Authority

15 USCS § 636
Current through Public Law 117-166, approved August 5, 2022.
United States Code Service > TITLE 15. COMMERCE AND TRADE (Chs. 1 — 120) > CHAPTER 14A. AID
TO SMALL BUSINESS (§§ 631 — 657u)

§ 636. Additional powers [Caution: See prospective amendment note below.]
(a) Loans to small business concerns; allowable purposes; qualified business; restrictions and
limitations. The Administration is empowered to the extent and in such amounts as provided in
advance in appropriation Acts to make loans for plant acquisition, construction, conversion, or
expansion, including the acquisition of land, material, supplies, equipment, and working capital,
and to make loans to any qualified small business concern, including those owned by qualified
Indian tribes, for purposes of this Act. Such financings may be made either directly or in
cooperation with banks or other financial institutions through agreements to participate on an
immediate or deferred (guaranteed) basis. These powers shall be subject, however, to the
following restrictions, limitations, and provisions:
(1) In general.
(A) Credit elsewhere.
(i) In general. The Administrator has the authority to direct, and conduct oversight for,
the methods by which lenders determine whether a borrower is able to obtain credit
elsewhere. No financial assistance shall be extended pursuant to this subsection if the
applicant can obtain credit elsewhere. No immediate participation may be purchased
unless it is shown that a deferred participation is not available; and no direct financing
may be made unless it is shown that a participation is not available.
(ii) Liquidity. On and after October 1, 2015, the Administrator may not guarantee a
loan under this subsection if the lender determines that the borrower is unable to obtain
credit elsewhere solely because the liquidity of the lender depends upon the guaranteed
portion of the loan being sold on the secondary market.
(B) Background checks. Prior to the approval of any loan made pursuant to this
subsection, or section 503 of the Small Business Investment Act of 1958 [15 USCS § 697],
the Administrator may verify the applicant’s criminal background, or lack thereof, through
the best available means, including, if possible, use of the National Crime Information
Center computer system at the Federal Bureau of Investigation.
(C) Lending limits of lenders. On and after October 1, 2015, the Administrator may not
guarantee a loan under this subsection if the sole purpose for requesting the guarantee is to
allow the lender to exceed the legal lending limit of the lender.
(2) Level of participation in guaranteed loans.
(A) In general. Except as provided in subparagraphs (B), (D), (E), and (F), in an
agreement to participate in a loan on a deferred basis under this subsection (including a

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loan made under the Preferred Lenders Program), such participation by the Administration
shall be equal to—
(i) 75 percent of the balance of the financing outstanding at the time of disbursement
of the loan, if such balance exceeds $150,000; or
(ii) 85 percent of the balance of the financing outstanding at the time of disbursement
of the loan, if such balance is less than or equal to $150,000.
(B) Reduced participation upon request.
(i) In general. The guarantee percentage specified by subparagraph (A) for any loan
under this subsection may be reduced upon the request of the participating lender.
(ii) Prohibition. The Administration shall not use the guarantee percentage requested
by a participating lender under clause (i) as a criterion for establishing priorities in
approving loan guarantee requests under this subsection.
(C) Interest rate under Preferred Lenders Program.
(i) In general. The maximum interest rate for a loan guaranteed under the Preferred
Lenders Program shall not exceed the maximum interest rate, as determined by the
Administration, applicable to other loans guaranteed under this subsection.
(ii) Export-Import Bank lenders. Any lender that is participating in the Delegated
Authority Lender Program of the Export-Import Bank of the United States (or any
successor to the Program) shall be eligible to participate in the Preferred Lenders
Program.
(iii) Preferred Lenders Program defined. For purposes of this subparagraph, the term
“Preferred Lenders Program” means any program established by the Administrator, as
authorized under the proviso in section 5(b)(7) [15 USCS § 634(b)(7)], under which a
written agreement between the lender and the Administration delegates to the lender—
(I) complete authority to make and close loans with a guarantee from the
Administration without obtaining the prior specific approval of the Administration;
and
(II) complete authority to service and liquidate such loans without obtaining the
prior specific approval of the Administration for routine servicing and liquidation
activities, but shall not take any actions creating an actual or apparent conflict of
interest.
(D) Participation under Export Working Capital Program. In an agreement to participate in
a loan on a deferred basis under the Export Working Capital Program established pursuant
to paragraph (14)(A), such participation by the Administration shall be 90 percent.
(E) Participation in international trade loan. In an agreement to participate in a loan on a
deferred basis under paragraph (16), the participation by the Administration may not
exceed 90 percent.
(F) Participation in the paycheck protection program. In an agreement to participate in a
loan on a deferred basis under paragraph (36), the participation by the Administration shall
be 100 percent.

