Small Business Amendments
PL 93-386 (S.3331), enacted 08/23/1974

742 
August 23, 1974 
[S.3331] 
Small Business 
Amendments of 
1974. 
15 u s e 631 
note. 
15 u s e 631. 
Infra. 
Post, p. 744. 
Revolving 
funds. 
15 u s e 633. 
15 u s e 636. 
15 u s e 637. 
15 u s e 681, 
695. 
15 u s e 633. 
15 u s e 636. 
PUBLIC LAW 93-386-AUG. 23, 1974 
[88 STAT. 
Public Law 93-386 
AN ACT 
To clarify the authority of the Small Business Administration, to increase the 
authority of the Small Business Administration, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That this Act may 
be cited as the "Small Business Amendments of 1974". 
SEC. 2. (a) The Small Business Act is amended— 
(1) by redesignating subsection (b) of section 2 as subsec-
tion (c) and by adding after subsection (a) of that section the 
following new subsection: 
"(b) The assistance programs authorized bv sections 7(i) and 7(j) 
of this Act are to be utilized to assist in the establishment, preservation, 
and strengthening of small business concerns and improve the mana-
gerial skills employed in such enterprises, with special attention to 
small business concerns (1) located in urban or rural areas with high 
proportions of unemployed or low-income individuals: or (2) owned 
by low-income individuals; and to mobilize for these objectives private 
as well as public managerial skills and resources."; 
(2) by striking out paragraphs (1) and (2) of section 4(c), 
and inserting in lieu thereof the following: 
'' (c) (1) There are hereby established in the Treasury the following 
revolving funds: (A) a disaster loan fund which shall be available 
for financing functions performed under sections 7(b)(1), 7(b)(2), 
7(b) (4), 7(b) (5), 7(b) (6), 7(b) (7), 7(b) (8), 7(c) (2), and 7(g) of 
this Act, including administrative expenses in connection with such 
functions; and (B) a business loan and investment fund which shall 
be available for financing functions performed under sections 7(a), 
7(b) (3), 7(e), 7(h), 7(i), and 8(a) of this Act, and titles I I I and V 
of the Small Business Investment Act of 1958, including adminis-
trative expenses in connection with such functions. 
"(2) All repayments of loans and debentures, payments of interest 
and other receipts arising out of transactions heretofore or hereafter 
entered into by the Administration (A) pursuant to sections 7(b) (1), 
7(b) (2), 7(b) (4), 7(b) (5), 7(b) (6), 7(b) (7), 7(b) (8), and 7(c) (2) 
of this Act shall be paid into a disaster loan fund; and (B) pursuant 
to sections 7(a), 7(b) (3), 7(e), 7(h), 7(i), and 8(a) of this Act, and 
titles I I I and V of the Small Business Investment Act of 1958, shall 
be paid into the business loan and investment fund."; 
(3) by striking out paragraph (4) of section 4(c), and insert-
ing in lieu thereof the following: 
•'(4) The total amount of loans, guarantees, and other obligations 
or commitments, heretofore or hereafter entered into by the Adminis-
tration, which are outstanding at any one timo (A) under sections 
7(a), 7(b) (3), 7(e), 7(h), 7(i), and 8(a) of this Act, shall not exceed 
$6,000,000,000; (B) under title III of the Small Business Investment 
Act of 1958, shall not exceed $725,000,000; (C) under title V of the 
Small Business Investment Act of 1958, shall not exceed $525,000,000; 
and (D) under section 7 (i) of this Act, shall not exceed $450,000,000."; 
and 
(4) by adding at the end of section 7 the following three new 
subsections: 
"(i) (1) The Administration also is empowered to make, participate 
(on an immediate basis) in, or guarantee loans, repayable in not more 
than fifteen years, to any small business concern, or to any qualified 
person seeking to establish such a concern, when it determines that 
88 STAT.] 
PUBLIC LAW 93-386-AUG. 23, 1974 
743 
such loans will further the policies established in section 2(b) of this 
Act, with particular emphasis on the preservation or establishment 
of small business concerns located in urban or rural areas with high 
proportions of unemployed or low-income individuals, or owned by 
low-income individuals: Provided, however, That no such loans shall 
be made, participated in, or guaranteed if the total of such Federal 
assistance to a single borrower outstanding at any one time would 
exceed $50,000. The Administration may defer payments on the prin-
cipal of such loans for a grace period and use such other methods as 
it deems necessary and appropriate to assure the successful establish-
ment and operation of such concern. The Administration may, in its 
discretion, as a condition of such financial assistance, require that 
the borrower take steps to improve his management skills by partici-
pating in a management training program approved by the Adminis-
tration : Provided, however, That any management training program 
so approved must be of sufficient scope and duration to provide reason-
able opportunity for the individuals served to develop entrepreneurial 
and managerial self-sufficiency. 
