I 
115TH CONGRESS 
2D SESSION 
H. R. 6389 
To enact certain laws relating to small business as title 57, United States 
Code, ‘‘Small Business’’. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 16, 2018 
Mr. CHABOT (for himself, Ms. VELA´ZQUEZ, Mr. GOODLATTE, and Mr. NAD-
LER) introduced the following bill; which was referred to the Committee 
on the Judiciary 
A BILL 
To enact certain laws relating to small business as title 
57, United States Code, ‘‘Small Business’’. 
Be it enacted by the Senate and House of Representatives of the United 
States of America in Congress assembled, 
SECTION 1. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1.
Table of contents. 
Sec. 2.
Purpose; restatement does not change meaning or effect of existing law. 
Sec. 3.
Enactment of title 57, United States Code. 
Sec. 4.
Conforming amendments. 
Sec. 5.
Transitional and savings provisions. 
Sec. 6.
Repeals. 
SEC. 2. PURPOSE; RESTATEMENT DOES NOT CHANGE MEANING OR EF-
FECT OF EXISTING LAW. 
(a) PURPOSE.—The purpose of this Act is to enact a restatement of cer-
tain existing law relating to small business as a positive law title of the 
United States Code. 
(b) RESTATEMENT DOES NOT CHANGE MEANING OR EFFECT OF EXIST-
ING LAW.— 
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(1) IN GENERAL.—The restatement of existing law enacted by this 
Act does not change the meaning or effect of the existing law. The re-
statement consolidates various provisions that were enacted separately 
over a period of many years, reorganizing them, conforming style and 
terminology, modernizing obsolete language, and correcting drafting er-
rors. These changes serve to remove ambiguities, contradictions, and 
other imperfections, but they do not change the meaning or effect of 
the existing law or impair the precedential value of earlier judicial deci-
sions or other interpretations. 
(2) RULE OF CONSTRUCTION.— 
(A) IN GENERAL.—Notwithstanding the plain meaning rule or 
other rules of statutory construction, a change in wording made 
in the restatement of existing law enacted by this Act serves to 
clarify the existing law as indicated in paragraph (1), but not to 
change the meaning or effect of the existing law. 
(B) REVISION NOTES.—Subparagraph (A) applies whether or 
not a change in wording is explained by a revision note appearing 
in a congressional report accompanying this Act. If such a revision 
note does appear, a court shall consider the revision note in inter-
preting the change. 
SEC. 3. ENACTMENT OF TITLE 57, UNITED STATES CODE. 
(a) TITLE 57.—Title 57, United States Code, ‘‘Small Business’’, is en-
acted as follows: 
TITLE 57—SMALL BUSINESS 
Subtitle I—General Provisions 
Chap. 
Sec. 
101. Declarations; Definitions; Small Business Concerns ........................................
101101 
103. Small Business Administration ........................................................................
103101 
105. Penalties ...........................................................................................................
105101 
107. Periodic Reports ...............................................................................................
107101 
109. Funding ............................................................................................................
109101 
Subtitle II—Loan, Contracting, and Related Assistance Programs 
Division A—General Provisions 
201. General Provisions ............................................................................................
201101 
Division B—General Business Loan Program 
203. General Purpose Loans ....................................................................................
203101 
205. Special Purpose Loans .....................................................................................
205101 
207. Small Business Lending Companies and Non-Federally Regulated Lenders 
207101 
Division C—Intermediary Lending Pilot Program 
211. Intermediary Lending Pilot Program ...............................................................
211101 
Division D—Microloan Program 
213. Microloan Program ...........................................................................................
213101 
Division E—Disaster Assistance Programs 
221. Disaster Loan Program ....................................................................................
221101 
223. Private Disaster Assistance Program ...............................................................
223101 
225. Immediate Disaster Assistance Program .........................................................
225101 
227. Expedited Disaster Assistance Business Loan Guarantee Program ................
227101 
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Division F—Business Development Program 
231. General Provisions ............................................................................................
231101 
233. Contracting .......................................................................................................
233101 
235. Technical and Management Assistance ............................................................
235101 
Division G—Procurement Assistance 
241. General Provisions ............................................................................................
241101 
243. Subcontracting Provisions ................................................................................
243101 
245. Notice Provisions ..............................................................................................
245101 
247. Noncompetitive Procedures ..............................................................................
247101 
Division H—Contract Reservation Programs 
251. General Provisions ............................................................................................
251101 
253. HUBZone Program ..........................................................................................
253101 
255. Small Business Concerns Owned and Controlled by Service-Disabled Vet-
erans.
255101 
257. Small Business Concerns Owned and Controlled by Women ...........................
257101 
Division I—Research and Development 
261. General Provisions ............................................................................................
261101 
263. SBIR Programs and STTR Programs .............................................................
263101 
Division J—Small Business Development Center Program 
271. Small Business Development Center Program .................................................
271101 
Division K—Women’s Business Center Program 
273. Women’s Business Center Program .................................................................
273101 
Division L—Veterans and Reservists 
275. Veterans and Reservists ...................................................................................
275101 
Division M—International Trade 
277. International Trade ..........................................................................................
277101 
Divisions N Through Y—Reserved 
279
through 297. RESERVED 
Division Z—Miscellaneous 
299. Miscellaneous ....................................................................................................
299101 
Subtitle III—Investment Division 
Division A—General provisions 
301. General Provisions ............................................................................................
301101 
Division B—Investment Programs 
303. Small Business Investment Company Program ...............................................
303101 
305. New Markets Venture Capital Company Program ...........................................
305101 
307. Renewable Fuel Capital Investment Pilot Program .........................................
307101 
Division C—Surety Bond Guarantee Program 
321. Surety Bond Guarantee Program ....................................................................
321101 
Division D—Certified Development Company Program 
331. Certified Development Company Program .......................................................
331101 
Subtitle IV—Miscellaneous 
401. PRIME Program ..............................................................................................
401101 
403. Women’s Business Enterprise Development ....................................................
403101 
405
through 489. RESERVED 
491. Miscellaneous ....................................................................................................
491101 
Subtitle I—General Provisions 
Chapter 101—Declarations; Definitions; 
Small Business Concerns 
Sec. 
101101.
Declarations. 
101102.
Definitions. 
101103.
Small business concerns. 
§ 101101. Declarations 
(a) IN GENERAL.— 
(1) FREE COMPETITION.—The essence of the American economic 
system of private enterprise is free competition. Only through full and 
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free competition can free markets, free entry into business, and oppor-
tunities for the expression and growth of personal initiative and indi-
vidual judgment be assured. The preservation and expansion of such 
competition is basic not only to the economic well-being but to the secu-
rity of this Nation. National security and well-being cannot be realized 
unless the actual and potential capacity of small business is encouraged 
and developed. 
(2) POLICY.—It is the policy of Congress that the Government 
should aid, counsel, assist, and protect, insofar as is possible, the inter-
ests of small business concerns in order to— 
(A) preserve free competitive enterprise; 
(B) ensure that a fair proportion of the total purchases and 
contracts or subcontracts for property and services for the Govern-
ment (including contracts or subcontracts for maintenance, repair, 
and construction) be placed with small business concerns; 
(C) ensure that a fair proportion of the total sales of Govern-
ment property be made to small business concerns; and 
(D) maintain and strengthen the overall economy of the Nation. 
(b) INTERNATIONAL TRADE.— 
(1) POLICY.—It is the policy of Congress that the Federal Govern-
ment, through the Administrator, acting through the Associate Admin-
istrator for International Trade and in cooperation with the Depart-
ment of Commerce and other relevant State and Federal agencies, 
should assist small businesses to increase their ability to compete in 
international markets by— 
(A) enhancing their ability to export; 
(B) facilitating technology transfers; 
(C) enhancing their ability to compete effectively and efficiently 
against imports; 
(D) increasing the access of small business concerns to long- 
term capital for the purchase of new plant and equipment used in 
the production of goods and services involved in international 
trade; 
(E) disseminating information concerning State, Federal, and 
private programs and initiatives to enhance the ability of small 
business concerns to compete in international markets; and 
(F) ensuring that the interests of small business concerns are 
adequately represented in bilateral and multilateral trade negotia-
tions. 
(2) RESPECTIVE AGENCY ROLES.—Congress recognizes that the De-
partment of Commerce is the principal Federal agency for trade devel-
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opment and export promotion and that the Department of Commerce 
and the Small Business Administration work together to advance joint 
interests. It is the purpose of this subtitle and subtitle II to enhance, 
not alter, their respective roles. 
(c) AGRICULTURE AND RELATED INDUSTRIES.—It is the policy of Con-
gress that the Government, through the Small Business Administration, 
should assist small business concerns that are engaged in— 
(1) the production of food and fiber; 
(2) ranching; 
(3) raising of livestock; 
(4) aquaculture; or 
(5) any other industry relating to agriculture. 
(d) BUSINESS DEVELOPMENT PROGRAM.— 
(1) 1978.— 
(A) FINDINGS.—With respect to the business development pro-
gram, Congress finds that— 
(i) ownership and control of productive capital are con-
centrated in the economy of the United States, and therefore, 
certain groups own and control little productive capital; 
(ii) certain groups in the United States own and control lit-
tle productive capital because they have limited opportunities 
for small business ownership; 
(iii) the broadening of small business ownership among 
groups that, on October 24, 1978, owned and controlled little 
productive capital is essential to provide for the well-being of 
this Nation by promoting their increased participation in the 
free enterprise system of the United States; 
(iv) such development of business ownership among groups 
that, on October 24, 1978, owned and controlled little produc-
tive capital will be greatly facilitated through the creation of 
a small business ownership development program, which shall 
provide services including financial, management, and tech-
nical assistance; 
(v) the power to let Federal contracts under the business 
development program can be an effective procurement assist-
ance tool for development of business ownership among 
groups that own and control little productive capital; 
(vi) the opportunity for full participation in our free enter-
prise system by socially and economically disadvantaged per-
sons is essential if we are to obtain social and economic 
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equality for such persons and improve the functioning of our 
national economy; 
(vii) many such persons are socially disadvantaged because 
of their identification as members of certain groups that have 
suffered the effects of discriminatory practices or similar in-
vidious circumstances over which they have no control; 
(viii) those groups include Black Americans, Hispanic 
Americans, Native Americans, Indian tribes, Asian Pacific 
Americans, Native Hawaiian Organizations, and other minori-
ties; 
(ix) it is in the national interest to expeditiously ameliorate 
the conditions of socially and economically disadvantaged 
groups; 
(x) those conditions can be improved by providing the max-
imum practicable opportunity for the development of small 
business concerns owned by members of socially and economi-
cally disadvantaged groups; 
(xi) that development can be materially advanced through 
the procurement by the United States of articles, equipment, 
supplies, services, materials, and construction work from 
those concerns; and 
(xii) those procurements also benefit the United States by 
encouraging the expansion of suppliers for the procurements, 
thereby encouraging competition among the suppliers and 
promoting economy in the procurements. 
(B) PURPOSE.—The purpose of the business development pro-
gram is to— 
(i) foster business firm ownership and development by indi-
viduals in groups that own and control little productive cap-
ital; 
(ii) promote the competitive viability of those firms in the 
marketplace by providing such available financial, technical, 
and management assistance as may be necessary; 
(iii) promote the business development of small business 
concerns owned and controlled by socially and economically 
disadvantaged individuals so that those concerns can compete 
on an equal basis in the American economy; 
(iv) promote the competitive viability of those concerns in 
the marketplace by providing such available contract, finan-
cial, technical, and management assistance as may be nec-
essary; and 
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(v) clarify and expand the program for the procurement by 
the United States of articles, supplies, services, materials, and 
construction work from small business concerns owned by so-
cially and economically disadvantaged individuals. 
(2) 1988.— 
(A) FINDINGS.—Congress finds that— 
(i) the business development program and the award of 
contracts under chapter 233 remain a primary tool for im-
proving opportunities for small business concerns owned and 
controlled by socially and economically disadvantaged individ-
uals in the Federal procurement process and bringing those 
concerns into the Nation’s economic mainstream; 
(ii) although some progress has resulted from the business 
development program, it has generally failed to meet its ob-
jectives, which remain as valid on November 15, 1988, as 
when the program was initiated; 
(iii) too few concerns that have exited the business develop-
ment program have been prepared to compete successfully in 
the open marketplace on competitive procurements, and many 
concerns have developed an unhealthy dependency on sole- 
source contracts by the time the concerns are required to 
leave the program; 
(iv) the application and certification process for admitting 
new participants to the business development program is inor-
dinately lengthy and burdensome; 
(v) the Administrator has often not efficiently and equi-
tably administered and managed the business development 
program in a manner that provided clear lines of responsi-
bility for implementing and monitoring many of the adminis-
trative duties under the program; 
(vi) the Administrator and some program participants have 
given insufficient attention and support to the business devel-
opment goals of the business development program and in-
stead have focused almost entirely on the size of contract 
awards or the number of concerns certified to participate in 
the program; 
(vii) many Federal procuring agencies have failed to iden-
tify and offer the amount of contract support necessary to 
allow for diversification and growth of disadvantaged busi-
nesses participating in the business development program; 
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(viii) contract support and business development expenses 
have been misused by both the Administrator and partici-
pants in the business development program and have not been 
equitably distributed pursuant to objective criteria; 
(ix) the widespread perception of undue political influence 
in the operation and administration of the business develop-
ment program has significantly contributed to the program’s 
poor image and has deterred utilization of the program by so-
cially and economically disadvantaged concerns and by Fed-
eral procuring agencies; and 
(x) it is imperative that increased competition and other 
substantial reforms be accomplished in the business develop-
ment program to promote the congressionally mandated busi-
ness development objectives and purposes. 
(B) PURPOSES.—The purposes of Public Law 100–656 (102 
Stat. 3853) are— 
(i) to affirm that the business development program and 
chapter 233 shall be used exclusively for business develop-
ment purposes to help small businesses owned and controlled 
by socially and economically disadvantaged individuals com-
pete on an equal basis in the mainstream of the American 
economy; 
(ii) to affirm that the measure of success of the business 
development program, including the authority under chapter 
233, shall be the number of competitive firms that— 
(I) exit the business development program without 
being unreasonably reliant on contracts under chapter 
233; and 
(II) are able to compete on an equal basis in the main-
stream of the American economy; 
(iii) to ensure that program benefits accrue to individuals 
who are both socially and economically disadvantaged; 
(iv) to increase the number of small businesses owned and 
controlled by socially and economically disadvantaged individ-
uals from which the United States may purchase products 
and services (including construction work); and 
(v) to ensure integrity, competence, and efficiency in the 
administration of business development services and the Fed-
eral contracting opportunities made available to small busi-
ness concerns owned and controlled by socially and economi-
cally disadvantaged individuals. 
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(e) VICTIMS OF FLOODS AND OTHER CATASTROPHES; SMALL BUSINESS 
CONCERNS THAT ARE DISPLACED AS A RESULT OF FEDERALLY AIDED 
CONSTRUCTION PROGRAMS.—It is the policy of Congress that the Govern-
ment should assist— 
(1) victims of floods and other catastrophes; and 
(2) small business concerns that are displaced as a result of federally 
aided construction programs. 
(f) WOMEN’S BUSINESS OWNERSHIP.— 
(1) FINDINGS.—With respect to the programs and activities author-
ized by this subtitle and subtitle II, Congress finds that— 
(A) women-owned business has become a major contributor to 
the American economy by providing goods and services, revenues, 
and jobs; 
(B) over the 2 decades preceding October 25, 1988, there were 
substantial gains in the social and economic status of women as 
women sought economic equality and independence; 
(C) despite that progress, women, as a group, are subjected to 
discrimination in entrepreneurial endeavors due to their gender; 
(D) that discrimination takes many overt and subtle forms hav-
ing an adverse impact on the ability to raise or secure capital, to 
acquire managerial talents, and to capture market opportunities; 
(E) it is in the national interest to expeditiously remove dis-
criminatory barriers to the creation and development of small busi-
ness concerns owned and controlled by women; 
(F) the removal of those barriers is essential to provide a fair 
opportunity for full participation in the free enterprise system by 
women and to further increase the economic vitality of the Nation; 
(G) increased numbers of small business concerns owned and 
controlled by women will directly benefit the United States Gov-
ernment by expanding the potential number of suppliers of goods 
and services to the Government; and 
(H) programs and activities designed to assist small business 
concerns owned and controlled by women must be implemented in 
such a way as to remove those discriminatory barriers while not 
adversely affecting the rights of socially and economically dis-
advantaged individuals. 
(2) PURPOSE.—The purpose of the programs and activities con-
ducted under this subtitle and subtitle II that assist women entre-
preneurs is to— 
(A) vigorously promote the legitimate interests of small business 
concerns owned and controlled by women; 
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(B) remove, insofar as possible, the discriminatory barriers that 
are encountered by women in accessing capital and other factors 
of production; and 
(C) require that— 
(i) the Government engage in a systematic and sustained 
effort to identify, define, and analyze the discriminatory bar-
riers facing women; and 
(ii) that effort directly involve the participation of women 
business owners in the public/private sector partnership. 
(g) SUBCONTRACTING.— 
(1) PARTICIPATION IN PERFORMANCE OF CONTRACTS.—It is the pol-
icy of the United States that qualified HUBZone small business con-
cerns, small business concerns owned and controlled by service-disabled 
veterans, small business concerns owned and controlled by socially and 
economically disadvantaged individuals, small business concerns owned 
and controlled by veterans, small business concerns owned and con-
trolled by women, and other small business concerns shall have the 
maximum practicable opportunity to participate in the performance of 
contracts let by any Federal agency (including contracts and sub-
contracts for subsystems, assemblies, components, and related services 
for major systems). 
(2) TIMELY PAYMENT OF AMOUNTS DUE.—It is the policy of the 
United States that its prime contractors establish procedures to ensure 
the timely payment of amounts due pursuant to the terms of their sub-
contracts with qualified HUBZone small business concerns, small busi-
ness concerns owned and controlled by service-disabled veterans, small 
business concerns owned and controlled by socially and economically 
disadvantaged individuals, small business concerns owned and con-
trolled by veterans, small business concerns owned and controlled by 
women, and other small business concerns. 
(h) RESEARCH
AND DEVELOPMENT.—Research and development are 
major factors in the growth and progress of industry and the national econ-
omy. The expense of carrying on research and development programs is be-
yond the means of many small business concerns, and small business con-
cerns are handicapped in obtaining the benefits of research and development 
programs conducted at Government expense. Small business concerns are 
thereby placed at a competitive disadvantage. This weakens the competitive 
free enterprise system and prevents the orderly development of the national 
economy. It is the policy of Congress that assistance be given to small busi-
ness concerns to enable small business concerns to undertake and to obtain 
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the benefits of research and development in order to maintain and strength-
en the competitive free enterprise system and the national economy. 
(i) MENTORING NETWORKS.—Congress finds that— 
(1) the SBIR program and STTR program create jobs, increase ca-
pacity for technological innovation, and boost international competitive-
ness; 
(2) increasing the quantity of applications from all States to the 
SBIR program and STTR program would enhance competition for 
awards under the FAST program and the quality of the completed 
projects; and 
(3) mentoring is a natural complement to the FAST program of 
reaching out to new companies regarding the SBIR program and 
STTR program as an effective and low cost way to improve the likeli-
hood that the companies will succeed in the SBIR program and STTR 
program in developing and commercializing their research. 
(j) INTEREST RATES CHARGED BY SMALL BUSINESS INVESTMENT COM-
PANIES.—The purpose of section 303112 of this title is to facilitate the or-
derly and necessary flow of long-term loans and equity funds from small 
business investment companies to small business concerns. 
(k) SBIR PROGRAMS.— 
(1) 1982 FINDINGS AND PURPOSES.— 
(A) FINDINGS.—Congress finds that— 
(i) technological innovation— 
(I) creates jobs; 
(II) increases productivity, competition, and economic 
growth; and 
(III) is a valuable counterforce to inflation and the 
United States balance-of-payments deficit; 
(ii) while small business is the principal source of signifi-
cant innovations in the Nation, the vast majority of federally 
funded research and development is conducted by large busi-
nesses, universities, and Government laboratories; and 
(iii) small businesses— 
(I) are among the most cost-effective performers of re-
search and development; and 
(II) are particularly capable of developing research 
and development results into new products. 
(B) PURPOSES.—The purposes of Public Law 97–219 (96 Stat. 
217) are— 
(i) to stimulate technological innovation; 
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(ii) to use small business to meet Federal research and de-
velopment needs; 
(iii) to foster and encourage participation by minority and 
disadvantaged persons in technological innovation; and 
(iv) to increase private sector commercialization innovations 
derived from Federal research and development. 
