ducts hearings relative to disputes in the administration of SBA contracts. Administers oaths, subpoenas witnesses; takes testimony; rules on the admissibility of evidence, offers of proof and other disputed matters; rules upon motions and procedural requests; and takes all necessary precautions to protect the rights of all parties. Makes decisions based upon the evidence in the record, the arguments and contentions made, and the application of law and regulations to the facts.

(c) Size Appeals Board. Reviews size appeals cases and makes recommendations to the Administrator. The board is composed of the Deputy Administrator (Chairman), the Associate Administrators for Procurement and Management Assistance and Financial Assistance, and the Assistant Administrator for Planning, Research and Analysis or his designee. The General Counsel will serve as legal adviser to the board.

(d) Program Advisory Council. Reviews and recommends policies and procedures for the development, implementation, and operation of the Planning, Programing, and Budgeting System. Reviews and recommends the program structure and major revisions thereto. Communicates the Administrator's guidance and policies for the development of program objectives and plans. Reviews and insures that proposed program objectives and plans are in consonance with the Administrator's direction. Reviews and recommends approval or revision of program memorandums and multiyear program and financial plans. Reviews and recommends proposals for new programs and alternative courses of action. Reviews and recommends proposals in connection with major analytical studies needed in connection with program evaluation. Members consist of the Deputy Administrator (Chairman), and the associate and assistant administrators. The Director, Office of Program Planning, will serve as Executive Secretary to the council.

(e) National Small Business Advisory Council. The National Small Business Advisory Council membership consists of a national representation of outstanding persons, representative of and sympathetic to small business, including persons actively engaged in business, finance, the professions, and Government whose knowledge of and interest in the problems of small business enable them to make a substantial contribution to the

activities of the advisory board. All members are selected by the Administrator and serve at his pleasure without compensation. The council meets with and advises the Administrator on the development, execution and evaluation of present or proposed SBA programs. All functions are purely advisory and all determinations of actions to be taken are made solely by the responsible SBA officials. The Administrator appoints the chairman of the council.

(f) Special Assistant for Advisory Councils. Develops and recommends policies and procedures for the establishment and operation of the National Small Business Advisory Council and State Advisory Councils. Provides advice and assistance to the Administrator, area administrators, and regional directors in the administration of the advisory councils' programs. Develops sources of candidates for membership, screens candidates, and recommends to the Administrator the selection of members to serve on the advisory councils. Plans, arranges, and participates in the annual meeting of the National Small Business Advisory Council. Participates in meetings of the State Advisory Councils and reviews agenda of meetings and proposed resolutions of the council. Refers resolutions to interested Washington office officials for appropriate consideration and action. Notifies the chairman of the respective council of the Small Business Administration's position on the resolution received. Keeps the Washington office officials informed of the activities of the councils as they relate to their respective functional areas of responsibility.

(g) Special Assistant for Equal Employment Opportunity. Administers the agencywide program to promote and insure equal employment opportunity for all qualified persons, without regard to race, creed, color, or national origin, who are employed by or seek employment with the Small Business Administration. Serves as fair employment officer and handles all complaints received from employees or applicants for employment and recommends the solution to the problems involved to the Administrator. Promotes, through universities and other educational institutions, the employment advantages of SBA and encourages students to apply for vacancies. Provides assistance and guidance to the Washington and area offices on all matters re

Analyzes and interprets legislation, regulations, and orders relating to the operation of the Small Business Administration. Advises the Administrator and other officials as to the legal aspects of the development and execution of policies and programs. Negotiates with Government agencies as to the legal aspects of matters pertaining to responsibilities of SBA and drafts resultant agreements. Develops legal theories incorporated in requests to the Comptroller General or to other Government agencies for decisions in matters of interests to small business. Gives legal counsel and drafts legal instruments for the development of policies, operating procedures and interagency agreements relating to the financial, investment, administrative, technical, and procurement assistance programs. Determines eligibility of applicants for assistance from SBA. Advises with respect to servicing and liquidation of loans and assists and participates with the Department of Justice in litigation arising from delinquent loans, criminal matters, and other SBA program activities. Prosecutes administrative proceedings pursuant to the Small Business Investment Act. Provides legal advice in the formation of defense production pools and research and development pools. Reviews legislative proposals affecting small business and develops recommendations for the Bureau of the Budget and congressional committees; prepares legislative proposals relating to SBA; and develops reports for congressional hearings or the Office of the President. Prepares documents for publication in the FEDERAL REGISTER and is responsible for interpreting the Administrative Procedure Act. Serves as legal adviser to the Size Appeals Board.