"(2) The Administration shall encourage, as far as possible, the 
participation of the private business community in the program of 
assistance to such concerns, and shall seek to stimulate new private 
lending activities to such concerns through the use of the loan guaran-
tees, participations in loans, and pooling arrangements authorized by 
this subsection. 
"(3) To insure an equitable distribution between urban and rural 
areas for loans between $3,500 and $50,000 made under this subsection, 
the Administration is authorized to use the agencies and agreements 
and delegations developed under title III of the Economic Oppor-
tunity Act of 1964, as amended, as it shall determine necessary. 
"(4) The Administration shall provide for the continuing evalua-
tion of programs under this subsection, including full information on 
the location, income characteristics, and types of businesses and indi-
viduals assisted, and on new private lending activity stimulated, and 
the results of such evaluation together with recommendations shall be 
included in the report required by section 10(a) of this Act. 
"(5) Loans made pursuant to this subsection (including immediate 
participation in and guarantees of such loans) shall have such terms 
and conditions as the Administration shall determine, subject to the 
following limitations— 
"(A) there is reasonable assurance of repayment of the loan; 
"(B) the financial assistance is not otherwise available on 
reasonable terms from private sources or other Federal, State, or 
local programs; 
"(C) the amount of the loan, together with other funds avail-
able, is adequate to assure completion of the project or achieve-
ment of the purposes for which the loan is made; 
"(D) the loan bears interest at a rate not less than (i) a rate 
determined by the Secretary of the Treasury, taking into con-
sideration the average market yield on outstanding Treasury 
obligations of comparable maturity, plus (ii) such additional 
charge, if any, toward covering other costs of the program as the 
Administration may determine to be consistent with its purposes: 
Provided, 
however^ That the rate of interest charged on loans 
made in redevelopment areas designated under the Public Works 
and Economic Development Act of 1965 (42 U.S.C. 3108 et seq.) 
shall not exceed the rate currently applicable to new loans made 
under section 201 of that Act (42 U.S.C. 3142); and 
742. 
Limitation. 
Deferred pay-
ments. 
Management 
training program. 
Private busi-
nesses, partici-
pation. 
42 u s e 2841, 
15 u s e 639. 
Loans, 
tions. 
42 u s e 3121 
note. 
42 u s e 3141. 
744 
PUBLIC LAW 93-386-AUG. 23, 1974 
[88 STAT. 
Urban area 
small business, 
allocation. 
Relocations, 
funds, restriction. 
Technical or 
management a s -
sistance projects, 
financial assist-
Ante, 
p. 742. 
"(E) fees not in excess of amounts necessary to cover adminis-
trative expenses and probable losses may be required on loan 
guarantees. 
•'(6) The Administration shall take such steps as may be necessary 
to insure that, in any fiscal year, at least 50 per centum of the amounts 
loaned or guaranteed pursuant to this subsection are allotted to small 
business concerns located in urban areas identified by the Administra-
tion as having high concentrations of unemployed or low-income 
individuals or to small business concerns owned by low-income indi-
viduals. The Administration shall define the meaning of low income 
as it applies to owners of small business concerns eligible to be assisted 
under this subsection. 
"(7) Xo financial assistance shall be extended pursuant to this sub-
section where the Administration determines that the assistance will 
be used in relocating establishments from one area to another if such 
relocation would result in an increase in unemployment in the area of 
original location. 
''(j)(l) The Administration is authorized to provide 
financial 
assistance to public or private organizations to pay all or part of the 
cost of projects designed to provide technical or management assistance 
to individuals or enterprises eligible for assistance under subsection 
7(i) of this Act, with special attention to small business located in 
urban areas of high concentration of unemployed or low-income indi-
viduals or oAvned by low-income individuals. 
