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Rule2023-27504

Rural Business Development Grant (RBDG) Regulation: Tribes and Tribal Business References To Provide Equitable Access

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Published
December 14, 2023
Effective
January 16, 2024

Issuing agencies

Agriculture DepartmentRural Business-Cooperative ServiceRural Utilities Service

Abstract

The Rural Business Development Grant (RBDG) program is intended for governmental entities and non-profits that foster economic development, job creation and business creation in rural and Tribal communities. Eligible applicants for RBDG assistance include rural towns, communities, State agencies, authorities, nonprofit corporations, institutions of higher education, Federally recognized Tribes (https://www.bia.gov/service/tribal-leaders-directory) and cooperatives (if organized as a private nonprofit corporation). United States Department of Agriculture (USDA) intends to improve Tribal Government participation in the program. This final rule seeks to increase Tribal Government participation with programmatic amendments. This final rule responds to all comments received on the proposed rule.

Full Text

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<title>Federal Register, Volume 88 Issue 239 (Thursday, December 14, 2023)</title>
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[Federal Register Volume 88, Number 239 (Thursday, December 14, 2023)]
[Rules and Regulations]
[Pages 86566-86571]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-27504]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

Rural Utilities Service

7 CFR Chapter XLII

[Docket: RBS-23-BUSINESS-0006]
RIN 0570-AB10


Rural Business Development Grant (RBDG) Regulation: Tribes and 
Tribal Business References To Provide Equitable Access

AGENCY: Rural Business-Cooperative Service and Rural Utilities Service, 
USDA.

ACTION: Final rule and response to comment.

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SUMMARY: The Rural Business Development Grant (RBDG) program is 
intended for governmental entities and non-profits that foster economic 
development, job creation and business creation in rural and Tribal 
communities. Eligible applicants for RBDG assistance include rural 
towns, communities, State agencies, authorities, nonprofit 
corporations, institutions of higher education, Federally recognized 
Tribes (<a href="https://www.bia.gov/service/tribal-leaders-directory">https://www.bia.gov/service/tribal-leaders-directory</a>) and 
cooperatives (if organized as a private nonprofit corporation). United 
States Department of Agriculture (USDA) intends to improve Tribal 
Government participation in the program. This final rule seeks to 
increase Tribal Government participation with programmatic amendments. 
This final rule responds to all comments received on the proposed rule.

DATES: The final rule is effective January 16, 2024.

ADDRESSES: Additional information about RBDG is available at https://
www.rd.usda.gov/programs-services/

[[Page 86567]]

business-programs/rural-business-development-grants.

FOR FURTHER INFORMATION CONTACT: For questions on this document contact 
Will Dodson, Branch Chief, Intermediary Programs, Program Management 
Division, Rural Business-Cooperative Service, 1400 Independence Ave. 
SW, Stop 3201, Washington, DC 20250; telephone, 202-690-4730; email, 
<a href="/cdn-cgi/l/email-protection#5d2a343131733932392e32331d282e393c733a322b"><span class="__cf_email__" data-cfemail="394e505555175d565d4a5657794c4a5d58175e564f">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION: 

