An Act to create the Small Business Administration and to preserve small business institutions and free, competitive enterprise
PL 83-163 (H.R.5141), enacted 07/30/1953

230 
PUBLIC LAW 163-JULY 30, 1953 
[67 ST A T , 
States such citizen and spouse will legally adopt him in the United 
States and will care for him properly; and (3) who is ineligible for 
admission into the United States solely because the nonpreference 
portion of the quota to which he would otherwise be chargeable is 
oversubscribed by applicants registered on the consular waiting list 
at the time his visa application is made. 
SEC. 3. No natural parent of any eligible orphan who shall be 
admitted into the United States pursuant to this Act shall thereafter, 
by virtue of such parentage, be accorded any right, privilege, or status 
under the Immigration and Nationality Act. 
SEC. 4. Any eligible orphan granted a visa under this Act shall be 
deemed a nonquota immigrant for the purposes of the Immigration 
and Nationality Act. 
Approved July 29, 1953. 
July 30,1953 
[H. R. 5141] 
Public Law 163 
CHAPTER 282 
AN ACT 
To dissolve the Reconstruction Finance Corporation, to establish the Small 
Business Administration, and for other purposes. 
Be it enacted hy the Senate and Uoune of Representatives 
of the 
United /States of America in Congress assembled^ 
TITLE I 
RFC Liquidation 
Act. 
Succession. 
62 Stat. 262. 
Loans , termina-
tion. 
62 Stat. 265. 
Procedure. 
61 Stat. 205. 
15 use 608, 609. 
Administr at iv e 
expenses. 
59 Stat. 597. 
31 use 841 note. 
Tin-smelting in-
dustry. 
50 use 98 note. 
SEC. 101. This title may be cited as the "Reconstruction Finance 
Corporation Liquidation Act". 
SEC. 102. (a) The first sentence of section 3 (a) of the Reconstruc-
tion Finance Corporation Act, as amended (15 U. S. C. 603 (a)), is 
amended by striking out "June 30, 1956"' and inserting in lieu thereof 
"June 30, 1954". 
(b) Subsection (f) of section 4 of the Reconstruction Finance Cor-
poration Act, as amended (15 U. S. C. 604 (f)), is amended by striking 
out "June 30,1954" and inserting in lieu thereof "the sixtieth day after 
the date of enactment of the Reconstruction Finance Corporation 
Liquidation Act". 
(c) Except as otherwise provided in this title, the liquidation of 
assets and winding up of aiffairs of the Reconstruction Finance Cor-
poration shall be carried out as expeditiously as possible in accordance 
with the provisions of sections 9 and 10 of the Reconstruction Finance 
Corporation Act. 
(d) The Secretary of the Treasury is authorized to incur and pay 
out of the funds of the Corporation all administrative expenses neces-
sary to carry out the functions vested in him. as a result of the enact-
ment of this title. 
Such expenses shall be limited to and charged 
against amounts made available to the Corporation or to the Secretary 
of the Treasury in appropriation Acts for applicable administrative 
expenses, which amounts shall not include any sums transferred to an 
officer or agency of the Government, other than the Secretary of the 
Treasury. The activities engaged in by the Secretary of the Treasury 
as a result of the enactment of this Act shall continue to be subject to 
the provisions of the Government Corporation Control Act. 
SEC. 103. Section 2 of the joint resolution entitled "Joint resolution 
to strengthen the common defense and to meet industrial needs for 
tin by providing for the maintenance of a domestic tin-smelting in-
industry", approved June 28, 1947 (61 Stat. 190), is amended by 
striking out "the Reconstruction Finance Corporation while that Cor-
poration has succession, and thereafter by". 
67 S T A T . ] 
PUBLIC LAW 163-JULY 30, 1953 
231 
SEC. 104. Effective on the sixtieth day after the date of enactment 
of this Act, all functions, powers, duties, and authority of the Recon-
struction Finance Corporation under section 409 of the Federal Civil 
Defense Act of 1950, together with those assets, funds, contracts, loans, 
liabilities, commitments, authorizations, allocations, personnel, and 
records of the Reconstruction Finance Corporation which the Direc-
tor of the Bureau of the Budget shall determine to be primarily related 
to, and necessary for, the exercise of such functions, powers, duties, 
and authority, are transferred to the Secretary of the Treasury, and 
shall be performed, exercised, and administered by the Secretary in 
accordance with the provisions of such Act. 
SEC. 105. No suit, action, or other proceeding lawfully commenced by 
or against the Reconstruction Finance Corporation shall abate by 
reason of the termination of succession of the Corporation; but the 
court may, on motion or supplemental petition filed at any time within 
twelve months after the date of such termination of succession and 
showing a necessity for a survival of such suit, action, or other proceed-
ing to obtain a settlement of the questions involved, allow the same to 
be maintained by or against the officer or agency of the Government 
performing the functions with respect to which any such suit, action, or 
other proceeding was commenced. 