•'(2) Financial assistance under this subsection may be provided 
for proiects, including without limitation— 
(A) planning and research, including feasibility studies and 
market research; 
''(B) the identification and development of new business 
opportunities; 
"(C) the furnishing of centralized services with regard to 
public services and Government programs including programs 
authorized under subsection 7(i); 
*'(D) the establishment and strengthening of business service 
agencies, including trade associations and cooperatives; 
''(E) the encouragement of the placement of subcontracts by 
major business with small business concerns located in urban areas 
of high concentration of unemployed or low-income individuals 
or owned by low-income individuals, including the provision of 
incentives and assistance to such major businesses so that they 
will aid in the training and upgrading of potential subcontractors 
or other small business concerns; and 
"(F) the furnishing of business counseling, management train-
ing, and legal and other related services, with special emphasis on 
the development of management training programs using the 
resources of the business community, including the development 
of management training opportunities in existing businesses, and 
with emphasis in all cases upon providing management training 
of sufficient scope and duration to develop entrepreneurial and 
managerial self-sufficiency on the part of the individuals served. 
"(3) The Administration shall give preference to projects which 
promote the ownership, participation in ownership, or management of 
small business concerns by residents of urban areas of high concentra-
tion of unemployed or low-income individuals, and to projects which 
are planned and carried out with the participation of 
local 
businessmen. 
"(4) The financial assistance authorized by this subsection includes 
assistance advanced by grant, agreement, or contract, but does not 
include the procurement of plant or equipment, or goods or services. 
88 STAT. ] 
PUBLIC LAW 93-386-AUG. 23, 1974 
745 
"(5) The Administration is authorized to make payments under 
ayments. 
grants and contracts entered into under this subsection in lump sum 
or installments, and in advance or by way of reimbursement, and in the 
case of grants, with necessary adjustments on account of overpayments 
or underpayments. 
"(6) To the extent feasible, services under this subsection shall be 
provided in a location which is easily accessible to the individuals and 
small business concerns served. 
"(7) The Administration shall provide for an independent and ^fj°^''^"' ^''^^'" 
continuing evaluation of programs under this subsection, including 
full information on, and analysis of, the character and impact of 
managerial assistance provided, the location, income characteristics, 
and types of businesses and individuals assisted, and the extent to 
which private resources and skills have been involved in these pro-
grams. Such evaluation together with any recommendations deemed 
advisable by the Administration shall be included in the report 
required by section 10(a) of this Act. 
^^ "^^ ^^^' 
"(8) The Administration shall take such steps as may be necessary 
and appropriate, in coordination and cooperation with the heads of 
other Federal departments and agencies, so that contracts, subcon-
tracts, and deposits made by the Federal Government or in connection 
with programs aided with Federal funds are placed in such a way as 
to further the purposes of this subsection and of subsection 7(i) of 
this Act. The Administration shall provide for the continuing evalua- 
Ante, p. 742. 
tion of programs under this subsection and the results of such evalua-
tion together with recommendations shall be included in the report 
required by section 10(a) of this Act. 
"(k) In carrying out its functions under subsections 7(i) and 7(j) 
of this Act, the Administration is authorized— 
'^"'^' ^' '
^
'
*
'
*
* 
"(1) to utilize, with their consent, the services and facilities 
of Federal agencies without reimbursement, and, with the consent 
of any State or political subdivision of a State, accept and utilize 
the services and facilities of such State or subdivision without 
reimbursement; 
"(2) to accept, in the name of the Administration, and employ 
or dispose of m furtherance of the purposes of this Act, any 
money or property, real, personal, or mixed, tangible, or intan-
gible, received by gift, devise, bequest, or otherwise; 
" (3) to accept voluntary and uncompensated services, notwith-
standing the provisions of section 3679 (b) of the Revised Statutes 
(31 U.S.C. 655(b)); and 
31 use ees. 
" (4) to employ experts and consultants or organizations thereof 
as authorized by section 15 of the Administrative Expenses Act 
of 1946 (5 U.S.C. 55a), except that no individual may be employed 
under the authority of this subsection for more than one hundred 
days in any fiscal year; to compensate individuals so employed 
at rates not in excess of $100 per diem, including traveltime; and 
to allow them, while away from their homes or regular places of 
business, travel expenses (including per diem in lieu of subsist-
ence) as authorized by section 5 of such Act (5 U.S.C. 73b-2) 
s use 5703. 
for persons in the Government service employed intermittently, 
while so employed: Provided, however, That contracts for such 
employment may be renewed annually." 
