---
kind: "section"
citation: "2 C.F.R. § 2701.414"
title: "2"
number: "2701.414"
heading: "Indirect (F&A) Costs."
url: "https://uscodex.org/cfr/2/2701.414"
---

# §2701.414. Indirect (F&A) Costs.

- (a) When determining whether a deviation from a negotiated indirect cost rate is justified, SBA will consider the following factors:
  - (1) The degree to which a non-Federal entity has been able to defray its overhead expenses via those indirect costs it has recovered under other, concurrent SBA awards;
  - (2) The amount of funding that must be devoted to conducting program activities in order for a project to result in meaningful outcomes; and
  - (3) The amount of project funds that will remain available for conducting program activities after a negotiated rate is applied.
- (b) After conducting the analysis required in [paragraph (a)](#a) above, the head of each SBA grant program office will determine in writing whether there is sufficient justification to deviate from a negotiated indirect cost rate.
- (c) Where SBA determines that deviation from a negotiated rate is justified, it will provide a copy of that determination to OMB and will inform potential applicants of the deviation in the corresponding funding announcement.

## Notes

### Authority

Authority: 15 U.S.C. 634(b)(6), 2 CFR part 200.

### Source

Source: 79 FR 76080, Dec. 19, 2014, unless otherwise noted.