I. Background

    On March 25, 2015, Rural Business-Cooperative Service (RBCS or the 
Agency), a Rural Development (RD) agency of the USDA, published an 
interim final rule with comment, 80 FR 15665, for the RBDG program. The 
interim final rule with comment ensured the Agency had a regulation in 
place to meet the Congressional mandate established in the Agricultural 
Act of 2014 (2014 Farm Bill). The RBDG program is targeted at public 
governmental entities, including Tribal Governments, and non-profit 
entities, which in turn empower business and market development. 
However, following implementation of the interim final rule, the Agency 
received regular feedback through Tribal consultation that the interim 
final rule did not adequately define and address how Tribes legally 
structure their businesses and related enterprises as arms or 
instrumentalities of Tribes. The RBDG program did not previously 
identify Tribally-owned businesses separate from Tribal Governments. 
This nuance effectively prevented full access to participation for 
Tribes and Tribally-owned businesses.
    Tribal Governments do not maintain a tax base; therefore, Tribes 
often establish corporate or other business entities as government arms 
or instrumentalities to provide for a public (Tribal) good or to 
generate revenue for the provision of public (Tribal) goods by the 
Tribal Government. These Tribal Government entities often significantly 
contribute to their local economy through employment of Tribal and non-
Tribal members (non-Tribal United States citizens), job training and 
advancement opportunities, and by filling gaps in commerce across 
Tribal lands that are often food, economic, and credit deserts. The 
Federal Government maintains a treaty and trust responsibility to 
provide for economic self-sufficiency among Indian Tribes.
    Consistent input from Tribal Governments and Tribal stakeholders 
indicated that the RBDG program has experienced reduced participation 
of Tribal Governments and Tribal entities, since inception of the 
program. This reduction in participation is due to policies that have 
not fully considered or included the range of strategies that Tribal 
nations employ to build Tribal markets and economies through government 
arms and instrumentalities. Historically, Tribes have not fully 
utilized the RBDG program due to Agency policy, which does not 
adequately consider the range of entities that Tribal nations 
incorporate, that are Tribal Government owned and operated to foster 
economic development and promote meaningful employment, while also 
generating revenue for the Tribal Government. The complex legal and 
political structure and nature of Tribal nations and these Tribal 
entities necessitates a close relationship between both entities with 
ownership and control remaining with the Tribal Governments. The 
amendments update and codify the Agency's policy regarding Tribal 
nations and their Tribal-owned entities.

II. Discussion of Public Comments

    The Agency published a proposed rule on May 24, 2023 (88 FR 33552) 
to solicit comments on plans to reduce barriers to access for Tribes in 
the RBDG program by amending Tribal applicant definitions, Tribal 
applicant references, conflict of interest language, and appearance of 
conflict of interest and affiliation language as it relates to Tribes 
in the RBDG regulation 7 CFR part 4280, subpart E. A 60-day comment 
period was provided for the proposed rule, which closed on July 24, 
2023, and no comments were received through the regulatory public 
comment period.
    The Agency conducted a virtual Tribal Consultation and listening 
session on July 12, 2023, for Tribal leaders and tribal organizations. 
An additional 30-day comment period was provided to Tribal leaders so 
they could submit Tribal consultation written comments via email. The 
Tribal consultation written comment period closed on August 14, 2023. 
RBCS received comments from three respondents (two were from elected 
Tribal leaders and the third was from a regional Tribal non-profit). 
Most comments were supportive of the rule. However, a few concerns were 
raised regarding how the Agency would process these changes in a 
consistent manner.
    (a) Virtual Tribal Consultation and Listening Session Comments. The 
Agency's virtual Tribal consultation and listening session included a 
Tribal Caucus portion.
    (1) Tribal Caucus Session. This session provided Tribal leaders the 
opportunity to discuss relevant consultation issues and was facilitated 
by a representative from a recognized Tribal organization, without 
Federal policymakers online.
    (2) Tribal Consultation and Listening Session and associated 
briefing materials (framing paper and Dear Tribal Leader Letter). This 
session provided Tribal leaders an opportunity to review the Agency's 
summary of proposed changes to the RBDG regulation. Specifically, this 
included the clarification and expansion of eligibility for federally 
recognized Tribes to support wholly owned Tribal-government entities as 
program beneficiaries. Additional topics included the proposed 
expansion of the ``Small and Emerging Business'' definition to include 
Tribal governments and Tribally owned entities, as well as 
clarification of the definition of ``Conflict of Interest'' to explain 
how the Agency defines the relationship between Tribal Nations and 
their Tribal-owned entities. These topics were covered by the Agency.
    For the listening session the Agency provided four (4) standard 
questions to the attendees to obtain feedback. The four standard 
questions are listed below with a summary of the feedback received for 
each question.
    (i) Do Tribal leaders agree these changes will help increase tribal 
eligibility within the RBDG program? The feedback received during the 
consultation indicated unanimous support for the proposed changes.
    (ii) Is there anything we should strike or edit in the updated 
regulatory language? There was no indication of striking or editing any 
proposed language by participants.
    (iii) Is there anything we overlooked that we should include in the 
updated regulatory language? There was no indication of any omissions 
in the proposed language by participants.
    (iv) Does your Tribe have any unique organizational structures for 
your enterprises that we should consider as we finalize these changes? 
There were no suggestions made for this question in the listening 
session.
    (b) Tribal Comment #1. Tribal leader for Central Council of Tlingit 
and Haida Indian Tribes of Alaska (Tlingit & Haida) provided 
recommendations as follows:
    (i) The definition for Tribal governments cited to the Tribal List 
Act of 1994 (Pub. L. 103-454, 108 Stat. 4791) should include as an 
eligible entity Tribal organization as defined by 25 U.S.C. 5304(l).