(b) Title IV of the Economic Opportunity Act of 1964 is hereby 
f2^PJs^c*29oi. 
repealed; and all references to such title in the remainder of that Act 2907. 
are repealed. 
SEC. 3. The Small Business Act is further amended— 
(1) by amending section 5(b) by striking out "and" following 
^^ use 634. 
paragraph (8), by striking out the period at the end of para-
5 use 3109. 
powers 
746 
PUBLIC LAW 93-386-AUG. 23, 1974 
[88 STAT. 
graph (9) and inserting in lieu thereof a semicolon and by adding 
at the end of paragraph (9) the following new paragraphs: 
"(10) upon purchase by the Administration of any deferred 
5 use 636. 
participation entered into under section 7 of this Act, continue 
to charge a rate of interest not to exceed that initially charged 
by the participating institution on the amount so purchased for 
the remaining term of the indebtedness; and 
Investigations. 
" ( H ) make such investigations as he deems necessary to deter-
mine whether a recipient of or participant in any assistance under 
this Act or any other person has engaged or is about to engage 
in any acts or practices which constitute or will constitute a 
violation of any provision of this Act, or of any rule or regu-
lation under this Act, or of any order issued under this Act. 
fifin^?'"^"'' 
'^^^ Administration shall permit any person to file with it a 
statement in writing, under oath or otherwise as the Adminis-
tration shall determine, as to all the facts and circumstances 
.w^r^^^^^*'"^ 
concerning the matter to be investigated. For the purpose of any 
investigation, the Administration is empowered to administer 
oaths and affirmations, subpena witnesses, compel their attend-
ance, take evidence, and require the production of any books, 
papers, and documents which are relevant to the inquiry. Such 
attendance of witnesses and the production of any such records 
may be required from any place in the United States. In case 
of contumacy by, or refusal to obey a subpena issued to, any 
person, including a recipient or participant, the Administration 
may invoke the aid of any court of the United States within the 
jurisdiction of which such investigation or proceeding is carried 
on, or where such person resides or carries on business, in requir-
ing the attendance and testimony of witnesses and the production 
of books, papers, and documents; and such court may issue an 
order requiring such person to appear before the Administration, 
there to produce records, if so ordered, or to give testimony touch-
ing the matter under investigation. Any failure to obey such 
order of the court may be punished by such court as a contempt 
thereof. All process in any such case may be served in the judicial 
district whereof such person is an inhabitant or wherever he may 
be found."; and 
(2) by striking out the third sentence in paragraph (2) of 
15 use 636. 
section 7(h) and inserting in lieu thereof: "The Administration's 
share of any loan made under this subsection shall bear interest 
at the rate of 3 per centum per annum." 
15 use 639. 
gj,^^ ^ Section 10 of the Small Business Act is amended by adding 
at the end thereof the following new subsection: 
Report t°^con- 
.i ^^^ ^hc Administration shall transmit, not later than December 31 
mutees?^ ° * 
of cacli year, to the Committee on P inking, Housing and Urban Affairs 
of the Senate and the Committee on Bankino; and Currency of the 
House of Representatives a sealed report with respect to— 
"(1) complaints alleging illegal conduct by employees of the 
Administration which were received or acted upon by the Admin-
istration during the preceding fiscal year; and 
"(2) investigations undertaken by the Administration, includ-
ing external and internal audits and security and investigation 
reports.". 
SEC. 5. Section 18 of the Small Business Act is amended by adding 
at the end thereof the following new sentence: "If loan applications 
are being refused or loans denied by such other department or agency 
responsible for such work or activity due to administratiA^e withhold-
ing from obligation or withholding from apportionment, or due to 
Service of 
process. 
15 use 647. 
88 
STAT.] 
PUBLIC LAW 93-386-AUG. 23, 1974 
747 
administratively declared moratorium, then, for purposes of this sec-
tion, no duplication shall be deemed to have occurred.". 
SEC. 6. (a) The Small.Business Investment Act of 1958 is amended— 
(1) by striking out in the table of contents in section 101 all 
references to title IV and section numbers therein and inserting 
in lieu thereof the following: 
"TITLE I V - ^ U A R A N T E E S 
"PAKT A—'LEASE GXTARANTEES 
"Sec. 401. Authority of the Administration. 
