72 Stat. 394. consult and cooperate with other departments and agencies of the Federal Government in the formulation by the Administration of policies affecting small-business concerns. When requested by the Administrator, each department and agency of the Federal Government shall consult and cooperate with the Administration in the formulation by such department or agency of policies affecting smallbusiness concerns, in order to insure that small-business interests will be recognized, protected, and preserved. This subsection shall not require any department or agency to consult or cooperate with the Administration in any case where the head of such department or agency determines that such consultation or cooperation would unduly delay action which must be taken by such department or agency to protect the national interest in an emergency. "SEC. 11. (a) The President is authorized to consult with repre- Presidential sentatives of small-business concerns with a view to encouraging the authority. making by such persons with the approval of the President of voluntary agreements and programs to further the objectives of this Act. "(b) No act or omission to act pursuant to this Act which occurs while this Act is in effect, if requested by the President pursuant to a voluntary agreement or program approved under subsection (a) of this section and found by the President to be in the public interest as contributing to the national defense, shall be construed to be within the prohibitions of the antitrust laws or the Federal Trade Commission Act of the United States. A copy of each such request intended to be within the coverage of this section, and any modification or withdrawal thereof, shall be furnished to the Attorney General and the Chairman of the Federal Trade Commission when made, and it shall be published in the Federal Register unless publication thereof would, in the opinion of the President, endanger the national security. "(c) The authority granted in subsection (b) of this section shall Delegation be delegated only (1) to an official who shall for the purpose of such of authority. delegation be required to be appointed by the President by and with the advice and consent of the Senate, (2) upon the condition that such official consult with the Attorney General and the Chairman of the Federal Trade Commission not less than ten days before making any request or finding thereunder, and (3) upon the condition that such official obtain the approval of the Attorney General to any request thereunder before making the request. "(d) Upon withdrawal of any request or finding hereunder, or Nonapplicability. upon withdrawal by the Attorney General of his approval of the voluntary agreement or program on which the request or finding is based, the provisions of this section shall not apply to any subsequent act, or omission to act, by reason of such finding or request. "SEC. 12. The President may transfer to the Administration any Transfer of functions, powers, and duties of any department or agency which functions, etc. relate primarily to small-business problems. In connection with any such transfer, the President may provide for appropriate transfers of records, property, necessary personnel, and unexpended balances of appropriations and other funds available to the department or agency from which the transfer is made. "SEC. 13. No loan shall be made or equipment, facilities, or services Conditions for furnished by the Administration under this Act to any business enter- loans, etc. prise unless the owners, partners, or officers of such business enterprise (1) certify to the Administration the names of any attorneys, agents, or other persons engaged by or on behalf of such business enterprise for the purpose of expediting applications made to the Administration for assistance of any sort, and the fees paid or to be paid to any such persons; (2) execute an agreement binding any such business enterprise for a period of two years after any assistance is Charge for Government-owned property. Determination of awards or contracts. Violations and penalties. rendered by the Administration to such business enterprise, to refrain from employing, tendering any office or employment to, or retaining for professional services, any person who, on the date such assistance or any part thereof was rendered, or within one year prior thereto, shall have served as an officer, attorney, agent, or employee of the Administration occupying a position or engaging in activities which the Administration shall have determined involve discretion with respect to the granting of assistance under this Act; and (3) furnish the names of lending institutions to which such business enterprise has applied for loans together with dates, amounts, terms, and proof of refusal. "SEC. 14. To the fullest extent the Administration deems practicable, it shall make a fair charge for the use of Government-owned property and make and let contracts on a basis that will result in a recovery of the direct costs incurred by the Administration. "SEC. 15. To effectuate the purposes of this Act, small-business concerns within the meaning of this Act