[[Page 86568]]

    (ii) The RBDG program should not require tribal resolutions from 
each tribal member of the tribal organization to participate in the 
RBDG program.
    Agency Response. The Agency agrees with the first comment and 
asserts that the rulemaking recognizes both Tribal government arms and 
instrumentalities and democratically elected Tribal organizations when 
registered as non-profits as eligible direct RBDG applicants and 
program beneficiaries. As such, Tribal organizations as defined by 25 
U.S.C. 5304(l) are already included as eligible entities and the Agency 
will work with staff administering the program to ensure that this 
clarification is made through future training and staff instruction.
    The Agency also agrees with the second part of the comment. The 
Agency requires a resolution of the board or governing body of any RBDG 
program applicant to ensure that the organization has approved the 
application. However, due to the unique nature of the Tribal 
organizations under 25 U.S.C. 5304(l) the member Tribes have already 
empowered these organizations to apply on their behalf, and therefore 
requiring separate resolutions of support from the member Tribes is not 
needed. Tribal organizations under 25 U.S.C. 5304(l) may need to 
provide documentation that they are empowered to apply on behalf of 
their member Tribes through existing organizational documents, etc.
    (c) Tribal Comment #2. Tribal leader for the Oglala Sioux Tribe 
submitted responses to the four standard questions that were provided 
during the listening sessions. The responses were in support of the 
proposed regulatory language revisions, and the Tribal leader did not 
have any suggested edits.
    Agency Response. The Agency appreciates the time and participation 
of the Oglala Sioux Tribe in the listening session and the 
communication sent on August 14, 2023.
    (d) Tribal Comment #3. Tribal leader for United South and Eastern 
Tribes Sovereignty Protection Fund (USET SPF) provided the following 
comments:
    (i) Expressed concern regarding expansion of the Small and Emerging 
Business definition. USET SPF would like the language associated with 
this definition to ensure that Tribal governments are not referred to, 
or categorized as business entities, but rather they are distinct 
sovereigns with a legally established, recognized, and upheld nation-
to-nation, government-to-government relationship with the U.S. Federal 
government.
    (ii) Recommended that the Agency provide additional training and 
develop clear guidance to USDA State Office Staff to better understand 
Tribal sovereignty, U.S. Tribal Nation relations, and the unique 
distinctions between Tribal governments and Tribally owned and operated 
entities and businesses.
    Agency Response. The Agency appreciates the comments. In reference 
to the first comment, the Agency feels the RBDG regulation provides an 
adequate distinction between Tribal governments and Tribal business 
entities. One of the goals of the RBDG program is to assist small and 
emerging businesses and the nature of the proposed revisions are 
limited to that context. The Agency recognizes that Tribal governments 
are distinct sovereigns with a legally established, recognized, and 
upheld nation-to-nation, government-to-government relationship with the 
U.S. Federal Government. The effort of the proposed language is to 
simply reflect and codify the Agency's understanding, within the 
context of RBDG eligibility, of the relationship between Tribal 
governments and their Tribally owned entities. In reference to the 
second comment, the Agency agrees and intends to provide training to 
USDA State Office staff to better understand the regulatory changes, 
Tribal sovereignty, and the unique relationship that the federal 
government has with federally recognized Tribes. Training that is 
developed will include input and participation from RBDG program staff, 
RD's Tribal Relations Team and USDA's Office of Tribal Relations.

