An Act to amend the Small Business Act to increase the amount available for regular business loans thereunder
PL 87-305 (H.R.8762), enacted 09/26/1961

666 
PUBLIC LAW 87-305-SEPT. 26, 1961 
[75 ST A T . 
Public Law 87-305 
September 26, 1961 
[H. R. 8762] 
AN ACT 
To amend the Small Business Act. 
Small 
Business 
Act Amendments of 
1961. 
15 u s e 63 1 note. 
15 u s e 633. 
Ante, p. 167. 
Revolving fund. 
15 u s e 636,637. 
Ante, p. 167. 
72 Stat. 689. 
15 u s e 661 note. 
72 Stat. 385. 
15 u s e 634. 
S a f e t y deposit 
boxes, rentals. 
R e p o r t i n g re-
quirements. 
72 Stat. 393. 
15 u s e 639. 
Report. 
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 Act Amendments of 1961". 
SEC. 2. As used in this Act, unless otherwise indicated, references 
to "the Act" are to the Small Business Act, approved July 18, 1958 
(72 Stat. 384), as amended. 
SEC. 3. Section 4(c) of the Act is amended to read as follows: 
"(c) 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 $1,125,000,000 outstanding at any one time. For this purpose appro-
priations not to exceed $1,125,000,000 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 7(a), 7(b), and 8(a) of this Act, 
and in the exercise of the functions of the Administration under the 
Small Business Investment Act of 1958. Not to exceed an aggregate 
of $725,000,000 shall be outstanding at any One time for the purposes 
enumerated in sections 7(a) and 8(a) of this Act. 
Not to exceed an 
aggregate of $150,000,000 shall be outstanding at any one time for 
the purposes enumerated in section 7(b). 
Not to exceed an aggre-
gate of $250,000,000 shall be outstanding at any one time for the 
exercise of the functions of the Administration under the Small 
Business Investment Act of 1958. 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 disbursements from such 
advances at a rate determined by the Secretary of the Treasurj^, taking 
into consideration the current average rate on outstanding interest-
bearing marketable public debt obligations of the United States of 
comparable maturities." 
SEC. 4. Section 5 of the Act is amended by adding at the end thereof 
a new subsection as follows: 
"(d) Section 3648 of the Revised Statutes (31 U.S.C. 529) shall not 
apply to prepayments of rentals made by the Administration on safety 
deposit boxes used by the Administration for the safeguarding of 
instruments held as security for loans or for the safeguarding of other 
documents." 
SEC. 5. (a) Section 10 of the Act is amended— 
(1) by striking out subsection (a) and inserting in lieu thereof 
the following: 
"(a) The Administration shall make a report on December 31 of 
each year of operations under this Act 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 Admin-
istration, together with the amounts involved, and such report shall 
include information on the progress of the Administration in liquidat-
ing the assets and winding up the affairs of the Reconstruction Finance 
Corporation, and such other information and such comments and 
i-ecommendations as the Administration may deem appropriate. 
The 
requirement contained in this subsection with respect to the inclusion 
of information respecting the progress of the Administration in 
liquidating the assets and w^inding up the affairs of the Reconstruction 
fr5 S T A T . ] 
PUBLIC LAW 87-305-SEPT. 26, 1961 
667 
Finance Corporation in such report shall be in lieu of any require-
ment, pursuant to section 106(b) of the Reconstruction Finance Cor-
poration Liquidation Act, and Reorganization Plan Numbered 1 of 
1957, that progress reports with respect to such liquidation or wind-
ing up of affairs by the Administration be made to the Congress on 
a quarterly basis."; 
(2) by striking out "June 30 and" from subsection (b) ; and 
(3) by striking out subsection (c) and inserting in lieu thereof 
the following: , 
"(c) (1) The Attorney General is directed to make, or direct the 
Federal Trade Commission to make for him, surveys of any activity 
of the Government which may affect small business, for the purpose 
of determining any factors which may tend to eliminate competition, 
create or strengthen monopolies, promote undue concentration of 
economic power, or otherwise injure small business. 
"(2) The Attorney General shall submit to the Congress and the 
President, at such times as he deems desirable, but not less than once 
every year, reports setting forth the results of such surveys and includ-
ing such recommendations as he may deem desirable." 