shall receive any award or contract or any part thereof, and be awarded any contract for the sale of Government property, as to which it is determined by the Administration and the contracting procurement or disposal agency (1) to be in the interest of maintaining or mobilizing the Nation's full productive capacity, (2) to be in the interest of war or national defense programs, (3) to be in the interest of assuring that a fair proportion of the total purchases and contracts for property and services for the Government are placed with small-business concerns, or (4) to be in the interest of assuring that a fair proportion of the total sales of Government property be made to small-business concerns; but nothing contained in this Act shall be construed to change any preferences or priorities established by law with respect to the sale of electrical power or other property by the Government or any agency thereof. These determinations may be made for individual awards or contracts or for classes of awards or contracts. Whenever the Administration and the contracting procurement agency fail to agree, the matter shall be submitted for determination to the Secretary or the head of the appropriate department or agency by the Administrator. "SEC. 16. (a) Whoever makes any statement knowing it to be false, or whoever willfully overvalues any security, for the purpose of obtaining for himself or for any applicant any loan, or extension thereof by renewal, deferment of action, or otherwise, or the acceptance, release, or substitution of security therefor, or for the purpose of influencing in any way the action of the Administration, or for the purpose of obtaining money, property, or anything of value, under this Act, shall be punished by a fine of not more than $5,000 or by imprisonment for not more than two years, or both. (b) Whoever, being connected in any capacity with the Administration, (1) embezzles, abstracts, purloins, or willfully misapplies any moneys, funds, securities, or other things of value, whether belonging to it or pledged or otherwise entrusted to it, or (2) with intent to defraud the Administration or any other body politic or corporate, or any individual, or to deceive any officer, auditor, or examiner of the Administration, makes any false entry in any book, report, or statement of or to the Administration, or, without being duly authorized, draws any order or issues, puts forth, or assigns any note, debenture, bond, or other obligation, or draft, bill of exchange, mortgage, judgment, or decree thereof, or (3) with intent to defraud participates or shares in or receives directly or indirectly any money, profit, property, or benefit through any transaction, loan, commission, contract, or any other act of the Administration, or (4) gives any unauthorized information concerning any future action or plan of the 72 Stat. 396. Administration which might affect the value of securities, or, having such knowledge, invests or speculates, directly or indirectly, in the securities or property of any company or corporation receiving loans or other assistance from the Administration, shall be punished by a fine of not more than $10,000 or by imprisonment for not more than five years, or both. "SEC. 17. Any interest held by the Administration in property, as Liens. security for a loan, shall be subordinate to any lien on such property for taxes due on the property to a State, or political subdivision thereof, in any case where such lien would, under applicable State law, be superior to such interest if such interest were held by any party other than the United States. "SEC. 18. The Administration shall not duplicate the work or ac- Duplication tivity of any other department or agency of the Federal Government of activities. and nothing contained in this Act shall be construed to authorize any such duplication unless such work or activity is expressly provided for in this Act. "SEC. 19. If any provision of this Act, or the application thereof Separability. to any person or circumstances, is held invalid, the remainder of this Act, and the application of such provision to other persons or circum stances, shall not be affected thereby. "SEC. 20. There are hereby authorized to be appropriated such Appropriation. sums as may be necessary and appropriate for the carrying out of the provisions and purposes of this Act. "SEC. 21. All laws and parts of laws inconsistent with this Act are Repeals. hereby repealed to the extent of such inconsistency." 38 Stat.273. 