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(3) No loan shall be made under this subsection—
(A) if the total amount outstanding and committed (by participation or otherwise) to the
borrower from the business loan and investment fund established by this Act would exceed
$3,750,000 (or if the gross loan amount would exceed $5,000,000), except as provided in
subparagraph (B);
(B) if the total amount outstanding and committed (on a deferred basis) solely for the
purposes provided in paragraph (16) to the borrower from the business loan and investment
fund established by this Act would exceed $4,500,000 (or if the gross loan amount would
exceed $5,000,000), of which not more than $4,000,000 may be used for working capital,
supplies, or financings under section 7(a)(14) [subsec. (a)(14) of this section] for export
purposes; and
(C) if effected either directly or in cooperation with banks or other lending institutions
through agreements to participate on an immediate basis if the amount would exceed
$350,000.
(4) Interest rates and prepayment charges.
(A) Interest rates. Notwithstanding the provisions of the constitution of any State or the
laws of any State limiting the rate or amount of interest which may be charged, taken,
received, or reserved, the maximum legal rate of interest on any financing made on a
deferred basis pursuant to this subsection shall not exceed a rate prescribed by the
Administration, and the rate of interest for the Administration’s share of any direct or
immediate participation loan shall not exceed the current average market yield on
outstanding marketable obligations of the United States with remaining periods to maturity
comparable to the average maturities of such loans and adjusted to the nearest one-eighth
of 1 per centum, and an additional amount as determined by the Administration, but not to
exceed 1 per centum per annum: Provided, That for those loans to assist any public or
private organization for the handicapped or to assist any handicapped individual as
provided in paragraph (10) of this subsection, the interest rate shall be 3 per centum per
annum.
(B) Payment of accrued interest.
(i) In general. Any bank or other lending institution making a claim for payment on the
guaranteed portion of a loan made under this subsection shall be paid the accrued
interest due on the loan from the earliest date of default to the date of payment of the
claim at a rate not to exceed the rate of interest on the loan on the date of default, minus
one percent.
(ii) Loans sold on secondary market. If a loan described in clause (i) is sold on the
secondary market, the amount of interest paid to a bank or other lending institution
described in that clause from the earliest date of default to the date of payment of the
claim shall be no more than the agreed upon rate, minus one percent.
(iii) Applicability. Clauses (i) and (ii) shall not apply to loans made on or after October
1, 2000.
(C) Prepayment charges.

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(i) In general. A borrower who prepays any loan guaranteed under this subsection shall
remit to the Administration a subsidy recoupment fee calculated in accordance with
clause (ii) if—
(I) the loan is for a term of not less than 15 years;
(II) the prepayment is voluntary;
(III) the amount of prepayment in any calendar year is more than 25 percent of the
outstanding balance of the loan; and
(IV) the prepayment is made within the first 3 years after disbursement of the loan
proceeds.
(ii) Subsidy recoupment fee. The subsidy recoupment fee charged under clause (i)
shall be—
(I) 5 percent of the amount of prepayment, if the borrower prepays during the first
year after disbursement;
(II) 3 percent of the amount of prepayment, if the borrower prepays during the
second year after disbursement; and
(III) 1 percent of the amount of prepayment, if the borrower prepays during the
third year after disbursement.
(5) No such loans including renewals and extensions thereof may be made for a period or
periods exceeding twenty-five years, except that such portion of a loan made for the purpose of
acquiring real property or constructing, converting, or expanding facilities may have a maturity
of twenty-five years plus such additional period as is estimated may be required to complete
such construction, conversion, or expansion.
(6) All loans made under this subsection shall be of such sound value or so secured as
reasonably to assure repayment: Provided, however, That—
(A) for loans to assist any public or private organization or to assist any handicapped
individual as provided in paragraph (10) of this subsection any reasonable doubt shall be
resolved in favor of the applicant;
(B) recognizing that greater risk may be associated with loans for energy measures as
provided in paragraph (12) of this subsection, factors in determining “sound value” shall
include, but not be limited to, quality of the product or service; technical qualifications of
the applicant or his employees; sales projections; and the financial status of the business
concern: Provided further, That such status need not be as sound as that required for
general loans under this subsection; and [.]
On that portion of the loan used to refinance existing indebtedness held by a bank or other
lending institution, the Administration shall limit the amount of deferred participation to 80 per
centum of the amount of the loan at the time of disbursement: Provided further, That any
authority conferred by this subparagraph on the Administration shall be exercised solely by the
Administration and shall not be delegated to other than Administration personnel.
(7)

