93d Congress, 1st Session Senate Document No. 93-39

SMALL BUSINESS ACT—VETO

MESSAGE

FROM

THE PRESIDENT OF THE UNITED STATES

RETURNING

WITHOUT APPROVAL THE BILL (S. 1672) ENTITLED

“THE SMALL BUSINESS ACT”

S e p t e m b e r 22,1973.— Read and ordered to be printed

99-OU O

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 1973
To the Senate of the United States:

I am returning today without my approval S. 1672, a bill to amend 

the Small Business Act.

The stated purpose of this measure is to improve the legislative authority of the Small Business Administration, and I am in complete 

accord with that objective. Unfortunately, this legislation is also burdened with several extremely undesirable features—provisions which 

would represent a backward march for the Federal Government’s 

disaster relief programs—and for that reason, I am compelled to veto 

it.

Last year our Nation experienced the worst series of natural disasters in recent memory. I visited several of the affected areas and talked 

with the victims. Many of them pointed out problems they were having with Federal aid.

As a result of those discussions, I ordered a thorough review of all 

Federal disaster assistance programs, and earlier this year I proposed 

legislation that would fundamentally restructure theim The purpose 

of those proposals was simple: to help disaster victims in the fastest, 

most efficient and most humane way possible—and in a way that would 

target our assistance on those genuinely in need. The Federal Government has a clear responsibility to help disaster victims who cannot 

help themselves, especially low-income families, but those who have 

their own resources should not use the general taxpayer as a crutch.

If I were to sign this bill, we would turn our back on these objectives 

and reinstate practices that have proven unworthy in the past. In fact, 

this bill would reopen a leaky financial tap in the Federal Treasury 

which the Congress itself closed last April.

The provisions of S. 1672 which I find unacceptable are these:

—At a large and unnecessary expense to the taxpayer, this bill would 

provide Federally subsidized loans and grants to all disaster victims regardless of economic need. A wealthy landowner, who 

could provide for himself through insurance or could easily obtain 

a private loan, would be entitled to a $2500 free grant from the 

Government and an additional loan at only three percent interest. 

Alternatively, he could forego the grant and obtain a loan for the 

full amount at only one percent interest. A poor family could 

qualify for the same aid under this bill, but it is unlikely they 

would require as large a loan as richer families. The net result 

would be greater Federal assistance for the well-to-do than the 

needy, and an even larger bill for the general taxpayer. That is 

not my idea of good government.

—The cost for the taxpayer of S. 1672 would be approximately $400 

million in Federal spending for each $1 billion in loans. While we 

cannot precisely forecast future costs, we do know that if our 

disaster experiences in the next 12 months are the same as last 

year, this bill would add $800 million to the Federal budget.

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—In addition, this bill would slow the Federal Government’s ability 

to respond to disasters by creating an administrative nightmare 

for those agencies charged with providing assistance.

My continuing hope is that we can act this year to accomplish the 

much-needed reforms in our disaster assistance programs. The proposals I sent to the Congress earlier this year are designed to insure 

that the sincere compassion felt by all Americans for disaster victims 

can be translated into the most rapid, effective and equitable form of 

disaster assistance possible. To this end the Administration will continue to work with the Congress to enact these comprehensive reforms, 

and, if need be, to enact a constructive, fiscally responsible and effective 

interim measure which would serve until more permanent reforms can 

be made. In the meantime, ongoing programs will continue to be of 

assistance to disaster victims and will not be affected by my disapproval 

of S. 1672.

Richard Nixon.

The White House, September 22,1973.

S. Doc. 93-39