(a) Administrative Operations Staff. Prepares budget estimates and develops supporting data for offices for which General Counsel is responsible. Cooperates with the Budget Division in budget preparation, presentation and control. Maintains liaison with the Budget Division in connection with budgetary matters. Coordinates and recommends procedures and other instructions for the administration of legal activities. Cooperates with the Assistant Administrator for Administration and his staff with

respect to such activities. Develops and administers the workload and work measurement reporting system for SBA field attorneys. Directs, recommends, coordinates, and controls all administrative directives, procedures and practices relating to the functions and activities of General Counsel. Initiates and conducts studies designed to facilitate staff operations which leads to solution of special problems as they arise. Advises the General Counsel or Deputy General Counsel on all administrative matters, and on all personnel and training matters involving field office legal personnel. Conducts studies and prepares recommendations with respect to manpower utilization, staffing requirements and delegations of authority. Develops reporting procedures to provide appropriate information reflecting staff accomplishments. Coordinates and prepares Planning, Programing and Budgeting System statements, statistics, and reports into formal documents or memorandums for submission to the Administrator, Assistant Administrator for Planning, Research and Analysis, and the Bureau of the Budget. Plans, prepares and coordinates the preparation of reports for the General Counsel. Reviews administrative deficiencies and problems and recommends corrective action. Coordinates followup actions and replies on reports of audit examinations of legal operations. Establishes and directs the maintenance of all files and records for the General Counsel, including the official litigation files of the Agency.

(b) Office of Loans. Provides legal counsel to Agency officials in the development of policies and operating procedures relating to business-financial assistance, disaster, and trade adjustment loan programs under section 7 of the Small Business Act, the loan program under title IV of the Economic Opportunity Act and the rehabilitation loan program under section 312 of the Housing Act of 1964, as amended. Advises on legal problems arising in connection with individual loan applications, loan disbursements, and administration of current loans, and determines legal action necessary to protect the Agency's interest in such loans. Renders opinions in interpreting Small Business Act, Economic Opportunity Act Regulations and Loan Policy Statement, especially loan eligibility requirements involving novel and complex situations. Advises field counsels of current eligibility determina

tions by publication of opinion digests. Analyzes and comments on proposed new loan programs and procedures within existing legislative authority, and also on new legislative lending proposals. Participates in drafting, reviewing, and revising standard SBA loan forms. Participates in drafting, reviewing, and revising of SBA financial assistance directives and publications. Prepares for publication in FEDERAL REGISTER revisions in Loan Policy Statement, official Declarations of Disaster Area and official statements involving group corporation loans. Directs the development of short- and long-range objectives and program goals. Evaluates the performance of personnel for which responsible and assures that the goals and objectives established are met. Reviews and evaluates security information under financial assistance and investment programs. Reviews the professional performance of and maintains liaison with field counsels and their staffs. Maintains liaison with Department of Agriculture, Department of Justice, Department of Housing and Urban Development, and other Government agencies on legal matters relating to the loan programs. Advises in connection with subpoenas to employees and disclosure of information problems involving the business disaster, trade adjustment, economic opportunity, and rehabilitation loan programs.

(c) Office of Liquidation and Litigation. Advises operating officials with respect to all legal action necessary in connection with the liquidation and disposal programs of the Agency. Acts as liaison with the Department of Justice and field offices in all civil litigation and criminal matters arising under the liquidation and disposal programs. Prepares cases for submission to the Department of Justice, with recommendations for litigation or prosecution, obtains and evaluates evidence and assists in the trial of cases whenever necessary or requested. Advises the Administrator, operating officials, and field offices with respect to problems involving subpoenas served upon SBA employees and disclosure of information contained in the files and records of the Agency relating to liquidation and disposal of acquired collateral. Advises and assists the Security and Investigations Division, Office of Audits and Investigation, in all matters involving possible criminal activities by borrowers and others and with respect to any improper activity by representatives

of borrowers. Prepares and conducts any Agency disbarment proceedings which may be instituted as the result of such misconduct. Participates with the other offices of the General Counsel in consideration of any problems in the above categories which arise in connection with their functions and activities.

