(B) GSA REPORT.—On the date that the Administrator makes 
available the report required under subsection (b), the Adminis-
trator of the General Services Administration shall submit to the 
President and Congress, and shall make available on a public 
website, a report in the same form and manner, and including the 
same information, as the report required under subsection (b). 
The report shall include all procurements made for the period cov-
ered by the report and may not exclude any contract awarded. 
(2) AGENCY PROCUREMENT DATA SOURCES.—To assist in the imple-
mentation of this section, sections 107106, 107121, and 107122 of this 
title, and chapter 251 of this title, the head of each contracting agency 
shall provide, upon request of the Administrator, procurement informa-
tion collected through agency data collection sources in existence at the 
time of the request. Contracting agencies shall not be required to estab-
lish new data collection systems to provide such data. 
§ 107109. Annual report on cost savings from procurement 
center representatives 
The Administrator shall annually submit to Congress a report that— 
(1) describes the cost savings achieved during the year covered by 
the report through the efforts of procurement center representatives as-
signed to major procurement centers under section 251110 of this title; 
(2) contains an evaluation of the extent to which competition has 
been increased as a result of those efforts; and 
(3) includes such other information relating to procurement center 
representatives as the Administrator considers appropriate. 
§ 107110. Reports on SBIR programs, STTR programs, and 
the FAST program 
(a) SBIR PROGRAMS AND STTR PROGRAMS.— 
(1) ADMINISTRATOR.— 
(A) IN GENERAL.—The Administrator, not less than annually, 
shall submit to the Committee on Small Business and Entrepre-
neurship of the Senate and the Committee on Science and Com-
mittee on Small Business of the House of Representatives a report 
on the SBIR programs and STTR programs of the Federal agen-
cies and the Administrator’s information and monitoring efforts 
relating to the SBIR programs and STTR programs. 
(B) CONTENTS.—A report under subparagraph (A) shall in-
clude— 
(i) the data on output and outcomes collected under sec-
tions 263102(a)(8) and 263202(9) of this title; 
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(ii) the number of proposals received from, and the number 
and total amount of awards to, HUBZone small business con-
cerns and firms with venture capital, hedge fund, or private 
equity firm investment (including those that are majority- 
owned by multiple venture capital operating companies, hedge 
funds, or private equity firms) under each of the SBIR pro-
grams and STTR programs; 
(iii) a description of the extent to which each Federal agen-
cy is increasing outreach and awards to firms owned and con-
trolled by women or by socially or economically disadvantaged 
individuals under each of the SBIR programs and STTR pro-
grams; 
(iv) general information about the implementation of, and 
compliance with the allocation of funds required under, sec-
tion 263109 of this title for firms owned that are majority- 
owned by venture capital operating companies, hedge funds, 
or private equity firms and participating in the SBIR pro-
gram; 
(v) a detailed description of appeals of phase III awards 
and notices of noncompliance with the SBIR policy directive 
and the STTR policy directive filed by the Administrator with 
Federal agencies; 
(vi) an accounting of funds, initiatives, and outcomes under 
the commercialization readiness program under section 
263314(a) of this title; 
(vii) a description of the extent to which Federal agencies 
are providing in a timely manner information needed to main-
tain the database under section 263301 of this title; 
(viii) for each phase III award— 
(I) the name of the agency or component of the agen-
cy or the non-Federal source of capital that made the 
phase III award; 
(II) the name of the small business concern or indi-
vidual that received the phase III award; and 
(III) the dollar amount of the phase III award; 
(ix) the manufacturing activity information contained in re-
ports under paragraph (3); 
(x) any data submitted under section 263109(d) of this 
title and a discussion of the compliance of each Federal agen-
cy that makes an award under this section 263109 of this 
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title during the fiscal year with the maximum percentages 
under 263109(a) of this title; 
(xi) the information on award amounts exceeding guidelines 
described in section 263308(b) of this title; 
(xii) the information on technology transition submitted 
under section 263314(a)(6)(C) of this title; and 
(xiii) the information on timing of final decisions on pro-
posals and releases of funding described in section 263316 of 
this title. 
(2) SBIR AGENCY HEADS AND STTR AGENCY HEADS.— 
(A) METRICS.—The head of an SBIR agency or STTR agency 
shall develop metrics to evaluate the effectiveness and the benefit 
to the people of the United States of the SBIR program and the 
STTR program of the Federal agency that— 
(i) are science-based and statistically driven; 
(ii) reflect the mission of the Federal agency; and 
(iii) include factors relating to the economic impact of the 
SBIR program or STTR program. 
(B) EVALUATION.—The head of an SBIR agency or STTR 
agency shall conduct an annual evaluation using the metrics devel-
oped under subparagraph (A) of— 
(i) the SBIR program and STTR program of the SBIR 
agency or STTR agency; and 
(ii) the benefits to the people of the United States of the 
SBIR program and the STTR program of the Federal agen-
cy. 
(C) REPORT.— 
(i) IN GENERAL.—The head of an SBIR agency or STTR 
agency shall submit to the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on Small 
Business and Committee on Science, Space, and Technology 
of the House of Representatives and to the Administrator an 
annual report describing in detail the results of an evaluation 
conducted under subparagraph (B). 
(ii) PUBLIC AVAILABILITY OF REPORT.—The head of an 
SBIR agency or STTR agency shall make a report submitted 
under clause (i) available to the public online. 
(3) HEADS OF AGENCIES THAT MAKE MORE THAN $50,000,000 IN 
AWARDS.—Not later than October 1 of each year, the head of a Fed-
eral agency that makes more than $50,000,000 in awards under the 
SBIR program and STTR program of the agency combined shall sub-
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mit to the Administrator, for inclusion in the annual report under 
paragraph (1), information that includes— 
(A) a description of efforts undertaken by the agency head to 
enhance United States manufacturing activities; 
(B) a comprehensive description of the actions undertaken each 
year by the agency head in carrying out the SBIR program or 
STTR program of the agency in support of Executive Order 
13329 (69 Fed. Reg. 9181); 
(C) an assessment of the effectiveness of the actions described 
in subparagraph (B) at enhancing the research and development 
of United States manufacturing technologies and processes; 
(D) a description of efforts by vendors selected to provide dis-
cretionary technical assistance under section 263313 of this title 
to help small business concerns that participate in the SBIR pro-
gram or STTR program manufacture in the United States; and 
(E) recommendations that the program managers of the SBIR 
program or STTR program consider appropriate for additional ac-
tions to increase the effectiveness of enhancing manufacturing ac-
tivities. 
(4) INSPECTORS GENERAL.—Not later than October 1 of each year, 
the Inspector General of an SBIR participating agency or STTR par-
ticipating agency shall submit to the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on Small Business 
and the Committee on Science, Space, and Technology of the House 
of Representatives a report that— 
(A) states the number of cases referred to the Inspector General 
in the preceding year that related to fraud, waste, or abuse with 
respect to the SBIR program or STTR program; 
(B) describes the actions taken in each case referred to in sub-
paragraph (A) if fraud, waste, or abuse was determined to have 
occurred; 
(C) if no action was taken in a case referred to subparagraph 
(A) and fraud, waste, or abuse was determined to have occurred, 
states the justification for not taking taken; and 
(D) makes an accounting of the funds used to address fraud, 
waste, and abuse, including a description of personnel and re-
sources funded and funds that were recovered or saved. 
(5) COMPTROLLER GENERAL.— 
(A) IMPACT OF REQUIREMENTS RELATING TO VENTURE CAP-
ITAL OPERATING COMPANY, HEDGE FUND, AND PRIVATE EQUITY 
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FIRM INVOLVEMENT.—Not later than December 31, 2014, and 
every 3 years thereafter, the Comptroller General shall— 
(i) conduct a study of the impact of requirements relating 
to venture capital operating company, hedge fund, and pri-
vate equity firm involvement under this division; and 
(ii) submit to Congress a report regarding the study con-
ducted under clause (i). 
(B) FRAUD, WASTE, AND ABUSE.—To establish a baseline of 
changes made to the program to fight fraud, waste, and abuse, 
and, every 4 years, to evaluate the effectiveness of the agency 
strategies, the Comptroller General shall— 
(i) conduct a study that evaluates— 
(I) the implementation by each SBIR participating 
agency and STTR participating agency of the amend-
ments to the SBIR policy directives and the STTR policy 
directive made pursuant to section 263318 of this title; 
(II) the effectiveness of the management information 
system of each SBIR participating agency and STTR 
participating agency in identifying duplicative SBIR 
projects and STTR projects; 
(III) the effectiveness of the risk management strate-
gies of each SBIR participating agency and STTR par-
ticipating agency in identifying areas of the SBIR pro-
gram or the STTR program that are at high risk for 
fraud; 
(IV) technological tools that may be used to detect 
patterns of behavior that may indicate fraud by appli-
cants to the SBIR program or the STTR program; 
(V) the success of each SBIR participating agency and 
STTR participating agency in reducing fraud, waste, and 
abuse in the SBIR program or the STTR program of the 
Federal agency; 
(VI) the extent to which the Inspector General of each 
SBIR participating agency and STTR participating 
agency effectively conducts investigations, audits, inspec-
tions, and outreach relating to the SBIR program and 
STTR program of the SBIR participating agency or 
STTR participating agency; and 
(VII) the effectiveness of the Government and public 
databases described in section 263301 of this title in re-
ducing vulnerabilities of the SBIR program and STTR 
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and an analysis of the factors that have contributed to 
the allocation; and 
(V) an analysis of whether Federal agencies, in ful-
filling their procurement needs, are making sufficient ef-
fort to use small businesses that have completed a phase 
II award under the SBIR program; and 
(ii) make recommendations with respect to— 
(I) measures of outcomes for strategic plans submitted 
under section 306 of title 5 and performance plans sub-
mitted under section 1115 of title 31 of each SBIR par-
ticipating agency; 
(II) whether companies that can demonstrate project 
feasibility, but that have not received a phase I award, 
should be eligible for phase II awards, and the potential 
impact of such awards on the competitive selection proc-
ess of the program; 
(III) whether the Federal Government should be per-
mitted to recoup some or all of its expenses if a control-
ling interest in a company receiving an SBIR award is 
sold to a foreign company or to a company that is not 
a small business concern; 
(IV) how to increase the use by the Federal Govern-
ment in its programs and procurements of technology- 
oriented small business concerns; and 
(V) improvements to the SBIR program, if any are 
considered appropriate. 
(B) PARTICIPATION BY SMALL BUSINESS CONCERNS.— 
(i) IN GENERAL.—In a manner consistent with law and 
with National Research Council study guidelines and proce-
dures, knowledgeable individuals from small business concerns 
with experience in the SBIR program shall be included— 
(I) in any panel established by the National Research 
Council for the purpose of performing the study con-
ducted under this paragraph; and 
(II) among those who are asked by the National Re-
search Council to peer review the study. 
(ii) CONSULTATION.—To ensure that the concerns of small 
business concerns are appropriately considered under this 
subparagraph, the National Research Council shall consult 
with and consider the views of the Office of Technology and 
the Office of Advocacy of the SBA and other interested par-
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ties, including entities, organizations, and individuals actively 
engaged in enhancing or developing the technological capabili-
ties of small business concerns. 
(C) REPORT.—The National Research Council shall submit to 
the heads of agencies entering into an agreement under this para-
graph and to the Committee on Science, Space, and Technology 
and Committee on Small Business of the House of Representatives 
and the Committee on Small Business and Entrepreneurship of 
the Senate— 
(i) not later than December 21, 2003, a report including 
the results of the study conducted under subparagraph (A)(i) 
and recommendations made under subparagraph (A)(ii); and 
(ii) not later than December 21, 2006, an update of the 
report. 
(D) EXTENSIONS AND ENHANCEMENTS OF AUTHORITY.— 
(i) IN GENERAL.—In consultation with the Administrator, 
the head of each agency with a budget of more than 
$50,000,000 for its SBIR program for fiscal year 1999 shall 
cooperatively enter into an agreement with the National 
Academy of Sciences for the National Research Council to, 
not later than December 31, 2014, and every 4 years there-
after— 
(I) continue the most recent study under this para-
graph relating to the issues described in subclauses (I), 
(II), (III), and (V) of subparagraph (A)(i); 
(II) conduct a comprehensive study of how the STTR 
program has stimulated technological innovation and 
technology transfer, including— 
(aa) a review of the collaborations created be-
tween small business concerns and research institu-
tions, including an evaluation of the effectiveness of 
the STTR program in stimulating new collabora-
tions and any obstacles that may prevent or inhibit 
the creation of such collaborations; 
(bb) an evaluation of the effectiveness of the 
STTR program at transferring technology and ca-
pabilities developed through Federal funding; 
(cc) to the extent practicable, an evaluation of the 
economic benefits achieved by the STTR program, 
including the economic rate of return; 
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(dd) an analysis of how Federal agencies are 
using small business concerns that have completed 
phase II under the STTR program to fulfill their 
procurement needs; 
(ee) an analysis of whether additional funds could 
be employed effectively by the STTR program; and 
(ff) an assessment of the systems and minimum 
performance standards relating to commercialization 
success established under section 263321 of this 
title; 
(III) make recommendations with respect to the issues 
described in subclauses (I), (IV), and (V) of subpara-
graph (A)(ii) and subclause (II) of this clause; and 
(IV) estimate, to the extent practicable, the number of 
jobs created by the SBIR program or STTR program of 
the agency. 
(ii) CONSULTATION.—An agreement under clause (i) shall 
require the National Research Council to ensure that there is 
participation by and consultation with small business con-
cerns, the Administrator, and other interested parties as de-
scribed in subparagraph (B). 
(iii) REPORTING.—An agreement under clause (i) shall re-
quire that not later than December 31, 2015, and every 4 
years thereafter, the National Research Council shall submit 
to the head of the agency entering into the agreement, the 
Committee on Small Business and Entrepreneurship of the 
Senate, and the Committee on Small Business and the Com-
mittee on Science, Space, and Technology of the House of 
Representatives a report regarding the study conducted under 
clause (i) and containing the recommendations described in 
clause (i). 
(b) FAST PROGRAM.—The Administrator shall annually submit to the 
Committee on Small Business and Entrepreneurship of the Senate and the 
Committee on Science and Committee on Small Business of the House of 
Representatives a report regarding— 
(1) the number and amount of awards provided and cooperative 
agreements entered into under the FAST program during the pre-
ceding year; 
(2) a list of recipients under section 263305 of this title, including 
their location and the activities being performed with the awards made 
or under the cooperative agreements entered into; and 
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(3) the mentoring networks and the mentoring database, as provided 
for under section 263305(f) of this title, including— 
(A) the status of the inclusion of mentoring information in the 
database required by section 263301 of this title; and 
(B) the status of the implementation and description of the 
usage of the mentoring networks. 
§ 107111. Annual report on women’s business center pro-
gram 
(a) IN GENERAL.—The Administrator shall annually submit to the Com-
mittee on Small Business and Entrepreneurship of the Senate and the Com-
mittee on Small Business of the House of Representatives a report on the 
effectiveness of all projects conducted under chapter 273. 
(b) CONTENTS.—A report under subsection (a) shall include information 
concerning, with respect to each women’s business center— 
(1) the number of individuals receiving assistance; 
(2) the number of startup business concerns formed; 
(3) the gross receipts of assisted business concerns; 
(4) the employment increases or decreases of assisted business con-
cerns; 
(5) to the maximum extent practicable, increases or decreases in 
profits of assisted business concerns; and 
(6) the most recent analysis and determination made by the Admin-
istrator under section 273107(a)(2) of this title. 
§ 107112. Annual report of the Associate Administrator for 
International Trade 
The Associate Administrator for International Trade shall annually sub-
mit to the Committee on Small Business and Entrepreneurship of the Sen-
ate and the Committee on Small Business of the House of Representatives 
a report that contains— 
(1) a description of the progress of the Office in implementing the 
requirements of chapter 277; 
(2) a detailed account of the results of export growth activities of 
the Administrator, including the activities of each SBA district office 
and SBA regional office, based on the performance measures described 
in section 277108 of this title; 
(3) an estimate of the total number of jobs created or retained as 
a result of export assistance provided by the Administrator and re-
source partners of the Administrator; 
(4) for any travel by the staff of the Office of International Trade, 
the destination of the travel and the benefits to SBA and to small busi-
ness concerns resulting from the travel; and 
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(5) a description of the participation by the Office of International 
Trade in trade negotiations. 
§ 107113. Biennial report on filling gaps in high-and-low-ex-
port volume areas 
Every 2 years, the Administrator shall— 
(1) conduct a study of— 
(A) the volume of exports for each State; 
(B) the availability of export finance specialists in each State; 
(C) the number of exporters in each State that are small busi-
ness concerns; 
(D) the percentage of exporters in each State that are small 
business concerns; 
(E) the change, if any, in the number of exporters that are 
small business concerns in each State— 
(i) for the 1st study conducted under this paragraph, dur-
ing the 10-year period ending on September 27, 2010; and 
(ii) for each subsequent study, during the 10-year period 
ending on the date on which the study is commenced; 
(F) the total value of the exports in each State by small busi-
ness concerns; 
(G) the percentage of the total volume of exports in each State 
that is attributable to small business concerns; and 
(H) the change, if any, in the percentage of the total volume 
of exports in each State that is attributable to small business con-
cerns— 
(i) for the 1st study conducted under this paragraph, dur-
ing the 10-year period ending on September 27, 2010; and 
(ii) for each subsequent study, during the 10-year period 
ending on the date on which the study is commenced; and 
(2) 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 containing— 
(A) the results of the study under paragraph (1); 
(B) to the extent practicable, a recommendation regarding how 
to eliminate gaps between the supply of and demand for export fi-
nance specialists in the 15 States that have the greatest volume 
of exports, based on the most recent data available from the De-
partment of Commerce; 
(C) to the extent practicable, a recommendation regarding how 
to eliminate gaps between the supply of and demand for export fi-
nance specialists in the 15 States that have the lowest volume of 
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105 
Business of the House of Representatives a report on the disaster as-
sistance operations of SBA for the fiscal year. 
(2) CONTENTS.—A report under paragraph (1) shall— 
(A) specify the number of SBA personnel involved in disaster 
assistance operations; 
(B) describe any material changes to disaster assistance oper-
ations, such as changes to technologies used or to personnel re-
sponsibilities; 
(C) describe and assess the effectiveness of the Administrator 
in responding to disasters during the fiscal year, including a de-
scription of the number and dollar amounts of loans made for 
damage and for economic injury; and 
(D) describe the plans of the Administrator for preparing to re-
spond to disasters during the next fiscal year. 
§ 107119. Annual report on subcontracting goals 
Not later than March 31 of each year, the Administrator shall submit to 
the Committee on Small Business of the House of Representatives and the 
Committee on Small Business and Entrepreneurship of the Senate a report, 
based on data available through systems in existence on January 2, 2013, 
that discloses, for each Federal agency (and to the extent practicable, by 
type of goal or plan)— 
(1)(A) the percentage of offerors and bidders that were required to 
submit reports under section 243103(d)(5) of this title during the pre-
ceding fiscal year that filed the required reports; and 
(B) the percentage of those offerors and bidders that failed to file 
the required reports; 
(2) the percentage of offerors and bidders that filed the required re-
ports that met, exceeded, or failed to meet goals set forth in their sub-
contracting plans during the preceding fiscal year; and 
(3) the aggregate value by which offerors and bidders that filed the 
required reports exceeded, or failed to meet, their subcontracting goals 
during the preceding fiscal year. 
§ 107120. Annual report on suspensions and debarments 
(a) IN GENERAL.—The Administrator shall annually submit to the Com-
mittee on Small Business and Entrepreneurship of the Senate and the Com-
mittee on Small Business of the House of Representatives a report on the 
suspension and debarment actions taken by the Administrator during the 
year preceding the year of submission of the report. 
(b) CONTENTS.—A report under subsection (a) shall include the following 
information for the year covered by the report: 
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106 
(1) NUMBER PROPOSED.—The number of contractors proposed for 
suspension or debarment. 
(2) SOURCE OF PROPOSAL.—The office within a Federal agency that 
originated each proposal for suspension or debarment. 
(3) REASONS FOR PROPOSALS.—The reason for each proposal for 
suspension or debarment. 
(4) RESULTS.—The result of each proposal for suspension or debar-
ment, and the reason for the result. 
(5) REFERRALS.—The number of suspensions or debarments re-
ferred to the Inspector General of SBA or of another Federal agency 
or to the Attorney General. 
