An Act to amend section 4(c) of the Small Business Act, and for other purposes
PL 89-409 (S.2729), enacted 05/02/1966

132 
April 27, 1966 
[S. 1938] 
25 u s e 415. 
PUBLIC LAW 89-408-APRIL 27, 1966 
[80 STAT. 
Public Law 89-408 
AN ACT 
To amend the Indian Long-Term Leasing Act. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 1 of 
the Act of August 9, 1955 (69 Stat. 539), as amended, is hereby 
amended as follows: After the words "Fort Mojave Reservation," 
insert the words "the Pyramid Lake Reservation,". 
Approved April 27, 1966. 
May 2, 19 66 
[S. 27 29] 
Public Law 89-409 
AN ACT 
To amend section 4(c) of the Small Business Act, and for other purposes. 
Small Business 
Act, amendment. 
79 Stat. 1294. 
15 u s e 633. 
15 u s e 636. 
15 u s e 637. 
15 USC681, 695. 
42 u s e 2901. 
Appropriations, 
unexpended bal-
ances. 
Loans, etc., 
limitations. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That section 4(c) 
of the Small Business Act is amended by striking out "$1,841,000,000" 
and "$1,375,000,000" and inserting in lieu thereof "$1,966,000,000" 
and "$1,500,000,000", respectively. 
SEC. 2. Effective on July 1,1966, section 4(c) of the Small Business 
Act is amended to read as follows: 
" (c) (1) There are herebj 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), and 7(c) (2) 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), and 8(a) of this Act, 
titles I I I and V of the Small Business Investment Act of 1958, and 
title IV of the Economic Opportunity Act of 1964, including admin-
istrative 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), and 7(c)(2) of this Act shall be paid into the 
disaster loan fund; and (B) pursuant to sections 7(a), 7(b) (3), 7(e), 
and 8(a) of this Act, titles I I I and V of the Small Business Invest-
ment Act of 1958, and title IV of the Economic Opportunity Act of 
1964, shall be paid into the business loan and investment fund. 
" (3) Unexpended balances of appropriations made to the fund pur-
suant to this subsection, as in effect immediately prior to the effective 
date of this paragraph, shall be allocated, together with related assets 
and liabilities, to the funds established by paragraph (1) in such 
amounts as the Administrator shall determine. In addition to any 
sums so allocated, appropriations are hereby authorized to be made 
to such funds, as capital thereof, in such amounts as may be necessary 
to carry out the functions of the Administration, which appropriations 
shall remain available until expended. 
"(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 time (A) under sections 
7(a), 7(b) (3), 7(e), and 8(a) of this Act, and title IV of the Eco-
nomic Opportunity Act of 1964, shall not exceed $1,400,000,000; (B) 
gress. 
59 Stat. 598. 
80 STAT. ] 
PUBLIC LAW 89-409-MAY 2, 1966 
133 
under title I I I of the Small Business Investment Act of 1958, shall 
not exceed $400,000,000; (C) under title V of the Small Business 
Investment Act of 1958, shall not exceed $200,000,000; and (D) under 
title IV of the Economic Opportunity Act of 1964 shall not exceed 
$100,000,000. 
" (5) The Administration shall submit to the Committees on Appro- 
Reports to con-
priations and the Committees on Banking and Currency of the Senate 
and House of Eepresentatives, as soon as possible after the beginning 
of each calendar quarter, a full and complete report on the status of 
each of the funds established by paragraph (1). 
If at the close of 
the preceding calendar quarter the aggregate amount outstanding or 
committed by the Administration in carrying out its functions under 
any of the sections or titles referred to in paragraph (4) exceeded 75 
per centum of the total amount authorized to be outstanding or com-
mitted under such sections or titles, the Administration's report shall 
include its recommendations for such additional authority as it deems 
appropriate. 
Business-type budgets for each of the funds established 
by paragraph (1) shall be prepared, transmitted to the Congress, con-
sidered, and enacted in the manner prescribed by law (sections 102, 
103, and 104 of the Government Corporation Control Act (31 U.S.C. 
847-849)) for wholly-owned Government corporations. 
"(6) The Administration shall pay into miscellaneous receipts of 
the Treasury, following the close of each fiscal year, interest on the 
outstanding cash disbursements from each of the funds established by 
paragraph (1) at rates determined by the Secretary of the Treasury, 
taking into consideration the current average yields on outstanding 
interest-bearing marketable public debt obligations of the United 
States of comparable maturities as calculated for the month of June 
preceding such fiscal year." 
SEC. 3. (a) Section 7 of the Small Business Act is amended by 
^^ ^^^ ^^^• 
adding at the end thereof the following new subsection: 
"(e) The Administration also is empowered to make loans (either 
'^'^^'^^ adjust-
directly or in cooperation with banks or other lenders through agree- "^"^ 
ments to participate on an immediate or deferred basis) to assist any 
firm to adjust to changed economic conditions resulting from increased 
competition from imported articles, but only if (1) an adjustment 
proposal of such firm has been certified by the Secretary of Commerce 
pursuant to the Trade Expansion Act oi 1962, (2) the Secretary has 
^ ^*g^' j^oj 
referred such proposal to the Administration under that Act and the note. 
loan would provide part or all of the financial assistance necessary to 
carry out such proposal, and (3) the Secretary's certification is in 
force at the time the Administration makes the loan. With respect to 
loans made under this subsection the Administration shall apply the 
provisions of sections 314, 315, 316, 318, 319, and 320 of the Trade 
Expansion Act of 1962 as though such loans had been made under 
(b) Section 2 of Public Law 87-550, approved July 25, 1962 (76 
fg^usc 5373 
Stat. 220), is hereby repealed. Any unexpended balances of appro-
priations heretofore appropriated for the purposes of such section are 
hereby transferred to the business loan and investment fund estab-
lished by section 4(c) (1) of the Small Business Act. 
^"'^' ^- "2-
(c) This section shall take effect on July 1, 1966. 
Effective date. 
Approved May 2, 1966.