(6) Point out any adopted or planned economies in operation designed to reJuce costs of doing a lessened volume of business.

(c) An applicant for Displaced Business Disaster Assistance shall:

(1) Furnish financial and operating statements for the current year to date and for the past 3 previous fiscal or calendar years;

(2) Furnish figures on actual or contemplated reduction or loss of income and profits and estimate of period of time income and profits will be reduced; (3) List all payables which delinquent;

are

(4) List any additional or replacement equipment that will be required reasonably to upgrade operations in new location, with allowances or any other recoveries from disposal or trade-in of existing equipment;

(5) Advise if additional inventories will be required or if different grades of items must be carried to meet demands of new location and effect on working capital position;

(6) Furnish projection of sales, normal percentage of profits, and fixed expenses, for a period of approximately 2 years following relocation in order to establish reasonable ability to repay loan;

(7) Make a list of collateral to be offered as security for repayment of the loan, showing in detail any existing obligations or liens against such collateral;

(8) Furnish the "Applicant's Agreement of Compliance," SBA Form 601 (see § 122.1(f) of this chapter) if such loan results in the alteration, rehabilitation, construction, conversion, extension, or repair of buildings or other improvements to real property, where the contract exceeds $10,000; and

(d) An applicant for Coal Mine Safety and Health Assistance shall follow the procedures in paragraph (b) of this section, and in addition shall furnish a notice of dificiency from the Bureau of Mines.

(e) An applicant for Consumer Protection Assistance shall follow the procedures in paragraph (b) of this section, and in addition shall furnish a letter of survey from the U.S. Department of Agriculture or appropriate State authority.

(f) An applicant for Occupational Safety and Health Assistance shall follow the procedures in paragraph (b) of this section, and in addition shall furnish an approval of the compliance authority of the proposal for either voluntary compliance or corrections of violations of standards established pursuant to the Occupational Safety and Health Act.

§ 123.9 Cooperation with American Red Cross.

In its physical-loss program of assistance to disaster victims, SBA maintains close coordination with the American Red Cross. In many cases, rehabilitation assistance is given jointly to the Red Cross and SBA with part of the applicant's losses being covered by a grant from the Red Cross and part by a loan through SBA.

§ 123.10 Obtaining loan funds.

(a) Once a disaster loan has been approved by SBA, the disaster victim may obtain the loan funds upon compliance with conditions of SBA's loan authorization.

(b) If the approved loan is an immediate participation or guaranteed loan, the bank will notify the disaster victim of the loan approval, terms and conditions, and arrange with him for actual closing of the loan.

(c) If the loan is a direct loan, the disaster victim wil be notified by SBA of the loan approval, terms and conditions. § 123.11 Administration of loans.

Participation and guaranteed loans closed by the bank will be administered by the bank, and participation or direct loans closed by SBA will be administered by SBA.

§ 123.12

Extension of loans, including RFC loans.

Actions taken by SBA pursuant to the authority of section 7(c) (1) of the Small Business Act, as amended, are limited to such periods of time as appear necessary to avoid the forced liquidation of loans. Generally, a sequence of short extensions will be granted rather than one lengthy one. Extensions are only granted under this section when it appears that no other course of liquidation will result in a greater and earlier recovery of the indebtedness. No such extension may be

made on any loan having a maturity in excess of 20 years.

§ 123.13 Restriction against loans to certain felons.

No person who has been convicted of committing a felony during and in connection with a riot or civil disorder shall be permitted, for a period of 1 year after the date of his conviction, to receive any benefit under any law of the United States providing relief for disaster victims.

NOTE: Added by section 1106 (e) of the HUD Act of 1968, as amended by Public Law 90-448.

§ 124.8 Statutory provisions.

SEC. 8 (a) It shall be the duty of the Administration and it is hereby empowered, whenever it determines such action is necessary

(1) To enter into contracts with the United States Government and any department, agency, or officer thereof having procurement powers obligating the Administration to furnish articles, equipment, supplies, or materials to the Government. In any case in which the Administration certifies to any officer of the Government having procurement powers that the Administration is competent to perform any specific Government procurement 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; and

(2) To arrange for the performance of such contracts by negotiating or otherwise letting subcontracts to small-business concerns 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 management services as may be necessary to enable the Administration to perform such contracts.