(c) REDACTION OF IDENTIFYING INFORMATION.—For purposes of sub-
section (b)(5), the Administrator may redact identifying information on 
names of companies or other information to protect the integrity of any on-
going criminal or civil investigation. 
§ 107121. Annual report on training and travel by Directors 
of Small and Disadvantaged Business Utilization 
At the end of each fiscal year, the Director of Small and Disadvantaged 
Business Utilization of a Federal agency shall submit to the Committee on 
Small Business of the House of Representatives and the Committee on 
Small Business and Entrepreneurship of the Senate a report that— 
(1) describes the training provided by the Director under section 
251109(e)(5) of this title during the fiscal year; 
(2) discloses the percentage of the budget of the Director used for 
that training; 
(3) discloses the percentage of the budget of the Director used for 
travel during the fiscal year; and 
(4) discloses any failure of the agency to comply with chapter 231, 
233, 241 (except section 241119), 243, or 245 of this title or division 
H of subtitle II of this title. 
§ 107122. Triennial report regarding procurement center 
representatives and commercial market represent-
atives 
(a) IN GENERAL.—Every 3 years, 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 re-
garding procurement center representatives and commercial market rep-
resentatives. 
(b) CONTENTS.—A report under subsection (a) shall— 
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107 
(1) identify each area for which the Administrator has assigned a 
procurement center representative or a commercial market representa-
tive; 
(2) explain why the Administrator selected the areas identified under 
paragraph (1); and 
(3) describe the activities performed by procurement center rep-
resentatives and commercial market representatives. 
§ 107123. Quinquennial report on representation of women 
(a) STUDY.—The Administrator shall periodically conduct a study to 
identify industries (as defined under the North American Industry Classi-
fication System) that are underrepresented by small business concerns 
owned and controlled by women. 
(b) REPORT.—Not later than January 2, 2016, and every 5 years there-
after, 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 the results of each study under 
subsection (a) conducted during the 5-year period ending on the date of the 
report. 
§ 107124. Annual report on mentor-prote´ge´ programs 
(a) IN GENERAL.—Not later than January 2, 2015, and annually there-
after, the Administrator shall submit to the Committee on Small Business 
of the House of Representatives and the Committee on Small Business and 
Entrepreneurship of the Senate a report that— 
(1) identifies each Federal mentor-prote´ge´ program under section 
299106 of this title; 
(2) discloses the number of participants in each mentor-prote´ge´ pro-
gram, including the number of participants that are— 
(A) small business concerns; 
(B) qualified HUBZone small business concerns; 
(C) small business concerns owned and controlled by service-dis-
abled veterans; 
(D) small business concerns owned and controlled by socially 
and economically disadvantaged individuals; or 
(E) small business concerns owned and controlled by women; 
(3) describes the type of assistance provided to prote´ge´s under each 
mentor-prote´ge´ program; 
(4) describes the benefits provided to mentors under each mentor- 
prote´ge´ program; and 
(5) describes the progress of prote´ge´s under each mentor-prote´ge´ 
program with respect to competing for Federal prime contracts and 
subcontracts. 
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108 
(b) PROVISION OF INFORMATION.—The head of a Federal agency that 
carries out a mentor-prote´ge´ program under section 299106 of this title 
shall annually provide the Administrator the information necessary for the 
Administrator to submit a report under subsection (a). 
§ 107125.
Annual report on State trade expansion program 
(a) IN GENERAL.— The Associate Administrator for International Trade 
shall publish on the SBA website an annual report regarding the State 
trade expansion program under section 277110 of this title. 
(b) CONTENTS.—The report shall— 
(1) disclose the number and amount of grants made under the pro-
gram during the preceding year; 
(2) include a list of the States receiving a grant under the program 
during the preceding year, including the activities being performed with 
each grant; 
(3) describe the effect of each grant on the eligible small business 
concerns in the State receiving the grant; 
(4) disclose the total return on investment for each State; and 
(5) describe best practices by States that showed high returns on in-
vestment and significant progress in helping more eligible small busi-
ness concerns. 
(c) NOTICE TO CONGRESS.—On the date on which the Associate Adminis-
trator publishes a report under subsection (a), the Associate Administrator 
shall notify the Committee on Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business of the House of Representa-
tives that the report has been published. 
Chapter 109—Funding 
Sec. 
109101.
Commitments in full amounts provided by law. 
109102.
Program levels. 
109103.
Authorization of appropriations. 
109104.
TARP funds and tax increases. 
109105.
Annual budget request. 
§ 109101. Commitments in full amounts provided by law 
(a) IN GENERAL.—Notwithstanding any other provision of law, the Ad-
ministrator shall enter into commitments for direct loans and to guarantee 
loans, debentures, payment of rentals, or other amounts due under qualified 
contracts and other types of financial assistance, and enter into commit-
ments to purchase debentures and preferred securities and to guarantee 
sureties against loss pursuant to programs under subtitles II and III, in the 
full amounts provided by law subject only to— 
(1) the availability of qualified applications; and 
(2) limitations contained in appropriations Acts. 
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(b) EFFECT OF SECTION.—Nothing in this section authorizes the Admin-
istrator to reduce or limit the authority of the Administrator to enter into 
a commitment described in subsection (a). 
(c) MULTIPLE FISCAL YEARS.—Subject to approval in appropriations 
Acts, amounts authorized for preferred securities, debentures, or partici-
pating securities under chapter 303 may be obligated in 1 fiscal year and 
disbursed or guaranteed in any 1 or more of the 4 subsequent fiscal years. 
§ 109102. Program levels 
(a) FISCAL YEAR 2005.—The following program levels are authorized for 
fiscal year 2005: 
(1) For the programs authorized by this subtitle and subtitle II, the 
Administrator may make— 
(A) $75,000,000 in technical assistance grants, as provided in 
chapter 213; and 
(B) $105,000,000 in direct loans, as provided in chapter 213. 
(2) For the programs authorized by this subtitle and subtitle II, the 
Administrator may make $23,050,000,000 in deferred participation 
loans and other financings. Of that sum, the Administrator may 
make— 
(A) $16,500,000,000 in general business loans, as provided in 
division B of subtitle II; 
(B) 
$6,000,000,000 
in 
certified 
development 
company 
financings, as provided in section 205107 of this title and chapter 
331; 
(C) $500,000,000 in loans, as provided in section 205112 of 
this title; and 
(D) $50,000,000 in loans, as provided in chapter 213. 
(3) For the programs authorized by chapter 303, the Administrator 
may make— 
(A) $4,250,000,000 in purchases of participating securities; and 
(B) $3,250,000,000 in guarantees of debentures. 
(4) For the programs authorized by chapter 321, the Administrator 
may enter into guarantees not to exceed $6,000,000,000, of which not 
more than 50 percent may be in bonds approved under section 
321102(a)(4) of this title. 
(5) The Administrator may make grants or enter into cooperative 
agreements for a total amount of $7,000,000 for SCORE. 
(b) FISCAL YEAR 2006.—The following program levels are authorized for 
fiscal year 2006: 
(1) For the programs authorized by this subtitle and subtitle II, the 
Administrator may make— 
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(A) $80,000,000 in technical assistance grants, as provided in 
chapter 213; and 
(B) $110,000,000 in direct loans, as provided in chapter 213. 
(2) For the programs authorized by this subtitle and subtitle II, the 
Administrator may make $25,050,000,000 in deferred participation 
loans and other financings. Of that sum, the Administrator may 
make— 
(A) $17,000,000,000 in general business loans, as provided in 
division B of subtitle II; 
(B) 
$7,500,000,000 
in 
certified 
development 
company 
financings, as provided in section 205107 of this title and chapter 
331; 
(C) $500,000,000 in loans, as provided in section 205112 of 
this title; and 
(D) $50,000,000 in loans, as provided in chapter 213. 
(3) For the programs authorized by chapter 303, the Administrator 
may make— 
(A) $4,500,000,000 in purchases of participating securities; and 
(B) $3,500,000,000 in guarantees of debentures. 
(4) For the programs authorized by chapter 321, the Administrator 
may enter into guarantees not to exceed $6,000,000,000, of which not 
more than 50 percent may be in bonds approved under section 
321102(a)(4) of this title. 
(5) The Administrator may make grants or enter into cooperative 
agreements for a total amount of $7,000,000 for SCORE. 
(c) AMOUNT OF DEFERRED PARTICIPATION LOANS.—Except as may be 
otherwise specifically provided by law, the amount of deferred participation 
loans authorized in this section— 
(1) means the net amount of the loan principal guaranteed by the 
Administrator and does not include any amount that is not guaranteed; 
and 
(2) shall be available for a national program, except that the Admin-
istrator may use not more than an amount equal to 10 percent of the 
amount authorized each year for any special or pilot program directed 
to identified sectors of the small business community or to specific geo-
graphic regions of the United States. 
§ 109103. Authorization of appropriations 
(a) CERTAIN ADMINISTRATIVE EXPENSES.—For each fiscal year, there 
are authorized to be appropriated such sums as are necessary, to remain 
available until expended— 
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(1) to carry out the small business development center program, but 
not to exceed the annual funding level specified in section 271102 of 
this title; 
(2) to pay the expenses of the National Small Business Development 
Center Advisory Board under section 271109 of this title; 
(3) to pay the expenses of the information sharing system under sec-
tion 271104(j) of this title; 
(4) to pay the expenses of the Association for conducting the accredi-
tation program under section 271111 of this title; 
(5) to pay SBA’s expenses, including salaries of examiners, for con-
ducting examinations as part of the accreditation program conducted 
by the Association; and 
(6) to pay for small business development center grants as directed 
by Congress. 
(b) PROGRAMS
FOR WHICH PROGRAM LEVELS ARE ESTABLISHED 
UNDER SECTION 109102.— 
(1) IN GENERAL.—There are authorized to be appropriated to SBA 
for each of fiscal years 2005 and 2006 such sums as are necessary to 
carry out— 
(A) the provisions of this subtitle and subtitle II not elsewhere 
provided for (including salaries and expenses of SBA and nec-
essary loan capital for loans under the disaster loan program); and 
(B) subtitle III. 
(2) LIMITATIONS.—Notwithstanding any other provision of this sub-
section, for each of fiscal years 2005 and 2006, respectively— 
(A) no funds are authorized to be used as loan capital for the 
loan program authorized by section 205112 of this title except by 
transfer from another Federal agency to SBA, unless the program 
level authorized for general business loans under subsection 
(a)(2)(A) or (b)(2)(A) of section 109102 of this title is fully fund-
ed; and 
(B) the Administrator may not approve loans on behalf of SBA 
or on behalf of any other Federal agency, by contract or otherwise, 
under terms or conditions other than those specifically authorized 
under this subtitle or subtitle II or III, except that the Adminis-
trator may approve loans under section 205112 of this title in 
gross amounts of not more than $2,000,000. 
(c) OFFICE OF ADVOCACY.— 
(1) APPROPRIATION REQUESTS.—Each budget of the United States 
Government submitted by the President under section 1105 of title 31 
shall include a separate statement of the amount of appropriations re-
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quested for the Office of Advocacy of SBA, which shall be designated 
in a separate account in the general fund of the Treasury. 
(2) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated such sums as are necessary to carry out section 
103107 of this title. Any amount appropriated under this paragraph 
shall remain available, without fiscal year limitation, until expended. 
(d) OFFICE OF VETERANS BUSINESS DEVELOPMENT.—There are author-
ized to be appropriated to carry out section 103113 of this title— 
(1) $1,500,000 for fiscal year 2005; and 
(2) $2,000,000 for fiscal year 2006. 
(e) LOSSES AND INTEREST SUBSIDIES.—There are authorized to be ap-
propriated for each fiscal year such sums as are necessary for losses and 
interest subsidies incurred by the accounts referred to in section 
103202(a)(1) of this title. 
(f) HUBZONE PROGRAM.—There is authorized to be appropriated to 
carry out chapter 253 $10,000,000 for each of fiscal years 2004 through 
2006. 
(g) FAST PROGRAM.— 
(1) IN GENERAL.—There is authorized to be appropriated to carry 
out the FAST program (including mentoring networks) $10,000,000 
for each of fiscal years 2001 through 2005. 
(2) MENTORING DATABASE.—Of the total amount made available 
under paragraph (1) for fiscal years 2001 through 2005, a reasonable 
amount, not to exceed a total of $500,000, may be used by the Admin-
istrator to carry out section 263305(f)(3) of this title. 
(h) SMALL BUSINESS DEVELOPMENT CENTER PROGRAM.— 
(1) IN GENERAL.—There are authorized to be appropriated to carry 
out chapter 271— 
(A) $130,000,000 for fiscal year 2005; and 
(B) $135,000,000 for fiscal year 2006. 
(2) GRANTS.—There is authorized to be appropriated $50,000,000 
to carry out section 271115 of this title. 
(i) STATE TRADE EXPANSION PROGRAM.—There is authorized to be ap-
propriated to carry out the State trade expansion program under section 
277110 of this title $30,000,000 for each of fiscal years 2016 through 
2020. 
(j) BUSINESS GRANTS AND COOPERATIVE AGREEMENTS.—There is au-
thorized to be appropriated to carry out section 299102 of this title 
$6,600,000 for each of fiscal years 2001 through 2006, to remain available 
until expended. 
(k) PAUL D. COVERDELL DRUG-FREE WORKPLACE PROGRAM.— 
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(1) IN GENERAL.—There is authorized to be appropriated to carry 
out section 299104 of this title (other than section 299104(b)(2) of 
this title) $5,000,000 for each of fiscal years 2005 and 2006. Amounts 
made available under this paragraph shall remain available until ex-
pended. 
(2) SMALL
BUSINESS
DEVELOPMENT
CENTERS.—Of the total 
amount made available under paragraph (1) for each of fiscal years 
2005 and 2006, not more than the greater of 10 percent or $500,000 
may be used to carry out section 271104(b)(21) of this title. 
(3) ADDITIONAL
AUTHORIZATION
FOR
TECHNICAL
ASSISTANCE 
GRANTS.—There are authorized to be appropriated to carry out section 
299104(b)(2) of this title $1,500,000 for each of fiscal years 2005 and 
2006. Amounts made available under this paragraph shall remain avail-
able until expended. 
(4) LIMITATION ON ADMINISTRATIVE COSTS.—Not more than 5 per-
cent of the total amount made available under this subsection for any 
fiscal year shall be used for administrative costs (determined without 
regard to the administrative costs of eligible intermediaries). 
(l) NEW MARKETS VENTURE CAPITAL COMPANY PROGRAM.— 
(1) IN GENERAL.—There are authorized to be appropriated for fiscal 
years 2001 through 2006, to remain available until expended, the fol-
lowing sums: 
(A) Such subsidy budget authority as is necessary to guarantee 
$150,000,000 of debentures under chapter 305. 
(B) $30,000,000 to make grants under chapter 305. 
(2) FUNDS
COLLECTED
FOR
EXAMINATIONS.—Funds deposited 
under section 305112(d) of this title are authorized to be appropriated 
only for the costs of examinations under section 305112 of this title 
and for the costs of other oversight activities with respect to the new 
markets venture capital company program. 
(m) RENEWABLE FUEL CAPITAL INVESTMENT COMPANY PROGRAM.— 
(1) IN GENERAL.—Subject to the availability of appropriations, the 
Administrator may make $15,000,000 in operational assistance grants 
under section 307107 of this title for each of fiscal years 2008 and 
2009. 
(2) FUNDS
COLLECTED
FOR
EXAMINATIONS.—Funds deposited 
under section 307111(d) of this title are authorized to be appropriated 
only for the costs of examinations under section 307111 of this title 
and for the costs of other oversight activities with respect to the renew-
able fuel capital investment company program. 
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§ 109104. TARP funds and tax increases 
(a) DEFINITION OF COVERED AMOUNT.—In this section, the term ‘‘cov-
ered amount’’ means— 
(1) an amount made available to the Secretary of the Treasury 
under title I of the Emergency Economic Stabilization Act of 2008 (12 
U.S.C. 5211 et seq.) to purchase (under section 101 of that Act (12 
U.S.C. 5211)) or guarantee (under section 102 of that Act (12 U.S.C. 
5212)) assets under that Act; and 
(2) a revenue increase attributable to any amendment to the Internal 
Revenue Code of 1986 made during the period beginning on September 
27, 2010, and ending on December 31, 2010. 
(b) PROHIBITION.—No covered amount shall be used to carry out the 
provisions described in subsection (c) (as restated in this title, in the case 
of the provisions described in paragraphs (1) to (3), (5) to (7), and (9) to 
(13)). 
(c) PROVISIONS.—The provisions referred to in subsection (b) are— 
(1) the amendments made by section 1111 of the Small Business 
Job Creation and Access to Capital Act of 2010 (124 Stat. 2507); 
(2) the amendments made by section 1112 of the Small Business 
Job Creation and Access to Capital Act of 2010 (124 Stat. 2508); 
(3) the amendments made by section 1113 of the Small Business 
Job Creation and Access to Capital Act of 2010 (124 Stat. 2508); 
(4) the amendments made by section 1114 of the Small Business 
Job Creation and Access to Capital Act of 2010 (124 Stat. 2508); 
(5) the amendment made by section 1115 of the Small Business Job 
Creation and Access to Capital Act of 2010 (124 Stat. 2508); 
(6) the amendment made by section 1116 of the Small Business Job 
Creation and Access to Capital Act of 2010 (124 Stat. 2509); 
(7) the amendment made by section 1117 of the Small Business Job 
Creation and Access to Capital Act of 2010 (124 Stat. 2509); 
(8) section 1118 of the Small Business Job Creation and Access to 
Capital Act of 2010 (124 Stat. 2509); 
(9) the amendment made by section 1122(a) of the Small Business 
Job Creation and Access to Capital Act of 2010 (124 Stat. 2510); 
(10) section 1122(b) of the Small Business Job Creation and Access 
to Capital Act of 2010 (124 Stat. 2512); 
(11) the amendment made by section 1122(c) of the Small Business 
Job Creation and Access to Capital Act of 2010 (124 Stat. 2512); 
(12) the amendment made by section 1131(a) of the Small Business 
Job Creation and Access to Capital Act of 2010 (124 Stat. 2512); and 
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(13) subsections (b) and (c) of section 1131 of the Small Business 
Job Creation and Access to Capital Act of 2010 (124 Stat. 2514). 
§ 109105. Annual budget request 
(a) IN GENERAL.—For each fiscal year, the budget request for SBA shall 
provide a detailed justification of any proposed changes from the enacted 
level by individual appropriation. 
(b) CONTENTS.—The detailed justification shall include at a minimum a 
description of each credit program and noncredit program, including the 
amount of funding and the amount of costs by appropriation account and 
fiscal year. 
(c) MULTIPLE APPROPRIATIONS.—For activities funded in multiple ap-
propriations, the budget justification shall— 
(1) specify the amount included in each enacted appropriation; 
(2) specify the amount proposed for the budget year; and 
(3) provide a justification for any proposed changes. 
Subtitle II—Loan, Contracting, and 
Related Assistance Programs 
Division A—General Provisions 
Chapter 201—General Provisions 
Sec. 
201101.
Certification of compliance with child support obligations. 
201102.
Certification requirements for business opportunity specialists. 
201103.
Certification requirements for commercial market representatives. 
201104.
Authorities in carrying out programs for small business concerns in areas with high 
proportions of unemployed or low-income individuals and small business concerns 
owned by low-income individuals. 
201105.
Extension or renewal of loans. 
201106.
Deferral of repayment for active duty reservists. 
201107.
Ownership interest arising from community property law. 
201108.
Use of financial assistance programs. 
§ 201101. Certification of compliance with child support ob-
ligations 
(a) IN GENERAL.—A recipient of financial assistance under this subtitle 
shall certify that the recipient is not more than 60 days delinquent under 
the terms of any— 
(1) administrative order; 
(2) court order; or 
(3) repayment agreement entered into between the recipient and the 
custodial parent or State agency providing child support enforcement 
services; 
that requires the recipient to pay child support (as defined in section 459(i) 
of the Social Security Act (42 U.S.C. 659(i))). 
(b) ENFORCEMENT.—The Administrator shall promulgate such regula-
tions as are necessary to enforce compliance with this section. 
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§ 201102. Certification requirements for business oppor-
tunity specialists 
(a) IN GENERAL.—Consistent with the requirements of subsection (b), a 
business opportunity specialist described (as defined in section 231101 of 
this title) shall have a Level I Federal Acquisition Certification in Con-
tracting (or any successor certification) or the equivalent Department of De-
fense certification, except that a business opportunity specialist who was 
serving on or before January 3, 2013, may continue to serve as a business 
opportunity specialist for a period of 5 years beginning on that date without 
such a certification. 
