(28) ECONOMICALLY
DISADVANTAGED
INDIAN
TRIBE.—The term 
‘‘economically disadvantaged Indian tribe’’ has the meaning given the 
term in section 23101 of this title. 
(29) ENERGY EFFICIENCY PROJECT.—The term ‘‘energy efficiency 
project’’ means the installation or upgrading of equipment that results 
in a significant reduction in energy usage. 
(30) ENERGY MEASURE.—The term ‘‘energy measure’’ includes— 
(A) solar thermal energy equipment that is— 
(i) of the active type based on mechanically forced energy 
transfer; 
(ii) of the passive type based on convective, conductive, or 
radiant energy transfer; or 
(iii) a combination of the types described in clauses (i) and 
(ii); 
(B) photovoltaic cells and related equipment; 
(C) a product or service— 
(i) the primary purpose of which is conservation of energy 
through a device or technique that increases the energy effi-
ciency of existing equipment, methods of operation, or sys-
tems that use fossil fuel; and 
(ii) that is on the Energy Conservation Measures list of the 
Secretary of Energy or that the Administrator determines to 
be consistent with the intent of this paragraph; 
(D) equipment the primary purpose of which is production of 
energy from wood, biological waste, grain, or another biomass (as 
defined by the Administrator) source of energy; 
(E) equipment the primary purpose of which is industrial cogen-
eration of energy, district heating, or production of energy from 
industrial waste; 
(F) hydroelectric power equipment; 
(G) wind energy conversion equipment; and 
(H) an engineering, architectural, consulting, or other profes-
sional service that is necessary or appropriate to aid citizens in 
using any of the measures described in subparagraphs (A) to (G). 
(31) EXPEDITED
DISASTER
ASSISTANCE
LOAN
GUARANTEE
PRO-
GRAM.—The term ‘‘expedited disaster assistance loan guarantee pro-
gram’’ means the program under chapter 219. 
(32) EXPORT
WORKING
CAPITAL
PROGRAM.—The term ‘‘export 
working capital program’’ means the program established under section 
20508 of this title. 
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(33) EXPRESS LENDER.—The term ‘‘express lender’’ means a lender 
authorized by the Administrator to participate in the express loan pro-
gram. 
(34) EXPRESS LOAN.—The term ‘‘express loan’’ means a loan made 
pursuant to section 20320 of this title in which a lender utilizes to the 
maximum extent practicable its own loan analyses, procedures, and 
documentation. 
(35) EXPRESS LOAN PROGRAM.—The term ‘‘express loan program’’ 
means the program for express loans established by the Administrator 
under section 7(a)(25)(B) of the Small Business Act (15 U.S.C. 
636(a)(25)(B)) (as in existence on April 5, 2004), with a guarantee 
rate of not more than 50 percent. 
(36) FEDERAL AGENCY.—Except in subtitles III and IV: 
(A) IN GENERAL.—The term ‘‘Federal agency’’ has the meaning 
given the term ‘‘agency’’ in section 551 of title 5. 
(B) EXCLUSION.—The term ‘‘Federal agency’’ does not in-
clude— 
(i) the United States Postal Service; or 
(ii) the Government Accountability Office. 
(37) GENERAL BUSINESS LOAN PROGRAM.—The term ‘‘general busi-
ness loan program’’ means the program under division B of subtitle II. 
(38) HISTORICALLY UNDERUTILIZED BUSINESS ZONE.—The term 
‘‘historically underutilized business zone’’ has the meaning given the 
term in section 25301 of this title. 
(39) HOMEOWNER.—The term ‘‘homeowner’’ includes an owner or 
lessee of residential property (including personal property of the owner 
or lessee of the residential property). 
(40) HUBZONE.—The term ‘‘HUBZone’’ has the meaning given the 
term in section 25301 of this title. 
(41) HUBZONE PROGRAM.—The term ‘‘HUBZone program’’ means 
the program under chapter 253. 
(42) HUBZONE SMALL BUSINESS CONCERN.—The term ‘‘HUBZone 
small business concern’’ has the meaning given the term in section 
25301 of this title. 
(43) IMMEDIATE DISASTER ASSISTANCE PROGRAM.—The term ‘‘im-
mediate disaster assistance program’’ means the program under chap-
ter 217. 
(44) INDIAN RESERVATION.— 
(A) IN
GENERAL.—The term ‘‘Indian reservation’’ has the 
meaning given the term ‘‘Indian country’’ in section 1151 of title 
18. 
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(B) EXCLUSIONS.—The term ‘‘Indian reservation’’ does not in-
clude— 
(i) land located in a State in which an Indian tribe did not 
exercise governmental jurisdiction on December 21, 2000, un-
less that Indian tribe is recognized after December 21, 2000, 
by either an Act of Congress or pursuant to regulations of 
the Secretary of the Interior for the administrative recogni-
tion that an Indian group exists as an Indian tribe (part 83 
of title 25, Code of Federal Regulations); or 
(ii) land taken into trust or acquired by an Indian tribe 
after December 21, 2000, if the land— 
(I) is not located within the external boundaries of an 
Indian reservation or former reservation; or 
(II) is not contiguous to the land held in trust or re-
stricted status on December 21, 2000. 
(C) LAND IN OKLAHOMA.—With respect to land in the State of 
Oklahoma, the term ‘‘Indian reservation’’ means land that— 
(i) is within the jurisdictional areas of an Oklahoma Indian 
tribe (as determined by the Secretary of the Interior); and 
(ii) is recognized by the Secretary of the Interior as eligible 
for trust land status under part 151 of title 25, Code of Fed-
eral Regulations (as in effect on December 21, 2000). 
(45) MAJOR DISASTER.—The term ‘‘major disaster’’ has the mean-
ing given the term in section 102 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 5122). 
(46) MAJOR
DISASTER
AREA.—The term ‘‘major disaster area’’ 
means the area for which a major disaster is declared. 
(47) MICROLOAN PROGRAM.—The term ‘‘microloan program’’ means 
the program under chapter 211. 
(48) MILITARY DEPARTMENT.—The term ‘‘military department’’ has 
the meaning given the term in section 101 of title 10. 
(49) NATIVE HAWAIIAN ORGANIZATION.—The term ‘‘Native Hawai-
ian organization’’ means a community service organization serving Na-
tive Hawaiians in the State of Hawaii— 
(A) that is a nonprofit corporation that has filed articles of in-
corporation with the director of the Hawaii Department of Com-
merce and Consumer Affairs, or any successor agency; 
(B) that is controlled by Native Hawaiians; and 
(C) the business activities of which will principally benefit Na-
tive Hawaiians in the State of Hawaii. 
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(50) NEW MARKETS VENTURE CAPITAL COMPANY PROGRAM.—The 
term ‘‘new markets venture capital company program’’ means the pro-
gram under chapter 305. 
(51) NON-FEDERALLY REGULATED LENDER.—The term ‘‘non-feder-
ally regulated lender’’ means a business concern (other than a small 
business lending company)— 
(A) that is authorized by the Administrator to make loans 
under the general business loan program; 
(B) that is subject to regulation by a State; and 
(C) the lending activities of which are not regulated by any Fed-
eral banking authority. 
(52) PREFERRED LENDER.—The term ‘‘preferred lender’’ means a 
lender participating in the preferred lenders program. 
(53) PREFERRED LENDERS PROGRAM.—The term ‘‘preferred lenders 
program’’ means the preferred lenders program carried out under sec-
tion 10332(f)(3) of this title. 
(54) PREMIER CERTIFIED LENDERS PROGRAM.—The term ‘‘premier 
certified lenders program’’ means the program under section 33108 of 
this title. 
(55) PRIME PROGRAM.—The term ‘‘PRIME program’’ means the 
program under chapter 401. 
(56) PRIVATE DISASTER ASSISTANCE PROGRAM.—The term ‘‘private 
disaster assistance program’’ means the program under chapter 215. 
(57) PROCURING AGENCY.—The term ‘‘procuring agency’’ means a 
Federal agency that has procurement power. 
(58) PUBLIC OR PRIVATE ORGANIZATION FOR THE DISABLED.—The 
term ‘‘public or private organization for the disabled’’ means an organi-
zation— 
(A) that is organized under the laws of the United States or of 
a State; 
(B) that is operated in the interest of disabled individuals; 
(C) the net income of which does not inure in whole or in part 
to the benefit of any shareholder or other individual; 
(D) that complies with any applicable occupational health and 
safety standard prescribed by the Secretary of Labor; and 
(E) that, in the production of commodities and in the provision 
of services during any fiscal year in which the organization re-
ceived financial assistance under the general business loan pro-
gram, employs disabled individuals for not less than 75 percent of 
the man-hours required for the production or provision of the com-
modities or services. 
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(59) QUALIFIED CENSUS TRACT.—The term ‘‘qualified census tract’’ 
has the meaning given the term in section 42(d)(5)(C)(ii) of the Inter-
nal Revenue Code of 1986 (26 U.S.C. 42(d)(5)(C)(ii)). 
(60) QUALIFIED EMPLOYEE TRUST.—The term ‘‘qualified employee 
trust’’ has the meaning given the term in section 20509(a) of this title. 
(61) QUALIFIED HUBZONE SMALL BUSINESS CONCERN.—The term 
‘‘qualified HUBZone small business concern’’ has the meaning given 
the term in section 25301 of this title. 
(62) QUALIFIED INDIAN TRIBE.—The term ‘‘qualified Indian tribe’’ 
means an Indian tribe (as defined in section 4 of the Indian Self-Deter-
mination and Education Assistance Act (25 U.S.C. 450b)) that owns 
and controls 100 percent of a small business concern. 
(63) QUALIFIED NONMETROPOLITAN COUNTY.—The term ‘‘qualified 
nonmetropolitan county’’ has the meaning given the term in section 
25301 of this title. 
(64) REDESIGNATED AREA.—The term ‘‘redesignated area’’ has the 
meaning given the term in section 25301 of this title. 
(65) RENEWABLE ENERGY SYSTEM.—The term ‘‘renewable energy 
system’’ means a system of energy derived from— 
(A) a wind, solar, biomass (including biodiesel), or geothermal 
source; or 
(B) hydrogen derived from biomass or water using an energy 
source described in subparagraph (A). 
(66) RENEWABLE FUEL CAPITAL INVESTMENT PILOT PROGRAM.— 
The term ‘‘renewable fuel capital investment pilot program’’ means the 
program under chapter 307. 
(67) RESERVIST.—The term ‘‘reservist’’ means a member of a re-
serve component of the Armed Forces, as described in section 101 of 
title 10. 
(68) SCORE.—The term ‘‘SCORE’’ means the volunteer program 
known as SCORE. 
(69) SERVICE-DISABLED VETERAN.—The term ‘‘service-disabled vet-
eran’’ means a veteran with a disability that is service-connected (as 
defined in section 101 of title 38). 
(70) SIMPLIFIED ACQUISITION THRESHOLD.—The term ‘‘simplified 
acquisition threshold’’ has the meaning given the term in section 4 of 
the Office of Federal Procurement Policy Act (41 U.S.C. 403). 
(71) SMALL AGRICULTURAL COOPERATIVE.— 
(A) IN GENERAL.—The term ‘‘small agricultural cooperative’’ 
means an association (corporate or otherwise) acting pursuant to 
the Agricultural Marketing Act (12 U.S.C. 1141j) the size of 
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which does not exceed the size standard established by the Admin-
istrator for other similar agricultural small business concerns. 
(B) SIZE DETERMINATION.—In determining the size of an asso-
ciation described in subparagraph (A), the Administrator— 
(i) shall regard the association as a business concern; and 
(ii) shall not include the income or employees of any mem-
ber shareholder of the association. 
(72) SMALL
BUSINESS
COMPETITIVENESS
DEMONSTRATION
PRO-
GRAM.—The term ‘‘small business competitiveness demonstration pro-
gram’’ means the program under chapter 249. 
(73) SMALL BUSINESS CONCERN.— 
(A) IN GENERAL.—The term ‘‘small business concern’’ means 
a business concern (including an agricultural enterprise) that— 
(i) is independently owned and operated; and 
(ii) is not dominant in its field of operation. 
(B) INCLUSIONS.—Notwithstanding any other provision of law, 
an agricultural enterprise that has annual receipts (including re-
ceipts of its affiliates) not in excess of $750,000 shall be deemed 
to be a small business concern. 
(C) ESTABLISHMENT OF SIZE STANDARDS.— 
(i) IN GENERAL.—In addition to the criteria specified in 
subparagraph (A), the Administrator may specify detailed 
definitions or standards by which a business concern may be 
determined to be a small business concern for the purposes 
of this title or any other law. 
(ii) ADDITIONAL CRITERIA.—The standards described in 
clause (i) may use— 
(I) number of employees, dollar volume of business, 
net worth, net income, or a combination thereof; or 
(II) other appropriate factors. 
(iii) REQUIREMENTS FOR PRESCRIPTION OF SIZE STAND-
ARD.—Unless specifically authorized by statute, no Federal 
agency may prescribe a size standard for categorizing a busi-
ness concern as a small business concern unless the proposed 
size standard— 
(I) is proposed after an opportunity for public notice 
and comment; 
(II) provides for determining— 
(aa) the size of a manufacturing concern as meas-
ured by the manufacturing concern’s average em-
ployment based on employment during each of the 
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manufacturing concern’s pay periods for the pre-
ceding 12 months; 
(bb) the size of a business concern providing serv-
ices on the basis of the annual average gross re-
ceipts of the business concern over a period of not 
less than 3 years; 
(cc) the size of other business concerns on the 
basis of data over a period of not less than 3 years; 
or 
(dd) other appropriate factors; and 
(III) is approved by the Administrator. 
(iv) FACTORS TO BE CONSIDERED.—In establishing or ap-
proving a size standard under this subparagraph, the Admin-
istrator shall— 
(I) ensure that the size standard varies from industry 
to industry to the extent necessary to reflect the dif-
fering characteristics of the various industries; and 
(II) consider other factors that the Administrator con-
siders to be relevant. 
(v) LISTING OF ADDITIONAL SIZE STANDARDS.—The Ad-
ministrator shall prescribe regulations to carry out this sub-
paragraph. The regulations shall include a listing of all small 
business size standards prescribed by statute or by individual 
Federal agencies, identifying the programs or purposes to 
which the size standards apply. 
(74) SMALL
BUSINESS
CONCERN
OWNED
AND
CONTROLLED
BY 
SERVICE-DISABLED
VETERANS.—The term ‘‘small business concern 
owned and controlled by service-disabled veterans’’ means a small busi-
ness concern— 
(A) not less than 51 percent of which is owned by one or more 
service-disabled veterans; and 
(B) the management and daily business operations of which are 
controlled by— 
(i) one or more service-disabled veterans; or 
(ii) in the case of a veteran with permanent and severe dis-
ability, the spouse or permanent caregiver of the veteran. 
(75) SMALL BUSINESS CONCERN OWNED AND CONTROLLED BY SO-
CIALLY AND ECONOMICALLY DISADVANTAGED INDIVIDUALS.—The term 
‘‘small business concern owned and controlled by socially and economi-
cally disadvantaged individuals’’ has the meaning given the term in sec-
tion 23101 of this title. 
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(76) SMALL BUSINESS CONCERN OWNED AND CONTROLLED BY VET-
ERANS.—The term ‘‘small business concern owned and controlled by 
veterans’’ means a small business concern— 
(A) not less than 51 percent of which is owned by one or more 
veterans; and 
(B) the management and daily business operations of which are 
controlled by one or more veterans. 
(77) SMALL
BUSINESS
CONCERN
OWNED
AND
CONTROLLED
BY 
WOMEN.—The term ‘‘small business concern owned and controlled by 
women’’ means a small business concern— 
(A)(i) at least 51 percent of which is owned by one or more 
women; or 
(ii) in the case of a publicly owned business, at least 51 percent 
of the stock of which is owned by one or more women; and 
(B) the management and daily business operations of the busi-
ness of which are controlled by one or more women. 
(78) SMALL BUSINESS DEVELOPMENT CENTER.—The term ‘‘small 
business development center’’ means a small business development cen-
ter that receives financial assistance under chapter 271. 
(79) SMALL BUSINESS DEVELOPMENT CENTER PROGRAM.—The term 
‘‘small business development center program’’ means the small business 
development center program under chapter 271. 
(80) SMALL BUSINESS INVESTMENT COMPANY PROGRAM.—The term 
‘‘small business investment company program’’ means the program 
under chapter 303. 
(81) SMALL BUSINESS LENDING COMPANY.—The term ‘‘small busi-
ness lending company’’ means a business concern— 
(A) that is authorized by the Administrator to make loans 
under the general business loan program; and 
(B) the lending activities of which are not subject to regulation 
by any Federal or State regulatory agency. 
(82) SOCIALLY AND ECONOMICALLY DISADVANTAGED INDIVIDUAL.— 
The term ‘‘socially and economically disadvantaged individual’’ has the 
meaning given the term in section 23101 of this title. 