"Sec. 402. Powers. 
"Sec. 403. Fund. 
"PART B—SURETY BOND OUARANTEES 
"Sec. 410. Definitions. 
"Sec. 411. Authority of the Administration. 
"Sec. 412. Fund."; 
(2) by striking out section 403 and inserting in lieu thereof 
is use 694. 
the following: 
"FUND 
"SEC. 403. There is hereby created within the Treasury a separate 
fund for guarantees which shall be available to the Administrator 
without fiscal year limitations as a revolving fund for the purposes of 
this part. There are authorized to be appropriated to the fund from 
time to time such amounts not to exceed $10,000,000 to provide capital 
for the fund. All amounts received by the Administrator, including 
any moneys, property, or assets derived by him from his operations in 
connection with this part, shall be deposited in the fund. AH expenses 
and payments pursuant to operations of the Administrator under ttiis 
part shall be paid from the fund. From time to time, and at least at 
the close of each fiscal year, the Administrator shall pay from the 
fund into Treasury as miscellaneous receipts interest at a rate deter-
mined by the Secretary of the Treasury on the cumulativ^e amount of 
appropriations available as capital to the fund, less the average undis-
bursed cash balance in the fund during the year. The rate of such 
interest shall be determined by the Secretary of the Treasury, and 
shall not be less than a rate determined by taking into consideration 
the average market yield during the month preceding each fiscal year 
on outstanding marketable obligations of the United States with 
remaining periods to maturity comparable to the average maturity 
of guarantees from the fund. Moneys in the fund not needed for the 
payment of current operating expenses or for the payment of claims 
arising under this part may be invested in bonds or other obligations 
of, or bonds or other obligations guaranteed as to principal and interest 
by, the United States; except that moneys provided as capital for 
the fund shall not be so invested."; 
,i 
(3) by striking out "$500,000" in section 411 and inserting in 
lieu thereof "$1,000,000"; and 
(4) by adding after section 411 the following new section: 
Establishment. 
Appropriation. 
Interest rate. 
15 u s e 694b. 
'FUND 
"SEC. 412. There is hereby created within the Treasury a separate 
fund for guarantees which shall be available to the Administrator 
without fiscal year limitation as a revolving fund for the purposes of 
this part. There are authorized to be appropriated to the fund from 
time to time such amounts not to exceed $35,000,000 to provide capital 
for the fund. All amounts received by the Administrator, including 
Establishment. 
15 u s e 694c. 
Appropriation. 
748 
PUBLIC LAW 93-386-AUG. 23, 1974 
[88 STAT. 
Interest rate. 
Allocated funds, 
IS u s e 694 
note. 
Ante, p. 747. 
Transfer of 
funds. 
IS u s e 633. 
SBA Adminis-
trators. 
Associate 
Administrator for 
Minority Small 
Business. 
Interest rate. 
15 u s e 636. 
any moneys, property, or assets derived by him from his operations in 
connection with this part, shall be deposited in the fund. All expenses 
and payments pursuant to operations of the Administrator under this 
part shall be paid from the fund. From time to time, and at least at 
the close of each fiscal year, the Administrator shall pay from the 
fund into Treasury as miscellaneous receipts interest at a rate deter-
mined by the Secretary of the Treasury on the cumulative amount 
of appropriations available as capital to the fund, less the average 
undisbursed cash balance in the fund during the year. The rate of 
such interest shall be determined by the Secretary of the Treasury, 
and shall not be less than a rate determined by taking into considera-
tion the average market yield during the month preceding each fiscal 
year on outstanding marketable obligations of the United States with 
remaining periods to maturity comparable to the average maturity of 
guarantees from the fund. Moneys in the fund not needed for the 
payment of current operating expenses or for the payment of claims 
arising under this part may be invested in bonds or other obligations 
of, or bonds or other obligations guaranteed as to principal and 
interest by, the United States; except that moneys provided as capital 
for the fund shall not be so invested." 
(b) Unexpected balances of capital previously transferred to the 
fund pursuant to section 403 of the Small Business Investment Act 
of 1958 (15 U.S.C. 694), as in effect prior to the effective date of this 
Act, shall be allocated, together with related assets and liabilities, to 
the funds established by paragraphs (2) and (4) of subsection (a) of 
this section in such amounts as the Administrator shall determine. 
