An Act to amend the Small Business Act of 1953.
PL 84-268 (S.2127), enacted 08/09/1955

69 S T A T . ] 
PUBLIC LAW 268-AUG. 9, 1955 
Public Law 268 
CHAPTER 628 
AN ACT 
To amend the Small Business Act of 1953. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 204 
(a) of the Small Business Act of 1953 is hereby amended by inserting 
after the word "branch" the following: "and regional". 
SEC. 2. Section 207 of such Act is further amended by inserting 
after subsection (e) a new subsection as follows: 
"(f) To further extend the maturity of or renew any loan made pur-
suant to subsection (a) or (b) of this section, beyond the periods stated 
therein, or any loan transferred to the Administration pursuant to 
Reorganization Plan Numbered 2 of 1954, for additional periods not 
to exceed ten years, if such extension or renewal will aid in the orderly 
liquidation of such loan.". 
SEC. 3. (a) The last sentence of section 204 (b) of the Small Busi-
ness Act of 1953 is amended to read as follows: "The Administration 
shall pay into miscellaneous receipts of the Treasury at the close 
of each fiscal year, interest on the net amount of the cash disburse-
ments from such advances at a rate determined 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.". 
(b) Section 204 of the Small Business Act of 1953 is further amended 
by inserting the following new subsections (e) and (f), as follows: 
" (e) As used in this Act, the term 'United States' includes the several 
States, the Territories and possessions of the United States, the Com-
monwealth of Puerto Rico, and the District of Columbia. 
"(f) The Administrator may establish regional offices of the Ad-
ministration in the Territories of Alaska, Hawaii, and in the Common-
w^ealth of Puerto Rico." 
SEC. 4. (a) Section 205 (a) of the Small Business Act of 1953 is 
amended (1) by striking out "require bonds of them, and fix the 
penalties thereof" and inserting in lieu thereof "to provide bonds for 
them in such amounts as the Administrator shall determine, and to 
pay the costs of qualification of certain of them as notaries public", 
and (2) by inserting at the end thereof the following new sentence: 
"Subject to the standards and procedures under section 505 of the 
Classification Act of 1949, as amended, not to exceed fifteen positions 
in the Small Business Administration may be placed in grades 16, 17, 
and 18 of the General Schedule established by that Act, and any such 
positions shall be additional to the number authorized by such section." 
(b) Section 205 (b) (7) of the Small Business Act of 1953 is 
amended (1) by inserting immediately following "all actions" the 
following: ", including the procurement of the services of attorneys 
by contract," and (2) by changing the period at the end thereof to a 
colon and adding the following: ''''Provided^ That no attorneys' serv-
ices shall be procured by contract in any office where an attorney or 
attorneys are or can be economically employed full time to render 
such services." 
(c) Section 205 (c) of the Small Business Act of 1953 is amended 
by adding at the end thereof the following new sentence: "Any indi-
vidual so employed may be compensated at a rate not in excess of 
$50 per diem, and, while such individual is away from his home or 
regular place of business, he may be allowed transportation and not 
to exceed $15 per diem in lieu of subsistence and other expenses." 
SEC. 5. Section 207 of the Small Business Act of 1953 is amended 
to read as follows: 
547 
August 9,1955 
[S. 2127] 
Small business. 
67 Stat. 233. 
15 u s e 633. 
15 u s e 636. 
Loans. 
68 Stat. 1280. 
15 u s e 609 note. 
15 u s e 633. 
Alaska, Hawaii, 
and Puerto Rico. 
IS u s e 634. 
Ante, p. 179. 
15 u s e 634. 
15 u s e 636. 
548 
PUBLIC LAW 268-AUG. 9, 1955 
[69 STAT. 