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(A) In general .The Administrator may defer payments on the principal and interest of
such loans for a grace period and use such other methods as it deems necessary and
appropriate to assure the successful establishment and operation of such concern.
(B) Deferral requirements. With respect to a deferral provided under this paragraph, the
Administrator may allow lenders under this subsection—
(i) to provide full payment deferment relief (including payment of principal and
interest) for a period of not more than 1 year; and
(ii) to provide an additional deferment period if the borrower provides documentation
justifying such additional deferment.
(C) Secondary market.
(i) In general. Except as provided in clause (ii), if an investor declines to approve a
deferral or additional deferment requested by a lender under subparagraph (B), the
Administrator shall exercise the authority to purchase the loan so that the borrower may
receive full payment deferment relief (including payment of principal and interest) or
an additional deferment as described in subparagraph (B).
(ii) Exception. If, in a fiscal year, the Administrator determines that the cost of
implementing clause (i) is greater than zero, the Administrator shall not implement that
clause.
(8) The Administration may make loans under this subsection to small business concerns
owned and controlled by disabled veterans (as defined in section 4211(3) of title 38, United
States Code).
(9) The Administration may provide loans under this subsection to finance residential or
commercial construction or rehabilitation for sale: Provided, however, That such loans shall
not be used primarily for the acquisition of land.
(10) The Administration may provide guaranteed loans under this subsection to assist any
public or private organization for the handicapped or to assist any handicapped individual,
including service-disabled veterans, in establishing, acquiring, or operating a small business
concern.
(11) The Administration may provide loans under this subsection to any small business
concern, or to any qualified person seeking to establish such a concern when it determines that
such loan will further the policies established in section 2(c) of this Act, with particular
emphasis on the preservation or establishment of small business concerns located in urban or
rural areas with high proportions of unemployed or low-income individuals or owned by lowincome individuals.
(12)
(A) The Administration may provide loans under this subsection to assist any small
business concern, including start up, to enable such concern to design architecturally or
engineer, manufacture, distribute, market, install, or service energy measures: Provided,
however, That such loan proceeds shall not be used primarily for research and
development.

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[(B)](b) The Administration may provide deferred participation loans under this
subsection to finance the planning, design, or installation of pollution control facilities for
the purposes set forth in section 404 of the Small Business Investment Act of 1958 [15
USCS § 694-1]. Notwithstanding the limitation expressed in paragraph (3) of this
subsection, a loan made under this paragraph may not result in a total amount outstanding
and committed to a borrower from the business loan and investment fund of more than
$1,000,000.
(13) The Administration may provide financings under this subsection to State and local
development companies for the purposes of, and subject to the restrictions in, title V of the
Small Business Investment Act of 1958 [15 USCS §§ 695 et seq.].
(14) Export Working Capital Program.
(A) In general. The Administrator may provide extensions of credit, standby letters of
credit, revolving lines of credit for export purposes, and other financing to enable small
business concerns, including small business export trading companies and small business
export management companies, to develop foreign markets. A bank or participating
lending institution may establish the rate of interest on such financings as may be legal and
reasonable.
(B) Terms.
(i) Loan amount. The Administrator may not guarantee a loan under this paragraph of
more than $5,000,000.
(ii) Fees.
(I) In general. For a loan under this paragraph, the Administrator shall collect the
fee assessed under paragraph (23) not more frequently than once each year.
(II) Untapped credit. The Administrator may not assess a fee on capital that is not
accessed by the small business concern.
(C) Considerations. When considering loan or guarantee applications, the Administration
shall give weight to export-related benefits, including opening new markets for United
States goods and services abroad and encouraging the involvement of small businesses,
including agricultural concerns, in the export market.
(D) Marketing. The Administrator shall aggressively market its export financing program
to small businesses.
(15)
(A) The Administration may guarantee loans under this subsection—
(i) to qualified employee trusts with respect to a small business concern for the
purpose of purchasing, and for any transaction costs associated with purchasing, stock
of the concern under a plan approved by the Administrator which, when carried out,
results in the qualified employee trust owning at least 51 per centum of the stock of the
concern; and
(ii) to a small business concern under a plan approved by the Administrator, if the
proceeds from the loan are only used to make a loan to a qualified employee trust, and

