B22':5ml?

SMALL

STANFOR

BUSINESS JUN 13 1957

HEARINGS

BEFORE THE

COMMITTEE ON BANKING AND CURRENCY

HOUSE OF REPRESENTATIVES

EIGHTY-FIFTH CONGRESS

FIRST SESSION

ON

H. R. 6645 and H. R. 7474

92432

MAY 14. 15, 16, 17, 21, AND 22, 1957

Printed for the use of the Committee on Banking and Currency

UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON: 1957

CONTENTS

H. R. 6645. A bill to amend the Small Business Act of 1953.

H. R. 7474. A bill to amend the Small Business Act of 1953, as amended.

Statement of-

Andersen, Hon. H. Carl, a Representative in Congress from the State

of Minnesota...

Barnes, Hon. Wendell B., Administrator, Small Business Adminis-

tration..

Page

1

9

292

18, 170

Burger, George J., vice president, National Federation of Independent

Business..

115

Coffin, Hon. Frank M., a Representative in Congress from the State

of Maine..

284

Davis, John C., executive director, National Small Business Men's

Association of Washington, D. C..

131

Fulton, Hon. James G., a Representative in Congress from the State

of Pennsylvania..

295

Hale, Hon. Robert, a Representative in Congress from the State of

Maine...

294

Henderson, Hon. John E., a Representative in Congress from the

State of Ohio.

231

Hill, Hon. William S., a Representative in Congress from the State

of Colorado..

Maxwell, Arthur F., representing the American Bankers Association_

Mueller, Hon. Frederick H., Assistant Secretary for Domestic Affairs,

Department of Commerce...

242

145

211

Multer, Hon. Abraham J., a Representative in Congress from the

State of New York..

262

Porter, Hon. Charles O., a Representative in Congress from the State

of Oregon..

291

Riehlman, Hon. R. Walter, a Representative in Congress from the

State of New York.

233

Seely-Brown, Hon. Horace, Jr., a Representative in Congress from

the State of Connecticut..

256

Thompson, Hon. Frank, Jr., a Representative in Congress from the

State of New Jersey.

259

Weaver, Hon. Phil, a Representative in Congress from the State of

Nebraska..

290

Additional data submitted to the committee by-

Department of Commerce:

Business and Defense Services Administration-organization

chart..

Humphrey, Hon. G. M., Secretary of the Treasury, letter of May 20,

1957, to Hon. Brent Spence

facing page 229

246

Multer, Hon. Abraham J., letter of May 23, 1957, from Hon. Wendell

B. Barnes, in re: breakdown of Small Business Administration em-

ployees showing those under civil service _ _

Patman, Hon. Wright:

270

Excerpts from committee hearings-Remarks by Marriner S.

Eccles and William McC. Martin, pertaining to use of reserves

deposited with Federal Reserve System____

170

Small Business Administration:

Business loans approved on which disbursements had been made,

by congressional districts-Consolidated statement covering

periods August 1, 1953 to September 30, 1956; October 1 to

December 31, 1956; and January 1 to March 31, 1957___

Business loan application activity in New England States, by
State, January 1 through April 30, 1957
Definition of small business, effective January 1, 1957..

Additional data submitted to the committee by-Continued

Small Business Administration-Continued

Percent of number of business loans outstanding, loan balance,

and amount delinquent over 60 days_-

Programs of financial assistance to small business, April 1957-

Introduction_.

Financial counseling_

Loans to business concerns..

Participation loans.

Limited loan participation program.

Direct loans..

Pool loans_.

Disaster loans.

Drought disaster loans.

Programs of procurement and technical assistance to small busi-

ness, March 1957.

I. Introductory remarks_

II. Procurement and technical assistance activities.

III. Procurement assistance to small business..

IV. Other production, products and managerial assistance

activities___

V. Small Business Administration prime contract pro-

gram.

VI. Research and development_

VII. Progress payments___

VIII. Small-business size standards..

59

59

IX. Liaison officer with Department of Defense

X. The Cabinet Committee on Small Business__

Exhibit A. Procurement and technical assistance activities

(for the period August 1, 1953, through December 1956,

unless otherwise indicated).

61

Exhibit B. Joint set-asides-Comparison of 6-month periods

from July 1953 through December 1956_ _.

Exhibit C. Awards under joint set-aside program, by States,

cumulative through December 25, 1956...

Exhibit D. Procurement installations where joint set-asides

for small business were made during the first half of fiscal

year 1957

Exhibit E. Report of Small Business Administration joint

set-aside program cumulative from August 1, 1953, through

December 25, 1956.

66

Exhibit F. Certificates of competency: Origin and disposition

of applications, August 1, 1953, through December 31,

1956

Exhibit G. Examples of procurement assistance_

Exhibit H. Examples of production assistance__

Exhibit I. Examples of requests for assistance received, indi-

cating nature of request and type of assistance provided.

Exhibit J. Examples of managerial assistance_

Exhibit K. Distribution and sale of publications and lists of

management publications..

Addendum-Programs of procurement and technical assist-

ance to small business March 1957 to April 1957.

Exhibit A. Procurement and technical assistance ac-

tivities (for period August 1, 1953, through March

1957, unless otherwise indicated) -

Exhibit B. Joint set-asides; comparison of 9-month

periods from July 1953 through March 1957-

Exhibit C. Awards under joint set-aside program, by

States, cumulative through February 25, 1957--

Exhibit D. Procurement installations where joint set-

asides for small business were made during the first

9 months of fiscal year 1957.

Exhibit E. Report on joint set-aside program cumu-

lative from August 1, 1953, through March 25, 1957. -

Exhibit F. Certificates of competency: Origin and dis-

position of applications, August 1, 1953, through

March 31, 1957.

Additional data submitted to the committee by-Continued

Small Business Administration-Continued

Reconstruction Finance Corporation, Office of Loans, Public

Agency Division (borrowers, project, and amount disbursed) _ _

Revolving fund statement of income and expense.

Selected statistics on financial assistance and procurement and

technical assistance activities-current fiscal year through

April 1957 in comparison with same period in fiscal year 1956__

Summary of business loans charged off.

Summary sheet for business loans in liquidation status as of March
25, 1957.

Page

109

93

46

93

92

Summary sheet for business loans delinquent over 60 days and in

problem status as of March 25, 1957.

91

Summary statement of business and disaster loan approvals and
disbursements, by type, as of April 30, 1957-.-.

44

Weeks, Hon. Sinclair, Secretary of Commerce, letter of May 17, 1957,

to Hon. Brent Spence---

246