§ 634. — General powers.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC634]
TITLE 15--COMMERCE AND TRADE
CHAPTER 14A--AID TO SMALL BUSINESS
Sec. 634. General powers
(a) Seal; appointment and compensation of personnel; 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,
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 this chapter; to define their authority and duties; and to pay the
costs of qualification 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 nonreimbursable basis of the use of
information, services, facilities (including any field service thereof),
officers, and employees thereof, in carrying out the provisions of this
chapter.
(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 determine such
controversies without regard to the amount in controversy; but no
attachment, injunction, garnishment, or other similar process, mesne
or final, shall be issued against the Administrator or his property;
(2) under regulations prescribed by him, assign or sell at
public or private sale, or otherwise dispose of for cash or credit,
in his discretion 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 connection 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 referred to
the Attorney General for suit or collection;
(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 compromise or
otherwise, all claims against third parties assigned to the
Administrator in connection with loans made by him. This shall
include authority to obtain deficiency judgments or otherwise in the
case of mortgages assigned to the Administrator. Section 5 of title
41 shall not be construed to apply to any contract of hazard
insurance or to any purchase or contract for services or supplies on
account of property obtained by the Administrator 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 Administrator deeds of conveyance, deeds of
release, assignments and satisfactions of mortgages, and any other
written instrument relating to real property or any interest therein
acquired 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 attorney. 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 property (real, personal,
or mixed, tangible or intangible), whenever deemed necessary or
appropriate to the conduct of the activities authorized 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 attorneys are not or cannot be
economically employed 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 provisions of this
chapter: Provided, That with respect to deferred participation
loans, the Administrator may, in the discretion of and pursuant to
regulations promulgated by the Administrator, authorize
participating lending institutions to take actions relating to loan
servicing on behalf of the Administrator, including determining
eligibility and creditworthiness and loan monitoring, collection,
and liquidation;
(8) pay the transportation expenses and per diem in lieu of
subsistence expenses, in accordance with subchapter I of chapter 57
of title 5, for travel of any person employed by the Administration
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 Administrator may extend the six-
month limitation for an additional six months if the Administrator
determines the extension is necessary to continue efficient disaster
loan making activities;
(9) accept the services and facilities of Federal, State, and
local agencies and groups, both public and private, and utilize such
gratuitous services and facilities as may, from time to time, be
necessary, to further the objectives 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 regulation under
this chapter, or of any order issued under this chapter. The
Administration shall permit any person to file with it a statement
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 empowered to administer oaths and affirmations,
subpena witnesses, compel their attendance, 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 refusal to obey a subpena
issued to, any person, including a recipient or participant, the
Administration may invoke the aid of any court of the United States
within the jurisdiction of which such investigation or proceeding is
carried 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 testimony
touching the matter under investigation. Any failure to obey such
order of the court may be punished by such court as a contempt
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, impose, retain, and utilize, additional fees--
(A) not to exceed $100 for each loan servicing action (other
than a loan assumption) requested after disbursement of the
loan, including any substitution of collateral, release or
substitution of a guarantor, reamortization, or similar action;
(B) not to exceed $300 for loan assumptions;
(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 requests
a commitment from the Administration for funding during the
following year; and
(D) to recover the direct, incremental cost involved in the
production and dissemination of compilations of information
produced by the Administration under the authority of this
chapter and the Small Business Investment Act of 1958 [15 U.S.C.
661 et seq.]; and
(13) collect, retain and utilize, subject to approval 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 operations, except that amounts collected under
this paragraph and paragraph (12) shall be utilized solely to
facilitate the administration of the program that generated the
excess amounts.
(c) Procurement of experts and consultants; compensation and expenses
To such extent as he finds necessary to carry out the provisions of
this chapter, the Administrator is authorized to procure the temporary
(not in excess of one year) or intermittent services of experts or
consultants or organizations thereof, including stenographic reporting
services, by contract or appointment, and in such cases such services
shall be without regard to the civil-service and classification laws
and, except in the case of stenographic reporting services by
organizations, without regard to section 5 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 instruments held as security
for loans or for the safeguarding of other documents.