SEC. 106. (a) Upon the termination of succession of the Reconstruc-
tion Finance Corporation the Administrator of the Reconstruction 
Finance Corporation shall make a full report to the Congress. 
(b) During such period of time as the Secretary of the Treasury 
shall be engaged in liquidating the assets and winding up the affairs of 
the Reconstruction Finance Corporation, pursuant to section 10 of the 
Reconstruction Finance Corporation Act, he shall make quarterly re-
ports to the Congress setting forth the progress of such liquidation 
and winding up of affairs. 
SEC. 107. (a) (1) All functions, powers, duties, and authority of the 
Reconstruction Finance Corporation under the Rubber Act of 1948, as 
amended, the Abaca Production Act of 1950, as amended, and Public 
Law 125, Eightieth Congress, as amended (the tin program), shall be 
transferred by the President not later than June 30,, 1954, in accord-
ance with the provisions of such Acts. 
(2) All functions, powers, duties, and authority of the Reconstruc-
tion Finance Corporation under title III of the Defense Production 
Act of 1950, as amended, shall be transferred by the President not later 
than sixty days after the date of enactment of this Act in accordance 
with the provisions of such Act. 
(b) All assets, funds, contracts, loans, liabilities, commitments, 
authorizations, allocations, personnel, and records of the Reconstruc-
tion Finance Corporation which the Director of the Bureau of the 
Budget shall determine to be primarily related to, and necessary for, 
the exercise of such functions, powers, duties, and authority, shall be 
transferred to the officer or agency of the Government to which such 
functions, powers, duties, and authority are transferred. 
SEC. 108. (a) In order to aid in financing projects under Federal, 
State, or municipal law, the President, t h r o u ^ such officer or agency 
of the Government (other than the Reconstruction Finance Corpora-
tion) as he may designate, may purchase the securities and obligations 
of, or make loans to, (1) States, municipalities and political sub-
divisions of States, (2) public agencies and instrumentalities of one 
or more States, municipalities, and political subdivisions of States, 
and (3) public corporations, boards, and commissions: Provided^ That 
no such purchase or loan shall be made for payment of ordinary 
governmental or nonproject operating expenses as distinguished from 
purchases and loans to aid in financing specific public projects: 
Transfer of func-
tions to Treasury. 
64 Stat. 1257. 
5 0 u s e 
a p p , 
2261. 
Pending 
s u i t s , 
etc. 
R e p o r t to Con-
gress. 
61 Stat. 206. 
15 u s e 609. 
T r a n s f e r s 
of 
powers. 
62 Stat. 101; 64 
Stat. 435; 61 Stat. 
190. 
50 u s e app. 1921 
note; 50 USe 541, 
98 notes. 
64 Stat. 800. 
50 u s e 2 09 1-
2094. 
Loans to States, 
etc. 
nm 
PUBLIC LAW 163-JULY 30, 1953 
[67 
S T A T . 
Restrictions. 
Appropriations. 
T e r m i nation of 
section. 
Provided, however, That the foregoing powers shall be subject to the 
following restrictions and limitations: 
(A) No financial assistance shall be extended pursuant to this 
section unless the financial assistance applied for is not otherwise 
available on reasonable terms and all securities and obligations 
purchased and all loans made under this section shall be of such 
sound value or so secured as reasonably to assure retirement or 
repayment, and such loans may be made either directly or in 
cooperation with banks or other lending institutions through 
agreements to participate or by the purchase of participations or 
otherwise; 
(B) No securities or obligations shall be purchased, and no 
loans shall be made, including renewals or extensions thereof, 
which have maturity dates in excess of forty years. 
(b) The officer or agency designated by the President under this 
section is authorized to obtain money from the Treasury of the United 
States for use in making purchases and loans under this section, not 
to exceed a total of $25,000,000 outstanding at any one time. For this 
purpose appropriations not to exceed $25,000,000 are hereby author-
ized to be made to a revolving fund in the Treasury. Advances shall 
be made to such officer or agency from the revolving fund, to be used 
to carry out this section, when requested by such officer or agency. 
Such officer or agency shall pay into miscellaneous receipts of the 
Treasury at the close of each fiscal year, interest on the amount of 
advances outstanding at a rate determined by the Secretary of the 
Treasury, taking into consideration the current average rate on out-
standing interest-bearing marketable public debt obligations of the 
United States of comparable maturities. 