In addition, the Administrator is authorized to transfer to the fund 
established by paragraph (4) of subsection (a) of this section not to 
exceed $2,000,000 from the fund established under section 4(c) (1) (B) 
of the Small Business Act: Provided, That section 4(c) (6) and the 
last sentence of section 4(c) (5) shall not apply to any amounts so 
transferred. 
SEC. 7. Section 4(b) of the Small Business Act is amended— 
(1) by striking out "three" in the third sentence and inserting 
in lieu thereof "four"; and 
(2) by inserting after the third sentence the following new 
sentence: "One of the Associate Administrators shall be desig-
nated at the time of his appointment as the Associate Adminis-
trator for ISIinority Small Business and shall be responsible to 
the Administrator for the formulation of policy relating to the 
Administration's programs which provide assistance to minority 
small business concerns and in the review of the Administration's 
execution of such programs in light of such policy." 
SEC. 8. Sections 7(a)'(4) (B) and 7(a) (5) (B) of the Small Business 
Act are each amended to read as follows: "the rate of interest for the 
Administration's share of any such loan shall be the average annual 
interest rate on all interest-bearing obligations of the United States 
then forming a part of the public debt as computed at the end of the 
fiscal year next preceding the date of the loan and adjusted to the 
nearest one-eighth of 1 per centum plus one-quarter of 1 per centum 
per annum; and". 
SEC. 9. (a) Section 7(b) of the Small Business Act is amended by 
striking out the period at the end of paragraph (7) and inserting in 
lieu thereof "; and" and by adding immediately after paragraph (7) 
the following new paragraph: 
"(8) to make such loans (either directly or in cooperation with 
banks or other lending institutions through agreements to par-
ticipate on an immediate or deferred basis) as the Administration 
may determine to be necessary or appropriate to assist, or refinance 
88 STAT.] 
PUBLIC LAW 93-386-AUG. 23, 1974 
749 
the existing indebtedness of, any small business concern seriously 
and adversely affected by a shortage of fuel, electrical energy, or 
energy-producing resources, or by a shortage of raw or processed 
materials resulting from such shortages, if the Administration 
determines that such concern has suffered or is likely to suffer 
substantial 
economic injury 
without 
assistance under 
this 
paragraph." 
(b) The first paragraph following the numbered paragraphs of 
section 7(b) of the Small Business Act is amended by striking out 
"or (7)," immediately following "(6)," and inserting in lieu thereof 
"(7), or (8),". 
SEC. 10. Section 5 of the Small Business Act is amended by adding 
at the end thereof the following new subsection: 
"(e) The Administrator shall designate an individual within the 
Administration to be known as the Chief Counsel for Advocacy and 
to perform the following duties: 
"(1) serve as a focal point for the receipt of complaints, criti-
cisms, and suggestions concerning the policies and activities of the 
Administration and any other Federal agency which affects small 
businesses; 
"(2) counsel small businesses on how to resolve questions and 
problems concerning the relationship of the small business to the 
Federal Government; 
" (3) develop proposals for changes in the policies and activities 
of any agency of the Federal Government which will better fulfill 
the purposes of the Small Business Act and communicate such 
proposals to the appropriate Federal agencies ; 
" (4) represent the views and interests of small businesses before 
other Federal agencies whose policies and activities may affect 
small businesses; and 
" (5) enlist the cooperation and assistance of public and private 
agencies, businesses, and other organizations in disseminating 
information about the programs and services provided by the 
Federal Government which are of benefit to small businesses, and 
information on how small businesses can participate in or make 
use of such programs and services.". 
SEC. 11. (a) The first sentence of section 411(c) of the Small Busi-
ness Investment Act of 1958 is amended by inserting "administer this 
program on a prudent and economically justifiable basis and shall" 
immediately after "shall". 
(b) Section 411 (c) of the Small Business Investment Act of 1958 
is amended by adding at the end thereof the following: "Within 30 
days after the date of enactment of this sentence and at monthly inter-
vals thereafter, the Administration shall publish the cost of the pro-
gram to the Administration for the month immediately preceding the 
date of publication. The Administration shall conduct a study of the 
program in order to determine what must be done to make the program 
economically sound. Within one year after the date of enactment of 
this sentence, the Administration shall transmit a report to Congress 
containing a detailed statement of the findings and conclusions of the 
study, together with its recommendations for such legislative and 
administrative actions as it deems appropriate.". 