(83) SOCIALLY DISADVANTAGED INDIVIDUAL.—The term ‘‘socially 
disadvantaged individual’’ has the meaning given the term in section 
23101 of this title. 
(84) SURETY BOND GUARANTEE PROGRAM.—The term ‘‘surety bond 
guarantee program’’ means the program under chapter 321. 
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(85) UNITED
STATES.—The term ‘‘United States’’ includes the 
States, the District of Columbia, Puerto Rico, and the territories and 
possessions of the United States. 
(86) VETERAN.—The term ‘‘veteran’’ has the meaning given the 
term in section 101 of title 38. 
(87) WOMEN’S BUSINESS CENTER.—The term ‘‘women’s business 
center’’ means a women’s business center operating under chapter 273. 
(88) WOMEN’S BUSINESS CENTER PROGRAM.—The term ‘‘women’s 
business center program’’ means the women’s business center program 
under chapter 273. 
§ 10102. Declarations 
All declarations of findings, purposes, or policies enacted in connection 
with the enactment of any source law for this title, as originally enacted, 
or in connection with any amendment to this title, are incorporated in this 
title by reference. 
CHAPTER 103—SMALL BUSINESS ADMINISTRATION 
Subchapter I—Organization 
Sec. 
10301.
Establishment. 
10302.
Administrator. 
10303.
Deputy Administrator. 
10304.
Associate Administrators. 
10305.
Personnel. 
10306.
Small Business Investment Division. 
10307.
Office of Advocacy. 
10308.
Division of Program Certification and Eligibility. 
10309.
Office of International Trade. 
10310.
Office of Rural Affairs. 
10311.
Office of Women’s Business Ownership. 
10312.
Small Business and Agriculture Regulatory Enforcement Ombudsman; regional small 
business regulatory fairness boards. 
10313.
Office of Veterans Business Development. 
10314.
Task force on purchases from the blind and severely disabled. 
10315.
Advisory committees. 
10316.
Bureau of PCLP Oversight. 
Subchapter II—Functions 
10331.
General powers. 
10332.
Financial management. 
10333.
Small business economic database. 
10334.
Small business computer security and education program. 
10335.
General policies governing the granting and denial of applications. 
10336.
Retention of records. 
10337.
Consultation and cooperation with other Federal agencies. 
10338.
Representation of status as small business concern. 
10339.
Criminal background checks. 
Subchapter I—Organization 
§ 10301. Establishment 
(a) IN GENERAL.—There is established to carry out the authorities com-
mitted to the Administrator under this title and other law an agency to be 
known as the Small Business Administration. 
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(b) INDEPENDENT ESTABLISHMENT.—The Administration shall be under 
the general direction and supervision of the President and shall not be affili-
ated with or be within any other Federal agency. 
(c) OFFICES.—The principal office of the Administration shall be located 
in the District of Columbia. The Administrator may establish such branch 
and regional offices in other places in the United States as the Adminis-
trator may determine. 
§ 10302. Administrator 
(a) IN GENERAL.—The management of the Administration shall be vest-
ed in an Administrator who shall be appointed from civilian life by the 
President, by and with the advice and consent of the Senate, and who shall 
be a person of outstanding qualifications known to be familiar and sympa-
thetic with small business needs and problems. 
(b) FULL-TIME POSITION.—The Administrator shall not engage in any 
business, vocation, or employment other than that of serving as Adminis-
trator. 
§ 10303. Deputy Administrator 
(a) IN GENERAL.—The President may appoint a Deputy Administrator 
of the Administration, by and with the advice and consent of the Senate. 
(b) DUTIES.—The Deputy Administrator shall be Acting Administrator of 
the Administration during the absence or disability of the Administrator or 
in the event of a vacancy in the office of Administrator. 
§ 10304. Associate Administrators 
(a) IN GENERAL.—The Administrator may appoint 5 Associate Adminis-
trators (including the Associate Administrator specified in 10306 of this 
title) to assist in the execution of the functions vested in the Administrator. 
(b) ASSOCIATE ADMINISTRATOR FOR VETERANS BUSINESS DEVELOP-
MENT.— 
(1) IN
GENERAL.—One Associate Administrator appointed under 
subsection (a) shall be the Associate Administrator for Veterans Busi-
ness Development. 
(2) POSITION.—The Associate Administrator for Veterans Business 
Development shall be an appointee in the Senior Executive Service. 
(3) REPORTING.—The Associate Administrator for Veterans Busi-
ness Development shall report to and be responsible directly to the Ad-
ministrator. 
(4) DUTIES.—The Associate Administrator for Veterans Business 
Development shall administer the Office of Veterans Business Develop-
ment established under section 10313 of this title. 
(c) ASSOCIATE ADMINISTRATOR FOR MINORITY SMALL BUSINESS AND 
CAPITAL OWNERSHIP DEVELOPMENT.— 
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(1) IN GENERAL.—One of the Associate Administrators shall be des-
ignated at the time of appointment as the Associate Administrator for 
Minority Small Business and Capital Ownership Development. 
(2) POSITION.—The Associate Administrator for Minority Small 
Business and Capital Ownership Development shall be an employee in 
the competitive service or a career appointee in the Senior Executive 
Service, and the position of Associate Administrator for Minority Small 
Business and Capital Ownership Development shall be a career re-
served position. 
(3) DUTIES.— 
(A) FORMULATION AND COORDINATION OF POLICIES.—The As-
sociate Administrator for Minority Small Business and Capital 
Ownership Development shall be responsible for formulating and 
coordinating policies relating to Federal assistance to small busi-
ness concerns eligible for assistance under section 20504 of this 
title and small business concerns eligible to receive contracts under 
the business development program. 
(B) BUSINESS DEVELOPMENT PROGRAM.—The Associate Ad-
ministrator for Minority Small Business and Capital Ownership 
Development shall be responsible to the Administrator for the for-
mulation, execution, and management of the business development 
program (including the making of determinations under para-
graphs (8), (15), (16), and (17) of section 23101 of this title and 
sections 23310, 23312(a)(1), and 23318(g) of this title), under 
the supervision of the Administrator. 
(d) ASSOCIATE ADMINISTRATOR FOR SMALL BUSINESS DEVELOPMENT 
CENTERS.— 
(1) APPOINTMENT AND COMPENSATION.—The Administrator shall 
appoint an Associate Administrator for Small Business Development 
Centers who shall— 
(A) report to an official who is not more than one level below 
the Office of the Administrator; and 
(B) serve without regard to the provisions of title 5 governing 
appointments in the competitive service, and without regard to 
chapter 51 and subchapter III of chapter 53 of that title relating 
to classification and General Schedule pay rates, but at a rate not 
less than the rate of pay for a position classified above GS–15 
pursuant to section 5108 of title 5. 
(2) DUTIES.— 
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(A) IN GENERAL.—The sole responsibility of the Associate Ad-
ministrator for Small Business Development Centers shall be to 
administer the small business development center program. 
(B) DUTIES INCLUDED.—Duties of the position shall include— 
(i) recommending the annual budget for the small business 
development center program; 
(ii) reviewing the annual budgets submitted by each appli-
cant under the small business development center program; 
(iii) establishing appropriate funding levels for applicants 
under the small business development center program; 
(iv) selecting applicants to participate in the small business 
development center program; 
(v) implementing chapter 271; 
(vi) maintaining a clearinghouse to provide for the dissemi-
nation and exchange of information between small business 
development centers; and 
(vii) conducting audits of recipients of grants under chap-
ter 241. 
(3) CONSULTATION.— 
(A) IN GENERAL.—In carrying out the duties described in this 
subsection, the Associate Administrator for Small Business Devel-
opment Centers shall confer with and seek the advice of the Na-
tional Small Business Development Center Advisory Board and 
Administration officials in areas served by the small business de-
velopment centers. 
(B) RESPONSIBILITY.—Notwithstanding subparagraph (A), the 
Associate Administrator shall be responsible for the management 
and administration of the program and shall not be subject to the 
approval or concurrence of Administration officials described in 
subparagraph (A). 
§ 10305. Personnel 
(a) IN GENERAL.—The Administrator may, subject to the civil service 
and classification laws— 
(1) select, employ, appoint, and fix the compensation of such officers, 
employees, attorneys, and agents as are necessary to carry out this 
title; 
(2) define their authority and duties; and 
(3) pay the costs of qualification of certain of them as notaries pub-
lic. 
(b) INDIVIDUALS EMPLOYED TO RENDER TEMPORARY SERVICES
IN 
CONNECTION WITH A DISASTER.— 
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(1) IN GENERAL.—The Administrator may pay the transportation 
expenses and per diem in lieu of subsistence expenses, in accordance 
with subchapter I of chapter 57 of title 5, for travel of any individual 
employed by the Administration to render temporary services not in ex-
cess of 6 months in connection with a disaster from place of appoint-
ment to, and while at, the disaster area and any other temporary posts 
of duty and return on completion of the assignment. 
(2) EXTENSION OF TERM.—The Administrator may extend the six- 
month limitation under paragraph (1) for an additional 6 months if the 
Administrator determines that the extension is necessary to continue 
efficient disaster loan making activities. 
(c) EXPERTS AND CONSULTANTS.— 
(1) IN GENERAL.—To such extent as the Administrator finds nec-
essary to carry out this title, the Administrator may procure the tem-
porary (not in excess of one year) or intermittent services of experts 
or consultants (including stenographic reporting services) by contract 
or appointment. 
(2) INAPPLICABILITY OF OTHER LAW.—Service procured under para-
graph (1)— 
(A) shall be without regard to the civil service and classification 
laws; and 
(B) except in the case of stenographic reporting services by an 
organization, shall be without regard to section 3709 of the Re-
vised Statutes (41 U.S.C. 5). 
(3) COMPENSATION.—An individual employed under paragraph 
(1)— 
(A) may be compensated at a rate not in excess of the daily 
equivalent of the maximum rate payable under section 5376 of 
title 5, including travel time; and 
(B) while away from the individual’s home or regular place of 
business, may be allowed travel expenses (including per diem in 
lieu of subsistence) as authorized by section 5703 of title 5. 
§ 10306. Small Business Investment Division 
(a) ESTABLISHMENT.—There is established in the Administration a divi-
sion to be known as the Small Business Investment Division. 
(b) ASSOCIATE ADMINISTRATOR.—The Small Business Investment Divi-
sion shall be headed by an Associate Administrator appointed by the Admin-
istrator. 
(c) COMPENSATION.—The Associate Administrator shall receive com-
pensation at the rate provided by law for other Associate Administrators of 
the Administration. 
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§ 10307. Office of Advocacy 
(a) DEFINITIONS.—In this section: 
(1) CHIEF COUNSEL.—The term ‘‘Chief Counsel’’ means the Chief 
Counsel for Advocacy appointed under subsection (c). 
(2) OFFICE.—The term ‘‘Office’’ means the Office of Advocacy es-
tablished by subsection (b). 
(b) ESTABLISHMENT.—There is established within the Administration an 
Office of Advocacy. 
(c) CHIEF COUNSEL FOR ADVOCACY.—The management of the Office 
shall be vested in a Chief Counsel for Advocacy, who shall be appointed 
from civilian life by the President, by and with the advice and consent of 
the Senate. 
(d) PRIMARY FUNCTIONS.—The primary functions of the Chief Counsel 
shall be to— 
(1) examine the role of small business in the American economy and 
the contribution that small business can make in improving competi-
tion, encouraging economic and social mobility for all citizens, restrain-
ing inflation, spurring production, expanding employment opportuni-
ties, increasing productivity, promoting exports, stimulating innovation 
and entrepreneurship, and providing an avenue through which new and 
untested products and services can be brought to the marketplace; 
(2) assess the effectiveness of Federal subsidy and assistance pro-
grams for small business and the desirability of reducing the emphasis 
on such programs and increasing the emphasis on general assistance 
programs designed to benefit all small business concerns; 
(3)(A) measure the direct costs and other effects of government reg-
ulation on small business concerns; and 
(B) make legislative and nonlegislative proposals for eliminating ex-
cessive or unnecessary regulation of small business concerns; 
(4) determine the impact of the tax structure on small business con-
cerns and make legislative and other proposals for altering the tax 
structure to enable all small business concerns to realize their potential 
for contributing to the improvement of the Nation’s economic well- 
being; 
(5) study the ability of financial markets and institutions to meet 
small business credit needs and determine the impact of government 
demands for credit on small business concerns; 
(6) determine financial resource availability and recommend methods 
for delivery of financial assistance to minority enterprises, including 
methods for— 
(A) securing equity capital; 
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(B) generating markets for goods and services; 
(C) providing effective business education, more effective man-
agement and technical assistance, and training; and 
(D) providing assistance in complying with Federal, State, and 
local law; 
(7) evaluate the efforts of Federal agencies, business, and industry 
to assist minority business concerns; 
(8) make such recommendations as may be appropriate to assist the 
development and strengthening of minority and other small business 
concerns; 
(9)(A) recommend specific measures for creating an environment in 
which all businesses will have the opportunity to compete effectively 
and expand to their full potential; and 
(B) ascertain the common reasons, if any, for small business suc-
cesses and failures; 
(10)(A) determine the desirability of developing a set of rational, ob-
jective criteria to be used to define small business; and 
(B) develop such criteria, if appropriate; and 
(11)(A) evaluate the efforts of each Federal agency, and of private 
industry, to assist small business concerns owned and controlled by vet-
erans and small business concerns owned and controlled by service-dis-
abled veterans; 
(B) provide statistical information on the use of such programs by 
small business concerns owned and controlled by veterans and small 
business concerns owned and controlled by service-disabled veterans; 
and 
(C) make appropriate recommendations to the Administrator and to 
Congress to promote the establishment and growth of small business 
concerns owned and controlled by veterans and small business concerns 
owned and controlled by service-disabled veterans. 
(e) DUTIES TO BE PERFORMED ON A CONTINUING BASIS.— 
(1) IN GENERAL.—The Chief Counsel shall perform the duties de-
scribed in this subsection on a continuing basis. 
(2) COMPLAINTS, CRITICISMS, AND SUGGESTIONS.—The Chief Coun-
sel shall serve as a focal point for the receipt of complaints, criticisms, 
and suggestions concerning the policies and activities of the Adminis-
tration and any other Federal agency that affects small business con-
cerns. 
(3) COUNSELING.—The Chief Counsel shall counsel small business 
concerns on how to resolve questions and problems concerning the rela-
tionship of the small business to the Federal Government. 
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(4) PROPOSALS FOR CHANGE.—The Chief Counsel shall— 
(A) develop proposals for changes in the policies and activities 
of any Federal agency that will better fulfill the purposes of sub-
title II; and 
(B) communicate the proposals to the appropriate Federal agen-
cies. 
(5) REPRESENTATION OF VIEWS AND INTERESTS.—The Chief Coun-
sel shall represent the views and interests of small business concerns 
before other Federal agencies the policies and activities of which may 
affect small business. 
(6) DISSEMINATION OF INFORMATION.—The Chief Counsel shall en-
list the cooperation and assistance of public and private agencies, busi-
nesses, and other organizations in disseminating— 
(A) information about the programs and services provided by 
the Federal Government that are of benefit to small business con-
cerns; and 
(B) information on how small business concerns can participate 
in or make use of those programs and services. 
(f) RURAL TOURISM TRAINING PROGRAM.—In conjunction with the Of-
fice of Rural Affairs and appropriate personnel designated by each district 
office of the Administration, the Chief Counsel shall conduct training ses-
sions on the types of Federal assistance available for the development of 
rural small business concerns engaged in tourism and tourism-related activi-
ties. 
(g) POWERS.—In carrying out this section, the Chief Counsel may— 
(1) employ and fix the compensation of such additional staff per-
sonnel as the Chief Counsel considers necessary, without regard to the 
provisions of title 5, governing appointments in the competitive service, 
and without regard to chapter 51 or subchapter III of chapter 53 of 
that title relating to classification and General Schedule pay rates but 
at rates not in excess of the lowest rate for GS–15 of the General 
Schedule, except that not more than 14 staff personnel at any one time 
may be employed and compensated at a rate not in excess of GS–15, 
step 10, of the General Schedule; 
(2) procure temporary and intermittent services to the same extent 
as is authorized by section 3109 of title 5; 
(3) consult— 
(A) with experts and authorities in the fields of small business 
investment, venture capital, and investment and commercial bank-
ing and with other comparable lending institutions involved in the 
financing of business; 
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(B) with individuals with regulatory, legal, economic, or finan-
cial expertise, including members of the academic community; and 
(C) with individuals who generally represent the public interest; 
(4)(A) use the services of the National Advisory Council established 
under section 10315 of this title; and 
(B) in accordance with that section, appoint such other advisory 
boards or committees as the Chief Counsel considers reasonably appro-
priate and necessary to carry out this section; and 
(5) hold hearings and sit and act at such times and places as the 
Chief Counsel considers advisable. 
