Title 15 — Commerce and Trade — § 634. General powers
Summary
This page reproduces 15 U.S.C. § 634, General powers, from Title 15 of the United States Code, which sets out the powers of the Administrator of the Small Business Administration. Under it the Administrator may sue and be sued in any court of record of a State having general jurisdiction or in any United States district court, and may make rules and regulations to carry out the chapter. The section also establishes an Office of Hearings and Appeals in the Administration to impartially decide matters relating to program decisions. Its notes include a 1974 law that directed the General Accounting Office to conduct a full-scale audit of the Small Business Administration.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
Page 791 TITLE 15—COMMERCE AND TRADE § 634
AUDIT BY GENERAL ACCOUNTING OFFICE OF SMALL
BUSINESS ADMINISTRATION; REPORT TO CONGRESS
Pub. L. 93–386, § 13, Aug. 23, 1974, 88 Stat. 750, directed
General Accounting Office to conduct a full-scale audit
of Small Business Administration, including all field
offices and to submit audit to House and Senate not
later than six months from Aug. 23, 1974.
NONAVAILABILITY OF UNOBLIGATED FUNDS AFTER
JUNE 30, 1974
Pub. L. 93–237, § 1, Jan. 2, 1974, 87 Stat. 1023, provided
in part that any additional amounts authorized by Pub.
L. 93–237 [amending this section, sections 636 and 639 of
this title, section 1961 of Title 7, Agriculture, and sec-
tion 3142–1 of Title 42, The Public Health and Welfare,
and enacting provisions set out as notes under this sec-
tion, section 636 of this title, and sections 1961 and 1969
of Title 7] which were not obligated by June 30, 1974,
were no longer to be available after that date.
ADDITIONAL CAPITAL FOR REVOLVING FUND
The following acts appropriated additional capital:
1965—$76,000,000—Pub. L. 89–309, ch. IX, Oct. 31, 1965,
79 Stat. 1151.
$84,000,000—Pub. L. 89–309, ch. IX, Oct. 31, 1965, 79
Stat. 1151 [effective only upon enactment into law of
authorizing legislation].
$150,000,000—Pub. L. 89–164, title V, Sept. 2, 1965, 79
Stat. 641.
$100,000,000—Pub. L. 89–16, title I, ch. IX, Apr. 30, 1965,
79 Stat. 92.
1964—$45,000,000—Pub. L. 88–635, ch. IX, Oct. 7, 1964, 78
Stat. 1032.
1963—$90,000,000—Pub. L. 88–245, title V, Dec. 30, 1963,
77 Stat. 798.
1962—$300,000,000—Pub. L. 87–843, title V, Oct. 18, 1962,
76 Stat. 1102.
$40,000,000—Pub. L. 87–545, title I, July 25, 1962, 76
Stat. 213.
1961—$160,000,000—Pub. L. 87–332, Sept. 30, 1961, 75
Stat. 742.
$20,000,000—Pub. L. 87–125, title IV, Aug. 3, 1961, 75
Stat. 281.
1960—$50,000,000—Pub. L. 86–451, title III, May 13, 1960,
74 Stat. 102.
1959—$150,000,000—Pub. L. 86–88, title III, July 13, 1959,
73 Stat. 209.
1958—$200,000,000—Pub. L. 85–766, ch. II, Aug. 27, 1958,
72 Stat. 867.
$20,000,000—Pub. L. 85–457, June 13, 1958, 72 Stat. 186.
1957—$100,000,000—Pub. L. 85–170, ch. II, Aug. 28, 1957,
71 Stat. 428.
$45,000,000—Pub. L. 85–19, ch. I, Apr. 20, 1957, 71 Stat.
16.
1956—$50,000,000—Act June 20, 1956, ch. 415, title III, 70
Stat. 325.
BUSINESS LOAN AND INVESTMENT FUND; INCREASE IN
FINANCING FUNCTIONS; MONTHLY REPORTS TO CON-
GRESS
Pub. L. 91–151, title III, Dec. 23, 1969, 83 Stat. 378, pro-
vided that: ‘‘The Small Business Administration shall
promptly increase the level of its financing functions
utilizing the business loan and investment fund estab-
lished under section 4(c)(1)(B) of the Small Business
Act (15 U.S.C. 633(c)(1)(B)) [subsec. (c)(1)(B) of this sec-
tion] by $70,000,000 above the level prevailing at the
time of enactment of this Act [Dec. 23, 1969]. The Small
Business Administration shall submit to Congress a
monthly report of its implementation of this section.’’
TRANSFER OF FUNDS FOR TRADE ADJUSTMENT LOANS
Pub. L. 89–409, § 3(b), May 2, 1966, 80 Stat. 133, provided
in part that any unexpended balances of appropriations
heretofore appropriated for the purposes of such section
[former section 637a of this title] were transferred to
the business loan and investment fund established by
section 4(c)(1) of the Small Business Act [subsec. (c)(1)
of this section].
Such transfer of funds as effective July 1, 1966, see
section 3(c) of Pub. L. 89–409, set out as Effective Date
of 1966 Amendment note under section 636 of this title.
Executive Documents
TERMINATION OF TRUST TERRITORY OF THE PACIFIC
ISLANDS
For termination of Trust Territory of the Pacific Is-
lands, see note set out preceding section 1681 of Title
48, Territories and Insular Possessions.
TRANSFER OF FUNCTIONS
Loan Policy Board, provided for in subsec. (d) of this
section, abolished and functions, including functions of
chairman and other officers, transferred to Adminis-
trator of Small Business Administration by sections
11(b) and 13(a) of Reorg. Plan No. 4 of 1965, eff. July 27,
1965, 30 F.R. 9353, 79 Stat. 1321, set out in the Appendix
to Title 5, Government Organization and Employees.
§ 633a. Detailed justification for proposed
changes in budget requests
Beginning in fiscal year 2013 and each fiscal
year thereafter, the budget request for the
Small Business Administration shall provide a
detailed justification of any proposed changes
from the enacted level by individual appropria-
tion. The detailed justification shall include at
a minimum a description of each credit and non-
credit program including amount of funding and
costs by appropriation account and fiscal year.
For activities funded in multiple appropriations,
the budget justification shall specify the
amount included in each enacted appropriation,
the amount proposed in the budget year and a
justification for any proposed changes.
(Pub. L. 112–74, div. C, title V, § 532, Dec. 23, 2011,
125 Stat. 923.)
Editorial Notes
CODIFICATION
Section was enacted as part of the Financial Services
and General Government Appropriations Act, 2012, and
also as part of the Consolidated Appropriations Act,
2012, and not as part of the Small Business Act which
comprises this chapter.
§ 634. General powers
(a) Seal; appointment and compensation of per-
sonnel; use of other services and facilities
The Administration shall have power to adopt,
alter, and use a seal, which shall be judicially
noticed. The Administrator is authorized, sub-
ject to the civil service and classification laws,
to select, employ, appoint, and fix the com-
pensation of such officers, employees, attorneys,
and agents as shall be necessary to carry out the
provisions of this chapter; to define their au-
thority and duties; and to pay the costs of quali-
fication of certain of them as notaries public.
