Employ consultants.

Depositaries of funds.

Retirement contributions.

facilities as may,

from time to time, be necessary

to further the objectives of section 7(b).

"(c) To such extent as he finds necessary to carry ou the provisions of this Act, the Administrator is author ized to procure the temporary (not in excess of one year or intermittent services of experts or consultants o organizations thereof, including stenographic reportin services, by contract or appointment, and in such case such services shall be without regard to the civil-servic and classification laws and, except in the case of stend graphic reporting services by organizations, without re gard to section 3709 of the Revised Statutes, as amende (41 U.S.C., sec. 5). Any individual so employed ma be compensated at a rate not in excess of $50 per dien and, while such individual is away from his home regular place of business, he may be allowed transporta tion and not to exceed $15 per diem in lieu of subsisten and other expenses.

"SEC. 6. (a) All moneys of the Administration n otherwise employed may be deposited with the Treasur of the United States subject to check by authority the Administration. The Federal Reserve banks a authorized and directed to act as depositaries, custodian and fiscal agents for the Administration in the gener performance of its powers conferred by this Act. An banks insured by the Federal Deposit Insurance Co poration, when designated by the Secretary of th Treasury, shall act as custodians and financial agen for the Administration. Each Federal Reserve ban when designated by the Administrator as fiscal age for the Administration, shall be entitled to be reimburse for all expenses incurred as such fiscal agent.

"(b) The Administrator shall contribute to t employees' compensation fund, on the basis of annu billings as determined by the Secretary of Labor, f the benefit payments made from such fund on accou of employees engaged in carrying out functions finance by the revolving fund established by section 4(c) of th Act. The annual billings shall also include a stateme of the fair portion of the cost of the administration such fund, which shall be paid by the Administrat into the Treasury as miscellaneous receipts.

"SEC. 7. (a) The Administration is empowered Business loans. make loans to enable small-business concerns to finan plant construction, conversion, or expansion, includi the acquisition of land; or to finance the acquisition equipment, facilities, machinery, supplies, or material or to supply such concerns with working capital to used in the manufacture of articles, equipment, suppli or materials for war, defense, or civilian production as may be necessary to insure a well-balanced nation economy; and such loans may be made or effected eith directly or in cooperation with banks or other lendi

tions through agreements to participate on an diate or deferred basis. The foregoing powers

be subject, however, to the following restrictions Restrictions on mitations:

"(1) No financial assistance shall be extended pursuant to this subsection unless the financial ssistance applied for is not otherwise available on reasonable terms.

66

"(2) No immediate participation may be purchased unless it is shown that a deferred participation is not available; and no loan may be made unless it is shown that a participation is not available.

"(3) In agreements to participate in loans on a deferred basis under this subsection, such participation by the Administration shall not be in excess of 90 per centum of the balance of the loan outstanding at the time of disbursement.

loans:

Not elsewhere available.

Priority on types of loans.

90 percent maximum SBA

participation.

maximum SBA share.

"(4) Except as provided in paragraph (5), (A) no loan under this subsection shall be made if the total amount outstanding and committed (by par- $350,000 ticipation or otherwise) to the borrower from the revolving fund established by this Act would exceed $350,000; (B) the rate of interest for the Administration's share of any such loan shall be no more than 512 per centum per annum; and (C) no such loan, including renewals or extensions thereof, may be made for a period or periods exceeding ten years except that a loan made for the purpose of constructing facilities may have a maturity of ten years plus such additional period as is estimated may be required to complete such construction.

5% percent interest.

maximum SBA

10-year maximum term.

Maximum limit.

(5) In the case of any loan made under this subsection to a corporation formed and capitalized by a group of small-business concerns with resources provided by them for the purpose of obtaining for the use of such concerns raw materials, equipment, inventories, supplies or the benefits of research and development, or for establishing facilities for such purpose, (A) the limitation of $350,000 prescribed Pool loans: in paragraph (4) shall not apply, but the limit of such loan shall be $250,000 multiplied by the number of separate small businesses which formed and capitalized such corporation; (B) the rate of interest for the Administration's share of such loan shall be no less than 3 nor more than 5 per centum per annum; and (C) such loan, including renewals and Maximum extensions thereof, may not be made for a period or periods exceeding ten years except that if such loan is made for the purpose of constructing facilities it may have a maturity of twenty years plus such additional time as is required to complete such construction

Interest be

tween 3 and 5 percent

period.

SBA may encourage formation of pools.

Antitrust exemption.

Reasonable assurance of repayment.

Disaster loans.

Drought and excessive rainfall areas.

"(6) The Administrator is authorized to con with representatives of small-business concerns a view to encouraging the formation by such cerns of the corporation referred to in parag (5). No act or omission to act, if requested by Administrator pursuant to this paragraph, an found and approved by the Administration as tributing to the needs of small business, shal construed to be within the prohibitions of the trust laws or the Federal Trade Commission A the United States. A copy of the statement of such finding and approval intended to be within coverage of this section, and any modification withdrawal thereof, shall be furnished to the A ney General and the Chairman of the Federal T Commission when made, and it shall be publishe the Federal Register. The authority granted in paragraph shall be exercised only (A) by the ministrator, (B) upon the condition that the ministrator consult with the Attorney General with the Chairman of the Federal Trade Com sion, and (C) upon the condition that the Ad istrator obtain the approval of the Attorney Gen before exercising such authority. Upon withdra of any request or finding hereunder or upon w drawal by the Attorney General of his appr granted under the preceding sentence, the provis of this paragraph shall not apply to any subseq act or omission to act by reason of such findin request.

