(a) Applications to be routinely approved without field review. The
following types of applications will be routinely approved and certified
by the Manpower Administration (MA), provided that the required
information is submitted by the applicant:
(1) Loans which involve the change of ownership from one person or
group to another or the refinancing of an existing loan. Provided, That
such loans will not result in any transfer from one area to another of
any employment or business activity provided by operations of the
applicant and are not calculated to or likely to result in an increase
in the production of goods, materials, or commodities, or the
availability of services, or facilities, to employ the efficient
capacity of existing competitive commercial or industrial enterprise. In
transmitting such applications to MA, FmHA will include:
(i) A letter of transmittal stating the name and location of the
applicant and the amount of the loan, and certifying that the loan is
either for the purpose of financing the sale of the business or for the
purpose of refinancing a loan and is not calculated to or likely to
result in the transfer or expansion of employment or operations:
(ii) Three copies of Form FHA 449-22, Certification of Non-
Relocation; and
(iii) Three copies of Form FHA 449-23, Data Information Sheet. MA
will issue an affirmative certification on such applications, without
further review, within 10 working days.
(2) Loans of less than $100,000 where the loan proceeds are expected
to result in the employment of not more than five workers. In such
instances, the FmHA transmittal letter will call attention to the fact
that the application involved falls within this category. This should be
supported by data in the revised Forms FHA 449-22 and 449-23 to be
forwarded in triplicate to the DOL. For loan applications in this
category, the FmHA will also attach a certification signed by the State
FmHA director indicating
that he has reviewed the loan application and certifying that such a
loan is not calculated to or likely to result in the transfer from one
area to another of any employment or business activity provided by
operations of the applicant and is not calculated to or likely to result
in an increase in the production of goods, materials, or commodities, or
the availability of services or facilities, when there is not sufficient
demand for such goods, materials, commodities, services, or facilities
in the area, to employ the efficient capacity of existing competitive
commercial or industrial enterprises, unless such financial or other
assistance will not have an adverse effect upon existing competitive
enterprises in the area. Unless there is other evidence to indicate an
adverse effect on unemployment or competitive business enterprises, MA
will accept this certificate and accompanying forms as the basis for an
affirmative certification without further review and will so certify
within 10 working days after receipt.
(3) Grants where there are no known current or future occupants. In
the case of such applications, e.g., a county's proposal to build an
industrial park, FmHA will send a transmittal letter to MA stating the
name and location of the applicant, and the amount and purpose of the
grant, and certifying that there are no known current or future
occupations. FmHA will also forward with the letter a resolution or
other statement from the local governing body agreeing to a prior review
and certification by MA of any person or organization which may occupy
all or part of the facility within 3 years from the date of the
certification, to insure that the requirements of the Act are being
complied with. MA will, within 10 days after receipt of such
applications, issue an affirmative certification conditional upon the
right of review and certification of each potential occupant within the
3-year period.
(4) Grants where the occupants are known, and the improvement will
not result in a transfer or increase in operations or employment by the
occupants. The FmHA transmittal letter shall provide, in addition to the
information specified in paragraph (a)(3) of this section, the names of
the occupants and a statement that this grant is not calculated to or
likely to result in a transfer or increase in operations or employment.
The applicant shall also be required to submit the same type of
resolution as that specified in paragraph (a)(3) of this section. On the
receipt of such data, MA will issue a certification on the grant
application and will certify the known occupants as well. The
certification may require, however, that additional occupants or a
change in occupants within the first 3 years after certification is
subject to review and a redetermination.
(b) Applications which will require field or other review. (1) All
loan and grant applications other than those specified in paragraph (a)
of this section will be subject to a full review by the MA prior to the
issuance of a certification. For each loan application, the FmHA shall
submit to MA:
(i) A letter of transmittal stating the name and location of the
applicant and the amount of the loan;
(ii) Six copies of the Certificate of Non-Relocation (Form FHA 449-
22);
(iii) Six copies of the Data Information Sheet (Form FHA 449-23);
and
(iv) Any supplemental information, including A-95 Clearinghouse
reports, which FmHA believes may be of value to MA in evaluating the
application.
For grant applications, the letter of transmittal shall also provide
information about the purpose of the grant. Two copies of a resolution
or other statement of the type specified under paragraph (a)(3) of this
section shall also be submitted with each grant application.
(2) Upon receipt of applications, MA will review the materials for
completeness and will inform FmHA in writing of any missing items within
2 working days after the date of receipt. It is agreed that in such
instances the statutory 60-day period will not begin until the file is
complete. State Employment Security Agencies will be requested, through
the MA regional offices, to provide labor market information needed to
determine whether the loan would result in adverse competitive effect
upon existing competitive enterprises in the area. Comments will be due
in the MA national office 3 weeks
after receipt of the request in the MA regional offices.
(3) To assist in the review process, DOL will publish in the Federal
Register a weekly listing of applications received (other than those to
be routinely certified). The listing will include the name and location
(City and State) of the applicant and the principal product or type of
business activity. In the case of grant applications, the listing will
also include the name and principal product or business activity of the
occupant(s) of the facility for which the grant is being made. All
interested parties will be afforded a 2-week period from the date of
publication to comment in writing to MA. In the event that adverse
comments are received, the applicant will be sent copies of such
comments by certified mail, and afforded an opportunity to provide such
additional information as the applicant deems appropriate within 2 weeks
from the date of transmittal. The Farmers Home Administration will also
be provided with copies of such adverse comments.
(4) In some instances, involving particularly complex situations, MA
may request the Economic Development Administration (EDA) in the
Department of Commerce, or other agencies to provide supplemental data.
The number of such requests will depend upon the extent to which the DOL
is capable of making resources available to EDA or other agencies to
perform this function.
(5) When all the data have been assembled, a determination will be
made by MA of whether the requested certifications may be certified or
denied. FmHA will be notified in writing of the determination. If DOL's
investigation indicates the need for additional information, all
material will be returned to FmHA with instructions indicating the
additional information needed to make a certification. Continuation of
the 60-day time limit will begin again when the additional material is
returned to Labor.
(6) All denials will be given additional consideration if the
applicant or the Department of Agriculture provides additional evidence
which they believe merits further consideration. If the DOL reaffirms
its denial after a review of all available facts and such additional
investigation as it may make, such denial shall be considered as final.
[40 FR 4394, Jan. 29, 1975]