(h) ASSISTANCE OF FEDERAL AGENCIES.—Each Federal agency shall 
furnish the Chief Counsel such reports and other information as the Chief 
Counsel considers necessary to carry out this section. 
(i) REPORTS.—The Chief Counsel may from time to time prepare and 
publish such reports as the Chief Counsel considers appropriate. 
§ 10308. Division of Program Certification and Eligibility 
(a) DEFINITIONS.—In this section: 
(1) ASSOCIATE
ADMINISTRATOR.—The term ‘‘Associate Adminis-
trator’’ means the Associate Administrator for Minority Small Business 
and Capital Ownership Development. 
(2) DIRECTOR.—The term ‘‘Director’’ means the Director of the Di-
vision. 
(3) DIVISION.—The term ‘‘Division’’ means the Division of Program 
Certification and Eligibility established by subsection (b). 
(b) ESTABLISHMENT.—There is established in the Office of Minority 
Small Business and Capital Ownership Development a Division of Program 
Certification and Eligibility. 
(c) DIRECTOR.—The Division shall be headed by a Director, who shall 
report directly to the Associate Administrator. 
(d) FIELD OFFICES.—The Director shall establish field offices within 
such regional offices of the Administration as are necessary to perform effi-
ciently the functions and responsibilities of the Director. 
(e) DUTIES.—The duties of the Director are— 
(1) to receive, review, and evaluate applications for certification 
under the business development program; 
(2) to advise a business development program applicant within 15 
days after receipt of an application whether the application is complete 
and suitable for evaluation and, if not, what matters must be rectified; 
(3) to make recommendations on such applications to the Associate 
Administrator; 
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(4) to review and evaluate financial statements and other submis-
sions from small business concerns participating in the business devel-
opment program to ascertain continued eligibility to receive sub-
contracts under the business development program; 
(5) to make a request for the initiation of termination or graduation 
proceedings, as appropriate, to the Associate Administrator; 
(6) to make recommendations to the Associate Administrator con-
cerning protests from applicants that are denied admission to the busi-
ness development program; 
(7) to decide protests regarding the status of a small business con-
cern as a small business concern owned and controlled by socially and 
economically disadvantaged individuals for purposes of any program or 
activity conducted under chapter 243 or any other provision of Federal 
law that refers to that chapter for a definition of eligibility for any pro-
gram; and 
(8) to implement such policy directives as are issued by the Associate 
Administrator under section 23326 of this title regarding, among other 
things, the geographic distribution of small business concerns to be ad-
mitted to the business development program and the industrial makeup 
of those small business concerns. 
(f) DECISIONS ON PROTESTS.— 
(1) IN GENERAL.—A decision under subsection (e)(7) shall— 
(A) be made available to the protestor, the protested party, the 
contracting officer (if not the protestor), and all other parties to 
the proceeding, and published in full text; and 
(B) include findings of fact and conclusions of law, with specific 
reasons supporting the findings or conclusions, on each material 
issue of fact and law of decisional significance regarding the dis-
position of the protest. 
(2) PRECEDENTIAL VALUE OF PRIOR DECISIONS.—A decision under 
subsection (e)(7) that was issued before September 4, 1992, shall not 
have value as precedent in deciding any subsequent protest until the 
decision is published in full text. 
§ 10309. Office of International Trade 
(a) DEFINITION OF OFFICE.—In this section, the term ‘‘Office’’ means 
the Office of International Trade. 
(b) ESTABLISHMENT OF OFFICE.—There is established within the Ad-
ministration an Office of International Trade, which shall implement the 
programs under this section. 
(c) DISTRIBUTION NETWORK; MARKETING OF PROGRAMS AND DISSEMI-
NATION OF INFORMATION; BILINGUAL JOB APPLICANTS.— 
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(1) IN GENERAL.—The Office, working in close cooperation with the 
Department of Commerce and other Federal agencies, small business 
development centers engaged in export promotion efforts, regional and 
local Administration offices, the small business community, and State 
and local export promotion programs, shall— 
(A) assist in developing a distribution network for existing trade 
promotion, trade finance, trade adjustment, trade remedy assist-
ance and trade data collection programs through use of the Ad-
ministration’s regional and local offices and the small business de-
velopment center network; 
(B) assist in the aggressive marketing of the programs de-
scribed in subparagraph (A) and the dissemination of marketing 
information, including computerized marketing data, to the small 
business community; and 
(C) give preference in hiring or approving the transfer of any 
employee into the Office or to a position described in subsection 
(d)(2)(H) to otherwise qualified applicants who are fluent in a lan-
guage in addition to English. 
(2) BILINGUAL EMPLOYEES.—Bilingual employees hired or trans-
ferred under paragraph (1)(C)— 
(A) shall accompany foreign trade missions if designated by the 
director of the Office; and 
(B) shall be available as needed to translate documents, inter-
pret conversations, and facilitate multilingual transactions includ-
ing providing referral lists for translation services if required. 
(d) PROMOTION OF SALES OPPORTUNITIES FOR GOODS AND SERVICES 
ABROAD.— 
(1) IN GENERAL.—The Office shall promote sales opportunities for 
small business goods and services abroad. 
(2) ACTIVITIES.—To accomplish the objective stated in paragraph 
(1), the Office shall— 
(A) in cooperation with the Department of Commerce, other 
Federal agencies, regional and local Administration offices, the 
small business development center network, and State programs, 
develop a mechanism for— 
(i) identifying subsectors of the small business community 
with strong export potential; 
(ii) identifying areas of demand in foreign markets; 
(iii) prescreening foreign buyers for commercial and credit 
purposes; and 
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(iv) assisting in increasing international marketing by dis-
seminating relevant information regarding market leads, link-
ing potential sellers and buyers, and catalyzing the formation 
of joint ventures, where appropriate; 
(B) in cooperation with the Department of Commerce, actively 
assist small business concerns in the formation and utilization of 
export trading companies, export management companies and re-
search and development pools authorized under division H of sub-
title II; 
(C) work in conjunction with other Federal agencies, regional 
and local offices of the Administration, the small business develop-
ment center network, and the private sector to identify and pub-
licize existing translation services, including those available 
through colleges and universities participating in the small busi-
ness development center program; 
(D) work closely with the Department of Commerce and other 
relevant Federal agencies to— 
(i)(I) collect, analyze and periodically update relevant data 
regarding the small business share of United States exports 
and the nature of State exports (including the production of 
Gross State Product figures); and 
(II) disseminate those data to the public and to Congress; 
(ii) make recommendations to the Secretary of Commerce 
and to Congress regarding revision of the North American In-
dustry Classification System codes to encompass industries 
currently overlooked and to create North American Industry 
Classification System codes for export trading companies and 
export management companies; 
(iii) improve the utility and accessibility of existing export 
promotion programs for small business concerns; and 
(iv) increase the accessibility of the Export Trading Com-
pany contact facilitation service of the Department of Com-
merce; 
(E) make available to the small business community information 
regarding conferences on exporting and international trade spon-
sored by the public and private sectors; 
(F) provide small business concerns with access to current and 
complete export information by— 
(i) making available, at the Administration’s regional of-
fices through cooperation with the Department of Commerce, 
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export information, including the worldwide information and 
trade system and world trade data reports; 
(ii) maintaining a current list of financial institutions that 
finance export operations; 
(iii) maintaining a current directory of all Federal, re-
gional, State and private sector programs that provide export 
information and assistance to small business concerns; and 
(iv) preparing and publishing such reports as the Office de-
termines to be necessary concerning market conditions, 
sources of financing, export promotion programs, and other 
information pertaining to the needs of exporting small busi-
ness concerns so as to ensure that the maximum information 
is made available to small business concerns in a readily usa-
ble form; 
(G) in cooperation with the Department of Commerce, encour-
age greater participation by small business concerns in trade fairs, 
shows, missions, and other domestic and overseas export develop-
ment activities of the Department of Commerce; and 
(H) facilitate decentralized delivery of export information and 
assistance to small business concerns by— 
(i) assigning full-time export development specialists to 
each Administration regional office; and 
(ii) assigning primary responsibility for export development 
to one person in each district office. 
(3) DUTIES OF EXPORT DEVELOPMENT SPECIALISTS AND DISTRICT 
PERSONNEL ASSIGNED PRIMARY RESPONSIBILITY FOR EXPORT DEVEL-
OPMENT.—An export development specialist assigned to an Administra-
tion regional office under paragraph (2)(H)(i) and a person in a dis-
trict assigned primary responsibility for export development shall— 
(A) assist small business concerns in obtaining export informa-
tion and assistance from other Federal agencies; 
(B) maintain a current directory of all programs that provide 
export information and assistance to small business concerns in 
the region; 
(C) encourage financial institutions to develop and expand pro-
grams for export financing; 
(D) provide advice to Administration personnel involved in 
granting loans, loan guarantees, and extensions and revolving lines 
of credit and providing other forms of assistance to small business 
concerns engaged in exporting; and 
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(E) within 180 days after being appointed as an export develop-
ment specialist, participate in a training program designed by the 
Administrator, in conjunction with the Department of Commerce 
and other Federal agencies, to study export programs and to ex-
amine the needs of small business concerns for export information 
and assistance. 
(e) ACCESS TO EXPORT AND PRE-EXPORT FINANCING PROGRAMS.— 
(1) IN GENERAL.—The Office shall work in cooperation with the Ex-
port-Import Bank of the United States, the Department of Commerce, 
other Federal agencies, and the States to develop a program through 
which export specialists in the regional offices of the Administration, 
regional and local loan officers, and small business development center 
personnel can facilitate the access of small business concerns to rel-
evant export financing programs of the Export-Import Bank of the 
United States and to export and pre-export financing programs avail-
able from the Administration and the private sector. 
(2) ACTIVITIES.—To accomplish the goal stated in paragraph (1), 
the Office shall work in cooperation with the Export-Import Bank of 
the United States and the small business community, including small 
business trade associations, to— 
(A) aggressively market existing Administration export financ-
ing and pre-export financing programs; 
(B) identify financing available under various programs of the 
Export-Import Bank of the United States, and aggressively mar-
ket those programs to small business concerns; 
(C) assist in the development of financial intermediaries and fa-
cilitate the access of those intermediaries to existing financing pro-
grams; 
(D) promote greater participation by private financial institu-
tions, particularly those institutions already participating in loan 
programs under subtitle II, in export finance; and 
(E) provide for the participation of appropriate Administration 
personnel in training programs conducted by the Export-Import 
Bank of the United States. 
(f) TRADE PROCEEDINGS.—The Office shall— 
(1) work in cooperation with other Federal agencies and the private 
sector to counsel small business concerns with respect to initiating and 
participating in any proceedings relating to the administration of the 
United States trade laws; and 
(2) work with the Department of Commerce, the Office of the United 
States Trade Representative, and the International Trade Commission 
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to increase access to trade remedy proceedings for small business con-
cerns. 
§ 10310. Office of Rural Affairs 
(a) DEFINITION OF OFFICE.—In this section, the term ‘‘Office’’ means 
the Office of Rural Affairs. 
(b) ESTABLISHMENT OF OFFICE.—There is established in the Adminis-
tration an Office of Rural Affairs. 
(c) DIRECTOR.—The Office shall be headed by a director appointed by 
the Administrator. 
(d) FUNCTIONS.—The Office shall— 
(1) strive to achieve an equitable distribution of the financial assist-
ance available from the Administration for small business concerns lo-
cated in rural areas; 
(2) to the extent practicable, compile annual statistics on rural areas, 
including statistics concerning the population, poverty, job creation and 
retention, unemployment, business failures, and business startups; 
(3) provide information to industries, organizations, and State and 
local governments concerning the assistance available to rural small 
business concerns through the Administration and through other Fed-
eral agencies; 
(4) provide information to industries, organizations, educational in-
stitutions, and State and local governments concerning programs ad-
ministered by private organizations, educational institutions, and Fed-
eral, State, and local governments that improve the economic opportu-
nities of rural citizens; and 
(5) work with the United States National Tourism Organization to 
assist small business concerns in rural areas with tourism promotion 
and development. 
§ 10311. Office of Women’s Business Ownership 
(a) DEFINITIONS.—In this section: 
(1) ASSISTANT
ADMINISTRATOR.—The term ‘‘Assistant Adminis-
trator’’ means the Assistant Administrator appointed under subsection 
(c). 
(2) OFFICE.—The term ‘‘Office’’ means the Office of Women’s Busi-
ness ownership established by subsection (b). 
(b) ESTABLISHMENT OF OFFICE.—There is established within the Ad-
ministration an Office of Women’s Business Ownership. 
(c) ASSISTANT ADMINISTRATOR.— 
(1) IN GENERAL.—The Office shall be administered by an Assistant 
Administrator, who shall be appointed by the Administrator. 
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(2) QUALIFICATION.—The position of Assistant Administrator shall 
be a Senior Executive Service position under section 3132(a)(2) of title 
5. The Assistant Administrator shall serve as a noncareer appointee (as 
defined in section 3132(a)(7) of that title). 
(d) DUTIES.—The Assistant Administrator shall— 
(1) administer the Administration’s programs for the development of 
women’s business enterprises (as defined in section 40301 of this title); 
(2) administer the programs and services of the Office to assist 
women entrepreneurs in the areas of— 
(A) starting and operating a small business concern; 
(B) development of management and technical skills; 
(C) seeking Federal procurement opportunities; and 
(D) increasing the opportunity for access to capital; 
(3) administer and manage the women’s business center program; 
(4) recommend the annual administrative and program budgets for 
the Office (including the budget for the women’s business center pro-
gram); 
(5) establish appropriate funding levels for the Office; 
(6) review the annual budgets submitted by each applicant for the 
women’s business center program; 
(7) select applicants to participate in the women’s business center 
program; 
(8) implement chapter 273; 
(9) maintain a clearinghouse to provide for the dissemination and ex-
change of information between women’s business centers; 
(10) serve as the vice chairperson of the Interagency Committee on 
Women’s Business Enterprise; 
(11) serve as liaison for the National Women’s Business Council; 
and 
(12) advise the Administrator on appointments to the Women’s 
Business Council. 
(e) CONSULTATION.—In carrying out the duties described in paragraphs 
(2) to (12) of subsection (d), the Assistant Administrator shall confer with 
and seek the advice of the Administration officials in areas served by the 
women’s business centers. 
§ 10312. Small Business and Agriculture Regulatory En-
forcement Ombudsman; regional small business 
regulatory fairness boards 
(a) DEFINITIONS.—In this section: 
(1) BOARD.—The term ‘‘Board’’ means a regional small business 
regulatory fairness board established under subsection (e). 
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(2) OMBUDSMAN.—The term ‘‘Ombudsman’’ means the Small Busi-
ness and Agriculture Regulatory Enforcement Ombudsman designated 
under subsection (b). 
(b) SMALL BUSINESS AND AGRICULTURE REGULATORY ENFORCEMENT 
OMBUDSMAN.—The Administrator shall designate a Small Business and Ag-
riculture Regulatory Enforcement Ombudsman, who shall report directly to 
the Administrator, using personnel of the Administration to the extent prac-
ticable. 
(c) DUTIES.—The Ombudsman shall— 
(1) work with each Federal agency with regulatory authority over 
small business concerns to ensure that small business concerns that re-
ceive or are subject to an audit, on-site inspection, compliance assist-
ance effort, or other enforcement-related communication or contact by 
Federal agency personnel are provided with a means by which to com-
ment on the enforcement activity conducted by those personnel; 
(2)(A) establish means by which to— 
(i) receive comments from a small business concern regarding 
actions by Federal agency employees conducting compliance or en-
forcement activities with respect to the small business concern; 
and 
(ii) refer comments to the Inspector General of the Federal 
agency in the appropriate circumstances; and 
(B) otherwise seek to maintain the identity of the person and small 
business concern making such comments on a confidential basis to the 
same extent as employee identities are protected under section 7 of the 
Inspector General Act of 1978 (5 U.S.C. App.); 
(3) based on substantiated comments received from small business 
concerns and the Boards, after having provided each Federal agency 
described in paragraph (1) an opportunity to comment on drafts of the 
report, annually submit to Congress and those Federal agencies a re-
port that— 
(A) evaluates the enforcement activities of Federal agency per-
sonnel; and 
(B) includes— 
(i) a rating of the responsiveness to small business con-
cerns of the various regional and program offices of each such 
Federal agency; and 
(ii) a section in which any such Federal agency may make 
such comments made by the Federal agency to drafts of the 
report as are not addressed by the Ombudsman in the final 
draft; and 
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(4) coordinate, and annually submit to the Administrator and to the 
heads of Federal agencies described in paragraph (1) a report on, the 
activities, findings, and recommendations of the Boards. 