(e) Undertaking or suspension of payment obligation; period; extension
of maturity; repayment agreement; ``required payments'' defined
(1) Subject to the requirements and conditions contained in this
subsection, upon application by a small business concern which is the
recipient of a loan made under this chapter, the Administration may
undertake the small business concern's obligation to make the required
payments under such loan or may suspend such obligation 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 suspend 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
Administration, 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
Administration, become or remain a viable small business entity; and
(C) the small business concern executes an agreement in writing
satisfactory to the Administration as provided by paragraph (4).
(3) Notwithstanding the provisions of sections 636(a)(4)(C) and
636(i)(1) of this title, the Administration may extend the maturity of
any loan on which the Administration undertakes or suspends the
obligation pursuant to this subsection for a corresponding period of
time.
(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 payments which were required
under the loan during the period for which such obligation was
undertaken 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 described 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 obligation, take such
action, and require the small business concern to take such action as
the Administration deems appropriate in the circumstances, including the
provision of such security as the Administration deems necessary or
appropriate to insure that the rights and interests of the lender (Small
Business Administration or participant) will be safeguarded adequately
during and after the period in which such obligation is so undertaken or
suspended.
(5) The term ``required payments'' with respect 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 Administration 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 properly closed and
that the lender has substantially complied with the provisions of
the guarantee agreement and the regulations of the Administration,
the Administration shall review and approve only materials not
previously 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 market, the lender shall
remain obligated under its guarantee agreement with the Administration,
and shall continue to service the loan in a manner consistent with the
terms and conditions of such agreement.
(3) The Administration shall develop such procedures as are
necessary for the facilitation, administration, and promotion of
secondary market 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 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.
(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 successor in interest to such borrower to prepay (in whole or in
part) any loan made pursuant to section 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 payments of principal and
interest; full faith and credit of United States; collection of
fees; subrogation
(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 Administration and composed solely of the
entire guaranteed portion of such loans.
(2) The Administration is authorized, upon such terms and conditions
as are deemed appropriate, 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, either voluntarily
or in the event of default, the guarantee of timely payment of principal
and interest on the trust certificates shall be reduced 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 Administration 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
constituting 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) of this section in
an amount equal to not more than 50 percent of the portion of the sale
price that exceeds 110 percent of the outstanding 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 Administration 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 described in subsection
(h)(2) \1\ of this section.
---------------------------------------------------------------------------
\1\ See References in Text note below.
---------------------------------------------------------------------------
(B) The Administration is authorized to impose and collect, either
directly or through a fiscal and transfer agent, a reasonable penalty on
late payments of the fee authorized under subparagraph (A) in an amount
not to exceed 5 percent of such fee per month plus interest.
(5)(A) In the event the Administration pays a claim under a
guarantee issued under this subsection, 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 Administration of its ownership rights in the
portions of loans constituting the trust or pool against which the trust
certificates are issued.
(h) Central registration of loans and trust certificates; contracts with
agent; disclosures by sellers of guaranteed portions of loans;
regulation of brokers and dealers; electronic registration
(1) Upon the adoption of final rules and regulations, 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 registration functions of this section
and the issuance of trust certificates to facilitate pooling. Such
agent shall provide a fidelity bond or insurance in such amounts as
the Administration 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 portion of a loan guaranteed under this
chapter and to the purchaser of a trust certificate issued pursuant
to subsection (g) of this section, information on the terms,
conditions, and yield of such instrument. As used in this paragraph,
if the instrument being sold is a loan, the term ``seller'' 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 certificates sold pursuant to subsections
(f) and (g) of this section.
(2) Nothing in this subsection shall prohibit the utilization of a
book-entry or other electronic 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.
(Pub. L. 85-536, Sec. 2[5], July 18, 1958, 72 Stat. 385; Pub. L. 87-305,
Sec. 4, Sept. 26, 1961, 75 Stat. 666; Pub. L. 87-367, title I,
Sec. 103(3), Oct. 4, 1961, 75 Stat. 787; Pub. L. 92-310, title II,
Sec. 224(a), June 6, 1972, 86 Stat. 206; Pub. L. 93-386, Secs. 3(1), 10,
Aug. 23, 1974, 88 Stat. 745, 749; Pub. L. 94-305, title II, Sec. 208,
June 4, 1976, 90 Stat. 671; Pub. L. 95-89, title III, Sec. 303, Aug. 4,
1977, 91 Stat. 558; Pub. L. 95-510, Sec. 103, Oct. 24, 1978, 92 Stat.
