(b) Information as to whether the State has such a law should be available from local banks, saving and loan associations, or mortgage and finance companies.

411.7 Loans, RFC.-Small business loans for veteran with prior business experience and proper amount of equitable capital may be obtained through local banks, if a sound economic need for the proposed business exists. Apply through local bank or nearest RFC agency.

411.8 Loans, SWPC.-Small business loans for acquisition, conversion, and operation of plants and facilities engaged in war or essential civilian production and for the purchase of Government surplus property can be arranged through SWPC. Apply at nearest SWPC field office.

411.9 Loans, FHA.-(a) The Federal Housing Administration insures mortgage loans made on homes up to a four-family dwelling. Such loans are made by banks, savings and loan associations, mortgage and finance companies, and other qualified lending institutions to a maximum of $16,000. This protection enables lending institutions to make insured mortgage loans on desirable terms with a small down payment and Government-limited financing rates. The mortgagee may obtain up to 80 percent of the FHA value of the property, in some cases, or 90 percent on new construction where plans are approved prior to building. $5,400 is the maximum under this 90-percent loan.

(b) The amount of the loan, repayment period, financing charges, and other specific details of the transaction are matters to be arranged between the borrower and the lending institutions, although the lender will be guided by the FHA limits. Under FHA the maximum interest is 4 percent. The term for 80-percent loans is up to 20 years, and up to 25 years for the 90-percent loan.

(c) Any responsible person with a steady income, good credit, and a reasonable ability to repay the loan may apply for a FHA loan to any bank, mortgage, finance or insurance company, savings and loan association, or other financial institution approved by the Federal Housing Administration.

PART IV

CHAPTER 12

BUSINESS

412.1 Business, SWPC Aid to.

412.2 Business, WPB Aid to.

412.3 Telephone Priorities.

412.4 Business, OPA Priorities for.

412.5 Motor Vehicles, Priority Certificates for.

412.6 Surplus War Property, Preferences in Purchasing. 412.7 Business, United States Department of Commerce. 412.8 Business, Assistance Provided by Local Agencies. 412.9 Business, Loans for Establishment of.

PART IV

CHAPTER 12

BUSINESS

412.1 Business, SWPC, Aid to.-Four types of service are offered by the Smaller War Plants Corporation to veterans seeking assistance in establishing small businesses:

(1) Obtaining loans (not connected with the GI Bill) for worth-while manufacturing projects limited only by the requirements for capital to carry out ventures that have a reasonable chance of success on the basis of experience by the veteran and the market possibilities for the product he wishes to sell.

(2) Assistance in obtaining surplus war materials that will be helpful to the planned business venture.

(3) Supplying of technical assistance from the reservoir of experience from big and little business, both in war- and peacetime operations.

(4) New product ideas gleaned from alien patents now available to American manufacturers or from the researches of the National Inventors Council.

412.2 Business, WPB Aid to.-(a) Priorities assistance needed in the establishment or reestablishment of small businesses by veterans will be given special consideration by the War Froduction Board when such assistance will not interfere with the fulfillment of military requirements or critical essential needs of the kind normally protected by priorities assistance. The War Production Board ordinarily will grant such assistance even though it would not be granted to other persons under otherwise similar conditions.

(b) Priorities Regulation No. 27 gives manufacturers who produce less than $50,000 worth of their own products per quarter (manufacturer's sales price) a preference rating as an aid in obtaining needed materials. It also gives them the right to place orders for delivery of controlled material. This regulation is planned to aid small manufacturers and does not apply to repairmen or persons engaged in service trades.

(c) "Small business," for the purpose of veterans' assistance, is interpreted as being covered by Priorities Regulation No. 27 when the business, whether individually owned, a partnership, or a corporation, has as its principal active participant, either as working owner, manager, or partner is a veteran. Application for assistance should be made to the nearest field office of the WPB.

649596°-45-13