(d) FEDERAL AGENCIES OTHER THAN THE ADMINISTRATION.— 
(1) ACTIONS TO ENSURE COMPLIANCE.—Federal agencies other than 
the Administration shall assist the Ombudsman and take actions as 
necessary to ensure compliance with this section. 
(2) EFFECT OF SECTION.—Nothing in this section replaces or dimin-
ishes the activities of any ombudsman or similar office in any Federal 
agency. 
(e) REGIONAL SMALL BUSINESS REGULATORY FAIRNESS BOARDS.— 
(1) ESTABLISHMENT.—The Administrator shall establish a small 
business regulatory fairness board in each regional office of the Admin-
istration. 
(2) MEMBERSHIP.— 
(A) IN GENERAL.—A Board shall consist of 5 members who are 
owners, operators, or officers of small business concerns, ap-
pointed by the Administrator, after receiving the recommendations 
of the chair and ranking minority member of the Committee on 
Small Business and Entrepreneurship of the Senate and the Com-
mittee on Small Business of the House of Representatives. 
(B) POLITICAL AFFILIATION.—Not more than 3 of the members 
of a Board shall be of the same political party. 
(C) GOVERNMENT OFFICERS OR EMPLOYEES.—No member of a 
Board shall be an officer or employee of the Federal Government 
in the executive branch or in Congress. 
(D) TERM.—A member of a Board shall serve at the pleasure 
of the Administrator for a term of 3 years or less. 
(E) COMPENSATION.—A member of a Board shall serve without 
compensation, except that a member shall be allowed travel ex-
penses, including per diem in lieu of subsistence, at rates author-
ized for employees of agencies under subchapter I of chapter 57 
of title 5 while away from the home or regular place of business 
of the member in the performance of services for the Board. 
(3) CHAIR.—The Administrator shall select a chair from among the 
members of a Board, who shall serve at the pleasure of the Adminis-
trator for not more than one year as chair. 
(4) QUORUM.—A majority of the members of a Board shall con-
stitute a quorum for the conduct of business, but a lesser number may 
hold hearings. 
(5) DUTIES.—A Board shall— 
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(A) meet at least annually to advise the Ombudsman on matters 
of concern to small business concerns relating to the enforcement 
activities of Federal agencies; 
(B) report to the Ombudsman on substantiated instances of ex-
cessive enforcement actions of Federal agencies against small busi-
ness concerns, including any findings or recommendations of the 
Board as to Federal agency enforcement policy or practice; and 
(C) prior to publication, provide comment on the annual report 
of the Ombudsman prepared under subsection (c). 
(6) POWERS.— 
(A) HEARINGS; COLLECTION OF INFORMATION.—A Board may 
hold hearings and collect information as appropriate for carrying 
out this section. 
(B) MAIL.—A Board may use the United States mails in the 
same manner and under the same conditions as other Federal 
agencies. 
(C) ACCEPTANCE OF DONATIONS.—A Board may accept dona-
tions of services necessary to conduct its business, so long as the 
donations and their sources are disclosed by the Board. 
§ 10313. Office of Veterans Business Development 
(a) DEFINITION OF ASSOCIATE ADMINISTRATOR.—In this section, the 
term ‘‘Associate Administrator’’ means the Associate Administrator for Vet-
erans Business Development under section 10304(b) of this title. 
(b) OFFICE OF VETERANS BUSINESS DEVELOPMENT.—There is estab-
lished in the Administration an Office of Veterans Business Development, 
which shall be administered by the Associate Administrator. 
(c) DUTIES.—The Associate Administrator— 
(1) shall be responsible for the formulation, execution, and promotion 
of policies and programs of the Administration that provide assistance 
to small business concerns owned and controlled by veterans and small 
business concerns owned and controlled by service-disabled veterans; 
and 
(2) shall act as an ombudsman for full consideration of veterans in 
all programs of the Administration. 
§ 10314. Task force on purchases from the blind and se-
verely disabled 
(a) ESTABLISHMENT.—There is established within the Administration a 
task force on purchases from the blind and severely disabled. 
(b) MEMBERSHIP.—The task force shall consist of one representative of 
the small business community appointed by the Administrator and one indi-
vidual knowledgeable in the affairs of or experienced in the work of shel-
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tered workshops appointed by the Executive Director of the Committee for 
Purchase from the Blind and Other Severely Disabled established under the 
first section of the Act of June 25, 1938 (41 U.S.C. 46). 
(c) DUTIES.—The task force shall meet at least once every 6 months for 
the purpose of— 
(1) reviewing the award of contracts under section 25103 of this 
title; and 
(2) recommending to the Administrator such administrative or statu-
tory changes as the task force considers appropriate. 
§ 10315. Advisory committees 
(a) IN GENERAL.—The Administrator shall— 
(1) establish such advisory committees as are necessary to achieve 
the purposes of this subtitle and subtitles II and III; and 
(2) call meetings of the advisory committees from time to time. 
(b) EXPENSES.—The Administrator shall— 
(1) pay the transportation expenses and a per diem allowance in ac-
cordance with section 5703 of title 5 to a member of an advisory com-
mittee for travel and subsistence expenses incurred at the request of 
the Administrator in connection with travel to points more than 50 
miles distant from the home of the member in attending a meeting of 
the advisory committee; and 
(2) rent temporarily, within the District of Columbia or elsewhere, 
such hotel or other accommodations as are needed to facilitate the con-
duct of meetings of an advisory committee. 
§ 10316. Bureau of PCLP Oversight 
(a) ESTABLISHMENT.—There is established within the Administration a 
bureau to be known as the Bureau of PCLP Oversight. 
(b) PURPOSE.—The Bureau of PCLP Oversight shall carry out such 
functions of the Administrator under section 33108(c) of this title as the 
Administrator may designate. 
Subchapter II—Functions 
§ 10331. General powers 
(a) SEAL.—The Administrator shall have power to adopt, alter, and use 
a seal, which shall be judicially noticed. 
(b) SERVICES AND FACILITIES.—At the request of the Administrator, the 
head of any Federal agency or of the Government Accountability Office or 
Postal Service may provide to the Administrator (on a reimbursable or non-
reimbursable basis) information, services, facilities (including any field serv-
ice of the Federal agency), officers, and employees of the Federal agency 
to assist in carrying out this title or any other law under which the Admin-
istrator provides assistance to small business concerns. 
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(c) COURT PROCEEDINGS.—The Administrator may sue and be sued in 
any court of record of a State having general jurisdiction, or in any United 
States district court, and jurisdiction is conferred on a United States dis-
trict court to determine such controversies without regard to the amount in 
controversy; but no attachment, injunction, garnishment, or other similar 
process, mesne or final, shall be issued against the Administrator or prop-
erty of the Administration. 
(d) LIMITATION ON ADVERTISING REQUIREMENT.—Section 3709 of the 
Revised Statutes (41 U.S.C. 5) shall not apply to a contract of hazard in-
surance or a purchase or contract for a service or supply on account of 
property obtained by the Administrator as a result of a loan made under 
this subtitle or subtitle II or III if the premium for the insurance or the 
amount of the purchase or contract does not exceed $1,000. 
(e) REGULATIONS.—The Administrator may prescribe such regulations as 
the Administrator considers necessary to carry out the authority vested in 
the Administrator under this subtitle and subtitles II and III. 
(f) ACCEPTANCE
OF SERVICES
AND FACILITIES.—The Administrator 
may— 
(1) accept the services and facilities of Federal, State, and local 
agencies and groups, both public and private; and 
(2) use such gratuitous services and facilities as may from time to 
time be necessary to further the objectives of the disaster assistance 
programs. 
(g) INVESTIGATIONS.— 
(1) IN GENERAL.—The Administrator may make such investigations 
as the Administrator considers necessary to determine whether a recipi-
ent of or participant in assistance under this subtitle or subtitle II or 
III or any other person has engaged or is about to engage in any act 
or practice that constitutes or will constitute a violation of any provi-
sion of this subtitle or subtitle II or III (including a regulation or order 
issued under this subtitle or subtitle II or III). 
(2) STATEMENTS.—The Administrator shall permit any person to 
file with the Administrator a statement in writing, under oath or other-
wise as the Administrator shall determine, as to all the facts and cir-
cumstances concerning a matter to be investigated. 
(3) POWERS.—For the purpose of any investigation, the Administra-
tion may administer oaths and affirmations, subpoena witnesses, com-
pel the attendance of witnesses, take evidence, and require the produc-
tion of any records that are relevant to the inquiry. Attendance of wit-
nesses and the production of any such records may be required from 
any place in the United States. 
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(4) CONTUMACY OR REFUSAL TO OBEY.— 
(A) IN GENERAL.—In case of contumacy by, or refusal to obey 
a subpoena issued to, any person (including a recipient or partici-
pant), the Administrator may invoke the aid of any court of the 
United States within the jurisdiction of which an investigation or 
proceeding is carried on, or in which the person resides or carries 
on business, in requiring the attendance and testimony of wit-
nesses and the production of records, and the court may issue an 
order requiring the person to appear before the Administrator, to 
produce records, if so ordered, or to give testimony touching the 
matter under investigation. 
(B) FAILURE TO OBEY.—A failure to obey an order under sub-
paragraph (A) may be punished by the court as a contempt of 
court, for which purpose process may be served in any judicial dis-
trict of which the person is an inhabitant or in which the person 
may be found. 
(h) EXAMINATION AND REVIEW FEES.— 
(1) IN GENERAL.—The Administrator may require a lender author-
ized to make loans under the general business loan program, the dis-
aster loan program, or the microloan program to pay examination and 
review fees. 
(2) USE.—Fees collected under paragraph (1) shall be deposited in 
the account for salaries and expenses of the Administrator and shall 
be available for the costs of examinations, reviews, and other lender 
oversight activities. 
(i) LOAN REQUIREMENTS RELATING TO ASSISTANCE PROVIDED TO LOAN 
APPLICANTS, NONEMPLOYMENT OF PERSONS ASSOCIATED WITH THE AD-
MINISTRATION, AND LOAN APPLICATIONS.—No loan shall be made or equip-
ment, facilities, or services furnished by the Administrator under this sub-
title or subtitle II or III to any business concern unless the owners, part-
ners, or officers of the business concern— 
(1) certify to the Administrator— 
(A) the names of any attorneys, agents, or other persons en-
gaged by or on behalf of the business concern for the purpose of 
expediting applications made to the Administrator for assistance 
of any sort; and 
(B) the amount of fees paid or to be paid to any such persons; 
(2) execute an agreement binding the business concern, for a period 
of 2 years after any assistance is rendered by the Administrator to the 
business concern, to refrain from employing, tendering any office or 
employment to, or retaining for professional services any individual 
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who, on the date on which any part of the assistance was rendered, 
or within one year prior to that date, served as an officer, attorney, 
agent, or employee of the Administrator occupying a position or engag-
ing in an activity that, as determined by the Administrator, involves 
the exercise of discretion with respect to the granting of assistance 
under this subtitle or subtitle II or III; and 
(3) furnish— 
(A) the names of lending institutions to which the business con-
cern has applied for a loan; and 
(B) the date, amount, terms, and proof of refusal of any loan. 
(j) AUTHORITY RELATING TO TRANSFER OF FUNCTIONS, POWERS, AND 
DUTIES.—The President may— 
(1) transfer to the Administrator any function, power, or duty of any 
Federal agency that relates primarily to small business problems; and 
(2) in connection with the transfer, provide for appropriate transfers 
of records, property, necessary personnel, and unexpended balances of 
appropriations and other funds available to the Federal agency from 
which the transfer is made. 
(k) FAIR CHARGES; RECOVERY OF DIRECT COSTS.—To the fullest extent 
that the Administrator considers practicable, the Administrator shall— 
(1) make a fair charge for the use of Government-owned property; 
and 
(2) make and let contracts on a basis that will result in a recovery 
of the direct costs incurred by the Administrator. 
(l) NONDUPLICATION OF WORK OR ACTIVITY.—The Administrator shall 
not duplicate the work or activity of any other Federal agency unless such 
work or activity is expressly provided for in this subtitle or subtitle II or 
III. 
(m) SAFE DEPOSIT BOX RENTALS.—Subsections (a) and (b) of section 
3324 of title 31 shall not apply to prepayments of rentals made by the Ad-
ministrator on safe deposit boxes used by the Administrator for the safe-
guarding of instruments held as security for loans or for the safeguarding 
of other documents. 
(n) NONDISCRIMINATION.—In carrying out the programs administered by 
the Administrator, the Administrator shall not discriminate on the basis of 
sex or marital status against any small business concern or other person 
applying for or receiving assistance from the Administration. 
(o) SPECIAL CONSIDERATION TO VETERANS.—In carrying out the pro-
grams administered by the Administrator, the Administrator shall give spe-
cial consideration to veterans and their survivors or dependents. 
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(p) PROHIBITION OF USE OF FUNDS FOR INDIVIDUALS NOT LAWFULLY 
WITHIN UNITED STATES.—None of the funds made available under this 
subtitle or subtitle II or III may be used to provide any direct benefit or 
assistance to any individual in the United States if the Administrator or the 
official to which the funds are made available receives notification that the 
individual is not lawfully within the United States. 
(q) OBSCENE PRODUCTS
AND SERVICES.—Notwithstanding any other 
provision of law, the Administrator shall not provide any financial or other 
assistance to any business concern or other person engaged in the produc-
tion or distribution of any product or service that has been determined by 
a court of competent jurisdiction to be obscene. 
(r) GIFTS.—In carrying out the functions of the Administrator under this 
subtitle and subtitles II and III and to carry out the activities authorized 
by chapter 403, the Administrator may— 
(1) accept, in the name of the Administrator, and employ or dispose 
of in furtherance of the purposes of this subtitle or subtitle II or III, 
any money or property, real, personal, or mixed, tangible, or intangible, 
received by gift, devise, bequest, or otherwise; and 
(2) accept gratuitous services and facilities. 
§ 10332. Financial management 
(a) ACCOUNTS.— 
(1) IN GENERAL.—All repayments of loans, debentures, payments of 
interest, and other receipts arising out of transactions entered into by 
the Administrator shall be deposited in appropriate accounts as deter-
mined by the Administrator. 
(2) BUDGETS.—Business-type budgets for each of the accounts re-
ferred to in paragraph (1) shall be— 
(A) submitted to the Committee on Appropriations and Com-
mittee on Small Business and Entrepreneurship of the Senate and 
the Committee on Appropriations and Committee on Small Busi-
ness of the House of Representatives; and 
(B) enacted in the manner prescribed by sections 9103 and 
9104 of title 31 for wholly owned Government corporations. 
(3) REPORTS.—As soon as possible after the beginning of each cal-
endar quarter, the Administrator shall submit to the Committee on Ap-
propriations and Committee on Small Business and Entrepreneurship 
of the Senate and the Committee on Appropriations and Committee on 
Small Business of the House of Representatives a report that describes 
the status of each of the accounts referred to in paragraph (1). 
(4) ISSUANCE OF NOTES.— 
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(A) IN GENERAL.—The Administrator may issue notes to the 
Secretary of the Treasury for the purpose of obtaining funds nec-
essary for discharging obligations under, and for authorized ex-
penditures out of, the accounts referred to in paragraph (1). 
(B) FORM.—Notes issued under subparagraph (A) shall be in 
such form and denominations, have such maturities, and be sub-
ject to such terms and conditions as the Administrator may pre-
scribe with the approval of the Secretary of the Treasury. 
(C) INTEREST.—Notes issued under subparagraph (A) shall 
bear interest at a rate fixed by the Secretary of the Treasury, tak-
ing into consideration the current average market yield of out-
standing marketable obligations of the United States having matu-
rities comparable to those of the notes issued under subparagraph 
(A). 
(D) PURCHASE BY THE SECRETARY OF THE TREASURY.—The 
Secretary of the Treasury shall purchase any notes of the Admin-
istration issued under subparagraph (A), and for that purpose the 
Secretary of the Treasury may use as a public debt transaction 
the proceeds from the sale of any securities issued under chapter 
31 of title 31, and the purposes for which such securities may be 
issued under that chapter are extended to include the purchase of 
notes issued under subparagraph (A). 
(E) TREATMENT AS PUBLIC DEBT TRANSACTIONS.—All redemp-
tions, purchases, and sales by the Secretary of the Treasury of 
notes issued under subparagraph (A) shall be treated as public 
debt transactions of the United States. 
(F) BORROWING AUTHORITY SUBJECT TO AVAILABILITY OF AP-
PROPRIATIONS.—All borrowing authority contained in this para-
graph shall be effective only to such extent or in such amounts 
as are provided in advance in appropriation Acts. 
(5) UNNEEDED AMOUNTS.—Amounts in an account referred to in 
paragraph (1) that are not needed for current operations may be paid 
into miscellaneous receipts of the Treasury. 
(6) INTEREST.— 
(A) ACTUAL
INTEREST
COLLECTED.—Following the close of 
each fiscal year, the Administrator shall pay into the miscellaneous 
receipts of the United States Treasury the actual interest that the 
Administration collects during that fiscal year on all financings 
made under subtitle II. 
