eligibility for 8(a) responsibilities between the Federal Government and Indian tribes. Pub. L. 116–260, sec. 330, and 42 U.S.C. firms, which includes business 9815. development assistance and compliance Paperwork Reduction Act ■ 2. Revise § 124.2 to read as follows: oversight. In FY 2019, with nearly 5,200 8(a) firms in the program, SBA The SBA has determined that this rule § 124.2 What length of time may a expended approximately $12,150 per does not affect any existing collection of business participate in the 8(a) BD 8(a) Program Participant based on a total information. The rule does require a program? program cost of $63.17 million; this concern seeking to be readmitted to the (a) Except as set forth in paragraph (b) figure includes overhead costs 2. An 8(a) BD program to notify SBA of its of this section, a Participant receives a additional year of eligibility would intent to be readmitted and make a program term of nine years from the likely increase total program costs certification that it continues to meet date of SBA’s approval letter certifying stemming from program services. the applicable 8(a) BD program the concern’s admission to the program. However, some of these costs (e.g., eligibility requirements as set forth in The Participant must maintain its overhead) would be redistributed across §§ 124.101 through 124.111 of title 13 of program eligibility during its tenure in the 8(a) program and other SBA the Code of Federal Regulations. SBA is the program and must inform SBA of programs or reduced due to economies not seeking to collect information any changes that would adversely affect of scale. SBA is unable to estimate the through any required form, but rather is its program eligibility. The nine-year anticipating a simple email from the program term may be shortened only by 1 Congressional Research Service, SBA’s ‘‘8(a) business concern to SBA notifying SBA termination, early graduation (including Program’’: Overview, History, and Current Issues, of its intent to be readmitted to the 8(a) voluntary early graduation) or voluntary Page 36–37, https://crsreports.congress.gov/ BD program. There are 346 business withdrawal as provided for in this product/pdf/R/R44844. 2 SBA’s FY 2021 Congressional Justification and concerns whose program terms have subpart. Annual Performance Report, Table 10, Page 16, expired since March 13, 2020. Those are (b) Pursuant to section 330 of the https://www.sba.gov/cj. the only business concerns who would Consolidated Appropriations Act, 2021,

VerDate Sep<11>2014 16:05 Jan 12, 2021 Jkt 253001 PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 E:\FR\FM\13JAR1.SGM 13JAR1 Federal Register / Vol. 86, No. 8 / Wednesday, January 13, 2021 / Rules and Regulations 2533