The Administration, with the consent of any
board, commission, independent establishment,
or executive department of the Government,
may avail itself on a reimbursable or non-
reimbursable basis of the use of information,
services, facilities (including any field service
thereof), officers, and employees thereof, in car-
rying out the provisions of this chapter.
§ 634 TITLE 15—COMMERCE AND TRADE Page 792
(b) Powers of Administrator
In the performance of, and with respect to, the
functions, powers, and duties vested in him by
this chapter the Administrator may—
(1) sue and be sued in any court of record of
a State having general jurisdiction, or in any
United States district court, and jurisdiction
is conferred upon such district court to deter-
mine such controversies without regard to the
amount in controversy; but no attachment, in-
junction, garnishment, or other similar proc-
ess, mesne or final, shall be issued against the
Administrator or his property;
(2) under regulations prescribed by him, as-
sign or sell at public or private sale, or other-
wise dispose of for cash or credit, in his discre-
tion and upon such terms and conditions and
for such consideration as the Administrator
shall determine to be reasonable, any evidence
of debt, contract, claim, personal property, or
security assigned to or held by him in connec-
tion with the payment of loans granted under
this chapter, and to collect or compromise all
obligations assigned to or held by him and all
legal or equitable rights accruing to him in
connection with the payment of such loans
until such time as such obligations may be re-
ferred to the Attorney General for suit or col-
lection;
(3) deal with, complete, renovate, improve,
modernize, insure, or rent, or sell for cash or
credit upon such terms and conditions and for
such consideration as the Administrator shall
determine to be reasonable, any real property
conveyed to or otherwise acquired by him in
connection with the payment of loans granted
under this chapter;
(4) pursue to final collection, by way of com-
promise or otherwise, all claims against third
parties assigned to the Administrator in con-
nection with loans made by him. This shall in-
clude authority to obtain deficiency judg-
ments or otherwise in the case of mortgages
assigned to the Administrator. Section 6101 of
title 41 shall not be construed to apply to any
contract of hazard insurance or to any pur-
chase or contract for services or supplies on
account of property obtained by the Adminis-
trator as a result of loans made under this
chapter if the premium therefor or the amount
thereof does not exceed $1,000. The power to
convey and to execute in the name of the Ad-
ministrator deeds of conveyance, deeds of re-
lease, assignments and satisfactions of mort-
gages, and any other written instrument relat-
ing to real property or any interest therein ac-
quired by the Administrator pursuant to the
provisions of this chapter may be exercised by
the Administrator or by any officer or agent
appointed by him without the execution of any
express delegation of power or power of attor-
ney. Nothing in this section shall be construed
to prevent the Administrator from delegating
such power by order or by power of attorney,
in his discretion, to any officer or agent he
may appoint;
(5) acquire, in any lawful manner, any prop-
erty (real, personal, or mixed, tangible or in-
tangible), whenever deemed necessary or ap-
propriate to the conduct of the activities au-
thorized in sections 636(a) and 636(b) of this
title;
(6) make such rules and regulations as he
deems necessary to carry out the authority
vested in him by or pursuant to this chapter;
(7) in addition to any powers, functions,
privileges and immunities otherwise vested in
him, take any and all actions (including the
procurement of the services of attorneys by
contract in any office where an attorney or at-
torneys are not or cannot be economically em-
ployed full time to render such services) when
he determines such actions are necessary or
desirable in making, servicing, compromising,
modifying, liquidating, or otherwise dealing
with or realizing on loans made under the pro-
visions of this chapter: Provided, That with re-
spect to deferred participation loans, includ-
ing loans guaranteed under paragraph (15) or
(35) of section 636(a) of this title, the Adminis-
trator may, in the discretion of and pursuant
to regulations promulgated by the Adminis-
trator, authorize participating lending institu-
tions to take actions relating to loan servicing
on behalf of the Administrator, including de-
termining eligibility and creditworthiness and
loan monitoring, collection, and liquidation;
(8) pay the transportation expenses and per
diem in lieu of subsistence expenses, in accord-
ance with subchapter I of chapter 57 of title 5,
for travel of any person employed by the Ad-
ministration to render temporary services not
in excess of six months in connection with any
disaster referred to in section 636(b) of this
title from place of appointment to, and while
at, the disaster area and any other temporary
posts of duty and return upon completion of
the assignment: Provided, That the Adminis-
trator may extend the six-month limitation
for an additional six months if the Adminis-
trator determines the extension is necessary
to continue efficient disaster loan making ac-
tivities;
(9) accept the services and facilities of Fed-
eral, State, and local agencies and groups,
both public and private, and utilize such gra-
tuitous services and facilities as may, from
time to time, be necessary, to further the ob-
jectives of section 636(b) of this title;
(10) upon purchase by the Administration of
any deferred participation entered into under
section 636 of this title, continue to charge a
rate of interest not to exceed that initially
charged by the participating institution on
the amount so purchased for the remaining
term of the indebtedness;
(11) make such investigations as he deems
necessary to determine whether a recipient of
or participant in any assistance under this
chapter or any other person has engaged or is
about to engage in any acts or practices which
constitute or will constitute a violation of any
provision of this chapter, or of any rule or reg-
ulation under this chapter, or of any order
issued under this chapter. The Administration
shall permit any person to file with it a state-
ment in writing, under oath or otherwise as
the Administration shall determine, as to all
the facts and circumstances concerning the
matter to be investigated. For the purpose of
any investigation, the Administration is em-
powered to administer oaths and affirmations,
subpena witnesses, compel their attendance,
Page 793 TITLE 15—COMMERCE AND TRADE § 634
take evidence, and require the production of
any books, papers, and documents which are
relevant to the inquiry. Such attendance of
witnesses and the production of any such
records may be required from any place in the
United States. In case of contumacy by, or re-
fusal to obey a subpena issued to, any person,
including a recipient or participant, the Ad-
ministration may invoke the aid of any court
of the United States within the jurisdiction of
which such investigation or proceeding is car-
ried on, or where such person resides or carries
on business, in requiring the attendance and
testimony of witnesses and the production of
books, papers, and documents; and such court
may issue an order requiring such person to
appear before the Administration, there to
produce records, if so ordered, or to give testi-
mony touching the matter under investiga-
tion. Any failure to obey such order of the
court may be punished by such court as a con-
tempt thereof. All process in any such case
may be served in the judicial district whereof
such person is an inhabitant or wherever he
may be found;
(12) impose, retain, and use only those fees
which are specifically authorized by law or
which are in effect on September 30, 1994, and
in the amounts and at the rates in effect on
such date, except that the Administrator may,
subject to approval in appropriations Acts, im-
pose, retain, and utilize, additional fees—
(A) not to exceed $100 for each loan serv-
icing action (other than a loan assumption)
requested after disbursement of the loan, in-
cluding any substitution of collateral, re-
lease or substitution of a guarantor, re-
amortization, or similar action;
(B) not to exceed $300 for loan assump-
tions;
(C) not to exceed 1 percent of the amount
of requested financings under title III of the
Small Business Investment Act of 1958 [15
U.S.C. 681 et seq.] for which the applicant re-
quests a commitment from the Administra-
tion for funding during the following year;
and
(D) to recover the direct, incremental cost
involved in the production and dissemina-
tion of compilations of information produced
by the Administration under the authority
of this chapter and the Small Business In-
vestment Act of 1958 [15 U.S.C. 661 et seq.];
(13) collect, retain and utilize, subject to ap-
proval in appropriations Acts, any amounts
collected by fiscal transfer agents and not
used by such agent as payment of the cost of
loan pooling or debenture servicing oper-
ations, except that amounts collected under
this paragraph and paragraph (12) shall be uti-
lized solely to facilitate the administration of
the program that generated the excess
amounts; and
(14) require any lender authorized to make
loans under section 636 of this title to pay ex-
amination and review fees, which shall be de-
posited in the account for salaries and ex-
penses of the Administration, and shall be
available for the costs of examinations, re-
views, and other lender oversight activities.
