advice and consent of the Senate. The Administrator is authorized to appoint two associate administrators under the Small Business Act and one associate administrator under the Small Business Investment Act. The Administrator is authorized to appoint a Deptuy Administrator who shall be Acting Administrator of the Administration during the absence or disability of the Administrator or in the event of a vacancy in the Office of the Administrator. 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 the Small Business Act and the Small Business Investment Act. (2) The headquarter's office of the Small Business Administration is located at 1441 L Street NW., Washington, DC 20416. Further information concerning the activities of SBA can be obtained by calling the Office of Public Information, 382-4901. (d) Applicable law. (1) Loans made by SBA are authorized and executed pursuant to Federal programs adopted by Congress to achieve national purposes of the U.S. Government. (2) Instruments evidencing a loan, obligation of security interest in real or personal property payable to or held by the Administration or the Administrator, such as promissory notes, bonds, guaranty agreements, mortgages, deeds of trust, and other evidences of debt or security shall be construed and enforced in accordance with applicable Federal law. (3) In order to implement and facilitate these Federal loan programs, the application of local procedures, especially for recordation and notification purposes, may be utilized to the fullest extent feasible and practicable. However, the use of local procedures shall not be deemed or construed to be any waiver by SBA of any Federal immunity from any local control, penalty, or liability. (4) Any person, corporation, or organization that applies for and receives any benefit or assistance from SBA, or that offers any assurance or security upon which SBA relies for the granting of such benefit or assistance, shall not be entitled to claim or assert any local immunity to defeat the obligation such party incurred in obtaining or assuring such Federal benefit or assistance. [Amdt. 15, 36 F.R. 3171, Feb. 19, 1971] § 101.2 Organization and functions of the Central Office-Administrator. All offices heading §§ 101.2 to 101.2-9 are located in Washington, D.C., and their heads report directly to the Administrator. The Administrator is responsible to the President and Congress for exercising direction, authority, and control over the Small Business Administration. Determines and approves all policies covering the Agency's programs to aid, counsel, assist, and protect the interests of the Nation's small business concerns. He delegates responsibility and authority, except the authority to make or decline pool loans; applies research programs; and defense production pools, as set forth in sections 7(a) (6), 9(d), and 11 of the Small Business Act, to the Deputy Administrator, associate administrators, other Central Office officials reporting directly to him, and the regional directors. He consults with Federal, State, and local agencies in behalf of small business interests in the national economy. Reports to the President and Congress on Agency program accomplishments and problems. He directs the execution of authority delegated to the Administrator by the Secretary of Housing and Urban Development with respect to performance of SBA's responsibilities under section 312 of the Housing Act of 1964, as amended. He maintains as a responsibility of his office the activities related to equal employment opportunity and compliance within SBA, formal review of size appeals cases, Agency participation and representation in the Interagency Program, and the SBA Program Advisory Council. He periodically evaluates the performance, accomplishments, and short-range and long-range planning goals of the Central Office officials reporting directly to him, and the regional directors. (a) National Advisory Council-Small Business Administration. The National Advisory Council of the Small Business Administration is composed of representatives from each of the District Advisory Councils and Members-at-Large from each of the Agency regions. These representatives are persons actively engaged in small business or finance, or in services or professions related to small business including the fields of labor, law, accounting, insurance, education, real estate, and the news media. These members particularly qualified by their knowledge of and interest in small business are able to contribute substantially 101.5-2 Litigation. 101.5-3 Employment of fee counsel. 101.5-4 Miscellaneous. AUTHORITY: The provisions of this Part 101 issued under secs. 5, 308, 72 Stat. 385, 694, as amended; 15 U.S.C. 634, 687, 5 U.S.C. 552. § 101.1 Purpose, function, general organization. (a) Purpose. To aid, counsel, assist, and protect the interests of small business concerns and to help victims of disaster. (b) Functions-(1) Procurement assistance. To insure that a fair proportion of the total Government purchases and contracts or subcontracts for property and services for the Government be placed with small business enterprises by, among other things, certifying as to the competency of small business concerns to perform such contracts, or subletting contracts to small business concerns on which the Agency is prime contractor; to insure that a fair proportion of the total sales of Government property be made to small business enterprises; and to assure that small businesses obtain the