(b) DELAY OF CERTIFICATION REQUIREMENT.— 
(1) TIMING.—A certification described in subsection (a) is not re-
quired for any person serving as a business opportunity specialist until 
the date that is 1 calendar year after the date on which the person 
is appointed as a business opportunity specialist. 
(2) APPLICABILITY.—The requirements of paragraph (1)— 
(A) shall be included in any initial job posting for the position 
of a business opportunity specialist; and 
(B) shall apply to any person appointed as a business oppor-
tunity specialist after January 3, 2013. 
§ 201103. Certification requirements for commercial market 
representatives 
(a) IN GENERAL.—Consistent with the requirements of subsection (b), a 
commercial market representative referred to in section 107122 of this title 
shall have a Level I Federal Acquisition Certification in Contracting (or any 
successor certification) or the equivalent Department of Defense certifi-
cation, except that a commercial market representative who was serving on 
or before November 25, 2015, may continue to serve as a commercial mar-
ket representative for a period of 5 years beginning on that date without 
such a certification. 
(b) DELAY OF CERTIFICATION REQUIREMENT.— 
(1) TIMING.—A certification described in subsection (a) is not re-
quired for any person serving as a commercial market representative 
until the date that is 1 calendar year after the date on which the per-
son is appointed as a commercial market representative. 
(2) APPLICABILITY.—The requirements of paragraph (1)— 
(A) shall be included in any initial job posting for the position 
of a commercial market representative; and 
(B) shall apply to any person appointed as a commercial market 
representative after November 25, 2015. 
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§ 201104. Authorities in carrying out programs for small 
business concerns in areas with high proportions 
of unemployed or low-income individuals and 
small business concerns owned by low-income in-
dividuals 
In carrying out section 205104 of this title and the business development 
program, the Administrator may— 
(1) use, with their consent, the services and facilities of Federal 
agencies without reimbursement, and, with the consent of any State or 
political subdivision of a State, accept and use the services and facili-
ties of the State or subdivision without reimbursement; 
(2) accept, in the name of SBA, and employ or dispose of in further-
ance of the purposes of this subtitle, any money or property, real, per-
sonal, or mixed, tangible, or intangible, received by gift, devise, be-
quest, or otherwise; 
(3) accept voluntary and uncompensated services, notwithstanding 
section 1342 of title 31; and 
(4)(A) employ experts and consultants or organizations of experts 
and consultants as authorized by section 3109 of title 5, except that 
no individual may be employed under this subsection for more than 100 
days in any fiscal year; 
(B) compensate individuals employed under subparagraph (A) at 
rates not in excess of the daily equivalent of the highest rate payable 
under section 5332 of title 5, including travel time; 
(C) allow individuals employed under subparagraph (A), while away 
from their homes or regular places of business, travel expenses (includ-
ing per diem in lieu of subsistence) as authorized by section 5703 of 
title 5 for persons in the Government service employed intermittently, 
while so employed; and 
(D) notwithstanding section 3109(b) of title 5, renew contracts for 
employment under subparagraph (A) annually. 
§ 201105. Extension or renewal of loans 
(a) IN GENERAL.—The Administrator may extend the maturity of or 
renew a loan under the general business loan program, disaster loan pro-
gram, private disaster loan program, intermediary lending pilot program, or 
microloan program for additional periods not to exceed 10 years beyond the 
period stated in the loan if the extension or renewal will aid in the orderly 
liquidation of the loan. 
(b) INAPPLICABILITY
TO CERTAIN DISASTER LOANS.—Subsection (a) 
does not apply to a loan under the disaster loan program that has a term 
of more than 20 years. 
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§ 201106. Deferral of repayment for active duty reservists 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE RESERVIST.—The term ‘‘eligible reservist’’ means a 
member of a reserve component of the Armed Forces ordered to active 
duty during a period of military conflict. 
(2) ESSENTIAL EMPLOYEE.—The term ‘‘essential employee’’ means 
an individual who is employed by a small business concern and whose 
managerial or technical expertise is critical to the successful day-to-day 
operations of the small business concern. 
(3) PERIOD OF MILITARY CONFLICT.—The term ‘‘period of military 
conflict’’ means— 
(A) a period of war declared by Congress; 
(B) a period of national emergency declared by Congress or by 
the President; or 
(C) a period of a contingency operation (as defined in section 
101(a) of title 10). 
(4) 
QUALIFIED
BORROWER.—The 
term 
‘‘qualified 
borrower’’ 
means— 
(A) an individual who is an eligible reservist and who received 
a direct loan under the general business loan program or a dis-
aster assistance program before being ordered to active duty; or 
(B) a small business concern that received a direct loan under 
the general business loan program or a disaster assistance pro-
gram before an eligible reservist, who is an essential employee, was 
ordered to active duty. 
(b) DEFERRAL OF DIRECT LOANS.— 
(1) IN GENERAL.—The Administrator shall, on written request, defer 
repayment of principal and interest due on a direct loan made under 
the general business loan program or a disaster assistance program if 
the loan was incurred by a qualified borrower. 
(2) PERIOD OF DEFERRAL.—The period of deferral for repayment 
under paragraph (1) shall begin on the date on which the eligible re-
servist is ordered to active duty and terminate on the date that is 180 
days after the date on which the eligible reservist is discharged or re-
leased from active duty. 
(3) INTEREST
RATE
REDUCTION
DURING
DEFERRAL.—Notwith-
standing any other provision of law, during the period of deferral under 
paragraph (2), the Administrator may reduce the interest rate on a 
loan qualifying for a deferral under this subsection. 
(c) DEFERRAL OF LOAN GUARANTEES AND OTHER FINANCINGS.—The 
Administrator shall— 
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(1) encourage intermediaries participating in the microloan program 
to defer repayment of a microloan made with proceeds made available 
under the microloan program, if the microloan was incurred by a small 
business concern that is eligible to apply for assistance under section 
221103 of this title; and 
(2) establish guidelines to— 
(A) encourage lenders and other intermediaries to defer repay-
ment of, or provide other relief relating to— 
(i) loan guarantees under the general business loan pro-
gram and financings under the certified development company 
program that were incurred by small business concerns that 
are eligible to apply for assistance under section 221103 of 
this title; and 
(ii) loan guarantees provided under the microloan program 
if the intermediary provides relief to a small business concern 
under this subsection; and 
(B) implement a program to provide for the deferral of repay-
ment or other relief to any intermediary providing relief to a small 
business borrower under this subsection. 
§ 201107. Ownership interest arising from community prop-
erty law 
Ownership requirements to determine the eligibility of a small business 
concern that applies for assistance under any credit program under this 
subtitle shall be determined without regard to any ownership interest of a 
spouse arising solely from the application of the community property law 
of a State for purposes of determining marital interests. 
§ 201108. Use of financial assistance programs 
The financial assistance programs authorized by this subtitle and subtitle 
I shall be used to assist small business concerns that are engaged in— 
(1) the production of food or fiber; 
(2) ranching; 
(3) livestock raising; 
(4) aquaculture; or 
(5) any other industry relating to agriculture. 
Division B—General Business Loan 
Program 
Chapter 203—General Purpose Loans 
Sec. 
203101.
Loan authority. 
203102.
Methods of participation. 
203103.
No credit elsewhere. 
203104.
Sound and secure requirement. 
203105.
Level of participation in guaranteed loans. 
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203106.
Maximum loan amounts. 
203107.
Interest rates. 
203108.
Prepayment charges. 
203109.
Maximum term. 
203110.
Deferment of payments. 
203111.
Guarantee fees. 
203112.
Certified lenders program. 
203113.
Penalty fee on late payment. 
203114.
Yearly fee. 
203115.
Notification to Congress of significant policy or administrative changes. 
203116.
Pilot programs. 
203117.
Calculation of subsidy rate. 
203118.
Leasing. 
203119.
Real estate appraisals. 
203120.
Express loan program. 
203121.
Loan application preparation and loan servicing by qualified development companies. 
203122.
Increased veteran/reservist participation program. 
§ 203101. Loan authority 
To the extent and in such amounts as are provided in advance in appro-
priation Acts, the Administrator may make loans to small business concerns 
(including a small business concern owned by a qualified Indian tribe) for 
plant acquisition, construction, conversion, or expansion, including the ac-
quisition of land, material, supplies, equipment, and working capital. 
§ 203102. Methods of participation 
(a) IN GENERAL.—The Administrator may make a loan under section 
203101 of this title— 
(1) directly; or 
(2) in cooperation with a bank or other lending institution or any 
other entity through an agreement to participate on an immediate or 
deferred (guaranteed) basis. 
(b) LENDING LIMITS OF LENDERS.—The Administrator shall not guar-
antee a loan under the general business loan program if the sole purpose 
for requesting the guarantee is to allow the lender to exceed the legal lend-
ing limit of the lender. 
§ 203103. No credit elsewhere 
(a) IN GENERAL.—No financial assistance shall be extended under the 
general business loan program if the applicant can obtain credit elsewhere. 
(b) IMMEDIATE PARTICIPATION.—No immediate participation may be 
purchased unless it is shown that a deferred participation is not available. 
(c) DIRECT FINANCING.—No direct financing may be made unless it is 
shown that a participation is not available. 
(d) LIQUIDITY.—The Administrator shall not guarantee a loan under the 
general business loan program if the lender determines that the borrower 
is unable to obtain credit elsewhere solely because the liquidity of the lender 
depends on the sale of the guaranteed portion of the loan on the secondary 
market. 
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§ 203104. Sound and secure requirement 
(a) IN GENERAL.—A loan made under the general business loan program 
shall be of such sound value or so secured as reasonably to ensure repay-
ment. 
(b) REASONABLE DOUBT.—In applying subsection (a) in the case of a 
loan to assist a public or private organization for the disabled or to assist 
a disabled individual as provided in section 205103 of this title, any reason-
able doubt shall be resolved in favor of the applicant. 
(c) ENERGY MEASURES.—Recognizing that greater risk may be associ-
ated with a loan for an energy measure as provided in section 205105 of 
this title, in applying subsection (a) in the case of such a loan— 
(1) factors in determining sound value shall include— 
(A) quality of the product or service; 
(B) technical qualifications of the applicant or employees of the 
applicant; 
(C) sales projections; and 
(D) the financial status of the applicant; and 
(2) the loan need not be as sound as is generally required for a loan 
under the general business loan program. 
§ 203105. Level of participation in guaranteed loans 
(a) IN GENERAL.—Except as provided in subsections (b), (c), and (d), 
in an agreement to participate in a loan on a deferred basis under the gen-
eral business loan program (including a loan made under the preferred lend-
ers program), participation by the Administrator shall be equal to— 
(1) 75 percent of the balance of the financing outstanding at the 
time of disbursement of the loan, if the balance exceeds $150,000; or 
(2) 85 percent of the balance of the financing outstanding at the 
time of disbursement of the loan, if the balance is less than or equal 
to $150,000. 
(b) REDUCED PARTICIPATION ON REQUEST.— 
(1) IN GENERAL.—The guarantee percentage specified by subsection 
(a) for a loan under the general business loan program may be reduced 
on the request of the participating lender. 
(2) PROHIBITION.—The Administrator shall not use the guarantee 
percentage requested by a participating lender under paragraph (1) as 
a criterion for establishing priorities in approving loan guarantee re-
quests under the general business loan program. 
(c) PARTICIPATION UNDER EXPORT WORKING CAPITAL PROGRAM.—Not-
withstanding subsection (a), under an agreement to participate in a loan on 
a deferred basis under the export working capital program, participation by 
the Administrator shall be 90 percent. 
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(d) PARTICIPATION IN INTERNATIONAL TRADE LOAN.—In an agreement 
to participate in a loan on a deferred basis under section 205110 of this 
title, the participation by the Administrator shall not exceed 90 percent. 
§ 203106. Maximum loan amounts 
(a) TOTAL AMOUNT OUTSTANDING AND COMMITTED.—A loan shall not 
be made to a borrower under the general business loan program— 
(1) if the total amount outstanding and committed (on a deferred 
basis, through a participation on an immediate basis, or directly) to the 
borrower under the general business loan program would exceed 
$3,750,000 (or if the gross loan amount would exceed $5,000,000); or 
(2) in the case of a loan solely for the purposes provided in section 
205110 of this title, if the total amount outstanding and committed (on 
a deferred basis) to the borrower under the general business loan pro-
gram would not exceed $4,500,000 (or if the gross loan amount would 
not exceed $5,000,000), of which not more than $4,000,000 may be 
used for working capital, supplies, or financings under section 205108 
of this title for export purposes. 
(b) LOAN AMOUNT.—A loan shall not be made under the general business 
loan program, directly or in cooperation with a bank or other lending insti-
tution through an agreement to participate on an immediate basis, if the 
amount of the loan would exceed $350,000. 
§ 203107. Interest rates 
(a) MAXIMUM RATE PRESCRIBED BY THE ADMINISTRATOR.—Notwith-
standing the provisions of the constitution of any State or the laws of any 
State limiting the rate or amount of interest that may be charged, taken, 
received, or reserved, the maximum legal rate of interest on a financing 
made on a deferred basis under the general business loan program shall not 
exceed a rate prescribed by the Administrator. 
(b) DIRECT LOANS AND IMMEDIATE PARTICIPATION LOANS.—The rate 
of interest for the Administrator’s share of any direct loan or immediate 
participation loan under the general business loan program shall not exceed 
the current average market yield on outstanding marketable obligations of 
the United States with remaining periods to maturity comparable to the av-
erage maturities of such loans and adjusted to the nearest 0.125 percent, 
and an additional amount as determined by the Administrator, but not to 
exceed 1 percent per year. 
(c) PREFERRED LENDERS PROGRAM.—The maximum interest rate for a 
loan under the general business loan program that is guaranteed under the 
preferred lenders program shall not exceed the maximum interest rate, as 
determined by the Administrator, applicable to other loans guaranteed 
under the general business loan program. 
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(d) LOANS TO ASSIST THE DISABLED.—In the case of a loan under the 
general business loan program to assist a public or private organization for 
the disabled or to assist a disabled individual as provided in section 205103 
of this title, the interest rate shall be 3 percent per year. 
(e) PAYMENT OF ACCRUED INTEREST.— 
(1) IN GENERAL.—A bank or other lending institution making a 
claim for payment on the guaranteed portion of a loan made under the 
general business loan program shall be paid the accrued interest due 
on the loan from the earliest date of default to the date of payment 
of the claim at a rate not to exceed the rate of interest on the loan 
on the date of default, minus 1 percent. 
(2) LOANS SOLD ON SECONDARY MARKET.—If a loan described in 
paragraph (1) is sold on the secondary market, the amount of interest 
paid to a bank or other lending institution described in that paragraph 
from the earliest date of default to the date of payment of the claim 
shall be no more than the agreed upon rate, minus 1 percent. 
(3) APPLICABILITY.—Paragraphs (1) and (2) do not apply to loans 
made on or after October 1, 2000. 
§ 203108. Prepayment charges 
(a) IN GENERAL.—A borrower that prepays a loan guaranteed under the 
general business loan program shall remit to the Administrator a subsidy 
recoupment fee calculated in accordance with subsection (b) if— 
(1) the loan is for a term of not less than 15 years; 
(2) the prepayment is voluntary; 
(3) the amount of prepayment in any calendar year is more than 25 
percent of the outstanding balance of the loan; and 
(4) the prepayment is made within the 1st 3 years after disburse-
ment of the loan proceeds. 
(b) SUBSIDY RECOUPMENT FEE.—The subsidy recoupment fee charged 
under subsection (a) shall be— 
(1) 5 percent of the amount of prepayment, if the borrower prepays 
during the 1st year after disbursement; 
(2) 3 percent of the amount of prepayment, if the borrower prepays 
during the 2d year after disbursement; and 
(3) 1 percent of the amount of prepayment, if the borrower prepays 
during the 3d year after disbursement. 
§ 203109. Maximum term 
(a) IN GENERAL.—Except as provided in subsection (b), no loan (includ-
ing a loan renewal or extension) shall be made under the general business 
loan program for a term or terms exceeding 25 years. 
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(b) EXCEPTION.—Any portion of a loan that is made under the general 
business loan program for the purpose of acquiring real property or con-
structing, converting, or expanding a facility may have a term of 25 years 
plus such additional period as is estimated may be required to complete the 
construction, conversion, or expansion. 
§ 203110. Deferment of payments 
The Administrator may defer payments on the principal of a loan under 
the general business loan program for a grace period, and use such other 
methods as the Administrator considers necessary and appropriate, to en-
sure the successful establishment and operation of a small business concern. 
§ 203111. Guarantee fees 
(a) IN GENERAL.—With respect to a loan guaranteed under the general 
business loan program (other than a loan that is repayable in 1 year or 
less), the Administrator shall collect a guarantee fee, which shall be payable 
by the participating lender, and may be charged to the borrower, as follows: 
(1) A guarantee fee of not to exceed 2 percent of the deferred par-
ticipation share of a total loan amount that is not more than $150,000. 
(2) A guarantee fee of not to exceed 3 percent of the deferred par-
ticipation share of a total loan amount that is more than $150,000, 
but not more than $700,000. 
(3) A guarantee fee of not to exceed 3.5 percent of the deferred par-
ticipation share of a total loan amount that is more than $700,000. 
(4) In addition to the guarantee fee under paragraph (3), a guar-
antee fee equal to 0.25 percent of any portion of the deferred participa-
tion share that is more than $1,000,000. 
(b) RETENTION OF CERTAIN FEES.—A lender participating in the gen-
eral business loan program may retain not more than 25 percent of a fee 
collected under subsection (a)(1). 
§ 203112. Certified lenders program 
(a) IN GENERAL.—The Administrator may establish a certified lenders 
program for lenders that establish their knowledge of the laws (including 
regulations) concerning the guaranteed loan program and their proficiency 
in program requirements. 
(b) SUSPENSION OR REVOCATION.—The designation of a lender as a cer-
tified lender shall be suspended or revoked at any time that the Adminis-
trator determines that the lender is not adhering to regulations prescribed 
by the Administrator or that the loss experience of the lender is excessive 
as compared with that of other lenders, but the suspension or revocation 
shall not affect any outstanding guarantee. 
(c) UNIFORM AND SIMPLIFIED LOAN FORM.—To encourage all lending 
institutions and other entities making loans under the general business loan 
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program to provide loans of $50,000 or less in guarantees to eligible small 
business loan applicants, the Administrator shall develop, and allow partici-
pating lenders to solely use, a uniform and simplified loan form for such 
loans. 
(d) LOAN LIQUIDATION.— 
(1) IN GENERAL.—The Administrator may permit a lender partici-
pating in the certified lenders program to liquidate a loan made with 
a guarantee from the Administrator in accordance with a liquidation 
plan approved by the Administrator. 
(2) AUTOMATIC APPROVAL.—If the Administrator does not approve 
or deny a request for approval of a liquidation plan within 10 business 
days after the date on which the request is made (or with respect to 
any routine liquidation activity under such a plan, within 5 business 
days), the request shall be deemed to be approved. 
§ 203113. Penalty fee on late payment 
The Administrator may permit a participating lender to impose and col-
lect a reasonable penalty fee on late payment of a loan guaranteed under 
the general business loan program in an amount not to exceed 5 percent 
of the monthly loan payment per month plus interest. 
§ 203114. Yearly fee 
(a) DEFINITION OF COST.—In this section, the term ‘‘cost’’ has the 
meaning given the term in section 502 of the Federal Credit Reform Act 
of 1990 (2 U.S.C. 661a). 
(b) FEE.—With respect to a loan approved under the general business 
loan program, the Administrator shall assess, collect, and retain a fee, not 
to exceed 0.55 percent per year of the outstanding balance of the deferred 
participation share of the loan, in an amount established once annually by 
the Administrator in the Administrator’s annual budget request to Con-
gress, as necessary to reduce to zero the cost to the Administrator of mak-
ing guarantees under the general business loan program. 
(c) PAYER.—The yearly fee assessed under subsection (b) shall be pay-
able by the participating lender and shall not be charged to the borrower. 
(d) LOWERING OF BORROWER FEES.—If the Administrator determines 
that fees paid by lenders and by small business borrowers for guarantees 
under the general business loan program may be reduced, consistent with 
reducing to zero the cost to the Administrator of making such guarantees— 
(1) the Administrator shall first consider reducing fees paid by small 
business borrowers under paragraphs (1) to (3) of section 203111(a) 
of this title, to the maximum extent possible; and 
(2) fees paid by small business borrowers shall not be increased 
above the levels in effect on December 8, 2004. 