con^cti^ ^**"* 
"SEC. 207. (a) The Administration is empowered to make loans to 
enable small-business concerns to finance plant construction, conver-
sion, or expansion, including the acquisition of land; or to finance 
the acquisition of equipment, facilities, machinery, supplies, or ma-
terials; 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 effected either directly or in cooperation wdth banks or other 
lending institutions through agreements to participate on an imme-
limitetion"!'"* ""'^ diate or deferred basis: Provided^ however, That the foregoing powers 
shall be subject to the following restrictions and limitations: 
"(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 purchased 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 borrow-er from the revolving fund established 
by this title would exceed $250,000, and no loan, including renewals 
or extensions thereof, may be made for a period or periods exceed-
ing ten years, except that any loan made for the purpose of con-
structing industrial facilities may have a maturity of ten years 
plus such additional period as is estimated may be required to 
complete such construction, and any such loan shall bear interest 
at the rate prevailing in the area where the money loaned is to 
be used but shall not exceed 6 per centum per annum: 
Provided, 
That the foregoing limitation of $250,000 shall not apply to any 
loan extended to any corporation formed and capitalized by a 
group of small business concerns with resources provided by them 
for the purpose of establishing facilities in and through such 
corporation to produce or secure raw materials or supplies: Pro-
vided further, That for any such corporation the limit of any 
loan extended or made as provided for in this section shall be 
$250,000 multiplied by the number of separate small businesses 
which have formed and capitalized a corporation as hereinbefore 
provided for in this section, and if a loan to such corporation is 
for the purpose of constructing facilities, then the loan may have 
a maturity not to exceed twenty years plus such additional time 
as is required to complete such construction and at an interest 
rate of not less than 3 nor more than 5 per centum per annum: 
And provided further, That no act or omission to act pursuant 
to this section, if found and approved by the Small Business 
Administration as contributing to the needs of small business, 
shall be construed to be within the prohibitions of the antitrust 
IS u^^'sV.^" 
\si\ys or the Federal Trade Commission Act of the United States. 
A copy of the statement of any such finding and approval intended 
to be within the coverage of this section, and any modification or 
withdrawal thereof, shall be furnished to the Attorney General 
and the Chairman of the Federal Trade Commission when made, 
^|>ubiic auon in 
^^^ ^^ shall be published in the Federal Register. The authority 
granted in the last preceding proviso shall be delegated only 
(1) to an official w4io shall for the purpose of such delegation be 
appointed by the President by and with the advice and consent of 
the Senate, unless otherwise required to be appointed, (2) upon 
the condition that such official consult with the Attorney General 
69 STAT.] 
PUBLIC LAW 268-AUG. 9, 1955 
549 
and with the Chairman of the Federal Trade Commission not less 
than ten days before making and stating any such finding and 
approval as is authorized in this subsection (a), and (3) upon 
the condition that such official obtain a statement in writing from 
the Attorney General that he, mindful of the antitrust laws and 
the public interest, concurs in the finding and approval made and 
granted by the Small Business Administration. 
Upon with-
drawal of any finding or approval made hereunder the provisions 
of this section shall not apply to any subsequent act or omission 
to act by reason of such finding or approval. The Attorney Gen-
eral is directed to make, or request the Federal Trade Commission 
surveys by FTC. 
to make for him, surveys for the purpose of determining any 
factors which may tend to eliminate competition, create or 
strengthen monopolies, injure small business, or otherwise pro-
mote undue concentration of economic power in the course of the 
administration of this Act. The Attorney General shall submit 
to the Congress and the President within ninety days after 
approval of this Act, and at such times thereafter as he deems 
desirable, reports setting forth the results of such surveys and 
including such recommendations as he may deem desirable. 
"(3) In agreements to participate in loans on a deferred basis 
under this subsection or under subsection (b) (1) of this section, 
such participation by the Administration shall not be in excess of 
90 per centum of the balance of the loan outstanding at the time 
of disbursement. 
'(b) The Administration also is empowered— 
"(1) to make such loans (either directly or in cooperation 
with banks or other lending institutions through agreements 
to participate on an inunediate or deferred basis) as the Admin-
istration may determine to be necessary or appropriate because 
of floods or other catastrophes, including necessary or appro-
priate loans to any small-business concern located in an area 
where a drought is occurring, if the Administration determines 
that the small-business concern has suffered a substantial eco-
nomic injury as a result of such drought, and the President has 
determined under the Act entitled 'An Act to authorize Fed-
eral assistance to States and local governments in major dis-
asters, and for other purposes', approved September 30, 1950, as 
amended (42 U. S. C., sees. 1855-1855g), that such drought is 
a major disaster, or the Secretary of Agriculture has found 
under the Act entitled 'An Act to abolish the Regional Agricul-
tural Credit Corporation of Washington, District of Columbia, 
and transfer its functions to the Secretary of Agriculture, to 
authorize the Secretary of Agriculture to make disaster loans, 
and for other purposes', approved April 6, 1949, as amended 
(12 U. S. C, sees. 1148a-l-1148a-3), that such drought con- 
63 stat. 43. 
stitutes a production or economic disaster in such area: 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 (includ-
ing 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 and at an interest rate not to exceed 3 per 
centum per annum; 
"(2) to enter into contracts with 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; 
64 Stat. 1109. 
550 
PUBLIC LAW 268-AUG. 9, 1955 
[69 S T A T . 