(c) Procurement of experts and consultants; com-
pensation and expenses
To such extent as he finds necessary to carry
out the provisions of this chapter, the Adminis-
trator is authorized to procure the temporary
(not in excess of one year) or intermittent serv-
ices of experts or consultants or organizations
thereof, including stenographic reporting serv-
ices, by contract or appointment, and in such
cases such services shall be without regard to
the civil-service and classification laws and, ex-
cept in the case of stenographic reporting serv-
ices by organizations, without regard to section
6101 of title 41. Any individual so employed may
be compensated at a rate not in excess of the
daily equivalent of the highest rate payable
under section 5332 of title 5, including travel
time, and, while such individual is away from
his or her home or regular place of business, he
or she may be allowed travel expenses (including
per diem in lieu of subsistence) as authorized by
section 5703 of title 5.
(d) Safety deposit box rentals
Section 3324(a) and (b) of title 31 shall not
apply to prepayments of rentals made by the
Administration on safety deposit boxes used by
the Administration for the safeguarding of in-
struments held as security for loans or for the
safeguarding of other documents.
(e) Undertaking or suspension of payment obli-
gation; period; extension of maturity; repay-
ment agreement; ‘‘required payments’’ de-
fined
(1) Subject to the requirements and conditions
contained in this subsection, upon application
by a small business concern which is the recipi-
ent of a loan made under this chapter, the Ad-
ministration may undertake the small business
concern’s obligation to make the required pay-
ments under such loan or may suspend such ob-
ligation if the loan was a direct loan made by
the Administration. While such payments are
being made by the Administration pursuant to
the undertaking of such obligation or while such
obligation is suspended, no such payment with
respect to the loan may be required from the
small business concern.
(2) The Administration may undertake or sus-
pend for a period of not to exceed 5 years any
small business concern’s obligation under this
subsection only if—
(A) without such undertaking or suspension
of the obligation, the small business concern
would, in the sole discretion of the Adminis-
tration, become insolvent or remain insolvent;
(B) with the undertaking or suspension of
the obligation, the small business concern
would, in the sole discretion of the Adminis-
tration, become or remain a viable small busi-
ness entity; and
(C) the small business concern executes an
agreement in writing satisfactory to the Ad-
ministration as provided by paragraph (4).
(3) Notwithstanding the provisions of sections
636(a)(4)(C) and 636(i)(1) of this title, the Admin-
istration may extend the maturity of any loan
on which the Administration undertakes or sus-
pends the obligation pursuant to this subsection
for a corresponding period of time.
§ 634 TITLE 15—COMMERCE AND TRADE Page 794
(4)(A) Prior to the undertaking or suspension
by the Administration of any small business
concern’s obligation under this subsection, the
Administration, consistent with the purposes
sought to be achieved herein, shall require the
small business concern to agree in writing to
repay to it the aggregate amount of the pay-
ments which were required under the loan dur-
ing the period for which such obligation was un-
dertaken or suspended, either—
(i) by periodic payments not less in amount
or less frequently falling due than those which
were due under the loan during such period, or
(ii) pursuant to a repayment schedule agreed
upon by the Administration and the small
business concern, or
(iii) by a combination of the payments de-
scribed in clause (i) and clause (ii).
(B) In addition to requiring the small business
concern to execute the agreement described in
subparagraph (A), the Administration shall,
prior to the undertaking or suspension of the ob-
ligation, take such action, and require the small
business concern to take such action as the Ad-
ministration deems appropriate in the cir-
cumstances, including the provision of such se-
curity as the Administration deems necessary or
appropriate to insure that the rights and inter-
ests of the lender (Small Business Administra-
tion or participant) will be safeguarded ade-
quately during and after the period in which
such obligation is so undertaken or suspended.
(5) The term ‘‘required payments’’ with re-
spect to any loan means payments of principal
and interest under the loan.
(f) Sale of guaranteed portion of loans by lender
or subsequent holder; limitations; secondary
market
(1) The guaranteed portion of any loan made
pursuant to this chapter may be sold by the
lender, and by any subsequent holder, consistent
with regulations on such sales as the Adminis-
tration shall establish, subject to the following
limitations:
(A) prior to the Administration’s approval of
the sale, or upon any subsequent resale, of any
loan guaranteed by the Administration, if the
lender certifies that such loan has been prop-
erly closed and that the lender has substan-
tially complied with the provisions of the
guarantee agreement and the regulations of
the Administration, the Administration shall
review and approve only materials not pre-
viously approved;
(B) all fees due the Administration on a
guaranteed loan shall have been paid in full
prior to any sale; and
(C) each loan, except each loan made under
section 636(a)(14) of this title, shall have been
fully disbursed to the borrower prior to any
sale.
(2) After a loan is sold in the secondary mar-
ket, the lender shall remain obligated under its
guarantee agreement with the Administration,
and shall continue to service the loan in a man-
ner consistent with the terms and conditions of
such agreement.
(3) The Administration shall develop such pro-
cedures as are necessary for the facilitation, ad-
ministration, and promotion of secondary mar-
ket operations, and for assessing the increase of
small business access to capital at reasonable
rates and terms as a result of secondary market
operations. Beginning on March 31, 1997, the sale
of the unguaranteed portion of any loan made
under section 636(a) of this title shall not be per-
mitted until a final regulation that applies uni-
formly to both depository institutions and other
lenders is promulgated by the Administration
setting forth the terms and conditions under
which such sales can be permitted, including
maintenance of appropriate reserve require-
ments and other safeguards to protect the safety
and soundness of the program.
(4) Nothing in this subsection or subsection (g)
of this section shall be interpreted to impede or
extinguish the right of the borrower or the suc-
cessor in interest to such borrower to prepay (in
whole or in part) any loan made pursuant to sec-
tion 636(a) of this title, the guaranteed portion
of which may be included in such trust or pool,
or to impede or extinguish the rights of any
party pursuant to section 636(a)(6)(C) of this
title or subsection (e) of this section.