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§ 203115. Notification to Congress of significant policy or 
administrative changes 
Not later than 15 days before making any significant policy or adminis-
trative change affecting the operation of the general business loan program, 
the Administrator shall notify the Committee on Small Business and Entre-
preneurship of the Senate and the Committee on Small Business of the 
House of Representatives of the change. 
§ 203116. Pilot programs 
(a) DEFINITION OF PILOT PROGRAM.—In this section, the term ‘‘pilot 
program’’ means a lending program initiative, project, innovation, or other 
activity not specifically authorized by law. 
(b) LIMITATION.—Not more than 10 percent of the number of loans 
guaranteed in any fiscal year under the general business loan program may 
be awarded as part of a pilot program commenced on or after October 1, 
1996. 
(c) LOW DOCUMENTATION LOAN PROGRAM.— 
(1) IN GENERAL.—The Administrator may carry out the low docu-
mentation loan program for loans of $100,000 or less only through 
lenders with significant experience in making small business loans. 
(2) REGULATIONS.—The Administrator shall promulgate regulations 
defining the experience necessary for participation as a lender in the 
low documentation loan program. 
§ 203117. Calculation of subsidy rate 
All fees, interest, and profits received and retained by the Administrator 
under the general business loan program shall be included in the calcula-
tions made by the Director of the Office of Management and Budget to off-
set the cost (as defined in section 502 of the Federal Credit Reform Act 
of 1990 (2 U.S.C. 661a)) to the Administrator of purchasing and guaran-
teeing loans under this subtitle. 
§ 203118. Leasing 
In addition to such other lease arrangements as the Administrator may 
authorize, a borrower may permanently lease to 1 or more tenants not more 
than 20 percent of any property constructed with the proceeds of a loan 
guaranteed under the general business loan program if the borrower perma-
nently occupies and uses not less than 60 percent of the total business space 
in the property. 
§ 203119. Real estate appraisals 
With respect to a loan under the general business loan program that is 
secured by commercial real property, an appraisal of the property by a State 
licensed or certified appraiser— 
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(1) shall be required by the Administrator in connection with any 
such loan for more than $250,000; or 
(2) may be required by the Administrator or the lender in connection 
with any such loan for $250,000 or less, if an appraisal is necessary 
for appropriate evaluation of creditworthiness. 
§ 203120. Express loan program 
(a) RESTRICTION TO EXPRESS LENDER.—The authority to make an ex-
press loan shall be limited to lenders that the Administrator considers quali-
fied to make express loans. 
(b) EFFECT OF DESIGNATION.—Designation as an express lender for 
purposes of making an express loan does not preclude the lender from tak-
ing any other action authorized by the Administrator for that lender under 
the general business loan program. 
(c) RETENTION OF DESIGNATION OF EXPRESS LENDER.—An express 
lender shall retain that designation unless— 
(1) the Administrator determines that the express lender has violated 
the law (including regulations); or 
(2) the Administrator modifies the requirements to be an express 
lender and the lender no longer satisfies those requirements. 
(d) MAXIMUM LOAN AMOUNT.—The maximum loan amount under the 
express loan program is $350,000. 
(e) OPTION TO PARTICIPATE.—Except as otherwise provided in this sec-
tion, the Administrator shall take no regulatory, policy, or administrative 
action, without regard to whether the action requires notification under sec-
tion 203115 of this title, that has the effect of requiring a lender to make 
an express loan. 
(f) RENEWABLE ENERGY AND ENERGY EFFICIENCY.—The Administrator 
may make a loan under the express loan program for the purpose of— 
(1) purchasing a renewable energy system; or 
(2) carrying out an energy efficiency project for a small business 
concern. 
(g) GUARANTEE FEE WAIVER FOR VETERANS.— 
(1) DEFINITION OF VETERAN OR SPOUSE OF A VETERAN.—In this 
subsection, the term ‘‘veteran or spouse of a veteran’’ means— 
(A) a veteran (as defined in section 101102 of this title); 
(B) an individual who is eligible to participate in the transition 
assistance program under section 1144 of title 10; 
(C) a member of a reserve component of the Armed Forces 
named in section 10101 of title 10; 
(D) the spouse of an individual described in subparagraph (A), 
(B), or (C); and 
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(E) the surviving spouse (as defined in section 101 of title 38) 
of an individual described in subparagraph (A), (B), or (C) who 
died while serving on active duty or as a result of a disability that 
is service-connected (as defined in that section). 
(2) GUARANTEE FEE WAIVER.—The Administrator shall not collect 
a guarantee fee described in section 203111 of this title in connection 
with a loan made under this section to a veteran or spouse of a veteran 
on or after October 1, 2015. 
(3) EXCEPTION.—If the President’s budget for a fiscal year sub-
mitted to Congress pursuant to section 1105(a) of title 31 includes a 
cost for the program established under this section that is above zero, 
paragraph (2) shall not apply to loans made during the fiscal year. 
(h) RECOVERY OPPORTUNITY LOANS.— 
(1) IN GENERAL.—During the 5-year period beginning on the date 
on which the President declares a major disaster, the Administrator 
may guarantee an express loan to a small business concern located in 
a disaster area in accordance with this subsection. 
(2) MAXIMUMS.—For a loan guaranteed under paragraph (1)— 
(A) the maximum loan amount is $150,000; and 
(B) the guarantee rate shall be not more than 85 percent. 
(3) OVERALL CAP.—A loan guaranteed under paragraph (1) shall 
not be counted in determining the amount of loans made to a borrower 
for purposes of subsection (d). 
(4) OPERATIONS.—A small business concern receiving a loan guaran-
teed under paragraph (1) shall certify that the small business concern 
was in operation on the date on which the applicable major disaster 
occurred as a condition of receiving the loan. 
(5) REPAYMENT ABILITY.—A loan guaranteed under paragraph (1) 
may be made only to a small business concern that demonstrates, to 
the satisfaction of the Administrator, sufficient capacity to repay the 
loan. 
(6) TIMING OF PAYMENT OF GUARANTEES.— 
(A) IN GENERAL.—Not later than 90 days after the date on 
which a request for purchase is filed with the Administrator, the 
Administrator shall determine whether to pay the guaranteed por-
tion of the loan. 
(B) RECAPTURE.—Notwithstanding any other provision of law, 
unless there is a subsequent finding of fraud by a court of com-
petent jurisdiction relating to a loan guaranteed under paragraph 
(1), on and after the date that is 6 months after the date on which 
the Administrator determines to pay the guaranteed portion of the 
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129 
loan, the Administrator shall not attempt to recapture the paid 
guarantee. 
(7) FEES.— 
(A) IN GENERAL.—Unless the Administrator waives the guar-
antee fee that would otherwise be collected by the Administrator 
under section 203111 of this title for a loan guaranteed under 
paragraph (1), and except as provided in subparagraph (B), the 
guarantee fee for the loan shall be equal to the guarantee fee that 
the Administrator would collect if the guarantee rate for the loan 
were 50 percent. 
(B) EXCEPTION.—Subparagraph (A) shall not apply if— 
(i) the cost of carrying out the general business loan pro-
gram in a fiscal year is more than zero; and 
(ii) that cost is directly attributable to the cost of guaran-
teeing loans under paragraph (1). 
(8) REGULATIONS.—Not later than 270 days after November 25, 
2015, the Administrator shall promulgate regulations to carry out this 
subsection. 
§ 203121. Loan application preparation and loan servicing 
by qualified development companies 
Notwithstanding any other provision of law, a qualified development com-
pany (as defined in section 331101 of this title) may— 
(1) prepare applications for deferred participation loans under the 
general business loan program; and 
(2) service loans under the general business loan program and 
charge a reasonable fee for servicing the loans. 
§ 203122. Increased veteran/reservist participation program 
(a) DEFINITIONS.—In this section: 
(1) COST.—The term ‘‘cost’’ has the meaning given the term in sec-
tion 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a). 
(2) PILOT PROGRAM.—The term ‘‘pilot program’’ means the pilot 
program established under subsection (b). 
(3) VETERAN/RESERVIST PARTICIPATION LOAN.—The term ‘‘veteran/ 
reservist participation loan’’ means a loan made under the general busi-
ness loan program to a small business concern owned and controlled 
by veterans or by reservists. 
(b) ESTABLISHMENT.—The Administrator shall establish and carry out a 
pilot program under which the Administrator shall reduce the fees for vet-
eran/reservist participation loans. 
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(c) DURATION.—The pilot program shall terminate at the end of the 2d 
full fiscal year after the date on which the Administrator establishes the 
pilot program. 
(d) MAXIMUM
PARTICIPATION.—A veteran/reservist participation loan 
shall include the maximum participation levels by the Administrator per-
mitted for loans made under the general business loan program. 
(e) FEES.— 
(1) IN GENERAL.—The fee on a veteran/reservist participation loan 
shall be equal to 50 percent of the fee otherwise applicable to that loan 
under section 203111 of this title. 
(2) WAIVER.—The Administrator may waive paragraph (1) for a fis-
cal year if— 
(A) for the fiscal year before that fiscal year, the annual esti-
mated rate of default of veteran/reservist participation loans ex-
ceeds that of loans made under the general business loan program 
that are not veteran/reservist participation loans; 
(B) the cost to the Administrator of making loans under the 
general business loan program is greater than zero and the cost 
is directly attributable to the cost of making veteran/reservist par-
ticipation loans; and 
(C) no additional source of revenue authority is available to re-
duce the cost of making loans under the general business loan pro-
gram to zero. 
(3) EFFECT OF WAIVER.—If the Administrator waives the reduction 
of fees under paragraph (2), the Administrator— 
(A) shall not assess or collect fees in an amount greater than 
necessary to ensure that the cost of the general business loan pro-
gram is not greater than zero; and 
(B) shall reinstate the fee reductions under paragraph (1) when 
the conditions in paragraph (2) no longer apply. 
(4) NO INCREASE OF FEES.—The Administrator shall not increase 
the fees under 203111 of this title on loans made under the general 
business loan program that are not veteran/reservist participation loans 
as a direct result of the pilot program. 
(f) GAO REPORT.— 
(1) IN GENERAL.—Not later than 1 year after the date on which the 
pilot program terminates, the Comptroller General shall submit to the 
Committee on Small Business of the House of Representatives and the 
Committee on Small Business and Entrepreneurship of the Senate a 
report on the pilot program. 
(2) CONTENTS.—The report under paragraph (1) shall include— 
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(A) the number of veteran/reservist participation loans for which 
fees were reduced under the pilot program; 
(B) a description of the impact of the pilot program on the gen-
eral business loan program; 
(C) an evaluation of the efficacy and potential fraud and abuse 
of the pilot program; and 
(D) recommendations for improving the pilot program. 
Chapter 205—Special Purpose Loans 
Sec. 
205101.
Applicability of chapter 203. 
205102.
Residential or commercial construction or rehabilitation for sale. 
205103.
The disabled. 
205104.
Unemployed or low-income individuals. 
205105.
Energy measures. 
205106.
Pollution control facilities. 
205107.
Certified development companies. 
205108.
Export working capital program. 
205109.
Qualified employee trusts. 
205110.
International trade. 
205111.
Business development. 
205112.
Closure of defense installations; termination of defense programs; veterans and cer-
tain other individuals associated with defense. 
205113.
Loans for energy efficient technologies. 
205114.
Export express program. 
§ 205101. Applicability of chapter 203 
The provisions of chapter 203 apply to this chapter except to the extent 
that any such provision is inconsistent with a provision of this chapter. 
§ 205102. Residential or commercial construction or reha-
bilitation for sale 
(a) IN GENERAL.—The Administrator may provide a loan under the gen-
eral business loan program to finance residential or commercial construction 
or rehabilitation for sale. 
(b) LIMITATION.—A loan under subsection (a) shall not be used primarily 
for the acquisition of land. 
§ 205103. The disabled 
The Administrator may provide a guaranteed loan under the general busi-
ness loan program to assist a public or private organization for the disabled 
or a disabled individual (including a service-disabled veteran) in estab-
lishing, acquiring, or operating a small business concern. 
§ 205104. Unemployed or low-income individuals 
(a) IMPLEMENTATION.—The general business loan program shall be used 
to— 
(1) assist in the establishment, preservation, and strengthening of 
small business concerns and improve the managerial skills employed in 
small business concerns, with special attention to, and particular em-
phasis on the preservation or establishment of, small business concerns 
that are— 
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(A) located in urban or rural areas with high proportions of un-
employed or low-income individuals; or 
(B) owned by low-income individuals; and 
(2) mobilize for those objectives private as well as public managerial 
skills and resources. 
(b) LOAN AUTHORITY.—The Administrator may provide a loan under the 
general business loan program to a small business concern or to a qualified 
person seeking to establish a small business concern if the Administrator 
determines that providing the loan will further the purposes stated in sub-
section (a). 
§ 205105. Energy measures 
(a) IN GENERAL.—The Administrator may provide a loan under the gen-
eral business loan program to provide assistance (including startup assist-
ance) to a small business concern to enable the small business concern to 
design architecturally, or engineer, manufacture, distribute, market, install, 
or service, an energy measure. 
(b) LIMITATION.—The proceeds of a loan under subsection (a) shall not 
be used primarily for research and development. 
§ 205106. Pollution control facilities 
(a) IN GENERAL.—The Administrator may provide a deferred participa-
tion loan under the general business loan program to finance the planning, 
design, or installation of a pollution control facility for the purposes speci-
fied in section 404 of the Small Business Investment Act of 1958 (15 
U.S.C. 694–1), as in effect before the date of repeal of that section. 
(b) LIMIT ON AMOUNT.—A loan under subsection (a) may not result in 
a total amount outstanding and committed (on a deferred basis) to a bor-
rower under the general business loan program of more than $1,000,000. 
§ 205107. Certified development companies 
The Administrator may provide financing under the general business loan 
program to certified development companies for the purposes of, and subject 
to the restrictions in, the certified development company program. 
§ 205108. Export working capital program 
(a) IN GENERAL.—Under a program to be known as the export working 
capital program, the Administrator may provide an extension of credit, 
standby letter of credit, revolving line of credit for export purposes, or other 
financing to enable a small business concern (including a small business ex-
port trading company and a small business export management company) 
to develop a foreign market. 
(b) RATE OF INTEREST.—A bank or participating lending institution may 
establish such a rate of interest on a financing under subsection (a) as is 
legal and reasonable. 
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(c) AMOUNT.—The amount of a financing under subsection (a) shall be 
not more than $5,000,000. 
(d) FEES.— 
(1) IN GENERAL.—For a financing under subsection (a), the Admin-
istrator shall collect the fee assessed under section 203114 of this title 
not more frequently than once each year. 
(2) UNTAPPED CREDIT.—The Administrator shall not assess a fee 
on capital that is not accessed by the small business concern. 
(e) CONSIDERATIONS.—When considering an application for financing 
under subsection (a), the Administrator shall give weight to export-related 
benefits, including— 
(1) the opening of new markets for United States goods and services 
abroad; and 
(2) encouragement of the involvement of small business concerns (in-
cluding agricultural concerns) in the export market. 
(f) MARKETING.—The Administrator shall aggressively market the export 
working capital program to small business concerns. 
§ 205109. Qualified employee trusts 
(a) DEFINITION OF QUALIFIED EMPLOYEE TRUST.—In this section: 
(1) TRUST MAINTAINED BY SMALL BUSINESS CONCERN.—The term 
‘‘qualified employee trust’’, with respect to a small business concern, 
means a trust— 
(A) that forms part of an employee stock ownership plan (as de-
fined in section 4975(e) of the Internal Revenue Code of 1986 (26 
U.S.C. 4975(e)) that— 
(i) is maintained by the small business concern; and 
(ii) provides that each participant in the plan is entitled to 
direct the plan as to the manner in which voting rights under 
qualifying employer securities (as defined in section 4975(e) 
of the Internal Revenue Code of 1986 (26 U.S.C. 4975(e)) 
that are allocated to the account of the participant are to be 
exercised with respect to a corporate matter that (by law or 
charter) must be decided by a majority vote of outstanding 
common shares voted; and 
(B) the trustee of which enters into an agreement with the Ad-
ministrator that is binding on the trust and on the small business 
concern and provides that— 
(i) a loan guaranteed under the general business loan pro-
gram shall be used solely for the purchase of qualifying em-
ployer securities of the small business concern; 
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(ii) all funds acquired by the small business concern in the 
purchase shall be used by the small business concern solely 
for the purposes for which the loan was guaranteed; 
(iii) the small business concern will provide such funds as 
are necessary for the timely repayment of the loan, and the 
property of the small business concern shall be available as 
security for repayment of the loan; and 
(iv) all qualifying employer securities acquired by the trust 
in the purchase shall be allocated to the accounts of partici-
pants in the plan who are entitled to share in the allocation, 
and each participant has a nonforfeitable right, not later than 
the date on which the loan is repaid, to all such qualifying 
employer securities that are allocated to the participant’s ac-
count. 
(2) TRUST
MAINTAINED
BY
EMPLOYEE
ORGANIZATION.—A trust 
maintained by an employee organization may be treated as a qualified 
employee trust with respect to a small business concern in accordance 
with regulations prescribed under subsection (f). 
(b) IN GENERAL.—The Administrator may guarantee a loan under the 
general business loan program to a qualified employee trust with respect to 
a small business concern, on the same basis as if the qualified employee 
trust were the same entity as the small business concern, for the purpose 
of purchasing stock of the small business concern under a plan approved 
by the Administrator that, when carried out, results in the qualified em-
ployee trust owning at least 51 percent of the stock of the small business 
concern. 
(c) PLAN.— 
(1) SUBMISSION
WITH
APPLICATION.—A plan requiring approval 
under subsection (b) shall be submitted to the Administrator by the 
trustee of the qualified employee trust with the application for a loan 
guarantee. 
(2) AGREEMENT.—The plan shall include an agreement with the Ad-
ministrator that is binding on the qualified employee trust and on the 
small business concern and provides that— 
(A) not later than the date on which the loan guaranteed under 
subsection (b) is repaid (or as soon after that date as is consistent 
with the requirements of section 401(a) of the Internal Revenue 
Code of 1986 (26 U.S.C. 401(a))), at least 51 percent of the total 
stock of the small business concern shall be allocated to the ac-
counts of at least 51 percent of the employees of the small busi-
ness concern who are entitled to share in the allocation; 
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(B) there will be periodic reviews of the role in the management 
of the small business concern of employees to whose accounts 
stock is allocated; and 
(C) there will be adequate management to ensure management 
expertise and continuity. 
(d) CRITERIA.— 
(1) IN GENERAL.—Except as provided in paragraph (2), in deter-
mining whether to guarantee a loan under this section, the Adminis-
trator shall not use the individual business experience or personal as-
sets of employee-owners as criteria. 
(2) EXCEPTION.—To the extent that any employee-owner assumes 
managerial responsibilities, the Administrator may consider the busi-
ness expertise of that employee-owner. 
(e) TREATMENT OF CORPORATION AS SMALL BUSINESS CONCERN.—For 
purposes of this section, a corporation that is controlled by any other person 
shall be treated as a small business concern if the corporation would, after 
the plan under subsection (c) is carried out, be treated as a small business 
concern. 
(f) REGULATIONS RELATING TO TREATMENT OF A TRUST MAINTAINED 
BY AN EMPLOYEE ORGANIZATION.—The Administrator may prescribe regu-
lations under which a trust maintained by an employee organization may 
be treated as a qualified employee trust with respect to a small business 
concern if— 
(1) the employee organization represents at least 51 percent of the 
employees of the small business concern; 
(2) the small business concern maintains a plan that— 
(A) is an employee benefit plan that is designed to invest pri-
marily in qualifying employer securities (as defined in section 
4975(e) of the Internal Revenue Code of 1986 (26 U.S.C. 
4975(e))); 
(B) provides that each participant in the plan is entitled to di-
rect the plan as to the manner in which voting rights under quali-
fying employer securities that are allocated to the account of the 
participant are to be exercised with respect to a corporate matter 
that (by law or charter) must be decided by a majority vote of the 
outstanding common shares voted; 
(C) provides that each participant who is entitled to distribution 
from the plan has a right, in the case of qualifying employer secu-
rities that are not readily tradable on an established market, to 
require that the small business concern repurchase the securities 
under a fair valuation formula; and 
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(D) meets such other requirements (similar to requirements ap-
plicable to employee stock ownership plans (as defined in section 
4975(e) of the Internal Revenue Code of 1986 (26 U.S.C. 