" (3) 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 
" (4) 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 wtih voluntary business, professional, educational, 
and other nonprofit organizations, associations, and institutions 
and with other Federal and State agencies, by maintaining a 
clearinghouse for information concerning the managing, financ-
ing, and operation of small-business enterprises, by disseminating 
such information, and by such other activities as are deemed 
appropriate by the Administration." 
15 use 640. 
SEC. 6. Section 211 of the Small Business Act of 1953 is amended 
to read as follows: 
"SEC. 211. When directed by the President, it shall be the duty of 
the Administration to consult and cooperate with governmental de-
partments and agencies in the issuance of all orders or in the formula-
tion of policy or policies in any w^ay 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 Administra-
tion in order that the interests of small-business enterprises may be 
mS^tteport?.'^^''^' rccoguizcd, protected, and preserved: Provided 
further, 
That, for 
the purposes of aiding in carrying out the national policy to insure 
that a fair proportion of the total purchases and contracts for supplies 
and services for the Government be placed with small-business enter-
prises, and to maintain and strengthen the overall economy of the 
Nation, the Department of Defense shall make a monthly report to 
the President, the President of the Senate, and the Speaker of the 
House of Representatives not less than forty-five days after the close 
of the month, showing the amount of funds appropriated to the 
Department of Defense which have been expended, obligated, or con-
tracted to be spent with small-business concerns and the amount of 
such funds expended, obligated, or contracted to be spent with firms 
other than small business in the same fields of operation; and such 
monthly reports shall show separately the funds expended, obligated, 
or contracted to be spent for basic and applied scientific research and 
development." 
15 use 641. 
SJJC. 7. (a) Section 212 (c) of the Small Business Act of 1953 is 
amended by adding immediately before the semicolon at the end 
thereof the following language: "and to carry out this purpose the 
Administrator, when requested to do so, shall issue in response to each 
such request an appropriate certificate certifying an individual con-
cern as a 'small-business concern' in accordance with the criteria 
expressed in this Act. Any such certificate shall be subject to revoca-
tion when the concern covered thereby ceases to be a 'small-business 
concern'". 
(b) Section 212 (g) of the Small Business Act of 1953 is amended 
by inserting after the words "to insure" the following language: "that 
a fair proportion of the total purchases and contracts for supplies 
and services for the Government be placed with small-business enter-
69 STAT.] 
PUBLIC LAW 268-AUG. 9, 1955 
551 
prises, to insure that a fair proportion of Government contracts for 
research and development be placed with small-business concerns, 
and to insure". 
SEC. 8. Section 213 of the Small Business Act of 1953 is amended by 
^^ "^^ ^'*^-
adding " ( a ) " immediately following "SEC. 213." and by inserting an 
additional subsection, as follows: 
"(b) Offices of the Government having procurement or lending 
powers, or engaging in the disposal of Federal property or allocating 
materials or supplies, or promulgating regulations affecting the dis-
tribution of materials or supplies shall accept as conclusive the Ad-
ministration's determination as to which enterprises are to be desig-
nated 'small-business concerns', as authorized and directed under sec-
tion 212 (c) of this title." 
SEC. 9. Section 214 of the Small Business Act of 1953 is amended 
^^ "^^ ^'*^-
(1) by inserting before "mobilizing" the words "maintaining or". 
SEC. 10. Section 215 of the Small Business Act of 1953 is amended 
f^^^c'^i 
by inserting at the end thereof the following new sentence: "The Ad-
ministration shall make a report to the President, the President of the 
Senate, and the Speaker of the House of Representatives, to the Sen-
ate Select Committee on Small Business and to the House Select Com-
mittee To Conduct a Study and Investigation of the Problems of 
Small Business on December 31, 1955, and at the end of each six 
months thereafter, showing as accurately as possible for each such 
period the amount of funds appropriated to it that it has expended in 
the conduct of each of its principal activities such as lending, procure-
ment, contracting, and providing technical and managerial aids." 