(g) Trust certificates; guarantee of timely pay-
ments of principal and interest; full faith and
credit of United States; collection of fees;
subrogation; division of loan guarantees
(1) The Administration is authorized to issue
trust certificates representing ownership of all
or a fractional part of the guaranteed portion of
one or more loans which have been guaranteed
by the Administration under this chapter, or
under section 696 of this title: Provided, That
such trust certificates shall be based on and
backed by a trust or pool approved by the Ad-
ministration and composed solely of the entire
guaranteed portion of such loans.
(2) The Administration is authorized, upon
such terms and conditions as are deemed appro-
priate, to guarantee the timely payment of the
principal of and interest on trust certificates
issued by the Administration or its agent for
purposes of this subsection. Such guarantee
shall be limited to the extent of principal and
interest on the guaranteed portions of loans
which compose the trust or pool. In the event
that a loan in such trust or pool is prepaid, ei-
ther voluntarily or in the event of default, the
guarantee of timely payment of principal and
interest on the trust certificates shall be re-
duced in proportion to the amount of principal
and interest such prepaid loan represents in the
trust or pool. Interest on prepaid or defaulted
loans shall accrue and be guaranteed by the Ad-
ministration only through the date of payment
on the guarantee. During the term of the trust
certificate, it may be called for redemption due
to prepayment or default of all loans consti-
tuting the pool.
(3) The full faith and credit of the United
States is pledged to the payment of all amounts
which may be required to be paid under any
guarantee of such trust certificates issued by
the Administration or its agent pursuant to this
subsection.
(4)(A) The Administration may collect a fee
for any loan guarantee sold into the secondary
market under subsection (f) in an amount equal
Page 795 TITLE 15—COMMERCE AND TRADE § 634
to not more than 50 percent of the portion of the
sale price that exceeds 110 percent of the out-
standing principal amount of the portion of the
loan guaranteed by the Administration. Any
such fee imposed by the Administration shall be
collected by the Administration or by the agent
which carries out on behalf of the Administra-
tion the central registration functions required
by subsection (h) of this section and shall be
paid to the Administration and used solely to
reduce the subsidy on loans guaranteed under
section 636(a) of this title: Provided, That such
fee shall not be charged to the borrower whose
loan is guaranteed: and, Provided further, That
nothing herein shall preclude any agent of the
Administration from collecting a fee approved
by the Administration for the functions de-
scribed in subsection (h)(2).1
(B) The Administration is authorized to im-
pose and collect, either directly or through a fis-
cal and transfer agent, a reasonable penalty on
late payments of the fee authorized under sub-
paragraph (A) in an amount not to exceed 5 per-
cent of such fee per month plus interest.
(C) The Administration may contract with an
agent to carry out, on behalf of the Administra-
tion, the assessment and collection of the an-
nual fee established under section 636(a)(23) of
this title. The agent may receive, as compensa-
tion for services, any interest earned on the fee
while in the control of the agent before the time
at which the agent is contractually required to
remit the fee to the Administration.
(5)(A) In the event the Administration pays a
claim under a guarantee issued under this sub-
section, it shall be subrogated fully to the rights
satisfied by such payment.
(B) No State or local law, and no Federal law,
shall preclude or limit the exercise by the Ad-
ministration of its ownership rights in the por-
tions of loans constituting the trust or pool
against which the trust certificates are issued.
(6) If the amount of the guaranteed portion of
any loan under section 636(a) of this title is
more than $500,000, the Administrator shall,
upon request of a pool assembler, divide the loan
guarantee into increments of $500,000 and 1 in-
crement of any remaining amount less than
$500,000, in order to permit the maximum
amount of any loan in a pool to be not more
than $500,000. Only 1 increment of any loan guar-
antee divided under this paragraph may be in-
cluded in the same pool. Increments of loan
guarantees to different borrowers that are di-
vided under this paragraph may be included in
the same pool.
(h) Central registration of loans and trust certifi-
cates; contracts with agent; disclosures by
sellers of guaranteed portions of loans; regu-
lation of brokers and dealers; electronic reg-
istration
(1) Upon the adoption of final rules and regula-
tions, the Administration shall—
(A) provide for a central registration of all
loans and trust certificates sold pursuant to
subsections (f) and (g) of this section;
(B) contract with an agent to carry out on
behalf of the Administration the central reg-
1 See References in Text note below.
istration functions of this section and the
issuance of trust certificates to facilitate pool-
ing. Such agent shall provide a fidelity bond
or insurance in such amounts as the Adminis-
tration determines to be necessary to fully
protect the interest of the Government;
(C) prior to any sale, require the seller to
disclose to a purchaser of the guaranteed por-
tion of a loan guaranteed under this chapter
and to the purchaser of a trust certificate
issued pursuant to subsection (g), information
on the terms, conditions, and yield of such in-
strument. As used in this paragraph, if the in-
strument being sold is a loan, the term ‘‘sell-
er’’ does not include (A) an entity which made
the loan or (B) any individual or entity which
sells three or fewer guaranteed loans per year;
and
(D) have the authority to regulate brokers
and dealers in guaranteed loans and trust cer-
tificates sold pursuant to subsections (f) and
(g) of this section.
(2) The agent described in paragraph (1)(B)
may be compensated through any of the fees as-
sessed under this section and any interest
earned on any funds collected by the agent while
such funds are in the control of the agent and
before the time at which the agent is contrac-
tually required to transfer such funds to the Ad-
ministration or to the holders of the trust cer-
tificates, as appropriate.
(3) Nothing in this subsection shall prohibit
the utilization of a book-entry or other elec-
tronic form of registration for trust certificates.
The Administration may, with the consent of
the Secretary of the Treasury, use the book-
entry system of the Federal Reserve System.
(i) Office of Hearings and Appeals
(1) Establishment
(A) Office
There is established in the Administration
an Office of Hearings and Appeals—
(i) to impartially decide matters relating
to program decisions of the Adminis-
trator—
(I) for which Congress requires a hear-
ing on the record; or
(II) that the Administrator designates
for hearing by regulation; and
(ii) which shall contain the office of the
Administration that handles requests sub-
mitted pursuant to sections 552 of title 5
(commonly referred to as the ‘‘Freedom of
Information Act’’) and maintains records
pursuant to section 552a of title 5 (com-
monly referred to as the ‘‘Privacy Act of
1974’’).
(B) Jurisdiction
(i) In general
Except as provided in clause (ii), the Of-
fice of Hearings and Appeals shall hear ap-
peals of agency actions under or pursuant
to this chapter, the Small Business Invest-
ment Act of 1958 (15 U.S.C. 661 et seq.), and
title 13 of the Code of Federal Regulations,
and shall hear such other matters as the
Administrator may determine appropriate.
§ 634 TITLE 15—COMMERCE AND TRADE Page 796
(ii) Exception
The Office of Hearings and Appeals shall
not adjudicate disputes that require a
hearing on the record, except disputes per-
taining to the small business programs de-
scribed in this chapter.
(C) Associate Administrator
The head of the Office of Hearings and Ap-
peals shall be the Chief Hearing Officer ap-
pointed under section 633(b)(1) of this title,
who shall be responsible to the Adminis-
trator.