(c) In carrying out this section, the officer or agency designated by 
the President shall have the powers granted to the Small Business 
Administration and the Administrator by section 205 of this Act, 
(d) This section and all authority conferred thereunder shall ter-
minate at the close of June 30, 1955, except for purposes of liquida-
tion, which shall be completed not to exceed six months after such 
termination. 
The termination of this section shall not affect the 
disbursement of funds under, or the carrying out of, any contract, 
commitment, or other obligation entered into pursuant to this section 
prior to the date of such termination, or the taking of any action 
necessary to preserve or protect the interests of the United States. 
TITLE II 
Small 
Business 
Act of 1953. 
Policy of C o n -
gress. 
SEC. 201. This title may be cited as the "Small Business Act of 
1953". 
SEC. 202. The essence of the American economic system of private 
enterprise is free competition. 
Only through full and free compe-
tition can free markets, free entry into business, and opportunities for 
the expression and growth of personal initiative and individual judg-
ment be assured. 
The preservation and expansion of such competition 
is basic not only to the economic well-being but to the security of this 
Nation. 
Such security and well-being cannot be realized unless the 
actual and potential capacity of small business is encouraged and 
developed. 
It is the declared policy of the Congress that the Govern-
ment should aid, counsel, assist, and protect insofar as is possible the 
interests of small-business concerns in order to preserve free competi-
tive enterprise, to insure that a fair proportion of the total purchases 
and contracts for supplies and services for the Government be placed 
with small-business enterprises, and to maintain and strengthen the 
overall economy of the Nation. 
67 
S T A T . ] 
PUBLIC LAW 163-JULY 30, 1953 
233 
Further, it is the declared policy of the Congress that the Govern-
ment should aid and assist victims of floods or other catastrophes. 
SEC. 203. For the purposes of this title, a small-business concern 
shall be deemed to be one which is independently owned and operated 
and which is not dominant in its field of operation. 
In addition to the 
foregoing criteria the Administration, in making a detailed definition, 
may use these criteria, among others: Number of employees and dollar 
volume of business. 
SEC. 204. (a) In order to carry out the policies of this title there 
is hereby created an agency under the name "Small Business Admin-
istration" (herein referred to as the Administration), which Adminis-
tration shall be under the general direction and supervision of the 
President and shall not be affiliated with or be within any other agency 
or department of the Federal Government. The principal office of the 
Administration shall be located in the District of Columbia, but the 
Administration may establish such branch offices in other places in the 
United States as may be determined by the Administrator of the 
Administration. 
(b) The Administration is authorized to obtain money from the 
Treasury of the United States for use in the performance of the 
powers and duties granted to or imposed upon it by law, not to exceed 
a total of $275,000,000 outstanding at any one time. For this purpose 
appropriations not to exceed $275,000,000 are hereby authorized to be 
made to a revolving fund in the Treasury. Advances shall be made to 
the Administration from the revolving fund when requested by the 
Administration. This revolving fund shall be used for the purposes 
enumerated subsequently in sections 207 (a), (b), (c), and (d). Not to 
exceed an aggregate of $150,000,000 shall be outstanding at any one 
time for the purposes enumerated in section 207 (a). Not to exceed 
an aggregate of $25,000,000 shall be outstanding at any one time for the 
purposes enumerated in section 207 (b). Not to exceed an aggregate of 
$100,000,000 shall be outstanding at any one time for the purposes 
enumerated in sections 207 (c) and (d). The Administration shall pay 
into miscellaneous receipts of the Treasury at the close of each fiscal 
year, interest on the amount of advances outstanding at a rate deter-
mined by the Secretary of the Treasury, taking into consideration the 
current average rate on outstanding interest-bearing marketable public 
debt obligations of the United States of comparable maturities. 
(c) The management of the Administration shall be vested in an 
Administrator who shall be appointed from civilian life by the Presi-
dent, by and with the advice and consent of the Senate, and who shall 
be a person of outstanding qualifications known to be familiar and 
sympathetic with small-business needs and problems. The Adminis-
trator shall receive compensation at the rate of $17,500 per annum. 
The Administrator shall not engage in any other business, vocation, or 
employment than that of serving as Administrator. The Administra-
tor is authorized to appoint three deputy administrators to assist in 
the execution of the functions vested in the Administration. 
Deputy 
administrators shall be paid at the rate of $15,000 per annum. 
(d) There is hereby created the Loan Policy Board of the Small 
Business Administration, which shall consist of the following mem-
bers, all ex officio: The Administrator, as Chairman, the Secretary 
of the Treasury, and the Secretary of Commerce. Either of the said 
Secretaries may designate an officer of his Department, who has been 
appointed by the President by and with the advice and consent of the 
Senate, to act in his stead as a member of the Loan Policy Board with 
respect to any matter or matters. The Loan Policy Board shall estab-
lish general policies (particularly with reference to the public interest 
Definition. 