SEC. 11. Section 215 of the Small Business Act of 1953 is further ords.*°""°"°^'"" 
amended by adding at the end thereof the following sentence: "The 
Administration shall retain all correspondence, records of inquiries, 
memoranda, reports, books, and records, including memoranda as to all 
investigations conducted by or for the Administration, for a period of 
at least one year from the date of each thereof, and shall at all times 
keep the same available for inspection and examination by the Senate 
Select Committee on Small Business, and the House Select Commit-
tee To Conduct a Study and Investigation of the Problems of Small 
Business, or their duly authorized representatives.". 
SEC. 12. (a) Section 218 (a) of the Small Business Act of 1953 is 
is use 647. 
amended by striking out " ( a ) " immediately following "SEC. 218". 
(b) Section 218 (b) of the Small Business Act of 1953 is hereby 
repealed. 
SEC. 13. Section 221 (a) of the Small Business Act of 1953 is 
is use eso. 
amended by striking out the figures "1955" and inserting in lieu 
thereof "1957". 
SEC. 14. The Small Business Act of 1953 is amended by adding at 
the end thereof two new sections which shall read as follows: 
"SEC. 224. All laws and parts of laws inconsistent with this Act are 
hereby repealed to the extent of such inconsistency. 
"SEC. 225. The Administration shall not duplicate the work or activ-
ity of any other department or agency of the Federal Government 
and nothing contained in this Act shall be construed to authorize any 
such duplication unless such work or activity is expressly provided 
for in this Act." 
SEC. 15. Section 3 of the Armed Services Procurement Act of 1947 
62 stat. 22. 
is amended by adding at the end thereof the following new para- 
'^^ "^^ ^^^' 
graph: 
" (c) All bids or invitations for bids shall contain in their specifica-
tions all the necessary language and material required and shall be so 
552 
PUBLIC LAW 269-AUGt^9, 1955 
[69 ST A T . 
Effective date. 
descriptive both in its language and attachments thereto in order to 
permit full and free competition. 
Any bid or invitation to bid which 
shall not carry the necessary descriptive language and attachments 
thereto, or if such attachments are not available or accessible to all 
competent, reliable bidders, such bid or invitation to bid shall be in-
valid and any award or awards made to any bidder in such case shall 
be invalidated and rejected." 
SEC. 16. This Act shall take effect as of the close of July 31, 1955. 
Approved August 9, 1955. 
August 9,1955 
[S. 1210] 
Public Law 269 
CHAPTER 629 
AN ACT 
To amend the Public Buildings Act of 1949 to provide a five-year limitation on 
the period of leases of space for Federal agencies in the District of Columbia. 
63 Stat. 199. 
40 u s e 37a. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That section 407 
of the Public Buildings Act of 1949 is amended by striking out ", not 
in excess of one year," and by inserting in lieu thereof "not in excess of 
five years,". 
Approved August 9, 1955. 
AugMst 9, 1955 
[S. 1621] 
Public Law 270 
CHAPTER 630 
AN ACT 
To authorize adjustment by the Secretary of Agriculture of certain obligations 
of settlers on projects developed or subject to the Act of August 11, 1939, as 
amended, and for other purposes. 
6 0 S t a t . 
1065, 
1067, 1070. 
53 Stat. 1418. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemhled, That the provisions 
of sections 41 (g), 43, and 51 of the Bankhead-Jones Farm Tenant 
Act, as amended (7 U. S. C. 1015 (g), 1017, and 1025), are hereby 
extended to apply on the obligations of settlers on the Angostura 
project in South Dakota developed under the Act of August 11, 1939, 
as amended (16 U. S. C. 590y-z). 
Approved August 9, 1955. 
August 9,1955 
[S. 1577] 
Public Law 271 
CHAPTER 631 
AN ACT 
To amend the Acts granting the consent of Congress to the State of Connecticut, 
acting by and through any agency or commission thereof, to construct, main-
tain, and operate toll bridges across the Connecticut River. 
C o nn ec ti c u t 
River. • 
Toll bridges. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That section 2 of the 
Act approved August 7, 1939 (53 Stat. 1234), entitled "An Act grant-
ing the consent of Congress to the State of Connecticut, acting by and 
through any agency or commission thereof, to construct, maintain, and 
operate a toll bridge across the Connecticut River at or near Hartford, 
Connecticut", and section 2 of the Act approved April 24, 1946 (60 
Stat. 122), entitled "An Act granting the consent of Congress to the 
State of Connecticut, acting by and through any agency or commission