(b) The second and third sentences of subsection (e) of section 
708 of the Defense Production Act of 1950 are amended to read as 
follows: "Such surveys shall include studies of the voluntary agree-
ments and programs authorized by this section. The Attorney Gen-
eral shall submit to the Congress and the President at least once 
every three months reports setting forth the results of such studies 
of voluntary agreements and programs authorized by this section." 
SEC. 6. The fifth sentence of section 2(a) of the Act is amended by 
inserting after "contracts", each place the term appears, the following: 
"or subcontracts". 
SEC. 7. Section 8 of the Act is amended by adding at the end thereof 
a new subsection as follows: 
"(d)(1) Within ninety days after the effective date of this sub-
section, the Administrator, the Secretary of Defense, and the Admin-
istrator of General Services shall cooperatively develop a small busi-
ness subcontracting program which shall contain such provisions as 
may be appropriate to (A) enable small business concerns to be con-
sidered fairly as subcontractors and suppliers to contractors perform-
nig work or rendering services as prime contractors or subcontractors 
under Government procurement contracts, (B) insure that such prime 
contractors and subcontractors will consult through the appropriate 
procuring agency with the Administration when requested by the 
Administration, and (C) enable the Administration to obtain from 
any Government procurement agency such available or reasonably 
obtainable information and records concerning subcontracting by its 
prime contractors and their subcontractors as the Administration may 
deem necessary: Provided^ That such program shall not authorize the 
Administration to (i) prescribe the extent to which any contractor or 
subcontractor shall subcontract, (ii) specify the business concerns to 
which subcontracts shall be granted, or (iii) vest in the Administra-
tion authority respecting the administration of individual prime con-
tracts or subcontracts: Provided further. That such program shall 
provide that in evaluating bids or selecting contractors for negoti-
ated contracts, the extensive use of subcontractors by a proposed con-
tractor shall be considered a favorable factor. 
The Secretary of 
Defense and the Administrator of General Services each shall promul-
gate regulations implementing the program as developed: Provided^ 
That prior to the promulgation of such regulations, or any changes 
therein, the concurrence of the Administration shall be obtained, and 
if such concurrence cannot be obtained the matter in disagreement 
67 Stat. 231. 
15 u s e 609 note. 
71 Stat. 647. 
15 u s e 60 I note. 
15 u s e 639. 
Surveys. 
Survey reports. 
69 Stat. 581. 
50 u s e 
app. 
2158. 
15 u s e 631. 
15 u s e 637. 
Small business 
s ub c ont r acting 
program. 
Promulgation of 
regulations. 
PUBLIC LAW 87-305-SEPT. 26, 1961 
[75 STAT. 
shall ibe submitted to the President who shall make the final deter-
mination. 
In addition, the Administrator of General Services and 
the Secretary of Defense may issue such other regulations concerning 
subcontracting not inconsistent with the small business subcontracting 
program as uiey each deem necessary or appropriate to effectuate 
their functions and responsibilities. 
. "(2) Every contract for property or services (including but not 
limited to contracts for research and development, maintenance, re-
pair and construction, but excluding contracts to be performed en-
tirely outside of the United States or its territories) in exo^s of 
$1,000,000 made by a Government department or agency, which in 
the opinion of the procuring agency offers substantial subcontracting 
possibilities, shall require the contractor to conform to the small busi-
ness subcontracting program promulgated under this subsection, and 
to insert in all subcontracts and purchase orders in excess of $500,000 
which offer substantial possibilities for further subcontracting a pro-
vision requiring the subcontractor or supplier to conform to such small 
business subcontracting program. 
"(3) The Administration shall include in any report filed under 
1
5 use 639. 
section 10(b) of this Act information, and such recommendations as 
it may deem appropriate, with respect to the administration of the 
small business subcontracting program established under this subsec-
tion. 
"(4) Nothing in this subsection shall be construed to authorize the 
Administrator, the Secretary of Defense, or the Administrator of 
General Services to secure and disseminate technical data or processes 
developed by any business concern at its own expense." 