benefit of Government sponsored research and development. (2) Management and technical assistance. To improve the management skills of owners, potential owners, and managers of small business concerns with direct action programs and through established channels of business relations; to provide technical and product assistance to small business concerns; and to inventory productive facilities of small business concerns. (3) Financial assistance. To make loans to small business concerns and to victims of floods or other catastrophes, including loans to small business concerns suffering economic injury as a result of displacement by Federal construction, inability to process products for human consumption because of undetermined disease, and need to make changes in facilities or methods of operation because of various Federal laws imposing safety and health requirements; to make direct or bank participation loans on the basis of certifications made by the Secretary of Commerce to assist firms, large and small, to adjust to changed economic conditions resulting from increased competition from imported articles; and to make loans to State and local development companies for purpose of assisting small business concerns. (4) Guaranteeing leases and bonds. To guarantee the payment of rentals under leases entered into by small business concerns, and also to guarantee sureties of small businesses against portions of losses resulting from the breach of bid, payment, or performance bonds. (5) Small business investment companies. To provide venture capital in the form of equity financing and long-term loan funds to small business concerns and provide advisory services to such concerns through small business investment companies; to license small business investment companies, regulate the operations of such companies, and purchase or guarantee the purchase of debentures from small business investment companies to supplement their capital requirements for the financing of small business concerns. (6) Advocacy of small business interests. To protect the interests of small businesses as they may be adversely affected by activities of other Federal agencies. (7) Further functional description. The more detailed program functions of the Agency are set forth in other sections of this part and other parts of this chapter. (c) General organization. (1) Management of the Small Business Administration is vested in an Administrator appointed by the President with the advice and consent of the Senate. The Administrator is authorized to appoint two associate administrators under the Small Business Act and one associate administrator under the Small Business Investment Act. The Administrator is authorized to appoint a Deptuy Administrator who shall be Acting Administrator of the Administration during the absence or disability of the Administrator or in the event of a vacancy in the Office of the Administrator. 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 the Small Business Act and the Small Business Investment Act. (2) The headquarter's office of the Small Business Administration is located at 1441 L Street NW., Washington, DC 20416. Further information concerning the activities of SBA can be obtained by calling the Office of Public Information, 382-4901. (d) Applicable law. (1) Loans made by SBA are authorized and executed pursuant to Federal programs adopted by Congress to achieve national purposes of the U.S. Government. (2) Instruments evidencing a loan, obligation of security interest in real or personal property payable to or held by the Administration or the Administrator, such as promissory notes, bonds, guaranty agreements, mortgages, deeds of trust, and other evidences of debt or security shall be construed and enforced in accordance with applicable Federal law. (3) In order to implement and facilitate these Federal loan programs, the application of local procedures, especially for recordation and notification purposes, may be utilized to the fullest extent feasible and practicable. However, the use of local procedures shall not be deemed or construed to be any waiver by SBA of any Federal immunity from any local control, penalty, or liability. (4) Any person, corporation, or organization that applies for and receives any benefit or assistance from SBA, or that offers any assurance or security upon which SBA relies for the granting of such benefit or assistance, shall not be entitled to claim or assert any local immunity to defeat the obligation such party incurred in obtaining or assuring such Federal benefit or assistance. [Amdt. 15, 36 F.R. 3171, Feb. 19, 1971] § 101.2 Organization and functions of the Central Office-Administrator. All offices heading §§ 101.2 to 101.2-9 are located in Washington, D.C., and their heads report directly to the Administrator. The Administrator is responsible to the President and Congress for exercising direction, authority, and control over the Small Business Administration. Determines and approves all policies covering the Agency's programs to aid, counsel, assist, and protect the interests of the Nation's small business concerns. He delegates responsibility and authority, except the authority to make or decline pool loans; applies research programs; and defense production pools, as set forth in sections 7(a)(6), 9(d), and 11 of the Small Business Act, to the Deputy Administrator, associate administrators, other Central Office officials reporting directly to him, and the regional directors. He