(2) 1992 FINDINGS AND PURPOSES.— 
(A) FINDINGS.—Congress finds that— 
(i) the SBIR programs have been a successful method of 
involving small business concerns in Federal research and de-
velopment; 
(ii) the SBIR programs have been an effective catalyst for 
the development of technological innovations by small busi-
ness concerns; 
(iii) SBIR program participants have provided high quality 
research and development in a cost-effective manner; 
(iv) the innovative products and services developed by small 
business concerns participating in SBIR programs have been 
important to the national defense and to the missions of the 
other participating Federal agencies; 
(v) SBIR programs have effectively stimulated the commer-
cialization of technology developed through Federal research 
and development, benefiting the public and private sectors of 
the Nation; 
(vi) by encouraging the development and commercialization 
of technological innovations, the SBIR program have created 
jobs, expanded business opportunities for small firms, stimu-
lated the development of new products and services, and im-
proved the competitiveness of the Nation’s high technology in-
dustries; 
(vii) SBIR programs have helped increase exports from 
small business concerns; 
(viii) despite the general success of the SBIR programs, 
the proportion of Federal research and development funds re-
ceived by small business concerns has not increased over the 
life of the programs, but has remained at 3 percent; and 
(ix) although the participating Federal agencies have suc-
cessfully implemented most aspects of the SBIR programs, 
additional outreach efforts are necessary to stimulate in-
creased participation of socially and economically disadvan-
taged small business concerns. 
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(B) PURPOSES.—The purposes of title I of Public Law 102–564 
(106 Stat. 4249) are— 
(i) to expand and improve the SBIR programs; 
(ii) to emphasize the SBIR programs’ goal of increasing 
private sector commercialization of technology developed 
through Federal research and development; 
(iii) to increase small business participation in Federal re-
search and development; and 
(iv) to improve the Federal Government’s dissemination of 
information concerning the SBIR programs, particularly with 
regard to program participation by small business concerns 
owned and controlled by women and by small business con-
cerns owned and controlled by socially and economically dis-
advantaged individuals. 
(3) 2000 FINDINGS.—Congress finds that— 
(A) SBIR programs are highly successful in involving small 
businesses in federally funded research and development; 
(B) SBIR programs made the cost-effective and unique research 
and development capabilities possessed by the small businesses of 
the Nation available to Federal agencies; 
(C) the innovative goods and services developed by small busi-
nesses that participated in SBIR programs have produced innova-
tions of critical importance in a wide variety of high-technology 
fields, including biology, medicine, education, and defense; 
(D) SBIR programs are a catalyst in— 
(i) the promotion of research and development; 
(ii) the commercialization of innovative technology; 
(iii) the development of new products and services; and 
(iv) the continued excellence of the Nation’s high-tech-
nology industries; and 
(E) the continuation of SBIR programs will— 
(i) provide expanded opportunities for 1 of the Nation’s 
vital resources, its small businesses; 
(ii) foster invention, research, and technology; 
(iii) create jobs; and 
(iv) increase this Nation’s competitiveness in international 
markets. 
§ 101102. Definitions 
In this title: 
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(1) 1ST TIER SUBCONTRACTOR.—The term ‘‘1st tier subcontractor’’, 
with respect to a contract, means a subcontractor that has a sub-
contract directly with the prime contractor on the contract. 
(2) ACCREDITED LENDERS PROGRAM.—The term ‘‘accredited lenders 
program’’ means the program under section 331107 of this title. 
(3) ACTIVATED.—The term ‘‘activated’’, with respect to a reservist, 
means having received an order placing the reservist on active duty. 
(4) ACTIVE DUTY.—The term ‘‘active duty’’ has the meaning given 
the term in section 101 of title 10. 
(5) ADMINISTRATOR.—The term ‘‘Administrator’’ means the Admin-
istrator of the Small Business Administration. 
(6) AGRICULTURAL
COMMODITY.—The term ‘‘agricultural com-
modity’’ has the meaning given the term in section 102 of the Agricul-
tural Trade Act of 1978 (7 U.S.C. 5602). 
(7) AGRICULTURAL
ENTERPRISE.—The term ‘‘agricultural enter-
prise’’ means a small business concern engaged in— 
(A) the production of food or fiber; 
(B) ranching; 
(C) raising of livestock; 
(D) aquaculture; or 
(E) any other industry related to agriculture. 
(8) ALASKA NATIVE CORPORATION.—The term ‘‘Alaska Native Cor-
poration’’ has the meaning given the term ‘‘Native Corporation’’ in sec-
tion 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602). 
(9) ALASKA NATIVE VILLAGE.—The term ‘‘Alaska Native Village’’ 
has the meaning given the term ‘‘Native village’’ in section 3 of the 
Alaska Native Claims Settlement Act (43 U.S.C. 1602). 
(10) ASSOCIATION.—The term ‘‘Association’’ means the association 
of small business development centers recognized under section 
271102(f) of this title. 
(11) BASE CLOSURE AREA.—The term ‘‘base closure area’’ has the 
meaning given the term in section 253101 of this title. 
(12) BIOMASS.— 
(A) IN GENERAL.—The term ‘‘biomass’’ means any organic ma-
terial that is available on a renewable or recurring basis. 
(B) INCLUSIONS.—The term ‘‘biomass’’ includes— 
(i) agricultural crops; 
(ii) trees grown for energy production; 
(iii) wood waste and wood residues; 
(iv) plants (including aquatic plants and grasses); 
(v) residues; 
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(vi) fibers; 
(vii) animal wastes and other waste materials; and 
(viii) fats, oils, and greases (including recycled fats, oils, 
and greases). 
(C) EXCLUSIONS.—The term ‘‘biomass’’ does not include— 
(i) paper that is commonly recycled; or 
(ii) unsegregated solid waste. 
(13) BUNDLED CONTRACT.—The term ‘‘bundled contract’’ means a 
contract that is entered into to meet requirements that are consolidated 
in a bundling of contract requirements. 
(14) BUNDLING OF CONTRACT REQUIREMENTS.— 
(A) IN GENERAL.—The term ‘‘bundling of contract require-
ments’’ means consolidating 2 or more procurement requirements 
for goods or services previously provided or performed under sepa-
rate smaller contracts into a solicitation of offers for a single con-
tract that is likely to be unsuitable for award to a small business 
concern due to— 
(i) the diversity, size, or specialized nature of the elements 
of the performance specified; 
(ii) the aggregate dollar value of the anticipated award; 
(iii) the geographical dispersion of the contract perform-
ance sites; or 
(iv) a combination of the factors described in clauses (i), 
(ii), and (iii). 
(B) SEPARATE SMALLER CONTRACT.—In subparagraph (A), the 
term ‘‘separate smaller contract’’ means a contract that— 
(i) has been performed by 1 or more small business con-
cerns; or 
(ii) was suitable for award to 1 or more small business con-
cerns. 
(15) BUSINESS DEVELOPMENT PROGRAM.—The term ‘‘business de-
velopment program’’ means the program under division F of subtitle 
II. 
(16) CERTIFIED
DEVELOPMENT
COMPANY
PROGRAM.—The term 
‘‘certified development company program’’ means the program under 
division D of subtitle III. 
(17) CHIEF ACQUISITION OFFICER.—The term ‘‘Chief Acquisition 
Officer’’ means the employee of a Federal agency appointed or des-
ignated as the Chief Acquisition Officer for the Federal agency under 
section 1702 of title 41. 
(18) COMPUTER CRIME.—The term ‘‘computer crime’’ means— 
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(A) a crime committed against a small business concern by 
means of the use of a computer; and 
(B) a crime involving the illegal use of, or tampering with, a 
computer owned or utilized by a small business concern. 
(19) CONSOLIDATED CONTRACT.—The term ‘‘consolidated contract’’ 
means a contract resulting from the consolidation of contract require-
ments. 
(20) CONSOLIDATION
OF
CONTRACT
REQUIREMENTS.—The term 
‘‘consolidation of contract requirements’’, with respect to contract re-
quirements of a Federal agency, means a use of a solicitation to obtain 
offers for a single contract or a multiple award contract— 
(A) to satisfy 2 or more requirements of the Federal agency for 
goods or services that have been provided to or performed for the 
Federal agency under 2 or more separate contracts lower in cost 
than the total cost of the contract for which the offers are solic-
ited; or 
(B) to satisfy requirements of the Federal agency for construc-
tion projects to be performed at 2 or more discrete sites. 
(21) CONTRACTING OFFICER.—The term ‘‘contracting officer’’ has 
the meaning given the term in section 2101 of title 41. 
(22) CREDIT ELSEWHERE.—The term ‘‘credit elsewhere’’, with re-
spect to a concern or homeowner, means sufficient credit that is avail-
able from a non-Federal source on reasonable terms and conditions 
taking into consideration the prevailing rates and terms in the commu-
nity in or near which the concern transacts business or the homeowner 
resides, for similar purposes and periods of time. 
(23) DEFENSE AGENCY.—The term ‘‘defense agency’’ has the mean-
ing given the term in section 101 of title 10. 
(24) DISABLED INDIVIDUAL.—The term ‘‘disabled individual’’ means 
an individual who— 
(A) has a physical, mental, or emotional impairment, defect, ail-
ment, disease, or disability of a permanent nature that in any way 
limits the selection of any type of employment for which the per-
son would otherwise be qualified or qualifiable; or 
(B) is a service-disabled veteran. 
(25) DISABLED VETERAN.—The term ‘‘disabled veteran’’ has the 
meaning given the term in section 4211 of title 38. 
(26) DISADVANTAGED OWNER.—The term ‘‘disadvantaged owner’’ 
has the meaning given the term in section 231101 of this title. 
(27) DISASTER.— 
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(A) IN GENERAL.—The term ‘‘disaster’’ means a sudden event 
that causes severe damage. 
(B) INCLUSIONS.—The term ‘‘disaster’’ includes a flood, hurri-
cane, tornado, earthquake, fire, explosion, volcano, windstorm, 
landslide or mudslide, tidal wave, commercial fishery failure or 
fishery resource disaster (as determined by the Secretary of Com-
merce under section 308(b) of the Interjurisdictional Fisheries Act 
of 1986 (16 U.S.C. 4107(b))), ocean condition resulting in the clo-
sure of customary fishing water, riot, civil disorder, or other catas-
trophe. 
(C) EXCLUSION.—The term ‘‘disaster’’ does not include an eco-
nomic dislocation. 
(28) DISASTER AREA.—The term ‘‘disaster area’’ means an area af-
fected by a natural or other disaster, as determined for purposes of sec-
tion 221101 or 221102 of this title, during the period of the declara-
tion. 
(29) DISASTER ASSISTANCE PROGRAM.—The term ‘‘disaster assist-
ance program’’ means— 
(A) the disaster loan program; 
(B) the private disaster assistance program; 
(C) the immediate disaster assistance program; and 
(D) the expedited disaster assistance business loan guarantee 
program. 
(30) DISASTER LOAN PROGRAM.—The term ‘‘disaster loan program’’ 
means the program under chapter 221. 
(31) ECONOMICALLY
DISADVANTAGED
INDIAN
TRIBE.—The term 
‘‘economically disadvantaged Indian tribe’’ has the meaning given the 
term in section 231101 of this title. 
(32) ENERGY EFFICIENCY PROJECT.—The term ‘‘energy efficiency 
project’’ means the installation or upgrading of equipment that results 
in a significant reduction in energy usage. 
(33) ENERGY MEASURE.—The term ‘‘energy measure’’ includes— 
(A) solar thermal energy equipment that is— 
(i) of the active type based on mechanically forced energy 
transfer; 
(ii) of the passive type based on convective, conductive, or 
radiant energy transfer; or 
(iii) a combination of the types described in clauses (i) and 
(ii); 
(B) photovoltaic cells and related equipment; 
(C) a product or service— 
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(i) the primary purpose of which is conservation of energy 
through a device or technique that increases the energy effi-
ciency of existing equipment, methods of operation, or sys-
tems that use fossil fuel; and 
(ii) that is on the Energy Conservation Measures list of the 
Secretary of Energy or that the Administrator determines to 
be consistent with the intent of this paragraph; 
(D) equipment the primary purpose of which is production of 
energy from wood, biological waste, grain, or another biomass (as 
defined by the Administrator) source of energy; 
(E) equipment the primary purpose of which is industrial cogen-
eration of energy, district heating, or production of energy from 
industrial waste; 
(F) hydroelectric power equipment; 
(G) wind energy conversion equipment; and 
(H) an engineering, architectural, consulting, or other profes-
sional service that is necessary or appropriate to aid citizens in 
using any of the measures described in subparagraphs (A) to (G). 
(34) ESOP.—Effective on and after the date the Administrator and 
the Secretary of Veterans Affairs jointly issue implementing regulations 
described in section 1832(e) of the National Defense Authorization Act 
for Fiscal Year 2017 (Public Law 114–328, 130 Stat. 2660), the term 
‘‘ESOP’’ has the meaning given the term ‘‘employee stock ownership 
plan’’ in section 4975(e)(7) of the Internal Revenue Code of 1986 (26 
U.S.C. 4975(e)(7)). 
(35) EXPEDITED
DISASTER
ASSISTANCE
BUSINESS
LOAN
GUAR-
ANTEE PROGRAM.—The term ‘‘expedited disaster assistance business 
loan guarantee program’’ means the program under chapter 227. 
(36) EXPORT ASSISTANCE CENTER.—The term ‘‘export assistance 
center’’ means a 1-stop shop for United States exporters established by 
the United States and Foreign Commercial Service of the Department 
of Commerce pursuant to section 2301(b)(8) of the Omnibus Trade 
and Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8)). 
(37) EXPORT DEVELOPMENT ACTIVITY.—The term ‘‘export develop-
ment activity’’ includes— 
(A) obtaining a standby letter of credit when required as a bid 
bond, performance bond, or advance payment guarantee; 
(B) participation in a trade show that takes place outside the 
United States; 
(C) translation of product brochures or catalogues for use in 
markets outside the United States; 
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(D) obtaining a general line of credit for export purposes; 
(E) performing a service contract from buyers located outside 
the United States; 
(F) obtaining transaction-specific financing associated with com-
pleting export orders; 
(G) purchasing real estate or equipment to be used in the pro-
duction of a good or service for export; 
(H) providing a term loan or other financing to enable a small 
business concern, including an export trading company and an ex-
port management company, to develop a market outside the 
United States; and 
(I) acquiring, constructing, renovating, modernizing, improving, 
or expanding a production facility or equipment to be used in the 
United States in the production of a good or service for export. 
(38) EXPORT EXPRESS PROGRAM.—The term ‘‘export express pro-
gram’’ means the program under section 205114 of this title. 
(39) EXPORT FINANCE SPECIALIST.—The term ‘‘export finance spe-
cialist’’ means a full-time equivalent employee of the Office of Inter-
national Trade assigned to an export assistance center to carry out the 
duties described in section 277105 of this title. 
(40) EXPORT
WORKING
CAPITAL
PROGRAM.—The term ‘‘export 
working capital program’’ means the program established under section 
205108 of this title. 
(41) EXPRESS LENDER.—The term ‘‘express lender’’ means a lender 
authorized by the Administrator to participate in the express loan pro-
gram. 
(42) EXPRESS LOAN.— 
(A) EXPORT EXPRESS PROGRAM.—For purposes of the export 
express program, the term ‘‘express loan’’ means a loan in which 
a lender uses to the maximum extent practicable the loan analyses, 
procedures, and documentation of the lender to provide expedited 
processing of a loan application. 
(B) EXPRESS LOAN.—For purposes of the express loan pro-
gram, the term ‘‘express loan’’ means a loan made pursuant to 
section 203120 of this title in which a lender utilizes to the max-
imum extent practicable its own loan analyses, procedures, and 
documentation. 
(43) EXPRESS LOAN PROGRAM.—The term ‘‘express loan program’’ 
means the program for express loans established by the Administrator 
under section 7(a)(25)(B) of the Small Business Act (15 U.S.C. 
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636(a)(25)(B)) (as in existence on April 5, 2004), with a guarantee 
rate of not more than 50 percent. 
(44) EXTRAORDINARY
DISASTER.—The term ‘‘extraordinary dis-
aster’’ means a major disaster that the Administrator declares to be 
an extraordinary disaster under section 221108 of this title. 
(45) EXTRAORDINARY DISASTER-RELATED SUBSTANTIAL ECONOMIC 
INJURY.—The term ‘‘extraordinary disaster-related substantial eco-
nomic injury’’ means economic injury to a small business concern that 
results in the inability of the small business concern to— 
(A) meet its obligations as they mature; 
(B) meet its ordinary and necessary operating expenses; or 
(C) market, produce, or provide a product or service ordinarily 
marketed, produced, or provided by the small business concern; 
because the small business concern relies on materials from the ex-
traordinary disaster area or sells or markets in the extraordinary dis-
aster area. 
(46) FAST PROGRAM.—The term ‘‘FAST program’’ means the pro-
gram under section 263305 of this title. 
(47) FEDERAL AGENCY.—Except in subtitles III and IV: 
(A) IN GENERAL.—The term ‘‘Federal agency’’ has the meaning 
given the term ‘‘agency’’ in section 551 of title 5. 
(B) EXCLUSION.—The term ‘‘Federal agency’’ does not in-
clude— 
(i) the United States Postal Service; or 
(ii) the Government Accountability Office. 
(48) GENERAL BUSINESS LOAN PROGRAM.—The term ‘‘general busi-
ness loan program’’ means the program under division B of subtitle II. 
(49) HEDGE FUND.—The term ‘‘hedge fund’’ has the meaning given 
the term in section 13(h)(2) of the Bank Holding Company Act of 
1956 (12 U.S.C. 1851(h)(2)). 
(50) HISTORICALLY UNDERUTILIZED BUSINESS ZONE.—The term 
‘‘historically underutilized business zone’’ has the meaning given the 
term in section 253101 of this title. 
(51) HOMEOWNER.—The term ‘‘homeowner’’ includes an owner or 
lessee of residential property (including personal property of the owner 
or lessee of the residential property). 
(52) HUBZONE.—The term ‘‘HUBZone’’ has the meaning given the 
term in section 253101 of this title. 
(53) HUBZONE PROGRAM.—The term ‘‘HUBZone program’’ means 
the program under chapter 253. 
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(54) HUBZONE SMALL BUSINESS CONCERN.—The term ‘‘HUBZone 
small business concern’’ has the meaning given the term in section 
253101 of this title. 
(55) IMMEDIATE DISASTER ASSISTANCE PROGRAM.—The term ‘‘im-
mediate disaster assistance program’’ means the program under chap-
ter 225. 
(56) INDIAN RESERVATION.— 
(A) IN
GENERAL.—The term ‘‘Indian reservation’’ has the 
meaning given the term ‘‘Indian country’’ in section 1151 of title 
18. 
(B) EXCLUSIONS.—The term ‘‘Indian reservation’’ does not in-
clude— 
(i) land located in a State in which an Indian tribe did not 
exercise governmental jurisdiction on December 21, 2000, un-
less that Indian tribe is recognized after December 21, 2000, 
by either an Act of Congress or pursuant to regulations of 
the Secretary of the Interior for the administrative recogni-
tion that an Indian group exists as an Indian tribe (part 83 
of title 25, Code of Federal Regulations); or 
(ii) land taken into trust or acquired by an Indian tribe 
after December 21, 2000, if the land— 
(I) is not located within the external boundaries of an 
Indian reservation or former reservation; or 
(II) is not contiguous to the land held in trust or re-
stricted status on December 21, 2000. 
(C) LAND IN OKLAHOMA.—With respect to land in the State of 
Oklahoma, the term ‘‘Indian reservation’’ means land that— 
(i) is within the jurisdictional areas of an Oklahoma Indian 
tribe (as determined by the Secretary of the Interior); and 
(ii) is recognized by the Secretary of the Interior as eligible 
for trust land status under part 151 of title 25, Code of Fed-
eral Regulations (as in effect on December 21, 2000). 
(57) LOWER TIER SUBCONTRACTOR.—The term ‘‘lower tier subcon-
tractor’’ means a subcontractor other than a 1st tier subcontractor. 
(58) MAJOR DISASTER.—The term ‘‘major disaster’’ has the mean-
ing given the term in section 102 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 5122). 
(59) MAJOR
DISASTER
AREA.—The term ‘‘major disaster area’’ 
means the area for which a major disaster is declared. 
(60) MICROLOAN PROGRAM.—The term ‘‘microloan program’’ means 
the program under chapter 213. 
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(61) MILITARY DEPARTMENT.—The term ‘‘military department’’ has 
the meaning given the term in section 101 of title 10. 