(B) INTEREST RECEIVED ON FINANCING FUNCTIONS.— 
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(i) IN GENERAL.—Except on loan disbursements on which 
interest is paid under subparagraph (A), following the close 
of each fiscal year, the Administrator shall pay into miscella-
neous receipts of the Treasury interest received by the Ad-
ministration on financing functions performed under this sub-
title, subtitle II, and divisions B and C of subtitle III if the 
capital used to perform those functions originates from ap-
propriated funds. 
(ii) TREATMENT.—Payments under clause (i) shall be 
treated by the Department of the Treasury as interest in-
come, not as retirement of indebtedness. 
(7) CONTRIBUTIONS TO EMPLOYEES’ COMPENSATION FUNDS.— 
(A) IN GENERAL.—The Administrator shall contribute to the 
employees’ compensation fund, on the basis of annual billings as 
determined by the Secretary of Labor, for the benefit payments 
made from the fund on account of employees engaged in carrying 
out functions financed under the accounts described in paragraph 
(1). 
(B) STATEMENT OF COST.—The annual billings shall include a 
statement of the fair portion of the cost of the administration of 
the employees’ compensation fund, which shall be paid by the Ad-
ministrator into the Treasury as miscellaneous receipts. 
(b) FINANCIAL MANAGEMENT POWERS.— 
(1) DISPOSITION OF EVIDENCE OF DEBT, CONTRACT, CLAIM, PER-
SONAL PROPERTY, OR SECURITY.—Under regulations prescribed by the 
Administrator, the Administrator may— 
(A) assign or sell at public or private sale, or otherwise dispose 
of for cash or credit, in the discretion of the Administrator and 
on such terms and conditions and for such consideration as the 
Administrator determines to be reasonable, any evidence of debt, 
contract, claim, personal property, or security assigned to or held 
by the Administrator in connection with the payment of loans 
granted under subtitle II or III; and 
(B) collect or compromise all obligations assigned to or held by 
the Administrator and all legal or equitable rights accruing to the 
Administrator in connection with the payment of such loans until 
such time as such obligations may be referred to the Attorney 
General for suit or collection. 
(2) ADMINISTRATION MONEYS.— 
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(A) DEPOSIT IN TREASURY.—All moneys of the Administration 
not otherwise employed may be deposited in the Treasury subject 
to check by authority of the Administrator. 
(B) FEDERAL RESERVE BANKS.— 
(i) IN GENERAL.—The Federal Reserve banks shall act as 
depositaries, custodians, and fiscal agents for the Administra-
tion in the general performance of its powers under this sub-
title and subtitles II and III. 
(ii) REIMBURSEMENT.—A Federal Reserve bank, when des-
ignated by the Administrator as fiscal agent for the Adminis-
tration, shall be entitled to be reimbursed for all expenses in-
curred as fiscal agent. 
(C) BANKS INSURED BY FDIC.—A bank insured by the Federal 
Deposit Insurance Corporation, when designated by the Secretary 
of the Treasury, shall act as custodian and financial agent for the 
Administration. 
(3) REAL PROPERTY.— 
(A) CONVEYANCE.—The power to convey and to execute in the 
name of the Administrator a deed of conveyance, deed of release, 
assignment and satisfaction of mortgages, or any other written in-
strument relating to real property or any interest in real property 
acquired by the Administrator under this subtitle or subtitle II or 
III may be exercised— 
(i) by the Administrator; or 
(ii) by any officer or agent appointed by the Administrator, 
with or without the execution of an express delegation of 
power or power of attorney. 
(B) OTHER AUTHORITY.—The Administrator may deal with, 
complete, renovate, improve, modernize, insure, or rent, or sell for 
cash or credit, on such terms and conditions and for such consid-
eration as the Administrator determines to be reasonable, any real 
property conveyed to or otherwise acquired by the Administrator 
in connection with the payment of loans granted under subtitle II 
or III. 
(4) COLLECTIONS.— 
(A) IN GENERAL.—The Administrator may pursue to final col-
lection, by way of compromise or otherwise, all claims against 
third parties assigned to the Administrator in connection with 
loans made by the Administrator. 
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(B) DEFICIENCY JUDGMENTS.—The authority under subpara-
graph (A) includes authority to obtain a deficiency judgment or 
otherwise in the case of a mortgage assigned to the Administrator. 
(5) ACQUISITION OF PROPERTY.—The Administrator may acquire, in 
any lawful manner, any property (real, personal, or mixed, tangible or 
intangible), when the Administrator considers it necessary or appro-
priate to the conduct of the general business loan program and disaster 
assistance programs. 
(6) ASSET SALES.—In connection with the Administrator’s imple-
mentation of a program to sell to the private sector loans and other 
assets held by the Administrator, the Administrator shall provide to the 
Committee on Small Business and Entrepreneurship of the Senate and 
the Committee on Small Business of the House of Representatives a 
copy of the draft and final plans describing the sale and the anticipated 
benefits resulting from the sale. 
(c) SALE OF GUARANTEED PORTION OF LOAN BY LENDER OR SUBSE-
QUENT HOLDER.— 
(1) IN GENERAL.—The guaranteed portion of a loan made under 
subtitle II or III may be sold by the lender, and by any subsequent 
holder, consistent with regulations prescribed by the Administrator, 
subject to the limitations stated in paragraph (2). 
(2) LIMITATIONS.— 
(A) APPROVAL.—Before the Administrator approves a sale or 
resale under paragraph (1), if the lender certifies that the loan has 
been properly closed and that the lender has substantially com-
plied with the guarantee agreement and the regulations of the Ad-
ministrator, the Administrator shall review and approve only mate-
rials not previously approved. 
(B) FEES.—All fees due the Administrator on a guaranteed 
loan shall be paid in full prior to a sale or resale under paragraph 
(1). 
(C) DISBURSEMENT.—A loan (except a loan made under section 
20508 of this title) shall be fully disbursed to the borrower before 
a sale or resale under paragraph (1). 
(3) CONTINUING OBLIGATION.—After a loan is sold, the lender shall 
remain obligated under its guarantee agreement with the Administrator 
and shall continue to service the loan in a manner consistent with the 
terms and conditions of the guarantee agreement. 
(4) SECONDARY MARKET.— 
(A) PROCEDURES.—The Administrator shall develop such pro-
cedures as are necessary for— 
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(i) the facilitation, administration, and promotion of sec-
ondary market operations; and 
(ii) assessing the increase of small business access to cap-
ital at reasonable rates and terms as a result of secondary 
market operations. 
(B) UNIFORM REGULATIONS.—The sale of the unguaranteed 
portion of a loan made under the general business loan program 
shall not be permitted except in accordance with a regulation pre-
scribed by the Administrator that— 
(i) applies uniformly to both depository institutions and 
other lenders; and 
(ii) specifies the terms and conditions under which such 
sales can be permitted, including maintenance of appropriate 
reserve requirements and other safeguards to protect the 
safety and soundness of the program. 
(C) LONG-TERM VIABILITY.—The Administrator shall take such 
actions in the awarding of contracts as the Administrator con-
siders necessary to ensure the continued long-term viability of the 
secondary market in loans, debentures, and other securities guar-
anteed by the Administrator. 
(5) EFFECT OF SUBSECTIONS.—Nothing in this subsection or sub-
section (d) impedes or extinguishes— 
(A) the right of a borrower or a successor in interest to a bor-
rower to prepay (in whole or in part) a loan made under the gen-
eral business loan program, the guaranteed portion of which may 
be included in a trust or pool; or 
(B) the rights of any person under subsection (i). 
(d) TRUST CERTIFICATES.— 
(1) IN GENERAL.—The Administrator may issue trust certificates 
representing ownership of all or a fractional part of the guaranteed 
portion of one or more loans guaranteed by the Administrator under 
subtitle II or section 33103 of this title. 
(2) TRUST OR POOL.—A trust certificate shall be based on and 
backed by a trust or pool approved by the Administrator and composed 
solely of the entire guaranteed portion of a loan. 
(3) GUARANTEE.— 
(A) IN GENERAL.—The Administrator, on such terms and con-
ditions as the Administrator considers appropriate, may guarantee 
the timely payment of the principal of and interest on trust certifi-
cates issued by the Administrator or an agent of the Adminis-
trator for purposes of this subsection. 
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(B) LIMIT.— 
(i) IN GENERAL.—A guarantee under subparagraph (A) 
shall be limited to the extent of principal and interest on the 
guaranteed portion of the loan or loans that compose the 
trust or pool. 
(ii) PREPAYMENT.—If a loan in a trust or pool is prepaid, 
either voluntarily or in the event of default, the guarantee of 
timely payment of principal and interest on the trust certifi-
cate shall be reduced in proportion to the amount of principal 
and interest that the prepaid loan represents in the trust or 
pool. 
(iii) INTEREST.—Interest on prepaid or defaulted loans 
shall accrue and be guaranteed by the Administrator only 
through the date of payment on the guarantee. 
(iv) CALL.—During the term of a trust certificate, the 
trust certificate may be called for redemption due to prepay-
ment or default of all loans constituting the trust or pool. 
(4) FULL FAITH AND CREDIT OF THE UNITED STATES.—The full 
faith and credit of the United States is pledged to the payment of all 
amounts that may be required to be paid under any guarantee of a 
trust certificate issued by the Administration or its agent under this 
subsection. 
(5) FEES.— 
(A) IN GENERAL.—The Administrator may impose a fee for a 
loan guarantee sold into the secondary market under subsection 
(c) in an amount equal to not more than 50 percent of the portion 
of the sale price that exceeds 110 percent of the outstanding prin-
cipal amount of the portion of the loan guaranteed by the Admin-
istrator. 
(B) COLLECTION; USE.—A fee under subparagraph (A)— 
(i) shall be collected by the Administrator or by the agent 
that carries out on behalf of the Administrator the central 
registration functions required by subsection (e); and 
(ii) shall be paid to the Administrator and used solely to 
reduce the subsidy on loans guaranteed under the general 
business loan program. 
(C) NO CHARGE TO BORROWER.—A fee under subparagraph (A) 
shall not be charged to the borrower under the loan that is guar-
anteed. 
(D) NO PRECLUSION.—Nothing in this paragraph precludes an 
agent of the Administrator from collecting a fee approved by the 
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Administrator 
for 
the 
functions 
described 
in 
subsection 
(e)(2)(A)(ii). 
(E) PENALTY.—The Administrator may impose and collect, di-
rectly or through a fiscal and transfer agent, a reasonable penalty 
on late payment of a fee under subparagraph (A) in an amount 
not to exceed 5 percent of the fee per month plus interest. 
(F) AGENTS.— 
(i) IN GENERAL.—The Administrator may contract with an 
agent to carry out, on behalf of the Administration, the as-
sessment and collection of the annual fee established under 
section 20314 of this title. 
(ii) COMPENSATION.—An agent may receive, as compensa-
tion for services, any interest earned on the fee while in the 
control of the agent before the time at which the agent is con-
tractually required to remit the fee to the Administrator. 
(6) SUBROGATION.—If the Administrator pays a claim under a guar-
antee issued under this subsection, the Administrator shall be sub-
rogated fully to the rights satisfied by the payment. 
(7) EXERCISE OF OWNERSHIP RIGHTS.—No Federal, State, or local 
law shall preclude or limit the exercise by the Administration of its 
ownership rights in the portions of loans constituting the trust or pool 
against which a trust certificate is issued. 
(e) CENTRAL REGISTRATION OF LOANS AND TRUST CERTIFICATES.— 
(1) DEFINITION OF SELLER.—In this subsection, the term ‘‘seller’’, 
with respect to a sale of a loan, does not include— 
(A) an entity that made the loan; or 
(B) an individual or entity that sells 3 or fewer guaranteed 
loans per year. 
(2) IN GENERAL.—Under regulations prescribed by the Adminis-
trator— 
(A) the Administrator shall— 
(i) provide for a central registration of all loans and trust 
certificates sold under subsections (c) and (d); 
(ii) contract with an agent to carry out on behalf of the 
Administrator the central registration functions of this sec-
tion and the issuance of trust certificates to facilitate pooling; 
and 
(iii) prior to any sale, require the seller to disclose to a pur-
chaser of the guaranteed portion of a loan guaranteed under 
subtitle II and to the purchaser of a trust certificate issued 
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under subsection (d) information on the terms, conditions, 
and yield of the instrument to be sold; and 
(B) the Administrator may regulate brokers and dealers in 
guaranteed loans and trust certificates sold under subsections (c) 
and (d). 
(3) AGENT.—An agent described in paragraph (2)(A)(ii)— 
(A) shall provide a fidelity bond or insurance in such amounts 
as the Administrator determines to be necessary to fully protect 
the interest of the Government; and 
(B) may be compensated through any of the fees assessed under 
this section and any interest earned on any funds collected by the 
agent while the funds are in the control of the agent and before 
the time at which the agent is contractually required to transfer 
the funds to the Administrator or to the holders of the trust cer-
tificates, as appropriate. 
(4) FORM OF REGISTRATION.— 
(A) IN GENERAL.—This subsection does not preclude the use of 
a book-entry or other electronic form of registration for trust cer-
tificates. 
(B) BOOK-ENTRY SYSTEM.—The Administration may, with the 
consent of the Secretary of the Treasury, use the book-entry sys-
tem of the Federal Reserve System. 
(f) ACTION DEALING WITH OR REALIZING ON LOAN.— 
(1) IN GENERAL.—In addition to exercising any power, function, 
privilege, or immunity vested in the Administrator by any other provi-
sion of law, the Administrator may take any and all actions (including 
the procurement of the services of an attorney by contract in any office 
in which an attorney is not or cannot be economically employed full 
time to render such services) if the Administrator determines that such 
action is necessary or desirable in making, servicing, compromising, 
modifying, liquidating, or otherwise dealing with or realizing on a loan 
made under subtitle II or III. 
(2) DEFERRED PARTICIPATION LOAN.—With respect to a deferred 
participation loan, the Administrator may, in the discretion of and pur-
suant to regulations promulgated by the Administrator, authorize a 
participating lending institution to take action relating to loan servicing 
on behalf of the Administrator, including determining eligibility and 
creditworthiness and loan monitoring, collection, and liquidation. 
(3) PREFERRED LENDERS PROGRAM.— 
(A) IN GENERAL.—Under this subsection, the Administrator 
may carry out a preferred lenders program under which a written 
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agreement between a lender and the Administrator delegates to 
the lender— 
(i) complete authority to make and close loans with a guar-
antee from the Administrator without obtaining the prior spe-
cific approval of the Administrator; and 
(ii) complete authority to service and liquidate the loans 
without obtaining the prior specific approval of the Adminis-
trator for routine servicing and liquidation activities, subject 
to the limitation that the lender shall not take any action cre-
ating an actual or apparent conflict of interest. 
(B) STANDARD
REVIEW
PROGRAM.—The Administrator shall 
carry out a standard review program under which, on entry into 
the preferred lenders program and annually or more frequently 
thereafter, each preferred lender’s participation in the preferred 
lenders program is assessed, including an assessment of defaults, 
loans, and recoveries of loans made by the preferred lender under 
the general business loan program. 
(g) FEES.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the Admin-
istrator may impose, retain, and use only— 
(A) fees that are specifically authorized by law; and 
(B) fees that were in effect on September 30, 1994, in the 
amounts and at the rates in effect on that date. 
(2) ADDITIONAL FEES.—The Administrator may, subject to approval 
in appropriations Acts, impose, retain, and use, in addition to fees de-
scribed in paragraph (1)— 
(A) a fee not exceeding $100 for a loan servicing action (other 
than a loan assumption) requested after disbursement of the loan, 
including any substitution of collateral, release or substitution of 
a guarantor, reamortization, or similar action; 
(B) a fee not exceeding $300 for a loan assumption; 
(C) a fee not exceeding one percent of the amount of requested 
financings under chapter 303 for which the applicant requests a 
commitment from the Administration for funding during the fol-
lowing year; and 
(D) fees to recover the direct, incremental cost involved in the 
production and dissemination of compilations of information pro-
duced by the Administrator under this title. 
(3) LIMITATION ON USE.—Amounts collected under this subsection 
shall be used solely to facilitate the administration of the program that 
generated the excess amounts. 
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(h) AMOUNTS COLLECTED BY FISCAL TRANSFER AGENTS.— 
(1) IN GENERAL.—The Administrator may collect, retain and use, 
subject to approval in appropriations Acts, any amount collected by a 
fiscal transfer agent that is not used by the fiscal transfer agent as 
payment of the cost of loan pooling or debenture servicing operations. 
(2) LIMITATION ON USE.—Amounts collected under this subsection 
shall be used solely to facilitate the administration of the program that 
generated the excess amounts. 
