the provisions of this Act. To carry out this purpose the Administrator, when requested to do so, shall issue in response to each such request an appropriate certificate certifying an individual concern as a 'small-business concern' in accordance with the criteria expressed in this Act. Any such certificate shall be subject to revocation when the concern covered thereby ceases to be a 'small-business concern'. Offices of the Government having procurement or lending powers, or engaging in the disposal of Federal property or allocating materials or supplies, or promulgating regulations affecting the distribution of materials or supplies, shall accept as conclusive the Administration's determination as to which enterprises are to be designated 'small-business concerns', as authorized and directed under this paragraph;

"(i) to certify to Government procurement officers with respect to the competency, as to capacity and credit, of any small-business concern or group of such concerns to perform a specific Government procurement contract. In any case in which a small-business concern or group of such concerns has been certified by or under authority of the Administration to be a competent Government contractor with respect to capacity and credit as to a specific Government procurement contract, the officers of the Government having procurement powers are directed to accept such certification as conclusive, and are authorized to let such Government procurement contract to such concern or group of concerns without requiring it to meet any other requirement with respect to capacity and credit;

"(j) to obtain from any Federal department, establishment, or agency engaged in procurement or in the financing of procurement or production such reports concerning the letting of contracts, and subcontracts and making of loans to business concerns as it may deem pertinent in carrying out its functions under this Act:

"(k) to obtain from suppliers of materials information pertaining to the method of filling orders and the bases for allocating their supply, whenever it appears that any small business is unable to obtain materials from its normal sources;

"(1) to make studies and recommendations to the appropriate Federal agencies to insure that a fair proportion of the total purchases and contracts for supplies and services for the Government be placed with smallbusiness enterprises, to insure that a fair proportion of Government contracts for research and development be placed with small-business concerns, and to insure a fair and equitable share of materials, supplies, and equipment to small-business concerns;

"(m) to consult and cooperate with all Government agencies for the purpose of insuring that small-business concerns shall receive fair and reasonable treatment from said agencies;

"(n) to establish such advisory boards and committees wholly representative of small business as may be found necessary to achieve the purposes of this Act;

"(o) to make studies of the effect of price, credit, and other controls, or other Federal programs and wherever it finds that these controls discriminate against or impose undue hardship upon small business, to make recommendations to the appropriate Federal agency for the adjustment of controls to the needs of small business.

"SEC. 107. (a) To effectuate the purpose of this Act, small business concerns within the meaning of this Act shall receive any award or contract or any part thereof as to which it is determined by the Administration (1) to be in the interest of maintaining or mobilizing the Nation's full productive capacity, (2) to be in the interest of war or national defense programs, or (3) to insure a wellbalanced national economy. Whenever the contracting procurement agency objects to the determination made by the Administration, it may appeal to the secretary of the appropriate department or the head of the appropriate agency who may overrule the Administration's determination by a finding in writing setting forth his reasons for so ruling.

"(b) The Administration may delegate the powers granted in subsection (a) above to Government contracting agencies where the Administration is not represented by its own personnel.

"SEC. 108. (a) The Administration shall make a report every six months of operations under this Act to the President, the President of the Senate, and the Speaker of the House of Representatives. Such report shall include the names

of the business concerns to whom contracts are let and for whom financing is arranged by the Administration, together with the amounts involved, and such report shall include such other information and such comments and recommendations as the Administration may deem appropriate.

"(b) The Administration shall make a report to the President, the President of the Senate, and the Speaker of the House of Representatives, to the Senate Select Committee on Small Business and to the House Select Committee To Conduct a Study and Investigation of the Problems of Small Business on December 31, 1957, and at the end of each six months thereafter, showing as accurately as possible for each such period the amount of funds appropriated to it that it has expended in the conduct of each of its principal activities such as lending, procurement, contracting, and providing technical and managerial aids.

"(c) The Attorney General is directed to make, or request the Federal Trade Commission to make for him, surveys for the purpose of determining any factors which may tend to eliminate competition, create or strengthen monopolies, injure small business, or otherwise promote undue concentration of economic power in the course of the administration of this Act. The Attorney General shall submit to the Congress and the President at such times as he deems desirable, reports setting forth the results of such surveys and including such recommendations as he may deem desirable.