1781; Pub. L. 96-302, title I, Sec. 114, July 2, 1980, 94 Stat. 838;
Pub. L. 98-352, Sec. 2, July 10, 1984, 98 Stat. 329; Pub. L. 100-590,
title I, Sec. 113, Nov. 3, 1988, 102 Stat. 2997; Pub. L. 102-140, title
VI, Sec. 609(a), Oct. 28, 1991, 105 Stat. 825; Pub. L. 102-564, title
III, Sec. 307(d), Oct. 28, 1992, 106 Stat. 4264; Pub. L. 103-81,
Sec. 3(a), Aug. 13, 1993, 107 Stat. 780; Pub. L. 103-282, Sec. 2, July
22, 1994, 108 Stat. 1422; Pub. L. 103-403, title VI, Sec. 602, Oct. 22,
1994, 108 Stat. 4202; Pub. L. 104-36, Sec. 4(b), Oct. 12, 1995, 109
Stat. 297; Pub. L. 104-208, div. D, title I, Sec. 103(e), title II,
Secs. 205(a), 208(i)(1), Sept. 30, 1996, 110 Stat. 3009-727, 3009-738,
3009-747; Pub. L. 106-554, Sec. 1(a)(9) [title II, Sec. 209], Dec. 21,
2000, 114 Stat. 2763, 2763A-683.)
References in Text
The civil service laws, referred to in subsecs. (a) and (c), are set
forth in Title 5, Government Organization and Employees. See,
particularly, section 3301 et seq. of Title 5.
The classification laws, referred to in subsecs. (a) and (c), are
set forth in chapter 51 and subchapter III of chapter 53 of Title 5.
The Small Business Investment Act of 1958, referred to in subsec.
(b)(12)(C), (D), is Pub. L. 85-699, Aug. 21, 1958, 72 Stat. 689, as
amended, which is classified principally to chapter 14B (Sec. 661 et
seq.) of this title. Title III of the Act is classified generally to
subchapter III (Sec. 681 et seq.) of chapter 14B of this title. For
complete classification of this Act to the Code, see Short Title note
set out under section 661 of this title and Tables.
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,
Sec. 205(a)(1), (2), Sept. 30, 1996, 110 Stat. 3009-738.
Codification
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, Sec. 7(b), Sept. 6, 1966, 80 Stat. 631, the first section of
which enacted Title 5, Government Organization and Employees.
In subsec. (d), ``Section 3324(a) and (b) of title 31'' substituted
for ``Section 3648 of the Revised Statutes (31 U.S.C. 529)'' on
authority of Pub. L. 97-258, Sec. 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, Sec. 4, 69 Stat. 547, which was classified to this
section. See Codification note set out under section 631 of this title.
Amendments
2000--Subsec. (f)(1)(C). Pub. L. 106-554 amended subpar. (C)
generally. Prior to amendment, subpar. (C) read as follows: ``each loan
shall have been fully disbursed to the borrower prior to any sale.''
1996--Subsec. (b)(7). Pub. L. 104-208, Sec. 208(i)(1), substituted
``: Provided, That with respect to deferred participation loans, the
Administrator may, in the discretion of and pursuant to regulations
promulgated by the Administrator, authorize participating lending
institutions to take actions relating to loan servicing on behalf of the
Administrator, including determining eligibility and creditworthiness
and loan monitoring, collection, and liquidation'' for ``: Provided,
That nothing herein shall be construed as authorizing the Administrator
to contract or otherwise delegate his responsibility for loan servicing
to other than Administration personnel, but with respect to deferred
participation loans he may authorize participating lending institutions,
in his discretion pursuant to regulations promulgated by him, to take
such actions on his behalf, including, but not limited to the
determination of eligibility and creditworthiness, and loan monitoring,
collection and liquidation''.