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for any transaction costs associated with making that loan, that results in the qualified
employee trust owning at least 51 percent of the small business concern.
(B) The plan requiring the Administrator's approval under subparagraph (A) shall be
submitted to the Administration by the trustee of such trust or by the small business
concern with its application for the guarantee. Such plan shall include an agreement with
the Administrator which is binding on such trust and on the small business concern and
which provides that—
(i) not later than the date the loan guaranteed under subparagraph (A) is repaid (or as
soon thereafter as is consistent with the requirements of section 401(a) of the Internal
Revenue Code of 1954 [26 USCS § 401(a)]), at least 51 per centum of the total stock of
such concern shall be allocated to the accounts of at least 51 per centum of the
employees of such concern who are entitled to share in such allocation,
(ii) there will be periodic reviews of the role in the management of such concern of
employees to whose accounts stock is allocated,
(iii) there will be adequate management to assure management expertise and
continuity, and
(iv) with respect to a loan made to a trust, or to a cooperative in accordance with
paragraph (35)—
(I) a seller of the small business concern may remain involved as an officer,
director, or key employee of the small business concern when a qualified employee
trust or cooperative has acquired 100 percent of ownership of the small business
concern; and
(II) any seller of the small business concern who remains as an owner of the small
business concern, regardless of the percentage of ownership interest, shall be
required to provide a personal guarantee by the Administration.
(C) In determining whether to guarantee any loan under this paragraph, the individual
business experience or personal assets of employee-owners shall not be used as criteria,
except inasmuch as certain employee-owners may assume managerial responsibilities, in
which case business experience may be considered.
(D) For purposes of this paragraph, a corporation which is controlled by any other person
shall be treated as a small business concern if such corporation would, after the plan
described in subparagraph (B) is carried out, be treated as a small business concern.
(E) The Administration shall compile a separate list of applications for assistance under
this paragraph, indicating which applications were accepted and which were denied, and
shall report periodically to the Congress on the status of employee-owned firms assisted by
the Administration, which shall include—
(i) the total number of loans made to employee-owned business concerns that were
guaranteed by the Administrator under section 7(a) of the Small Business Act (15
U.S.C. 636(a)) or section 502 of the Small Business Investment Act of 1958 (15 U.S.C.
696), including the number of loans made—

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(I) to small business concerns owned and controlled by socially and economically
disadvantaged individuals; and
(II) to cooperatives;
(ii) the total number of financings made to employee-owned business concerns by
companies licensed under section 301(c) of the Small Business Investment Act of 1958
(15 U.S.C. 696(c)), including the number of financings made—
(I) to small business concerns owned and controlled by socially and economically
disadvantaged individuals; and
(II) to cooperatives; and
(iii) any outreach and educational activities conducted by the Administration with
respect to employee-owned business concerns.
(F) A small business concern that makes a loan to a qualified employee trust under
subparagraph (A)(ii) is not required to contain the same terms and conditions as the loan
made to the small business concern that is guaranteed by the Administration under such
subparagraph.
(G) With respect to a loan made to a qualified employee trust under this paragraph, or to a
cooperative in accordance with paragraph (35), the Administrator may, as deemed
appropriate, elect to not require any mandatory equity to be provided by the qualified
employee trust or cooperative to make the loan.
(16) International trade.
(A) In general. If the Administrator determines that a loan guaranteed under this
subsection will allow an eligible small business concern that is engaged in or adversely
affected by international trade to improve its competitive position, the Administrator may
make such loan to assist such concern—
(i) in the financing of the acquisition, construction, renovation, modernization,
improvement, or expansion of productive facilities or equipment to be used in the
United States in the production of goods and services involved in international trade;
(ii) in the refinancing of existing indebtedness that is not structured with reasonable
terms and conditions, including any debt that qualifies for refinancing under any other
provision of this subsection; or
(iii) by providing working capital.
(B) Security.
(i) In general. Except as provided in clause (ii), each loan made under this paragraph
shall be secured by a first lien position or first mortgage on the property or equipment
financed by the loan or on other assets of the small business concern.
(ii) Exception. A loan under this paragraph may be secured by a second lien position
on the property or equipment financed by the loan or on other assets of the small
business concern, if the Administrator determines the lien provides adequate assurance
of the payment of the loan.

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(C) Engaged in international trade. For purposes of this paragraph, a small business
concern is engaged in international trade if, as determined by the Administrator, the small
business concern is in a position to expand existing export markets or develop new export
markets.
(D) Adversely affected by international trade. For purposes of this paragraph, a small
business concern is adversely affected by international trade if, as determined by the
Administrator, the small business concern—
(i) is confronting increased competition with foreign firms in the relevant market; and
(ii) is injured by such competition.
(E) Findings by certain Federal agencies. For purposes of subparagraph (D)(ii) the
Administrator shall accept any finding of injury by the International Trade Commission or
any finding of injury by the Secretary of Commerce pursuant to chapter 3 of title II of the
Trade Act of 1974 [19 USCS §§ 2341 et seq.].
(F) List of export finance lenders.
(i) Publication of list required. The Administrator shall publish an annual list of the
banks and participating lending institutions that, during the 1-year period ending on the
date of publication of the list, have made loans guaranteed by the Administration
under—
(I) this paragraph;
(II) paragraph (14); or
(III) paragraph (34).
(ii) Availability of list. The Administrator shall—
(I) post the list published under clause (i) on the website of the Administration; and
(II) make the list published under clause (i) available, upon request, at each district
office of the Administration.
(17) The Administration shall authorize lending institutions and other entities in addition to
banks to make loans authorized under this subsection.
(18) Guarantee fees.
(A) In general. With respect to each loan guaranteed under this subsection (other than a
loan that is repayable in 1 year or less), the Administration shall collect a guarantee fee,
which shall be payable by the participating lender, and may be charged to the borrower, as
follows:
(i) A guarantee fee not to exceed 2 percent of the deferred participation share of a total
loan amount that is not more than $150,000.
(ii) A guarantee fee not to exceed 3 percent of the deferred participation share of a
total loan amount that is more than $150,000, but not more than $700,000.
(iii) A guarantee fee not to exceed 3.5 percent of the deferred participation share of a
total loan amount that is more than $700,000.