"(d) For the purposes of aiding in carrying out the national policy to insure that a fair proportion of the total purchases and contracts for supplies and services for the Government be placed with small-business enterprises, and to maintain and strengthen the overall economy of the Nation, the Department of Defense shall make a monthly report to the President, the President of the Senate, and the Speaker of the House of Representatives not more than forty-five days after the close of the month, showing the amount of funds appropriated to the Department of Defense which have been expended, obligated, or contracted to be spent with small-business concerns and the amount of such funds expended, obligated, or contracted to be spent with firms other than small business in the same fields of operation; and such monthly reports shall show separately the funds expended, obligated, or contracted to be spent for basic and applied scientific research and development.

"(e) The Administration shall retain all correspondence, records of inquiries, memoranda, reports, books, and records, including memoranda as to all investigations conducted by or for the Administration, for a period of at least one year from the date of each thereof, and shall at all times keep the same available for inspection and examination by the Senate Select Committee on Small Business, and the House Select Committee To Conduct a Study and Investigation of the Problems of Small Business, or their duly authorized representatives.

"SEC. 109. (a) The President is authorized to consult with representatives of small-business concerns with a view to encouraging the making by such persons with the approval of the President of voluntary agreements and programs to further the objectives of this Act.

"(b) No act or omission to act pursuant to his Act which occurs while this Act is in effect, if requested by the President pursuant to a voluntary agreement or program approved under subsection (a) of this section and found by the President to be in the public interest as contributing to the well-being of small business, shall be construed to be within the prohibition of the antitrust laws or the Federal Trade Commission Act of the United States. A copy of each such request intended to be within the coverage of this section, and any modification or withdrawal thereof, shall be furnished to the Attorney General and the Chairman of the Federal Trade Commission when made, and it shall be published in the Federal Register unless publication thereof would, in the opinion of the President, endanger the national security.

"(c) The authority granted in subsection (b) of this section shall be delegated only (1) to an official who shall for the purpose of such delegation be required to be appointed by the President by and with the advice and consent of the Senate, and (2) upon the condition that such official consult with the Attorney General and with the Chairman of the Federal Trade Commission not less than ten days before making any request or finding thereunder, and (3) upon the condition that such official obtain the approval of the Attorney General to any request thereunder before making the request.

"(d) Upon withdrawal of any request or finding made thereunder the provisions of this section shall not apply to any subsequent act or omission to act by reason of such finding or request.

"SEC. 110. No loan shall be made or equipment, facilities, or services furnished by the Administration under this title to any business enterprise unless the owners, partners, or officers of such business enterprise (1) certify to the Administration the names of any attorneys, agents, or other persons engaged by or on behalf of such business enterprise for the purpose of expediting applications made to the Administration for assistance of any sort, and the fees paid or to be paid to any such persons; (2) execute an agreement binding any such business enterprise for a period of two years after any assistance is rendered by the Administration to such business enterprise, to refrain from employing, tendering any office or employment to, or retaining for professional services, any person who, on the date such assistance or any part thereof was rendered, or within one year prior thereto, shall have served as an officer, attorney, agent, or employee of the Administration occupying a position or engaging in activities which the Administration shall have determined involve discretion with respect to the grantng of assistance under this Act; and (3) furnish the names of lending institutions to which such business enterprise has applied for loans together with dates, amounts, terms, and proof of refusal.

"TITLE II-INSURANCE OF LOANS FOR SMALL BUSINESS
"AUTHORITY TO INSURE

"SEC. 201. To make credit for small enterprises more readily available in adequate amounts and on reasonable terms, and to facilitate maximum participation of private financial institutions and investors in financing these enterprises by insuring loans which are made by private institutions to small business, the Administrator is authorized upon such terms and conditions as he may prescribe to insure such lenders as he finds to be qualified by experience or facilities and approves as eligible for credit insurance against loss of principal and interest which may be sustained by them as a result of loans made to small-business enterprises. Such a lender is hereinafter referred to as an 'approved lender'.

