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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: May 29, 2001

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

SOURCE: Federal Register, May 29, 2001, Vol. 66, No. 103, page 29010

AGENCIES: Small Business Administration (SBA)

ACTION: Final Rule

SYNOPSIS: SBA is adding 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: For more on the proposed rule, see the October 10, 2000, FEDERAL CONTRACTS DISPATCH "Small Business Administration; Program for Investment in Microentrepreneurs Act."

EFFECTIVE DATE: June 28, 2001.

FOR FURTHER INFORMATION CONTACT: Jody Raskind, Chief, Microenterprise Development Branch, 202-205-6497.

SUPPLEMENTAL INFORMATION: With the enactment of the PRIME Act, Congress recognized that many disadvantaged microentrepreneurs (low and very-low income businesses with fewer than five employees, including the owner) 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 published on October 10, 2000, a proposed rule to amend Title 13 of the Code of Federal Regulations (CFR) by adding Part 119, Program for Investment in Microentrepreneurs ("PRIME" or "the Act"). SBA received 13 comments, and SBA has made several changes to the final version of the rule.

The following are the main provisions of Part 119 (major changes are explained in "EDITOR'S NOTES"):

The rest of Part 119 addresses 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 functions, restrictions against lobbying, fundraising costs, and conflict of interests.

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2001 by Panoptic Enterprises. All Rights Reserved.

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Copyright 2001 by Panoptic Enterprises. All Rights Reserved.