SEC. 12. Section 7(a) of the Small Business Act is amended by add-
ing at the end thereof the following new paragraph: 
"(8) During the fiscal year ending June 30, 1975, the Admin-
istrator shall make direct loans under this subsection in an aggre-
gate amount of not less than $400,000,000.". 
15 u s e 636. 
Chief Counssel 
for Advocacy, 
IS u s e 634. 
Duties. 
15 u s e 631 
note. 
15 u s e 694b, 
Program costs, 
publication. 
Study. 
Report to 
Congress. 
15 u s e 636. 
750 
PUBLIC LAW 93-387-AUG. 24, 1974 
[88 STAT. 
GAO audit, sub-
mittal to Con-
gress. 
15 u s e 633 
note. 
SEC. 13. The General Accounting Office is directed to conduct a full-
scale audit of the Small Business Administration, including all field 
offices. This audit shall be submitted to the House and Senate not later 
than six months from the date of enactment of this Act. 
Approved August 23, 1974. 
August 24, 1974 
[S.3919] 
Public Law 93-387 
AN ACT 
To authorize the establishment of a Council on AVage and Price Stability. 
Council on 
Wage and Price 
Stability Act. 
12 u s e 1904 
note. 
Council on Wage 
and Price Sta-
bility. 
Establishment. 
12 u s e 1904 
note. 
5 u s e 5315 
note. 
5 u s e 5332 
note. 
5 u s e 101 et 
seq. 
Experts and 
consultants. 
Duties. 
12 u s e 1904 
note. 
Be it enacted by the Senate and House of Representatives 
of the 
United /States of America in Congress assembled^ That this Act may 
be cited as the "Council on Wage and Price Stability Act". 
SEC. 2. (a) The President is authorized to establish, within the 
Executive Office of the President, a Council on Wage and Price Sta-
bility (hereinafter referred to as the "Council"). 
(b) The Council shall consist of eight members appointed by the 
President and four adviser-members also appointed by the President. 
The Chairman of the Council shall be designated by the President. 
(c) There shall be a Director of the Council who shall be appointed 
by the President. The Director shall be compensated at the rate pre-
scribed for level IV of the Executive Schedule by section 5315 of title 
5, United States Code. The Director of the Council shall perform such 
functions as the President or the Chairman of the Council may 
prescribe. The Deputy Director shall perform such functions as the 
Chairman or the Director of the Council may prescribe. 
(d) The Director of the Council may employ and fix the compen-
sation of such officers and employees, including attorneys, as are neces-
sary to perform the functions of the Council at rates not to exceed the 
highest rate for grade 15 of the General Schedule under section 5332 
of title 5, United States Code. Except that the Director, with the 
approval of the Chairman may, without regard to the provisions of 
title 5, United States Code, relating to appointments in the competitive 
service, appoint and fix the compensation of not to exceed five positions 
at the rates provided for grades 16, 17, and 18 of such General Sched-
ule, to carry out the functions of the Council. 
(e) The Director of the Council may employ experts, expert wit-
nesses, and consultants in accordance with the provisions of section 
3109 of title 5, United States Code, and compensate them at rates 
not in excess of the maximum daily rate prescribed for grade 18 of 
the General Schedule under section 5332 of title 5, United States Code. 
(f) The Director of the Council may, with their consent, utilize the 
services, personnel, equipment, and facilities of Federal, State, 
regional, and local public agencies and instrumentalities, with or with-
out reimbursement therefor, and may transfer funds made available 
pursuant to this Act to Federal, State, regional, and local public 
agencies and instrumentalities as reimbursement for utilization of 
such services, personnel, equipment, and facilities. 
SEC. 3. (a) The Council shall— 
(1) review and analyze industrial capacity, demand, supply, 
and the effect of economic concentration and anticompetitive prac-
ticeSj and supply in various sectors of the economy, working with 
the industrial groups concerned and appropriate governmental 
agencies to encourage price restraint; 
(2) work with labor and management in the various sectors of 
the economy having special economic problems, as well as with 
appropriate government agencies, to improve the structure of