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(iv) In addition to the fee under clause (iii), a guarantee fee equal to 0.25 percent of
any portion of the deferred participation share that is more than $1,000,000.
(B) Retention of certain fees. Lenders participating in the programs established under this
subsection may retain not more than 25 percent of a fee collected under subparagraph
(A)(i).
(19)
(A) In addition to the Preferred Lenders Program authorized by the proviso in section
5(b)(7) [15 USCS § 634(b)(7)], the Administration is authorized to establish a Certified
Lenders Program for lenders who establish their knowledge of Administration laws and
regulations concerning the guaranteed loan program and their proficiency in program
requirements. The designation of a lender as a certified lender shall be suspended or
revoked at any time that the Administration determines that the lender is not adhering to its
rules and regulations or that the loss experience of the lender is excessive as compared to
other lenders, but such suspension or revocation shall not affect any outstanding guarantee.
(B) In order to encourage all lending institutions and other entities making loans
authorized under this subsection to provide loans of $50,000 or less in guarantees to
eligible small business loan applicants, the Administration shall develop and allow
participating lenders to solely utilize a uniform and simplified loan form for such loans.
(C) Authority to liquidate loans.
(i) In general. The Administrator may permit lenders participating in the Certified
Lenders Program to liquidate loans made with a guarantee from the Administration
pursuant to a liquidation plan approved by the Administrator.
(ii) Automatic approval. If the Administrator does not approve or deny a request for
approval of a liquidation plan within 10 business days of the date on which the request
is made (or with respect to any routine liquidation activity under such a plan, within 5
business days) such request shall be deemed to be approved.
(20)
(A) The Administration is empowered to make loans either directly or in cooperation with
banks or other financial institutions through agreements to participate on an immediate or
deferred (guaranteed) basis to small business concerns eligible for assistance under
subsection (j)(10) and section 8(a) [15 USCS § 637(a)]. Such assistance may be provided
only if the Administration determines that—
(i) the type and amount of such assistance requested by such concern is not otherwise
available on reasonable terms from other sources;
(ii) with such assistance such concern has a reasonable prospect for operating soundly
and profitably within a reasonable period of time;
(iii) the proceeds of such assistance will be used within a reasonable time for plant
construction, conversion, or expansion, including the acquisition of equipment,
facilities, machinery, supplies, or material or to supply such concern with working
capital to be used in the manufacture of articles, equipment, supplies, or material for

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defense or civilian production or as may be necessary to insure a well-balanced
national economy; and
(iv) such assistance is of such sound value as reasonably to assure that the terms under
which it is provided will not be breached by the small business concern.
(B)
(i) No loan shall be made under this paragraph if the total amount outstanding and
committed (by participation or otherwise) to the borrower would exceed $750,000.
(ii) Subject to the provisions of clause (i), in agreements to participate in loans on a
deferred (guaranteed) basis, participation by the Administration shall be not less than
85 per centum of the balance of the financing outstanding at the time of disbursement.
(iii) The rate of interest on financings made on a deferred (guaranteed) basis shall be
legal and reasonable.
(iv) Financings made pursuant to this paragraph shall be subject to the following
limitations:
(I) No immediate participation may be purchased unless it is shown that a deferred
participation is not available.
(II) No direct financing may be made unless it is shown that a participation is
unavailable.
(C) A direct loan or the Administration’s share of an immediate participation loan made
pursuant to this paragraph shall be any secured debt instrument—
(i) that is subordinated by its terms to all other borrowings of the issuer;
(ii) the rate of interest on which shall not exceed the current average market yield on
outstanding marketable obligations of the United States with remaining periods to
maturity comparable to the average maturities of such loan and adjusted to the nearest
one-eighth of 1 per centum;
(iii) the term of which is not more than twenty-five years; and
(iv) the principal on which is amortized at such rate as may be deemed appropriate by
the Administration, and the interest on which is payable not less often than annually.
(21)
(A) The Administration may make loans on a guaranteed basis under the authority of this
subsection—
(i) to a small business concern that has been (or can reasonably be expected to be)
detrimentally affected by—
(I) the closure (or substantial reduction) of a Department of Defense installation; or
(II) the termination (or substantial reduction) of a Department of Defense program
on which such small business was a prime contractor or subcontractor (or supplier)
at any tier; or