4975(e)))) as the Administrator may prescribe; and 
(3) in the case of a loan guarantee under the general business loan 
program, the employee organization enters into an agreement with the 
Administrator that is described in subsection (a)(1)(B). 
(g) REPORTS.—The Administrator shall— 
(1) compile a separate list of applications for assistance under this 
section, indicating which applications are accepted and which denied; 
and 
(2) periodically submit to Congress a report on the status of em-
ployee-owned firms assisted by the Administrator. 
§ 205110. International trade 
(a) IN GENERAL.—If the Administrator determines that a loan guaran-
teed under the general business loan program will allow an eligible small 
business concern that is engaged in or adversely affected by international 
trade to improve its competitive position, the Administrator may provide a 
loan guarantee to assist the small business concern— 
(1) in the financing of the acquisition, construction, renovation, mod-
ernization, improvement, or expansion of productive facilities or equip-
ment to be used in the United States in the production of a good or 
service involved in international trade; 
(2) in the refinancing of existing indebtedness that is not structured 
with reasonable terms and conditions, including any debt that qualifies 
for refinancing under any other provision of this division; or 
(3) by providing working capital. 
(b) SECURITY.— 
(1) IN GENERAL.—Except as provided in paragraph (2), a loan 
under this section shall be secured by a 1st lien position or 1st mort-
gage on the property or equipment financed by the loan or on other 
assets of the small business concern. 
(2) EXCEPTION.—A loan under this section may be secured by a 2d 
lien position on the property or equipment financed by the loan or on 
other assets of the small business concern if the Administrator deter-
mines that the lien provides adequate assurance of the payment of the 
loan. 
(c) ENGAGEMENT IN INTERNATIONAL TRADE.—For purposes of this sec-
tion, a small business concern shall be considered to be engaged in inter-
national trade if, as determined by the Administrator, the small business 
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concern is in a position to expand existing export markets or develop new 
export markets. 
(d) ADVERSE EFFECT OF INTERNATIONAL TRADE.—For purposes of this 
section, a small business concern shall be considered to be adversely affected 
by international trade if, as determined by the Administrator, the small 
business concern— 
(1) is confronting increased competition with foreign firms in the rel-
evant market; and 
(2) is injured by such competition. 
(e) FINDINGS BY CERTAIN FEDERAL AGENCIES.—For purposes of sub-
section (d)(2), the Administrator shall accept any finding of injury by the 
International Trade Commission or any finding of injury by the Secretary 
of Commerce under chapter 3 of title II of the Trade Act of 1974 (19 
U.S.C. 2341 et seq.). 
(f) LIST OF EXPORT FINANCE LENDERS.— 
(1) PUBLICATION.—The Administrator shall publish an annual list 
of the banks and participating lending institutions that, during the 1- 
year period ending on the date of publication of the list, have made 
loans guaranteed by the Administrator under— 
(A) this section; 
(B) section 205108 of this title; or 
(C) section 205114 of this title. 
(2) AVAILABILITY.—The Administrator shall— 
(A) post the list published under paragraph (1) on the SBA 
website; and 
(B) make the list available, on request, at each SBA district of-
fice. 
§ 205111. Business development 
(a) IN GENERAL.—The Administrator may make a loan under the gen-
eral business loan program to a small business concern that is eligible for 
assistance under the business development program. 
(b) REQUIREMENTS.—Assistance may be provided under subsection (a) if 
the Administrator determines that— 
(1) the type and amount of assistance requested by a small business 
concern is not otherwise available on reasonable terms from other 
sources; 
(2) with the assistance, the small business concern has a reasonable 
prospect for operating soundly and profitably within a reasonable pe-
riod of time; 
(3) the proceeds of the assistance will be used within a reasonable 
time— 
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(A) for plant construction, conversion, or expansion, including 
the acquisition of equipment, facilities, machinery, supplies, or ma-
terial; or 
(B) to supply the small business concern with working capital 
to be used in the manufacture of articles, equipment, supplies, or 
material for defense or civilian production or as may be necessary 
to ensure a well-balanced national economy; and 
(4) the assistance is of such sound value as reasonably to ensure that 
the terms under which the assistance is provided will not be breached 
by the small business concern. 
(c) LIMIT ON AMOUNT.— 
(1) IN GENERAL.—No loan shall be made under this section if the 
total amount outstanding and committed (on a deferred basis, through 
a participation on an immediate basis, or directly) to the borrower 
under the general business loan program would exceed $750,000. 
(2) AMOUNT OF PARTICIPATION.—Subject to paragraph (1), in an 
agreement to participate in a loan on a deferred (guaranteed) basis, 
participation by the Administrator shall be not less than 85 percent of 
the balance of the financing outstanding at the time of disbursement. 
(d) RATE OF INTEREST.—The rate of interest on a financing made on 
a deferred (guaranteed) basis shall be an amount that is legal and reason-
able. 
(e) LIMITATIONS.— 
(1) IN GENERAL.—A financing under this section shall be subject to 
the limitations stated in this subsection. 
(2) IMMEDIATE FINANCING.—No immediate participation may be 
purchased unless it is shown that a deferred participation is not avail-
able. 
(3) DIRECT FINANCING.—No direct financing may be made unless 
it is shown that a participation is unavailable. 
(f) SECURED DEBT INSTRUMENT.—A direct loan or the Administrator’s 
share of an immediate participation loan under this section shall be any se-
cured debt instrument— 
(1) that is subordinated by its terms to all other borrowings of the 
issuer; 
(2) the rate of interest on which does not exceed the current average 
market yield on outstanding marketable obligations of the United 
States with remaining periods to maturity comparable to the average 
maturities of such loans and adjusted to the nearest 0.125 percent; 
(3) the term of which is not more than 25 years; 
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(4) the principal on which is amortized at such a rate as the Admin-
istrator considers appropriate; and 
(5) the interest on which is payable not less often than annually. 
§ 205112. Closure of defense installations; termination of de-
fense programs; veterans and certain other indi-
viduals associated with defense 
(a) DEFINITION OF QUALIFIED INDIVIDUAL.—In this section, the term 
‘‘qualified individual’’ means— 
(1) a member of the Armed Forces honorably discharged from active 
duty involuntarily or under a program providing bonuses or other in-
ducements to encourage voluntary separation or early retirement; 
(2) a civilian employee of the Department of Defense involuntarily 
separated from Federal service or retired under a program offering in-
ducements to encourage early retirement; or 
(3) an employee of a prime contractor, subcontractor at any tier, or 
supplier at any tier of a Department of Defense program whose em-
ployment is involuntarily terminated (or voluntarily terminated under 
a program offering inducements to encourage voluntary separation or 
early retirement) due to the termination or substantial reduction of a 
Department of Defense program. 
(b) LOANS.—The Administrator may make a loan on a guaranteed basis 
under the general business loan program— 
(1) to a small business concern that has been (or can reasonably be 
expected to be) detrimentally affected by— 
(A) the closure or substantial reduction of a Department of De-
fense installation; or 
(B) the termination or substantial reduction of a Department 
of Defense program on which the small business concern was a 
prime contractor, subcontractor at any tier, or supplier at any tier; 
or 
(2) to a qualified individual or a veteran seeking to establish (or ac-
quire) and operate a small business concern. 
(c) RESOLUTION OF DOUBT.—Recognizing that greater risk may be asso-
ciated with a loan to a small business concern described in subsection 
(b)(1), in making a determination regarding the sound value of the proposed 
loan under section 203104, any reasonable doubt concerning the small busi-
ness concern’s proposed business plan for transition to nondefense-related 
markets shall be resolved in favor of the loan applicant. 
(d) AMOUNTS OF LOANS.—Loans under this section shall be authorized 
in such amounts as are provided in advance in appropriation Acts for the 
purposes of loans under this section. 
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140 
(e) JOB CREATION AND COMMUNITY BENEFIT.—In providing assistance 
under this section, the Administrator shall develop procedures to ensure, to 
the maximum extent practicable, that the assistance is used for projects 
that— 
(1) have the greatest potential for— 
(A) creating new jobs for individuals whose employment is invol-
untarily terminated due to reductions in Federal defense expendi-
tures; or 
(B) preventing the loss of jobs by employees of small business 
concerns described in subsection (b)(1); and 
(2) have substantial potential for stimulating new economic activity 
in communities most affected by reductions in Federal defense expendi-
tures. 
§ 205113. Loans for energy efficient technologies 
(a) DEFINITIONS.—In this section: 
(1) COST.—The term ‘‘cost’’ has the meaning given the term in sec-
tion 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a). 
(2) COVERED ENERGY EFFICIENCY LOAN.—The term ‘‘covered en-
ergy efficiency loan’’ means a loan— 
(A) made under the general business loan program; and 
(B) the proceeds of which are used to— 
(i) purchase energy efficient designs, equipment, or fix-
tures; or 
(ii) reduce the energy consumption of the borrower by 10 
percent or more. 
(3) PILOT PROGRAM.—The term ‘‘pilot program’’ means the pilot 
program established under subsection (b). 
(b) ESTABLISHMENT.—The Administrator shall establish and carry out a 
pilot program under which the Administrator shall reduce the fees for cov-
ered energy efficiency loans. 
(c) DURATION.—The pilot program shall terminate at the end of the 2d 
full fiscal year after the date on which the Administrator establishes the 
pilot program. 
(d) MAXIMUM PARTICIPATION.—A covered energy efficiency loan shall in-
clude the maximum participation levels by the Administrator permitted for 
loans made under this division. 
(e) FEES.— 
(1) IN GENERAL.—The fee on a covered energy efficiency loan shall 
be equal to 50 percent of the fee otherwise applicable to that loan 
under 203111 of this title. 
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(2) WAIVER.—The Administrator may waive paragraph (1) for a fis-
cal year if— 
(A) for the fiscal year before that fiscal year, the annual rate 
of default of covered energy efficiency loans exceeds that of loans 
made under this division that are not covered energy efficiency 
loans; 
(B) the cost to the Administrator of making loans under this 
division— 
(i) is greater than zero; and 
(ii) is directly attributable to the cost of making covered 
energy efficiency loans; and 
(C) no additional sources of revenue authority are available to 
reduce the cost of making loans under this division to zero. 
(3) EFFECT OF WAIVER.—If the Administrator waives the reduction 
of fees under paragraph (2), the Administrator— 
(A) shall not assess or collect fees in an amount greater than 
necessary to ensure that the cost of the program under this divi-
sion is not greater than zero; and 
(B) shall reinstate the fee reductions under paragraph (1) when 
the conditions in paragraph (2) no longer apply. 
(4) NO INCREASE OF FEES.—The Administrator shall not increase 
the fees under section 203111 of this title on loans made under this 
division that are not covered energy efficiency loans as a direct result 
of the pilot program. 
(f) GAO REPORT.— 
(1) IN GENERAL.—Not later than 1 year after the date on which the 
pilot program terminates, the Comptroller General shall submit to the 
Committee on Small Business of the House of Representatives and the 
Committee on Small Business and Entrepreneurship of the Senate a 
report on the pilot program. 
(2) CONTENTS.—The report under paragraph (1) shall include— 
(A) the number of covered energy efficiency loans for which fees 
were reduced under the pilot program; 
(B) a description of the energy efficiency savings with the pilot 
program; 
(C) a description of the impact of the pilot program on the pro-
gram under this division; 
(D) an evaluation of the efficacy and potential fraud and abuse 
of the pilot program; and 
(E) recommendations for improving the pilot program. 
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as the Administrator determines will result in the safe and sound operation 
of the small business lending company. 
(b) LIMIT ON DELEGABILITY.—The Administrator may not delegate the 
authority granted under subsection (a) except to an Associate Deputy Ad-
ministrator. 
(c) REGULATIONS.—The Administrator shall issue regulations outlining 
the conditions under which the Administrator may determine the level of 
capital under subsection (a). 
§ 207103. Civil action 
If a small business lending company violates this subtitle or subtitle I, 
the Administrator may bring a civil action in United States district court 
to terminate the rights, privileges, and franchises of the small business lend-
ing company under this subtitle or subtitle I. 
§ 207104. Revocation or suspension of loan authority; cease 
and desist orders 
(a) REVOCATION OR SUSPENSION OF LOAN AUTHORITY.— 
(1) IN GENERAL.—The Administrator may revoke or suspend the au-
thority of a small business lending company or a non-federally regu-
lated lender to make, service, or liquidate business loans under the gen-
eral business loan program— 
(A) for false statements knowingly made in any written submis-
sion required under this subtitle; 
(B) for omission of a material fact from any written submission 
required under this subtitle; 
(C) for willful or repeated violation of this subtitle; 
(D) for willful or repeated violation of any condition imposed by 
the Administrator with respect to any application, request, or 
agreement under this subtitle; or 
(E) for violation of any cease and desist order of the Adminis-
trator under this chapter. 
(2) LIMITATION ON DELEGABILITY.—The Administrator may dele-
gate power to revoke or suspend authority under paragraph (1) only 
to the Deputy Administrator and only if the Administrator is unavail-
able to take the action. 
(3) PROCEDURE.— 
(A) IN GENERAL.—Except as provided in subparagraph (B), the 
Administrator may revoke or suspend authority under paragraph 
(1) only after a hearing under subsection (c). 
(B) SUSPENSION BEFORE HEARING.— 
(i) IN
GENERAL.—The Administrator, after finding ex-
traordinary circumstances and in order to protect the finan-
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cial or legal position of the United States, may issue a sus-
pension order without conducting a hearing under subsection 
(c). 
(ii) HEARING.—If the Administrator issues a suspension 
under clause (i), the Administrator shall, within 2 business 
days after issuance of the suspension, follow the procedure 
specified in subsection (c). 
(C) ACTION BY THE ADMINISTRATOR AFTER HEARING BY AD-
MINISTRATIVE LAW JUDGE.— 
(i) IN GENERAL.—A revocation or suspension under para-
graph (1) shall be made by the Administrator, except that the 
Administrator shall delegate to an administrative law judge 
appointed under section 3105 of title 5 the authority to con-
duct any hearing required under subsection (c). 
(ii) BASIS OF DECISION.—The Administrator shall base the 
decision to revoke or suspend on the record of the hearing. 
(4) EFFECTIVE PERIOD OF SUSPENSION.—A suspension under para-
graph (1) shall remain in effect until the Administrator makes a deci-
sion under paragraph (3)(C) to permanently revoke the authority of the 
small business lending company or non-federally regulated lender, sus-
pend the authority for a time certain, or terminate the suspension. 
(5) NOTIFICATION OF BORROWERS.—On revocation of the authority 
of a small business lending company or non-federally regulated lender 
under paragraph (1), the small business lending company or non-feder-
ally regulated lender shall, and the Administrator may, notify bor-
rowers of the revocation and of the appointment of a new entity to 
service the borrowers’ loans. 
(b) CEASE AND DESIST ORDERS.— 
(1) IN GENERAL.—If a small business lending company, a non-feder-
ally regulated lender, or other person violates this subtitle or subtitle 
I or is engaging or is about to engage in any act or practice that con-
stitutes or will constitute a violation of this subtitle or subtitle I, the 
Administrator, after an opportunity for hearing under subsection (c), 
may order that— 
(A) the small business lending company, non-federally regulated 
lender, or other person cease and desist from engaging in the act 
or practice or in any failure to act; 
(B) the small business lending company, non-federally regulated 
lender, or other person take such action or to refrain from such 
action as the Administrator considers necessary to ensure compli-
ance with this subtitle; or 
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(C) the authority of the small business lending company or non- 
federally regulated lender to lend be suspended under subsection 
(a). 
(2) LIMITATION ON DELEGABILITY.—The Administrator may dele-
gate the authority under paragraph (1) only to the Deputy Adminis-
trator and only if the Administrator is unavailable to take the action. 
(3) ORDER BEFORE HEARING.— 
(A) IN GENERAL.—The Administrator, after finding extraor-
dinary circumstances and in order to protect the financial or legal 
position of the United States, may issue a cease and desist order 
without conducting a hearing under subsection (c). 
(B) HEARING.—If the Administrator issues a cease and desist 
order under subparagraph (A), the Administrator shall within 2 
business days follow the procedures specified in subsection (c). 
(c) PROCEDURE.— 
(1) ORDER TO SHOW CAUSE.— 
(A) IN
GENERAL.—Before revoking or suspending authority 
under subsection (a) or issuing a cease and desist order under 
subsection (b), the Administrator shall serve an order to show 
cause on the small business lending company, non-federally regu-
lated lender, or other person why an order revoking or suspending 
the authority or a cease and desist order should not be issued. 
(B) CONTENTS.—An order under subparagraph (A) shall— 
(i) contain a statement of the matters of fact and law as-
serted by the Administrator and the legal authority and juris-
diction under which a hearing is to be held; and 
(ii) state that a hearing will be held before an administra-
tive law judge at a time and place stated in the order. 
(2) HEARING.—A hearing shall be conducted under sections 554, 
556, and 557 of title 5. 
(3) ORDER OF REVOCATION OR SUSPENSION; CEASE AND DESIST 
ORDER.— 
(A) IN GENERAL.—If, after hearing or a waiver of hearing, the 
Administrator determines that an order revoking or suspending 
the authority or a cease and desist order should be issued, the Ad-
ministrator shall promptly issue the order. 
(B) CONTENTS.—An order under subparagraph (A) shall— 
(i) include a statement of the findings of the Administrator 
and the grounds and reasons for the findings; and 
(ii) specify the effective date of the order. 
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(C) SERVICE.—The Administrator shall cause an order under 
subparagraph (A) to be served on the small business lending com-
pany, non-federally regulated lender, or other person that is sub-
ject to the order. 
(4) WITNESSES.—A witness summoned before the Administrator 
shall be paid by the party at whose instance the witness is called the 
same fees and mileage that are paid witnesses in the courts of the 
United States. 
(d) FINAL AGENCY ACTION.—An order under subsection (c)(3) is final 
agency action for purposes of chapter 7 of title 5. 
(e) JUDICIAL REVIEW.—An adversely affected party shall have 20 days 
from the date of issuance of an order under subsection (c)(3) to seek judi-
cial review in United States district court. 
§ 207105. Removal or suspension of management officials 
(a) DEFINITION OF MANAGEMENT OFFICIAL.—In this section, the term 
‘‘management official’’ means an officer, director, general partner, manager, 
employee, agent, or other participant in the management of the affairs of 
a small business lending company’s or non-federally regulated lender’s ac-
tivities under the general business loan program. 
(b) REMOVAL OF MANAGEMENT OFFICIAL.— 
(1) NOTICE.—The Administrator may serve on a management offi-
cial a written notice of the Administrator’s intention to remove that 
management official if, in the opinion of the Administrator, the man-
agement official— 
(A) willfully and knowingly commits a substantial violation of— 
(i) this subtitle or subtitle I (including any regulation 
issued under this subtitle or subtitle I); 
(ii) a final cease and desist order under this subtitle; or 
(iii) any agreement under this subtitle by— 
(I) the management official; or 
(II) the small business lending company or non-feder-
ally regulated lender in which the management official is 
a participant; or 
(B) willfully and knowingly commits a substantial breach of a 
fiduciary duty of that participant as a management official, if the 
violation or breach of fiduciary duty is one involving personal dis-
honesty on the part of the management official. 
(2) CONTENTS.—A notice under paragraph (1) shall— 
(A) contain a statement of the facts constituting grounds for 
the notice; and 
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(B) state a time and place at which a hearing under paragraph 
(3) will be held on the notice. 
(3) HEARING.— 
(A) TIMING.—A hearing under sections 554, 556, and 557 of 
title 5 shall be held not earlier than 30 nor later than 60 days 
after the date of service of notice of the hearing, unless an earlier 
or a later date is set by the Administrator at the request of— 
(i) the management official, for good cause; or 
(ii) the Attorney General. 
(B) CONSENT.—Unless the management official appears at a 
hearing under this subsection in person or by an authorized rep-
resentative, the management official shall be deemed to have con-
sented to the issuance of an order of removal under paragraph (1). 
(4) ORDER OF REMOVAL.— 
(A) IN GENERAL.—In the event of consent under paragraph 
(3)(B), or if on the record made at a hearing under this section, 
the Administrator finds that any of the grounds specified in the 
notice of removal has been established, the Administrator may 
issue such orders of removal from office as the Administrator con-
siders appropriate. 