(i) UNDERTAKING OR SUSPENSION OF PAYMENT OBLIGATION.— 
(1) DEFINITION OF REQUIRED PAYMENTS.—In this subsection, the 
term ‘‘required payment’’, with respect to a loan, means a payment of 
principal and interest under the loan. 
(2) IN GENERAL.—Subject to the requirements and conditions con-
tained in this subsection, on application by a small business concern 
that is the recipient of a loan made under subtitle II or III, the Admin-
istrator may— 
(A) undertake the small business concern’s obligation to make 
the required payments under the loan; or 
(B) if the loan was a direct loan made by the Administrator, 
suspend the obligation. 
(3) NO REQUIREMENT FOR PAYMENT.—During any period in which 
required payments are being made by the Administrator pursuant to 
an undertaking of an obligation or in which an obligation is suspended, 
no required payment with respect to the loan may be required to be 
made by the small business concern. 
(4) CONDITIONS.—The Administrator may undertake or suspend for 
a period of not to exceed 5 years a small business concern’s obligation 
under this subsection only if— 
(A) without the undertaking or suspension of the obligation, the 
small business concern would, as determined in the sole discretion 
of the Administrator, become insolvent or remain insolvent; 
(B) with the undertaking or suspension of the obligation, the 
small business concern would, as determined in the sole discretion 
of the Administrator, become or remain a viable business; and 
(C) the small business concern executes an agreement in writing 
satisfactory to the Administrator as provided in paragraph (6). 
(5) EXTENSION OF TERM.—Notwithstanding section 20309 of this 
title, the Administrator may extend the term of a loan on which the 
Administrator undertakes or suspends the obligation under this sub-
section for a corresponding period of time. 
(6) AGREEMENT; REQUIRED ACTION.— 
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(A) AGREEMENT.—Before undertaking or suspending a small 
business concern’s obligation under this subsection, the Adminis-
trator, consistent with the purposes of this subsection, shall re-
quire the small business concern to agree in writing to repay to 
the Administrator the aggregate amount of the required payments 
during the period for which the obligation was undertaken or sus-
pended— 
(i) by periodic payments not less in amount or less fre-
quently falling due than those that were due under the loan 
during that period; 
(ii) pursuant to a repayment schedule agreed on by the Ad-
ministrator and the small business concern; or 
(iii) by a combination of the payments described in clauses 
(i) and (ii). 
(B) REQUIRED
ACTION.—In addition to requiring the small 
business concern to execute the agreement described in subpara-
graph (A), the Administrator shall, before undertaking or sus-
pending the obligation, take such action, and require the small 
business concern to take such action, as the Administrator con-
siders appropriate in the circumstances (including the provision of 
such security as the Administrator considers necessary or appro-
priate) to ensure that the rights and interests of the lender will 
be safeguarded adequately during and after the period in which 
the obligation is undertaken or suspended. 
(j) INTEREST RATE ON DEFERRED PARTICIPATION.—On purchase by the 
Administrator of a deferred participation entered into under the general 
business loan program or disaster loan program, the Administrator may 
continue to charge a rate of interest not to exceed that initially charged by 
the participating institution on the amount purchased for the remaining 
term of the indebtedness. 
(k) SUBORDINATION TO CERTAIN STATE TAX LIENS.—Any interest held 
by the Administrator in property as security for a loan shall be subordinate 
to any lien on the property for taxes due on the property to a State or polit-
ical subdivision of a State in any case in which the lien would, under appli-
cable State law, be superior to that interest if the interest were held by any 
party other than the United States. 
(l) RISK MANAGEMENT DATABASE.— 
(1) ESTABLISHMENT.—The Administrator shall establish, within the 
management system for the general business loan program, disaster as-
sistance programs, and certified development company program a man-
agement information system that will generate a database capable of 
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providing timely and accurate information in order to identify loan un-
derwriting, collections, recovery, and liquidation problems. 
(2) INFORMATION TO BE MAINTAINED.—In addition to such other 
information as the Administrator considers appropriate, the database 
established under paragraph (1) shall, with respect to each loan pro-
gram described in paragraph (1), include information relating to— 
(A) the identity of the institution making the guaranteed loan 
or issuing the debenture; 
(B) the identity of the borrower; 
(C) the total dollar amount of the loan or debenture; 
(D) the total dollar amount of Government exposure in each 
loan; 
(E) the district of the Administration in which the borrower has 
its principal office; 
(F) the principal line of business of the borrower, as identified 
by North American Industry Classification System (or any suc-
cessor to that system) code; 
(G) the delinquency rate for each program (including number of 
instances and days overdue); 
(H) the number and amount of repurchases, losses, and recov-
eries in each program; 
(I) the number of deferrals or forbearances in each program (in-
cluding days and number of instances); 
(J) comparisons, on the basis of loan program, lender, Adminis-
tration district and region, for all the data elements maintained; 
and 
(K) underwriting characteristics of each loan that has entered 
into default, including term, amount and type of collateral, loan- 
to-value and other actual and projected ratios, line of business, 
credit history, and type of loan. 
§ 10333. Small business economic database 
(a) IN GENERAL.—The Administrator shall maintain an external small 
business economic database for the purpose of providing Congress and the 
Administration information on the economic condition and the expansion or 
contraction of the small business sector. 
(b) ECONOMIC INDICES.—In carrying out subsection (a), the Adminis-
trator shall publish on a regular basis national small business economic indi-
ces and, to the extent feasible, regional small business economic indices that 
include data relating to— 
(1) employment, layoffs, and new hires; 
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(2) number of business establishments and the types of such estab-
lishments such as sole proprietorships, corporations, and partnerships; 
(3) number of business formations and failures; 
(4) sales and new orders; 
(5) back orders; 
(6) investment in plant and equipment; 
(7) changes in inventory and rate of inventory turnover; 
(8) sources and amounts of capital investment, including debt, eq-
uity, and internally generated funds; 
(9) debt-to-equity ratios; 
(10) exports; 
(11) number and dollar amount of mergers and acquisitions by size 
of acquiring and acquired firm; and 
(12) concentration ratios. 
§ 10334. Small business computer security and education 
program 
(a) IN GENERAL.—The Administrator shall establish a small business 
computer security and education program to— 
(1) provide small business concerns information regarding— 
(A) utilization and management of computer technology; 
(B) computer crimes committed against small business con-
cerns; and 
(C) security for computers owned or utilized by small business 
concerns; 
(2) provide for periodic forums for small business concerns to im-
prove their knowledge of the matters described in paragraph (1); and 
(3) provide training opportunities to educate small business users on 
computer security techniques. 
(b) INFORMATION AND MATERIALS.—The Administrator, after consulta-
tion with the Director of the National Institute of Standards and Tech-
nology of the Department of Commerce, shall develop information and mate-
rials to carry out the activities described in subsection (a). 
§ 10335. General policies governing the granting and denial 
of applications 
The Administrator shall establish general policies (particularly with ref-
erence to the public interest in the granting and denial of applications for 
financial assistance by the Administrator and with reference to the coordi-
nation of the functions of the Administration with other activities and poli-
cies of the Government), which shall govern the granting and denial of ap-
plications for financial assistance by the Administrator. 
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§ 10336. Retention of records 
The Administrator and the Inspector General of the Administration 
shall— 
(1) retain all correspondence, records of inquiries, memoranda, re-
ports, books, and other records, including memoranda as to all inves-
tigations conducted by or for the Administration, for a period of at 
least one year after the date of the record; and 
(2) at all times keep the records available for inspection and exam-
ination by the Committee on Small Business and Entrepreneurship of 
the Senate and the Committee on Small Business of the House of Rep-
resentatives or the authorized representatives of either Committee. 
§ 10337. Consultation and cooperation with other Federal 
agencies 
(a) IN GENERAL.—To the extent that the Administrator considers it nec-
essary to protect and preserve small business interests, the Administrator 
shall consult and cooperate with other Federal agencies in the formulation 
by the Administrator of policies affecting small business concerns. 
(b) RESPONSE.—When requested by the Administrator, a Federal agency 
shall consult and cooperate with the Administrator in the formulation by the 
Federal agency of policies affecting small business concerns to ensure that 
small business interests will be recognized, protected, and preserved. 
(c) EFFECT OF SECTION.—This section does not require a Federal agen-
cy to consult or cooperate with the Administrator in a case in which the 
head of the Federal agency determines that such consultation or cooperation 
would unduly delay action that must be taken by the Federal agency to pro-
tect the national interest in an emergency. 
§ 10338. Representation of status as small business concern 
(a) IN GENERAL.—Any representation of the status of any concern or 
person as a small business concern, HUBZone small business concern, small 
business concern owned and controlled by socially and economically dis-
advantaged individuals, or small business concern owned and controlled by 
women in order to obtain any prime contract or subcontract described in 
subsection (b) shall be of no effect unless the representation is in writing. 
(b) PRIME CONTRACTS AND SUBCONTRACTS.—A prime contract or sub-
contract referred to in subsection (a) is— 
(1) a prime contract to be awarded under chapter 251, 253, 261, 
or 263; 
(2) a subcontract to be awarded under chapter 233; 
(3) a subcontract that is to be included as part or all of a goal con-
tained in a subcontracting plan required under section 24303 of this 
title; or 
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(4) a prime contract or subcontract to be awarded as a result, or 
in furtherance, of any other provision of Federal law that specifically 
references chapter 243 for a definition of program eligibility. 
§ 10339. Criminal background checks 
Before approval of a loan under the general business loan program or a 
debenture guarantee under the certified development company program, the 
Administrator may verify the applicant’s criminal background (or lack of 
criminal background) through the best available means, including, if pos-
sible, use of the National Crime Information Center computer system at the 
Federal Bureau of Investigation. 
CHAPTER 105—PENALTIES 
Sec. 
10501.
False statement; overvaluation of security. 
10502.
Unlawful act by person connected with the Administration. 
10503.
Concealment, disposal, or conversion of property. 
10504.
Misrepresentation of status as small business concern. 
10505.
False certification of past compliance. 
§ 10501. False statement; overvaluation of security 
A person that makes a statement, knowing the statement to be false, or 
willfully overvalues a security for the purpose of obtaining for himself or for 
any applicant a loan, or a loan extension by renewal, deferment of action, 
or otherwise, or the acceptance, release, or substitution of security for a 
loan, or for the purpose of influencing in any way the action of the Adminis-
trator, or for the purpose of obtaining money, property, or anything of 
value, under this subtitle or subtitle II or III, shall be imprisoned not more 
than 2 years, fined not more than $5,000, or both. 
§ 10502. Unlawful act by person connected with the Admin-
istration 
A person connected in any capacity with the Administration that— 
(1) embezzles, abstracts, purloins, or willfully misapplies any money, 
funds, security, or other thing of value, whether belonging to the Ad-
ministrator or pledged or otherwise entrusted to the Administrator; 
(2) with intent to defraud the Administrator or any other body poli-
tic or corporate, or any individual, or to deceive any officer, auditor, 
or examiner of the Administration— 
(A) makes a false entry in a book, report, or statement of or 
to the Administrator; or 
(B) without being duly authorized, draws an order or issues, 
puts forth, or assigns a note, debenture, bond, or other obligation, 
or draft, bill of exchange, mortgage, judgment, or decree of judg-
ment; 
(3) with intent to defraud, participates or shares in or receives di-
rectly or indirectly any money, profit, property, or benefit through any 
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transaction, loan, commission, contract, or other act of the Adminis-
trator; or 
(4)(A) gives any unauthorized information concerning a future action 
or plan of the Administrator that might affect the value of a security; 
or 
(B) having such knowledge, invests or speculates, directly or indi-
rectly, in a security or property of any company or corporation receiv-
ing a loan or other assistance from the Administrator; 
shall be imprisoned not more than 5 years, fined not more than $10,000, 
or both. 
§ 10503. Concealment, disposal, or conversion of property 
A person that, with intent to defraud, knowingly conceals, removes, dis-
poses of, or converts to the use of that person or any other person any prop-
erty mortgaged or pledged to, or held by, the Administrator— 
(1) shall be imprisoned not more than one year, fined not more than 
$1,000, or both; or 
(2) if the value of the property exceeds $100, shall be imprisoned 
not more than 5 years, fined not more than $5,000, or both. 
§ 10504. Misrepresentation of status as small business con-
cern 
(a) OFFENSE.—A person that, in writing, misrepresents the status of a 
concern or person as a small business concern, qualified HUBZone small 
business concern, small business concern owned and controlled by socially 
and economically disadvantaged individuals, or small business concern 
owned and controlled by women, in order to obtain for that person or any 
other person— 
(1) a prime contract to be awarded under chapter 251, 253, 261, 
or 263; 
(2) a subcontract to be awarded under chapter 233; 
(3) a subcontract that is to be included as part or all of a goal con-
tained in a subcontracting plan required under section 24303 of this 
title; or 
(4) a prime contract or subcontract to be awarded as a result, or 
in furtherance, of any other provision of Federal law that specifically 
references chapter 243 for a definition of program eligibility; 
shall be subject to the penalties described in subsection (b). 
(b) PENALTIES.—A person that violates subsection (a)— 
(1) shall be imprisoned not more than 10 years, fined not more than 
$500,000 or both; 
(2) shall be subject to the administrative remedies prescribed by 
chapter 38 of title 31; 
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(3) shall be subject to suspension and debarment as specified in sub-
part 9.4 of title 48, Code of Federal Regulations (or any successor reg-
ulation) on the basis that the misrepresentation indicates a lack of 
business integrity that seriously and directly affects the present respon-
sibility to perform any contract awarded by the Federal Government 
or a subcontract under such a contract; and 
(4) shall be ineligible for participation in any program or activity 
conducted under this subtitle or subtitle II or III for a period not to 
exceed 3 years. 
§ 10505. False certification of past compliance 
A person that falsely certifies past compliance with the requirements of 
section 23328 of this title— 
(1) shall be imprisoned not more than 10 years, fined not more than 
$500,000 or both; 
(2) shall be subject to the administrative remedies prescribed by 
chapter 38 of title 31; 
(3) shall be subject to suspension and debarment as specified in sub-
part 9.4 of title 48, Code of Federal Regulations (or any successor reg-
ulation) on the basis that the misrepresentation indicates a lack of 
business integrity that seriously and directly affects the present respon-
sibility to perform any contract awarded by the Federal Government 
or a subcontract under such a contract; and 
(4) shall be ineligible for participation in any program or activity 
conducted under this subtitle or subtitle II or III for a period not to 
exceed 3 years. 
CHAPTER 107—PERIODIC REPORTS 
Sec. 
10701.
Comprehensive annual report on the state of small business and on Administration 
operations. 
10702.
Annual report on expenditures. 
10703.
Annual report on secondary market operations. 
10704.
Annual report on impact of authority to impose secondary market fees. 
10705.
Annual report on needs of small business concerns owned and controlled by veterans 
and small business concerns owned and controlled by service-disabled veterans. 
10706.
Annual report on contract bundling. 
10707.
Annual report on business development program. 
10708.
Annual report on contract participation goals. 
10709.
Annual report on cost savings from breakout procurement center representatives. 
10710.
Annual reports on SBIRs, STTRs, and the FAST program. 
10711.
Annual report on women’s business center program. 
10712.
Annual report of the Office of International Trade. 
10713.
Annual report on historical trends of the small business sector. 
10714.
Biennial report on accredited lenders program. 
10715.
Annual report on premier certified lenders program. 
10716.
Annual report on foreclosure and liquidation of loans under the certified development 
company program. 
10717.
Reports on disaster assistance. 
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§ 10701. Comprehensive annual report on the state of small 
business and on Administration operations 
(a) IN GENERAL.—As soon as practicable each fiscal year, the Adminis-
trator shall submit to the President a comprehensive annual report. 
