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Small Business Act and the Small Business Investment Act.

(2) The headquarters office of the Small Business Administration is located at 1441 L Street NW., Washington, D.C. 20416. Further information concerning the activities of SBA can be obtained by calling the Office of Public Inquiry and Analysis, 382–3268.

(d) Applicable law. (1) Loans made by SBA are authorized and executed pursuant to Federal programs adopted by Congress to achieve national purposes of the U.S. Government.

(2) Instruments evidencing a loan, obligation of security interest in real or personal property payable to or held by the Administration or the Administrator, such as promissory notes, bonds, guaranty agreements, mortgages, deeds of trust, and other evidences of debt or security shall be construed and enforced in accordance with applicable Federal law.

(3) In order to implement and facilitate these Federal loan programs, the application of local procedures, especially for recordation and notification purposes, may be utilized to the fullest extent feasible and practicable. However, the use of local procedures shall not be deemed or construed to be any waiver by SBA of any Federal immunity from any local control, penalty or liability.

(4) Any person, corporation or organization that applies for and receives any benefit or assistance from SBA, or that offers any assurance or security upon which SBA relies for the granting of such benefit or assistance, shall not be entitled to claim or assert any local immunity to defeat the obligation such party incurred in obtaining or assuring such Federal benefit or assistance. [Amdt. 7, 32 F.R. 7805, May 30, 1967) § 101.2 Organization of the Washington

Office-Administrator. All offices heading $ $ 101.2 to 101.2–7 are located in Washington, D.C., and their heads report directly to the Administrator. The Administrator is responsible to the President and Congress for exercising direction, authority, and control over the Small Business Administration. Determines and approves all policies covering the Agency's programs to aid, counsel, assist, and protect the interests of the nation's small business concerns. He delegates responsibility and authority, except the authority to make or decline pool loans; applied research

programs; and defense production pools, as set forth in sections 7(a) (6), 9(d), and 11 of the Small Business Act, to the Deputy Administrator, associate administrators, other Washington office oficials reporting directly to him, and the area administrators. He consults with Federal, State and cal agencies in behalf of small business interests in the national economy. Reports to the President and Congress on Agency program accomplishments and problems. He directs the execution of authority delegated to the Administrator by the Secretary of Housing and Urban Development with respect to performance of SBA's responsibilities under section 312 of the Housing Act of 1964, as amended. He periodically evaluates the performance, accomplishments, and short- and long-range planning goals of the Washington office officials reporting directly to him, and the area administrators.

(a) Deputy Administrator. The Deputy Administrator is appointed by the Administrator to assist him in directing the programs of the Small Business Administration. Acts for the Administrator during his absence or disability. Provides executive leadership, direction, and coordination to the associate administrators, assistant administrators, other Washington office officials reporting directly to the Administrator, and the area administrators in carrying out their program or staff responsibilities. Reconciles policy matters and plans and coordinates Agency participation in the interagency program. Approves selection of SBA representatives to serve on interagency committees, task forces and conferences. Serves as Chairman of the Program Advisory Council and the Size Appeals Board. Directs and supervises administrative work performed by SBA Administrative Secretary and Secretary to the Size Appeals Board in connection with Agency administrative proceedings and size appeals matters.

(b) Office of Hearing Examiner. Presides at hearings and examinations conducted in accordance with proceedings of section 11 of the Administrative Procedure Act. These hearings and examinations involve the enforcement of compliance with the provisions of the Small Business Investment Act, policies and regulations issued by SBA under the Act, in addition to compliance matters involving the SBA civil rights program and regulations pursuant to the provisions of the Civil Rights Act of 1964. Also conducts 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 oficials. 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 regarding the internal equal employment opportunity program. (Amdt. 7, 32 F.R. 7806, May 30, 1967) 8 101.2-1 General Counsel.

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 authori. zations 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 with actions taken to suspend or revoke Business Investment Act of 1958. Ad- their right to appear as counsel or agent vises and prepares legal documents with in SBA proceedings. Maintains liaison respect to the granting of licenses and with Government agencies on legal matloans to small business investment com- ters relating to the investment program. panies and the regulation of such com- Directs the development of short- and panies. Provides legal services pertaining long-range objectives and program goals. to the administration and enforcement Evaluates the performance of the perof the Act and regulations. Advises and sonnel for which responsible and assures counsels operating officials as to required that the goals and objectives established legal action to be taken in investigation are met. of and enforcement of the Act and regu- (g) Office of Procurement, Interagency lations, and as to servicing and collec- and Administrative Law. Is responsible tion of debentures purchased from and for the legal aspects of policies and proloans extended to small business invest- cedures relating to the procurement, ment companies pursuant to the pro- technical, and management assistance visions of the Act. Provides legal counsel programs of the Agency. Provides legal and advice to staff members of the counsel in connection with the adminisAssociate Administrator for Investment tration of the Agency, including fiscal, in connection with findings of formal personnel, contractual, and other probinvestigations of licensed SBICs under lems of an administrative nature. Serves authority of section 310 of the Act. as liaison with the FEDERAL REGISTER and Analyzes evidentiary material obtained prepares documents for publication through such investigations and deter- therein. Interprets the Administrative mines whether facts are sufficient for Procedure Act as it applies to the Agency commencement of administrative pro- other than for purposes of the Small ceedings under sections 309, 313, and Business Investment Act of 1958. Is re314, of the Act or judicial proceedings sponsible for all functions of the Agency under sections 308, 311, and 315 of the relating to the development and execuAct. Conducts legal research, prepares tion of the Agency's advocacy activities. pleadings, and conducts litigation lead- Provides legal counsel to the Agency's ing toward revocation of licenses under Size Appeals Board and legal advice in sections 308 and 309, subpoena enforce- connection with the administration of ment under section 310, injunctions and the Agency's Small Business Size Standreceivers under section 311, removal or ards. Advises in connection with subsuspension of directors and officers of poenas to employees and disclosure of licensees under section 313, violations of information problems involving procurebreach of fiduciary duty by officers, ment, procurement assistance, size deterdirectors, employees, or agents of li- mination, and administrative programs. censees under section 314 of the Act.

[Amdt. 7, 32 F.R. 7807, May 30, 1967) Conducts all administrative proceeding hearings required to enforce compliance

$ 101.2–2 Associate Administrator for

Financial Assistance. with the provisions of the Investment Act, and policies and regulations issued Plans, directs, coordinates, and impleby SBA under the Act, including prep

ments the financial assistance programs aration of necessary pleadings. Assists of the Small Business Administration, Department of Justice on civil fraud including the related activities of liquilitigation and criminal matters involving dation and disposal, and appraisal. Forsmall business investment companies. mulates and recommends policies and Refers to Department of Justice for ap- directs the establishment of agencywide propriate action any evidence indicating standards and procedures to govern these criminal violation of the Code of the programs and activities. Represents the United States arising out of transactions Administrator in negotiations with other investigated pursuant to the Act. Ad- Government agencies whose activities vises in connection with subpoenas to relate to the financial assistance proemployees and disclosure of information grams of SBA. Plans and directs the deproblems involving small business in- velopment of short- and long-range goals vestment companies. Advises the Asso- and objectives. Evaluates and reports to ciate Administrator for Investment with the Administrator on the accomplishrespect to improper activities and mis- ments in meeting such goals and objecconduct of small business investment tives. Provides for the development of company representatives in connection adequate controls over the administra

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