(b) It shall also be the duty of the Administration and it is hereby empowered. whenever it determines such action is

necessary

(1) To provide technical and managerial aids to small-business concerns, by advising and counseling on matters in connection with Government procurement and property disposal and on policies, principles, and practices of good management, including but not limited to cost accounting, methods of financing, business insurance, accident control, 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 clearinghouse for information concerning the managing, financing, and operation of small-business enterprises, by disseminating such information, and by such other activities as are deemed appropriate by the Administration;

(2) To make a complete inventory of all productive facilities of small-business concerns 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;

(3) To coordinate and to ascertain the means by which the productive capacity of small-business concerns can be most effectively utilized;

(4) To consult and cooperate with officers of the Government having procurement or property disposal powers, in order to utilize the potential productive capacity of plants operated by small-business concerns;

(5) 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 smallbusiness concerns at prices and on conditions and terms which are fair and equitable;

(6) To determine within any industry the concerns, firms, persons, corporations, partnerships, cooperatives, or other business enterprises which are to be designated "smallbusiness concerns" for the purpose of effectuating the provisions of this Act. 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 concern as a "smallbusiness concern" in accordance with the criteria expressed in this Act. Any such certificate shall be subject to revocation when the concern covered thereby ceases to be a "small-business concern". 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 distribution of materials or supplies, shall accept as conclusive the Administration's determination as to which enterprises are to be designated "small-business concerns", as authorized and directed under this paragraph;

(7) To certify to Government procurement officers, and officers engaged in the sale and disposal of Federal property, with respect to the competency, as to capacity and credit, of any small-business concern or group of such concerns to perform a specific Government contract. In any case in which a small-business concern or group of such concerns has been certified by or under the authority of the Administration to be a competent Government contractor with respect to capacity and credit as to a specific Government contract, the officers of the Government having procurement or property disposal powers are directed to accept such certification as conclusive, and are authorized to let such Government contract to such concern or group of concerns without requiring it to meet any other requirement with respect to capacity and credit;

(8) To obtain from any Federal department, establishment, or agency engaged in procurement or in the financing of procurement or production such reports concerning the letting of contracts and subcontracts and the making of loans to business concerns as it may deem pertinent

in carrying out its functions under this Act;

(9) To obtain from any Federal department, establishment, or agency engaged in the disposal of Federal property such reports concerning the solicitation of bids, time of sale, or otherwise as it may deem pertinent in carrying out its functions under this Act; (10) To obtain from suppliers of materials Information pertaining 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;

(11) To make studies and recommendations to the appropriate Federal agencies to insure that a fair proportion of the total purchases and contracts for property and services for the Government be placed with small-business enterprises, to insure that a fair proportion of Government contracts for research and development be placed with small-business concerns, to insure that a fair proportion of the total sales of Government property be made to small-business concerns, and to insure a fair and equitable share of materials, supplies, and equipment to small-business concerns;

(12) To consult and cooperate with all Government agencies for the purpose of insuring that small-business concerns shall receive fair and reasonable treatment from such agencies; and

(13) To establish such small business advisory boards and committees truly representative of small business as may be necessary to achieve the purposes of this Act.

(c) The Administration shall from time to time make studies of matters materially affecting the competitive strength of small business, and of the effect on small business of Federal laws, programs and regulations, and shall make recommendations to the appropriate Federal agency or agencies for the adjustment of such programs and regulations to the needs of small business.

(c) Eligibility. To be eligible for an 8(a) subcontract, a concern must be owned or destined to be owned by socially or economically disadvantaged persons. This category often includes, but is not restricted to, Black Americans, American Indians, Spanish Americans, Oriental Americans, Eskimos and Aleuts. If a concern is not presently controlled by such persons, the firm having such control must execute a divestiture agreement providing for divestiture of control by the divesting company over the concern within a reasonable period of time. The existence of control is a question of fact for administrative determination under the circumstances of each case. Divestiture of at least 51 percent of the stock will create a rebuttable presumption of divestiture of control.

(d) Procurement selection criteria. Procurements will be selected which are determined suitable for performance by an SBA subcontractor. However, procurements will not be considered where: (1) Public solicitation issued;

has been

(a) Concerns may submit applications for consideration under this program to SBA regional or district offices. Applications will include complete information regarding the concern's qualifications and capabilities to perform a contract.

(b) SBA will review procurement programs of other Government departments and agencies and identify proposed procurements suitable for performance by potential subcontractors.