(d) Office of Legislation. Reviews all legislation or legislative proposals affecting the interests of small business or the operations of SBA. Prepares legislative proposals relating to the interests of small business or to the functions of SBA. Prepares statements and reports for congressional hearings or committees and for the Bureau of the Budget with respect to legislative matters, and prepares answers to all related inquiries. Directs the development of short- and long-range objectives and program goals. Evaluates the performance of the personnel for which responsible and assures that the goals and objectives established are met. Prepares SBA summary of the Congressional Record.

(e) Office of Economic Development. Plans and directs all legal activities involving legal aspects of 501 and 502 loans, in connection with the administration of title V of the Small Business Act of 1958. Plans and directs legal activities in connection with the processing, servicing, and closing of section 202 loans under the Economic Development Act of 1965, pursuant to delegations of authority from the Department of Commerce to SBA. Provides legal interpretations under said acts, including eligibility and compliance with statutory and regulatory requirements. Develops or modifies basic legal forms employed in the processing, disbursement, and servicing of said loans. Prepares and reviews authorizations employed in the disbursement of said loans. Provides legal advice and services in dealing with officials of Federal and State agencies conducting related programs; to legal representatives of local civic groups in connection with administration of the programs; and in the development and issuance of regulations involved in the administration of said programs. Advises in connection with subpoenas to employees and disclosure of information and problems involving the 501, 502, and EDA loan programs.

(f) Office of Legal Investment. Advises operating officials on legal aspects in the development of policies, regulations, and operating instructions relating

to Agency programs under the Small Business Investment Act of 1958. Advises and prepares legal documents with respect to the granting of licenses and loans to small business investment companies and the regulation of such companies. Provides legal services pertaining to the administration and enforcement of the Act and regulations. Advises and counsels operating officials as to required legal action to be taken in investigation of and enforcement of the Act and regulations, and as to servicing and collection of debentures purchased from and loans extended to small business investment companies pursuant to the provisions of the Act. Provides legal counsel and advice to staff members of the Associate Administrator for Investment in connection with findings of formal investigations of licensed SBICS under authority of section 310 of the Act. Analyzes evidentiary material obtained through such investigations and determines whether facts are sufficient for commencement of administrative proceedings under sections 309, 313, and 314, of the Act or judicial proceedings under sections 308, 311, and 315 of the Act. Conducts legal research, prepares pleadings, and conducts litigation leading toward revocation of licenses under sections 308 and 309, subpoena enforcement under section 310, injunctions and receivers under section 311, removal or suspension of directors and officers of licensees under section 313, violations of breach of fiduciary duty by officers, directors, employees, or agents of licensees under section 314 of the Act. Conducts all administrative proceeding hearings required to enforce compliance with the provisions of the Investment Act, and policies and regulations issued by SBA under the Act, including preparation of necessary pleadings. Assists Department of Justice on civil fraud litigation and criminal matters involving small business investment companies. Refers to Department of Justice for appropriate action any evidence indicating criminal violation of the Code of the United States arising out of transactions investigated pursuant to the Act. Advises in connection with subpoenas to employees and disclosure of information problems involving small business investment companies. Advises the Associate Administrator for Investment with respect to improper activities and misconduct of small business investment company representatives in connection

with actions taken to suspend or revoke their right to appear as counsel or agent in SBA proceedings. Maintains liaison with Government agencies on legal matters relating to the investment program. Directs the development of short- and long-range objectives and program goals. Evaluates the performance of the personnel for which responsible and assures that the goals and objectives established are met.

(g) Office of Procurement, Interagency and Administrative Law. Is responsible for the legal aspects of policies and procedures relating to the procurement, technical, and management assistance programs of the Agency. Provides legal counsel in connection with the administration of the Agency, including fiscal, personnel, contractual, and other problems of an administrative nature. Serves as liaison with the FEDERAL REGISTER and prepares documents for publication therein. Interprets the Administrative Procedure Act as it applies to the Agency other than for purposes of the Small Business Investment Act of 1958. Is responsible for all functions of the Agency relating to the development and execution of the Agency's advocacy activities. Provides legal counsel to the Agency's Size Appeals Board and legal advice in connection with the administration of the Agency's Small Business Size Standards. Advises in connection with subpoenas to employees and disclosure of information problems involving procurement, procurement assistance, size determination, and administrative programs. [Amdt. 7, 32 F.R. 7807, May 30, 1967]

§ 101.2-2 Associate Administrator for Financial Assistance.