(62) MULTIPLE AWARD CONTRACT.—The term ‘‘multiple award con-
tract’’ means— 
(A) a multiple award task order contract or delivery order con-
tract that is entered into under chapter 41 of title 41; and 
(B) any other indefinite delivery, indefinite quantity contract 
that is entered into by the head of a Federal agency with 2 or 
more sources pursuant to the same solicitation. 
(63) NATIVE HAWAIIAN ORGANIZATION.—The term ‘‘Native Hawai-
ian organization’’ means a community service organization serving Na-
tive Hawaiians in the State of Hawaii— 
(A) that is a nonprofit corporation that has filed articles of in-
corporation with the director of the Hawaii Department of Com-
merce and Consumer Affairs, or any successor agency; 
(B) that is controlled by Native Hawaiians; and 
(C) the business activities of which will principally benefit Na-
tive Hawaiians in the State of Hawaii. 
(64) NEW MARKETS VENTURE CAPITAL COMPANY PROGRAM.—The 
term ‘‘new markets venture capital company program’’ means the pro-
gram under chapter 305. 
(65) NON-FEDERALLY REGULATED LENDER.—The term ‘‘non-feder-
ally regulated lender’’ means a business concern (other than a small 
business lending company)— 
(A) that is authorized by the Administrator to make loans 
under the general business loan program; 
(B) that is subject to regulation by a State; and 
(C) the lending activities of which are not regulated by any Fed-
eral banking authority. 
(66) PREFERRED LENDER.—The term ‘‘preferred lender’’ means a 
lender participating in the preferred lenders program. 
(67) PREFERRED LENDERS PROGRAM.—The term ‘‘preferred lenders 
program’’ means the preferred lenders program carried out under sec-
tion 103202(f)(3) of this title. 
(68) PREMIER CERTIFIED LENDERS PROGRAM.—The term ‘‘premier 
certified lenders program’’ means the program under section 331108 
of this title. 
(69) PRIME PROGRAM.—The term ‘‘PRIME program’’ means the 
program under chapter 401. 
(70) PRIVATE DISASTER ASSISTANCE PROGRAM.—The term ‘‘private 
disaster assistance program’’ means the program under chapter 223. 
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(71) PRIVATE EQUITY FIRM.—The term ‘‘private equity firm’’ has 
the meaning given the term ‘‘private equity fund’’ in section 13(h)(2) 
of the Bank Holding Company Act of 1956 (12 U.S.C. 1851(h)(2)). 
(72) PROCURING AGENCY.—The term ‘‘procuring agency’’ means a 
Federal agency that has procurement power. 
(73) PUBLIC OR PRIVATE ORGANIZATION FOR THE DISABLED.—The 
term ‘‘public or private organization for the disabled’’ means an organi-
zation— 
(A) that is organized under the laws of the United States or of 
a State; 
(B) that is operated in the interest of disabled individuals; 
(C) the net income of which does not inure in whole or in part 
to the benefit of any shareholder or other individual; 
(D) that complies with any applicable occupational health and 
safety standard prescribed by the Secretary of Labor; and 
(E) that, in the production of commodities and in the provision 
of services during any fiscal year in which the organization re-
ceived financial assistance under the general business loan pro-
gram, employs disabled individuals for not less than 75 percent of 
the man-hours required for the production or provision of the com-
modities or services. 
(74) QUALIFIED CENSUS TRACT.— 
(A) IN GENERAL.—The term ‘‘qualified census tract’’ has the 
meaning given the term in section 42(d)(5)(B)(ii) of the Internal 
Revenue Code of 1986 (26 U.S.C. 42(d)(5)(B)(ii)). 
(B) EXCEPTION FOR PUERTO RICO.— 
(i) IN GENERAL.—For a metropolitan statistical area in 
Puerto Rico, the term ‘‘qualified census tract’’ has the mean-
ing given the term in clause (ii) of section 42(d)(5)(B) of the 
Internal Revenue Code of 1986 (26 U.S.C. 42(d)(5)(B)(ii)) 
as applied without regard to subclause (II) of that clause. 
(ii) APPLICABILITY.—This subparagraph applies on the 
earlier of— 
(I) the date that is 10 years after the date on which 
the Administrator implements this subparagraph; or 
(II) the date on which the Financial Oversight and 
Management Board for Puerto Rico established by sec-
tion 101 of the Puerto Rico Oversight, Management, and 
Economic Stability Act (48 U.S.C. 2121) ceases to exist. 
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(75) QUALIFIED EMPLOYEE TRUST.—The term ‘‘qualified employee 
trust’’ has the meaning given the term in section 205109(a) of this 
title. 
(76) QUALIFIED HUBZONE SMALL BUSINESS CONCERN.—The term 
‘‘qualified HUBZone small business concern’’ has the meaning given 
the term in section 253101 of this title. 
(77) QUALIFIED INDIAN TRIBE.—The term ‘‘qualified Indian tribe’’ 
means an Indian tribe (as defined in section 4 of the Indian Self-Deter-
mination and Education Assistance Act (25 U.S.C. 450b)) that owns 
and controls 100 percent of a small business concern. 
(78) QUALIFIED NONMETROPOLITAN COUNTY.—The term ‘‘qualified 
nonmetropolitan county’’ has the meaning given the term in section 
253101 of this title. 
(79) REDESIGNATED AREA.—The term ‘‘redesignated area’’ has the 
meaning given the term in section 253101 of this title. 
(80) RENEWABLE ENERGY SYSTEM.—The term ‘‘renewable energy 
system’’ means a system of energy derived from— 
(A) a wind, solar, biomass (including biodiesel), or geothermal 
source; or 
(B) hydrogen derived from biomass or water using an energy 
source described in subparagraph (A). 
(81) RENEWABLE FUEL CAPITAL INVESTMENT PILOT PROGRAM.— 
The term ‘‘renewable fuel capital investment pilot program’’ means the 
program under chapter 307. 
(82) RESERVIST.—The term ‘‘reservist’’ means a member of a re-
serve component of the Armed Forces, as described in section 10101 
of title 10. 
(83) SBA.—The term ‘‘SBA’’ means the Small Business Adminis-
tration. 
(84) SBA DISTRICT.—The term ‘‘SBA district’’ means a part of an 
SBA region designated by the Administrator as a district. 
(85) SBA DISTRICT OFFICE.—The term ‘‘SBA district office’’ means 
a district office of SBA established under section 103101(c) of this 
title. 
(86) SBA REGION.—The term ‘‘SBA region’’ means a geographic re-
gion served by an SBA regional office. 
(87) SBA REGIONAL
OFFICE.—The term ‘‘SBA regional office’’ 
means a regional office of SBA established under section 103101(c) of 
this title. 
(88) SBIR AGENCY.—The term ‘‘SBIR agency’’ has the meaning 
given the term in section 261101 of this title. 
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(89) SBIR PROGRAM.—The term ‘‘SBIR program’’ has the meaning 
given the term in section 261101 of this title. 
(90) SCORE.—The term ‘‘SCORE’’ means a service corps of retired 
executives established under section 241103(b) of this title. 
(91) SENIOR PROCUREMENT EXECUTIVE.—The term ‘‘senior pro-
curement executive’’ means an official designated under section 1702 
of title 41 as the senior procurement executive for a Federal agency. 
(92) SERVICE-DISABLED VETERAN.—The term ‘‘service-disabled vet-
eran’’ means a veteran with a disability that is service-connected (as 
defined in section 101 of title 38). 
(93) SIMPLIFIED ACQUISITION THRESHOLD.—The term ‘‘simplified 
acquisition threshold’’ has the meaning given the term in section 134 
of title 41. 
(94) SMALL AGRICULTURAL COOPERATIVE.— 
(A) IN GENERAL.—The term ‘‘small agricultural cooperative’’ 
means an association (corporate or otherwise) acting pursuant to 
the Agricultural Marketing Act (12 U.S.C. 1141 et seq.) the size 
of which does not exceed the size standard established by the Ad-
ministrator for other similar agricultural small business concerns. 
(B) SIZE DETERMINATION.—In determining the size of an asso-
ciation described in subparagraph (A), the Administrator— 
(i) shall regard the association as a business concern; and 
(ii) shall not include the income or employees of any mem-
ber shareholder of the association. 
(95) SMALL BUSINESS CONCERN.—The term ‘‘small business con-
cern’’ has the meaning given the term under section 101103 of this 
title. 
(96) SMALL
BUSINESS
CONCERN
OWNED
AND
CONTROLLED
BY 
SERVICE-DISABLED VETERANS.— 
(A) EFFECTIVE PRIOR TO JOINT ISSUANCE OF IMPLEMENTING 
REGULATIONS.—Effective prior to the date on which the Adminis-
trator and the Secretary of Veterans Affairs jointly issue imple-
menting regulations described in section 1832(e) of the National 
Defense Authorization Act for Fiscal Year 2017 (Public Law 114– 
328, 130 Stat. 2660), the term ‘‘small business concern owned 
and controlled by service-disabled veterans’’ means a small busi-
ness concern— 
(i) not less than 51 percent of which is owned by 1 or more 
service-disabled veterans or, in the case of any publicly owned 
business, not less than 51 percent of the stock of which is 
owned by 1 or more service-disabled veterans; and 
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(ii) the management and daily business operations of which 
are controlled by 1 or more service-disabled veterans or, in 
the case of a veteran with permanent and severe disability, 
the spouse or permanent caregiver of the veteran. 
(B) EFFECTIVE WITH JOINT ISSUANCE OF IMPLEMENTING REG-
ULATIONS.—Effective on and after the date on which the Adminis-
trator and the Secretary of Veterans Affairs jointly issue imple-
menting regulations described in section 1832(e) of the National 
Defense Authorization Act for Fiscal Year 2017 (Public Law 114– 
328, 130 Stat. 2660), the term ‘‘small business concern owned 
and controlled by service-disabled veterans’’ means any of the fol-
lowing: 
(i) A small business concern— 
(I) not less than 51 percent of which is owned by 1 
or more service-disabled veterans or, in the case of any 
publicly owned business, not less than 51 percent of the 
stock (not including any stock owned by an ESOP) of 
which is owned by 1 or more service-disabled veterans; 
and 
(II) the management and daily business operations of 
which are controlled by 1 or more service-disabled vet-
erans or, in the case of a veteran with permanent and 
severe disability, the spouse or permanent caregiver of 
the veteran. 
(ii) A small business concern— 
(I) not less than 51 percent of which is owned by 1 
or more service-disabled veterans with a disability that is 
rated by the Secretary of Veterans Affairs as a perma-
nent and total disability who are unable to manage the 
daily business operations of such concern; or 
(II) in the case of a publicly owned business, not less 
than 51 percent of the stock (not including any stock 
owned by an ESOP) of which is owned by 1 or more 
such veterans. 
(iii)(I) During the time period described in subclause (II), 
a small business concern that was a small business concern 
described in clause (i) or (ii) immediately prior to the death 
of a service-disabled veteran who was the owner of the con-
cern, the death of whom causes the concern to be less than 
51 percent owned by 1 or more service-disabled veterans, if— 
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(aa) the surviving spouse of the deceased veteran ac-
quires such veteran’s ownership interest in such concern; 
(bb) such veteran had a service-connected disability 
(as defined in section 101(16) of title 38) rated as 100 
percent disabling under the laws administered by the 
Secretary of Veterans Affairs or such veteran died as a 
result of a service-connected disability; and 
(cc) immediately prior to the death of such veteran, 
and during the period described in subclause (II), the 
small business concern is included in the database de-
scribed in section 8127(f) of title 38. 
(II) The time period described in this subclause is the time 
period beginning on the date of the veteran’s death and end-
ing on the earliest of— 
(aa) the date on which the surviving spouse remarries; 
(bb) the date on which the surviving spouse relin-
quishes an ownership interest in the small business con-
cern; or 
(cc) the date that is 10 years after the date of the 
death of the veteran. 
(97) SMALL BUSINESS CONCERN OWNED AND CONTROLLED BY SO-
CIALLY AND ECONOMICALLY DISADVANTAGED INDIVIDUALS.—The term 
‘‘small business concern owned and controlled by socially and economi-
cally disadvantaged individuals’’ has the meaning given the term in sec-
tion 231101 of this title. 
(98) SMALL BUSINESS CONCERN OWNED AND CONTROLLED BY VET-
ERANS.—The term ‘‘small business concern owned and controlled by 
veterans’’ means a small business concern— 
(A) not less than 51 percent of which is owned by 1 or more 
veterans; and 
(B) the management and daily business operations of which are 
controlled by 1 or more veterans. 
(99) SMALL
BUSINESS
CONCERN
OWNED
AND
CONTROLLED
BY 
WOMEN.—The term ‘‘small business concern owned and controlled by 
women’’ means a small business concern— 
(A) at least 51 percent of which is owned by 1 or more women; 
and 
(B) the management and daily business operations of the busi-
ness of which are controlled by 1 or more women. 
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(100) SMALL BUSINESS DEVELOPMENT CENTER.—The term ‘‘small 
business development center’’ means a small business development cen-
ter that receives financial assistance under chapter 271. 
(101) SMALL
BUSINESS
DEVELOPMENT
CENTER
PROGRAM.—The 
term ‘‘small business development center program’’ means the small 
business development center program under chapter 271. 
(102) SMALL
BUSINESS
INVESTMENT
COMPANY
PROGRAM.—The 
term ‘‘small business investment company program’’ means the pro-
gram under chapter 303. 
(103) SMALL BUSINESS LENDING COMPANY.—The term ‘‘small busi-
ness lending company’’ means a business concern— 
(A) that is authorized by the Administrator to make loans 
under the general business loan program; and 
(B) the lending activities of which are not subject to regulation 
by any Federal or State regulatory agency. 
(104) 
SOCIALLY
AND
ECONOMICALLY
DISADVANTAGED
INDI-
VIDUAL.—The term ‘‘socially and economically disadvantaged indi-
vidual’’ has the meaning given the term in section 231101 of this title. 
(105) SOCIALLY DISADVANTAGED INDIVIDUAL.—The term ‘‘socially 
disadvantaged individual’’ has the meaning given the term in section 
231101 of this title. 
(106) STTR AGENCY.—The term ‘‘STTR agency’’ has the meaning 
given the term in section 261101 of this title. 
(107) STTR PROGRAM.—The term ‘‘STTR program’’ has the mean-
ing given the term in section 261101 of this title. 
(108) SUBCONTRACT.—The term ‘‘subcontract’’ means a binding 
agreement between a contractor and a person for the person to perform 
all or part of the work that the contractor undertakes to perform under 
a contract with another person. 
(109) SUBCONTRACTOR.—The term ‘‘subcontractor’’ means a person 
that enters into a subcontract with a contractor as described in para-
graph (107). 
(110) SUBCONTRACTOR AT ANY TIER.—The term ‘‘subcontractor at 
any tier’’ means— 
(A) a 1st tier subcontractor; and 
(B) a lower tier subcontractor. 
(111) SURETY
BOND
GUARANTEE
PROGRAM.—The term ‘‘surety 
bond guarantee program’’ means the program under chapter 321. 
(112) SURVIVING SPOUSE.—Effective on and after the date the Ad-
ministrator and the Secretary of Veterans Affairs jointly issue imple-
menting regulations described in section 1832(e) of the National De-
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fense Authorization Act for Fiscal Year 2017 (Public Law 114–328, 
130 Stat. 2660), the term ‘‘surviving spouse’’ has the meaning given 
the term in section 101(3) of title 38. 
(113) UNITED STATES.—The term ‘‘United States’’ includes the 
States, the District of Columbia, Puerto Rico, and any other territory 
(including a possession) of the United States. 
(114) VENTURE CAPITAL OPERATING COMPANY.—The term ‘‘venture 
capital operating company’’ means an entity described in clause (i), (v), 
or (vi) of section 121.103(b)(5) of title 13, Code of Federal Regulations 
(or any successor regulation). 
(115) VETERAN.—The term ‘‘veteran’’ has the meaning given the 
term in section 101 of title 38. 
(116) WOMEN’S BUSINESS CENTER.—The term ‘‘women’s business 
center’’ means a women’s business center operating under chapter 273. 
(117) WOMEN’S BUSINESS CENTER PROGRAM.—The term ‘‘women’s 
business center program’’ means the women’s business center program 
under chapter 273. 
§ 101103. Small business concerns 
(a) IN GENERAL.—In this title, the term ‘‘small business concern’’ means 
a business concern (including an agricultural enterprise) that— 
(1) is independently owned and operated; and 
(2) is not dominant in its field of operation. 
(b) SIZE STANDARDS.— 
(1) IN GENERAL.—In addition to the criteria specified in subsection 
(a), the Administrator may specify detailed definitions or standards by 
which a business concern may be determined to be a small business 
concern for the purposes of this title or any other law. 
(2) ADDITIONAL CRITERIA.—The standards described in paragraph 
(1) may use— 
(A) number of employees, dollar volume of business, net worth, 
net income, or a combination thereof; or 
(B) other appropriate factors. 
(3) REQUIREMENTS FOR PRESCRIPTION OF SIZE STANDARD.—Unless 
specifically authorized by statute, no Federal agency may prescribe a 
size standard for categorizing a business concern as a small business 
concern unless the proposed size standard— 
(A) is proposed after an opportunity for public notice and com-
ment; 
(B) provides for determining— 
(i) the size of a manufacturing concern as measured by the 
manufacturing concern’s average employment based on em-
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ployment during each of the manufacturing concern’s pay pe-
riods for the preceding 12 months; 
(ii) the size of a business concern providing services on the 
basis of the annual average gross receipts of the business con-
cern over a period of not less than 3 years; 
(iii) the size of other business concerns on the basis of data 
over a period of not less than 3 years; or 
(iv) other appropriate factors; and 
(C) is approved by the Administrator. 
(4) VARIATION
BY
INDUSTRY; CONSIDERATION
OF
OTHER
FAC-
TORS.—In establishing or approving a size standard under this sub-
section, the Administrator shall— 
(A) ensure that the size standard varies from industry to indus-
try to the extent necessary to reflect the differing characteristics 
of the various industries; and 
(B) consider other factors that the Administrator considers to 
be relevant. 
(5) ALTERNATIVE SIZE STANDARDS.— 
(A) IN GENERAL.—The Administrator shall establish an alter-
native size standard for applicants for business loans under the 
general business loan program and applicants for development 
company loans under the certified development company program. 
(B) USE OF MAXIMUM TANGIBLE NET WORTH AND AVERAGE 
NET INCOME.—The alternative size standard under subparagraph 
(A) shall use maximum tangible net worth and average net income 
as an alternative to the use of industry standards. 
(6) PROPOSED RULEMAKING.—In conducting rulemaking to revise, 
modify, or establish a size standard under this section, the Adminis-
trator shall consider, address, and make publicly available as part of 
the notice of proposed rulemaking and notice of final rule— 
(A) a detailed description of the industry for which the new size 
standard is proposed; 
(B) an analysis of the competitive environment for that indus-
try; 
(C) the approach that the Administrator used to develop the 
proposed standard, including the source of all data used to develop 
the proposed rulemaking; and 
(D) the anticipated effect of the proposed rulemaking on the in-
dustry, including— 
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(i) the number of concerns that do not currently qualify as 
a small business concern that would qualify as a small busi-
ness concern under the proposed rulemaking; and 
(ii) the number of concerns that currently qualify as a 
small business concern that would not qualify as a small busi-
ness concern under the proposed rulemaking. 
(7) COMMON SIZE STANDARDS.—In carrying out this subsection, the 
Administrator may establish or approve a single size standard for a 
grouping of 4-digit North American Industry Classification System 
codes only if the Administrator makes publicly available, not later than 
the date on which the size standard is established or approved, a jus-
tification demonstrating that the size standard is appropriate for each 
individual industry classification included in the grouping. 
(8) NUMBER OF SIZE STANDARDS.—The Administrator shall not 
limit the number of size standards established under this subsection, 
but shall assign the appropriate size standard to each North American 
Industry Classification System code. 
(9) LISTING OF ADDITIONAL SIZE STANDARDS.—The Administrator 
shall prescribe regulations to carry out this subsection. The regulations 
shall include a listing of all small business size standards prescribed by 
statute or by individual Federal agencies, identifying the programs or 
purposes to which the size standards apply. 