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(ii) to a qualified individual or a veteran seeking to establish (or acquire) and operate a
small business concern.
(B) Recognizing that greater risk may be associated with a loan to a small business
concern described in subparagraph (A)(i), any reasonable doubts concerning the firm’s
proposed business plan for transition to nondefense-related markets shall be resolved in
favor of the loan applicant when making any determination regarding the sound value of
the proposed loan in accordance with paragraph (6).
(C) Loans pursuant to this paragraph shall be authorized in such amounts as provided in
advance in appropriation Acts for the purposes of loans under this paragraph.
(D) For purposes of this paragraph a qualified individual is—
(i) a member of the Armed Forces of the United States, honorably discharged from
active duty involuntarily or pursuant to a program providing bonuses or other
inducements to encourage voluntary separation or early retirement;
(ii) a civilian employee of the Department of Defense involuntarily separated from
Federal service or retired pursuant to a program offering inducements to encourage
early retirement; or
(iii) an employee of a prime contractor, subcontractor, or supplier at any tier of a
Department of Defense program whose employment is involuntarily terminated (or
voluntarily terminated pursuant to a program offering inducements to encourage
voluntary separation or early retirement) due to the termination (or substantial
reduction) of a Department of Defense program.
(E) Job creation and community benefit. In providing assistance under this paragraph, the
Administration shall develop procedures to ensure, to the maximum extent practicable, that
such assistance is used for projects that—
(i) have the greatest potential for—
(I) creating new jobs for individuals whose employment is involuntarily terminated
due to reductions in Federal defense expenditures; or
(II) preventing the loss of jobs by employees of small business concerns described
in subparagraph (A)(i); and
(ii) have substantial potential for stimulating new economic activity in communities
most affected by reductions in Federal defense expenditures.
(22) The Administration is authorized to permit participating lenders to impose and collect a
reasonable penalty fee on late payments of loans guaranteed under this subsection in an
amount not to exceed 5 percent of the monthly loan payment per month plus interest.
(23) Yearly fee.
(A) In general. With respect to each loan approved under this subsection, the
Administration shall assess, collect, and retain a fee, not to exceed 0.55 percent per year of
the outstanding balance of the deferred participation share of the loan, in an amount
established once annually by the Administration in the Administration’s annual budget
request to Congress, as necessary to reduce to zero the cost to the Administration of

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making guarantees under this subsection. As used in this paragraph, the term “cost” has the
meaning given that term in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C.
661a).
(B) Payer. The yearly fee assessed under subparagraph (A) shall be payable by the
participating lender and shall not be charged to the borrower.
(C) Lowering of borrower fees. If the Administration determines that fees paid by lenders
and by small business borrowers for guarantees under this subsection may be reduced,
consistent with reducing to zero the cost to the Administration of making such
guarantees—
(i) the Administration shall first consider reducing fees paid by small business
borrowers under clauses (i) through (iii) of paragraph (18)(A), to the maximum extent
possible; and
(ii) fees paid by small business borrowers shall not be increased above the levels in
effect on the date of enactment of this subparagraph [enacted Dec. 8, 2004].
(24) Notification requirement. The Administration shall notify the Committees on Small
Business of the Senate and the House of Representatives not later than 15 days before making
any significant policy or administrative change affecting the operation of the loan program
under this subsection.
(25) Limitation on conducting pilot projects.
(A) In general. Not more than 10 percent of the total number of loans guaranteed in any
fiscal year under this subsection may be awarded as part of a pilot program which is
commenced by the Administrator on or after October 1, 1996.
(B) Pilot program defined. In this paragraph, the term “pilot program” means any lending
program initiative, project, innovation, or other activity not specifically authorized by law.
(C) Low documentation loan program. The Administrator may carry out the low
documentation loan program for loans of $100,000 or less only through lenders with
significant experience in making small business loans. Not later than 90 days after the date
of enactment of this subsection, the Administrator shall promulgate regulations defining
the experience necessary for participation as a lender in the low documentation loan
program.
(26) Calculation of subsidy rate. All fees, interest, and profits received and retained by the
Administration under this subsection shall be included in the calculations made by the Director
of the Office of Management and Budget to offset the cost (as that term is defined in section
502 of the Federal Credit Reform Act of 1990 [2 USCS § 661a]) to the Administration of
purchasing and guaranteeing loans under this Act.
(27) [Repealed]
(28) Leasing. In addition to such other lease arrangements as may be authorized by the
Administration, a borrower may permanently lease to one or more tenants not more than 20
percent of any property constructed with the proceeds of a loan guaranteed under this
subsection, if the borrower permanently occupies and uses not less than 60 percent of the total
business space in the property.

