Sec. 101.1

101.2

PART 101-ADMINISTRATION

Purpose, function, general organization.

Organization of the Washington Office-Administrator.

101.2-1 Office of Economic Adviser. 101.2-2 Office of the General Counsel. 101.2-3 Deputy Administrator for Financial

AUTHORITY: The provisions of this Part 101 issued under sec. 3, 60 Stat. 238, 72 Stat. 384, as amended, 72 Stat. 689, as amended; 5 U.S.C. 1002, 15 U.S.C. 631 note, 661 note. § 101.1 Purpose, function, general organization.

(a) Purpose. To aid, counsel, assist, and protect, insofar as possible, the interest of small business concerns in order to preserve free competitive enterprise; to insure that a fair proportion of the total purchases and contracts or subcontracts for property and services for the Government be placed with small business enterprises; to insure that a fair proportion of the total sales of Government property be made to such enterprises; and to maintain and strengthen the overall economy of the Nation. 'To aid and assist victims of floods, other catastrophes, and small business concerns displaced by federally aided construction. To stimulate and supplement the flow of private equity capital and long-term loans to small business by small business investment companies and state and local development companies.

(b) Functions. To make a detailed definition of what constitutes a small business concern using, among other criteria, number of employees and dollar volume of business; make loans to small business concerns to finance plant

construction, conversion, or expansion, or to finance the acquisition of equipment, facilities, machinery, supplies, or materials, and to supply such concerns with working capital; make loans to aid victims of floods or other catastrophes and displaced business disaster loans; certify 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; enter into joint determinations with Government procurement and disposal agencies with respect to awarding of procurement contracts or sale of property to assure that it is in the interest of (1) maintaining or mobilizing the Nation's full productive capacity, (2) national defense programs and (3) insuring a fair proportion of the total contracts for property and service and total sales of property be made to small businesses; consult with procurement officials in order to attain full use of productive capacity of small business concerns; recommend approval of small business defense production pools and research and development pools; take prime contracts and sublet their performance to small businesses; provide technical and managerial aids to small business; make an inventory of productive facilities of small concerns; to obtain information as to methods and practices which Government prime contractors utilize in letting subcontracts and cooperatively develop with the Department of Defense and the General Services Administration a small business subcontracting program to enable small business concerns to be considered fairly as subcontractors to Government prime contractors; consult with Government agencies to insure fair and reasonable treatment for small business concerns; counsel and advise small firms on foreign trade matters; assist small firms in obtaining Government contracts for research and development and obtaining the benefits of research and development performed with Government funds; make grants to State governments, State-chartered corporations, colleges, universities and schools of business, engineering, commerce, or agriculture for studies, research and counseling concerning the managing, financing and operation of small businesses; license and regulate small business investment companies; and

make loans to small business investment companies and state and local development companies, and under authority delegated by the Secretary of Commerce, perform relevant functions provided for in the Area Redevelopment Act.

(c) Organization. (1) Management of the Small Business Administration is vested in an Administrator appointed by the President with the advice and consent of the Senate. The Administrator is authorized to appoint three Deputy Administrators under the Small Business Act and one Deputy Administrator under the Small Business Investment Act. The Administrator is authorized, subject to the Civil Service and Classification Laws, to select employees, appoint and fix the compensation of such officers, employees, attorneys, and agents as shall be necessary to carry out the provisions of the Small Business Act of 1958 and the Small Business Investment Act of 1958.

(2) The Small Business Act of 1958 created the Loan Policy Board of the Small Business Administration which consists of the following members:

(i) The Administrator as chairman, the Secretary of the Treasury, and the Secretary of Commerce (or the presidentially appointed designee of each of said Secretaries). The Loan Policy Board is charged with the establishment of general policies (particularly with reference to the public interest) which govern the granting and denial of applications for financial assistance by the Administration.

(ii) A Hearing Examiner or Hearing Examiners appointed or selected in accordance with section 11 of the Administrative Procedure Act, shall conduct hearings pursuant to section 309 of the Small Business Investment Act of 1958, as amended. Hearing Examiner functions shall be appropriately, separated from investigative and prosecuting functions of the staff as required by law.

(iii) The Program Administration and Compliance Division administers prosecuting and investigative functions under sections 309 and 310 of the Small Business Investment Act.

(3) The Headquarters office of the Small Business Administration is located at 811 Vermont Avenue NW., Washington, D.C., 20416. Further information concerning the organization and functions of SBA can be obtained by calling the Agency Information and Reception Center, Dudley 2–3301.

by SBA are authorized and executed pursuant to Federal programs adopted by Congress to achieve national purposes of the United States Government.

(2) Instruments evidencing a loan, obligation or 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. 2, 27 F.R. 6777, July 18, 1962, as amended by Amdt. 5, 31 F.R. 10466, Aug. 4, 1966]

§ 101.2 Organization of the Washington Office Administrator.

All offices heading §§ 101.2 to 101.2-9 are located in Washington, D.C., and their heads report directly to the Administrator. The Administrator determines policy and directs programs to aid, assist and protect small business, serves as Chairman of the Loan Policy Board and of the White House Committee on Small Business, and reports to the President and Congress on Agency program accomplishments and small business problems.

[Amdt. 3, 27 F.R. 12919, Dec. 29, 1962]

§ 101.2-1 Office of Economic Adviser.

(a) The Office of Economic Adviser provides the focus for research in the economic dynamics of small business. Analyzes the economic effects of SBA activities and advises the Administrator. Makes continuing studies and analyses of

small firms and the competitive factors affecting them. Conducts industry and environmental studies of economic changes. At the request of other offices, or the operating departments of SBA, conducts research on specific problems.