(2) Chief Hearing Officer duties
(A) In general
The Chief Hearing Officer shall—
(i) be a career appointee in the Senior
Executive Service and an attorney li-
censed by a State, commonwealth, terri-
tory or possession of the United States, or
the District of Columbia; and
(ii) be responsible for the operation and
management of the Office of Hearings and
Appeals.
(B) Alternative dispute resolution
The Chief Hearing Officer may assign a
matter for mediation or other means of al-
ternative dispute resolution.
(3) Hearing officers
(A) In general
The Office of Hearings and Appeals shall
appoint Hearing Officers to carry out the du-
ties described in paragraph (1)(A)(i).
(B) Conditions of employment
A Hearing Officer appointed under this
paragraph—
(i) shall serve in the excepted service as
an employee of the Administration under
section 2103 of title 5 and under the super-
vision of the Chief Hearing Officer;
(ii) shall be classified at a position to
which section 5376 of title 5 applies; and
(iii) shall be compensated at a rate not
exceeding the maximum rate payable
under such section.
(C) Authority; powers
Notwithstanding section 556(b) of title 5—
(i) a Hearing Officer may hear cases aris-
ing under section 554 of such title;
(ii) a Hearing Officer shall have the pow-
ers described in section 556(c) of such title;
and
(iii) the relevant provisions of sub-
chapter II of chapter 5 of such title (except
for section 556(b) of such title) shall apply
to such Hearing Officer.
(D) Treatment of current personnel
An individual serving as a Judge in the Of-
fice of Hearings and Appeals (as that posi-
tion and office are designated in section
134.101 of title 13, Code of Federal Regula-
tions) on the effective date of this sub-
section shall be considered as qualified to be,
and redesignated as, a Hearing Officer.
(4) Determinations regarding status of con-
cerns
(A) In general
Not later than 2 days after the date on
which a final determination that a business
concern does not meet the requirements of
the status such concern claims to hold is
made, such concern or the Administrator, as
applicable, shall update the status of such
concern in the System for Award Manage-
ment (or any successor system).
(B) Administrator updates
If such concern fails to update the status
of such concern as described in subparagraph
(A), not later than 2 days after such failure
the Administrator shall make such update.
(C) Notification
A concern required to make an update de-
scribed under subparagraph (A) shall notify
a contracting officer for each contract with
respect to which such concern has an offer or
bid pending of the determination made
under subparagraph (A), if the concern finds,
in good faith, that such determination af-
fects the eligibility of the concern to per-
form such a contract.
(5) Hearing Officer defined
In this subsection, the term ‘‘Hearing Offi-
cer’’ means an individual appointed or redesig-
nated under this subsection who is an attorney
licensed by a State, commonwealth, territory
or possession of the United States, or the Dis-
trict of Columbia.
(Pub. L. 85–536, § 2[5], July 18, 1958, 72 Stat. 385;
Pub. L. 87–305, § 4, Sept. 26, 1961, 75 Stat. 666;
Pub. L. 87–367, title I, § 103(3), Oct. 4, 1961, 75
Stat. 787; Pub. L. 92–310, title II, § 224(a), June 6,
1972, 86 Stat. 206; Pub. L. 93–386, §§ 3(1), 10, Aug.
23, 1974, 88 Stat. 745, 749; Pub. L. 94–305, title II,
§ 208, June 4, 1976, 90 Stat. 671; Pub. L. 95–89, title
III, § 303, Aug. 4, 1977, 91 Stat. 558; Pub. L. 95–510,
§ 103, Oct. 24, 1978, 92 Stat. 1781; Pub. L. 96–302,
title I, § 114, July 2, 1980, 94 Stat. 838; Pub. L.
98–352, § 2, July 10, 1984, 98 Stat. 329; Pub. L.
100–590, title I, § 113, Nov. 3, 1988, 102 Stat. 2997;
Pub. L. 102–140, title VI, § 609(a), Oct. 28, 1991, 105
Stat. 825; Pub. L. 102–564, title III, § 307(d), Oct.
28, 1992, 106 Stat. 4264; Pub. L. 103–81, § 3(a), Aug.
13, 1993, 107 Stat. 780; Pub. L. 103–282, § 2, July 22,
1994, 108 Stat. 1422; Pub. L. 103–403, title VI, § 602,
Oct. 22, 1994, 108 Stat. 4202; Pub. L. 104–36, § 4(b),
Oct. 12, 1995, 109 Stat. 297; Pub. L. 104–208, div. D,
title I, § 103(e), title II, §§ 205(a), 208(i)(1), Sept. 30,
1996, 110 Stat. 3009–727, 3009–738, 3009–747; Pub. L.
106–554, § 1(a)(9) [title II, § 209], Dec. 21, 2000, 114
Stat. 2763, 2763A–683; Pub. L. 108–306, § 3, Sept. 24,
2004, 118 Stat. 1131; Pub. L. 108–447, div. K, title
I, § 131, Dec. 8, 2004, 118 Stat. 3452; Pub. L. 111–240,
title I, § 1117, Sept. 27, 2010, 124 Stat. 2509; Pub. L.
114–92, div. A, title VIII, § 869(a)(1), Nov. 25, 2015,
129 Stat. 936; Pub. L. 114–328, div. A, title XVIII,
§ 1833(a), Dec. 23, 2016, 130 Stat. 2661; Pub. L.
115–232, div. A, title VIII, § 862(b)(2), Aug. 13, 2018,
132 Stat. 1898; Pub. L. 117–81, div. A, title VIII,
§ 863, Dec. 27, 2021, 135 Stat. 1852.)
Editorial Notes
REFERENCES IN TEXT
The Small Business Investment Act of 1958, referred
to in subsecs. (b)(12)(C), (D) and (i)(1)(B)(i), is Pub. L.
85–699, Aug. 21, 1958, 72 Stat. 689, which is classified
principally to chapter 14B (§ 661 et seq.) of this title.
Title III of the Act is classified generally to subchapter
Page 797 TITLE 15—COMMERCE AND TRADE § 634
III (§ 681 et seq.) of chapter 14B of this title. For com-
plete classification of this Act to the Code, see Short
Title note set out under section 661 of this title and Ta-
bles.
Subsection (h)(2) of this section, referred to in subsec.
(g)(4)(A), was redesignated subsec. (h)(1)(B) by Pub. L.
104–208, div. D, title II, § 205(a)(1), (2), Sept. 30, 1996, 110
Stat. 3009–738.
The effective date of this subsection, referred to in
subsec. (i)(3)(D), probably means the date of enactment
of Pub. L. 114–92, which added subsec. (i) and which was
approved Nov. 25, 2015.
CODIFICATION
In subsec. (b)(4), ‘‘Section 6101 of title 41’’ substituted
for ‘‘Section 3709 of the Revised Statutes, as amended
(41 U.S.C., sec. 5)’’ on authority of Pub. L. 111–350, § 6(c),
Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41,
Public Contracts.