(B) EFFECTIVENESS.—An order under subparagraph (A) 
shall— 
(i) take effect 30 days after the date of service on the sub-
ject small business lending company or non-federally regu-
lated lender and the management official concerned (except in 
the case of an order issued on consent as described in para-
graph (3)(B), which shall become effective at the time speci-
fied in the order); and 
(ii) remain effective and enforceable, except to such extent 
as the order is stayed, modified, terminated, or set aside by 
action of the Administrator or a court in accordance with this 
chapter. 
(c) AUTHORITY TO SUSPEND OR PROHIBIT PARTICIPATION.— 
(1) IN GENERAL.—To protect a small business lending company, a 
non-federally regulated lender, or the interests of SBA or the United 
States, the Administrator may suspend from office or prohibit from 
further participation in any manner in the management or conduct of 
the affairs of a small business lending company or non-federally regu-
lated lender a management official by written notice to that effect 
served on the management official. 
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(2) PROHIBITED
ACTIVITIES.—A suspension or prohibition under 
paragraph (1) may prohibit the management official from making, 
servicing, reviewing, approving, or liquidating any loan under the gen-
eral business loan program. 
(3) EFFECTIVENESS.—A suspension or prohibition under paragraph 
(1)— 
(A) shall take effect on service of notice under subsection (b); 
and 
(B) unless stayed by a court in proceedings under paragraph 
(4), shall remain in effect— 
(i) pending the completion of the administrative pro-
ceedings pursuant to a notice of intention to remove served 
under subsection (b); and 
(ii) until such time as the Administrator dismisses the 
charges specified in the notice, or, if an order of removal or 
prohibition is issued against the management official, until 
the effective date of any such order. 
(4) JUDICIAL REVIEW OF SUSPENSION PRIOR TO HEARING.—Not 
later than 10 days after a management official is suspended or prohib-
ited from participation under paragraph (1), the management official 
may apply to a United States district court for a stay of the suspension 
or prohibition pending the completion of the administrative proceedings 
pursuant to a notice of intent to remove served on the management of-
ficial under subsection (b). 
(d) AUTHORITY TO SUSPEND ON CRIMINAL CHARGES.— 
(1) IN GENERAL.—If a management official is charged in an infor-
mation, indictment, or complaint authorized by a United States attor-
ney, with a felony involving dishonesty or breach of trust, the Adminis-
trator may, by written notice served on the management official, sus-
pend the management official from office or prohibit the management 
official from further participation in any manner in the management 
or conduct of the affairs of the small business lending company or non- 
federally regulated lender in which the management official is a partici-
pant described in subsection (a). 
(2) EFFECTIVENESS.—A suspension or prohibition under paragraph 
(1) shall remain in effect until the information, indictment, or com-
plaint is finally disposed of, or until terminated by the Administrator 
or by order of a United States district court. 
(3) AUTHORITY ON CONVICTION.— 
(A) IN GENERAL.—If a judgment of conviction with respect to 
an offense described in paragraph (1) is entered against a man-
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149 
agement official, at such time as the judgment is not subject to 
further judicial review, the Administrator may issue and serve on 
the management official an order removing the management offi-
cial, effective on service of a copy of the order on the small busi-
ness lending company or non-federally regulated lender in which 
the management official is a participant described in subsection 
(a). 
(B) JUDGMENT
NOT
SUBJECT
TO
FURTHER
JUDICIAL
RE-
VIEW.—For purposes of subparagraph (A), further judicial review 
does not include the possibility of review of a petition for a writ 
of habeas corpus. 
(4) AUTHORITY ON DISMISSAL OR OTHER DISPOSITION.—A finding 
of not guilty or other disposition of charges described in paragraph (1) 
shall not preclude the Administrator from instituting proceedings under 
section 207104 of this title. 
(e) NOTIFICATION TO SMALL BUSINESS LENDING COMPANY OR NON- 
FEDERALLY REGULATED LENDER.—A copy of a notice required to be 
served on a management official under this chapter shall also be served on 
the small business lending company or non-federally regulated lender in 
which the management official is a participant described in subsection (a). 
(f) DECISION.—After a hearing under this section, and not later than 30 
days after the Administrator notifies the parties that the case has been sub-
mitted for final decision, the Administrator shall— 
(1) render a decision in the matter (which shall include findings of 
fact on which its decision is predicated); and 
(2) issue and cause to be served on each party to the proceeding an 
order or orders consistent with this chapter. 
(g) FINAL AGENCY ACTION.—A decision under subsection (f) shall con-
stitute final agency action for purposes of chapter 7 of title 5. 
(h) JUDICIAL REVIEW.—An adversely affected party shall have 20 days 
from the date of issuance of the order to seek judicial review in United 
States district court. 
§ 207106. Appointment of receiver 
(a) IN GENERAL.—In a civil action under this division, the court may— 
(1) take exclusive jurisdiction over a small business lending company 
or non-federally regulated lender; and 
(2) appoint a receiver to hold and administer the assets of the small 
business lending company or non-federally regulated lender. 
(b) APPOINTMENT
OF ADMINISTRATOR.—On request of the Adminis-
trator, the court may appoint the Administrator as a receiver under sub-
section (a). 
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§ 207107. Taking of possession of assets 
(a) TAKING OF POSSESSION OF LOAN PORTFOLIO.—If a small business 
lending company or non-federally regulated lender is not in compliance with 
capital requirements or is insolvent, the Administrator may take possession 
of the portfolio of loans guaranteed by the Administrator and sell the loans 
to a 3d party by means of a receiver appointed under section 207106 of 
this title. 
(b) TAKING OF POSSESSION OF SERVICING ACTIVITIES.—If a small busi-
ness lending company or non-federally regulated lender is not in compliance 
with capital requirements or is insolvent or otherwise operating in an unsafe 
and unsound condition, the Administrator may take possession of servicing 
activities of loans that are guaranteed by the Administrator and sell the 
servicing rights to a 3d party by means of a receiver appointed under sec-
tion 207106 of this title. 
§ 207108. Reports 
(a) CIVIL PENALTY FOR FAILURE TO FILE.— 
(1) IN GENERAL.—A small business lending company or non-feder-
ally regulated lender that violates a regulation or written directive 
issued by the Administrator regarding the filing of a regular or special 
report shall pay to the United States a civil penalty of not more than 
$5,000 for each day of the continuance of the failure to file the report, 
unless it is shown that the violation is due to reasonable cause and not 
due to willful neglect. 
(2) ENFORCEMENT.—A civil penalty under paragraph (1) may be en-
forced in a civil action brought by the Administrator. 
(3) INAPPLICABILITY TO CERTAIN SMALL BUSINESS LENDING COM-
PANIES.—Paragraph (1) does not apply to an affiliate of a small busi-
ness lending company that procures at least 10 percent of its annual 
purchasing requirements from small manufacturers. 
(b) EXEMPTION.— 
(1) IN GENERAL.—If the Administrator determines that granting an 
exemption would not be inconsistent with the public interest or the pro-
tection of SBA, the Administrator may exempt a small business lending 
company or non-federally regulated lender from subsection (a)— 
(A) in whole or in part; and 
(B) on such terms and conditions and for such period of time 
as the Administrator considers necessary and appropriate. 
(2) PROCEDURE.—The Administrator may grant an exemption under 
paragraph (1)— 
(A) by regulation prescribed after an opportunity for notice and 
comment; or 
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(B) on application of an interested party, at any time previous 
to a violation described in subsection (a), by order, after notice 
and opportunity for hearing under sections 554, 556, and 557 of 
title 5. 
(c) ALTERNATIVE REQUIREMENTS.—The Administrator may for purposes 
of this section make any alternative requirement that the Administrator 
considers to be appropriate to a situation. 
Division C—Intermediary Lending Pilot 
Program 
Chapter 211—Intermediary Lending Pilot 
Program 
Sec. 
211101.
Definitions. 
211102.
Establishment. 
211103.
Purposes. 
211104.
Loans to eligible intermediaries. 
211105.
Loans to small business concerns. 
211106.
Regulations. 
211107.
Availability of funds. 
211108.
Termination of authority. 
§ 211101. Definitions 
In this chapter: 
(1) ELIGIBLE INTERMEDIARY.— 
(A) IN GENERAL.—The term ‘‘eligible intermediary’’ means a 
private, nonprofit entity that— 
(i) seeks or has been awarded a loan from the Adminis-
trator to make loans to small business concerns under this 
chapter; and 
(ii) has not less than 1 year of experience making loans to 
startup, newly established, or growing small business con-
cerns. 
(B) INCLUSIONS.—The term ‘‘eligible intermediary’’ includes— 
(i) a private, nonprofit community development corpora-
tion; 
(ii) a consortium of private, nonprofit organizations or non-
profit community development corporations; and 
(iii) an agency of or nonprofit entity established by a Na-
tive American Tribal Government. 
(2) PROGRAM.—The term ‘‘program’’ means the small business 
intermediary lending pilot program established under section 211102 of 
this title. 
§ 211102. Establishment 
There is established a 3-year small business intermediary lending pilot 
program under which the Administrator may make direct loans to eligible 
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intermediaries for the purpose of making loans to startup, newly estab-
lished, and growing small business concerns. 
§ 211103. Purposes 
The purposes of the program are— 
(1) to assist small business concerns in areas suffering from a lack 
of credit due to poor economic conditions or changes in the financial 
market; and 
(2) to establish a loan program under which the Administrator may 
provide loans to eligible intermediaries to enable the eligible inter-
mediaries to provide loans to startup, newly established, and growing 
small business concerns for working capital, real estate, or the acquisi-
tion of materials, supplies, or equipment. 
§ 211104. Loans to eligible intermediaries 
(a) APPLICATION.—An eligible intermediary desiring a loan under the 
program shall submit an application to the Administrator that describes— 
(1) the type of small business concerns to be assisted; 
(2) the size and range of loans to be made; 
(3) the interest rate and terms of loans to be made; 
(4) the geographic area to be served and the economic, poverty, and 
unemployment characteristics of the area; 
(5) the status of small business concerns in the area to be served 
and an analysis of the availability of credit; and 
(6) the qualifications of the applicant to carry out this chapter. 
(b) LOAN LIMIT.—No loan may be made to an eligible intermediary 
under the program if the total amount outstanding and committed to the 
eligible intermediary by the Administrator would, as a result of the loan, 
exceed $1,000,000 during the participation of the eligible intermediary in 
the program. 
(c) LOAN TERM.—A loan made by the Administrator under the program 
shall be for a term of 20 years. 
(d) INTEREST RATE.—A loan made by the Administrator to an eligible 
intermediary under the program shall bear an annual interest rate equal to 
1.00 percent. 
(e) NO FEE OR COLLATERAL.—The Administrator shall not charge any 
fee or require collateral with respect to any loan made to an eligible inter-
mediary under the program. 
(f) DELAYED PAYMENT.—The Administrator shall not require the pay-
ment of principal or interest on a loan made to an eligible intermediary 
under the program during the 2-year period beginning on the date of the 
initial disbursement of funds under the loan. 
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§ 211105. Loans to small business concerns 
(a) IN GENERAL.—The Administrator, through an eligible intermediary, 
shall make loans to startup, newly established, and growing small business 
concerns for working capital, real estate, and the acquisition of materials, 
supplies, furniture, fixtures, and equipment. 
(b) MAXIMUM AMOUNT.—An eligible intermediary shall not make a loan 
under the program of more than $200,000 to any 1 small business concern. 
(c) INTEREST RATE.—A loan made by an eligible intermediary to a small 
business concern under the program— 
(1) may have a fixed or a variable interest rate; and 
(2) shall bear an interest rate specified by the eligible intermediary 
in the application of the eligible intermediary for a loan under the pro-
gram. 
(d) REVIEW RESTRICTIONS.—The Administrator shall not review indi-
vidual loans made by an eligible intermediary to a small business concern 
before approval of the loan by the eligible intermediary. 
§ 211106. Regulations 
The Administrator shall issue regulations to carry out this chapter. 
§ 211107. Availability of funds 
Any amount provided to the Administrator for the purposes of carrying 
out this chapter shall remain available until expended. 
§ 211108. Termination of authority 
The authority of the Administrator to make loans under the program 
shall terminate on September 27, 2013. 
Division D—Microloan Program 
Chapter 213—Microloan Program 
Sec. 
213101.
Definitions. 
213102.
Establishment of microloan program. 
213103.
Purposes of microloan program. 
213104.
Eligibility for participation. 
213105.
Loans to intermediaries; loans by intermediaries to small business concerns. 
213106.
Marketing, management, and technical assistance grants to intermediaries. 
213107.
Private sector borrowing technical assistance grants. 
213108.
Grants for management, marketing, technical assistance, and related services. 
§ 213101. Definitions 
In this chapter: 
(1) INTERMEDIARY.—The term ‘‘intermediary’’ means— 
(A) a private, nonprofit entity; 
(B) a private, nonprofit community development corporation; 
(C) a consortium of private, nonprofit organizations or nonprofit 
community development corporations; 
(D) a quasi-governmental economic development entity (such as 
a planning and development district), other than a State, county, 
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or municipal government (or any agency of a State, county, or 
municipal government), in a geographic area— 
(i) in which no application is received from an eligible non-
profit organization; or 
(ii) with respect to which the Administrator determines 
that the needs of the geographic area are not adequately 
served by an existing, eligible nonprofit organization that has 
submitted an application; or 
(E) an agency of or nonprofit entity established by a Native 
American Tribal Government; 
that seeks to borrow or has borrowed funds from the Administrator to 
make microloans to small business concerns under the microloan pro-
gram. 
(2) MICROLOAN.—The term ‘‘microloan’’ means a short-term, fixed 
rate loan of not more than $50,000, made by an intermediary to a 
startup, newly established, or growing small business concern. 
(3) RURAL AREA.—The term ‘‘rural area’’ means a political subdivi-
sion or unincorporated area— 
(A) in a nonmetropolitan county (as defined by the Secretary 
of Agriculture) or its equivalent; or 
(B) in a metropolitan county or its equivalent that has a resi-
dent population of less than 20,000 if the Administrator deter-
mines the political subdivision or unincorporated area to be rural. 
(4) STATE.—The term ‘‘State’’ includes the District of Columbia, 
Puerto Rico, the United States Virgin Islands, Guam, and American 
Samoa. 
§ 213102. Establishment of microloan program 
There is established within SBA a microloan program. 
§ 213103. Purposes of microloan program 
The purposes of the microloan program are— 
(1) to assist women, low-income, veteran, and minority entrepreneurs 
and business owners and other such individuals possessing the capa-
bility to operate successful business concerns; 
(2) to assist small business concerns in areas suffering from a lack 
of credit due to economic downturns; 
(3) to make loans to eligible intermediaries to enable the inter-
mediaries to provide small-scale loans, particularly loans in amounts 
averaging not more than $10,000, to startup, newly established, or 
growing small business concerns for working capital or the acquisition 
of materials, supplies, or equipment; 
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(4) to make grants to eligible intermediaries that, together with non- 
Federal matching funds, will enable the intermediaries to provide inten-
sive marketing, management, and technical assistance to microloan bor-
rowers; 
(5) to make grants to eligible nonprofit entities that, together with 
non-Federal matching funds, will enable the entities to provide inten-
sive marketing, management, and technical assistance to assist low-in-
come entrepreneurs and other low-income individuals obtain private 
sector financing for their businesses, with or without loan guarantees; 
(6) to report to the Committee on Small Business and Entrepreneur-
ship of the Senate and the Committee on Small Business of the House 
of Representatives on the effectiveness of the microloan program and 
the advisability and feasibility of implementing such a program nation-
wide; and 
(7) to establish a welfare-to-work microloan initiative to test the fea-
sibility of supplementing the technical assistance grants provided under 
sections 213106 and 213107 of this title to individuals who are receiv-
ing assistance under the State program funded under part A of title 
IV of the Social Security Act (42 U.S.C. 601 et seq.), or under any 
comparable State-funded means-tested program of assistance for low- 
income individuals, to adequately assist those individuals in— 
(A) establishing small business concerns; and 
(B) eliminating their dependence on that assistance. 
§ 213104. Eligibility for participation 
An intermediary shall be eligible to receive loans and grants under sec-
tions 213105 and 213106 of this title if the intermediary has at least 1 year 
of experience making microloans to startup, newly established, or growing 
small business concerns and providing, as an integral part of the microloan 
program, intensive marketing, management, and technical assistance to its 
borrowers. 
§ 213105. Loans to intermediaries; loans by intermediaries 
to small business concerns 
(a) IN GENERAL.—Under the microloan program, the Administrator may 
make direct loans to eligible intermediaries for the purpose of making 
microloans to small business concerns under this section. 
(b) LOAN APPLICATIONS.— 
(1) IN GENERAL.—As part of an application for a loan, an inter-
mediary shall submit to the Administrator a description of— 
(A) the type of businesses to be assisted; 
(B) the size and range of loans to be made; 
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(C) the geographic area to be served, including a description of 
the economic, poverty, and unemployment characteristics of the 
area; 
(D) the status of small business concerns in the area to be 
served, including an analysis of their credit and technical assist-
ance needs; 
(E) any marketing, management, and technical assistance to be 
provided in connection with a loan made under this chapter; 
(F) the local economic credit markets, including the costs asso-
ciated with obtaining credit locally; 
(G) the qualifications of the applicant to carry out the purposes 
of the microloan program; and 
(H) any plan to involve other technical assistance providers 
(such as counselors from SCORE or small business development 
centers) or private sector lenders in assisting selected business 
concerns. 
(2) SELECTION OF INTERMEDIARIES.—In selecting intermediaries to 
participate in the microloan program, the Administrator shall give pri-
ority to applicants that provide loans in amounts averaging not more 
than $10,000. 
(c) INTERMEDIARY CONTRIBUTION.—As a condition of a loan under sub-
section (a), the Administrator shall require an intermediary to contribute 
not less than 15 percent of the loan amount in cash from a non-Federal 
source. 
(d) LOAN LIMITS.—A loan shall not be made under the microloan pro-
gram if the total amount outstanding and committed (on a deferred basis, 
through a participation on an immediate basis, or directly) to 1 inter-
mediary (excluding outstanding grants) under the general business loan pro-
gram and microloan program would, as a result of the loan, exceed 
$750,000 in the 1st year of the intermediary’s participation in the 
microloan program or $5,000,000 in any subsequent year of the 
intermediary’s participation in the microloan program. 
(e) LOAN TERM.—A loan made by the Administrator under this chapter 
shall be for a term of 10 years. 
(f) DELAYED PAYMENTS.—Except for a loan loss reserve fund under sub-
section (i), the Administrator shall not require repayment of principal or in-
terest on a loan made to an intermediary under this chapter during the 1st 
year of the loan. 
(g) NO FEE OR COLLATERAL.—Except for a loan loss reserve fund under 
subsection (i), the Administrator shall not charge any fee or require collat-
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eral other than an assignment of the notes receivable of the microloans with 
respect to any loan made to an intermediary under the microloan program. 
(h) INTEREST RATES.— 
(1) IN GENERAL.—Except as provided in paragraph (2), a loan made 
by the Administrator to an intermediary under this chapter shall bear 
an interest rate equal to 1.25 percentage points below the rate deter-
mined by the Secretary of the Treasury for obligations of the United 
States with a period of maturity of 5 years, adjusted to the nearest 
0.125 percent. 
(2) RATES APPLICABLE TO CERTAIN SMALL LOANS.—A loan made 
by the Administrator to an intermediary that makes loans to small 
business concerns and entrepreneurs averaging not more than $7,500 
shall bear an interest rate that is 2 percentage points below the rate 
determined by the Secretary of the Treasury for obligations of the 
United States with a period of maturity of 5 years, adjusted to the 
nearest 0.125 percent. 
(3) MULTIPLE SITES OR OFFICES.—The interest rate determined 
under paragraph (1) or (2) shall apply to each separate loanmaking 
site or office of an intermediary only if the site or office meets the re-
quirements of that paragraph. 
(4) RATE BASIS.—The applicable rate of interest under this sub-
section— 
(A) for the 1st year of an intermediary’s participation in the 
microloan program, shall be applied retroactively based on the ac-
tual lending practices of the intermediary as determined by the 
Administrator before the end of that year; and 
(B) for each subsequent year of an intermediary’s participation 
in the microloan program, shall be based on the actual lending 
practices of the intermediary during the term of the intermediary’s 
participation in the microloan program. 
(i) LOSS RESERVE OF INTERMEDIARIES.— 
(1) IN GENERAL.—The Administrator shall by regulation require an 
intermediary to establish and maintain a loan loss reserve fund until 
all obligations owed to the Administrator under the microloan program 
are repaid. 
