Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) (Act) authorizes the SBA to operate a microloan demonstration program (Program) under which the SBA lends funds to qualified intermediaries which re-lend amounts of $25,000 or less to eligible small business concerns. Under this final rule, an intermediary would be allowed to operate across state lines with the written approval of the SBA Associate Administrator for Financial Assistance if that person makes a determination that it is in the best interest of the small business community to allow such intermediary to operate in more than one state.