(b) CONTENTS.—A report under subsection (a) shall include— 
(1) a description of the state of small business in the Nation as a 
whole and in each State; 
(2) a description of the operations of the Administration under this 
subtitle and subtitle II, including the general lending, disaster relief, 
Government regulation relief, procurement and property disposal, re-
search and development, technical assistance, dissemination of data and 
information, and other functions under the jurisdiction of the Adminis-
tration during the previous fiscal year; 
(3) recommendations— 
(A) for strengthening or improving the functions described in 
paragraph (2); or 
(B) when necessary or desirable to implement more effectively 
congressional policies and proposals, for establishing new or alter-
native programs; 
(4) the names of the business concerns to which contracts are let 
and for which financing is arranged by the Administrator, including the 
amounts of the contracts and financings; 
(5) the proportion of loans and other assistance under subtitle II and 
provided to minority small business concerns, the goals of the Adminis-
trator for the next fiscal year with respect to minority small business 
concerns, and recommendations for improving assistance to minority 
small business concerns under subtitle II; and 
(6)(A) a full and detailed account of operations under subtitle III 
that— 
(i) discloses the amount of losses sustained by the Government 
as a result of such operations during the preceding fiscal year; and 
(ii) includes an estimate of the total losses that the Government 
can reasonably expect to incur as a result of such operations dur-
ing the then-current fiscal year; 
(B) full and detailed accounts relating to— 
(i) the Administrator’s recommendations with respect to the fea-
sibility and organization of a small business capital bank to en-
courage private financing of small business investment companies 
(as defined in section 30101 of this title) to replace Government 
financing of small business investment companies; 
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(ii) the Administrator’s plans to ensure the provision of small 
business investment company financing to all areas of the country 
and to all eligible small business concerns, including steps taken 
to accomplish that; 
(iii) steps taken by the Administrator to maximize recoupment 
of Government funds incident to the inauguration and administra-
tion of the small business investment company program and to en-
sure compliance with statutory and regulatory standards relating 
to the small business investment company program; 
(iv) an accounting by the Director of the Office of Management 
and Budget with respect to Federal expenditures to business by 
executive agencies, specifying the proportion of those expenditures 
going to business concerns falling above and below small business 
size standards applicable to small business investment companies; 
(v) an accounting by the Secretary of the Treasury with respect 
to tax revenues accruing to the Government from business con-
cerns, specifying the source of those revenues by concerns falling 
above and below the small business size standards applicable to 
small business investment companies; 
(vi) an accounting by the Secretary of the Treasury with respect 
to tax losses and increased tax revenues related to small business 
investment company financing of both individual and corporate 
business taxpayers; 
(vii) recommendations of the Secretary of the Treasury with re-
spect to additional tax incentives to improve and facilitate the op-
erations of small business investment companies and to encourage 
the use of their financing facilities by eligible small business con-
cerns; 
(viii) a report from the Securities and Exchange Commission 
enumerating actions undertaken by the Securities and Exchange 
Commission to simplify and minimize the regulatory requirements 
governing small business investment companies under the Federal 
securities laws and to eliminate overlapping regulation and juris-
diction as between the Securities and Exchange Commission, the 
Administration, and other agencies of the executive branch; 
(ix) a report from the Securities and Exchange Commission 
with respect to actions taken to facilitate and stabilize the access 
of small business concerns (as defined in section 30101 of this 
title) to the securities markets; and 
(x) actions undertaken by the Securities and Exchange Commis-
sion to simplify compliance by small business investment compa-
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nies with the requirements of Investment Company Act of 1940 
(15 U.S.C. 80a–1 et seq.) and to facilitate the election to be taxed 
as regulated investment companies under section 851 of the Inter-
nal Revenue Code of 1986 (26 U.S.C. 851); and 
(C) a full and detailed description or account relating to— 
(i) the number of small business investment companies the Ad-
ministrator licensed under subtitle III, the number of licensees (as 
defined in section 30101 of this title) that have been placed in liq-
uidation, and the number of licensees that have surrendered their 
licenses in the previous year, identifying the amount of leverage 
(as defined in section 30101 of this title) each has received and 
the type of leverage instruments each has used; 
(ii) the amount of leverage that each licensee received in the 
previous year and the types of leverage instruments each licensee 
used; 
(iii) for each type of financing instrument, the sizes, geographic 
locations, and other characteristics of the small business invest-
ment companies using the financing instrument, including the ex-
tent to which small business investment companies have used the 
leverage from each instrument to make small business loans, eq-
uity investments, or both; and 
(iv) the frequency with which each type of investment instru-
ment has been used in the current year and a comparison of the 
current year with previous years. 
§ 10702. Annual report on expenditures 
(a) IN GENERAL.—As soon as practicable each fiscal year, the Adminis-
trator shall submit to the President a report showing as accurately as pos-
sible for the fiscal year the amount of funds appropriated to the Administra-
tion that the Administrator has expended in the conduct of each of the prin-
cipal activities of the Administration such as lending, procurement, con-
tracting, and providing technical and managerial aids. 
(b) CONTENTS.—A report under subsection (a) shall disclose, separately 
for each type of loan made under sections 20503 to 20509 of this title and 
separately for all other loan programs, the number and amount of loans, 
the number of applications, the total amount applied for, and the number 
and amount of defaults for each type of equipment or service for which 
loans are authorized by subtitle II. 
§ 10703. Annual report on secondary market operations 
(a) IN GENERAL.—Not later than March 31 of each year, the Adminis-
trator shall submit to the Committee on Small Business and Entrepreneur-
ship of the Senate and the Committee on Small Business of the House of 
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Representatives a report on the secondary market operations during the 
preceding calendar year. 
(b) CONTENTS.—A report under subsection (a) shall include— 
(1) the number and the total dollar amount of loans sold into the 
secondary market and the distribution of such loans by size of loan, 
size of lender, geographic location of lender, interest rate, maturity, 
lender servicing fees, whether the rate is fixed or variable, and pre-
mium paid; 
(2) the number and dollar amount of loans resold in the secondary 
market with a distribution by size of loan, interest rate, and premiums; 
(3) the number and total dollar amount of pools formed; 
(4) the number and total dollar amount of loans in each pool; 
(5) the dollar amount, interest rate, and terms on each loan in each 
pool and whether the rate is fixed or variable; 
(6) the number, face value, interest rate, and terms of the trust cer-
tificates issued for each pool; 
(7) to the maximum extent possible, the use by the lender of the pro-
ceeds of sales of loans in the secondary market for additional lending 
to small business concerns; and 
(8) an analysis of the information reported under paragraphs (1) to 
(7) to assess the access of small business concerns to capital at reason-
able rates and terms as a result of secondary market operations. 
§ 10704. Annual report on impact of authority to impose sec-
ondary market fees 
(a) DEFINITION
OF SMALL BUSINESS CONCERN OWNED
AND CON-
TROLLED BY MINORITIES.—In this section, the term ‘‘small business con-
cerns owned and controlled by minorities’’ includes a small business concern 
that is owned and controlled by individuals belonging to one of the des-
ignated groups listed in subclause (1)(B) of the contract clause described 
in section 24301(c) of this title. 
(b) STUDY, MONITORING, AND EVALUATION.—The Administrator shall 
study, monitor, and evaluate the impact of subparagraphs (A) to (E) of sec-
tion 10332(d)(5) of this title on— 
(1) the ability of small business concerns owned and controlled by 
minorities, small business concerns owned and controlled by women, 
and other small business concerns to obtain financing; and 
(2) the effectiveness, viability, and growth of the secondary market 
authorized by section 10332(c) of this title. 
(c) ANNUAL REPORTS.— 
(1) IN GENERAL.—The Administrator shall annually submit to the 
Committee on Small Business and Entrepreneurship of the Senate and 
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the Committee on Small Business of the House of Representatives a 
report containing the Administrator’s findings and recommendations on 
the impact described in subsection (b), specifically including changes in 
the interest rates on financings provided to small business concerns 
owned and controlled by minorities, small business concerns owned and 
controlled by women, and other small business concerns through the 
use of the secondary market. 
(2) FINDINGS AND RECOMMENDATIONS.—The report under para-
graph (1) shall state findings and recommendations separately for the 
ethnic and gender components of the small business concerns described 
in paragraph (1). 
§ 10705. Annual report on needs of small business concerns 
owned and controlled by veterans and small busi-
ness concerns owned and controlled by service- 
disabled veterans 
(a) IN GENERAL.—The Administrator shall annually submit to the Com-
mittee on Small Business and Entrepreneurship and Committee on Veterans 
Affairs of the Senate and the Committee on Small Business and Committee 
on Veterans Affairs of the House of Representatives a report on the needs 
of small business concerns owned and controlled by veterans and small busi-
ness concerns owned and controlled by service-disabled veterans. 
(b) CONTENTS.—A report under subsection (a) shall include information 
on— 
(1)(A) the availability of Administration programs for small business 
concerns owned and controlled by veterans and small business concerns 
owned and controlled by service-disabled veterans; and 
(B) the degree of utilization of those programs by small business 
concerns owned and controlled by veterans and small business concerns 
owned and controlled by service-disabled veterans during the preceding 
12-month period, including statistical information on such utilization as 
compared with the small business community as a whole; 
(2) the percentage and dollar value of Federal contracts awarded to 
small business concerns owned and controlled by veterans and small 
business concerns owned and controlled by service-disabled veterans 
during the preceding 12-month period, based on the data collected 
under section 27513 of this title; and 
(3) proposals to improve the access of small business concerns owned 
and controlled by veterans and small business concerns owned and con-
trolled by service-disabled veterans to the assistance made available by 
the United States. 
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§ 10706. Annual report on contract bundling 
(a) IN GENERAL.—In March of each year, using information maintained 
under section 25105(e) of this title, the Administrator shall submit to the 
Committee on Small Business and Entrepreneurship of the Senate and the 
Committee on Small Business of the House of Representatives a report on 
contract bundling. 
(b) CONTENTS.—A report under subsection (a) shall include— 
(1) information on the number (arranged by industrial classification) 
of small business concerns displaced as prime contractors as a result 
of the award of bundled contracts by Federal agencies; and 
(2) a description of the activities with respect to previously bundled 
contracts of each Federal agency during the preceding year, includ-
ing— 
(A) information on the number and total dollar amount of all 
contract requirements that were bundled; and 
(B) with respect to each bundled contract, information on— 
(i) the justification for the bundling of contract require-
ments; 
(ii) the cost savings realized by bundling the contract re-
quirements over the life of the contract; 
(iii) the extent to which maintaining the bundled status of 
contract requirements is projected to result in continued cost 
savings; 
(iv) the extent to which the bundling of contract require-
ments complied with the procuring agency’s small business 
subcontracting plan, including the total dollar value awarded 
to small business concerns as subcontractors and the total 
dollar value previously awarded to small business concerns as 
prime contractors; and 
(v) the impact of the bundling of contract requirements on 
small business concerns unable to compete as prime contrac-
tors for the consolidated requirements and on the industries 
of such small business concerns, including a description of 
any changes to the proportion of any such industry that is 
composed of small business concerns. 
§ 10707. Annual report on business development program 
(a) IN GENERAL.—Not later than April 30 of each year, the Adminis-
trator shall submit to Congress a report on the business development pro-
gram. 
(b) CONTENTS.— 
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(1) NET WORTH OF PARTICIPATING INDIVIDUALS.—A report under 
subsection (a) shall disclose— 
(A) the average personal net worth of individuals who own and 
control small business concerns that were initially certified for par-
ticipation in the business development program during the imme-
diately preceding fiscal year; and 
(B) the dollar distribution of net worths, at $50,000 increments, 
of all such individuals determined to be socially and economically 
disadvantaged. 
(2) DESCRIPTION AND ESTIMATE OF BENEFITS AND COSTS.—A re-
port under subsection (a) shall include a description and estimate of 
the benefits and costs that have accrued to the economy and the Gov-
ernment in the immediately preceding fiscal year due to the operations 
of the program participants that were performing contracts awarded 
under the business development program. 
(3) PROGRAM PARTICIPANTS EXITING THE PROGRAM.— 
(A) IN GENERAL.—A report under subsection (a) shall include 
a compilation and evaluation of the former program participants 
that exited the program during the immediately preceding 3 fiscal 
years. 
(B) CONTENTS.—The compilation and evaluation under sub-
paragraph (A) shall— 
(i)(I) disclose the number of former program participants 
that are actively engaged in business operations; and 
(II) for those former program participants, separately de-
tail the benefits and costs that have accrued to the economy 
during the immediately preceding fiscal year due to the oper-
ations of the former program participants; 
(ii)(I) disclose the number of former program participants 
that have ceased or substantially curtailed business oper-
ations; and 
(II) describe the reasons for the cessation or curtailment; 
and 
(iii) disclose the number of former program participants 
that have been acquired by other business concerns or organi-
zations owned and controlled by other than socially and eco-
nomically disadvantaged individuals. 
(4) LIST OF PROGRAM PARTICIPANTS.—A report under subsection 
(a) shall include a list of all program participants that participated in 
the program during the preceding fiscal year that discloses, by State 
and by Administration region, for each program participant— 
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(A) the name of the program participant; 
(B) the race or ethnicity and gender of the disadvantaged own-
ers; 
(C) the dollar value of all contracts received in the preceding 
year; 
(D) the dollar amount of advance payments received under con-
tracts awarded under the business development program; and 
(E) a description (including (if appropriate) an estimate of the 
dollar value) of all benefits received under sections 20511 and 
23327 of this title during the preceding year. 
(5) CONTRACT AND OPTION VALUE.—A report under subsection (a) 
shall include the total dollar value of contracts and options awarded 
under this chapter during the preceding fiscal year— 
(A) expressed as an absolute amount; 
(B) expressed as a percentage of total sales— 
(i) of all program participants during that year; and 
(ii) of program participants in each of the 9 years of pro-
gram participation; and 
(C) expressed, at such dollar increments as the Administrator 
considers appropriate, for each 6-digit North American Industry 
Classification System code under which the contracts and options 
were classified. 
(6) ADDITIONAL RESOURCES OR AUTHORITIES.—A report under sub-
section (a) shall include a description of such additional resources or 
program authorities as may be required to provide the types of services 
needed over the next 2-year period to service the expected portfolio of 
program participants. 
§ 10708. Annual report on contract participation goals 
(a) REPORT BY THE ADMINISTRATOR.— 
(1) IN GENERAL.—The Administrator shall annually— 
(A) compile and analyze the reports submitted by Federal agen-
cies under section 25106(c) of this title; and 
(B) submit the reports to the President and Congress. 
(2) CONTENTS.—The Administrator’s submission to the President 
shall include— 
(A)(i) the Governmentwide goals for participation by qualified 
HUBZone small business concerns, small business concerns owned 
and controlled by service-disabled veterans, small business con-
cerns owned and controlled by socially and economically disadvan-
taged individuals, small business concerns owned and controlled by 
women, and other small business concerns; and 
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(ii) the performance in attaining those goals; 
(B)(i) the goals in effect for each Federal agency; and 
(ii) each Federal agency’s performance in attaining those goals; 
(C)(i) an analysis of any failure to achieve the Governmentwide 
goals or any Federal agency goals; and 
(ii) the actions planned by each Federal agency and approved 
by the Administrator to achieve the goals in the succeeding fiscal 
year; 
(D) for each Federal agency and on a Governmentwide basis, 
the number and dollar value of contracts awarded to qualified 
HUBZone small business concerns, small business concerns owned 
and controlled by service-disabled veterans, small business con-
cerns owned and controlled by socially and economically disadvan-
taged individuals, small business concerns owned and controlled by 
women, and other small business concerns through— 
(i) noncompetitive negotiation; 
(ii) competition restricted to small business concerns owned 
and controlled by socially and economically disadvantaged in-
dividuals; 
(iii) competition restricted to small business concerns; and 
(iv) unrestricted competitions; and 
(E) the number and dollar value of subcontracts awarded to 
qualified HUBZone small business concerns, small business con-
cerns owned and controlled by service-disabled veterans, small 
business concerns owned and controlled by socially and economi-
cally disadvantaged individuals, small business concerns owned 
and controlled by women, and other small business concerns. 
(b) REPORT BY THE PRESIDENT.—The President shall include the infor-
mation required by subsection (a) in each annual report to Congress on the 
state of small business under section 45101(c) of this title. 
§ 10709. Annual report on cost savings from breakout pro-
curement 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 breakout procurement center rep-
resentatives assigned to major procurement centers under section 
25110 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 breakout procurement 
center representatives as the Administrator considers appropriate. 
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§ 10710. Annual reports on SBIRs, STTRs, and the FAST pro-
gram 
(a) SBIR AND STTR PROGRAMS.— 
(1) IN GENERAL.—The Administrator, not less than annually, shall 
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 on the SBIRs (as 
defined in section 26101 of this title) and STTRs (as defined in section 
26101 of this title) of the Federal agencies and the Administrator’s in-
formation and monitoring efforts relating to the SBIRs and STTRs. 
(2) CONTENTS.—A report under paragraph (1) shall include— 
(A) the data on output and outcomes collected under section 
26302(a)(9) and paragraphs (9) and (14) of section 26322 of this 
title; 
(B) the number of proposals received from, and the number and 
total amount of awards to, HUBZone small business concerns 
under each of the SBIRs and STTRs; and 
(C) a description of the extent to which Federal agencies are 
providing in a timely manner information needed to maintain the 
database under section 26341 of this title. 
(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 (as defined in sec-
tion 26345 of this title) during the preceding year; 
(2) a list of recipients under section 26345 of this title, including 
their location and the activities being performed with the awards made 
or under the cooperative agreements entered into; and 
(3) the mentoring networks and the mentoring database, as provided 
for under section 26345(f) of this title, including— 
(A) the status of the inclusion of mentoring information in the 
database required by section 26341 of this title; and 
(B) the status of the implementation and description of the 
usage of the mentoring networks. 
§ 10711. Annual report on women’s business center program 
(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. 
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(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 27307(a)(2) of this title. 