1
5 use 637. 
gj,(^ 8 Section 8 of the Act is further amended by inserting after 
subsection (d) (as added by section 7 of this Act) a new subsection 
as follows: 
tiSr*'"'*'"*"* "*" 
"(®) ^^ shall be the duty of the Secretary of Commerce, and he is 
Pubucation. 
hereby empowered, to obtain notice of all proposed defense procure-
ment actions of $10,000 and above, and all civilian procurement actions 
of $5,000 and above, from any Federal department, establishment, or 
agency engaged in procurement of supplies and services in the United 
States; and to publicize such notices m the daily publication 'United 
States Department of Commerce Synopsis of the United States Gov-
ernment Proposed Procurements, Sales, and Contract Awards', imme-
diately after the necessity for the procurement is established; except 
that nothing herein shall require publication of such notices with 
respect to those procurements (1) which for security reasons are of a 
classified nature, or (2) which involve perishable subsistence supplies, 
or (3) which are for utility services and the procuring agency in 
accordance with applicable law has predetermined the utility concern 
to whom the award will be made, or (4) which are of such unusual and 
compelling emergency that the Government would be seriously injured 
if bids or offers were permitted to be made more than 15 days after 
the issuance of the invitation for bids or solicitation for proposals, or 
(5) which are made by an order placed under an existing contract, or 
(6) which are made from another Government department or agency, 
or a mandatory source of supply, or (7) which are for personal or 
professional services, or (8) which are for services from educational 
institutions, or (9^ in which only foreign sources are to be solicited, 
or (10) for which it is determined in writing by the procuring agency, 
with the concurrence of the Administrator, that advance publicity is 
not appropriate or reasonable." 
1
5 use 636. 
gj,(, g Section 7(d) of the Act is amended to read as follows: 
Grants for stud* 
"(d) The Administration also is empowered to make grants to any 
ies, 
researcn, etc. 
_
,
'
'
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, 
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State government or any agency thereof, any State-chartered develop-
75 
S T A T . ] 
PUBLIC LAW 87-306-SEPT. 26, 1961 
669 
ment credit or finance corporation, any land-grant college or uni-
versity, any college or school of business, engineering, commerce, or 
agriculture, or to any coi-poration formed by two or more of the 
entities hereinabove described which are eligible to receive such grants, 
for studies, research, and counseling concerning the managing, financ-
ing, and operation of small business enterprises and technical and 
statistical information necessary thereto in order to carry out the 
purposes of section 8(b) (1) by coordinating such information with 
existing information facilities within the State and by making such 
information available to State and local agencies. The Adminis-
trator may recommend to grant applicants particular studies or 
research which are to be financed by such grants. The total of all 
grants (including amendments and modifications thereof) made under 
this subsection within any one State in any one year shall not exceed 
S40,000. The Administration may require, as a condition to any 
grant (or amendment or modification thereof) made under this sub-
section, that an additional amount not exceeding the amount of such 
grant be provided from sources other than the Administration to assist 
in carrving out the purposes for which such grant is made: Provided^ 
That it such grant or any part thereof is to be utilized for the purpose 
of providing counseling services to individual small business enter-
E
rises the Administration shall req[uire that such additional amount 
e provided and in an amount which is equal to the amount of such 
grant. 
What constitutes such additional amount may be defined by 
the Administration." 
Approved September 26, 1961. 
Public Law 87-306 
AN ACT 
To amend section 1362 of title 18 of the United States Code so as to further 
protect the internal security of the United States by providing penalties for 
malicious damage to certain communications facilities. 
Be it enacted hy the Senate and, House of Representatives 
of the 
United States of America in Congress assembled^ That section 1362 
of title 18 of the United States Code is amended to read as follows: 
'*§ 1362. Communication lines, stations or systems. 
"Whoever willfully or maliciously injures or destroys any of the 
works, property, or material of any radio, telegraph, telephone or cable, 
line, station, or system, or other means of communication, oper-
ated or controlled by the United States, or used or intended to De used 
for military or civil defense functions of the United States, whether 
constructed or in process of construction, or willfully or maliciously 
interferes in any way with the working or use of any such line, or 
system, or willfully or maliciously obstructs, hinders, or delays the 
transmission of any communication over any such line, or system, shall 
be fined not more than $10,000 or imprisoned not more than ten years, 
or both. 
"In the case of any works, property, or material, not operated or 
controlled by the United States, this section shall not apply to any 
lawful strike activity, or other lawful concerted activities for the 
purposes of collective bargaining or other mutual aid and protection 
which do not injure or destroy any line or svstem uSed or intended 
to be used for the military or civil defense functions of the United 
States." 
Approved September 26, 1961. 
September 26, 1961 
[S. 1990] 
Communications 
facilities. 
P e n a l t i e s for 
malicious damage. 
62 Stat. 764.