(10) UPDATED SIZE STANDARDS.— 
(A) ROLLING REVIEW.— 
(i) IN GENERAL.—The Administrator shall— 
(I) during every 18-month period, conduct a detailed 
review of not less than 1⁄3 of the size standards for small 
business concerns established under this subsection, 
which shall include holding not less than 2 public forums 
located in different geographic regions of the United 
States; 
(II) after completing a review under subclause (I) 
make appropriate adjustments to the size standards to 
reflect market conditions; 
(III) make publicly available— 
(aa) information regarding the factors evaluated 
as part of each review conducted under subclause 
(I); and 
(bb) information regarding the criteria used for 
any revised size standards promulgated under sub-
clause (II); and 
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(IV) not later than 30 days after the date on which 
the Administrator completes a review under subclause 
(I), submit to the Committee on Small Business and En-
trepreneurship of the Senate and the Committee on 
Small Business of the House of Representatives and 
make publicly available a report regarding the review, in-
cluding why the Administrator— 
(aa) used the factors and criteria described in 
subclause (III); and 
(bb) adjusted or did not adjust any size standard 
that was reviewed. 
(ii) COMPLETE REVIEW OF SIZE STANDARDS.—The Admin-
istrator shall ensure that each size standard for small busi-
ness concerns established under this subsection is reviewed 
under clause (i) not less frequently than once every 5 years. 
(B) REGULATIONS.—The Administrator shall promulgate regu-
lations for conducting the reviews required under subparagraph 
(A). 
(C) AGRICULTURAL ENTERPRISES.—Size standards established 
for agricultural enterprises under this subsection shall be subject 
to the rolling review procedures established under this paragraph. 
(11) PETITIONS FOR RECONSIDERATION OF SIZE STANDARDS.— 
(A) IN GENERAL.—A person may file a petition for reconsider-
ation with the Office of Hearings and Appeals of a size standard 
revised, modified, or established by the Administrator under this 
subsection. 
(B) TIME LIMIT.—A person filing a petition for reconsideration 
of a size standard under subparagraph (A) shall file the petition 
not later than 30 days after the publication in the Federal Reg-
ister of the notice of final rule to revise, modify, or establish the 
size standard. 
(C) PROCESS FOR AGENCY REVIEW.—In deciding a petition for 
reconsideration under this paragraph, the Office of Hearings and 
Appeals shall use the same process that it uses to decide chal-
lenges to the size of a small business concern. 
(D) JUDICIAL REVIEW.—The publication of a final rule in the 
Federal Register described in subparagraph (B) shall be consid-
ered final agency action for purposes of seeking judicial review. 
The filing of a petition for reconsideration under subparagraph 
(A) shall not be a condition precedent to judicial review of a size 
standard. 
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(E) RULES OR GUIDANCE.—The Office of Hearings and Appeals 
shall begin accepting petitions for reconsideration described in 
subparagraph (A) after the date on which the Administrator issues 
a rule or other guidance implementing this paragraph. Notwith-
standing the provisions of subparagraph (B), petitions for recon-
sideration of size standards revised, modified, or established in a 
Federal Register final rule published between November 25, 2015, 
and the effective date of such rule or other guidance shall be con-
sidered timely if filed within 30 days of such effective date. 
(c) SIZE AND STATUS INTEGRITY.— 
(1) RECOVERY OF LOSS FROM MISREPRESENTATION.— 
(A) IN GENERAL.—In a case in which it is established that a 
business concern other than a small business concern, by misrepre-
sentation concerning the small business size and status of the 
business concern, willfully sought and received an award of a con-
tract, subcontract, cooperative agreement, cooperative research 
and development agreement, or grant that was set aside, reserved, 
or otherwise classified as intended for award to small business 
concerns, the United States, in addition to any other remedy avail-
able to the United States, shall recover from the business concern 
the amount that is equal to the amount expended by the United 
States on the contract, subcontract, cooperative agreement, coop-
erative research and development agreement, or grant. 
(B) DEEMED CERTIFICATIONS.—The following actions shall be 
deemed affirmative, willful, and intentional certifications of small 
business size and status: 
(i) Submission of a bid or proposal for a Federal contract, 
subcontract, cooperative agreement, cooperative research and 
development agreement, or grant that is reserved, set aside, 
or otherwise classified as intended for award to, small busi-
ness concerns. 
(ii) Submission of a bid or proposal for a Federal contract, 
subcontract, cooperative agreement, cooperative research and 
development agreement reserved, or grant that in any way en-
courages a Federal agency to classify the bid or proposal, if 
awarded, as an award to a small business concern. 
(iii) Registration on a Federal electronic database for the 
purpose of being considered for award of a Federal contract, 
subcontract, cooperative agreement, cooperative research and 
development agreement, or grant as a small business concern. 
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(C) CERTIFICATION
BY
SIGNATURE
OF
RESPONSIBLE
OFFI-
CIAL.— 
(i) IN GENERAL.—A solicitation, bid, or application for a 
Federal contract, subcontract, or grant shall contain a certifi-
cation concerning the small business size and status of a busi-
ness concern seeking the Federal contract, subcontract, or 
grant. 
(ii) CONTENT OF CERTIFICATION.—A certification that a 
business concern qualifies as a small business concern of the 
exact size and status claimed by the business concern for pur-
poses of bidding on a Federal contract or subcontract, or ap-
plying for a Federal grant, shall contain the signature of an 
authorized official on the same page on which the certification 
is contained. 
(D) REGULATIONS.—The Administrator shall promulgate regu-
lations to provide adequate protections to individuals and business 
concerns from liability under this paragraph in cases of uninten-
tional errors, technical malfunctions, and other similar situations. 
(2) ANNUAL CERTIFICATION.— 
(A) IN GENERAL.—A business certified as a small business con-
cern under this title and subtitle II shall annually certify its small 
business size and, if appropriate, its small business status, by 
means of a confirming entry on SBA’s Online Representations and 
Certifications Application database, or any successor to the data-
base. 
(B) REGULATIONS.—The Administrator, in consultation with 
the Inspector General and the Chief Counsel for Advocacy of SBA, 
shall promulgate regulations to ensure that— 
(i) no business concern continues to be certified as a small 
business concern on SBA’s Online Representations and Cer-
tifications Application database, or any successor to the data-
base, without fulfilling the requirements for annual certifi-
cation under this paragraph; and 
(ii) the requirements of this paragraph are implemented in 
a manner presenting the least possible regulatory burden on 
small business concerns. 
(3) POLICY ON PROSECUTIONS OF SMALL BUSINESS SIZE AND STA-
TUS FRAUD.—The Administrator, in consultation with the Attorney 
General, shall issue a Governmentwide policy on prosecution of small 
business size and status fraud, which shall direct Federal agencies to 
appropriately publicize the policy. 
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(d) COMPLIANCE GUIDE.—Pursuant to section 212(a) of the Small Busi-
ness Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 601 note, 
Public Law 104–121), the Administrator shall issue a compliance guide to 
assist business concerns in accurately determining their status as a small 
business concern. 
Chapter 103—Small Business 
Administration 
Subchapter I—Organization 
Sec. 
103101.
Establishment. 
103102.
Administrator. 
103103.
Deputy Administrator. 
103104.
Associate Administrators. 
103105.
Personnel. 
103106.
Small Business Investment Division. 
103107.
Office of Advocacy. 
103108.
Division of Program Certification and Eligibility. 
103109.
Office of International Trade. 
103110.
Office of Rural Affairs. 
103111.
Office of Women’s Business Ownership. 
103112.
Small Business and Agriculture Regulatory Enforcement Ombudsman; regional 
small business regulatory fairness boards. 
103113.
Office of Veterans Business Development. 
103114.
Task force on purchases from people who are blind or severely disabled. 
103115.
Advisory committees. 
103116.
Bureau of PCLP Oversight. 
103117.
Office of Hearings and Appeals. 
Subchapter II—Functions 
103201.
General powers. 
103202.
Financial management. 
103203.
Small business economic database. 
103204.
Small business computer security and education program. 
103205.
General policies governing the granting and denial of applications. 
103206.
Retention of records. 
103207.
Consultation and cooperation with other Federal agencies. 
103208.
Representation of status as small business concern. 
103209.
Criminal background checks. 
Subchapter I—Organization 
§ 103101. Establishment 
(a) IN GENERAL.—There is established to carry out the authorities com-
mitted to the Administrator under this title and other law an agency to be 
known as the Small Business Administration. 
(b) INDEPENDENT ESTABLISHMENT.—SBA shall be under the general di-
rection and supervision of the President and shall not be affiliated with or 
be within any other Federal agency. 
(c) OFFICES.—SBA’s principal office shall be located in the District of 
Columbia. The Administrator may establish such regional, district, and 
branch offices in other places in the United States as the Administrator 
may determine. 
§ 103102. Administrator 
(a) IN GENERAL.—The management of SBA shall be vested in an Admin-
istrator who shall be appointed from civilian life by the President, by and 
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with the advice and consent of the Senate, and who shall be a person of 
outstanding qualifications known to be familiar and sympathetic with small 
business needs and problems. 
(b) FULL-TIME POSITION.—The Administrator shall not engage in any 
business, vocation, or employment other than that of serving as Adminis-
trator. 
§ 103103. Deputy Administrator 
(a) IN GENERAL.—The President may appoint a Deputy Administrator 
of SBA, by and with the advice and consent of the Senate. 
(b) DUTIES.—The Deputy Administrator shall be Acting Administrator of 
SBA during the absence or disability of the Administrator or in the event 
of a vacancy in the office of Administrator. 
§ 103104. Associate Administrators 
(a) IN GENERAL.—The Administrator may appoint Associate Administra-
tors (including the Associate Administrator specified in section 103106 of 
this title) to assist in the execution of the functions vested in the Adminis-
trator. 
(b) ASSOCIATE ADMINISTRATOR FOR VETERANS BUSINESS DEVELOP-
MENT.— 
(1) IN
GENERAL.—One Associate Administrator appointed under 
subsection (a) shall be the Associate Administrator for Veterans Busi-
ness Development. 
(2) POSITION.—The Associate Administrator for Veterans Business 
Development shall be an appointee in the Senior Executive Service. 
(3) REPORTING.—The Associate Administrator for Veterans Busi-
ness Development shall report to and be responsible directly to the Ad-
ministrator. 
(4) DUTIES.—The Associate Administrator for Veterans Business 
Development shall administer the Office of Veterans Business Develop-
ment established under section 103113 of this title. 
(c) ASSOCIATE ADMINISTRATOR FOR MINORITY SMALL BUSINESS AND 
CAPITAL OWNERSHIP DEVELOPMENT.— 
(1) IN GENERAL.—One of the Associate Administrators shall be des-
ignated at the time of appointment as the Associate Administrator for 
Minority Small Business and Capital Ownership Development. 
(2) POSITION.—The Associate Administrator for Minority Small 
Business and Capital Ownership Development shall be an employee in 
the competitive service or a career appointee in the Senior Executive 
Service, and the position of Associate Administrator for Minority Small 
Business and Capital Ownership Development shall be a career re-
served position. 
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(3) DUTIES.— 
(A) FORMULATION AND COORDINATION OF POLICIES.—The As-
sociate Administrator for Minority Small Business and Capital 
Ownership Development shall be responsible for formulating and 
coordinating policies relating to Federal assistance to small busi-
ness concerns eligible for assistance under section 205104 of this 
title and small business concerns eligible to receive contracts under 
the business development program. 
(B) BUSINESS DEVELOPMENT PROGRAM.—The Associate Ad-
ministrator for Minority Small Business and Capital Ownership 
Development shall be responsible to the Administrator for the for-
mulation, execution, and management of the business development 
program (including the making of determinations under para-
graphs (8), (15), (16), and (17) of section 231101 of this title and 
sections 233110, 233112(a)(1), and 233118(g) of this title), under 
the supervision of the Administrator. 
(d) ASSOCIATE ADMINISTRATOR FOR SMALL BUSINESS DEVELOPMENT 
CENTERS.— 
(1) APPOINTMENT AND COMPENSATION.—The Administrator shall 
appoint an Associate Administrator for Small Business Development 
Centers who shall— 
(A) report to an official who is not more than 1 level below the 
Office of the Administrator; and 
(B) serve without regard to the provisions of title 5 governing 
appointments in the competitive service, and without regard to 
chapter 51 and subchapter III of chapter 53 of that title relating 
to classification and General Schedule pay rates, but at a rate not 
less than the rate of pay for a position classified above GS–15 
pursuant to section 5108 of title 5. 
(2) DUTIES.— 
(A) IN GENERAL.—The sole responsibility of the Associate Ad-
ministrator for Small Business Development Centers shall be to 
administer the small business development center program. 
(B) DUTIES INCLUDED.—Duties of the position shall include— 
(i) recommending the annual budget for the small business 
development center program; 
(ii) reviewing the annual budgets submitted by each appli-
cant under the small business development center program; 
(iii) establishing appropriate funding levels for applicants 
under the small business development center program; 
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(iv) selecting applicants to participate in the small business 
development center program; 
(v) implementing chapter 271; 
(vi) maintaining a clearinghouse to provide for the dissemi-
nation and exchange of information between small business 
development centers; and 
(vii) conducting audits of recipients of grants under chap-
ter 241. 
(3) CONSULTATION.— 
(A) IN GENERAL.—In carrying out the duties described in this 
subsection, the Associate Administrator for Small Business Devel-
opment Centers shall confer with and seek the advice of the Na-
tional Small Business Development Center Advisory Board and 
SBA officials in areas served by the small business development 
centers. 
(B) RESPONSIBILITY.—Notwithstanding subparagraph (A), the 
Associate Administrator shall be responsible for the management 
and administration of the program and shall not be subject to the 
approval or concurrence of SBA officials described in subpara-
graph (A). 
(e) ASSOCIATE ADMINISTRATOR FOR INTERNATIONAL TRADE.—One of 
the Associate Administrators shall be the Associate Administrator for Inter-
national Trade, who shall be the head of the Office of International Trade 
established under section 103109 of this title. 
(f) CHIEF HEARING OFFICER.—One of the Associate Administrators 
shall be the Chief Hearing Officer, who shall administer the Office of Hear-
ings and Appeals established under section 103117 of this title. 
§ 103105. Personnel 
(a) IN GENERAL.—The Administrator may, subject to the civil service 
and classification laws— 
(1) select, employ, appoint, and fix the compensation of such officers, 
employees, attorneys, and agents as are necessary to carry out this 
title; 
(2) define their authority and duties; and 
(3) pay the costs of qualification of certain of them as notaries pub-
lic. 
(b) INDIVIDUALS EMPLOYED TO RENDER TEMPORARY SERVICES
IN 
CONNECTION WITH A DISASTER.— 
(1) IN GENERAL.—The Administrator may pay the transportation 
expenses and per diem in lieu of subsistence expenses, in accordance 
with subchapter I of chapter 57 of title 5, for travel of any individual 
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employed by SBA to render temporary services not in excess of 6 
months in connection with a disaster from place of appointment to, and 
while at, the disaster area and any other temporary posts of duty and 
return on completion of the assignment. 
(2) EXTENSION OF TERM.—The Administrator may extend the six- 
month limitation under paragraph (1) for an additional 6 months if the 
Administrator determines that the extension is necessary to continue 
efficient disaster loan making activities. 
(c) EXPERTS AND CONSULTANTS.— 
(1) IN GENERAL.—To such extent as the Administrator finds nec-
essary to carry out this title, the Administrator may procure the tem-
porary (not in excess of 1 year) or intermittent services of experts or 
consultants (including stenographic reporting services) by contract or 
appointment. 
(2) INAPPLICABILITY OF OTHER LAW.—Service procured under para-
graph (1)— 
(A) shall be without regard to the civil service and classification 
laws; and 
(B) except in the case of stenographic reporting services by an 
organization, shall be without regard to section 6101 of title 41. 
(3) COMPENSATION.—An individual employed under paragraph 
(1)— 
(A) may be compensated at a rate not in excess of the daily 
equivalent of the maximum rate payable under section 5376 of 
title 5, including travel time; and 
(B) while away from the individual’s home or regular place of 
business, may be allowed travel expenses (including per diem in 
lieu of subsistence) as authorized by section 5703 of title 5. 
§ 103106. Small Business Investment Division 
(a) ESTABLISHMENT OF DIVISION.—There is established in SBA a divi-
sion to be known as the Small Business Investment Division. 
(b) ASSOCIATE ADMINISTRATOR.—The Small Business Investment Divi-
sion shall be headed by an Associate Administrator appointed by the Admin-
istrator. 
(c) COMPENSATION.—The Associate Administrator shall receive com-
pensation at the rate provided by law for other SBA Associate Administra-
tors. 
§ 103107. Office of Advocacy 
(a) DEFINITIONS.—In this section: 
(1) CHIEF COUNSEL.—The term ‘‘Chief Counsel’’ means the Chief 
Counsel for Advocacy appointed under subsection (c). 
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(2) OFFICE.—The term ‘‘Office’’ means the Office of Advocacy es-
tablished by subsection (b). 
(b) ESTABLISHMENT OF OFFICE.—There is established in SBA the Office 
of Advocacy. 
(c) CHIEF COUNSEL FOR ADVOCACY.—The management of the Office 
shall be vested in a Chief Counsel for Advocacy, who shall be appointed 
from civilian life by the President, by and with the advice and consent of 
the Senate. 
(d) PRIMARY FUNCTIONS.—The primary functions of the Chief Counsel 
shall be to— 
(1) examine the role of small business in the American economy and 
the contribution that small business can make in improving competi-
tion, encouraging economic and social mobility for all citizens, restrain-
ing inflation, spurring production, expanding employment opportuni-
ties, increasing productivity, promoting exports, stimulating innovation 
and entrepreneurship, and providing an avenue through which new and 
untested products and services can be brought to the marketplace; 
(2) assess the effectiveness of Federal subsidy and assistance pro-
grams for small business and the desirability of reducing the emphasis 
on such programs and increasing the emphasis on general assistance 
programs designed to benefit all small business concerns; 
(3)(A) measure the direct costs and other effects of government reg-
ulation on small business concerns; and 
(B) make legislative and nonlegislative proposals for eliminating ex-
cessive or unnecessary regulation of small business concerns; 
(4) determine the impact of the tax structure on small business con-
cerns and make legislative and other proposals for altering the tax 
structure to enable all small business concerns to realize their potential 
for contributing to the improvement of the Nation’s economic well- 
being; 
(5) study the ability of financial markets and institutions to meet 
small business credit needs and determine the impact of government 
demands for credit on small business concerns; 
(6) determine financial resource availability and recommend methods 
for delivery of financial assistance to minority enterprises, including 
methods for— 
(A) securing equity capital; 
(B) generating markets for goods and services; 
(C) providing effective business education, more effective man-
agement and technical assistance, and training; and 
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(D) providing assistance in complying with Federal, State, and 
local law; 
(7) evaluate the efforts of Federal agencies, business, and industry 
to assist minority business concerns; 
(8) make such recommendations as may be appropriate to assist the 
development and strengthening of minority and other small business 
concerns; 
(9)(A) recommend specific measures for creating an environment in 
which all businesses will have the opportunity to compete effectively 
and expand to their full potential; and 
(B) ascertain the common reasons, if any, for small business suc-
cesses and failures; 
(10)(A) determine the desirability of developing a set of rational, ob-
jective criteria to be used to define small business; and 
(B) develop such criteria, if appropriate; and 
(11)(A) evaluate the efforts of each Federal agency, and of private 
industry, to assist small business concerns owned and controlled by vet-
erans and small business concerns owned and controlled by service-dis-
abled veterans; 
(B) provide statistical information on the use of such programs by 
small business concerns owned and controlled by veterans and small 
business concerns owned and controlled by service-disabled veterans; 
and 
(C) make appropriate recommendations to the Administrator and to 
Congress to promote the establishment and growth of small business 
concerns owned and controlled by veterans and small business concerns 
owned and controlled by service-disabled veterans. 
(e) DUTIES TO BE PERFORMED ON A CONTINUING BASIS.— 
(1) IN GENERAL.—The Chief Counsel shall perform the duties de-
scribed in this subsection on a continuing basis. 
(2) COMPLAINTS, CRITICISMS, AND SUGGESTIONS.—The Chief Coun-
sel shall serve as a focal point for the receipt of complaints, criticisms, 
and suggestions concerning the policies and activities of SBA and any 
other Federal agency that affects small business concerns. 
(3) COUNSELING.—The Chief Counsel shall counsel small business 
concerns on how to resolve questions and problems concerning the rela-
tionship of the small business to the Federal Government. 
(4) PROPOSALS FOR CHANGE.—The Chief Counsel shall— 
(A) develop proposals for changes in the policies and activities 
of any Federal agency that will better fulfill the purposes of this 
subtitle and subtitle II; and 
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(B) communicate the proposals to the appropriate Federal agen-
cies. 