III. Summary of Changes to the Rule

    The summary of changes provided below are the same as what was 
provided in the proposed rule published in the Federal Register (88 FR 
33552) on May 24, 2023. The final rule provides no new changes.

(a) Administrative Change

    The RBDG Program (7 CFR part 4280) is currently listed under 
chapter XLII, Rural Business-Cooperative Service and Rural Utilities 
Service, Department of Agriculture, along with Direct and Insured 
Loanmaking (7 CFR part 4274), Guaranteed Loanmaking (7 CFR part 4279), 
Grants (7 CFR part 4284), Cooperative Agreements (7 CFR part 4285), 
Servicing (7 CFR part 4287), Payment Programs (7 CFR part 4288), and 
Rural Business Investment Company (``RBIC'') Program (7 CFR part 4290). 
This final rule will update the ownership of chapter XLII to remove 
Rural Utilities Service as these programs are all under RBCS 
exclusively.

(b) Section 4280.403 Definitions

    The definitions section is being revised to add and revise 
definitions.
    Conflict of Interest. The Conflict of interest definition is added 
to codify the Agency's interpretation of the relationship of Tribal 
nations and their Tribal owned entities to expand eligibility 
opportunities for Tribal applicants.
    Indian Tribe (Tribal). The current operating definition for Indian 
Tribe (Tribal) is being revised to Indian Tribe (Tribal), Tribal 
Government, and/or Federally Recognized Tribes. Historically, the 
Program has utilized the list of Federally Recognized Tribes published 
by the Bureau of Indian Affairs to determine if a Tribe was eligible to 
directly apply for RBDG assistance. No change to the current policy is 
being implemented and the statutory cite for this policy will now be 
included within the regulation. Eligible applicants for RBDG assistance 
continue to be rural Towns, Communities, State agencies, Authorities, 
Nonprofit corporations, Institutions of higher education, Federally 
Recognized Tribes (<a href="https://www.bia.gov/service/tribal-leaders-directory">https://www.bia.gov/service/tribal-leaders-directory</a>), and cooperatives (if organized as a private nonprofit 
corporation).
    Small and Emerging Business. The Small and Emerging Business 
definition is being revised to add language to clarify the relationship 
of Tribal Governments and Tribal owned entities. Specifically, the 
management and Board of Directors of the Tribal government owned entity 
or business do not have to be independent of the Tribal Council. 
Language has also been added to clarify that the asset and employee 
size limitations to qualify as a small and emerging business are 
limited to the Tribal entity that is applying for assistance and is not 
intended to be inclusive of all Tribal assets or all Tribal employees. 
Consequently, it is anticipated that financial documentation required 
for Program participation will be limited to the immediate Tribal 
entity that is applying for the assistance and not required for the 
Tribe or its other Tribal entities, unless the Tribe itself is the 
applicant. These amendments were made in accordance with direct Tribal 
leader input conducted through Tribal consultation and will improve 
Tribal Government accessibility to both the regular RBDG Program and 
RBDG funds appropriated specifically to support projects that benefit 
federally recognized Tribes and their members.

[[Page 86569]]

(c) Section 4280.500 OMB Control Number

    On March 25, 2015, RBCS published an interim final rule with 
comment for the RBDG Program, 80 FR 15665, that assigned Office of 
Management and Budget (OMB) control numbers 0570-0022 and 0570-0024 in 
accordance with the Paperwork Reduction Act of 1995 (PRA). OMB control 
numbers 0570-0022 and 0570-0024 have been discontinued as of 2016. A 
new collection package in accordance with PRA was issued in 2016 and 
the new OMB control number is 0570-0070.

IV. Executive Orders/Acts

Executive Order 12866--Classification

    This final rule has been determined to be not significant for 
purposes of Executive Order 12866 and, therefore, has not been reviewed 
by the Office of Management and Budget.

Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this final 
rule as not a major rule, as defined by 5 U.S.C. 804(2).

Assistance Listing Number (Formally Known as the Catalog of Federal 
Domestic Assistance)

    The Assistance Listing Number assigned to the RBDG Program is 
10.351. The Assistance Listings are available on the internet at 
<a href="https://sam.gov/">https://sam.gov/</a>.