consults with Federal, State, and local agencies in behalf of small business interests in the national economy. Reports to the President and Congress on Agency program accomplishments and problems. He directs the execution of authority delegated to the Administrator by the Secretary of Housing and Urban Development with respect to performance of SBA's responsibilities under section 312 of the Housing Act of 1964, as amended. He maintains as a responsibility of his office the activities related to equal employment opportunity and compliance within SBA, formal review of size appeals cases, Agency participation and representation in the Interagency Program, and the SBA Program Advisory Council. He periodically evaluates the performance, accomplishments, and short-range and long-range planning goals of the Central Office officials reporting directly to him, and the regional directors. (a) National Advisory Council-Small Business Administration. The National Advisory Council of the Small Business Administration is composed of representatives from each of the District Advisory Councils and Members-at-Large from each of the Agency regions. These representatives are persons actively engaged in small business or finance, or in services or professions related to small business including the fields of labor, law, accounting, insurance, education, real estate, and the news media. These members particularly qualified by their knowledge of and interest in small business are able to contribute substantially to the Agency and the small business community. All members are selected by the Administrator and serve at his pleasure without compensation. The council meets with and advises the Administrator on the development, execution, and evaluation of present or proposed SBA programs. All functions are purely advisory and all determinations of actions to be taken are made solely by the responsible SBA officials. (b) Office of Equal Employment Opportunity and Compliance. Serves as a special assistant to the Administrator and plans, directs, coordinates, and administers the agencywide program to promote and insure equal employment opportunity and the compliance program of the Small Business Administration, in accordance with the applicable provisions of titles VI and VII of the Civil Rights Act and pertinent Executive orders. Develops and implements plans, procedures, and instructions governing the equal employment and equal opportunity programs and activities including the conduct of compliance and field reviews. Schedules and maintains control of activities conducted by equal opportunity compliance staff stationed in the field offices. Assigns these coordinators on a post-of-duty basis dependent on workload. Serves as fair employment officer and handles all complaints based on race, religion, color, sex, or national origin received from employees or applicants for employment, and recommends the solution to the problems involved to the Administrator. Provides advice and assistance to Central and regional office personnel with respect to the equal employment and equal opportunity programs as it affects their operations and activities. Prepares and evaluates regular and special reports on equal employment opportunity and compliance activities, taking appropriate action or submitting recommendations to the Administrator. Refers to the Office of Security and Investigations those matters revealed in the course of investigative work that appear to be violations of existing statutes or regulations applicable to the operations of SBA. Plans and conducts a major college executive recruitment effort to provide minority and nonminority candidates for professional positions, especially the recruitment of interns. Serves as a member of the Intern Advisory Council. Serves as liaison with other Federal and nonfederal agencies on matters relating to Civil Rights. Serves as Civil Rights Coordinator of the SBA. Cooperates with other responsible officials in the development of the bank relations program, a cooperative project between minority banks and other banks in strategic areas of concern, to stimulate efforts toward helping develop opportunities for the disadvantaged. Reviews and evaluates the effectiveness of the equal employment opportunity and equal opportunity compliance program. (c) Hearing examiner. Presides at hearings and examinations conducted in accordance with proceedings of section 11 of the Administrative Procedures Act. These hearings and examinations involve the enforcement of compliance with the provisions of the Small Business Investment Act, policies and regulations issued by SBA under the act, in addition to compliance matters involving the SBA civil rights program and regulations pursuant to the provisions of the Civil Rights Act of 1964. Also conducts hearings relative to disputed articles in the administration of SBA contracts. Administers caths, subpoenas witnesses; takes testimony; rules on the admissibility of evidence, offers of proof, and other disputed matters; rules upon motions and procedural requests; and takes all necessary precautions to protect the rights of all parties. Makes decisions based upon the evidence in the record, the arguments and contentions made, and the application of law and regulations to the facts. [Amdt. 15, 36 F.R. 3171, Feb. 19, 1971] § 101.2-1 General Counsel. Plans, directs, coordinates, and implements the provision of legal services in support of SBA program operations agencywide, including the execution