"OVERALL LIMIT OF INSURANCE

"SEC. 202. The aggregate principal amount of loans with respect to which insurance may be granted under this title shall not exceed $250,000,0000 outstanding at any one time: Provided, That on or after July 1, 1958, the President may increase this limit to not more than $750,000,000.

"SCOPE OF INSURANCE AND INSURANCE RESERVE

"SEC. 203. The insurance granted under this title shall provide for the reimbursement of losses to any approved lender and which reimbursement shall not exceed the lesser of

"(a) 90 per centum of the unpaid balance of any loan, including accrued interest at the time of default;

"(b) the insurance reserve of the insured lender on the date of the claim for reimbursement of loss is approved for payment.

The insurance reserve of each lender shall be initially computed as 10 per centum of the total amount of loans on which premiums have been paid and shall be diminished by the amount of claims approved for payment. The insurance reserve, if any, to the credit of any lender may, from time to time, be further diminished, but only pursuant to the contact between the Administrator and such insured lender.

"TYPE OF LOAN COVERED

"SEC. 204. The Administrator shall fix a premium charge for the insurance granted under this title in an amount not to exceed 11⁄2 per centum per annum of the principal amount of each loan, payable in advance, at such time and in such manner as he may prescribe.

"TYPE OF LOAN COVERED

"SEC. 205. (a) Insurance granted under this title shall provide for the reimbursement of losses only with respect to loans bearing such interest, having such maturities, and subject to such other terms and conditions as required in accordance with regulations prescribed by the Administrator in force at the time the insurance is granted.

"(b) No further insurance shall be granted under this title with respect to any borrower if the total outstanding amount of all loans of such borrower insured under this title would thereby exceed $250,000, or with respect to any loan whose maturity is in excess of five years and thirty-two days.

"(c) No insurance shall be granted under this title for any loan for agricultural purposes, as determined in accordance with regulations issued by the Administrator after consultation with the Secretary of Agriculture, or with respect to any loan which is eligible to be insured under the National Housing Act, as amended.

"(d) Any loan with respect to which insurance is granted under this title may be refinanced or extended with continued protection under this title in accordance with such regulations as the Administrator may prescribe: Provided, That the amount or unexpired term of any such loan shall not be in excess of the limitations contained in paragraph (b) of this section.

"TRANSFER OF INSURANCE BETWEEN INSTITUTIONS

"SEC. 206. The Administrator, under such regulations as he may prescribe, may permit the transfer to any approved lender any insurance in connection with loans which such lender wishes to purchase from another approved lender.

"REVOLVING FUND

"SEC. 207. (a) The premiums and other moneys received by the Administrator in the course of operations under this title shall be deposited in a revolving fund in the Treasury of the United States. The revolving fund shall be available for defraying the operating expenses incurred under this title, and for the payment of claims in connection with the insurance granted under this title.

"(b) For the purposes of carrying out the provisions of this title, there are hereby authorized to be appropriated to the revolving fund provided in this section

"(1) the sum of $10,000,000 for the initial establishment of the revolving fund; and

"(2) such further sums, if any, as may become necessary for the adequacy of the revolving fund.

"(c) The Administrator shall pay annually into the Treasury, as miscellaneous receipts, interest on any sums appropriated to the revolving fund which have not been repaid into the Treasury as provided in subsection (d). The Secretary of the Treasury shall determine the interest rate annually in advance, such rate to be calculated to reimburse the Treasury for its costs in connection with such appropriated funds, taking into consideration the current average interest rate which the Treasury pays upon its marketable obligations. "(d) At least annually any balance in the revolving fund in excess of an amount determined by the Administrator to be necessary for requirements of the fund, and for reasonable reserves to maintain the solvency of the fund, shall be paid into the Treasury as miscellaneous receipts, and any outstanding balance in the amounts appropriated to the revolving fund shall be reduced by the same amount.

"(e) The Administrator, with the approval of the Secretary of the Treasury, may invest and reinvest such portions of the revolving fund as he may determine to be in excess of current needs in any interest-bearing securities of the United States or in any securities guaranteed as to principal and interest by the United States, and the income therefrom shall constitute a part of the revolving fund.