Executive Order 12372--Intergovernmental Consultation

    This program is subject to the provisions of Executive Order 12372, 
which require intergovernmental consultation with State and local 
officials. RBCS conducts intergovernmental consultations for each loan 
in accordance with 2 CFR part 415, subpart C. However, Tribes and 
Tribal entities as defined in this final rule are exempt of this 
requirement.

Paperwork Reduction Act

    This final rule contains no new reporting or recordkeeping burdens 
under OMB control number 0570-0070 that would require approval under 
the Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35).

National Environmental Policy Act

    In accordance with the National Environmental Policy Act of 1969, 
Public Law 91-190, this final rule has been reviewed in accordance with 
7 CFR part 1970 (``Environmental Policies and Procedures''). The Agency 
has determined that (i) this action meets the criteria established in 7 
CFR 1970.53(f); (ii) no extraordinary circumstances exist; and (iii) 
the action is not ``connected'' to other actions with potentially 
significant impacts, is not considered a ``cumulative action,'' and is 
not precluded by 40 CFR 1506.1. Therefore, the Agency has determined 
that the action does not have a significant effect on the human 
environment, and therefore neither an Environmental Assessment nor an 
Environmental Impact Statement is required.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) (RFA) 
generally requires an agency to prepare a regulatory flexibility 
analysis of any rule subject to notice and comment rulemaking 
requirements under the Administrative Procedure Act (``APA'') or any 
other statute. The APA exempts from notice and comment requirements 
rules ``relating to agency management or personnel or to public 
property, loans, grants, benefits, or contracts'' (5 U.S.C. 553(a)(2)), 
so therefore an analysis has not been prepared for this final rule.

Executive Order 12988--Civil Justice Reform

    This final rule has been reviewed under Executive Order 12988. In 
accordance with this final rule: (1) unless otherwise specifically 
provided, all State and local laws that conflict with this rule will be 
preempted; (2) no retroactive effect will be given to this rule except 
as specifically prescribed in the rule; and (3) administrative 
proceedings of the National Appeals Division of the Department of 
Agriculture (7 CFR part 11) must be exhausted before bringing suit in 
court that challenges action taken under this rule.

Unfunded Mandates Reform Act (UMRA)

    Title II of the UMRA, Public Law 104-4, establishes requirements 
for Federal Agencies to assess the effects of their regulatory actions 
on State, local, and Tribal Governments and on the private sector. 
Under section 202 of the UMRA, Federal Agencies generally must prepare 
a written statement, including cost-benefit analysis, for proposed and 
final rules with ``Federal mandates'' that may result in expenditures 
to State, local, or Tribal Governments, in the aggregate, or to the 
private sector, of $100 million or more in any one-year. When such a 
statement is needed for a rule, section 205 of the UMRA generally 
requires a Federal agency to identify and consider a reasonable number 
of regulatory alternatives and adopt the least costly, most cost-
effective, or least burdensome alternative that achieves the objectives 
of the rule.
    This final rule contains no Federal mandates (under the regulatory 
provisions of title II of the UMRA) for State, local, and Tribal 
Governments or for the private sector. Therefore, this final rule is 
not subject to the requirements of sections 202 and 205 of the UMRA.

Executive Order 13132--Federalism

    It has been determined, under E.O. 13132, Federalism, that the 
policies contained in this final rule do not have any substantial 
direct effect on States, on the relationship between the National 
Government and the States, or on the distribution of power and 
responsibilities among the various levels of government. Nor does this 
final rule impose substantial direct compliance costs on State and 
local Governments. Therefore, consultation with the States is not 
required.