(5) REPRESENTATION OF VIEWS AND INTERESTS.—The Chief Coun-
sel shall represent the views and interests of small business concerns 
before other Federal agencies the policies and activities of which may 
affect small business. 
(6) DISSEMINATION OF INFORMATION.—The Chief Counsel shall en-
list the cooperation and assistance of public and private agencies, busi-
nesses, and other organizations in disseminating— 
(A) information about the programs and services provided by 
the Federal Government that are of benefit to small business con-
cerns; and 
(B) information on how small business concerns can participate 
in or make use of those programs and services. 
(7) REGULATORY ANALYSIS.—The Chief Counsel shall carry out the 
responsibilities of the Office under chapter 6 of title 5. 
(f) OUTREACH AND INPUT FROM SMALL BUSINESSES ON TRADE PRO-
MOTION AUTHORITY.— 
(1) DEFINITIONS.—In this subsection: 
(A) AGENCY.—The term ‘‘agency’’ has the meaning given the 
term in section 551 of title 5. 
(B) COVERED TRADE AGREEMENT.—The term ‘‘covered trade 
agreement’’ means a trade agreement that at any time on or after 
February 24, 2016, is being negotiated pursuant to section 103(b) 
of the Bipartisan Congressional Trade Priorities and Account-
ability Act of 2015 (19 U.S.C. 4202(b)). 
(C) WORKING GROUP.—The term ‘‘working group’’ means the 
interagency working group convened under paragraph (2)(A). 
(2) WORKING GROUP.— 
(A) IN GENERAL.—Not later than 30 days after the date on 
which the President submits the notification required under sec-
tion 105(a) of the Bipartisan Congressional Trade Priorities and 
Accountability Act of 2015 (19 U.S.C. 4204(a)), the Chief Counsel 
shall convene an interagency working group, which shall consist of 
an employee from each of the following agencies, as selected by the 
head of the agency or an official delegated by the head of the 
agency: 
(i) The Office of the United States Trade Representative. 
(ii) The Department of Commerce. 
(iii) The Department of Agriculture. 
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(iv) Any other agency that the Chief Counsel, in consulta-
tion with the United States Trade Representative, determines 
to be relevant with respect to the subject of the covered trade 
agreement. 
(B) VIEWS OF SMALL BUSINESSES.—Not later than 30 days 
after the date on which the Chief Counsel convenes the working 
group under subparagraph (A), the Chief Counsel shall identify a 
diverse group of small businesses, representatives of small busi-
nesses, or a combination thereof, to provide to the working group 
the views of small businesses in the manufacturing, services, and 
agriculture industries on the potential economic effects of the cov-
ered trade agreement. 
(3) REPORT.— 
(A) IN GENERAL.—Not later than 180 days after the date on 
which the Chief Counsel convenes the working group under para-
graph (2)(A), the Chief Counsel shall submit to the Committee on 
Small Business and Entrepreneurship and Committee on Finance 
of the Senate and the Committee on Small Business and Com-
mittee on Ways and Means of the House of Representatives a re-
port on the economic impacts of the covered trade agreement on 
small businesses. 
(B) CONTENTS.—The report shall— 
(i) identify the most important priorities, opportunities, 
and challenges to various industries from the covered trade 
agreement; 
(ii) assess the impact for new small businesses to start ex-
porting, or increase their exports, to markets in countries 
that are parties to the covered trade agreement; 
(iii) analyze the competitive position of industries likely to 
be significantly affected by the covered trade agreement; 
(iv) identify— 
(I) any State-owned enterprises in each country par-
ticipating in negotiations for the covered trade agree-
ment that could pose a threat to small businesses; and 
(II) any steps to take to create a level playing field for 
those small businesses; 
(v) identify any rule of an agency that should be modified 
to become compliant with the covered trade agreement; and 
(vi) include an overview of the methodology used to develop 
the report, including the number of small business partici-
pants by industry, how those small businesses were selected, 
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and any other factors that the Chief Counsel considers appro-
priate. 
(C) DELAYED SUBMISSION.—To ensure that negotiations for 
the covered trade agreement are not disrupted, the President may 
require that the Chief Counsel delay submission of the report until 
after the negotiations for the covered trade agreement are con-
cluded, so long as the delay allows the Chief Counsel to submit 
the report to Congress not later than 45 days before the Senate 
or the House of Representatives acts to approve or disapprove the 
covered trade agreement. 
(D) AVOIDANCE OF DUPLICATION.—The Chief Counsel shall, to 
the extent practicable, coordinate the submission of the report 
with the United States International Trade Commission, the 
United States Trade Representative, other agencies, and trade ad-
visory committees to avoid unnecessary duplication of reporting re-
quirements. 
(g) RURAL TOURISM TRAINING PROGRAM.—In conjunction with the Of-
fice of Rural Affairs and appropriate personnel designated by each SBA dis-
trict office, the Chief Counsel shall conduct training sessions on the types 
of Federal assistance available for the development of rural small business 
concerns engaged in tourism and tourism-related activities. 
(h) POWERS.—In carrying out this section, the Chief Counsel may— 
(1) employ and fix the compensation of such additional staff per-
sonnel as the Chief Counsel considers necessary, without regard to the 
provisions of title 5, governing appointments in the competitive service, 
and without regard to chapter 51 or subchapter III of chapter 53 of 
that title relating to classification and General Schedule pay rates but 
at rates not in excess of the lowest rate for GS–15 of the General 
Schedule, except that not more than 14 staff personnel at any 1 time 
may be employed and compensated at a rate not in excess of GS–15, 
step 10, of the General Schedule; 
(2) procure temporary and intermittent services to the same extent 
as is authorized by section 3109 of title 5; 
(3) consult— 
(A) with experts and authorities in the fields of small business 
investment, venture capital, and investment and commercial bank-
ing and with other comparable lending institutions involved in the 
financing of business; 
(B) with individuals with regulatory, legal, economic, or finan-
cial expertise, including members of the academic community; and 
(C) with individuals who generally represent the public interest; 
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(4)(A) use the services of the National Advisory Council established 
under section 103115 of this title; and 
(B) in accordance with that section, appoint such other advisory 
boards or committees as the Chief Counsel considers reasonably appro-
priate and necessary to carry out this section; and 
(5) hold hearings and sit and act at such times and places as the 
Chief Counsel considers advisable. 
(i) ASSISTANCE OF FEDERAL AGENCIES.—Each Federal agency shall fur-
nish the Chief Counsel such reports and other information as the Chief 
Counsel considers necessary to carry out this section. 
(j) ADMINISTRATIVE OPERATIONS.—The Administrator shall— 
(1) provide the Office with appropriate and adequate office space at 
central office and field office locations, together with such equipment, 
operating budget, and communications facilities and services as are 
necessary; and 
(2) provide necessary maintenance services for the central office and 
field offices and the equipment and facilities located in the offices. 
(k) REPORTS.—The Chief Counsel may from time to time prepare and 
publish such reports as the Chief Counsel considers appropriate. 
§ 103108. Division of Program Certification and Eligibility 
(a) DEFINITIONS.—In this section: 
(1) ASSOCIATE
ADMINISTRATOR.—The term ‘‘Associate Adminis-
trator’’ means the Associate Administrator for Minority Small Business 
and Capital Ownership Development. 
(2) DIRECTOR.—The term ‘‘Director’’ means the Director of the Di-
vision. 
(3) DIVISION.—The term ‘‘Division’’ means the Division of Program 
Certification and Eligibility established by subsection (b). 
(b) ESTABLISHMENT OF DIVISION.—There is established, in the Office of 
Minority Small Business and Capital Ownership Development, the Division 
of Program Certification and Eligibility. 
(c) DIRECTOR.—The Division shall be headed by a Director, who shall 
report directly to the Associate Administrator. 
(d) FIELD OFFICES.—The Director shall establish field offices within 
such SBA regional offices as are necessary to perform efficiently the func-
tions and responsibilities of the Director. 
(e) DUTIES.—The duties of the Director are— 
(1) to receive, review, and evaluate applications for certification 
under the business development program; 
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(2) to advise a business development program applicant within 15 
days after receipt of an application whether the application is complete 
and suitable for evaluation and, if not, what matters must be rectified; 
(3) to make recommendations on such applications to the Associate 
Administrator; 
(4) to review and evaluate financial statements and other submis-
sions from small business concerns participating in the business devel-
opment program to ascertain continued eligibility to receive sub-
contracts under the business development program; 
(5) to make a request for the initiation of termination or graduation 
proceedings, as appropriate, to the Associate Administrator; 
(6) to make recommendations to the Associate Administrator con-
cerning protests from applicants that are denied admission to the busi-
ness development program; 
(7) to decide protests regarding the status of a small business con-
cern as a small business concern owned and controlled by socially and 
economically disadvantaged individuals for purposes of any program or 
activity conducted under chapter 243 or any other provision of Federal 
law that refers to that chapter for a definition of eligibility for any pro-
gram; and 
(8) to implement such policy directives as are issued by the Associate 
Administrator under section 233126 of this title regarding, among 
other things, the geographic distribution of small business concerns to 
be admitted to the business development program and the industrial 
makeup of those small business concerns. 
(f) DECISIONS ON PROTESTS.— 
(1) IN GENERAL.—A decision under subsection (e)(7) shall— 
(A) be made available to the protestor, the protested party, the 
contracting officer (if not the protestor), and all other parties to 
the proceeding, and published in full text; and 
(B) include findings of fact and conclusions of law, with specific 
reasons supporting the findings or conclusions, on each material 
issue of fact and law of decisional significance regarding the dis-
position of the protest. 
(2) PRECEDENTIAL VALUE OF PRIOR DECISIONS.—A decision under 
subsection (e)(7) that was issued before September 4, 1992, shall not 
have value as precedent in deciding any subsequent protest until the 
decision is published in full text. 
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§ 103109. Office of International Trade 
(a) ESTABLISHMENT OF OFFICE.—There is established in SBA the Office 
of International Trade, which shall implement the programs under chapter 
277 for the primary purposes of increasing— 
(1) the number of small business concerns that export; and 
(2) the volume of exports by small business concerns. 
(b) ASSOCIATE ADMINISTRATOR.—The head of the Office shall be the As-
sociate Administrator for International Trade, who shall be responsible to 
the Administrator. 
§ 103110. Office of Rural Affairs 
(a) DEFINITION OF OFFICE.—In this section, the term ‘‘Office’’ means 
the Office of Rural Affairs. 
(b) ESTABLISHMENT OF OFFICE.—There is established in SBA the Office 
of Rural Affairs. 
(c) DIRECTOR.—The Office shall be headed by a director appointed by 
the Administrator. 
(d) FUNCTIONS.—The Office shall— 
(1) strive to achieve an equitable distribution of the financial assist-
ance available from SBA for small business concerns located in rural 
areas; 
(2) to the extent practicable, compile annual statistics on rural areas, 
including statistics concerning the population, poverty, job creation and 
retention, unemployment, business failures, and business startups; 
(3) provide information to industries, organizations, and State and 
local governments concerning the assistance available to rural small 
business concerns through SBA and through other Federal agencies; 
(4) provide information to industries, organizations, educational in-
stitutions, and State and local governments concerning programs ad-
ministered by private organizations, educational institutions, and Fed-
eral, State, and local governments that improve the economic opportu-
nities of rural citizens; and 
(5) work with the United States National Tourism Organization to 
assist small business concerns in rural areas with tourism promotion 
and development. 
§ 103111. Office of Women’s Business Ownership 
(a) DEFINITIONS.—In this section: 
(1) ASSISTANT
ADMINISTRATOR.—The term ‘‘Assistant Adminis-
trator’’ means the Assistant Administrator appointed under subsection 
(c). 
(2) OFFICE.—The term ‘‘Office’’ means the Office of Women’s Busi-
ness Ownership established by subsection (b). 
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(b) ESTABLISHMENT OF OFFICE.—There is established in SBA the Office 
of Women’s Business Ownership. 
(c) ASSISTANT ADMINISTRATOR.— 
(1) IN GENERAL.—The Office shall be administered by an Assistant 
Administrator, who shall be appointed by the Administrator. 
(2) QUALIFICATION.—The position of Assistant Administrator shall 
be a Senior Executive Service position under section 3132(a)(2) of title 
5. The Assistant Administrator shall serve as a noncareer appointee (as 
defined in section 3132(a)(7) of that title). 
(d) DUTIES.—The Assistant Administrator shall— 
(1) administer SBA’s programs for the development of women’s busi-
ness enterprises (as defined in section 403101 of this title); 
(2) administer the programs and services of the Office to assist 
women entrepreneurs in the areas of— 
(A) starting and operating a small business concern; 
(B) development of management and technical skills; 
(C) seeking Federal procurement opportunities; and 
(D) increasing the opportunity for access to capital; 
(3) administer and manage the women’s business center program; 
(4) recommend the annual administrative and program budgets for 
the Office (including the budget for the women’s business center pro-
gram); 
(5) establish appropriate funding levels for the Office; 
(6) review the annual budgets submitted by each applicant for the 
women’s business center program; 
(7) select applicants to participate in the women’s business center 
program; 
(8) implement chapter 273; 
(9) maintain a clearinghouse to provide for the dissemination and ex-
change of information between women’s business centers; 
(10) serve as the vice chairperson of the Interagency Committee on 
Women’s Business Enterprise; 
(11) serve as liaison for the National Women’s Business Council; 
and 
(12) advise the Administrator on appointments to the Women’s 
Business Council. 
(e) CONSULTATION.—In carrying out the duties described in paragraphs 
(2) to (12) of subsection (d), the Assistant Administrator shall confer with 
and seek the advice of the SBA officials in areas served by the women’s 
business centers. 
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§ 103112. Small Business and Agriculture Regulatory En-
forcement Ombudsman; regional small business 
regulatory fairness boards 
(a) DEFINITIONS.—In this section: 
(1) BOARD.—The term ‘‘Board’’ means a regional small business 
regulatory fairness board established under subsection (e). 
(2) OMBUDSMAN.—The term ‘‘Ombudsman’’ means the Small Busi-
ness and Agriculture Regulatory Enforcement Ombudsman designated 
under subsection (b). 
(b) SMALL BUSINESS AND AGRICULTURE REGULATORY ENFORCEMENT 
OMBUDSMAN.—The Administrator shall designate a Small Business and Ag-
riculture Regulatory Enforcement Ombudsman, who shall report directly to 
the Administrator, using SBA personnel to the extent practicable. 
(c) DUTIES.—The Ombudsman shall— 
(1) work with each Federal agency with regulatory authority over 
small business concerns to ensure that small business concerns that re-
ceive or are subject to an audit, on-site inspection, compliance assist-
ance effort, or other enforcement-related communication or contact by 
Federal agency personnel are provided with a means by which to com-
ment on the enforcement activity conducted by those personnel; 
(2)(A) establish means by which to— 
(i) receive comments from a small business concern regarding 
actions by Federal agency employees conducting compliance or en-
forcement activities with respect to the small business concern; 
and 
(ii) refer comments to the Inspector General of the Federal 
agency in the appropriate circumstances; and 
(B) otherwise seek to maintain the identity of the person and small 
business concern making such comments on a confidential basis to the 
same extent as employee identities are protected under section 7 of the 
Inspector General Act of 1978 (5 U.S.C. App.); 
(3) based on substantiated comments received from small business 
concerns and the Boards, after having provided each Federal agency 
described in paragraph (1) an opportunity to comment on drafts of the 
report, annually submit to Congress and those Federal agencies a re-
port that— 
(A) evaluates the enforcement activities of Federal agency per-
sonnel; and 
(B) includes— 
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(i) a rating of the responsiveness to small business con-
cerns of the various regional and program offices of each such 
Federal agency; and 
(ii) a section in which any such Federal agency may make 
such comments made by the Federal agency to drafts of the 
report as are not addressed by the Ombudsman in the final 
draft; and 
(4) coordinate, and annually submit to the Administrator and to the 
heads of Federal agencies described in paragraph (1) a report on, the 
activities, findings, and recommendations of the Boards. 
(d) FEDERAL AGENCIES OTHER THAN SBA.— 
(1) ACTIONS TO ENSURE COMPLIANCE.—Federal agencies other than 
SBA shall assist the Ombudsman and take actions as necessary to en-
sure compliance with this section. 
(2) EFFECT OF SECTION.—Nothing in this section replaces or dimin-
ishes the activities of any ombudsman or similar office in any Federal 
agency. 
(e) REGIONAL SMALL BUSINESS REGULATORY FAIRNESS BOARDS.— 
(1) ESTABLISHMENT.—The Administrator shall establish a small 
business regulatory fairness board in each SBA regional office. 
(2) MEMBERSHIP.— 
(A) IN GENERAL.—A Board shall consist of 5 members who are 
owners, operators, or officers of small business concerns, ap-
pointed by the Administrator, after receiving the recommendations 
of the chair and ranking minority member of the Committee on 
Small Business and Entrepreneurship of the Senate and the Com-
mittee on Small Business of the House of Representatives. 
(B) POLITICAL AFFILIATION.—Not more than 3 of the members 
of a Board shall be of the same political party. 
(C) GOVERNMENT OFFICERS OR EMPLOYEES.—No member of a 
Board shall be an officer or employee of the Federal Government 
in the executive branch or in Congress. 
(D) TERM.—A member of a Board shall serve at the pleasure 
of the Administrator for a term of 3 years or less. 
(E) COMPENSATION.—A member of a Board shall serve without 
compensation, except that a member shall be allowed travel ex-
penses, including per diem in lieu of subsistence, at rates author-
ized for employees of agencies under subchapter I of chapter 57 
of title 5 while away from the home or regular place of business 
of the member in the performance of services for the Board. 
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(3) CHAIR.—The Administrator shall select a chair from among the 
members of a Board, who shall serve at the pleasure of the Adminis-
trator for not more than 1 year as chair. 
(4) QUORUM.—A majority of the members of a Board shall con-
stitute a quorum for the conduct of business, but a lesser number may 
hold hearings. 
(5) DUTIES.—A Board shall— 
(A) meet at least annually to advise the Ombudsman on matters 
of concern to small business concerns relating to the enforcement 
activities of Federal agencies; 
(B) report to the Ombudsman on substantiated instances of ex-
cessive enforcement actions of Federal agencies against small busi-
ness concerns, including any findings or recommendations of the 
Board as to Federal agency enforcement policy or practice; and 
(C) prior to publication, provide comment on the annual report 
of the Ombudsman prepared under subsection (c). 
(6) POWERS.— 
(A) HEARINGS; COLLECTION OF INFORMATION.—A Board may 
hold hearings and collect information as appropriate for carrying 
out this section. 
(B) MAIL.—A Board may use the United States mails in the 
same manner and under the same conditions as other Federal 
agencies. 
(C) ACCEPTANCE OF DONATIONS.—A Board may accept dona-
tions of services necessary to conduct its business, so long as the 
donations and their sources are disclosed by the Board. 
§ 103113. Office of Veterans Business Development 
(a) DEFINITION OF ASSOCIATE ADMINISTRATOR.—In this section, the 
term ‘‘Associate Administrator’’ means the Associate Administrator for Vet-
erans Business Development under section 103104(b) of this title. 
(b) ESTABLISHMENT OF OFFICE.—There is established in SBA the Office 
of Veterans Business Development, which shall be administered by the Asso-
ciate Administrator. 
(c) DUTIES.—The Associate Administrator— 
(1) shall be responsible for the formulation, execution, and promotion 
of SBA policies and programs that provide assistance to small business 
concerns owned and controlled by veterans and small business concerns 
owned and controlled by service-disabled veterans; and 
(2) shall act as an ombudsman for full consideration of veterans in 
all SBA programs. 
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§ 103114. Task force on purchases from people who are 
blind or severely disabled 
(a) ESTABLISHMENT OF TASK FORCE.—There is established in SBA a 
task force on purchases from people who are blind or severely disabled. 
(b) MEMBERSHIP.—The task force shall consist of 1 representative of the 
small business community appointed by the Administrator and 1 individual 
knowledgeable in the affairs of or experienced in the work of sheltered work-
shops appointed by the Executive Director of the Committee for Purchase 
from People Who Are Blind or Severely Disabled established under section 
8502 of title 41. 
(c) DUTIES.—The task force shall meet at least once every 6 months for 
the purpose of— 
(1) reviewing the award of contracts under section 251103 of this 
title; and 
(2) recommending to the Administrator such administrative or statu-
tory changes as the task force considers appropriate. 
§ 103115. Advisory committees 
(a) IN GENERAL.—The Administrator shall— 
(1) establish such advisory committees as are necessary to achieve 
the purposes of this subtitle and subtitles II and III; and 
(2) call meetings of the advisory committees from time to time. 