'(7) All loans made under this subsection sha of such sound value or so secured as reasonabl assure repayment.

"(b) The Administration also is empowered

"(1) to make such loans (either directly o cooperation with banks or other lending institut through agreements to participate on an immed or deferred basis) as the Administration may termine to be necessary or appropriate becaus floods or other catastrophes; and

"(2) to make such loans (either directly o cooperation with banks or other lending institut through agreements to participate on an immed or deferred basis) as the Administration may de mine to be necessary or appropriate to any sn business concern located in an area affected b drought or excessive rainfall if the Administra determines that the small-business concern suffered a substantial economic injury as a resul such drought or excessive rainfall and the Presi has determined under the Act entitled 'An Ad authorize Federal assistance to States and 1 Governments in major disasters, and for other

poses', approved September 30, 1950, as amended (42 U.S.C., secs. 1855-1855g), that such drought or excessive rainfall is a major disaster, or the Secretary of Agriculture has found under the Act entitled 'An Act to abolish the Regional Agricultural Credit Corporation of Washington, District of Columbia, and transfer its functions to the Secretary of Agriculture, to authorize the Secretary of Agriculture to make disaster loans, and for other purposes', approved April 6, 1949, as amended (12 U.S.C., secs. 1148a-1-1148a-3), that such drought or excessive rainfall constitutes a production or economic disaster in such area.

In

20 years.

o loan under this subsection, including renewals and tensions thereof, may be made for a period or periods ceeding twenty years. The interest rate on the Ad- Maximum term inistration's share of any loan made under this subsecon shall not exceed 3 per centum per annum. greements to participate in loans on a deferred basis Inder this subsection, such participation by the Adminstration shall not be in excess of 90 per centum of the Maximum participation balance of the loan outstanding at the time of disbursement.

"(c) The Administration may further extend the maturity of or renew any loan made pursuant to this section, or any loan transferred to the Administration pursuant to Reorganization Plan Numbered 2 of 1954, or Reorganization Plan Numbered 1 of 1957, for additional periods not to exceed ten years beyond the period stated therein, if such extension or renewal will aid in the orderly liquidation of such loan.

"(d) The Administration also is empowered to make grants to any State government, or any agency thereof, State chartered development credit or finance corporations, land-grant colleges and universities, and colleges and schools of business, engineering, commerce, or agriculture for studies, research, and counseling concerning the managing, financing, 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. Only one such grant shall be made within any one State in any one year, and no such grant shall exceed an aggregate amount of $40,000.

Interest rate 8 percent.

30 percent.

Terms may be

extended.

Grants for search, and counseling.

studies, re

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

Section 7(d) was added to the Act by Sec. 602(c) of PL 85-699. Then PL 86-367 amended Sec. 7(d) by striking the final sentence of the original version. That sentence read: "Such grants shall be made from the fund established in the Treasury by Sec. 602(b) of the Small Business Investment Act of 1958."

Take contracts.

Let subcontracts.

SBA may:

Provide technical and man

agerial aids.

Make inventory of small business facilities.

"(1) to enter into contracts with the United St Government and any department, agency, or off thereof having procurement powers obligating Administration to furnish articles, equipment, s plies, or materials to the Government. In any in which the Administration certifies to any off of the Government having procurement powers t the Administration is competent to perform specific Government procurement contract to be by any such officer, such officer shall be authori in his discretion to let such procurement contr to the Administration upon such terms and con tions as may be agreed upon between the Adm istration and the procurement officer; and

"(2) to arrange for the performance of such c tracts by negotiating or otherwise letting subc tracts to small-business concerns or others for manufacture, supply, or assembly of such artic equipment, supplies, or materials, or parts there or servicing or processing in connection therewi or such management services as may be necessa to enable the Administration to perform su

contracts.

"(b) It shall also be the duty of the Administrati and it is hereby empowered, whenever it determi such action is necessary

"(1) to provide technical and managerial aids small-business concerns, by advising and counseli on matters in connection with Government p curement and property disposal and on polici principles, and practices of good management, cluding but not limited to cost accounting, metho of financing, business insurance, accident contr wage incentives, and methods engineering, cooperating and advising with voluntary busine professional, educational, and other nonprofit orga izations, associations, and institutions and wi other Federal and State agencies, by maintaining clearinghouse for information concerning the ma aging, financing, and operation of small-busine enterprises, by disseminating such information, a by such other activities as are deemed appropria by the Administration;

"(2) to make a complete inventory of all produ tive facilities of small-business concerns or to arran for such inventory to be made by any other gover mental agency which has the facilities. In maki any such inventory, the appropriate agencies in t several States may be requested to furnish an inve tory of the productive facilities of small-busine concerns in each respective State if such an inventor is available or in prospect;