Executive Order 13175--Consultation and Coordination With Indian Tribal 
Governments

    This final rule has been reviewed in accordance with the 
requirements of Executive Order 13175, ``Consultation and Coordination 
with Indian Tribal Governments.'' Executive Order 13175 requires 
Federal agencies to consult and coordinate with tribes on a Government-
to-Government basis on policies that have tribal implications, 
including regulations, legislative comments or proposed legislation, 
and other policy statements or actions that have substantial direct 
effects on one or more Indian tribes, on the relationship between the 
Federal Government and Indian tribes or on the distribution of power 
and responsibilities between the Federal Government and Indian tribes.
    RBCS has determined that the rule does have a substantial direct 
effect on one or more Indian tribe(s) or on either the relationship or 
the distribution of powers and responsibilities between the Federal 
Government and Indian Tribes but reflects a remedy to RBDG Tribal 
barriers identified in Tribal consultation, including recent Tribal 
consultations on equity hosted in March 2021 and April 2022. USDA also 
held an additional follow-up Tribal consultation for input during the 
60-day comment period. Additionally, if a Tribe requests Government-to-
Government consultation regarding this rule, the Agency will work with 
the USDA Office of Tribal Relations to ensure meaningful consultation 
is provided. Interested Tribal leaders are

[[Page 86570]]

encouraged to contact the Office of Tribal Relations or RD's Tribal 
Coordinator at <a href="/cdn-cgi/l/email-protection#400109010e00353324216e272f36"><span class="__cf_email__" data-cfemail="aaebe3ebe4eadfd9cecb84cdc5dc">[email&#160;protected]</span></a> to request such a consultation.

E-Government Act Compliance

    RD is committed to the E-Government Act of 2002, Public Law 107-
347, which requires Government agencies in general to provide the 
public the option of submitting information or transacting business 
electronically to the maximum extent possible and to promote the use of 
the internet and other information technologies to provide increased 
opportunities for citizen access to Government information and 
services, and for other purposes.

Civil Rights Impact Analysis

    RD has reviewed this final rule in accordance with USDA Regulation 
4300-4, ``Civil Rights Impact Analysis,'' to identify any major civil 
rights impacts the rule might have on program participants on the basis 
of age, race, color, national origin, sex, disability, marital or 
familial status. Based on the review and analysis of the final rule and 
all available data, issuance of this proposal is not likely to 
negatively impact low and moderate-income populations, minority 
populations, women, Indian tribes or persons with disability, by virtue 
of their age, race, color, national origin, sex, disability, or marital 
or familial status. No major civil rights impact is likely to result 
from this final rule.

USDA Non-Discrimination Statement

    In accordance with Federal civil rights laws and USDA civil rights 
regulations and policies, the USDA, its mission areas, agencies, staff 
offices, employees, and institutions participating in or administering 
USDA programs are prohibited from discriminating based on race, color, 
national origin, religion, sex, gender identity (including gender 
expression), sexual orientation, disability, age, marital status, 
family/parental status, income derived from a public assistance 
program, political beliefs, or reprisal or retaliation for prior civil 
rights activity, in any program or activity conducted or funded by USDA 
(not all bases apply to all programs). Remedies and complaint filing 
deadlines vary by program or incident.
    Program information may be made available in languages other than 
English. Persons with disabilities who require alternative means of 
communication to obtain program information (e.g., Braille, large 
print, audiotape, American Sign Language) should contact the 
responsible Mission Area, agency, or staff office; or the 711 Relay 
Service.
    To file a program discrimination complaint, a complainant should 
complete a Form AD-3027, USDA Program Discrimination Complaint Form, 
which can be obtained online at <a href="https://www.usda.gov/sites/default/files/documents/ad-3027.pdf">https://www.usda.gov/sites/default/files/documents/ad-3027.pdf</a> from any USDA office, by calling (866) 632-
9992, or by writing a letter addressed to USDA. The letter must contain 
the complainant's name, address, telephone number, and a written 
description of the alleged discriminatory action in sufficient detail 
to inform the Assistant Secretary for Civil Rights (ASCR) about the 
nature and date of an alleged civil rights violation. The completed AD-
3027 form or letter must be submitted to USDA by:
    (1) Mail: U.S. Department of Agriculture, Office of the Assistant 
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC 
20250-9410; or
    (2) Fax: (833) 256-1665 or (202) 690-7442; or
    (3) Email: <a href="/cdn-cgi/l/email-protection#a1d1d3cec6d3c0cc8fc8cfd5c0cac4e1d4d2c5c08fc6ced7"><span class="__cf_email__" data-cfemail="671715080015060a490e0913060c02271214030649000811">[email&#160;protected]</span></a>.
    USDA is an equal opportunity provider, employer, and lender.