(b) EXPENSES.—The Administrator shall— 
(1) pay the transportation expenses and a per diem allowance in ac-
cordance with section 5703 of title 5 to a member of an advisory com-
mittee for travel and subsistence expenses incurred at the request of 
the Administrator in connection with travel to points more than 50 
miles distant from the home of the member in attending a meeting of 
the advisory committee; and 
(2) rent temporarily, within the District of Columbia or elsewhere, 
such hotel or other accommodations as are needed to facilitate the con-
duct of meetings of an advisory committee. 
§ 103116. Bureau of PCLP Oversight 
(a) ESTABLISHMENT OF BUREAU.—There is established in SBA the Bu-
reau of PCLP Oversight. 
(b) PURPOSE.—The Bureau of PCLP Oversight shall carry out such 
functions of the Administrator under section 331108(c) of this title as the 
Administrator may designate. 
§ 103117. Office of Hearings and Appeals 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—There is established in the SBA an Office of 
Hearings and Appeals (referred to in this section as the ‘‘Office’’). 
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(2) OFFICE INCLUDED.—There shall be included within the Office 
the office of SBA that handles requests under section 552 of title 5 
and maintains records under section 552a of that title. 
(3) DUTIES.—The Office shall decide matters relating to program 
decisions of the Administrator— 
(A) for which an Act of Congress requires a hearing on the 
record; or 
(B) that the Administrator by regulation designates for hearing. 
(4) JURISDICTION.— 
(A) IN GENERAL.—Except as provided in subparagraph (B), the 
Office shall hear appeals of agency actions under or pursuant to 
this subtitle, subtitles II and III of this title, and title 13 of the 
Code of Federal Regulations, and shall hear such other matters 
as the Administrator may determine appropriate. 
(B) EXCEPTION.—The Office shall not adjudicate disputes that 
require a hearing on the record, except disputes pertaining to the 
small business programs described in this subtitle and subtitle II 
of this title. 
(5) ASSOCIATE ADMINISTRATOR.—The head of the Office shall be 
the Chief Hearing Officer appointed under section 103104(f) of this 
title, who shall be responsible to the Administrator. 
(b) CHIEF HEARING OFFICER.— 
(1) QUALIFICATIONS.—The Chief Hearing Officer shall be— 
(A) a career appointee in the Senior Executive Service; and 
(B) an attorney licensed by a State, the District of Columbia, 
or a territory (including a possession) of the United States. 
(2) DUTIES.—The Chief Hearing Officer shall be responsible for the 
operation and management of the Office. 
(3) ALTERNATIVE DISPUTE RESOLUTION.—The Chief Hearing Offi-
cer may assign a matter for mediation or other means of alternative 
dispute resolution. 
(c) HEARING OFFICERS.— 
(1) IN GENERAL.—The Chief Hearing Officer shall appoint hearing 
officers to carry out the duties described in subsection (a)(3). 
(2) QUALIFICATIONS.—A hearing officer shall be an attorney li-
censed by a State, the District of Columbia, or a territory (including 
a possession) of the United States. 
(3) STATUS.—A hearing officer appointed under paragraph (1)— 
(A) shall serve in the excepted service as an employee of SBA 
under section 2103 of title 5 and under the supervision of the 
Chief Hearing Officer; 
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(B) shall be classified at a position to which section 5376 of 
title 5 applies; and 
(C) shall be compensated at a rate not exceeding the maximum 
rate payable under that section. 
(4) AUTHORITY; POWERS.—Notwithstanding section 556(b) of title 
5— 
(A) a hearing officer may hear cases arising under section 554 
of that title; 
(B) a hearing officer shall have the powers described in section 
556(c) of that title; and 
(C) the relevant provisions of subchapter II of chapter 5 of that 
title (except for section 556(b) of that title) shall apply to a hear-
ing officer. 
Subchapter II—Functions 
§ 103201. General powers 
(a) SEAL.—The Administrator shall have power to adopt, alter, and use 
a seal, which shall be judicially noticed. 
(b) SERVICES AND FACILITIES.—At the request of the Administrator, the 
head of any Federal agency or of the Government Accountability Office or 
Postal Service may provide to the Administrator (on a reimbursable or non-
reimbursable basis) information, services, facilities (including any field serv-
ice of the Federal agency), officers, and employees of the Federal agency 
to assist in carrying out this title or any other law under which the Admin-
istrator provides assistance to small business concerns. 
(c) COURT PROCEEDINGS.—The Administrator may sue and be sued in 
any court of record of a State having general jurisdiction, or in any United 
States district court, and jurisdiction is conferred on a United States dis-
trict court to determine such controversies without regard to the amount in 
controversy; but no attachment, injunction, garnishment, or other similar 
process, mesne or final, shall be issued against the Administrator or SBA 
property. 
(d) LIMITATION ON ADVERTISING REQUIREMENT.—Section 6101 of title 
41 shall not apply to a contract of hazard insurance or a purchase or con-
tract for a service or supply on account of property obtained by the Admin-
istrator as a result of a loan made under this subtitle or subtitle II or III 
if the premium for the insurance or the amount of the purchase or contract 
does not exceed $1,000. 
(e) REGULATIONS.—The Administrator may prescribe such regulations as 
the Administrator considers necessary to carry out the authority vested in 
the Administrator under this subtitle and subtitles II and III. 
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(f) ACCEPTANCE
OF SERVICES
AND FACILITIES.—The Administrator 
may— 
(1) accept the services and facilities of Federal, State, and local 
agencies and groups, both public and private; and 
(2) use such gratuitous services and facilities as may from time to 
time be necessary to further the objectives of the disaster assistance 
programs. 
(g) INVESTIGATIONS.— 
(1) IN GENERAL.—The Administrator may make such investigations 
as the Administrator considers necessary to determine whether a recipi-
ent of or participant in assistance under this subtitle or subtitle II or 
III or any other person has engaged or is about to engage in any act 
or practice that constitutes or will constitute a violation of any provi-
sion of this subtitle or subtitle II or III (including a regulation or order 
issued under this subtitle or subtitle II or III). 
(2) STATEMENTS.—The Administrator shall permit any person to 
file with the Administrator a statement in writing, under oath or other-
wise as the Administrator shall determine, as to all the facts and cir-
cumstances concerning a matter to be investigated. 
(3) POWERS.—For the purpose of any investigation, the Adminis-
trator may administer oaths and affirmations, subpoena witnesses, 
compel the attendance of witnesses, take evidence, and require the pro-
duction of any records that are relevant to the inquiry. Attendance of 
witnesses and the production of any such records may be required from 
any place in the United States. 
(4) CONTUMACY OR REFUSAL TO OBEY.— 
(A) IN GENERAL.—In case of contumacy by, or refusal to obey 
a subpoena issued to, any person (including a recipient or partici-
pant), the Administrator may invoke the aid of any court of the 
United States within the jurisdiction of which an investigation or 
proceeding is carried on, or in which the person resides or carries 
on business, in requiring the attendance and testimony of wit-
nesses and the production of records, and the court may issue an 
order requiring the person to appear before the Administrator, to 
produce records, if so ordered, or to give testimony touching the 
matter under investigation. 
(B) FAILURE TO OBEY.—A failure to obey an order under sub-
paragraph (A) may be punished by the court as a contempt of 
court, for which purpose process may be served in any judicial dis-
trict of which the person is an inhabitant or in which the person 
may be found. 
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(h) EXAMINATION AND REVIEW FEES.— 
(1) IN GENERAL.—The Administrator may require a lender author-
ized to make loans under the general business loan program, the dis-
aster loan program, the private disaster assistance program, the inter-
mediary lending pilot program, or the microloan program to pay exam-
ination and review fees. 
(2) USE.—Fees collected under paragraph (1) shall be deposited in 
the account for salaries and expenses of the Administrator and shall 
be available for the costs of examinations, reviews, and other lender 
oversight activities. 
(i) LOAN REQUIREMENTS RELATING TO ASSISTANCE PROVIDED TO LOAN 
APPLICANTS, NONEMPLOYMENT OF PERSONS ASSOCIATED WITH SBA, AND 
LOAN APPLICATIONS.—No loan shall be made or equipment, facilities, or 
services furnished by the Administrator under this subtitle or subtitle II or 
III to any business concern unless the owners, partners, or officers of the 
business concern— 
(1) certify to the Administrator— 
(A) the names of any attorneys, agents, or other persons en-
gaged by or on behalf of the business concern for the purpose of 
expediting applications made to the Administrator for assistance 
of any sort; and 
(B) the amount of fees paid or to be paid to any such persons; 
(2) execute an agreement binding the business concern, for a period 
of 2 years after any assistance is rendered by the Administrator to the 
business concern, to refrain from employing, tendering any office or 
employment to, or retaining for professional services any individual 
who, on the date on which any part of the assistance was rendered, 
or within 1 year prior to that date, served as an officer, attorney, 
agent, or employee of the Administrator occupying a position or engag-
ing in an activity that, as determined by the Administrator, involves 
the exercise of discretion with respect to the granting of assistance 
under this subtitle or subtitle II or III; and 
(3) furnish— 
(A) the names of lending institutions to which the business con-
cern has applied for a loan; and 
(B) the date, amount, terms, and proof of refusal of any loan. 
(j) AUTHORITY RELATING TO TRANSFER OF FUNCTIONS, POWERS, AND 
DUTIES.—The President may— 
(1) transfer to the Administrator any function, power, or duty of any 
Federal agency that relates primarily to small business problems; and 
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(2) in connection with the transfer, provide for appropriate transfers 
of records, property, necessary personnel, and unexpended balances of 
appropriations and other funds available to the Federal agency from 
which the transfer is made. 
(k) FAIR CHARGES; RECOVERY OF DIRECT COSTS.—To the fullest extent 
that the Administrator considers practicable, the Administrator shall— 
(1) make a fair charge for the use of Government-owned property; 
and 
(2) make and let contracts on a basis that will result in a recovery 
of the direct costs incurred by the Administrator. 
(l) NONDUPLICATION OF WORK OR ACTIVITY.—The Administrator shall 
not duplicate the work or activity of any other Federal agency unless such 
work or activity is expressly provided for in this subtitle or subtitle II or 
III. 
(m) SAFE DEPOSIT BOX RENTALS.—Subsections (a) and (b) of section 
3324 of title 31 shall not apply to prepayments of rentals made by the Ad-
ministrator on safe deposit boxes used by the Administrator for the safe-
guarding of instruments held as security for loans or for the safeguarding 
of other documents. 
(n) NONDISCRIMINATION.—In carrying out the programs administered by 
the Administrator, the Administrator shall not discriminate on the basis of 
sex or marital status against any small business concern or other person 
applying for or receiving assistance from SBA. 
(o) SPECIAL CONSIDERATION TO VETERANS.—In carrying out the pro-
grams administered by the Administrator, the Administrator shall give spe-
cial consideration to veterans and their survivors or dependents. 
(p) PROHIBITION OF USE OF FUNDS FOR INDIVIDUALS NOT LAWFULLY 
WITHIN UNITED STATES.—None of the funds made available under this 
subtitle or subtitle II or III may be used to provide any direct benefit or 
assistance to any individual in the United States if the Administrator or the 
official to which the funds are made available receives notification that the 
individual is not lawfully within the United States. 
(q) OBSCENE PRODUCTS
AND SERVICES.—Notwithstanding any other 
provision of law, the Administrator shall not provide any financial or other 
assistance to any business concern or other person engaged in the produc-
tion or distribution of any product or service that has been determined by 
a court of competent jurisdiction to be obscene. 
(r) GIFTS.—In carrying out the functions of the Administrator under this 
subtitle and subtitles II and III and to carry out the activities authorized 
by chapter 403, the Administrator may— 
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(1) accept, in the name of the Administrator, and employ or dispose 
of in furtherance of the purposes of this subtitle or subtitle II or III, 
any money or property, real, personal, or mixed, tangible, or intangible, 
received by gift, devise, bequest, or otherwise; and 
(2) accept gratuitous services and facilities. 
§ 103202. Financial management 
(a) ACCOUNTS.— 
(1) IN GENERAL.—All repayments of loans, debentures, payments of 
interest, and other receipts arising out of transactions entered into by 
the Administrator shall be deposited in appropriate accounts as deter-
mined by the Administrator. 
(2) BUDGETS.—Business-type budgets for each of the accounts re-
ferred to in paragraph (1) shall be— 
(A) submitted to the Committee on Appropriations and Com-
mittee on Small Business and Entrepreneurship of the Senate and 
the Committee on Appropriations and Committee on Small Busi-
ness of the House of Representatives; and 
(B) enacted in the manner prescribed by sections 9103 and 
9104 of title 31 for wholly owned Government corporations. 
(3) REPORTS.—As soon as possible after the beginning of each cal-
endar quarter, the Administrator shall submit to the Committee on Ap-
propriations and Committee on Small Business and Entrepreneurship 
of the Senate and the Committee on Appropriations and Committee on 
Small Business of the House of Representatives a report that describes 
the status of each of the accounts referred to in paragraph (1). 
(4) ISSUANCE OF NOTES.— 
(A) IN GENERAL.—The Administrator may issue notes to the 
Secretary of the Treasury for the purpose of obtaining funds nec-
essary for discharging obligations under, and for authorized ex-
penditures out of, the accounts referred to in paragraph (1). 
(B) FORM.—Notes issued under subparagraph (A) shall be in 
such form and denominations, have such maturities, and be sub-
ject to such terms and conditions as the Administrator may pre-
scribe with the approval of the Secretary of the Treasury. 
(C) INTEREST.—Notes issued under subparagraph (A) shall 
bear interest at a rate fixed by the Secretary of the Treasury, tak-
ing into consideration the current average market yield of out-
standing marketable obligations of the United States having matu-
rities comparable to those of the notes issued under subparagraph 
(A). 
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(D) PURCHASE BY THE SECRETARY OF THE TREASURY.—The 
Secretary of the Treasury shall purchase any SBA notes issued 
under subparagraph (A), and for that purpose the Secretary of the 
Treasury may use as a public debt transaction the proceeds from 
the sale of any securities issued under chapter 31 of title 31, and 
the purposes for which such securities may be issued under that 
chapter are extended to include the purchase of notes issued under 
subparagraph (A). 
(E) TREATMENT AS PUBLIC DEBT TRANSACTIONS.—All redemp-
tions, purchases, and sales by the Secretary of the Treasury of 
notes issued under subparagraph (A) shall be treated as public 
debt transactions of the United States. 
(F) BORROWING AUTHORITY SUBJECT TO AVAILABILITY OF AP-
PROPRIATIONS.—All borrowing authority contained in this para-
graph shall be effective only to such extent or in such amounts 
as are provided in advance in appropriation Acts. 
(5) UNNEEDED AMOUNTS.—Amounts in an account referred to in 
paragraph (1) that are not needed for current operations may be paid 
into miscellaneous receipts of the Treasury. 
(6) INTEREST.— 
(A) ACTUAL
INTEREST
COLLECTED.—Following the close of 
each fiscal year, the Administrator shall pay into the miscellaneous 
receipts of the United States Treasury the actual interest that 
SBA collects during that fiscal year on all financings made under 
subtitle II. 
(B) INTEREST RECEIVED ON FINANCING FUNCTIONS.— 
(i) IN GENERAL.—Except on loan disbursements on which 
interest is paid under subparagraph (A), following the close 
of each fiscal year, the Administrator shall pay into miscella-
neous receipts of the Treasury interest received by SBA on 
financing functions performed under this subtitle, subtitle II, 
and divisions B and D of subtitle III if the capital used to 
perform those functions originates from appropriated funds. 
(ii) TREATMENT.—Payments under clause (i) shall be 
treated by the Department of the Treasury as interest in-
come, not as retirement of indebtedness. 
(7) CONTRIBUTIONS TO EMPLOYEES’ COMPENSATION FUNDS.— 
(A) IN GENERAL.—The Administrator shall contribute to the 
employees’ compensation fund, on the basis of annual billings as 
determined by the Secretary of Labor, for the benefit payments 
made from the fund on account of employees engaged in carrying 
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out functions financed under the accounts described in paragraph 
(1). 
(B) STATEMENT OF COST.—The annual billings shall include a 
statement of the fair portion of the cost of the administration of 
the employees’ compensation fund, which shall be paid by the Ad-
ministrator into the Treasury as miscellaneous receipts. 
(b) FINANCIAL MANAGEMENT POWERS.— 
(1) DISPOSITION OF EVIDENCE OF DEBT, CONTRACT, CLAIM, PER-
SONAL PROPERTY, OR SECURITY.—Under regulations prescribed by the 
Administrator, the Administrator may— 
(A) assign or sell at public or private sale, or otherwise dispose 
of for cash or credit, in the discretion of the Administrator and 
on such terms and conditions and for such consideration as the 
Administrator determines to be reasonable, any evidence of debt, 
contract, claim, personal property, or security assigned to or held 
by the Administrator in connection with the payment of loans 
granted under subtitle II or III; and 
(B) collect or compromise all obligations assigned to or held by 
the Administrator and all legal or equitable rights accruing to the 
Administrator in connection with the payment of such loans until 
such time as such obligations may be referred to the Attorney 
General for suit or collection. 
(2) SBA MONEYS.— 
(A) DEPOSIT IN TREASURY.—All moneys of SBA not otherwise 
employed may be deposited in the Treasury subject to check by 
authority of the Administrator. 
(B) FEDERAL RESERVE BANKS.— 
(i) IN GENERAL.—The Federal Reserve banks shall act as 
depositaries, custodians, and fiscal agents for SBA in the 
general performance of its powers under this subtitle and sub-
titles II and III. 
(ii) REIMBURSEMENT.—A Federal Reserve bank, when des-
ignated by the Administrator as fiscal agent for SBA, shall 
be entitled to be reimbursed for all expenses incurred as fiscal 
agent. 
(C) BANKS INSURED BY FDIC.—A bank insured by the Federal 
Deposit Insurance Corporation, when designated by the Secretary 
of the Treasury, shall act as custodian and financial agent for 
SBA. 
(3) REAL PROPERTY.— 
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(A) CONVEYANCE.—The power to convey and to execute in the 
name of the Administrator a deed of conveyance, deed of release, 
assignment and satisfaction of mortgages, or any other written in-
strument relating to real property or any interest in real property 
acquired by the Administrator under this subtitle or subtitle II or 
III may be exercised— 
(i) by the Administrator; or 
(ii) by any officer or agent appointed by the Administrator, 
with or without the execution of an express delegation of 
power or power of attorney. 
(B) OTHER AUTHORITY.—The Administrator may deal with, 
complete, renovate, improve, modernize, insure, or rent, or sell for 
cash or credit, on such terms and conditions and for such consid-
eration as the Administrator determines to be reasonable, any real 
property conveyed to or otherwise acquired by the Administrator 
in connection with the payment of loans granted under subtitle II 
or III. 
(4) COLLECTIONS.— 
(A) IN GENERAL.—The Administrator may pursue to final col-
lection, by way of compromise or otherwise, all claims against 3d 
parties assigned to the Administrator in connection with loans 
made by the Administrator. 
(B) DEFICIENCY JUDGMENTS.—The authority under subpara-
graph (A) includes authority to obtain a deficiency judgment or 
otherwise in the case of a mortgage assigned to the Administrator. 
(5) ACQUISITION OF PROPERTY.—The Administrator may acquire, in 
any lawful manner, any property (real, personal, or mixed, tangible or 
intangible), when the Administrator considers it necessary or appro-
priate to the conduct of the general business loan program and disaster 
assistance programs. 
(6) ASSET SALES.—In connection with the Administrator’s imple-
mentation of a program to sell to the private sector loans and other 
assets held by the Administrator, the Administrator shall provide to the 
Committee on Small Business and Entrepreneurship of the Senate and 
the Committee on Small Business of the House of Representatives a 
copy of the draft and final plans describing the sale and the anticipated 
benefits resulting from the sale. 
(c) SALE OF GUARANTEED PORTION OF LOAN BY LENDER OR SUBSE-
QUENT HOLDER.— 
(1) IN GENERAL.—The guaranteed portion of a loan made under 
subtitle II or III may be sold by the lender, and by any subsequent 
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holder, consistent with regulations prescribed by the Administrator, 
subject to the limitations stated in paragraph (2). 
(2) LIMITATIONS.— 
(A) APPROVAL.—Before the Administrator approves a sale or 
resale under paragraph (1), if the lender certifies that the loan has 
been properly closed and that the lender has substantially com-
plied with the guarantee agreement and the regulations of the Ad-
ministrator, the Administrator shall review and approve only mate-
rials not previously approved. 