and section 869 of the National Defense (iii) Business concerns that were (ii) Any Participant that extended its Authorization Act for Fiscal Year 2021, Participants in the 8(a) BD program on program term pursuant to § 124.2(b) of a small business concern participating March 13, 2020, but were terminated or this chapter must meet the business the 8(a) BD program on March 13, 2020, early graduated by SBA or elected to activity target for year 5 or meet the may elect to extend such participation voluntarily withdraw or early graduate applicable requirements of paragraph by a period of one year from the end of in lieu of termination are not eligible to (d) or (e) of this section in order to its program term, regardless of whether extend their program terms. preserve its eligibility for sole source it previously elected to suspend (iv) The readmittance of a business 8(a) contracts during the extended participation in the program under the concern owned and controlled by a program period. The applicable procedures set forth in tribe, ANC, NHO, or CDC to the 8(a) BD business activity target for the extended § 124.305(h)(1)(iii). program under this paragraph (b)(2) will program period will be the same as that (1) Unless expressly declined in be disregarded for purposes of the for year 5 of the transitional stage (i.e., writing, SBA will extend a Participant’s ownership restrictions applicable to 50% non-8(a) revenue). program term by one year if the concern Participants owned by a tribe, ANC, was a Participant in the 8(a) BD program NHO, or CDC as set forth in * * * * * on March 13, 2020, and continued its §§ 124.109(c)(3)(ii), 124.110(e), and (d) * * * participation through January 13, 2021. 124.111(d). The date to commence the (4) * * * Declines of such extension must be two-year waiting period for the tribe, submitted to: Deputy Associate ANC, NHO, or CDC to own another Example 3 to paragraph (d)(4): Firm Administrator, Office of Business business concern in the 8(a) BD program C elected to extend its participation in Development, Small Business with the same primary NAICS code as the 8(a) BD program as set forth in Administration, 409 Third Street SW, the readmitted concern will not be § 124.2 of this chapter. Firm C had $10 Washington, DC 20416, or email to readjusted with the firm’s readmittance. million in total revenue during year 5 in the transitional stage (year 9 in the [email protected]. ■ 3. Amend § 124.404 by revising the (2) Except as set forth in paragraph second sentence of paragraph (a) to read program), of which $8.5 million were (b)(2)(iii) of this section any concern as follows: 8(a) revenues and $1.5 million were that was a Participant in the 8(a) BD non-8(a) revenues, and SBA determined program on March 13, 2020, but § 124.404 What business development that Firm C did not make good faith graduated or otherwise left the program assistance is available to Participants efforts to meet its non-8(a) business before January 13, 2021 may elect to be during the two stages of participation in the activity target. In order to be eligible for 8(a) BD program? readmitted to the 8(a) BD program for sole source 8(a) contracts during year 6 the period of time equal to one year (a) * * * The developmental stage of the transitional stage (year 10 in the from the date of the original expiration will last four years, and the transitional program), Firm C must demonstrate at of the concern’s program term. A stage will last five years, unless the its first or second quarterly review that concern seeking to be readmitted to the concern has exited the program by one it had received at least $3.5 million in 8(a) BD program must notify SBA of its of the means set forth in § 124.301 prior non-8(a) revenue and new non-8(a) to the expiration of its program term or intent to be readmitted no later than awards (the amount by which it failed has elected to extend its participation March 15, 2021. to meet the 50% non-8(a) business pursuant to § 124.2(b). Example 1 to paragraph (b)(2) activity target for year 5 in the introductory text. Business Concern A * * * * * transitional stage). If, at its first two was a Participant in the 8(a) BD program ■ 4. Amend § 124.509 by revising quarterly reviews during year 6 of the on September 9, 2020, and its program paragraph (b)(2) and adding an example transitional stage (year 10 in the term expired on 25, 2020. On to paragraph (d)(4) to read as follows: , 2021, Business Concern A program), Firm C could not demonstrate notified SBA of its election to be § 124.509 What are non-8(a) business that it had received at least $3.5 million readmitted to the 8(a) BD program under activity targets? in non-8(a) revenue and new non-8(a) the process outlined in this paragraph * * * * * awards, Firm C would not be eligible for (b)(2). Business Concern A would be (b) * * * sole source 8(a) contracts for the remainder of its program term. eligible to participate in the 8(a) BD (2) Non-8(a) business activity program until , 2021. targets.—(i) During their transitional * * * * * (i) All requests for readmittance must stage of program participation, Jovita Carranza, be submitted to: Associate Participants must meet the following Administrator, Office of Business non-8(a) business activity targets each Administrator. Development, Small Business year: [FR Doc. 2021–00602 Filed 1–12–21; 8:45 am] Administration, 409 Third Street SW, BILLING CODE 8026–03–P Washington, DC 20416, or email to TABLE 1 TO PARAGRAPH (b)(2)(i) [email protected]. (ii) As part of a concern’s notification Non-8(a) business to SBA of its intent to be readmitted to activity targets the 8(a) BD program, the concern must Participant’s year in (required minimum the transitional stage non-8(a) revenue certify that it continues to meet the as a percentage of applicable 8(a) BD program eligibility total revenue) requirements as set forth in §§ 124.101 through 124.111. SBA may, in its 1 ...... 15 discretion, request information or 2 ...... 25 documentation to assess whether the 3 ...... 30 4 ...... 40 concern meets the eligibility criteria for 5 ...... 50 readmittance.

VerDate Sep<11>2014 16:05 Jan 12, 2021 Jkt 253001 PO 00000 Frm 00007 Fmt 4700 Sfmt 9990 E:\FR\FM\13JAR1.SGM 13JAR1