Small B usiness 
Administration. 
Appropriations. 
Limitations. 
Administrator. 
L o a n 
Board. 
P o l i c y 
PUBLIC LAW 163-JULY 30, 1953 
[67 S T AT. 
Seal, employees, 
etc. 
Powers, etc., of 
Administrator. 
Suits. 
Sale of evidence 
of debt, etc. 
Real property. 
C 1 a i ms against 
third parties. 
involved in the granting and denial of applications for financial assist-
ance by the Administration and with reference to the coordination 
of the functions of the Administration with other activities and poli-
cies of the Government) which shall govern the granting and denial 
of applications for financial assistance by the Administration. 
SEC. 205. (a) The Administration shall have power to adopt, alter, 
and use a seal, which shall be judicially noticed. The Administrator is 
authorized, subject to the civil-service and classification laws, to select, 
employ, appoint, and fix the compensation of such officers, employees, 
attorneys, and agents as shall be necessary to carry out the provisions of 
this title; to define their authority and duties, require bonds of them, 
and fix the penalties thereof. The Administration, with the consent 
of any board, commission, independent establishment, or executive 
department of the Government, may avail itself on a reimbursable 
basis of the use of information, services, facilities, including any field 
service thereof, oflficers, and employees thereof, in carrying out the 
provisions of this title. 
(b) In the performance of, and with respect to, the functions, 
powers, and duties vested in him by this title, the Administrator 
may— 
(1) 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 upon such district court to determine 
such controversies without regard to the amount in controversy: 
Provided, That no attachment, injunction, garnishment, or other 
similar process, mesne or final, shall be issued against the Admin-
istrator or his property; 
(2) under regulations prescribed by him, assign or sell at public 
or private sale, or otherwise dispose of for cash or credit, in his 
discretion and upon such terms and conditions and for such con-
sideration as the Administrator shall determine to be reasonable, 
any evidence of debt, contract, claim, personal property, or secu-
rity assigned to or held by him in connection with the payment 
of loans granted under this title, and to collect or compromise all 
obligations assigned to or held by him and all legal or equitable 
rights accruing to him in connection with the payment of such 
loans until such time as such obligation may be referred to the 
Attorney General for suit or collection; 
(3) deal with, complete, renovate, improve, modernize, insure, 
or rent, or sell for cash or credit upon such terms and conditions 
and for such consideration as the Administrator shall determine 
to be reasonable, any real property conveyed to or otherwise 
acquired by him in connection with the payment of loans granted 
under this title; 
(4) pursue to final collection, by way of compromise or other-
wise, all claims against th|rd parties assigned to the Adminis-
trator in connection with loans made by him. 
This shall include 
authority to obtain deficiency judgments or otherwise in the case 
of mortgages assigned to the Administrator, 
Section 3709 of the 
Kevised Statutes, as amended (41 U. S. C. 5), shall not be construed 
to apply to any contract of hazard insurance or to any purchase 
or contract for services or supplies on account of property ob-
tained by the Administrator as a result of loans made under this 
title if the premium therefor or the amount thereof does not 
exceed $1,000. The power to convey and to execute in the name 
of the Administrator deeds of conveyance, deeds of release, as-
signments and satisfactions of mortgages, and any other written 
instrument relating to real property or any interest therein ac-
quired by the Administrator pursuant to the provisions of this 
67 
S T A T . ] 
PUBLIC LAW 163-JULY 30, 1953 
235 
title may be exercised by the Administrator or by any officer or 
agent appointed by him without the execution of any express 
delegation of power or power of attorney. 
Nothing in this sec-
tion shall be construed to prevent the Administrator from dele-
gating such power by order or by power of attorney, in his dis-
cretion, to any officer or agent he may appoint; 
(5) acquire, in any lawful manner, any property (real, per-
sonal, or mixed, tangible or intangible), whenever deemed neces-
sary or appropriate to the conduct of the activities authorized in 
sections 207 (a) or 207 (b) of this title; 
(6) make such rules and regulations as he deems necessary to 
carry out the authority vested in him by or pursuant to this title; 
and 
(7) in addition to any powere, functions, privileges, and immu-
nities otherwise vested in nim, take any and all actions determined 
by him to be necessary or desirable in making, servicing, compro-
mising, modifying, liquidating, or otherwise dealing with or real-
izing on loans made under the provisions of this title. 