(B) FEES.—All fees due the Administrator on a guaranteed 
loan shall be paid in full prior to a sale or resale under paragraph 
(1). 
(C) DISBURSEMENT.—A loan (except a loan made under section 
205108 of this title) shall be fully disbursed to the borrower before 
a sale or resale under paragraph (1). 
(3) CONTINUING OBLIGATION.—After a loan is sold, the lender shall 
remain obligated under its guarantee agreement with the Administrator 
and shall continue to service the loan in a manner consistent with the 
terms and conditions of the guarantee agreement. 
(4) SECONDARY MARKET.— 
(A) PROCEDURES.—The Administrator shall develop such pro-
cedures as are necessary for— 
(i) the facilitation, administration, and promotion of sec-
ondary market operations; and 
(ii) assessing the increase of small business access to cap-
ital at reasonable rates and terms as a result of secondary 
market operations. 
(B) UNIFORM REGULATIONS.—The sale of the unguaranteed 
portion of a loan made under the general business loan program 
shall not be permitted except in accordance with a regulation pre-
scribed by the Administrator that— 
(i) applies uniformly to both depository institutions and 
other lenders; and 
(ii) specifies the terms and conditions under which such 
sales can be permitted, including maintenance of appropriate 
reserve requirements and other safeguards to protect the 
safety and soundness of the program. 
(C) LONG-TERM VIABILITY.—The Administrator shall take such 
actions in the awarding of contracts as the Administrator con-
siders necessary to ensure the continued long-term viability of the 
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secondary market in loans, debentures, and other securities guar-
anteed by the Administrator. 
(5) EFFECT OF SUBSECTIONS.—Nothing in this subsection or sub-
section (d) impedes or extinguishes— 
(A) the right of a borrower or a successor in interest to a bor-
rower to prepay (in whole or in part) a loan made under the gen-
eral business loan program, the guaranteed portion of which may 
be included in a trust or pool; or 
(B) the rights of any person under subsection (i). 
(d) TRUST CERTIFICATES.— 
(1) IN GENERAL.—The Administrator may issue trust certificates 
representing ownership of all or a fractional part of the guaranteed 
portion of 1 or more loans guaranteed by the Administrator under sub-
title II or section 331103 of this title. 
(2) TRUST OR POOL.—A trust certificate shall be based on and 
backed by a trust or pool approved by the Administrator and composed 
solely of the entire guaranteed portion of a loan. 
(3) GUARANTEE.— 
(A) IN GENERAL.—The Administrator, on such terms and con-
ditions as the Administrator considers appropriate, may guarantee 
the timely payment of the principal of and interest on trust certifi-
cates issued by the Administrator or an agent of the Adminis-
trator for purposes of this subsection. 
(B) LIMIT.— 
(i) IN GENERAL.—A guarantee under subparagraph (A) 
shall be limited to the extent of principal and interest on the 
guaranteed portion of the loan or loans that compose the 
trust or pool. 
(ii) PREPAYMENT.—If a loan in a trust or pool is prepaid, 
either voluntarily or in the event of default, the guarantee of 
timely payment of principal and interest on the trust certifi-
cate shall be reduced in proportion to the amount of principal 
and interest that the prepaid loan represents in the trust or 
pool. 
(iii) INTEREST.—Interest on prepaid or defaulted loans 
shall accrue and be guaranteed by the Administrator only 
through the date of payment on the guarantee. 
(iv) CALL.—During the term of a trust certificate, the 
trust certificate may be called for redemption due to prepay-
ment or default of all loans constituting the trust or pool. 
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(4) FULL FAITH AND CREDIT OF THE UNITED STATES.—The full 
faith and credit of the United States is pledged to the payment of all 
amounts that may be required to be paid under any guarantee of a 
trust certificate issued by SBA or its agent under this subsection. 
(5) FEES.— 
(A) IN GENERAL.—The Administrator may impose a fee for a 
loan guarantee sold into the secondary market under subsection 
(c) in an amount equal to not more than 50 percent of the portion 
of the sale price that exceeds 110 percent of the outstanding prin-
cipal amount of the portion of the loan guaranteed by the Admin-
istrator. 
(B) COLLECTION; USE.—A fee under subparagraph (A)— 
(i) shall be collected by the Administrator or by the agent 
that carries out on behalf of the Administrator the central 
registration functions required by subsection (e); and 
(ii) shall be paid to the Administrator and used solely to 
reduce the subsidy on loans guaranteed under the general 
business loan program. 
(C) NO CHARGE TO BORROWER.—A fee under subparagraph (A) 
shall not be charged to the borrower under the loan that is guar-
anteed. 
(D) NO PRECLUSION.—Nothing in this paragraph precludes an 
agent of the Administrator from collecting a fee approved by the 
Administrator 
for 
the 
functions 
described 
in 
subsection 
(e)(2)(A)(ii). 
(E) PENALTY.—The Administrator may impose and collect, di-
rectly or through a fiscal and transfer agent, a reasonable penalty 
on late payment of a fee under subparagraph (A) in an amount 
not to exceed 5 percent of the fee per month plus interest. 
(F) AGENTS.— 
(i) IN GENERAL.—The Administrator may contract with an 
agent to carry out, on behalf of SBA, the assessment and col-
lection of the annual fee established under section 203114 of 
this title. 
(ii) COMPENSATION.—An agent may receive, as compensa-
tion for services, any interest earned on the fee while in the 
control of the agent before the time at which the agent is con-
tractually required to remit the fee to the Administrator. 
(6) SUBROGATION.—If the Administrator pays a claim under a guar-
antee issued under this subsection, the Administrator shall be sub-
rogated fully to the rights satisfied by the payment. 
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(7) EXERCISE OF OWNERSHIP RIGHTS.—No Federal, State, or local 
law shall preclude or limit the exercise by SBA of its ownership rights 
in the portions of loans constituting the trust or pool against which a 
trust certificate is issued. 
(8) DIVISION OF LOAN GUARANTEE INTO INCREMENTS.— 
(A) IN GENERAL.—If the amount of the guaranteed portion of 
a loan under the general business loan program is more than 
$500,000, the Administrator shall, on request of a pool assembler, 
divide the loan guarantee into increments of $500,000 and 1 in-
crement of any remaining amount less than $500,000, to permit 
the maximum amount of any loan in a pool to be not more than 
$500,000. 
(B) LIMITATION.—Only 1 increment of any loan guarantee di-
vided under subparagraph (A) may be included in the same pool. 
(C) INCREMENTS TO DIFFERENT BORROWERS.—Increments of 
loan guarantees to different borrowers that are divided under sub-
paragraph (A) may be included in the same pool. 
(e) CENTRAL REGISTRATION OF LOANS AND TRUST CERTIFICATES.— 
(1) DEFINITION OF SELLER.—In this subsection, the term ‘‘seller’’, 
with respect to a sale of a loan, does not include— 
(A) an entity that made the loan; or 
(B) an individual or entity that sells 3 or fewer guaranteed 
loans per year. 
(2) IN GENERAL.—Under regulations prescribed by the Adminis-
trator— 
(A) the Administrator shall— 
(i) provide for a central registration of all loans and trust 
certificates sold under subsections (c) and (d); 
(ii) contract with an agent to carry out on behalf of the 
Administrator the central registration functions of this sec-
tion and the issuance of trust certificates to facilitate pooling; 
and 
(iii) prior to any sale, require the seller to disclose to a pur-
chaser of the guaranteed portion of a loan guaranteed under 
subtitle II and to the purchaser of a trust certificate issued 
under subsection (d) information on the terms, conditions, 
and yield of the instrument to be sold; and 
(B) the Administrator may regulate brokers and dealers in 
guaranteed loans and trust certificates sold under subsections (c) 
and (d). 
(3) AGENT.—An agent described in paragraph (2)(A)(ii)— 
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(A) shall provide a fidelity bond or insurance in such amounts 
as the Administrator determines to be necessary to fully protect 
the interest of the Government; and 
(B) may be compensated through any of the fees assessed under 
this section and any interest earned on any funds collected by the 
agent while the funds are in the control of the agent and before 
the time at which the agent is contractually required to transfer 
the funds to the Administrator or to the holders of the trust cer-
tificates, as appropriate. 
(4) FORM OF REGISTRATION.— 
(A) IN GENERAL.—This subsection does not preclude the use of 
a book-entry or other electronic form of registration for trust cer-
tificates. 
(B) BOOK-ENTRY SYSTEM.—SBA may, with the consent of the 
Secretary of the Treasury, use the book-entry system of the Fed-
eral Reserve System. 
(f) ACTION DEALING WITH OR REALIZING ON LOAN.— 
(1) IN GENERAL.—In addition to exercising any power, function, 
privilege, or immunity vested in the Administrator by any other provi-
sion of law, the Administrator may take any and all actions (including 
the procurement of the services of an attorney by contract in any office 
in which an attorney is not or cannot be economically employed full 
time to render such services) if the Administrator determines that such 
action is necessary or desirable in making, servicing, compromising, 
modifying, liquidating, or otherwise dealing with or realizing on a loan 
made under subtitle II or III. 
(2) DEFERRED PARTICIPATION LOAN.—With respect to a deferred 
participation loan, the Administrator may, in the discretion of and pur-
suant to regulations promulgated by the Administrator, authorize a 
participating lending institution to take action relating to loan servicing 
on behalf of the Administrator, including determining eligibility and 
creditworthiness and loan monitoring, collection, and liquidation. 
(3) PREFERRED LENDERS PROGRAM.— 
(A) IN GENERAL.—Under this subsection, the Administrator 
may carry out a preferred lenders program under which a written 
agreement between a lender and the Administrator delegates to 
the lender— 
(i) complete authority to make and close loans with a guar-
antee from the Administrator without obtaining the prior spe-
cific approval of the Administrator; and 
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(ii) complete authority to service and liquidate the loans 
without obtaining the prior specific approval of the Adminis-
trator for routine servicing and liquidation activities, subject 
to the limitation that the lender shall not take any action cre-
ating an actual or apparent conflict of interest. 
(B) EXPORT-IMPORT BANK LENDERS.—A lender that is partici-
pating in the delegated authority lender program of the Export- 
Import Bank of the United States (or any successor to the pro-
gram) shall be eligible to participate in the preferred lenders pro-
gram. 
(C) STANDARD
REVIEW
PROGRAM.—The Administrator shall 
carry out a standard review program under which, on entry into 
the preferred lenders program and annually or more frequently 
thereafter, each preferred lender’s participation in the preferred 
lenders program is assessed, including an assessment of defaults, 
loans, and recoveries of loans made by the preferred lender under 
the general business loan program. 
(g) FEES.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the Admin-
istrator may impose, retain, and use only— 
(A) fees that are specifically authorized by law; and 
(B) fees that were in effect on September 30, 1994, in the 
amounts and at the rates in effect on that date. 
(2) ADDITIONAL FEES.—The Administrator may, subject to approval 
in appropriations Acts, impose, retain, and use, in addition to fees de-
scribed in paragraph (1)— 
(A) a fee not exceeding $100 for a loan servicing action (other 
than a loan assumption) requested after disbursement of the loan, 
including any substitution of collateral, release or substitution of 
a guarantor, reamortization, or similar action; 
(B) a fee not exceeding $300 for a loan assumption; 
(C) a fee not exceeding 1 percent of the amount of requested 
financings under chapter 303 for which the applicant requests a 
commitment from SBA for funding during the following year; and 
(D) fees to recover the direct, incremental cost involved in the 
production and dissemination of compilations of information pro-
duced by the Administrator under this title. 
(3) LIMITATION ON USE.—Amounts collected under this subsection 
shall be used solely to facilitate the administration of the program that 
generated the excess amounts. 
(h) AMOUNTS COLLECTED BY FISCAL TRANSFER AGENTS.— 
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(1) IN GENERAL.—The Administrator may collect, retain and use, 
subject to approval in appropriations Acts, any amount collected by a 
fiscal transfer agent that is not used by the fiscal transfer agent as 
payment of the cost of loan pooling or debenture servicing operations. 
(2) LIMITATION ON USE.—Amounts collected under this subsection 
shall be used solely to facilitate the administration of the program that 
generated the excess amounts. 
(i) UNDERTAKING OR SUSPENSION OF PAYMENT OBLIGATION.— 
(1) DEFINITION OF REQUIRED PAYMENTS.—In this subsection, the 
term ‘‘required payment’’, with respect to a loan, means a payment of 
principal and interest under the loan. 
(2) IN GENERAL.—Subject to the requirements and conditions con-
tained in this subsection, on application by a small business concern 
that is the recipient of a loan made under subtitle II or III, the Admin-
istrator may— 
(A) undertake the small business concern’s obligation to make 
the required payments under the loan; or 
(B) if the loan was a direct loan made by the Administrator, 
suspend the obligation. 
(3) NO REQUIREMENT FOR PAYMENT.—During any period in which 
required payments are being made by the Administrator pursuant to 
an undertaking of an obligation or in which an obligation is suspended, 
no required payment with respect to the loan may be required to be 
made by the small business concern. 
(4) CONDITIONS.—The Administrator may undertake or suspend for 
a period of not to exceed 5 years a small business concern’s obligation 
under this subsection only if— 
(A) without the undertaking or suspension of the obligation, the 
small business concern would, as determined in the sole discretion 
of the Administrator, become insolvent or remain insolvent; 
(B) with the undertaking or suspension of the obligation, the 
small business concern would, as determined in the sole discretion 
of the Administrator, become or remain a viable business; and 
(C) the small business concern executes an agreement in writing 
satisfactory to the Administrator as provided in paragraph (6). 
(5) EXTENSION OF TERM.—Notwithstanding section 203109 of this 
title, the Administrator may extend the term of a loan on which the 
Administrator undertakes or suspends the obligation under this sub-
section for a corresponding period of time. 
(6) AGREEMENT; REQUIRED ACTION.— 
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(A) AGREEMENT.—Before undertaking or suspending a small 
business concern’s obligation under this subsection, the Adminis-
trator, consistent with the purposes of this subsection, shall re-
quire the small business concern to agree in writing to repay to 
the Administrator the aggregate amount of the required payments 
during the period for which the obligation was undertaken or sus-
pended— 
(i) by periodic payments not less in amount or less fre-
quently falling due than those that were due under the loan 
during that period; 
(ii) pursuant to a repayment schedule agreed on by the Ad-
ministrator and the small business concern; or 
(iii) by a combination of the payments described in clauses 
(i) and (ii). 
(B) REQUIRED
ACTION.—In addition to requiring the small 
business concern to execute the agreement described in subpara-
graph (A), the Administrator shall, before undertaking or sus-
pending the obligation, take such action, and require the small 
business concern to take such action, as the Administrator con-
siders appropriate in the circumstances (including the provision of 
such security as the Administrator considers necessary or appro-
priate to ensure that the rights and interests of the lender will be 
safeguarded adequately during and after the period in which the 
obligation is undertaken or suspended). 
(j) INTEREST RATE ON DEFERRED PARTICIPATION.—On purchase by the 
Administrator of a deferred participation entered into under the general 
business loan program, disaster loan program, private disaster loan pro-
gram, intermediary lending pilot program, or microloan program, the Ad-
ministrator may continue to charge a rate of interest not to exceed that ini-
tially charged by the participating institution on the amount purchased for 
the remaining term of the indebtedness. 
(k) SUBORDINATION TO CERTAIN STATE TAX LIENS.—Any interest held 
by the Administrator in property as security for a loan shall be subordinate 
to any lien on the property for taxes due on the property to a State or polit-
ical subdivision of a State in any case in which the lien would, under appli-
cable State law, be superior to that interest if the interest were held by any 
party other than the United States. 
(l) RISK MANAGEMENT DATABASE.— 
(1) ESTABLISHMENT.—The Administrator shall establish, within the 
management system for the general business loan program, disaster as-
sistance programs, and certified development company program a man-
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agement information system that will generate a database capable of 
providing timely and accurate information in order to identify loan un-
derwriting, collections, recovery, and liquidation problems. 
(2) INFORMATION TO BE MAINTAINED.—In addition to such other 
information as the Administrator considers appropriate, the database 
established under paragraph (1) shall, with respect to each loan pro-
gram described in paragraph (1), include information relating to— 
(A) the identity of the institution making the guaranteed loan 
or issuing the debenture; 
(B) the identity of the borrower; 
(C) the total dollar amount of the loan or debenture; 
(D) the total dollar amount of Government exposure in each 
loan; 
(E) the SBA district in which the borrower has its principal of-
fice; 
(F) the principal line of business of the borrower, as identified 
by North American Industry Classification System (or any suc-
cessor to that system) code; 
(G) the delinquency rate for each program (including number of 
instances and days overdue); 
(H) the number and amount of repurchases, losses, and recov-
eries in each program; 
(I) the number of deferrals or forbearances in each program (in-
cluding days and number of instances); 
(J) comparisons, on the basis of loan program, lender, SBA dis-
trict, and SBA region, for all the data elements maintained; and 
(K) underwriting characteristics of each loan that has entered 
into default, including term, amount and type of collateral, loan- 
to-value and other actual and projected ratios, line of business, 
credit history, and type of loan. 
§ 103203. Small business economic database 
(a) IN GENERAL.—The Administrator shall maintain an external small 
business economic database for the purpose of providing Congress and the 
Administrator information on the economic condition and the expansion or 
contraction of the small business sector. 
(b) ECONOMIC INDICES.—In carrying out subsection (a), the Adminis-
trator shall publish on a regular basis national small business economic indi-
ces and, to the extent feasible, regional small business economic indices that 
include data relating to— 
(1) employment, layoffs, and new hires; 
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(2) number of business establishments and the types of such estab-
lishments such as sole proprietorships, corporations, and partnerships; 
(3) number of business formations and failures; 
(4) sales and new orders; 
(5) back orders; 
(6) investment in plant and equipment; 
(7) changes in inventory and rate of inventory turnover; 
(8) sources and amounts of capital investment, including debt, eq-
uity, and internally generated funds; 
(9) debt-to-equity ratios; 
(10) exports; 
(11) number and dollar amount of mergers and acquisitions by size 
of acquiring and acquired firm; and 
(12) concentration ratios. 
§ 103204. Small business computer security and education 
program 
(a) IN GENERAL.—The Administrator shall establish a small business 
computer security and education program to— 
(1) provide small business concerns information regarding— 
(A) utilization and management of computer technology; 
(B) computer crimes committed against small business con-
cerns; and 
(C) security for computers owned or utilized by small business 
concerns; 
(2) provide for periodic forums for small business concerns to im-
prove their knowledge of the matters described in paragraph (1); and 
(3) provide training opportunities to educate small business users on 
computer security techniques. 
(b) INFORMATION AND MATERIALS.—The Administrator, after consulta-
tion with the Director of the National Institute of Standards and Tech-
nology of the Department of Commerce, shall develop information and mate-
rials to carry out the activities described in subsection (a). 
§ 103205. General policies governing the granting and denial 
of applications 
The Administrator shall establish general policies (particularly with ref-
erence to the public interest in the granting and denial of applications for 
financial assistance by the Administrator and with reference to the coordi-
nation of the functions of the Administrator with other activities and poli-
cies of the Government), which shall govern the granting and denial of ap-
plications for financial assistance by the Administrator. 
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§ 103206. Retention of records 
The Administrator and the Inspector General of SBA shall— 
(1) retain all correspondence, records of inquiries, memoranda, re-
ports, books, and other records, including memoranda as to all inves-
tigations conducted by or for SBA, for a period of at least 1 year after 
the date of the record; and 
(2) at all times keep the records available for inspection and exam-
ination by the Committee on Small Business and Entrepreneurship of 
the Senate and the Committee on Small Business of the House of Rep-
resentatives or the authorized representatives of either Committee. 
§ 103207. Consultation and cooperation with other Federal 
agencies 
(a) IN GENERAL.—To the extent that the Administrator considers it nec-
essary to protect and preserve small business interests, the Administrator 
shall consult and cooperate with other Federal agencies in the formulation 
by the Administrator of policies affecting small business concerns. 
(b) RESPONSE.—When requested by the Administrator, a Federal agency 
shall consult and cooperate with the Administrator in the formulation by the 
Federal agency of policies affecting small business concerns to ensure that 
small business interests will be recognized, protected, and preserved. 
(c) EFFECT OF SECTION.—This section does not require a Federal agen-
cy to consult or cooperate with the Administrator in a case in which the 
head of the Federal agency determines that such consultation or cooperation 
would unduly delay action that must be taken by the Federal agency to pro-
tect the national interest in an emergency. 