(b) Gathers and evaluates size information and suggests changes in size standards. Directs research required to advise the Administrator concerning the effect of economic conditions on funds required by the Agency to meet financing demands of small business.

(c) Conducts economic and statistical research showing the impact of SBA policies and programs on small business for inclusion in official reports.

Con

ducts negotiations for studies on competitive factors affecting small business authorized by section 8(c) of the Small Business Act, as amended. Performs other duties, including membership on the Size Appeals Board, as assigned to the office by the Administrator. [Amdt. 3, 27 F.R. 12919, Dec. 29, 1962] § 101.2-2 Office of the General Counsel.

Serves as legal adviser to the Administrator and program and administrative officials of the Agency. Analyzes and interprets legislation, regulations, and orders relating to the operations of SBA. Negotiates with other Government agencies as to the legal aspects of SBA programs and operations. Gives legal counsel, drafts legal instruments and operating procedures, and provides assistance on procurement and technical assistance and management and research assistance programs and administrative operations of the Agency. Participates with the Department of Justice in litigation arising from delinquent loans, criminal matters, and other SBA activities. 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 Presi→ dent. Serves as Chairman of the Size Appeals Board.

(a) Liquidation and Litigation Division. Advises operating officials with respect to legal action to be taken in connection with the servicing and collection of loans and investments. Refers to the Department of Justice for collection and other action to protect the interests of SBA, delinquent loans and all other civil litigation. Refers to the

Department of Justice any evidence indicating a violation of the Small Business Act, the Small Business Investment Act, or the Criminal Code of the United States. Prepares cases for submission to the Department of Justice for litigation or prosecution and assists U.S. Attorneys in the trial of cases whenever necessary. Participates with other divisions of the Office of General Counsel with respect to any litigation in connection with their functions and activities.

(b) Loan Division. Provides legal counsel to Agency officials in the development and implementation of policies and procedures relating to the financial assistance programs including advice with respect to loan applications, disbursement and servicing of current loans under the Small Business Act, as amended. Renders opinions regarding loan eligibility. Advises field counsel of legal responsibilities in loan programs. Analyzes comments on proposed new loan programs and new legislative lending proposals. Drafts or reviews SBA loan forms and instructions. Reviews and evaluates security information for loan and investment programs.

(c) Legal Investment Division. (1) Advises operating officials in the development of policies, regulations, instructions and forms relating to the Small Business Investment Program under the Small Business Investment Act of 1958. Provides legal advice with respect to the granting of licenses to small business investment companies, the regulation of such companies and loans to state and local development companies. Prepares documents for publication in the FEDERAL REGISTER and is responsible for interpreting the Administrative Procedure Act as it applies to the Small Business Investment Act of 1958. Maintains liaison with appropriate Government agencies on legal matters relating to the investment program.

(2) The Legal Investment Division is made up of three branches:

(i) Licensing and Operations Branch; (ii) Development Companies Branch; and

(iii) Regulations Branch.

(d) Procurement, Legislative, and Administrative Division. 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, contractural 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; has responsibility for matters pertaining to Agency legislation and other legislation which may affect small business; 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,

(1) Legislative Branch. Reviews legislation and reviews or prepares legislative proposals affecting the interest of small business or the operations of SBA. Prepares reports for the Congressional hearings and Committees and the Bureau of the Budget respecting legislative matters.

(2) Procurement and Administrative Branch. Provides legal counsel to officials in the development of policies, interagency agreements and operating procedures relating to the procurement and technical assistance programs, small business research and management counseling programs, size standards and size appeals programs and administrative activities of the Agency, and drafts legal instruments relating to these programs and administrative activities. Analyzes regulations and policies of civilian and military procurement agencies for the development of proposals for changes therein to assist small business. Provides legal advice in the formation of defense production pools and research and development pools. Prepares documents for publication in the FEDERAL REGISTER and is responsible for interpreting the Administrative Procedure Act except with respect to its applicability under the Small Business Investment Act of 1958.

[Amdt. 3, 27 F.R. 12919, Dec. 29, 1962]

the Secretary of Commerce to SBA, directs the processing of Area Redevelopment Administration applications for financial assistance. Serves as a member of the Size Appeals Board.

(a) Office of Loan Processing. Directs and administers policies and programs pertaining to the processing of loan applications, both business and disaster loans, under secton 7 of the Small Business Act, new or special financial assistance programs, and Certificates of Competency credit analysis; provides technical direction and coordination to field offices in the administration of the loan processing program; and directs the processing of Area Redevelopment Administration applications for financial assistance. Approves or declines loan applications referred to the Washington office by the field office.

(1) Area Loan Groups (4). Examines loan applications referred to the Washington office by the field offices, and approves, declines, or recommends approval or declination of such applications.

(2) Certificate of Competency Group. Examines and analyzes financial reports on all COC applications received from field offices. Recommends issuance or declination of COC's. Gives technical direction to field office operations and performance in connection with financial aspects of COC cases. Contributes to the development of criteria, standards and procedures for COC processing. Represents Office of Loan Processing at COC Review Committee meetings.

(b) Office of Loan Administration. Directs and administers policies and programs pertaining to the Administration and servicing of loans made pursuant to section 7 of the Small Business Act, including problem and delinquent loans, loans in liquidation and the sale or disposal of acquired assets. Provides technical direction and coordination to field offices in the operation of the loan administration program.

(1) Loan Servicing Division. Administers and coordinates programs for the administration and servicing of loans and other obligations, other than loans in liquidation, made pursuant to section 7 of the Small Business Act. Approves, declines, or recommends approval or declination of loan servicing actions referred to the Washington office by the field offices.

(2) Liquidation Division. Administers and coordinates the liquidation program as it pertains to loans in liquidation and