Subsec. (f)(3). Pub. L. 104-208, Sec. 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, Sec. 205(a), designated existing
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 registration of all loans and trust certificates
sold pursuant 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 follows: ``The Administration
may collect the following fees for loan guarantees sold into the
secondary market pursuant to the provisions of subsection (f) of this
section: 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 Administration, 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 substituted ``such fee'' for ``such fees'' in
two places in second 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 necessary to
continue efficient disaster loan making activities'' 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 guarantee 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 ``section
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 ``except 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).
1980--Subsec. (b)(7). Pub. L. 96-302 prohibited an interpretation
that authorized the Administrator to contract 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 determining eligibility and
creditworthiness, loan monitoring, collection, and liquidation, etc.
1978--Subsec. (c). Pub. L. 95-510 substituted ``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'' for ``Any individual so employed may be
compensated at a rate not in excess of $50 per diem, and, while such
individual is away from his home or regular place of business, he may be
allowed transportation and not to exceed $15 per diem in lieu of
subsistence and other expenses''.
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 Administrator, 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, Sec. 3(1), added pars.
(10) and (11).
Subsec. (e). Pub. L. 93-386, Sec. 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 authorization 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).
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.
Section 208(j) of div. D of Pub. L. 104-208 provided that: ``This
section [amending 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
Section 8 of Pub. L. 104-36 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
Section 3(b) of Pub. L. 103-81 provided that: ``Any new fees imposed
by the Administration 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.''
Section 7 of Pub. L. 103-81 which provided that sections 3 and 5 of
Pub. L. 103-81, amending this section and section 636 of this title and
enacting 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, Sec. 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
Section 105 of Pub. L. 95-510 provided that: ``This Act [amending
this section and sections 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
Section 3 of Pub. L. 98-352 provided that:
``(a) Within ninety days after the date of enactment of this Act
[July 10, 1984], the Small Business Administration shall develop and
promulgate final rules and regulations to implement the central
registration provisions provided for in section 5(h)(1) of the Small
Business 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 Administration shall consult with
representatives of appropriate Federal and State agencies and officials,
the securities industry, financial institutions and lenders, and small
business persons, and shall develop and promulgate 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 subsection (a).
``(c) The Small Business Administration shall not implement 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.''
Asset Sales
Pub. L. 105-135, title V, Sec. 505, Dec. 2, 1997, 111 Stat. 2624,
provided that: ``In connection with the Administration's implementation
of a program to sell to the private sector loans and other assets held
by the Administration, the Administration shall provide to the
Committees a copy of the draft and final plans describing the sale and
the anticipated benefits resulting from such sale.''
Preferred Lender Standard Review Program
Section 103(h) of div. D of Pub. L. 104-208 provided that: ``Not
later than 90 days after the date of enactment of this Act [Sept. 30,
1996], the Administrator shall commence a standard review program for
the Preferred Lender Program established 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 recoveries 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
Section 6 of Pub. L. 103-81 provided that: ``The Administration
shall study, monitor and evaluate the impact of the amendments made by
sections 3 and 5 of this Act [amending this section and section 636 of
this title] on the ability of small business concerns and small business
concerns owned and controlled by minorities and women, to obtain
financing and the impact of such sections on the effectiveness,
viability 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 Representatives a report
containing the Administration'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 minorities and women, through the use
of the secondary market. The Administration shall segregate such
findings 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 controlled by
individuals belonging to one of the designated 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 Organization and Employees, see section 529 [title I,
Sec. 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, Sec. 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
viability 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, Sec. 311, Sept. 4, 1992, 106 Stat. 1005,
directed Secretary of the Treasury, Director of Congressional Budget
Office, and Chairman of Securities and Exchange Commission, in
consultation with Administrator of Small Business Administration, to
conduct a study of potential benefits of, and legal, regulatory, and
market-based barriers to, developing a secondary market for loans to
small businesses, specified considerations to be included in the study,
and required 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
Section 6 of Pub. L. 98-352 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, Secs. 301-303, Oct. 11, 1967, 81 Stat.
272, authorized Administrator of Small Business Administration to
conduct a special study of impact on small business concerns of robbery,
burglary, shoplifting, vandalism, and other criminal activities, and
report to President and to Congress results of study, including such
recommendations he deemed appropriate for administrative and legislative
action, within one year after Oct. 11, 1967.
Section Referred to in Other Sections
This section is referred to in sections 633, 636, 693 of this title.