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(29) Real estate appraisals. With respect to a loan under this subsection that is secured by
commercial real property, an appraisal of such property by a State licensed or certified
appraiser—
(A) In general. With respect to a loan under this subsection that is secured by commercial
real property, an appraisal of such property by a State licensed or certified appraiser—
(i) shall be required by the Administration in connection with any such loan, if such
loan is in an amount greater than the Federal banking regulator appraisal threshold; or
(ii) may be required by the Administration or the lender in connection with any such
loan, if such loan is in an amount equal to or less than the Federal banking regulator
appraisal threshold, if such appraisal is necessary for appropriate evaluation of
creditworthiness.
(B) Federal banking regulator appraisal threshold defined. For purposes of this paragraph,
the term "Federal banking regulator appraisal threshold" means the lesser of the threshold
amounts set by the Board of Governors of the Federal Reserve System, the Comptroller of
the Currency, and the Federal Deposit Insurance Corporation for when a federally related
transaction that is a commercial real estate transaction requires an appraisal prepared by a
State licensed or certified appraiser.
(30) Ownership requirements. Ownership requirements to determine the eligibility of a small
business concern that applies for assistance under any credit program under this Act shall be
determined without regard to any ownership interest of a spouse arising solely from the
application of the community property laws of a State for purposes of determining marital
interests.
(31) Express loans.
(A) Definitions. As used in this paragraph:
(i) The term “disaster area” means the area for which the President has declared a
major disaster, during the 5-year period beginning on the date of the declaration.
(ii) The term “express lender” means any lender authorized by the Administration to
participate in the Express Loan Program.
(iii) The term “express loan” means any loan made pursuant to this paragraph in which
a lender utilizes to the maximum extent practicable its own loan analyses, procedures,
and documentation.
(iv) The term “Express Loan Program” means the program for express loans
established by the Administration under paragraph (25)(B), as in existence on April 5,
2004, with a guarantee rate of not more than 50 percent.
(B) Restriction to express lender. The authority to make an express loan shall be limited to
those lenders deemed qualified to make such loans by the Administration. Designation as
an express lender for purposes of making an express loan shall not prohibit such lender
from taking any other action authorized by the Administration for that lender pursuant to
this subsection.

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(C) Grandfathering of existing lenders. Any express lender shall retain such designation
unless the Administration determines that the express lender has violated the law or
regulations promulgated by the Administration or modifies the requirements to be an
express lender and the lender no longer satisfies those requirements.
(D) Maximum loan amount. The maximum loan amount under the Express Loan Program
is $500,000.
(E) Option to participate. Except as otherwise provided in this paragraph, the
Administration shall take no regulatory, policy, or administrative action, without regard to
whether such action requires notification pursuant to paragraph (24), that has the effect of
requiring a lender to make an express loan pursuant to subparagraph (D).
(F) Express loans for renewable energy and energy efficiency.
(i) Definitions. In this subparagraph—
(I) the term “biomass”—
(aa) means any organic material that is available on a renewable or recurring
basis, including—
(AA) agricultural crops;
(BB) trees grown for energy production;
(CC) wood waste and wood residues;
(DD) plants (including aquatic plants and grasses);
(EE) residues;
(FF) fibers;
(GG) animal wastes and other waste materials; and
(HH) fats, oils, and greases (including recycled fats, oils, and greases); and
(bb) does not include—
(AA) paper that is commonly recycled; or
(BB) unsegregated solid waste;
(II) the term “energy efficiency project” means the installation or upgrading of
equipment that results in a significant reduction in energy usage; and
(III) the term “renewable energy system” means a system of energy derived
from—
(aa) a wind, solar, biomass (including biodiesel), or geothermal source; or
(bb) hydrogen derived from biomass or water using an energy source described
in item (aa).
(ii) Loans. The Administrator may make a loan under the Express Loan Program for
the purpose of—
(I) purchasing a renewable energy system; or

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(II) carrying out an energy efficiency project for a small business concern.
(G) Guarantee fee waiver for veterans.
(i) Guarantee fee waiver. The Administrator may not collect a guarantee fee described
in paragraph (18) in connection with a loan made under this paragraph to a veteran or
spouse of a veteran on or after October 1, 2015.
(ii) Definition. In this subparagraph, the term “veteran or spouse of a veteran”
means—
(I) a veteran, as defined in section 3(q)(4) [15 USCS § 632(q)(4)];
(II) an individual who is eligible to participate in the Transition Assistance
Program established under section 1144 of title 10, United States Code;
(III) a member of a reserve component of the Armed Forces named in section
10101 of title 10, United States Code;
(IV) the spouse of an individual described in subclause (I), (II), or (III); or
(V) the surviving spouse (as defined in section 101 of title 38, United States Code)
of an individual described in subclause (I), (II), or (III) who died while serving on
active duty or as a result of a disability that is service-connected (as defined in such
section).
(iii) [Redesignated]
(H) Recovery opportunity loans.
(i) In general. The Administrator may guarantee an express loan to a small business
concern located in a disaster area in accordance with this subparagraph.
(ii) Maximums. For a loan guaranteed under clause (i)—
(I) the maximum loan amount is $150,000; and
(II) the guarantee rate shall be not more than 85 percent.
(iii) Overall cap. A loan guaranteed under clause (i) shall not be counted in
determining the amount of loans made to a borrower for purposes of subparagraph (D).
(iv) Operations. A small business concern receiving a loan guaranteed under clause (i)
shall certify that the small business concern was in operation on the date on which the
applicable major disaster occurred as a condition of receiving the loan.
(v) Repayment ability. A loan guaranteed under clause (i) may only be made to a small
business concern that demonstrates, to the satisfaction of the Administrator, sufficient
capacity to repay the loan.
(vi) Timing of payment of guarantees.
(I) In general. Not later than 90 days after the date on which a request for purchase
is filed with the Administrator, the Administrator shall determine whether to pay
the guaranteed portion of the loan.
(II) Recapture. Notwithstanding any other provision of law, unless there is a
subsequent finding of fraud by a court of competent jurisdiction relating to a loan