(c) To such extent as he finds necessary to carry out the provisions of 
this title, the Administrator is hereby authorized to procure the tempo-
rary (not in excess of six months) service of experts or consultants or 
organizations thereof, including stenographic reporting services, by 
contract or appointment, and in such cases such service shall be with-
out regard to the civil-service and classification laws, and, except in 
the case of stenographic reporting services by organizations, without 
regard to section 3709, Revised Statutes, as amended (41 U. S. C. 5). 
SEO. 206. (a) All moneys of the Administration not otherwise em-
ployed may be deposited with the Treasurer of the United States 
subject to check by authority of the Administration. 
The Federal 
Reserve banks are authorized and directed to act as depositaries, cus-
todians, and fiscal agents for the Administration in the general per-
formance of its powers conferred by this title. Any banks insured by 
the Federal Deposit Insurance Corporation, when designated by the 
Secretary of the Treasury, shall act as custodians, and financial agents 
for the Administration. Each Federal Reserve bank, when designated 
by the Administrator as fiscal agent for the Administration, shall be 
entitled to be reimbursed for all expenses incurred as such fiscal agent, 
(b) The Administrator shall contribute to the civil-service retire-
ment and disability fund, on the basis of annual billings as determined 
by the Civil Service Commission, for the Government's share of the 
cost of the civil-service retirement system applicable to the employees 
engaged in carrying out the functions financed by the revolving fund 
established by section 204 (b) of this Act. The Administrator shall 
also 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 such fund on account of employees engaged in 
carrying out the functions financed by such revolving fund. 
The 
annual billings shall also include a statement of the fair portion of the 
cost of the administration of the respective funds, which shall be paid 
by the Administrator into the Treasury as miscellaneous receipts. 
SEC. 207. The Administration is empowered— 
(a) to make loans to enable small-business concerns to finance 
plant construction, conversion, or expansion, including the acqui-
sition of land; or to finance the acquisition of equipment, facili-
ties, machinery, supplies, or materials; or to supply such 
concerns with working capital to be used in the manufacture of 
articles, equipment, supplies, or materials for war, defense, or 
essential civilian production or as may be necessary to insure a 
well-balanced national economy; and such loans may be made or 
Prope r ty acqui-
sition. 
Rules and regu-
lations. 
Action on loans. 
Consultants, etc. 
Deposits. 
Retirement a n d 
c o m p e n s a t i o n 
funds, c o n t r i b u -
tions. 
SBA powers. 
Loans. 
236 
PUBLIC LAW 163-JULY 30, 1953 
[67 
S T A T . 
Restrictions. 
Floods, etc. 
Government con-
tracts. 
Subscontracts. 
T e c h n i c a l and 
managerial aids. 
effected either directly or in cooperation with banks or other lend-
ing institutions through agreements to participate on an immedi-
ate or deferred basis: Provided^ however^ That the foregoing 
powers shall be subject to the following restrictions and limita-
tions : 
(1) No financial assistance shall be extended pursuant to 
(a) above unless the financial assistance applied for is not 
otherwise available on reasonable terms and all loans made 
shall be of such sound value or so secured as reasonably to 
assure repayment; no immediate participation may be pur-
chased unless it is shown that a deferred participation is not 
available; and no loan may be made unless it is shown that 
a participation is not available; 
(2) No loan shall be extended pursuant to (a) above if the 
total amount outstanding and committed (by participation or 
otherwise) to the borrower from the revolving fund estab-
lished by this title would exceed $150,000, and no loan, includ-
ing renewals or extensions thereof, may be made for a period 
or periods exceeding ten years, except that any loan made 
for the purpose of constructing industrial facilities may have 
a maturity of ten years plus such additional period as is esti-
mated may be required to complete such construction; 
(3) In agreements to participate in loans on a deferred 
basis, such participations by the Administration shall not be 
in excess of 90 per centum of the balance of the loan outstand-
ing at the time of disbursement; 
(b) to make such loans as the Administration may determine to 
be necessary or appropriate because of floods or other catastrophes: 
Provided, That no such loan including renewals and extensions 
thereof may be made for a period or periods exceeding ten years 
except that where such loan is for acquisition or construction 
(including acquisition of site therefor) of housing for the personal 
occupancy of the borrower, it may be made for a period not to 
exceed twenty years; 
(c) to enter into contracts with the United States Government 
and any department, agency, or officer thereof having procure-
ment powers obligating the Administration to furnish articles, 
equipment, supplies, or materials to the Government; 
(d) to arrange for the performance of such contracts by nego-
tiating or otherwise letting subcontracts to small-business con-
cerns or others for the manufacture, supply, or assembly of such 
articles, equipment, supplies, or materials, or parts thereof, or 
servicing or processing in connection therewith, or such manage-
ment services as may be necessary to enable the Administration 
to perform such contracts; and 
(e) to provide technical and managerial aids to small-business 
concerns, by advising and counseling on matters in connection 
with Government procurement and on policies, principles, and 
practices of good management, including but not limited to cost 
accounting, methods of financing, business insurance, accident con-
trol, wage incentives and methods engineering, by cooperating and 
advising with voluntary business, professional, educational, and 
other nonprofit organizations, associations, and institutions and 
with other Federal and State agencies, by maintaining a clearing-
house for information concerning the managing, financing, and 
operation of small-business enterprises, by disseminating such 
information, and by such other activities as are deemed appro-
priate by the Administration. 