"(f) The financial transactions, accounts, books and records of the Administrator pertaining to the revolving fund shall be audited on an annual basis by the General Accounting Office and a copy of each report on the audit shall be furnished to the President, the Congress, and the Administrator.

"EXEMPTION FROM SECTION 24 OF THE FEDERAL RESERVE ACT

"SEC. 208. Loans made by national banks with respect to which insurance is granted under this title shall be exempt from the provisions of section 24 of the Federal Reserve Act (12 U. S. C. 371) relating to real estate loans.

"AUTHORITY TO PROMULGATE AND WAIVE REGULATIONS

"SEC. 209. (a) The Administrator may make such rules and regulations as he deems necessary to carry out the authority vested in him by or pursuant to this Act. Any such rule or regulation issued under this Act may contain such classifications and differentiations and may provide for such adjustments and reasonable exceptions as in the judgment of the Administrator are necessary or proper in order to effectuate the purposes of this Act.

"(b) The Administrator is authorized to waive compliance with any such rules and regulations, if, in his judgment, they have been substantially complied with in good faith and where in his opinion such waiver would not be in derogation of the interest of the Government.

"PENALTIES

"SEC. 210. (a) Title 18, United States Code, section 493, is amended by inserting the phrase 'Small Business Administration,' after the phrase 'Federal Housing Administration,'.

"(b) Title 18, United States Code, section 657, is amended by inserting the phrase 'Small Business Administration,' after the phrase 'Federal Housing Administration,'.

"(c) Title 18, United States Code, section 1006, is amended by inserting the phrase 'Small Business Administration,' after the phrase 'Federal Housing Administration,'.

"(d) Title 18, United States Code, section 1010, is amended by inserting the phrase 'or Small Business Administration,' after the phrase 'Federal Housing Administration,'.

"(e) Title 18, United States Code, section 1014, is amended by inserting the phrase "The Small Business Administration,' after the words 'National farm loan association'.

"TITLE III-GENERAL PROVISIONS

"SEC. 301. (a) All moneys of the Administration not otherwise employed may be deposited with the Treasurer of the United States subject to check by authority of the Administration. The Federal Reserve banks are authorized and directed to act as depositaries, custodians, and fiscal agents for the Administration in the general performance of its powers conferred by this Act. Any banks insured by the Federal Deposit Insurance Corporation, when designated by the Secretary of the Treasury, shall act as custodians and financial agents for the Administration. Each Federal Reserve bank, when designated by the Administrator as fiscal agent for the Administration, shall be entitled to be reimbursed for all expenses incurred as such fiscal agent.

"(b) The Administrator shall contribute to the civil-service retirement and diability fund on the basis of annual billings as determined by the Civil Service Commission, for the Government's share of the cost of the civil service retirement system applicable to the employees engaged in carrying out the functions of this Act. The Administrator shall also contribute to the employees' compensation fund, on the basis of annual billings as determined by the Secretary of Labor, for the benefit payments made from such funds on account of employees engaged in carrying out the functions financed by such revolving fund. The annual billings shall also include a statement of the fair portion of the cost of the administration of the respective funds, which shall be paid by the Administrator into the Treasury as miscellaneous receipts.

"SEC. 302. The President may transfer to the Administration any functions, powers, and duties of any department or agency which relate primarily to smallbusiness problems. In connection with any such transfer, the President may provide for appropriate transfers of records, property, necessary personnel, and unexpended balances of appropriations and other funds available to the department or agency from which the transfer is made.

"SEC. 303. To the fullest extent the Administration deems practicable, it shall make a fair charge for the use of Government-owned property and make and let contracts on a basis that will result in a recovery of the direct costs incurred by the Administration.

"SEC. 304. (a) Whoever makes any statement knowing it to be false, or whoever willfully overvalues any security, for the purpose of obtaining for himself or for any applicant any loan, or extension thereof by renewal, referment of action, or otherwise, or the acceptance, release, or substitution of security there