(2) LEVEL OF LOAN LOSS RESERVE FUND.— 
(A) IN GENERAL.—Subject to subparagraph (C), the Adminis-
trator shall require the loan loss reserve fund of an intermediary 
to be maintained at a level equal to 15 percent of the outstanding 
balance of the notes receivable owed to the intermediary. 
(B) REVIEW OF LOAN LOSS RESERVE.—
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(i) IN
GENERAL.—After the initial 5 years of an 
intermediary’s participation in the microloan program, the 
Administrator shall, at the request of the intermediary, con-
duct a review of the annual loss rate of the intermediary. 
(ii) REVIEW PERIOD.—An intermediary that requests a re-
duction in its loan loss reserve shall be reviewed based on the 
most recent 5-year period preceding the request. 
(C) REDUCTION OF LOAN LOSS RESERVE.—Subject to subpara-
graph (D), the Administrator may reduce the annual loan loss re-
serve requirement of an intermediary to reflect the actual average 
loan loss rate for the intermediary during the preceding 5-year pe-
riod, except that in no case shall the loan loss reserve be reduced 
to less than 10 percent of the outstanding balance of the notes 
receivable owed to the intermediary. 
(D) REQUIREMENTS.—The Administrator may reduce the an-
nual loan loss reserve requirement of an intermediary only if the 
intermediary demonstrates to the satisfaction of the Administrator 
that— 
(i) the average annual loss rate for the intermediary during 
the preceding 5-year period is less than 15 percent; and 
(ii) no other factors exist that may impair the ability of the 
intermediary to repay all obligations owed to the Adminis-
trator under this chapter. 
(j) LOANS BY INTERMEDIARIES TO SMALL BUSINESS CONCERNS.— 
(1) IN GENERAL.—From funds made available to an intermediary 
under the microloan program, the intermediary shall make short-term, 
fixed rate loans to startup, newly established, and growing small busi-
ness concerns for working capital and the acquisition of materials, sup-
plies, furniture, fixtures, and equipment. 
(2) LOAN AMOUNT.— 
(A) PORTFOLIO REQUIREMENT.—To the extent practicable, an 
intermediary that operates under the microloan program shall 
maintain a microloan portfolio with an average loan size of not 
more than $15,000. 
(B) UNAVAILABILITY
OF
COMPARABLE
CREDIT.—An inter-
mediary may make a loan under the microloan program of more 
than $20,000 to a small business concern only if the small busi-
ness concern demonstrates that— 
(i) it is unable to obtain credit elsewhere at comparable in-
terest rates; and 
(ii) it has good prospects for success. 
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159 
(C) MAXIMUM AMOUNT.—An intermediary shall not— 
(i) make a loan under this chapter of more than $50,000; 
or 
(ii) have outstanding or committed to any 1 borrower more 
than $50,000. 
(3) INTEREST LIMIT.—Notwithstanding any provision of law of any 
State (including the constitution of a State) pertaining to the rate or 
amount of interest that may be charged, taken, received, or reserved 
on a loan, the maximum rate of interest to be charged on a microloan 
funded under this chapter shall not exceed the rate of interest applica-
ble to a loan made to an intermediary by the Administrator— 
(A) in the case of a loan of more than $7,500 made by the 
intermediary to a small business concern or entrepreneur, by more 
than 7.75 percentage points; and 
(B) in the case of a loan of not more than $7,500 made by the 
intermediary to a small business concern or entrepreneur by more 
than 8.5 percentage points. 
(4) REVIEW RESTRICTION.—The Administrator shall not review indi-
vidual microloans made by intermediaries prior to approval. 
(5) ESTABLISHMENT OF CHILD CARE OR TRANSPORTATION BUSI-
NESSES.—In addition to other eligible small business concerns, a bor-
rower under the microloan program may include an individual who will 
use the loan proceeds to establish— 
(A) a for-profit or nonprofit child care establishment; or 
(B) a business providing a for-profit transportation service. 
(k) PROGRAM FUNDING FOR MICROLOANS.— 
(1) NUMBER OF PARTICIPANTS.—Under the microloan program, the 
Administrator may fund, on a competitive basis, not more than 300 
intermediaries. 
(2) ALLOCATION.— 
(A) MINIMUM ALLOCATION.—Subject to the availability of ap-
propriations, of the total amount of new loan funds made available 
for award under the microloan program for each fiscal year, the 
Administrator shall make available for award in each State an 
amount equal to the sum of— 
(i) the lesser of— 
(I) $800,000; or 
(II) 1⁄55 of the total amount of new loan funds made 
available for award under the microloan program for 
that fiscal year; and 
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(ii) any additional amount, as determined by the Adminis-
trator. 
(B) REDISTRIBUTION.—If, at the beginning of the 3d quarter 
of a fiscal year, the Administrator determines that any portion of 
the amount made available to carry out the microloan program is 
unlikely to be made available under subparagraph (A) during that 
fiscal year, the Administrator may make that portion available for 
award in any 1 or more States without regard to subparagraph 
(A). 
(l) EQUITABLE
DISTRIBUTION
OF
INTERMEDIARIES.—In approving 
microloan program applicants and providing funding to intermediaries 
under the microloan program, the Administrator shall select and provide 
funding to such intermediaries as will ensure appropriate availability of 
loans for small business concerns in all industries located throughout each 
State, particularly industries located in urban areas and industries located 
in rural areas. 
§ 213106. Marketing, management, and technical assistance 
grants to intermediaries 
(a) IN GENERAL.—In conjunction with a loan to an intermediary under 
section 213105 of this title, the Administrator may make a grant to the eli-
gible intermediary for the purpose of providing intensive marketing, man-
agement, and technical assistance to small business concerns that are bor-
rowers under the microloan program. 
(b) GRANT AMOUNT.— 
(1) IN GENERAL.—An intermediary that receives a loan under sec-
tion 213105 of this title shall be eligible to receive a grant in an 
amount equal to not more than 25 percent of the total outstanding bal-
ance of loans made to the intermediary under the microloan program. 
(2) INTERMEDIARY CONTRIBUTION.— 
(A) IN GENERAL.—As a condition of a grant under paragraph 
(1), the Administrator shall require the intermediary to contribute 
an amount equal to 25 percent of the amount of the grant, ob-
tained solely from a non-Federal source. 
(B) FORM.—In addition to cash or other direct funding, a con-
tribution under subparagraph (A) may include indirect costs or in- 
kind contributions paid for under a non-Federal program. 
(c) ADDITIONAL TECHNICAL ASSISTANCE GRANTS FOR MAKING CERTAIN 
LOANS.— 
(1) IN GENERAL.—An intermediary that has a portfolio of loans 
under the microloan program that averages not more than $10,000 
during the period of the intermediary’s participation in the microloan 
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161 
program shall be eligible to receive a grant equal to 5 percent of the 
total outstanding balance of loans made to the intermediary under the 
microloan program, in addition to any grant made under subsection 
(b). 
(2) USE.—A grant under paragraph (1) shall be used to provide 
marketing, management, and technical assistance to small business 
concerns that are borrowers under the microloan program. 
(d) MULTIPLE SITES OR OFFICES.—Eligibility for a grant under sub-
section (b) or (c) shall be determined separately for each loanmaking site 
or office of an intermediary. 
(e) ASSISTANCE TO CERTAIN SMALL BUSINESS CONCERNS.— 
(1) IN GENERAL.—An intermediary may expend an amount not to 
exceed 25 percent of the funds received under subsection (a) to provide 
information and technical assistance to small business concerns that 
are prospective borrowers under section 213108 of this title. 
(2) TECHNICAL ASSISTANCE.—An intermediary may provide tech-
nical assistance under paragraph (1) through a 3d party contract. 
§ 213107. Private sector borrowing technical assistance 
grants 
(a) IN GENERAL.—The Administrator may make grants to nonprofit enti-
ties for the purpose of providing marketing, management, and technical as-
sistance to low-income individuals seeking to start or enlarge their own busi-
nesses, if the assistance includes working with the grant recipient to secure 
loans in amounts not to exceed $50,000 from private sector lending institu-
tions, with or without a loan guarantee from the nonprofit entity. 
(b) GRANT AMOUNTS.—The Administrator may make not more than 55 
grants annually under subsection (a), each in an amount not to exceed 
$200,000. 
(c) GRANT RECIPIENT CONTRIBUTION.— 
(1) IN GENERAL.—As a condition of a grant under subsection (a), 
the Administrator shall require the grant recipient to contribute an 
amount equal to 20 percent of the amount of the grant, obtained solely 
from a non-Federal source. 
(2) FORM.—In addition to cash or other direct funding, a contribu-
tion under paragraph (1) may include indirect costs or in-kind con-
tributions paid for under a non-Federal program. 
§ 213108. Grants for management, marketing, technical as-
sistance, and related services 
(a) IN GENERAL.—The Administrator may procure technical assistance 
for intermediaries participating in the microloan program to ensure that the 
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162 
intermediaries have the knowledge, skills, and understanding of micro-
lending practices necessary to operate a successful microloan program. 
(b) ASSISTANCE AMOUNT.—The Administrator shall transfer 7 percent of 
the annual appropriation for loans and loan guarantees under this chapter 
to SBA’s Salaries and Expense Account for the specific purpose of pro-
viding 1 or more technical assistance grants to experienced microlending or-
ganizations and national and regional nonprofit organizations that have 
demonstrated experience in providing training support for microenterprise 
development and financing to achieve the purpose specified in subsection 
(a). 
(c) WELFARE-TO-WORK MICROLOAN INITIATIVE.—Of amounts made 
available to carry out the welfare-to-work microloan initiative under section 
213103(7) of this title for any fiscal year, the Administrator may use not 
more than 5 percent to provide technical assistance, either directly or 
through contractors, to welfare-to-work microloan initiative grantees, to en-
sure that the grantees have the knowledge, skills, and understanding of 
microlending and welfare-to-work transition, and other related issues, to op-
erate a successful welfare-to-work microloan initiative. 
Division E—Disaster Assistance Programs 
Chapter 221—Disaster Loan Program 
Sec. 
221101.
Physical loss disaster loans. 
221102.
Economic injury disaster loans. 
221103.
Loans to assist small business concerns that suffer injury as a result of an essential 
employee’s being ordered to active military duty. 
221104.
Public awareness of disaster declaration and application periods. 
221105.
Disaster loan processing. 
221106.
Disaster assistance employees. 
221107.
Maximum loan amount. 
221108.
Additional disaster assistance in cases of extraordinary disaster. 
221109.
Reduction of approval delays and disbursement delays. 
221110.
Transparency in loan approvals. 
221111.
Awards to small business development centers, women’s business centers, and 
SCORE for disaster recovery. 
221112.
Supplemental assistance for contractor malfeasance. 
221113.
Business recovery centers. 
221114.
Oversight of economic injury disaster loans. 
221115.
Interest rates. 
221116.
Maximum term. 
221117.
Deferment of repayment. 
221118.
Suspension of payments. 
221119.
Participation in loans on deferred basis. 
221120.
Assistance and counseling for disaster victims. 
221121.
Priority in allocating funds. 
221122.
Prohibition of cancellation of certain disaster loans. 
221123.
Prohibition of net earnings clauses. 
221124.
Biennial disaster simulation exercise. 
221125.
Disaster planning responsibilities. 
221126.
Disaster response plan. 
221127.
Coordination of disaster assistance programs with FEMA. 
221128.
Plans to secure sufficient office space. 
221129.
Bond guarantees in procurements relating to a major disaster. 
221130.
Civil penalty. 
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§ 221101. Physical loss disaster loans 
(a) IN GENERAL.—Except as to agricultural enterprises, to the extent 
and in such amounts as are provided in advance in appropriation Acts, the 
Administrator may make such a loan (directly or in cooperation with a bank 
or other lending institution through an agreement to participate on an im-
mediate or deferred (guaranteed) basis) as the Administrator determines to 
be necessary or appropriate to repair, rehabilitate, or replace property, real 
or personal, damaged or destroyed by or as a result of a natural or other 
disaster. 
(b) LOAN AMOUNT.— 
(1) IN GENERAL.—The amount of a loan under subsection (a) shall 
be equal to 100 percent of the amount of the loss, minus any amount 
compensated for by insurance or otherwise. 
(2) PROTECTION FROM FUTURE DISASTERS.— 
(A) IN GENERAL.—The Administrator may increase the amount 
of a loan under subsection (a) by up to 20 percent of the aggre-
gate costs of the damage or destruction (whether or not com-
pensated for by insurance or otherwise) if the Administrator deter-
mines the increase to be appropriate to protect the damaged or 
destroyed property from future disasters by taking mitigating 
measures. 
(B) MITIGATING MEASURES.—In subparagraph (A), the term 
‘‘mitigating measures’’ includes— 
(i) the construction of a retaining wall or sea wall; 
(ii) the grading or contouring of land; and 
(iii) the relocation of a utility or modification of a struc-
ture, including the construction of a safe room or similar 
storm shelter designed to protect property and occupants 
from tornadoes or other natural disasters, if the safe room or 
similar storm shelter is constructed in accordance with appli-
cable standards issued by the Federal Emergency Manage-
ment Agency. 
(3) LIMITATION ON LOAN AMOUNT.— 
(A) IN GENERAL.—No loan under this section shall be made if 
the total amount outstanding and committed to the borrower 
under the disaster loan program would exceed $1,500,000 for any 
1 disaster unless an applicant constitutes a major source of em-
ployment in an area suffering a disaster, in which case the Admin-
istrator may waive the $1,500,000 limitation. 
(B) MAJOR SOURCE OF EMPLOYMENT.—For purposes of deter-
mining whether a nonprofit applicant that owns a premises con-
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stitutes a major source of employment under subparagraph (A), 
the employees of 2 or more concerns that share the premises as 
a common business premises shall be aggregated. 
(4) LIMITATION ON REDUCTION OF LOAN AMOUNT.— 
(A) IN
GENERAL.—The Administrator shall not reduce the 
amount of a loan— 
(i) for any homeowner on account of loss of real estate to 
less than $100,000 for any 1 disaster; or 
(ii) for any homeowner or lessee on account of loss of per-
sonal property to less than $20,000 for any 1 disaster. 
(B) REFINANCING.—The $100,000 and $20,000 amounts in 
subparagraph (A) are in addition to any refinancing for which a 
loan applicant is eligible. 
(c) REFINANCINGS.— 
(1) IN GENERAL.—A loan or guarantee may be made to refinance 
a mortgage or other lien against a totally destroyed or substantially 
damaged home or business concern (other than an agricultural enter-
prise). 
(2) REQUIREMENTS.—A loan or guarantee under paragraph (1) shall 
not be made unless the Administrator determines that— 
(A) the applicant is not able to obtain credit elsewhere; and 
(B) the property is to be repaired, rehabilitated, or replaced. 
(3) AMOUNT.—The amount refinanced under paragraph (1)— 
(A) shall not exceed the amount of physical loss sustained; and 
(B) shall be reduced to the extent that the mortgage or lien is 
satisfied by insurance or otherwise. 
(d) COLLATERAL.— 
(1) NO COLLATERAL TO BE REQUIRED FOR LOAN BELOW A CERTAIN 
AMOUNT.—The Administrator shall not require collateral for a loan of 
$25,000 (or such greater amount as the Administrator determines to 
be appropriate in the event of a disaster) or less that is made under 
this section. 
(2) PRIMARY RESIDENCE.— 
(A) IN GENERAL.—In obtaining the best available collateral for 
a loan of not more than $200,000 under this section, the Adminis-
trator shall not require the owner of a small business concern to 
use the primary residence of the owner as collateral if the Admin-
istrator determines that the owner has other assets that are of 
equal quality and have a value equal to or greater than the 
amount of the loan that could be used as collateral for the loan. 
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(B) NO REDUCTION OF AMOUNT OR MODIFICATION OF STAND-
ARDS.—Nothing in subparagraph (A) shall be construed to— 
(i) reduce the amount of collateral required by the Admin-
istrator in connection with a loan described in subparagraph 
(A); or 
(ii) modify the standards used to evaluate the quality (rath-
er than the type) of the collateral. 
§ 221102. Economic injury disaster loans 
(a) DEFINITIONS.—In this section: 
(1) DISASTER.—The term ‘‘disaster’’ includes— 
(A) a drought; 
(B) a below average water level in 1 or more of the Great Lakes 
or on any other body of water in the United States that supports 
commerce by small business concerns; and 
(C) an ice storm or blizzard. 
(2) DISASTER AREA.—The term ‘‘disaster area’’ includes— 
(A) a county determined to be a disaster by the President, the 
Secretary of Agriculture, or the Administrator; and 
(B) a county contiguous to a county described in subparagraph 
(A). 
(b) LOANS.—Except as to agricultural enterprises other than businesses 
engaged in aquaculture, to the extent and in such amounts as are provided 
in advance in appropriation Acts, the Administrator may make such a loan 
(directly or in cooperation with a bank or other lending institution through 
an agreement to participate on an immediate or deferred (guaranteed) 
basis) as the Administrator determines to be necessary or appropriate to a 
farm-related or nonfarm-related small business concern, private nonprofit 
organization, or small agricultural cooperative located in a disaster area if— 
(1) the Administrator determines that the small business concern, 
private nonprofit organization, or agricultural cooperative has suffered 
a substantial economic injury as a result of the disaster; 
(2)(A) the disaster constitutes— 
(i) a major disaster; 
(ii) a natural disaster, as determined by the Secretary of Agri-
culture under section 321 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1961), in which case, assistance under 
this section may be provided to farm-related and nonfarm-related 
small business concerns, subject to the other applicable require-
ments of this section; or 
(iii) a disaster, as determined by the Administrator; or 
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166 
(B) if no disaster described in subparagraph (A) is declared, the 
Governor of a State in which a disaster has occurred certifies to the 
Administrator that small business concerns, private nonprofits organi-
zations, or small agricultural cooperatives— 
(i) have suffered economic injury as a result of the disaster; and 
(ii) are in need of financial assistance that is not available on 
reasonable terms in the disaster area; and 
(3) the Administrator determines that the applicant is not able to 
obtain credit elsewhere. 
(c) PROMPT RESPONSE TO CERTIFICATION.—Not later than 30 days 
after the date of receipt of a certification by a Governor of a State under 
subsection (b)(2)(B), the Administrator shall respond in writing to the Gov-
ernor on the Administrator’s determination regarding the certification, stat-
ing the reasons for the determination. 
(d) LIMITATION ON LOAN AMOUNT.— 
(1) IN GENERAL.—No loan under this section shall be made if the 
total amount outstanding and committed to a borrower under the dis-
aster loan program would exceed $1,500,000 for any 1 disaster unless 
the borrower constitutes a major source of employment in a disaster 
area, in which case the Administrator may waive the $1,500,000 limi-
tation. 
(2) MAJOR SOURCE OF EMPLOYMENT.—For purposes of determining 
whether a nonprofit applicant that owns a premises constitutes a major 
source of employment under paragraph (1), the employees of 2 or more 
concerns that share the premises as a common business premises shall 
be aggregated. 
(e) COLLATERAL.— 
(1) PRIMARY RESIDENCE.—In obtaining the best available collateral 
for a loan of not more than $200,000 under this section, the Adminis-
trator shall not require the owner of a small business concern to use 
the primary residence of the owner as collateral if the Administrator 
determines that the owner has other assets that are of equal quality 
and have a value equal to or greater than the amount of the loan that 
could be used as collateral for the loan. 
(2) NO
REDUCTION
OF
AMOUNT
OR
MODIFICATION
OF
STAND-
ARDS.—Nothing in paragraph (1) shall be construed to— 
(A) reduce the amount of collateral required by the Adminis-
trator in connection with a loan described in paragraph (1); or 
(B) modify the standards used to evaluate the quality (rather 
than the type) of the collateral. 
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(f) NURSERIES.—The Administrator shall not withhold disaster assist-
ance under this section to a nursery that is a victim of a drought disaster. 
(g) DISASTER LOANS FOR SUPERSTORM SANDY.— 
(1) IN GENERAL.—Notwithstanding any other provision of law, and 
subject to the same requirements and procedures that are used to make 
loans under the disaster loan program, a small business concern, home-
owner, nonprofit entity, or renter that was located within an area and 
during the time period with respect to which a major disaster was de-
clared by the President under section 401 of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170) by 
reason of Superstorm Sandy may apply to the Administrator— 
(A) for a loan to repair, rehabilitate, or replace property dam-
aged or destroyed by reason of Superstorm Sandy; or 
(B) if such a small business concern has suffered substantial 
economic injury by reason of Superstorm Sandy, for a loan to as-
sist such a small business concern. 