67 
S T A T . ] 
PUBLIC LAW 163-JULY 30, 1953 
237 
Certification. 
False statement. 
Embezzle me nt, 
etc. 
SEC. 208. In any case in which the Administration certifies to any 
officer of the Government having procurement powers that the Admin-
istration is competent to perform any specific Government pro-
curement contract to be let by any such officer, such officer shall be 
authorized in his discretion to let such procurement contract to the 
Administration upon such terms and conditions as may be agreed 
upon between the Administration and the procurement officer. 
SEC. 209. (a) Whoever makes any statement knowing it to be false, 
or whoever willfully overvalues any security, for the purpose of obtain-
ing for himself or for any applicant any loan, or extension thereof by 
renewal, deferment of action, or otherwise, or the acceptance, release, 
or substitution of security therefor, or for the purpose of influencing 
in any way the action of the Administration, or for the purpose of 
obtaining money, property, or anything of value, under this title, 
shall be punished by a fine of not more than $5,000 or by imprisonment 
for not more than two years, or both. 
(b) Whoever, being connected in any capacity with the Adminis-
tration (A) embezzles, abstracts, purloins, or willfully misapplies any 
moneys, funds, securities, or other things of value, whether belonging 
to it or pledged or otherwise entrusted to it, or (B) with intent to 
defraud the Administration or any other body politic or corporate, 
or any individual, or to deceive any officer, auditor, or examiner of 
the Administration makes any false entry in any book, report, or 
statement of or to the Administration, or, without being duly author-
ized, draws any order or issues, puts forth, or assigns any note, deben-
ture, bond, or other obligation, or draft, bill of exchange, mortgage, 
judgment, or decree thereof, or (C) with intent to defraud partici-
pates, shares, receives directly or indirectly any money, profit, prop-
erty, or benefit through any transaction, loan, commission, contract, 
or any other act of the Administration, or (D) gives any unauthorized 
information concerning any future action or plan of the Administra-
tion which might affect the value of securities, or, having such knowl-
edge, invests or speculates, directly or indirectly, in the securities or 
property of any company or corporation receiving loans or other 
assistance from the Administration shall be punished by a fine of 
not more than $10,000 or by imprisonment for not more than five 
years, or both. 
SEC. 210. It shall be the duty of the Administration and it is hereby 
empowered, whenever it determines such action is necessary— 
(a) to make a complete inventory of all productive facilities of 
small-business concerns which can be used for war or defense pro-
duction, or to arrange for such inventory to be made by any other 
governmental agency which has the facilities. 
In making any 
such inventory, the appropriate agencies in the several States may 
be requested to furnish an inventory of the productive facilities 
of small-business concerns in each respective State if such an 
inventory is available or in prospect; and 
(b) to coordinate and to ascertain the means by which the pro-
ductive capacity of small-business concerns can be most effectively 
utilized for war or defense production. 
SEC. 211. When directed by the President, it shall be the duty of the 
Administration to consult and cooperate with governmental depart- agencies, etc 
ments and agencies in the issuance of all orders or in the formulation 
of policy or policies in any way affecting small-business concerns. 
When directed by the President all such governmental departments 
or agencies are required, before issuing such orders or announcing such 
policy or policies, to consult and cooperate with the Administration 
in order that the interests of small-business enterprises may be recog-
nized, protected, and preserved. 
Defense produc-
tion, i n v e n t o r y , 
etc. 
C o n s u l t a t i o n 
w i t h Government 
27000 O - 53 - 18 
238 
PUBLIC LAW 163-JULY 30, 1953 
[67 S T AT. 
Pro c u r e m e n t , 
subcontracts, etc. 
P o w e r s of Ad-
ministration. 
Finality of 
tification. 
Awards and cort-
tracts. 
Reports. 