In subsec. (b)(8), ‘‘subchapter I of chapter 57 of title
5’’ substituted for ‘‘the Travel Expense Act of 1949’’ on
authority of Pub. L. 89–554, § 7(b), Sept. 6, 1966, 80 Stat.
631, the first section of which enacted Title 5, Govern-
ment Organization and Employees.
In subsec. (c), ‘‘section 6101 of title 41’’ substituted for
‘‘section 3709 of the Revised Statutes, as amended (41
U.S.C., sec. 5)’’ on authority of Pub. L. 111–350, § 6(c),
Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41,
Public Contracts.
In subsec. (d), ‘‘Section 3324(a) and (b) of title 31’’ sub-
stituted for ‘‘Section 3648 of the Revised Statutes (31
U.S.C. 529)’’ on authority of Pub. L. 97–258, § 4(b), Sept.
13, 1982, 96 Stat. 1067, the first section of which enacted
Title 31, Money and Finance.
PRIOR PROVISIONS
Prior similar provisions were contained in section 205
of act July 30, 1953, ch. 282, title II, 67 Stat. 234, as
amended by act Aug. 9, 1955, ch. 628, § 4, 69 Stat. 547,
which was classified to this section. See Codification
note set out under section 631 of this title.
AMENDMENTS
2021—Subsec. (i)(4), (5). Pub. L. 117–81 added par. (4)
and redesignated former par. (4) as (5).
2018—Subsec. (b)(7). Pub. L. 115–232 inserted
‘‘, including loans guaranteed under paragraph (15) or
(35) of section 636(a) of this title’’ after ‘‘deferred par-
ticipation loans’’.
2016—Subsec. (i)(1)(B). Pub. L. 114–328 amended sub-
par. (B) generally. Prior to amendment, text read as
follows: ‘‘The Office of Hearings and Appeals shall only
hear appeals of matters as described in this chapter,
the Small Business Investment Act of 1958 (15 U.S.C. 661
et seq.), and title 13 of the Code of Federal Regula-
tions.’’
2015—Subsec. (i). Pub. L. 114–92 added subsec. (i).
2010—Subsec. (g)(6). Pub. L. 111–240 added par. (6).
2004—Subsec. (b)(14). Pub. L. 108–447 added par. (14).
Subsec. (g)(4)(C). Pub. L. 108–306, § 3(1), added subpar.
(C).
Subsec. (h)(2), (3). Pub. L. 108–306, § 3(2), added par. (2)
and redesignated former par. (2) as (3).
2000—Subsec. (f)(1)(C). Pub. L. 106–554 amended sub-
par. (C) generally. Prior to amendment, subpar. (C)
read as follows: ‘‘each loan shall have been fully dis-
bursed to the borrower prior to any sale.’’
1996—Subsec. (b)(7). Pub. L. 104–208, § 208(i)(1), sub-
stituted ‘‘: Provided, That with respect to deferred par-
ticipation loans, the Administrator may, in the discre-
tion of and pursuant to regulations promulgated by the
Administrator, authorize participating lending institu-
tions to take actions relating to loan servicing on be-
half of the Administrator, including determining eligi-
bility and creditworthiness and loan monitoring, col-
lection, and liquidation’’ for ‘‘: Provided, That nothing
herein shall be construed as authorizing the Adminis-
trator to contract or otherwise delegate his responsi-
bility for loan servicing to other than Administration
personnel, but with respect to deferred participation
loans he may authorize participating lending institu-
tions, in his discretion pursuant to regulations promul-
gated by him, to take such actions on his behalf, in-
cluding, but not limited to the determination of eligi-
bility and creditworthiness, and loan monitoring, col-
lection and liquidation’’.
Subsec. (f)(3). Pub. L. 104–208, § 103(e), inserted at end
‘‘Beginning on March 31, 1997, the sale of the
unguaranteed portion of any loan made under section
636(a) of this title shall not be permitted until a final
regulation that applies uniformly to both depository
institutions and other lenders is promulgated by the
Administration setting forth the terms and conditions
under which such sales can be permitted, including
maintenance of appropriate reserve requirements and
other safeguards to protect the safety and soundness of
the program.’’
Subsec. (h). Pub. L. 104–208, § 205(a), designated exist-
ing provisions as par. (1), redesignated former pars. (1)
to (4) as subpars. (A) to (D), respectively, of par. (1), in
subpar. (A) substituted ‘‘(A) provide for a central reg-
istration of all loans and trust certificates sold pursu-
ant to subsections (f) and (g) of this section;’’ for ‘‘(A)
provide for a central registration of all loans and trust
certificates sold pursuant to subsections (f) and (g) of
this section. Such central registration shall include,
with respect to each sale, an identification of each
lender who has sold the loan; the interest rate paid by
the borrower to the lender; the lender’s servicing fee;
whether the loan is for a fixed rate or variable rate; an
identification of each purchaser of the loan or trust
certificate; the price paid by the purchaser for the loan
or trust certificate; the interest rate paid on the loan
or trust certificate; the fees of an agent for carrying
out the functions described in paragraph (2) below; and
such other information as the Administration deems
appropriate;’’, and added par. (2).
1995—Subsec. (g)(4)(A). Pub. L. 104–36 substituted first
sentence for former first sentence which read as fol-
lows: ‘‘The Administration may collect the following
fees for loan guarantees sold into the secondary market
pursuant to the provisions of subsection (f) of this sec-
tion: an amount equal to (A) not more than 4⁄10 of one
percent per year of the outstanding principal amount of
the portion of such loan guaranteed by the Administra-
tion, and (B) not more than 50 percent of the portion of
the sale price which is in excess of 110 percent of the
outstanding principal amount of the portion of such
loan guaranteed by the Administration.’’, and sub-
stituted ‘‘such fee’’ for ‘‘such fees’’ in two places in sec-
ond sentence.
1994—Subsec. (b)(8). Pub. L. 103–282 inserted
‘‘: Provided, That the Administrator may extend the
six-month limitation for an additional six months if
the Administrator determines the extension is nec-
essary to continue efficient disaster loan making ac-
tivities’’ before semicolon at end.
Subsec. (b)(12), (13). Pub. L. 103–403 added pars. (12)
and (13).
1993—Subsec. (g)(4). Pub. L. 103–81 added par. (4) and
struck out former par. (4) which read as follows: ‘‘The
Administration shall not collect any fee for any guar-
antee under this subsection: Provided, That nothing
herein shall preclude any agent of the Administration
from collecting a fee approved by the Administration
for the functions described in subsection (h)(2) of this
section.’’
1992—Subsec. (f)(4). Pub. L. 102–564 substituted ‘‘sec-
tion 636(a)(6)(C) of this title or subsection (e) of this
section’’ for ‘‘subsection (e) of this section or section
636(a)(6) or 636(a)(8) of this title’’.
1991—Subsec. (g)(1). Pub. L. 102–140 substituted ‘‘or
under section 696 of this title’’ for ‘‘except separate
trust certificates shall be issued for loans approved
under section 636(a)(13) of this title’’.
1988—Subsec. (g)(1). Pub. L. 100–590 substituted ‘‘ex-
cept separate trust certificates shall be issued for loans
approved’’ for ‘‘except those’’.