12 USC 371. SEC. 3. The fourth paragraph of section 24 of the Federal Reserve Real estate Act is amended (1) by striking out "or the Small Business Adminis- loans by Natration" and "or of the Small Business Act of 1953,", and (2) by add- tional Banks. ing at the end thereof the following new sentence: "Loans in which the Small Business Administration cooperates through agreements to participate on an immediate or deferred basis under the Small Business Act shall not be subject to the restrictions or limitations of this section imposed upon loans secured by real estate." SEC. 4. The Secretary of the Treasury is hereby authorized to fur- RFC loans. ther extend the maturity of or renew any loan transferred to the Sec retary of the Treasury pursuant to Reorganization Plan Numbered 1 of 1957, for additional periods not to exceed ten years, if such exten- 71 Stat. 647. sion or renewal will aid in the orderly liquidation of such loan. Approved July 18, 1958. To make equity capital and long-term credit more readily available for smallbusiness concerns, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, TITLE I-SHORT TITLE, STATEMENT OF POLICY, AND DEFINITIONS SHORT TITLE SEC. 101. This Act, divided into titles and sections according to the following table of contents, may be cited as the "Small Business Investment Act of 1958." Small Business Investment Act of 1958. TABLE OF CONTENTS TITLE I-SHORT TITLE, STATEMENT OF POLICY, AND DEFINITIONS Sec. 101. Short title. Sec. 102. Statement of policy. Sec. 103. Definitions. TITLE II-SMALL BUSINESS INVESTMENT DIVISION OF THE SMALL BUSINESS Sec. 201. Establishment of Small Business Investment Division. TITLE III-SMALL BUSINESS INVESTMENT COMPANIES Sec. 301. Organization of small business investment companies. Sec. 303. Borrowing power. Sec. 304. Provision of equity capital for small-business concerns. Sec. 305. Long-term loans to small-business concerns. Sec. 306. Aggregate limitations. Sec. 307. Exemptions. Sec. 308. Miscellaneous. Sec. 309. Approving State chartered companies for operations under this Act. TITLE IV-CONVERSION OF STATE CHARTERED INVESTMENT COMPANIES AND STATE TITLE V-LOANS TO STATE AND LOCAL DEVELOPMENT COMPANIES TITLE VI-CHANGES IN FEDERAL RESERVE AUTHORITY Sec. 601. Repeal of section 13b of the Federal Reserve Act, TITLE VII-CRIMINAL PENALTIES STATEMENT OF POLICY SEC. 102. It is declared to be the policy of the Congress and the purpose of this Act to improve and stimulate the national economy in general and the small-business segment thereof in particular by establishing a program to stimulate and supplement the flow of private equity capital and long-term loan funds which small-business concerns need for the sound financing of their business operations and for their growth, expansion, and modernization, and which are not available in adequate supply: Provided, however, That this policy (40) Ante, p. 394, 395. Ante, p. 385. 72 Stat. 690. shall be carried out in such manner as to insure the maximum participation of private financing sources. It is the intention of the Congress that the provisions of this Act shall be so administered that any financial assistance provided hereunder shall not result in a substantial increase of unemployment in any area of the country. DEFINITIONS SEC. 103. As used in this Act (1) the term "Administration" means the Small Business Administration; (2) the term "Administrator" means the Administrator of the Small Business Administration; (3) the terms "small business investment company" and "company" mean a small business investment company organized as provided in title III, including (except for purposes of section 301 and section 308 (f)) a State-chartered investment company which has obtained the approval of the Administrator to operate under the provisions of this Act as provided in section 309 and a company converted into a small business investment company under section 401 of this Act; (4) the term "United States" means the several States, the Territories of Alaska and Hawaii, the District of Columbia, and the Commonwealth of Puerto Rico; (5) the term "small-business concern" shall have the same meaning as in the Small Business Act; and (6) the term "development companies" means enterprises incorporated under State law with the authority to promote and assist the growth and development of small-business concerns in the areas covered by their operations. TITLE II-SMALL BUSINESS INVESTMENT DIVISION OF ESTABLISHMENT OF SMALL BUSINESS INVESTMENT DIVISION SEC. 201. There is hereby established in the Small Business Administration a division to be known as the Small Business Investment Division. The Division shall be headed by a Deputy Administrator who shall be appointed by the Administrator, and shall receive compensation at the rate provided by law for other deputy administrators of the Small Business Administration. The powers conferred by this Act upon the Administration shall be exercised by the Administration through the Small Business Investment Division, and the powers herein conferred upon the Administrator shall be exercised by him through the Deputy Administrator appointed hereunder. In the performance of, and with respect to the functions, powers, and duties vested by this Act, the Administrator and the Administration shall (in addition to any authority otherwise vested by this Act) have the functions, powers, and duties set forth in the Small Business Act, and the provisions of sections 13 and 16 of that Act, insofar as applicable, are extended to apply to the functions of the Administrator and the Administration under this Act. PROVISION AND PURPOSES OF FUNDS SEC. 202. (a) Section 4 (c) of the Small Business Act is amended— (1) by striking out "$650,000,000" each place it appears and inserting in lieu thereof "$900,000,000”; 39-290 0-64--6 |