of loan closing and litigation activities by Agency counsel. Formulates and recommends policy and directs the establishment of agencywide standards and procedures governing the legal functions and activities. Analyzes and interprets legislation, regulations, and orders relating to the operation of the Small Business Administration. Advises the Administrator and other officials as to the legal aspects of the development and execution of policies and programs. Negotiates with Government agencies as to the legal aspects of matters pertaining to responsibilities of SBA and drafts resultant agreements. Develops legal theories incorporated in requests to the Comptroller General or to other Government agencies for decisions in matters of interest to small business. Provides legal counsel, advice, and assistance to Agency officials in connection with the financial, investment, administrative, technical, procurement and management assistance, and minority enterprise programs, and in the formation of defense production and research and development pools. Also, determines eligibility of applicants for assistance from SBA. Advises with respect to servicing and liquidation of loans. Assists and participates with the Department of Justice in litigation arising from delinquent loans, criminal matters, and other SBA program activities. Prosecutes administrative proceedings pursuant to the Small Business Investment Act. Reviews legislative proposals affecting small business and develops recommendations for the Office of Management and Budget and congressional committees; prepares legislative proposals relating to SBA; and develops reports for congressional hearings or the Office of the President. Prepares documents for publication in the FEDERAL REGISTER and is responsible for interpreting the Administrative Procedure Act. Serves as legal adviser to the Size Appeals Board. Maintains liaison with governmental and other agencies having activities related to the legal and advocacy functions of the Agency. (a) Administrative Operations Staff. Furnishes all administrative and logistic support to the Office of General Counsel. Formulates, develops, and executes budget submissions, including receipt and control of allotment advices, and planning, programing, and budgeting system requirements. Provides all administrative operating facilities services involving space management, procurements, communications, records, printing, and other administrative support. Provides and advises on personnel administration and staffing requirements, employee relations, training, and other related activities for Central and field offices. Analyzes work measurement and statistical reporting data; prepares analytical reports and data on manpower utilization, workload, production, staffing, and other information, as needed. Conducts or participates with other organizational elements in management type surveys and studies and organizational matters which affect or involve the operation of OGC. Reviews or prepares procedures and instructions and other guidelines as required. Establishes and directs the main tenance of a law library, which contains primarily legal publications and legislatibe materials and serves as a legal reference center for all SBA employees Maintains files and records of OGC, including official litigation files of the Agency. Reviews and evaluates legal program operations and activities within the regions and recommends corrective policies, when required. Visits field offices to appraise performance. Coordinates followup actions and replies on reports of audit examinations of legal operations. Advises General Counsel on special problems and administrative matters, prepares materials and reports for submission to the Administrator or Congress, and carries out other assignments, as directed. Coordinates these functions with the administrative offices involved. (b) Office of Finance. Plans, directs, coordinates, and evaluates all legal functions and activities relating to the Agency's financial assistance, economic development, and small business investment company programs, exclusive of liquidation and litigative matters. Provides legal counseling and assistance and establishes procedures for the provision of legal services in connection with the processing and servicing of SBA regular business, displaced business, disaster, economic opportunity assistance, and sections 501-502 development company loans, lease guarantees, rehabilitation loans for the Department of HUD, and EDA loans, as authorized. Formulates policy and establishes procedures governing the closing, and disbursing of SBA and HUD loans and closing of EDA approved loans, when authorized, by field legal staff. Provides legal advice and services in connection with economic development financing programs, including the formation of State and local development companies. Participates in the negotiation of and prepares reinsurance agreements with private insurance carriers under the lease guarantee program. Provides legal services, counsel, and advice in connection with licensing, regulating, and financing to SBIC's. Negotiates, prepares, and administers settlement agreements with "problem" SBIC's to facilitate their voluntary withdrawal from the program and to refinance their indebtedness to SBA. Interprets applicable acts, regulations, and policies from a legal standpoint, including determinations as to eligibility and complaince with statutory and regulatory requirements. Analyzes and com |