1984—Subsecs. (f) to (h). Pub. L. 98–352 added subsecs.
(f) to (h).
§ 634 TITLE 15—COMMERCE AND TRADE Page 798
1980—Subsec. (b)(7). Pub. L. 96–302 prohibited an in-
terpretation that authorized the Administrator to con-
tract or otherwise delegate his responsibility for loan
servicing to other than Administration personnel, but
sanctioned, with respect to deferred participation
loans, authority for participating lending institutions
to take action on behalf of the Administrator deter-
mining eligibility and creditworthiness, loan moni-
toring, collection, and liquidation, etc.
1978—Subsec. (c). Pub. L. 95–510 substituted ‘‘Any in-
dividual so employed may be compensated at a rate not
in excess of the daily equivalent of the highest rate
payable under section 5332 of Title 5, including travel
time, and, while such individual is away from his or her
home or regular place of business, he or she may be al-
lowed travel expenses (including per diem in lieu of
subsistence) as authorized by section 5703 of Title 5’’ for
‘‘Any individual so employed may be compensated at a
rate not in excess of $50 per diem, and, while such indi-
vidual is away from his home or regular place of busi-
ness, he may be allowed transportation and not to ex-
ceed $15 per diem in lieu of subsistence and other ex-
penses’’.
1977—Subsec. (e). Pub. L. 95–89 added subsec. (e).
1976—Subsec. (e). Pub. L. 94–305 struck out subsec. (e)
which provided for the appointment, by the Adminis-
trator, of the Chief Counsel for Advocacy who would
serve as a focal point for complaints and suggestions,
counsel small businessmen, develop proposals for
change, represent interest of small businesses before
federal agencies and enlist the cooperation of public
and private agencies. See sections 634a to 634g of this
title.
1974—Subsec. (b)(10), (11). Pub. L. 93–386, § 3(1), added
pars. (10) and (11).
Subsec. (e). Pub. L. 93–386, § 10, added subsec. (e).
1972—Subsec. (a). Pub. L. 92–310 struck out provisions
which authorized the Administrator to provide bonds
for officers, employees, attorneys, and agents.
1961—Subsec. (a). Pub. L. 87–367 struck out authoriza-
tion for fifteen additional positions in grades 16, 17, and
18 of the General Schedule of the Classification Act of
1949.
Subsec. (d). Pub. L. 87–305 added subsec. (d).
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by sections 103 and 205 of Pub. L. 104–208
effective Oct. 1, 1996, see section 3 of Pub. L. 104–208, set
out as a note under section 633 of this title.
Pub. L. 104–208, div. D, title II, § 208(j), Sept. 30, 1996,
110 Stat. 3009–747, provided that: ‘‘This section [amend-
ing this section, sections 80a–18, 662, 681 to 683, 687, 687b,
687d, 687k to 687m, and 697f of this title, and section 1431
of Title 12, Banks and Banking, repealing sections 687i
and 687j of this title, enacting provisions set out as
notes under sections 681 and 683 of this title, and
amending provisions set out as a note under section 631
of this title] and the amendments made by this section
shall become effective on the date of enactment of this
Act [Sept. 30, 1996].’’
EFFECTIVE DATE OF 1995 AMENDMENT
Pub. L. 104–36, § 8, Oct. 12, 1995, 109 Stat. 297, provided
that:
‘‘(a) IN GENERAL.—Except as provided in subsection
(b), the amendments made by this Act [see Short Title
of 1995 Amendment note set out under section 631 of
this title] do not apply with respect to any loan made
or guaranteed under the Small Business Act [15 U.S.C.
631 et seq.] or the Small Business Investment Act of
1958 [15 U.S.C. 661 et seq.] before the date of enactment
of this Act [Oct. 12, 1995].
‘‘(b) EXCEPTIONS.—The amendments made by this Act
apply to a loan made or guaranteed under the Small
Business Act or the Small Business Investment Act of
1958 before the date of enactment of this Act [Oct. 12,
1995], if the loan is refinanced, extended, restructured,
or renewed on or after the date of enactment of this
Act.’’
EFFECTIVE DATE OF 1993 AMENDMENT
Pub. L. 103–81, § 3(b), Aug. 13, 1993, 107 Stat. 781, pro-
vided that: ‘‘Any new fees imposed by the Administra-
tion pursuant to the authority conferred by subsection
(a) [amending this section] shall be applicable only to
loans initially sold in the secondary market pursuant
to the provisions of section 5(f) of the Small Business
Act [subsec. (f) of this section] after August 31, 1993.’’
Pub. L. 103–81, § 7, Aug. 13, 1993, 107 Stat. 782, which
provided that sections 3 and 5 of Pub. L. 103–81, amend-
ing this section and section 636 of this title and enact-
ing provisions set out as notes under this section and
section 636 of this title, were repealed on Sept. 30, 1996,
was repealed by Pub. L. 104–208, div. D, title I, § 109(a),
Sept. 30, 1996, 110 Stat. 3009–733, effective Sept. 29, 1996.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96–302 effective Oct. 1, 1980,
see section 507 of Pub. L. 96–302, set out as a note under
section 631 of this title.
EFFECTIVE DATE OF 1978 AMENDMENT
Pub. L. 95–510, § 105, Oct. 24, 1978, 92 Stat. 1782, pro-
vided that: ‘‘This Act [amending this section and sec-
tions 636 and 637 of this title and repealing sections
5031, 5032, and 5083 of Title 42, The Public Health and
Welfare] shall be effective October 1, 1979.’’
REGULATIONS
Pub. L. 98–352, § 3, July 10, 1984, 98 Stat. 331, provided
that:
‘‘(a) Within ninety days after the date of enactment
of this Act [July 10, 1984], the Small Business Adminis-
tration shall develop and promulgate final rules and
regulations to implement the central registration pro-
visions provided for in section 5(h)(1) of the Small Busi-
ness Act [15 U.S.C. 634(h)(1)], and shall contract with an
agent for an initial period of not to exceed two years to
carry out the functions provided for in section 5(h)(2) of
such Act.
‘‘(b) Within nine months after the date of enactment
of this Act [July 10, 1984], the Small Business Adminis-
tration shall consult with representatives of appro-
priate Federal and State agencies and officials, the se-
curities industry, financial institutions and lenders,
and small business persons, and shall develop and pro-
mulgate final rules and regulations to implement this
Act [amending sections 633, 634, and 639 of this title and
enacting provisions set out as notes under sections 631
and 634 of this title] other than as provided for in sub-
section (a).
‘‘(c) The Small Business Administration shall not im-
plement any of the provisions under section 5(g) of the
Small Business Act, as amended [15 U.S.C. 634(g)], until
final rules and regulations become effective.’’
