By Government Contracts Editorial Staff
The Small Business Administration is amending its regulations to adjust certain civil monetary penalties for inflation. The formula for calculating the annual adjustments is based on the Consumer Price Index for all Urban Consumers for the month of October preceding the adjustment and the prior year’s October CPI-U. Based on this methodology, the 2019 civil monetary penalty adjustment formula is October 2018 CPI-U (252.885)/October 2017 CPI-U (246.663), for a multiplier of 1.02522. The amended regulations and revised amounts are as follows:
- SBA 107.665: $266 for small business investment company report violations
- SBA 120.465: $6,623 for late submission of business loans reports
- SBA 142.1: $11,463 for program fraud
- SBA 146.400: not less than $20,134 and not more than $201,340 for lobbying violations
These adjustments comply with the requirement in the Federal Civil Penalties Inflation Adjustment Act of 1990 (PL 101-410), as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (PL 114-74), to make annual adjustments to the penalties. The rule also makes a technical amendment at SBA 120.1500 to ensure that a reference to the penalty amount imposed on SBA supervised lenders for failure to file reports is consistent with current and future adjustments. For the text of the rule, which went into effect on April 1, 2019, see ¶70,425.632.
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