List of Subjects in 7 CFR Part 4280

    Business and industry, Energy, Grant programs--business, Loan 
programs--business, and Rural areas.

    For the reasons discussed in the preamble, 7 CFR chapter XLII is 
amended as follows:

0
1. Under the authority of 5 U.S.C. 301 and 7 U.S.C. 1989, the heading 
for chapter XLII is revised to read as follows:

CHAPTER XLII RURAL BUSINESS-COOPERATIVE SERVICE, DEPARTMENT OF 
AGRICULTURE

PART 4280--LOANS AND GRANTS

0
2. The authority citation for part 4280 is revised to read as follows:

    Authority:  7 U.S.C. 1989(a), 7 U.S.C. 2008s.

Subpart E--Rural Business Development Grants

0
3. Amend Sec.  4280.403 by:
0
a. Adding the definition of ``Conflict of Interest'' in alphabetical 
order and revising the definitions of ``Indian Tribe (Tribal)'' and 
``Small and Emerging Business'' to read as follows:


Sec.  4280.403  Definitions.

* * * * *
    Conflict of Interest. When the grantee's employees, Board of 
Directors, or their immediate families have a legal or personal 
financial interest in the recipient(s) receiving the benefits or 
services of the grant. Tribal Governments, subdivisions of Tribal 
Governments (chapters, districts, authorities, townships, etc.), and 
Tribal arms and instrumentalities, entities wholly-owned and chartered 
by Tribal Governments including but not limited to: Tribal owned 
corporations (including Section 17 Corporations, Community Development 
Corporations and Economic Development Corporations), Tribal owned 
businesses, Tribal owned authorities, Tribal owned utilities, other 
Tribally owned enterprises and their subsidiaries will not be 
considered as having a conflict of interest due to their, or their 
Board's, ties to their associated Tribe or each other.
* * * * *
    Indian Tribe (Tribal), Tribal Government and/or Federally 
Recognized Tribes. Any Indian or Alaska Native tribe, band, nation, 
pueblo, village or community as defined by the Federally Recognized 
Indian Tribe List Act (List Act) of 1994 (Pub. L. 103-454).
* * * * *
    Small and Emerging Business. Any private and/or nonprofit business 
which will employ 50 or fewer new employees and has less than $1 
million in gross revenue; for retail operations, gross revenue may be 
reduced by cost of goods sold and returns or for a service 
organization, gross revenue may be reduced by the cost of providing 
service or for a manufacturing operation, gross revenue may be reduced 
by the cost of raw materials and the cost of production. The $1 million 
gross revenue and 50 or fewer new employee thresholds apply only to 
each individual Tribal owned enterprise applicant or recipient. Due to 
the unique structuring of Tribal economic development, the revenue or 
employees of the Tribe and/or parent Tribal enterprise will not apply 
towards the individual Tribal enterprise applicant or recipient, 
regardless of shared ownership or Directors. The revenue of Tribes, 
subdivisions of Tribes and Tribal entity applicants, will not be 
considered revenue in determining program and project eligibility.
* * * * *

0
4. Revise Sec.  4280.500 to read as follows:


Sec.  4280.500  OMB control number.

    The reporting and recordkeeping requirements contained in this part 
have been approved by the Office of Management and Budget (OMB) under

[[Page 86571]]

the provisions of 44 U.S.C. chapter 35 and have been assigned OMB 
control number 0570-0070 in accordance with the Paperwork Reduction Act 
of 1995. You are not required to respond to this collection of 
information unless it displays a valid OMB control number.

Karama Neal,
Administrator, Rural Business-Cooperative Service, USDA Rural 
Development.
Andrew Berke,
Administrator, Rural Utilities Service, USDA Rural Development.
[FR Doc. 2023-27504 Filed 12-13-23; 8:45 am]
BILLING CODE 3410-XY-P


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