AUTHORITY FOR THE OFFICE OF HEARINGS AND APPEALS
TO DECIDE APPEALS RELATING TO QUALIFIED
HUBZONE SMALL BUSINESS CONCERNS
Pub. L. 117–81, div. A, title VIII, § 864, Dec. 27, 2021, 135
Stat. 1852, provided that: ‘‘Not later than 1 year after
the date of the enactment of this Act [Dec. 27, 2021], the
Administrator of the Small Business Administration
shall issue a rule authorizing the Office of Hearings and
Appeals of the Administration to decide all appeals
from formal protest determinations in connection with
the status of a concern as a qualified HUBZone small
business concern (as such term is defined in section
31(b) of the Small Business Act (15 U.S.C. 657a(b))[)].’’
ASSET SALES
Pub. L. 105–135, title V, § 505, Dec. 2, 1997, 111 Stat.
2624, provided that: ‘‘In connection with the Adminis-
tration’s implementation of a program to sell to the
private sector loans and other assets held by the Ad-
Page 799 TITLE 15—COMMERCE AND TRADE § 634b
ministration, the Administration shall provide to the
Committees a copy of the draft and final plans describ-
ing the sale and the anticipated benefits resulting from
such sale.’’
PREFERRED LENDER STANDARD REVIEW PROGRAM
Pub. L. 104–208, div. D, title I, § 103(h), Sept. 30, 1996,
110 Stat. 3009–728, provided that: ‘‘Not later than 90
days after the date of enactment of this Act [Sept. 30,
1996], the Administrator shall commence a standard re-
view program for the Preferred Lender Program estab-
lished by section 5(b)(7) of the Small Business Act (15
U.S.C. 634(b)(7)), which shall include annual or more
frequent assessments of the participation of the lender
in the program, including defaults, loans, and recov-
eries of loans made by that lender under the authority
of this section. The Administrator shall require such
standard review for each new entrant to the Preferred
Lender Program.’’
STUDY AND REPORT REGARDING 1993 AMENDMENTS TO
IMPOSE SECONDARY MARKET FEES AND TO REDUCE
LOAN GUARANTEE PERCENTAGES
Pub. L. 103–81, § 6, Aug. 13, 1993, 107 Stat. 782, provided
that: ‘‘The Administration shall study, monitor and
evaluate the impact of the amendments made by sec-
tions 3 and 5 of this Act [amending this section and sec-
tion 636 of this title] on the ability of small business
concerns and small business concerns owned and con-
trolled by minorities and women, to obtain financing
and the impact of such sections on the effectiveness, vi-
ability and growth of the secondary market authorized
by section 5(f) of the Small Business Act [subsec. (f) of
this section]. Not later than 16 months after the date of
enactment [Aug. 13, 1993], and annually thereafter, the
Administration shall submit to the Committees on
Small Business of the Senate and the House of Rep-
resentatives [Committee on Small Business of Senate
now Committee on Small Business and Entrepreneur-
ship of Senate] a report containing the Administra-
tion’s findings and recommendations on such impact,
specifically including changes in the interest rates on
financings provided to small business concerns and
small business concerns owned and controlled by mi-
norities and women, through the use of the secondary
market. The Administration shall segregate such find-
ings and recommendations in the study according to
the ethnic and gender components in these categories.
Solely for the purposes of the study authorized herein,
the term ‘small business concerns owned and controlled
by minorities’, includes businesses owned and con-
trolled by individuals belonging to one of the des-
ignated groups listed in section 8(d)(3)(C) of the Small
Business Act [15 U.S.C. 637(d)(3)(C)].’’
REFERENCES IN OTHER LAWS TO GS–16, 17, OR 18 PAY
RATES
References in laws to the rates of pay for GS–16, 17,
or 18, or to maximum rates of pay under the General
Schedule, to be considered references to rates payable
under specified sections of Title 5, Government Organi-
zation and Employees, see section 529 [title I, § 101(c)(1)]
of Pub. L. 101–509, set out in a note under section 5376
of Title 5.
VIABILITY OF SECONDARY MARKETS
Pub. L. 102–366, title II, § 226, Sept. 4, 1992, 106 Stat.
1001, provided that: ‘‘The Administrator of the Small
Business Administration is authorized and directed to
take such actions in the awarding of contracts as is
deemed necessary to assure the continued long-term vi-
ability of the secondary markets in loans, debentures
or other securities guaranteed by the Administration.’’
SMALL BUSINESS LOAN SECONDARY MARKET STUDY
Pub. L. 102–366, title III, § 311, Sept. 4, 1992, 106 Stat.
1005, directed Secretary of the Treasury, Director of
Congressional Budget Office, and Chairman of Securi-
ties and Exchange Commission, in consultation with
Administrator of Small Business Administration, to
conduct a study of potential benefits of, and legal, reg-
ulatory, and market-based barriers to, developing a
secondary market for loans to small businesses, speci-
fied considerations to be included in the study, and re-
quired that, not later than 1 year after Sept. 4, 1992, a
report be submitted to Congress on results of the study,
including recommendations for legislation to facilitate
development of a secondary market for loans to small
businesses.
APPROPRIATIONS NOT AUTHORIZED
Pub. L. 98–352, § 6, July 10, 1984, 98 Stat. 332, provided
that: ‘‘This Act [amending this section and sections 633
and 639 of this title and enacting provisions set out as
notes under this section and section 631 of this title]
does not authorize the appropriation of any funds.’’
SMALL BUSINESS PROTECTION
Pub. L. 90–104, title III, §§ 301–303, Oct. 11, 1967, 81 Stat.
272, authorized Administrator of Small Business Ad-
ministration to conduct a special study of impact on
small business concerns of robbery, burglary, shop-
lifting, vandalism, and other criminal activities, and
report to President and to Congress results of study, in-
cluding such recommendations he deemed appropriate
for administrative and legislative action, within one
year after Oct. 11, 1967.
§ 634a. Office of Advocacy within Small Business
Administration; Chief Counsel for Advocacy
There is established within the Small Business
Administration an Office of Advocacy. The man-
agement of the Office shall be vested in a Chief
Counsel for Advocacy who shall be appointed
from civilian life by the President, by and with
the advice and consent of the Senate.
(Pub. L. 94–305, title II, § 201, June 4, 1976, 90
Stat. 668.)
Editorial Notes
CODIFICATION
Section was not enacted as part of the Small Busi-
ness Act which comprises this chapter.
§ 634b. Primary functions of Office of Advocacy
The primary functions of the Office of Advo-
cacy shall be to—
(1) examine the role of small business in the
American economy and the contribution
which small business can make in improving
competition, encouraging economic and social
mobility for all citizens, restraining inflation,
spurring production, expanding employment
opportunities, increasing productivity, pro-
moting exports, stimulating innovation and
entrepreneurship, and providing an avenue
through which new and untested products and
services can be brought to the marketplace;
(2) assess the effectiveness of existing Fed-
eral subsidy and assistance programs for small
business and the desirability of reducing the
emphasis on such existing programs and in-
creasing the emphasis on general assistance
programs designed to benefit all small busi-
nesses;
(3) measure the direct costs and other effects
of government regulation on small businesses;
and make legislative and nonlegislative pro-
posals for eliminating excessive or unneces-
sary regulations of small businesses;
(4) determine the impact of the tax structure
on small businesses and make legislative and
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