(c) SBA will determine if a potential subcontractor is competent to perform a specific contract and will conduct appropriate negotiations with the other agency or department for the proposed procurement contract. Upon the request of the other agency or department, SBA will certify that the Administration is competent to perform the contract. Upon agreement as to terms, including price, SBA and the agency will enter into a prime contract using forms and provisions prescribed by statute and regulations applicable to the other Government

(a) Section 8 (b)(1) of the Small Business Act authorizes SBA to provide technical and managerial aids to small business concerns by advising and counseling on matters concerning Government procurement and property disposal, and on good management policies and principles; cooperating and advising with voluntary and nonprofit organizations and with other Federal and State agencies; maintaining a clearinghouse for, and disseminating information concerning the management, financing and operation of small business concerns and such other activities as are deemed appropriate.

(b) SBA advises and assists small business concerns with regard to Government procurement and property disposals; product development and production assistance including plant layout, methods engineering, other production and supply problems; and general management, including cost accounting, financing, insurance, and engineering. Assistance is given also through opportunity meetings where small manufacturers receive firsthand information regarding Government procurement. also assists small business concerns in surplus labor areas to help them absorb surplus labor. SBA gives assistance to individual small business concerns in their relations with Government procurement and disposal agencies, in resolving problems arising in the administration and performance of Government contracts, in plant layout and production problems, and in keeping abreast of new production and marketing techniques and products.

It

(c) Among the salient features of SBA assistance, guidance and cooperation are the programs listed in §§ 124.8-4 to 124.8-9.

§ 124.8-4 Procurement Assistance Pro

gram.

The Procurement Assistance Program for small concerns:

(a) Evaluates the products or services small business firms can supply;

(b) Advises them as to the Government requirements for such products and services;

(c) Advises and guides them on how to be placed on bidders lists; how to develop additional bidding opportunities; how to obtain drawings and specifications and furnishing information on the submission of bids or quotations and contract clauses;

(d) Advises and guides them on the manner of doing business with the Government;

(e) Advises and assists on intricate questions involving individual procurements or awards, and

(f) Assists them with their problems at Government procurement offices. § 124.8-5 Production Assistance Program.

The Production Assistance Program provides :

(a) Technical and engineering assistance, and

(b) Aid and assistance in connection with plant layout and production problems concerned with methods of engineering, quality and production control, machinery, tools, jigs, fixtures, production planning, and allied subjects including advice on obtaining raw materials. § 124.8-6 Products Assistance Program. The Products Assistance Program:

(a) Provides information on sources of technical information on product research and development; new product potential; processing methods; product and market development; new industrial uses for raw and semiprocessed materials, including waste, and industrial uses for agricultural products, and

(b) Provides a clearinghouse for information regarding available products and processes which may be helpful in improving the competitive position of small business firms, will permit diversification, and expansion, or result in more economical utilization of plant capacity. A publication, "Products List Circular," issued monthly, provides information on items, processes and materials which are available for use through purchase, license, or other commercial arrangements, and on Government-owned patents which are available on a nonexclusive royalty-free basis. Products may be listed in the Products List Circular by filing SBA Form 312, Request for Listing

Inventions in the Products List Circular, with any SBA field office.

§ 124.8-7 Management and Research Assistance Program.

(a) Educational courses. These are courses of study for owners and managers of small enterprises through cooperating educational institutions. Frequently, local business organizations and groups such as Chambers of Commerce, professional and trade associations assist SBA and the educational institution. The course is planned, programed and financed by the institution, with SBA serving as a clearinghouse for ideas concerning subject matter, teaching methods and administrative techniques. The courses, which generally run for eight weeks, relate to administration (planning, organizing, staffing, directing and controlling a business) rather than dayto-day operations. People interested in instituting a course should request the booklet, Administrative Management Courses for Small Business Owners, from the nearest SBA office, and should discuss their interest with SBA representatives and with local educational institutions.

(b) Management publications—(1) Free publications. There are four series of free publications: Management Aids for Small Manufacturers, Small Marketers Aids, Technical Aids for Small Manufacturers, and Small Business Bulletins. SBA also published special publications relating to Agency programs from time to time.

(i) Management Aids for Small Manufacturers are leaflets written for managers of small plants. There are three classes of subjects: business-Government relations; internal general management; and sources of outside help.

(ii) Small Marketers Aids are leaflets written for small retail, wholesale, and services enterprises. There are three classes of subjects; internal general management; significant marketing developments; and external sources of help.

(iii) Technical Aids for Small Manufacturers are leaflets written for the chief executives of small manufacturing companies. There are three classes of subjects: Manufacturing, maintenance, and materials technology.

(iv) Small Business Bulletins are leaflets providing bibliographical material on specific trades and industries.

(2) Publications for sale. There are three series of publications which are