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Title 13—Business Credit and


Part 101

CHAPTER Small Business Administration

CHAPTER 1-Economic Development Administration, Department of




Part 101 102 103 104

105 106 107 108 109 110 111 112

Disclosure of information.
Appearances and compensation of persons appearing before SBA.
Proceedings to suspend or revoke the privilege of any agent to appear before

Standards of conduct.
Lease guarantee.
Small business investment companies.
Loans to State and local development companies.
Adjudicative proceedings; small business investment companies.
Investigations; small business investment companies.
System of account classifications for small business investment companies.
Nondiscrimination in Federally assisted program of SBA-effectuation of

Title VI of the Civil Rights Act of 1964.
Nondiscrimination in financial assistance programs of SBA-effectuation of

policies of Federal Government and SBA Administrator.
Administrative claims under Federal Tort Claims Act.
Economic opportunity loans.
Loan policy.
Small business size standards.
Business loans.
Disaster loans.
Procurement and technical assistance.
Research and development assistance.
Defense production pools.
Joint set-asides.
Grants for small business research.


114 119 120 121 122 123 124 125 126 127 128


SBA=Small Business Administration.
SBID=The Small Business Investment Division of SBA.

RFC=Reconstruction Finance Corporation.
CROSS REFERENCE: For regulations of the Securities and Exchange Commission, see 17 CFR,
Chapter II.

PART 101-ADMINISTRATION Sec. 101.1 Purpose, function, general organiza

tion. 101.2 Organization of the Washington Of

fice-Administrator. 101.2-1 General Counsel. 101.2-2 Associate Administrator for Finan

cial Assistance. 101.2-3 Associate Administrator for Investo

ment. 101.24 Associate Administrator for Pro

curement and Management As

sistance. 101.2–5 Assistant Administrator for Admin

istration. 101.2-6 Assistant Administrator for con

gressional and Public Affairs. 101.247 Assistant Administrator for Plan

ning, Research and Analysis. 101.3 Field Offices. 101.3-1 Listing of Field Ofices. 101.4 List of public-use SBA forms. 101.5 Statutory provisions. 101.5-1 Seal. 101.5-2 Litigation. 101.5-3 Employment of fee counsel. 101.5-4 Miscellaneous.

AUTHORITY: The provisions of this part 101 issued under 5 U.S.C. 552, 15 U.S.C. 631 note, 661 note. § 101.1 Purpose, function, general or

ganization. (a) Purpose. To aid, counsel, assist, and protect the interests of small business concerns; to insure that a fair proportion of the total Government purchases and contracts for supplies, services, and research and development be placed with small business enterprises; to insure that a fair proportion of the total sales of Government property be made to small business enterprises; to make loans to small business concerns and to victims of floods or other catastrophes; to license and regulate small business investment companies; to make loans to small business investment companies; to make loans to State and local development companies; and to improve the management skills of the owners of small business concerns with direct action programs and through established channels of business relations.

(b) Functions. (1) To provide financial counseling and make direct or bank participation loans to small business concerns to finance plant construction, conversion, expansion, or to finance the acquisition of equipment, facilities, machinery, supplies, or materials and to

furnish such concerns with working capital if necessary; make loans to corporations 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 purposes; make direct or bank participation loans to aid victims of floods or other natural catastrophes to repair, rebuild or replace their homes, businesses, or other property; make direct or bank participation loans to assist small businesses which have sustained substantial economic injury resulting from a natural disaster; make direct or bank participation loans to assist small businesses displaced by a federally aided urban renewal or highway construction program, or any other construction conducted with funds provided by the Federal Government; make direct or bank participation loans to assist small businesses that have suffered substantial economic injury as a result of their inability to process or market & product for human consumption because of disease or toxicity occurring in such product through natural or undetermined causes; to process, take final action on and service loans for the rehabilitation of business property owners or tenants in urban renewal areas; grant. lease guarantees to small firms displaced by federally aided construction or urban renewal projects or those eligible for economic opportunity loans; make direct or bank participation loans on the basis of certifications made by the Secretary of Commerce to assist firms to adjust to changed economic conditions resulting from increased competition from imported articles; and make, participate in, or guarantee economic opportunity loans made under provisions contained in title IV of the Economic Opportunity Act.

(2) TO certify to Government procurement officers as to the capacity and credit of a small business concern to perform a specific Government contract; encourage letting of subcontracts by Government prime contractors to small business concerns; participate with other Government agencies in establishing total Government goals for awards to small business; to review procurement procedures, records and contract files of other Government agencies for the purpose of checking the effectiveness of the set-aside program and its administration; consult with other Government agencies in connection with their issuance of orders or in the formulation of policies affecting small business concerns; approve small business defense production pools and research and development pools; enter into Government prime contracts and sublet their performance to small business concerns; inventory productive facilities of small business concerns; consult with Goyernment agencies to insure fair and reasonable treatment for small business concerns; ascertain and coordinate the means whereby the productive capacity of small business concerns can be utilized most effectively; to cosponsor small business management courses and conferences; encourage research into the management problems of small business concerns, prepare leaflets and booklets containing new and pertinent information on

management; counsel individual small businessmen, as well as prospective businessmen, on their management problems; conduct workshops for prospective business owners; work with large manufacturers, wholesalers and trade associations for the purpose of encouraging them to initiate or expand improved management development programs for their small customers, suppliers or members; enlist the volunteer aid of retired executives for assisting small businessmen in overcoming their management and related problems; assist small business concerns to obtain Government contracts for research and development, to obtain the benefits of Governmentsponsored research and development and to provide technical assistance to small businesses.

(3) To license, regulate, and provide financial assistance to small business investment companies for the purpose of improving and stimulating the national economy and the small business segment thereof. The sole function of such small business investment companies is to provide equity capital, long-term loans, and advisory services to small business concerns. To make loans to State and local development companies for the same general purpose. Proceeds received by State development companies may be used to provide equity capital and long

term loans to small business concerns, or to provide plant facilities for use by small business concerns. Proceeds received by local development companies may be used only to provide plant facilities for use by small business concerns.

(4) To conduct economic and statistical research pertaining to matters materially affecting the competitive strength of small business, and of the effect on small business of Federal laws, programs, and regulations, and makes recommendations to appropriate Federal agencies for the adjustment of such programs and regulations to the need of small business; analyze the economic and social effects of SBA activities and prepare recommendations concerning longterm legislative requirements; maintain liaison with universities, research groups and other bodies that are conducting research and studying economic factors pertaining to small business, and to furnish economic data and statistical information to aid such parties in carrying out these types of studies; and to establish “size standards" to designate what business enterprises shall be designated as small business concerns with respect to: Government procurement, lending, disposal of property, and allocation or distribution of materials or supplies, priority payments under section 213a of the War Claims Act of 1948 as amended, and assistance from licensed small business investment companies and State and local development companies.

(c) General 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 two Associate Administrators under the Small Business Act and one Associate Administrator under the Small Business Investment Act. The Administrator is authorized to appoint a Deputy Administrator who shall be Acting Administrator of the Administration during the absence or disability of the Administrator or in the event of a vacancy in the Office of the Administrator. The Administrator is authorized, subject to the Civil Service and Classification Laws, to select, employ, appoint, and fix the compensation of such officers, employees, attorneys, and agents as shall be necessary to carry out the provisions of the

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