§ 103208. Representation of status as small business concern 
(a) IN GENERAL.—Any representation of the status of any concern or 
person as a small business concern, HUBZone small business concern, small 
business concern owned and controlled by socially and economically dis-
advantaged individuals, or small business concern owned and controlled by 
women in order to obtain any prime contract or subcontract described in 
subsection (b) shall be of no effect unless the representation is in writing. 
(b) PRIME CONTRACTS AND SUBCONTRACTS.—A prime contract or sub-
contract referred to in subsection (a) is— 
(1) a prime contract to be awarded under chapter 251, 253, 261, 
or 263; 
(2) a subcontract to be awarded under chapter 233; 
(3) a subcontract that is to be included as part or all of a goal con-
tained in a subcontracting plan required under section 243103 of this 
title; or 
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(4) a prime contract or subcontract to be awarded as a result, or 
in furtherance, of any other provision of Federal law that specifically 
references chapter 243 for a definition of program eligibility. 
§ 103209. Criminal background checks 
Before approval of a loan under the general business loan program or a 
debenture guarantee under the certified development company program, the 
Administrator may verify the applicant’s criminal background (or lack of 
criminal background) through the best available means, including, if pos-
sible, use of the National Crime Information Center computer system at the 
Federal Bureau of Investigation. 
Chapter 105—Penalties 
Sec. 
105101.
Criminal penalties. 
105102.
Misrepresentation of status as small business concern. 
105103.
False certification of past compliance. 
105104.
Subcontracting requirements and limitations. 
§ 105101. Criminal penalties 
Criminal penalties for offenses relating to this title are provided under 
chapter 124 of title 18. 
§ 105102. Misrepresentation of status as small business con-
cern 
(a) OFFENSE.—A person that, in writing, misrepresents the status of a 
concern or person as a small business concern, qualified HUBZone small 
business concern, small business concern owned and controlled by socially 
and economically disadvantaged individuals, or small business concern 
owned and controlled by women, in order to obtain for that person or any 
other person— 
(1) a prime contract to be awarded under chapter 251, 253, 261, 
or 263; 
(2) a subcontract to be awarded under chapter 233; 
(3) a subcontract that is to be included as part or all of a goal con-
tained in a subcontracting plan required under section 243103 of this 
title; or 
(4) a prime contract or subcontract to be awarded as a result, or 
in furtherance, of any other provision of Federal law that specifically 
references chapter 243 for a definition of program eligibility; 
shall be subject to the penalties described in subsection (b). 
(b) PENALTIES.—A person that violates subsection (a)— 
(1) shall be subject to the administrative remedies prescribed by 
chapter 38 of title 31; 
(2) shall be subject to suspension and debarment as specified in sub-
part 9.4 of title 48, Code of Federal Regulations (or any successor reg-
ulation); and 
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(3) shall be ineligible for participation in any program or activity 
conducted under this subtitle or subtitle II or III for a period not to 
exceed 3 years. 
(c) SUSPENSION OR DEBARMENT.— 
(1) GUIDANCE.—The Administrator shall issue guidance regarding 
the basis on which a person that violates subsection (a) may be sus-
pended or debarred under subsection (b)(3) or under section 105105(3) 
or 105106(3) of this title. 
(2) WEBSITE.—The Administrator shall maintain on the SBA 
website— 
(A) the current standard operating procedures of SBA for sus-
pension and debarment; and 
(B) the name of and contact information for the individual des-
ignated by the Administrator as the senior officer responsible for 
suspension and debarment proceedings. 
(d) LIMITATION ON LIABILITY.— 
(1) IN GENERAL.—This section does not apply to any conduct in vio-
lation of subsection (a) if the violator acts in good faith reliance on a 
written advisory opinion issued by a Small Business Development Cen-
ter or an entity participating in a procurement technical assistance co-
operative agreement program under chapter 142 of title 10. 
(2) NO OBLIGATION TO ISSUE ADVISORY OPINION.—Nothing in this 
subtitle or subtitle II obligates a Small Business Development Center 
or an entity participating in a procurement technical assistance cooper-
ative agreement program to issue an advisory opinion, nor shall the 
issuance of an advisory opinion by such an entity render the entity lia-
ble to the business concern to which the advisory letter is issued if the 
Administrator later determines that the business concern is not a small 
business concern. 
(3) REJECTION OF ADVISORY OPINION BY SBA GENERAL COUNSEL.— 
(A) REMISSION TO SBA GENERAL COUNSEL.—On issuance of 
an advisory opinion under this subsection, the entity that issues 
the advisory opinion shall remit a copy of the opinion to the Gen-
eral Counsel of SBA, who may reject the advisory opinion. 
(B) NOTIFICATION OF REJECTION.—If the SBA General Coun-
sel rejects the advisory opinion, the Administrator shall notify the 
entity that issued the advisory opinion and the recipient of the ad-
visory opinion. 
(C) NO RELIANCE.—After the recipient of an advisory opinion 
receives a notification of rejection of the advisory opinion by the 
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SBA General Counsel, the recipient shall not be entitled to rely 
on the advisory opinion. 
(4) RULES.—The Administrator shall issue rules defining what con-
stitutes an adequate advisory opinion for purposes of this subsection. 
§ 105103. False certification of past compliance 
A person that falsely certifies past compliance with the requirements of 
section 233128 of this title— 
(1) shall be subject to the administrative remedies prescribed by 
chapter 38 of title 31; 
(2) shall be subject to suspension and debarment as specified in sub-
part 9.4 of title 48, Code of Federal Regulations (or any successor reg-
ulation) on the basis that the misrepresentation indicates a lack of 
business integrity that seriously and directly affects the present respon-
sibility to perform any contract awarded by the Federal Government 
or a subcontract under such a contract; and 
(3) shall be ineligible for participation in any program or activity 
conducted under this subtitle or subtitle II or III for a period not to 
exceed 3 years. 
§ 105104. Subcontracting requirements and limitations 
(a) SUBCONTRACTING REQUIREMENT.—A person that fails to supply the 
product of a domestic manufacturer or processor that is a small business 
concern as required under section 299107(b)(4) of this title— 
(1) shall be subject to the administrative remedies prescribed by 
chapter 38 of title 31; 
(2) shall be subject to suspension and debarment as specified in sub-
part 9.4 of title 48, Code of Federal Regulations (or any successor reg-
ulation) on the basis that the misrepresentation indicates a lack of 
business integrity that seriously and directly affects the present respon-
sibility to perform any contract awarded by the Federal Government 
or a subcontract under such a contract; and 
(3) shall be ineligible for participation in any program or activity 
conducted under this subtitle or subtitle II or III for a period not more 
than 3 years. 
(b) SUBCONTRACTING LIMITATION.—A person that expends on sub-
contractors an amount in excess of the amount permitted under paragraph 
(1), (2), or (3) of subsection (b) of section 299107 of this title or in excess 
of an amount established by the Administrator under subsection (e) of that 
section shall be subject to the penalties prescribed by subsection (a) of this 
section. 
Chapter 107—Periodic Reports 
Sec. 
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107101.
Comprehensive annual report on the state of small business and on SBA operations. 
107102.
Annual report on expenditures. 
107103.
Annual report on secondary market operations. 
107104.
Annual report on impact of authority to impose secondary market fees. 
107105.
Annual report on needs of small business concerns owned and controlled by veterans 
and small business concerns owned and controlled by service-disabled veterans. 
107106.
Annual report on contract bundling. 
107107.
Annual report on business development program. 
107108.
Annual report on contract participation goals. 
107109.
Annual report on cost savings from procurement center representatives. 
107110.
Reports on SBIR programs, STTR programs, and the FAST program. 
107111.
Annual report on women’s business center program. 
107112.
Annual report of the Associate Administrator for International Trade. 
107113.
Biennial report on filling gaps in high-and-low-export volume areas. 
107114.
Annual report on historical trends of the small business sector. 
107115.
Biennial report on accredited lenders program. 
107116.
Annual report on premier certified lenders program. 
107117.
Annual report on foreclosure and liquidation of loans under the certified development 
company program. 
107118.
Reports on disaster assistance. 
107119.
Annual report on subcontracting goals. 
107120.
Annual report on suspensions and debarments. 
107121.
Annual report on training and travel by Directors of Small and Disadvantaged Busi-
ness Utilization. 
107122.
Triennial report regarding procurement center representatives and commercial mar-
ket representatives. 
107123.
Quinquennial report on representation of women. 
107124.
Annual report on mentor-prote´ge´ programs. 
107125.
Annual report on State trade expansion program. 
§ 107101. Comprehensive annual report on the state of small 
business and on SBA operations 
(a) IN GENERAL.—As soon as practicable each fiscal year, the Adminis-
trator shall submit to the President a comprehensive annual report. 
(b) CONTENTS.—A report under subsection (a) shall include— 
(1) a description of the state of small business in the Nation as a 
whole and in each State; 
(2) a description of SBA’s operations under this subtitle and subtitle 
II, including the general lending, disaster relief, Government regulation 
relief, procurement and property disposal, research and development, 
technical assistance, dissemination of data and information, and other 
functions under the jurisdiction of SBA during the previous fiscal year; 
(3) recommendations— 
(A) for strengthening or improving the functions described in 
paragraph (2); or 
(B) when necessary or desirable to implement more effectively 
congressional policies and proposals, for establishing new or alter-
native programs; 
(4) the names of the business concerns to which contracts are let 
and for which financing is arranged by the Administrator, including the 
amounts of the contracts and financings; 
(5) the proportion of loans and other assistance under subtitle II and 
provided to minority small business concerns, the goals of the Adminis-
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trator for the next fiscal year with respect to minority small business 
concerns, and recommendations for improving assistance to minority 
small business concerns under subtitle II; and 
(6)(A) a full and detailed account of operations under subtitle III 
that— 
(i) discloses the amount of losses sustained by the Government 
as a result of such operations during the preceding fiscal year; and 
(ii) includes an estimate of the total losses that the Government 
can reasonably expect to incur as a result of such operations dur-
ing the then-current fiscal year; 
(B) full and detailed accounts relating to— 
(i) the Administrator’s recommendations with respect to the fea-
sibility and organization of a small business capital bank to en-
courage private financing of small business investment companies 
(as defined in section 301101 of this title) to replace Government 
financing of small business investment companies; 
(ii) the Administrator’s plans to ensure the provision of small 
business investment company financing to all areas of the country 
and to all eligible small business concerns, including steps taken 
to accomplish that; 
(iii) steps taken by the Administrator to maximize recoupment 
of Government funds incident to the inauguration and administra-
tion of the small business investment company program and to en-
sure compliance with statutory and regulatory standards relating 
to the small business investment company program; 
(iv) an accounting by the Director of the Office of Management 
and Budget with respect to Federal expenditures to business by 
executive agencies, specifying the proportion of those expenditures 
going to business concerns falling above and below small business 
size standards applicable to small business investment companies; 
(v) an accounting by the Secretary of the Treasury with respect 
to tax revenues accruing to the Government from business con-
cerns, specifying the source of those revenues by concerns falling 
above and below the small business size standards applicable to 
small business investment companies; 
(vi) an accounting by the Secretary of the Treasury with respect 
to tax losses and increased tax revenues related to small business 
investment company financing of both individual and corporate 
business taxpayers; 
(vii) recommendations of the Secretary of the Treasury with re-
spect to additional tax incentives to improve and facilitate the op-
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erations of small business investment companies and to encourage 
the use of their financing facilities by eligible small business con-
cerns; 
(viii) a report from the Securities and Exchange Commission 
enumerating actions undertaken by the Securities and Exchange 
Commission to simplify and minimize the regulatory requirements 
governing small business investment companies under the Federal 
securities laws and to eliminate overlapping regulation and juris-
diction as between the Securities and Exchange Commission, SBA, 
and other agencies of the executive branch; 
(ix) a report from the Securities and Exchange Commission 
with respect to actions taken to facilitate and stabilize the access 
of small business concerns (as defined in section 301101 of this 
title) to the securities markets; and 
(x) actions undertaken by the Securities and Exchange Commis-
sion to simplify compliance by small business investment compa-
nies with the requirements of Investment Company Act of 1940 
(15 U.S.C. 80a–1 et seq.) and to facilitate the election to be taxed 
as regulated investment companies under section 851 of the Inter-
nal Revenue Code of 1986 (26 U.S.C. 851); and 
(C) a full and detailed description or account relating to— 
(i) the number of small business investment companies the Ad-
ministrator licensed under subtitle III, the number of licensees (as 
defined in section 301101 of this title) that have been placed in 
liquidation, and the number of licensees that have surrendered 
their licenses in the previous year, identifying the amount of lever-
age (as defined in section 301101 of this title) each has received 
and the type of leverage instruments each has used; 
(ii) the amount of leverage that each licensee received in the 
previous year and the types of leverage instruments each licensee 
used; 
(iii) for each type of financing instrument, the sizes, geographic 
locations, and other characteristics of the small business invest-
ment companies using the financing instrument, including the ex-
tent to which small business investment companies have used the 
leverage from each instrument to make small business loans, eq-
uity investments, or both; and 
(iv) the frequency with which each type of investment instru-
ment has been used in the current year and a comparison of the 
current year with previous years. 
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§ 107102. Annual report on expenditures 
(a) IN GENERAL.—As soon as practicable each fiscal year, the Adminis-
trator shall submit to the President a report showing as accurately as pos-
sible for the fiscal year the amount of funds appropriated to SBA that the 
Administrator has expended in the conduct of each of the principal activities 
of SBA such as lending, procurement contracting, and providing technical 
and managerial aids. 
(b) CONTENTS.—A report under subsection (a) shall disclose, separately 
for each type of loan made under sections 205103 to 205109 of this title 
and separately for all other loan programs, the number and amount of 
loans, the number of applications, the total amount applied for, and the 
number and amount of defaults for each type of equipment or service for 
which loans are authorized by subtitle II. 
§ 107103. Annual report on secondary market operations 
(a) IN GENERAL.—Not later than March 31 of each year, the Adminis-
trator shall submit to the Committee on Small Business and Entrepreneur-
ship of the Senate and the Committee on Small Business of the House of 
Representatives a report on the secondary market operations during the 
preceding calendar year. 
(b) CONTENTS.—A report under subsection (a) shall include— 
(1) the number and the total dollar amount of loans sold into the 
secondary market and the distribution of such loans by size of loan, 
size of lender, geographic location of lender, interest rate, maturity, 
lender servicing fees, whether the rate is fixed or variable, and pre-
mium paid; 
(2) the number and dollar amount of loans resold in the secondary 
market with a distribution by size of loan, interest rate, and premiums; 
(3) the number and total dollar amount of pools formed; 
(4) the number and total dollar amount of loans in each pool; 
(5) the dollar amount, interest rate, and terms on each loan in each 
pool and whether the rate is fixed or variable; 
(6) the number, face value, interest rate, and terms of the trust cer-
tificates issued for each pool; 
(7) to the maximum extent possible, the use by the lender of the pro-
ceeds of sales of loans in the secondary market for additional lending 
to small business concerns; and 
(8) an analysis of the information reported under paragraphs (1) to 
(7) to assess the access of small business concerns to capital at reason-
able rates and terms as a result of secondary market operations. 
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§ 107104. Annual report on impact of authority to impose 
secondary market fees 
(a) DEFINITION
OF SMALL BUSINESS CONCERN OWNED
AND CON-
TROLLED BY MINORITIES.—In this section, the term ‘‘small business con-
cerns owned and controlled by minorities’’ includes a small business concern 
that is owned and controlled by individuals belonging to 1 of the designated 
groups listed in subclause (1)(C) of the contract clause described in section 
243101(c) of this title. 
(b) STUDY, MONITORING, AND EVALUATION.—The Administrator shall 
study, monitor, and evaluate the impact of subparagraphs (A) to (E) of sec-
tion 103202(d)(5) of this title on— 
(1) the ability of small business concerns owned and controlled by 
minorities, small business concerns owned and controlled by women, 
and other small business concerns to obtain financing; and 
(2) the effectiveness, viability, and growth of the secondary market 
authorized by section 103202(c) of this title. 
(c) ANNUAL REPORTS.— 
(1) IN GENERAL.—The Administrator shall annually submit to the 
Committee on Small Business and Entrepreneurship of the Senate and 
the Committee on Small Business of the House of Representatives a 
report containing the Administrator’s findings and recommendations on 
the impact described in subsection (b), specifically including changes in 
the interest rates on financings provided to small business concerns 
owned and controlled by minorities, small business concerns owned and 
controlled by women, and other small business concerns through the 
use of the secondary market. 
(2) FINDINGS AND RECOMMENDATIONS.—The report under para-
graph (1) shall state findings and recommendations separately for the 
ethnic and gender components of the small business concerns described 
in paragraph (1). 
§ 107105. Annual report on needs of small business concerns 
owned and controlled by veterans and small busi-
ness concerns owned and controlled by service- 
disabled veterans 
(a) IN GENERAL.—The Administrator shall annually submit to the Com-
mittee on Small Business and Entrepreneurship and Committee on Veterans 
Affairs of the Senate and the Committee on Small Business and Committee 
on Veterans Affairs of the House of Representatives a report on the needs 
of small business concerns owned and controlled by veterans and small busi-
ness concerns owned and controlled by service-disabled veterans. 
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(b) CONTENTS.—A report under subsection (a) shall include information 
on— 
(1)(A) the availability of SBA programs for small business concerns 
owned and controlled by veterans and small business concerns owned 
and controlled by service-disabled veterans; and 
(B) the degree of utilization of those programs by small business 
concerns owned and controlled by veterans and small business concerns 
owned and controlled by service-disabled veterans during the preceding 
12-month period, including statistical information on such utilization as 
compared with the small business community as a whole; 
(2) the percentage and dollar value of Federal contracts awarded to 
small business concerns owned and controlled by veterans and small 
business concerns owned and controlled by service-disabled veterans 
during the preceding 12-month period, based on the data collected 
under section 275113 of this title; and 
(3) proposals to improve the access of small business concerns owned 
and controlled by veterans and small business concerns owned and con-
trolled by service-disabled veterans to the assistance made available by 
the United States. 
§ 107106. Annual report on contract bundling 
(a) IN GENERAL.—In March of each year, using information maintained 
under section 251105(e) of this title, the Administrator shall submit to the 
Committee on Small Business and Entrepreneurship of the Senate and the 
Committee on Small Business of the House of Representatives a report on 
contract bundling. 
(b) CONTENTS.—A report under subsection (a) shall include— 
(1) information on the number (arranged by industrial classification) 
of small business concerns displaced as prime contractors as a result 
of the award of bundled contracts by Federal agencies; and 
(2) a description of the activities with respect to previously bundled 
contracts of each Federal agency during the preceding year, includ-
ing— 
(A) information on the number and total dollar amount of all 
contract requirements that were bundled; and 
(B) with respect to each bundled contract, information on— 
(i) the justification for the bundling of contract require-
ments; 
(ii) the cost savings realized by bundling the contract re-
quirements over the life of the contract; 
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(iii) the extent to which maintaining the bundled status of 
contract requirements is projected to result in continued cost 
savings; 
(iv) the extent to which the bundling of contract require-
ments complied with the procuring agency’s small business 
subcontracting plan, including the total dollar value awarded 
to small business concerns as subcontractors and the total 
dollar value previously awarded to small business concerns as 
prime contractors; and 
(v) the impact of the bundling of contract requirements on 
small business concerns unable to compete as prime contrac-
tors for the consolidated requirements and on the industries 
of such small business concerns, including a description of 
any changes to the proportion of any such industry that is 
composed of small business concerns. 
§ 107107. Annual report on business development program 
(a) IN GENERAL.—Not later than April 30 of each year, the Adminis-
trator shall submit to Congress a report on the business development pro-
gram. 
(b) CONTENTS.— 
(1) NET WORTH OF PARTICIPATING INDIVIDUALS.—A report under 
subsection (a) shall disclose— 
(A) the average personal net worth of individuals who own and 
control small business concerns that were initially certified for par-
ticipation in the business development program during the imme-
diately preceding fiscal year; and 
(B) the dollar distribution of net worths, at $50,000 increments, 
of all such individuals determined to be socially and economically 
disadvantaged. 
(2) DESCRIPTION AND ESTIMATE OF BENEFITS AND COSTS.—A re-
port under subsection (a) shall include a description and estimate of 
the benefits and costs that have accrued to the economy and the Gov-
ernment in the immediately preceding fiscal year due to the operations 
of the program participants that were performing contracts awarded 
under the business development program. 
(3) PROGRAM PARTICIPANTS EXITING THE PROGRAM.— 
(A) IN GENERAL.—A report under subsection (a) shall include 
a compilation and evaluation of the former program participants 
that exited the program during the immediately preceding 3 fiscal 
years. 
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