(2) TIMING.—The Administrator shall select loan recipients and 
make available loans for a period of not less than 1 year after the date 
on which the Administrator carries out paragraph (1). 
(3) INSPECTOR GENERAL REVIEW.—Not later than 6 months after 
the date on which the Administrator begins carrying out paragraph (1), 
the SBA Inspector General shall initiate a review of the controls for 
ensuring applicant eligibility for loans made under this subsection. 
§ 221103. Loans to assist small business concerns that suffer 
injury as a result of an essential employee’s being 
ordered to active military duty 
(a) DEFINITIONS.—In this section: 
(1) ESSENTIAL EMPLOYEE.—The term ‘‘essential employee’’ means 
an individual who is employed by a small business concern and whose 
managerial or technical expertise is critical to the successful day-to-day 
operations of the small business concern. 
(2) PERIOD OF MILITARY CONFLICT.—The term ‘‘period of military 
conflict’’ has the meaning given the term in section 201106(a) of this 
title. 
(3) RESERVIST EXPECTING ACTIVATION.—The term ‘‘reservist ex-
pecting activation’’ means a reservist who— 
(A) has not been ordered to active duty; 
(B) expects to be ordered to active duty during a period of mili-
tary conflict; and 
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(C) is a key employee of a small business concern that can rea-
sonably demonstrate that the small business concern will suffer 
economic injury in the absence of the reservist. 
(4) SUBSTANTIAL ECONOMIC INJURY.—The term ‘‘substantial eco-
nomic injury’’ means an economic harm to a small business concern 
that results in the inability of the small business concern to— 
(A) meet its obligations as they mature; 
(B) pay 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. 
(b) IN GENERAL.—Except as to agricultural enterprises, to the extent 
and in such amounts as are provided in advance in appropriation Acts, the 
Administrator may make a loan (directly or in cooperation with a bank or 
other lending institution through an agreement to participate on an imme-
diate or deferred basis) to assist a small business concern that has suffered 
or that is likely to suffer substantial economic injury as the result of an 
essential employee of the small business concern’s being ordered to active 
military duty during a period of military conflict. 
(c) ELIGIBILITY PERIOD.— 
(1) IN GENERAL.—A small business concern shall be eligible for as-
sistance under this section during the period beginning on the date on 
which an essential employee is ordered to active duty and ending on 
the date that is 1 year after the date on which the essential employee 
is discharged or released from active duty. 
(2) EXTENSION.—The Administrator may, when appropriate (as de-
termined by the Administrator), extend the ending date specified in 
paragraph (1) by not more than 1 year. 
(d) INTEREST RATE.—A loan or guarantee made under this section shall 
be made at the same interest rate as in the case of an economic injury dis-
aster loan under section 221102 of this title. 
(e) LOAN AMOUNT.— 
(1) IN GENERAL.—Except as provided in paragraph (2), no loan may 
be made under this section if the total amount outstanding and com-
mitted to the borrower under the disaster loan program would exceed 
$1,500,000. 
(2) MAJOR SOURCE OF EMPLOYMENT.—If the Administrator deter-
mines that the applicant constitutes a major source of employment in 
its surrounding area (including a borrower that was not a major source 
of employment before the disaster but became a major source of em-
ployment after the disaster), as determined by the Administrator, the 
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Administrator may waive the $1,500,000 limitation under paragraph 
(1). 
(f) PRECONSIDERATION PROCESS.—The Administrator shall establish a 
preconsideration process under which the Administrator— 
(1) may collect all relevant materials necessary for processing a loan 
to a small business concern under this section before a reservist expect-
ing activation who is employed by the small business concern is acti-
vated; and 
(2) shall distribute funds for any loan approved under paragraph (1) 
if the reservist expecting activation is activated. 
(g) OUTREACH AND TECHNICAL ASSISTANCE PROGRAM.— 
(1) IN GENERAL.—The Administrator, in consultation with the Sec-
retary of Veterans Affairs and the Secretary of Defense, may develop 
a comprehensive outreach and technical assistance program (referred to 
in this subsection as the ‘‘program’’) to— 
(A) market the loans available under this section to reservists 
and family members of reservists (including both reservists that 
are on active duty and reservists that are not on active duty); and 
(B) provide technical assistance to a small business concern ap-
plying for a loan under this section. 
(2) COMPONENTS.—The program shall— 
(A) incorporate appropriate websites maintained by SBA, the 
Department of Veterans Affairs, and the Department of Defense; 
and 
(B) require that information on the program be made available 
to small business concerns directly through— 
(i) the district offices and resource partners of SBA, in-
cluding small business development centers, women’s business 
centers, and the SCORE; and 
(ii) the Department of Veterans Affairs, the Department of 
Defense, and other Federal agencies. 
(h) NONCOLLATERALIZED LOANS.— 
(1) IN GENERAL.—Notwithstanding any other provision of law, the 
Administrator may make a loan under this section of not more than 
$50,000 without collateral. 
(2) DEFERRAL OF PAYMENT.—The Administrator may defer pay-
ment of principal and interest on a loan described in paragraph (1) 
during the longer of— 
(A) the 1-year period beginning on the date of the initial dis-
bursement of the loan; or 
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(B) the period during which the essential employee is on active 
duty. 
(i) PRIORITY.—The Administrator shall— 
(1) give priority to any application for a loan under this section; and 
(2) process and make a determination regarding applications under 
this section prior to processing or making a determination on other 
loan applications under the disaster loan program, on a rolling basis. 
§ 221104. Public awareness of disaster declaration and ap-
plication periods 
(a) COORDINATION WITH FEMA.— 
(1) IN GENERAL.—Notwithstanding any other provision of law, for 
any disaster declared under this chapter or major disaster (including 
any major disaster relating to which the Administrator declares eligi-
bility for additional disaster assistance under section 221108 of this 
title), the Administrator, in consultation with the Administrator of the 
Federal Emergency Management Agency, shall ensure, to the max-
imum extent practicable, that all application periods for disaster relief 
under this subtitle correspond with application deadlines established 
under the Robert T. Stafford Disaster Relief and Emergency Assist-
ance Act (42 U.S.C. 5121 et seq.), or as extended by the President. 
(2) DEADLINES.—Notwithstanding any other provision of law, not 
later than 10 days before the closing date of an application period for 
a major disaster (including any major disaster relating to which the 
Administrator declares eligibility for additional disaster assistance 
under section 221108 of this title), the Administrator, in consultation 
with the Administrator of the Federal Emergency Management Agency, 
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 that includes— 
(A) the deadline for submitting applications for assistance under 
this subtitle relating to the major disaster; 
(B) information regarding the number of loan applications and 
disbursements processed by the Administrator relating to the 
major disaster for each day during the period beginning on the 
date on which the major disaster was declared and ending on the 
date of the report; and 
(C) an estimate of the number of potential applicants that have 
not submitted an application relating to the major disaster. 
(b) PUBLIC AWARENESS OF DISASTERS.—If a disaster is declared under 
this chapter or the Administrator declares eligibility for additional disaster 
assistance under section 221108 of this title, the Administrator shall make 
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every effort to communicate through radio, television, print, and web-based 
outlets all relevant information needed by disaster loan applicants, includ-
ing— 
(1) the date of the declaration; 
(2) the names of cities and towns within the disaster area; 
(3) loan application deadlines related to the disaster; 
(4) all relevant contact information for victim services available 
through the Administrator (including links to small business develop-
ment center websites); 
(5) links to relevant Federal and State disaster assistance websites, 
including links to websites providing information regarding assistance 
available from the Federal Emergency Management Agency; 
(6) information on eligibility criteria for the disaster assistance pro-
grams, including where loan applications can be found; and 
(7) loan application materials that clearly state the function of SBA 
as the Federal source of disaster loans for homeowners and renters. 
(c) MARKETING AND OUTREACH.—The Administrator shall create a mar-
keting and outreach plan that— 
(1) encourages a proactive approach to the disaster relief efforts of 
the Administrator; 
(2) makes clear the services provided by the Administrator, including 
contact information, application information, and timelines for submit-
ting applications, the review of applications, and the disbursement of 
funds; 
(3) describes each of the disaster assistance programs, including how 
each disaster assistance program is made available and the eligibility 
requirements for each disaster assistance program; 
(4) provides for regional marketing, focusing on disasters occurring 
in each SBA region before June 18, 2008, and likely scenarios for dis-
asters in each SBA region; and 
(5) ensures that the marketing plan is made available at small busi-
ness development centers and on the SBA website. 
§ 221105. Disaster loan processing 
(a) MAJOR DISASTER LOAN PROCESSING AND LOSS VERIFICATION BY 
QUALIFIED PRIVATE CONTRACTORS.— 
(1) MAJOR DISASTER LOAN PROCESSING.—The Administrator may 
enter into an agreement with a qualified private contractor, as deter-
mined by the Administrator, to process loans under this chapter in the 
event of a major disaster (including any major disaster relating to 
which the Administrator declares eligibility for additional disaster as-
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sistance under section 221108 of this title), under which the Adminis-
trator shall pay the contractor a fee for each loan processed. 
(2) LOAN LOSS VERIFICATION.—The Administrator may enter into 
an agreement with a qualified lender or loss verification professional, 
as determined by the Administrator, to verify losses for loans under 
this chapter in the event of a major disaster (including any major dis-
aster relating to which the Administrator declares eligibility for addi-
tional disaster assistance under section 221108 of this title), under 
which the Administrator shall pay the lender or verification professional 
a fee for each loan for which the lender or verification professional 
verifies a loss. 
(b) COORDINATION OF EFFORTS BETWEEN THE ADMINISTRATOR AND 
THE COMMISSIONER OF INTERNAL REVENUE TO EXPEDITE LOAN PROC-
ESSING.—The Administrator and the Commissioner of Internal Revenue 
shall, to the maximum extent practicable, ensure that all relevant and allow-
able tax records for loan approval are shared with loan processors in an ex-
pedited manner on request by the Administrator. 
(c) INFORMATION TRACKING AND FOLLOWUP SYSTEM.— 
(1) INFORMATION TRACKING.— 
(A) IN GENERAL.—The Administrator shall develop, implement, 
and maintain a centralized information system to track commu-
nications between SBA personnel and applicants for disaster as-
sistance. 
(B) INFORMATION TO BE RECORDED.—The information system 
shall ensure that when an applicant for disaster assistance com-
municates with SBA personnel on a matter relating to the applica-
tion, the following information is recorded: 
(i) The method of communication. 
(ii) The date of the communication. 
(iii) The identity of the SBA personnel. 
(iv) A summary of the subject matter of the communica-
tion. 
(2) FOLLOWUP.—The Administrator shall ensure that an applicant 
for disaster assistance receives, by telephone, mail, or electronic mail, 
followup communications from SBA personnel at all critical stages of 
the application process, including the following: 
(A) When SBA personnel determine that additional information 
or documentation is required to process the application. 
(B) When SBA personnel determine whether to approve or deny 
the disaster assistance. 
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(C) When the primary contact person managing the application 
for disaster assistance has changed. 
(d) DISASTER ASSISTANCE PROCESSING REDUNDANCY.—The Adminis-
trator shall ensure that SBA has in place a facility for disaster assistance 
processing that, when SBA’s primary facility for disaster loan processing 
becomes unavailable, is able to take over all disaster loan processing from 
the primary facility within 2 days. 
§ 221106. Disaster assistance employees 
(a) IN GENERAL.—In carrying out the disaster assistance programs, the 
Administrator may, where practicable, ensure that the number of full-time 
equivalent employees— 
(1) in the Office of the Disaster Assistance is not fewer than 800; 
and 
(2) in the Disaster Cadre of SBA is not fewer than 1,000. 
(b) REPORT.—In carrying out the disaster assistance programs, if the 
number of full-time employees for the Office of Disaster Assistance or the 
Disaster Cadre of SBA is below the level required by subsection (a) for that 
office, not later than 21 days after the date on which the staffing level de-
creases below the level required by subsection (a), the Administrator shall 
submit to the Committee on Appropriations and Committee on Small Busi-
ness and Entrepreneurship of the Senate and the Committee on Appropria-
tions and Committee on Small Business of the House of Representatives a 
report that— 
(1) details staffing levels on that date; 
(2) requests, if practicable and determined to be appropriate by the 
Administrator, additional funds for additional employees; and 
(3) contains such additional information as the Administrator deter-
mines to be appropriate. 
§ 221107. Maximum loan amount 
(a) AGGREGATE LOAN AMOUNTS.—Except as provided in subsection (b), 
and notwithstanding any other provision of law, the aggregate loan amount 
outstanding and committed to a borrower under the disaster loan program 
shall not exceed $2,000,000. 
(b) WAIVER.—The Administrator may increase the aggregate loan 
amount under subsection (a) for loans relating to a disaster to a level estab-
lished by the Administrator based on appropriate economic indicators for 
the region in which the disaster occurred. 
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§ 221108. Additional disaster assistance in cases of extraor-
dinary disaster 
(a) DEFINITION OF ELIGIBLE SMALL BUSINESS CONCERN.—In this sec-
tion, the term ‘‘eligible small business concern’’ means a small business con-
cern— 
(1) that has suffered extraordinary disaster-related substantial eco-
nomic injury as a result of an extraordinary disaster; and 
(2)(A) for which not less than 25 percent of the market share of the 
small business concern is from business transacted in the extraordinary 
disaster area; 
(B) for which not less than 25 percent of an input into a production 
process of the small business concern is from the extraordinary disaster 
area; or 
(C) that relies on a provider located in the extraordinary disaster 
area for a service that is not readily available elsewhere. 
(b) DECLARATION OF EXTRAORDINARY DISASTER.—If the President de-
clares a major disaster, the Administrator may declare that the major dis-
aster constitutes an extraordinary disaster if the major disaster— 
(1) results in— 
(A) extraordinary levels of casualties or damage; or 
(B) disruption severely affecting the population (including a 
mass evacuation), the infrastructure, the environment, the econ-
omy, national morale, or government functions in an area; 
(2) is comparable to a catastrophic incident described in the Admin-
istrator’s national response plan (including any successor to the na-
tional response plan), unless the national response plan expires and 
there is no successor to the plan, in which case this paragraph shall 
be of no effect; and 
(3) is of such size and scope that— 
(A) the disaster loan program is incapable of providing adequate 
and timely assistance to individuals or business concerns located 
within the major disaster area; or 
(B) a significant number of business concerns outside the major 
disaster area have suffered major disaster-related substantial eco-
nomic injury as a result of the major disaster. 
(c) ADDITIONAL ECONOMIC INJURY DISASTER LOAN ASSISTANCE.— 
(1) IN GENERAL.—If the Administrator declares an extraordinary 
disaster, the Administrator may make such loans (directly or in co-
operation with a bank or other institution through an agreement to 
participate on an immediate or deferred basis) as the Administrator de-
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termines to be appropriate to eligible small business concerns located 
anywhere in the United States. 
(2) PROCESSING TIME.— 
(A) IN GENERAL.—If the Administrator determines that the av-
erage processing time for applications for disaster loans under this 
subsection relating to a specific major disaster is more than 15 
days, the Administrator shall give priority to the processing of 
such applications submitted by eligible small business concerns lo-
cated inside the major disaster area until the Administrator deter-
mines that the average processing time for such applications is not 
more than 15 days. 
(B) SUSPENSION OF APPLICATIONS FROM OUTSIDE MAJOR DIS-
ASTER AREA.—If the Administrator determines that the average 
processing time for applications for disaster loans under this sub-
section relating to a specific major disaster is more than 30 days, 
the Administrator shall suspend the processing of such applica-
tions submitted by eligible small business concerns located outside 
the major disaster area until the Administrator determines that 
the average processing time for such applications is not more than 
15 days. 
(3) LOAN TERMS.—A loan under this subsection shall be made on 
the same terms as a loan under section 221102 of this title. 
§ 221109. Reduction of approval delays and disbursement 
delays 
The Administrator shall provide a clear and concise notification on all ap-
plication materials for loans made under the disaster loan program and on 
relevant websites notifying an applicant that— 
(1) the applicant may submit all documentation necessary for the ap-
proval of the loan at the time of application; and 
(2) failure to submit all documentation could delay the approval and 
disbursement of the loan. 
§ 221110. Transparency in loan approvals 
The Administrator shall establish and implement clear, written policies 
and procedures for analyzing the ability of a loan applicant to repay a loan 
made under the disaster loan program. 
§ 221111. Awards to small business development centers, 
women’s business centers, and SCORE for disaster 
recovery 
(a) IN GENERAL.—The Administrator may provide financial assistance to 
a small business development center, a women’s business center, SCORE, 
or any proposed consortium of those to spur disaster recovery and growth 
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of small business concerns located in an area for which the President de-
clares a major disaster. 
(b) FORM OF FINANCIAL ASSISTANCE.—Financial assistance provided 
under this section shall be in the form of a grant, contract, or cooperative 
agreement. 
(c) NO MATCHING FUND REQUIREMENT.—Matching funds shall not be 
required for any grant, contract, or cooperative agreement under this sec-
tion. 
(d) REQUIREMENTS.—A recipient of financial assistance under this sec-
tion shall provide counseling, training, and other related services, such as 
promoting long-term resiliency, to small business concerns and entre-
preneurs affected by a major disaster. 
(e) PERFORMANCE.— 
(1) IN GENERAL.—The Administrator, in cooperation with the recipi-
ents of financial assistance under this section, shall establish metrics 
and goals for performance of grants, contracts, and cooperative agree-
ments under this section. 
(2) METRICS AND GOALS.— The metrics and goals established under 
paragraph (1) shall include— 
(A) recovery of sales; 
(B) recovery of employment; 
(C) reestablishment of business premises; and 
(D) establishment of new small business concerns. 
(3) USE OF ESTIMATES.—The Administrator shall base the metrics 
and goals established under paragraph (1), in part, on the estimates 
of disaster impact prepared by the Office of Disaster Assistance for 
purposes of estimating loanmaking requirements. 
(f) TERM.— 
(1) IN GENERAL.—The term of any grant, contract, or cooperative 
agreement under this section shall be not more than 2 years. 
(2) EXTENSION.—The Administrator may make 1 extension of a 
grant, contract, or cooperative agreement under this section for a pe-
riod of not more than 1 year, on a showing of good cause and need 
for the extension. 
(g) EXEMPTION FROM OTHER PROGRAM REQUIREMENTS.—Financial as-
sistance provided under this section is in addition to, and wholly separate 
from, any other form of assistance provided by the Administrator under this 
subtitle. 
(h) COMPETITIVE BASIS.—The Administrator shall award financial as-
sistance under this section on a competitive basis. 
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§ 221112. Supplemental assistance for contractor malfea-
sance 
(a) IN GENERAL.—If— 
(1) a contractor or other person engages in malfeasance in connec-
tion with repairs to, rehabilitation of, or replacement of real or personal 
property relating to which a loan was made under the disaster loan 
program; and 
(2) the malfeasance results in substantial economic damage to the 
recipient of the loan or a substantial risk to health or safety; 
on receiving documentation of the substantial economic damage or the sub-
stantial risk to health or safety from an independent loss verifier, and sub-
ject to subsection (b), the Administrator may increase the amount of the 
loan as necessary for the cost of repairs, rehabilitation, or replacement need-
ed to address the cause of the economic damage or health or safety risk. 
(b) REQUIREMENTS.— 
(1) IN GENERAL.—The Administrator may increase the amount of 
a loan under subparagraph (A) only on receiving an appropriate certifi-
cation from the borrower and person performing the mitigation attest-
ing to the reasonableness of the mitigation costs and an assignment of 
any proceeds received from the person engaging in the malfeasance. 
(2) AMOUNT.—The assignment of proceeds recovered from the per-
son engaging in the malfeasance shall be equal to the amount of the 
loan. 
(3) AUDIT AND VERIFICATION.—Any mitigation activities shall be 
subject to audit and independent verification of completeness and cost 
reasonableness. 
§ 221113. Business recovery centers 
(a) IN GENERAL.—The Administrator, acting through the SBA district 
offices, shall identify locations that may be used as recovery centers by the 
SBA in the event of a disaster declared under this chapter or a major dis-
aster. 
(b) REQUIREMENTS
FOR
IDENTIFICATION.—An SBA district office 
shall— 
(1) identify a location described in subsection (a) in each county in 
the area served by the SBA district office; and 
(2) ensure that the locations identified under subsection (a) may be 
used as a recovery center without cost to the Government, to the extent 
practicable. 
§ 221114. Oversight of economic injury disaster loans 
The Administrator— 
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