SEC. 212. The Administration shall have power, and it is hereby 
directed, whenever it determines such action is necessary— 
(a) to consult and cooperate with officers of the Government 
having procurement powers, in order to utilize the potential pro-
ductive capacity of plants operated by small-business concerns; 
(b) to obtain information as to methods and practices which 
Government prime contractors utilize in letting subcontracts and 
to take action to encourage the letting of subcontracts by prime 
contractors to small-business concerns at prices and on conditions 
and terms which are fair and equitable; 
(c) to determine within any industry the concerns, firms, per-
sons, corporations, partnerships, cooperatives, or other business 
enterprises, which are to be designated "small-business concerns" 
for the purpose of effectuating the provisions of this title; 
' 
(d) to certify to Government procurement officers with respect 
to the competency, as to capacity and credit, of any small-business 
concern or group of such concerns to perform a specific Govern-
ment procurement contract; 
(e) to obtain from any Federal department, establishment, or 
agency engaged in procurement or in the financing of procure-
ment or production such reports concerning the letting of con-
tracts, and subcontracts and making of loans to business concerns 
as it may deem pertinent in carrying out its functions under this 
title; 
(f) to obtain from suppliers of materials information pertain-
ing to the method of filling orders and the bases for allocating 
their supply, whenever it appears that any small business is unable 
to obtain materials from its normal sources for war or defense 
production; 
(g) to make studies and recommendations to the appropriate 
Federal agencies to insure a fair and equitable share of materials, 
supplies, and equipment to small-business concerns to effectuate 
war or defense programs; 
(h) to consult and cooperate with all Government agencies for 
the purpose of insuring that small-business concerns shall receive 
fair and reasonable treatment from said agencies; and 
(i) to establish such advisory boards and committees wholly 
representative of small business as may be found necessary to 
achieve the purposes of this title. 
SEC. 213. In any case in which a small-business concern or group of 
such concerns has been certified by or under the authority of the Ad-
ministration to be a competent Government contractor with respect 
to capacity and credit as to a specific Government procurement con-
tract, the officers of the Government having procurement powers are 
directed to accept such certification as conclusive, and are authorized 
to let such Government procurement contract to such concern or group 
of concerns without requiring it to meet any other requirement with 
respect to capacity and credit. 
SEC. 214. To effectuate the purposes of this title, small-business con-
cerns within the meaning of this title shall receive any award or con-
tract or any part thereof as to which it is determined by the Admin-
istration and the contracting procurement agency (A) to be in the 
interest of mobilizing the Nation's full productive capacity, or (B) 
to be in the interest of war or national defense programs. 
SEC. 215. The Administration shall make a report every six months 
of operations under this title to the President, the President of the 
Senate, and the Speaker of the House of Representatives. Such report 
shall include the names of the business concerns to whom contracts are 
let and for whom financing is arranged by the Administration, to-
67 
S T A T . ] 
PUBLIC LAW 163-JULY 30, 1953 
239 
gether with the amounts involved, and such report shall include such 
other information and such comments and recommendations as the 
Administration may deem appropriate. 
SEC. 216. The Administration is hereby empowered to make studies 
of the effect of price, credit, and other controls imposed under war or 
defense programs and wherever it finds that these controls discrimi-
nate against or impose undue hardship upon small business, to make 
recommendations to the appropriate Federal agency for the adjust-
ment of controls to the needs of small business. 
SEC. 217. (a) The President is authorized to consult with repre-
sentatives of small-business concerns with a view to encouraging the 
making by such persons with the approval of the President of volun-
tary agreements and programs to further the objectives of this title. 
(b) No act or omission to act pursuant to this title which occurs 
while this title is in effect, if requested by the President pursuant to 
a voluntary agreement or program approved under subsection (a) 
of this section and found by the President to be in the public interest 
as contributing to the national defense, shall be construed to be 
within the prohibition of the antitrust laws or the Federal Trade 
Commission Act of the United States. A copy of each such request 
intended to be within the coverage of this section, and any modifica-
tion or withdrawal thereof, shall be furnished to the Attorney General 
and the Chairman of the P ederal Trade Commission when made, and 
it shall be published in the Federal Register unless publication thereof 
would, in the opinion of the President, endanger the national security, 
(c) The authority granted in subsection (b) of this section shall be 
delegated only (1) to an official who shall for the purpose of such 
delegation be required to be appointed by the President by and with 
the advice and consent of the Senate, and (2) upon the condition that 
such official consult with the Attorney General and with the Chair-
man of the Federal Trade Commission not less than ten days before 
making any request or finding thereunder, and (3) upon the condi-
tion that such official obtain the approval of the Attorney General 
to any request thereunder before making the request. 
(d) Upon withdrawal of any request or finding made hereunder 
the provisions of this section shall not apply to any subsequent act 
or omission to act by reason of such finding or request. 