Plans, directs, coordinates, and implements the financial assistance programs of the Small Business Administration, including the related activities of liquidation and disposal, and appraisal. Formulates and recommends policies and directs the establishment of agencywide standards and procedures to govern these programs and activities. Represents the Administrator in negotiations with other Government agencies whose activities relate to the financial assistance programs of SBA. Plans and directs the development of short- and long-range goals and objectives. Evaluates and reports to the Administrator on the accomplishments in meeting such goals and objectives. Provides for the development of adequate controls over the administra

tion of these programs as carried out by the Washington and area offices. Serves as alternate member of the Size Appeals Board.

(a) Administrative Operations Staff. Serves as administrative support to the Associate Administrator for Financial Assistance and the Deputy Associate Administrator in the planning, budgeting, and control of the financial assistance programs for which they have responsibility. Provides statistical support for the Associate Administrator and financial assistance office heads in their reviews of program effectiveness and use in program planning, policy development and program supervision. Coordinates and recommends procedures and other instructions for the administration of the financial assistance activities. Cooperates with the Assistant Administrator for Administration and his staff with respect to such procedures and instructions. Develops requirements for the submission of program, cost reduction and manpower utilization reports. Analyzes deficienices and inadequacies in program reports and proposes corrective actions. Advises the Associate Administrator on all administrative management, personnel and general service matters relating to the financial assistance programs. Coordinates financial assistance activities with respect to mobilization planning. Administers the agencywide work measurement system as it applies to the Small Business Administration's financial assistance program. Coordinates and prepares Planning-Programing-Budgeting System statements, statistics and reports into formal documents or memorandums for submission by the Associate Administrator and Deputy Associate Administrator to the Administrator, Assistant Administrator for Planning, Research and Analysis, and the Bureau of the Budget. Coordinates the development of budget estimates for the financial assistance programs and develops supporting data. Cooperates with the Budget Division in financial assistance budget preparation, presentation, and control. Makes final determinations of loan eligibility on difficult or complex cases which are submitted by field offices. Plans, develops, and coordinates financial assistance training programs in cooperation with program offices and the Office of Personnel. Prepares material and reports for submission to Congress.

(b) Office of Business Loans. Formulates and recommends Agency policy gov

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erning the business loan programs of the Small Business Administration. Plans, directs, coordinates, and evaluates the SBA programs governing regular business loans, displaced business loans, economic opportunity assistance loans, lease guarantees, and rehabilitation loans for the Department of Housing and Urban Development, and trade adjustment loans. Develops and recommends financial policy, establishes financial standards and procedures to be used by financial assistance field personnel in the processing and servicing of Certificates of Competency. Participates with the Industrial Support Services Division and the General Counsel in conducting training programs for field personnel in the processing and servicing of Certificates of Competency. Conducts, as required by Washington office officials, financial reviews of complex COC cases including plant visits or followup of delinquent and problem cases. Directs and administers policies and procedures pertinent to the processing of loan applications under the financial assistance program for which the office has responsibility. Directs and administers policies and procedures pertaining to the administration of SBA loans for which the office has responsibility, including problem and delinquent loans. Participates with General Counsel and other SBA offices in developing procedures for administering problem and delinquent loans. Coordinates with private financial institutions to improve the participation and guaranty loan programs, promote better small business bank relations and to develop a market for SBA loans. Maintains liaison with other Government agencies whose activities relate to the business loan programs of SBA. Approves or declines those loan applications, including applications for disaster loans, economic opportunity loans, displaced business loans, lease guarantees, and trade adjustment loans which are submitted to this office. Exercises final authority on all requests from area offices for deviations from established SBA financial assistance procedures. Exercises final authority on all requests from area offices on loans not classified as "in liquidation" regarding purchase of bank's share of participation loan, denial of liability under participation or guarantee agreement, taking legal action against a participant, decline of bank's request for funds under the "liquidity privilege" of a loan guarantee agreement, or acceptance of