§ 10712. Annual report of the Office of International Trade 
The Office of International Trade shall annually submit to the Committee 
on Small Business and Entrepreneurship of the Senate and the Committee 
on Small Business of the House of Representatives a report that describes 
the progress that the Office of International Trade has made in carrying 
out section 10309. 
§ 10713. Annual report on historical trends of the small busi-
ness sector 
The Administrator shall publish annually a report giving a comparative 
analysis and interpretation of the historical trends of the small business sec-
tor as reflected by the data acquired under section 10333 of this title. 
§ 10714. Biennial report on accredited lenders program 
The Administrator shall biennially 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 implementation 
of section 33107 of this title that includes data on the number of qualified 
development companies (as defined in section 33101 of this title) designated 
as accredited lenders, their debenture guarantee volume, their loss rates, the 
average processing time on their guarantee applications, and such other in-
formation as the Administrator considers appropriate. 
§ 10715. Annual report on premier certified lenders program 
(a) IN GENERAL.—The Administration 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 
implementation of section 33108 of this title. 
(b) CONTENTS.—A report under subsection (a) shall include— 
(1) the number of certified development companies designated as 
premier certified lenders; 
(2) the debenture guarantee volume of those certified development 
companies; 
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(3) a comparison of the loss rate of premier certified lenders with 
the loss rate of accredited lenders under section 33107 of this title and 
the loss rate of other certified development companies under chapter 
331, specifically comparing default rates and recovery rates on liquida-
tions; and 
(4) such other information as the Administrator considers appro-
priate. 
§ 10716. Annual report on foreclosure and liquidation of 
loans under the certified development company 
program 
(a) IN GENERAL.—Based on information provided by qualified develop-
ment companies (as defined in section 33101 of this title) and the Adminis-
tration, the Administrator shall annually submit to the Committee on Small 
Business and Entrepreneurship of the Senate and the Committee on Small 
Business of the House of Representatives a report on the results of delega-
tion of authority under section 33109 of this title. 
(b) CONTENTS.—A report under subsection (a)— 
(1) shall disclose, with respect to each loan foreclosed or liquidated 
by a qualified development company under section 33109 of this title, 
or for which losses were otherwise mitigated by the qualified develop-
ment company pursuant to a workout plan under that section— 
(A) the total cost of the project financed with the loan; 
(B) the total original dollar amount guaranteed by the Adminis-
trator; 
(C) the total dollar amount of the loan at the time of liquida-
tion, foreclosure, or mitigation of loss; 
(D) the total dollar losses resulting from the liquidation, fore-
closure, or mitigation of loss; and 
(E) the total recoveries resulting from the liquidation, fore-
closure, or mitigation of loss, both as a percentage of the amount 
guaranteed and the total cost of the project financed; 
(2) shall disclose, with respect to each qualified development com-
pany to which authority is delegated under section 33109 of this title, 
the totals of each of the amounts described in subparagraphs (A) to 
(E) of paragraph (1); 
(3) shall disclose, with respect to all loans subject to foreclosure, liq-
uidation, or mitigation under section 33109 of this title, the totals of 
each of the amounts described in subparagraphs (A) to (E) of para-
graph (1); 
(4) include a comparison between— 
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(A) the information provided under paragraph (3) with respect 
to the 12-month period preceding the date on which the report is 
submitted; and 
(B) the same information with respect to loans foreclosed and 
liquidated, or otherwise treated, by the Administrator during the 
same period; and 
(5)(A) shall disclose the number of times that the Administrator has 
failed to— 
(i) approve or reject a liquidation plan in accordance with sub-
paragraph (A)(ii) or a workout plan in accordance with subpara-
graph (C)(ii) of section 33109(c)(2) of this title; or 
(ii) approve or deny a request for purchase of indebtedness 
under section 33109(c)(2)(B)(ii) of this title; and 
(B) include specific information regarding— 
(i) the reasons for the Administrator’s failure; and 
(ii) any delays that resulted. 
§ 10717. Reports on disaster assistance 
(a) DEFINITIONS.—In this section: 
(1) MAJOR DISASTER UPDATE PERIOD.—The term ‘‘major disaster 
update period’’, with respect to a major disaster, means the period be-
ginning on the date on which the President declares the major disaster 
(including any major disaster relating to which the Administrator de-
clares eligibility for additional disaster assistance under 21308 of this 
title) and ending on the date on which the declaration terminates. 
(2) STATE.—The term ‘‘State’’ means a State of the United States, 
the District of Columbia, Puerto Rico, the Northern Mariana Islands, 
the Virgin Islands, Guam, American Samoa, and any territory or pos-
session of the United States. 
(b) MONTHLY ACCOUNTING REPORTS FOR MAJOR DISASTERS.— 
(1) REPORTING REQUIREMENTS.—Not later than the fifth business 
day of each month during the applicable period for a major disaster, 
the Administrator shall submit to the Committee on Small Business 
and Entrepreneurship and Committee on Appropriations of the Senate 
and the Committee on Small Business and Committee on Appropria-
tions of the House of Representatives a report on the operation of the 
disaster assistance programs for that major disaster during the pre-
ceding month. 
(2) CONTENTS.—A report under paragraph (1) shall include— 
(A)(i) the daily average lending volume, in number of loans and 
dollars, of each category of loan; and 
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(ii) the percentage by which each category has increased or de-
creased since the previous report; 
(B)(i) the weekly average lending volume, in number of loans 
and dollars, of each category of loan; and 
(ii) the percentage by which each category has increased or de-
creased since the previous report; 
(C)(i) the amount of funding spent over the month for each cat-
egory of loan, both in amount of appropriations and in program 
level; and 
(ii) the percentage by which each category has increased or de-
creased since the previous report; 
(D)(i) the amount of funding available for loans, in amount of 
appropriations and in program level, for each category of loan; and 
(ii) the percentage by which each category has increased or de-
creased since the previous report, noting the source of any addi-
tional funding; 
(E) an estimate of how long the available funding for loans will 
last, based on the spending rate; 
(F)(i) the amount of funding spent over the month for staff en-
gaged in the operation of the disaster assistance programs; 
(ii) the number of staff engaged in the operation of the disaster 
assistance programs; and 
(iii) the percentage by which the funding and number of staff 
engaged in the operation of the disaster assistance programs have 
increased or decreased since the previous report; 
(G)(i) the amount of funding spent over the month for adminis-
trative costs of the disaster assistance programs; and 
(ii) the percentage by which spending for those administrative 
costs has increased or decreased since the previous report; 
(H)(i) the amount of funding available for salaries and expenses 
combined for operation of the disaster assistance programs; and 
(ii) the percentage by which that funding has increased or de-
creased since the previous report, noting the source of any addi-
tional funding; and 
(I) an estimate of how long the available funding for those sala-
ries and expenses will last, based on the spending rate. 
(c) WEEKLY DISASTER UPDATES FOR MAJOR DISASTERS.— 
(1) IN GENERAL.—Each week during a major disaster update period, 
the Administrator shall submit to the Committee on Small Business 
and Entrepreneurship of the Senate and the Committee on Small Busi-
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ness of the House of Representatives a report on the operation of the 
disaster assistance programs for the major disaster area. 
(2) CONTENTS.—A report under paragraph (1) shall include— 
(A)(i) the number of Administration staff performing loan proc-
essing, field inspection, and other duties for the major disaster; 
and 
(ii) the allocations of the staff in the disaster field offices, dis-
aster recovery centers, workshops, and other Administration of-
fices nationwide; 
(B)(i) the daily number of applications received from applicants 
in the major disaster area; and 
(ii) a breakdown of that number by State; 
(C)(i) the daily number of applications pending application 
entry from applicants in the major disaster area; and 
(ii) a breakdown of that number by State; 
(D)(i) the daily number of applications withdrawn by applicants 
in the major disaster area; and 
(ii) a breakdown of that number by State; 
(E)(i) the daily number of applications summarily declined by 
the Administrator from applicants in the major disaster area; and 
(ii) a breakdown of that number by State; 
(F)(i) the daily number of applications declined by the Adminis-
trator from applicants in the major disaster area; and 
(ii) a breakdown of that number by State; 
(G)(i) the daily number of applications in process from appli-
cants in the major disaster area; and 
(ii) a breakdown of that number by State; 
(H)(i) the daily number of applications approved by the Admin-
istrator from applicants in the major disaster area; and 
(ii) a breakdown of that number by State; 
(I)(i) the daily dollar amount of applications approved by the 
Administrator from applicants in the major disaster area; and 
(ii) a breakdown of that number by State; 
(J)(i) the daily number of loans disbursed, both partially and 
fully, by the Administrator to applicants in the major disaster 
area; and 
(ii) a breakdown of that number by State; 
(K)(i) the daily dollar amount of loans disbursed, both partially 
and fully, to applicants in the major disaster area; and 
(ii) a breakdown of that number by State; 
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(L)(i) the number of applications approved, including dollar 
amount approved, and applications partially and fully disbursed, 
including dollar amounts, since the last report under paragraph 
(1); and 
(M)(i) the declaration date, physical damage closing date, and 
economic injury closing date for the major disaster; and 
(ii) the number of counties in the major disaster area. 
(d) PERIODS WHEN ADDITIONAL DISASTER ASSISTANCE IS MADE 
AVAILABLE.— 
(1) IN GENERAL.—During any period for which the Administrator 
declares eligibility for additional disaster assistance under section 
21308 of this title, the Administrator shall, on a monthly basis, submit 
to the Committee on Small Business and Entrepreneurship of the Sen-
ate and the Committee on Small Business of the House of Representa-
tives a report on the disaster assistance operations of the Adminis-
trator with respect to the applicable major disaster. 
(2) CONTENTS.—A report under paragraph (1) shall specify— 
(A) the number of applications for disaster assistance distrib-
uted; 
(B) the number of applications for disaster assistance received; 
(C) the average time for the Administrator to approve or dis-
approve an application for disaster assistance; 
(D) the number of disaster loans approved; 
(E) the average time for initial disbursement of disaster loan 
proceeds; and 
(F) the dollar amount of disaster loan proceeds disbursed. 
(e) NOTICE OF NEED FOR SUPPLEMENTAL FUNDS.—On the date on 
which the Administrator notifies any committee of the Senate or the House 
of Representatives that supplemental funding is necessary for the disaster 
assistance programs in any fiscal year, the Administrator shall notify in 
writing the Committee on Small Business and Entrepreneurship of the Sen-
ate and the Committee on Small Business of the House of Representatives 
regarding the need for supplemental funds for the disaster assistance pro-
grams. 
(f) REPORT ON CONTRACTING.— 
(1) IN GENERAL.—Not later than 6 months after the date on which 
the President declares a major disaster, and every 6 months thereafter 
until the date that is 18 months after the date on which the major dis-
aster is declared, the Administrator shall submit to the Committee on 
Small Business and Entrepreneurship of the Senate and the Committee 
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on Small Business of the House of Representatives a report regarding 
Federal contracts awarded as a result of the major disaster. 
(2) CONTENTS.—A report under paragraph (1) shall include— 
(A) the number of contracts awarded as a result of the major 
disaster; 
(B) the number of contracts awarded to small business concerns 
as a result of the major disaster; 
(C) the number of contracts awarded to women-owned business 
concerns and minority-owned business concerns as a result of the 
major disaster; and 
(D) the number of contracts awarded to business concerns local 
to the major disaster area as a result of the major disaster. 
(g) ANNUAL REPORTS ON DISASTER ASSISTANCE.— 
(1) IN GENERAL.—Not later than 45 days after the end of a fiscal 
year, the Administrator shall submit to the Committee on Small Busi-
ness and Entrepreneurship of the Senate and the Committee on Small 
Business of the House of Representatives a report on the disaster as-
sistance operations of the Administration for the fiscal year. 
(2) CONTENTS.—A report under paragraph (1) shall— 
(1) specify the number of Administration personnel involved in dis-
aster assistance operations; 
(2) describe any material changes to disaster assistance operations, 
such as changes to technologies used or to personnel responsibilities; 
(3) describe and assess the effectiveness of the Administrator in re-
sponding to disasters during the fiscal year, including a description of 
the number and dollar amounts of loans made for damage and for eco-
nomic injury; and 
(4) describe the plans of the Administrator for preparing to respond 
to disasters during the next fiscal year. 
CHAPTER 109—FUNDING 
Sec. 
10901.
Commitments in full amounts provided by law. 
10902.
Program levels. 
10903.
Authorization of appropriations. 
§ 10901. 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— 
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(1) the availability of qualified applications; and 
(2) limitations contained in appropriations Acts. 
(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 one fiscal year and 
disbursed or guaranteed in any one or more of the 4 subsequent fiscal years. 
§ 10902. 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 211; and 
(B) $105,000,000 in direct loans, as provided in chapter 211. 
(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 20507 of this title and chapter 
331; 
(C) $500,000,000 in loans, as provided in section 20512 of this 
title; and 
(D) $50,000,000 in loans, as provided in chapter 211. 
(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 
32102(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: 
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(1) For the programs authorized by this subtitle and subtitle II, the 
Administrator may make— 
(A) $80,000,000 in technical assistance grants, as provided in 
chapter 211; and 
(B) $110,000,000 in direct loans, as provided in chapter 211. 
(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 20507 of this title and chapter 
331; 
(C) $500,000,000 in loans, as provided in section 20512 of this 
title; and 
(D) $50,000,000 in loans, as provided in chapter 211. 
(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 
32102(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. 
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140 
CHAPTER 217—IMMEDIATE DISASTER ASSISTANCE 
PROGRAM 
Sec. 
21701.
Definition of program. 
21702.
Program. 
21703.
Eligibility. 
21704.
Use of proceeds. 
21705.
Loan terms. 
21706.
Approval or disapproval. 
§ 21701. Definition of program 
In this chapter, the term ‘‘program’’ means the immediate disaster assist-
ance program established under section 21702 of this title. 
§ 21702. Program 
The Administrator shall carry out a program, to be known as the imme-
diate disaster assistance program, under which the Administrator partici-
pates on a deferred (guaranteed) basis in 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 $25,000 for business concerns affected by a disaster. 
§ 21703. Eligibility 
To receive a loan guarantee under section 21702 of this title, an appli-
cant shall apply for, and meet basic eligibility standards for, a loan under 
chapter 213 or 215. 
§ 21704. Use of proceeds 
A business concern that receives a loan under chapter 213 or 215 shall 
use the proceeds of the loan to repay all loans guaranteed under section 
21702 of this title, if any, before using the proceeds for any other purpose. 
§ 21705. Loan terms 
(a) NO PREPAYMENT PENALTY.—There shall be no prepayment penalty 
on a loan guaranteed under section 21702 of this title. 
(b) REPAYMENT.—A business concern that receives a loan guaranteed 
under section 21702 of this title and that is disapproved for a loan under 
chapter 213 or 215 shall repay the loan guaranteed under section 21702 
of this title not later than the date established by the Administrator, which 
shall not be earlier than 10 years after the date on which the loan guaran-
teed under section 21702 of this title is disbursed. 
§ 21706. Approval or disapproval 
The Administrator shall ensure that each applicant for a loan under the 
program receives a decision approving or disapproving the application within 
36 hours after the Administrator receives the application. 
CHAPTER 219—EXPEDITED DISASTER ASSISTANCE 
BUSINESS LOAN GUARANTEE PROGRAM 
Sec. 
21901.
Definition of program. 
21902.
Program. 
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141 
21903.
Consultation. 
21904.
Regulations. 
§ 21901. Definition of program 
In this chapter, the term ‘‘program’’ means the expedited disaster assist-
ance business loan guarantee program established under section 21902 of 
this title. 
§ 21902. Program 
The Administrator shall establish and implement an expedited disaster 
assistance business loan guarantee program under which the Administrator 
may, on an expedited basis, guarantee timely payment of principal and in-
terest, as scheduled on any loan made to an eligible small business concern 
under section 21308 of this title. 
§ 21903. Consultation 
In establishing the program, the Administrator shall consult with— 
(1) appropriate personnel (including district office personnel) of the 
Administration; 
(2) appropriate technical assistance providers (including small busi-
ness development centers); 
(3) appropriate lenders and credit unions; and 
(4) the Committee on Small Business and Entrepreneurship of the 
Senate and Committee on Small Business of the House of Representa-
tives. 
§ 21904. Regulations 
(a) IN GENERAL.—The Administrator shall issue regulations establishing 
and implementing the program in accordance with this chapter. 
(b) CONTENTS.—The regulations shall— 
(1) identify whether appropriate uses of funds under the program 
may include— 
(A) paying employees; 
(B) paying bills and other financial obligations; 
(C) making repairs; 
(D) purchasing inventory; 
(E) restarting or operating a small business concern in the com-
munity in which the small business concern was conducting oper-
ations prior to the applicable major disaster or in a neighboring 
area in the disaster area; or 
(F) covering additional costs until the small business concern is 
able to obtain funding through insurance claims, Federal assist-
ance programs, or other sources; and 
(2) set the terms and conditions of any loan made under the pro-
gram. 
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