SEC. 218. (a) The President may transfer to the Administration 
any functions, powers, and duties of any department or agency which 
relate primarily to small-business problems. In connection with any 
such transfer, the President may provide for appropriate transfers 
of records, property, necessary personnel, and unexpended balances 
of appropriations and other funds available to the department or 
agency from which the transfer is made. 
(b) The President may also provide for such transfers of records, 
property, and personnel from the Small Defense Plants Administra-
tion, during the period of its liquidation, as he considers appropriate to 
assist the Small Business Administration in carrying out its functions 
under this title. 
SEC. 219. No loan shall be made or equipment, facilities, or services 
furnished by the Administration under this title to any business enter-
prise unless the owners, partners, or officers of such business enterprise 
(1) certify to the Administration the hames of any attorneys, agents, or 
other persons engaged by or on behalf of such business enterprise for 
the purpose of expediting applications made to the Administration for 
assistance of any sort, and the fees paid or to be paid to any such per-
sons; (2) execute an agreement binding any such business enterprise 
for a period of two years after any assistance is rendered by the 
Administration to such business enterprise, to refrain from employing. 
Studies of price 
controls, etc. 
R e c o tn me nda-' 
tions. 
Voluntary agree-
ments, etc. 
A n t i - t r u s t ex-
emption. 
38 Stat. 717. 
15 u s e 58. 
Limitation. 
Nonappl ic ab il it 
y. 
Transfer of func-
tions, etc. 
Small D e f e n s e 
P l a n t s Adminis-
tration. 
L o a n 
ments. 
240 
PUBLIC lAW 164-JULY 31, 1953 
[67 S 
T A T . 
Termination. 
Appropriation. 
Separability. 
tendering any office or employment to, or retaining for professional 
services, any person who, on the date such assistance or any part thereof 
was rendered, or within one year prior thereto, shall have served as 
an officer, attorney, agent, or employee of the Administration occupy-
ing a position or engaging in activities which the Administration shall 
have determined involve discretion with respect to the granting of 
assistance under this title; and (3) furnish the names of lending insti-
tutions to which such business enterprise has applied for loans together 
with dates, amounts, terms, and proof of refusal. 
SEC. 220. To the fullest extent the Administration deems practicable, 
it shall make a fair charge for the use of Government-owned property 
and make and let contracts on a basis that will result in a recovery of 
the direct costs incurred by the Administration. 
SEC. 221. (a) This title and all authority conferred thereunder shall 
terminate at the close of June 80,1955, but the President may continue 
the Administration for purposes of liquidation for not to exceed six 
months after such termination. 
(b) The termination of this title shall not affect the disbursement of 
funds under, or the carrying out of, any contract, commitment, or 
other obligation entered into pursuant to tliis title prior to the date of 
such termination, or the taking of any action necessary to preserve 
or protect the interests of the United States. 
SEC. 222. There are hereby authorized to be appropriated such sums 
as may be necessary and appropriate for the carrying out of the provi-
sions and purposes of this Act. 
SEC. 223. If any provision of this Act, or the application thereof to 
any person or circumstances, is held invalid, the remainder of this Act, 
and the application of such provision to other persons or circum-
stances, shall not be affected thereby. 
Approved July 30, 1953. 
Public Law 164 
CHAPTER 283 
J"iX 3i,_i953 
AN ACT 
To amend the Atomic Energy Act of 1846, as amended. 
ily 31, 195 
[S. 2399] 
60 Stat. 757. 
42 u s e 1802. 
Division of Mili-
t a r y Application, 
etc. 
42 u s e 1810. 
Control of infor-
mation. 
FBI in V e s tiga-
tions, etc. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemhled^ That section 2 (a) 
(4) (B) of the Atomic Energy Act of 1946, as amended, is amended 
to read as follows: 
"(B) a Division of Military Application and such other program 
divisions (not to exceed ten in number) as the Commission may deter-
mine to be necessary to the discharge of its responsibilities. 
Each 
division shall be under the direction of a Director who shall be 
appointed by the Commission and shall be compensated at a rate deter-
mined by the Commission, but not in excess of $16,000 per annum. 
The 
Director of the Division of Military Application shall be a member of 
the Armed Forces. 
The Commission shall require each such division 
to exercise such of the Commission's powers as the Commission may 
determine." 
SEC. 2. Section 10 (b) (5) (B) (iv) of the Atomic Energy Act of 
1946, as amended, is renumbered as section 10 (b) (5) (B) (vii). 
SEC. 3. Section 10 (b) (5) (B) of the Atomic Energy Act of 1946, as 
amended, is amended by adding the following subsection: 
"(iv) In the event .an investigation made pursuant to sections 
10 (b) (5) (B) (i) and (ii) develops an^^ data reflecting that the 
individual who is the subject of the investigation is of questionable