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guaranteed under clause (i), on and after the date that is 6 months after the date on
which the Administrator determines to pay the guaranteed portion of the loan, the
Administrator may not attempt to recapture the paid guarantee.
(vii) Fees.
(I) In general. Unless the Administrator has waived the guarantee fee that would
otherwise be collected by the Administrator under paragraph (18) for a loan
guaranteed under clause (i), and except as provided in subclause (II), the guarantee
fee for the loan shall be equal to the guarantee fee that the Administrator would
collect if the guarantee rate for the loan was 50 percent.
(II) Exception. Subclause (I) shall not apply if the cost of carrying out the program
under this subsection in a fiscal year is more than zero and such cost is directly
attributable to the cost of guaranteeing loans under clause (i).
(viii) Rules. Not later than 270 days after the date of enactment of this subparagraph
[enacted Nov. 25, 2015], the Administrator shall promulgate rules to carry out this
subparagraph.
(32) Loans for energy efficient technologies.
(A) Definitions. In this paragraph—
(i) the term “cost” has the meaning given that term in section 502 of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a);
(ii) the term “covered energy efficiency loan” means a loan—
(I) made under this subsection; and
(II) the proceeds of which are used to purchase energy efficient designs,
equipment, or fixtures, or to reduce the energy consumption of the borrower by 10
percent or more; and
(iii) the term “pilot program” means the pilot program established under subparagraph
(B)[.]
(B) Establishment. The Administrator shall establish and carry out a pilot program under
which the Administrator shall reduce the fees for covered energy efficiency loans.
(C) Duration. The pilot program shall terminate at the end of the second full fiscal year
after the date that the Administrator establishes the pilot program.
(D) Maximum participation. A covered energy efficiency loan shall include the maximum
participation levels by the Administrator permitted for loans made under this subsection.
(E) Fees.
(i) In general. The fee on a covered energy efficiency loan shall be equal to 50 percent
of the fee otherwise applicable to that loan under paragraph (18).
(ii) Waiver. The Administrator may waive clause (i) for a fiscal year if—

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(I) for the fiscal year before that fiscal year, the annual rate of default of covered
energy efficiency loans exceeds that of loans made under this subsection that are
not covered energy efficiency loans;
(II) the cost to the Administration of making loans under this subsection is greater
than zero and such cost is directly attributable to the cost of making covered energy
efficiency loans; and
(III) no additional sources of revenue authority are available to reduce the cost of
making loans under this subsection to zero.
(iii) Effect of waiver. If the Administrator waives the reduction of fees under clause
(ii), the Administrator—
(I) shall not assess or collect fees in an amount greater than necessary to ensure
that the cost of the program under this subsection is not greater than zero; and
(II) shall reinstate the fee reductions under clause (i) when the conditions in clause
(ii) no longer apply.
(iv) No increase of fees. The Administrator shall not increase the fees under paragraph
(18) on loans made under this subsection that are not covered energy efficiency loans
as a direct result of the pilot program.
(F) GAO report.
(i) In general. Not later than 1 year after the date that the pilot program terminates, the
Comptroller General of the United States shall submit to the Committee on Small
Business of the House of Representatives and the Committee on Small Business and
Entrepreneurship of the Senate a report on the pilot program.
(ii) Contents. The report submitted under clause (i) shall include—
(I) the number of covered energy efficiency loans for which fees were reduced
under the pilot program;
(II) a description of the energy efficiency savings with the pilot program;
(III) a description of the impact of the pilot program on the program under this
subsection;
(IV) an evaluation of the efficacy and potential fraud and abuse of the pilot
program; and
(V) recommendations for improving the pilot program.
(33) Increased veteran participation program.
(A) Definitions. In this paragraph—
(i) the term “cost” has the meaning given that term in section 502 of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a);
(ii) the term “pilot program” means the pilot program established under subparagraph
(B); and

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(iii) the term “veteran participation loan” means a loan made under this subsection to a
small business concern owned and controlled by veterans of the Armed Forces or
members of the reserve components of the Armed Forces.
(B) Establishment. The Administrator shall establish and carry out a pilot program under
which the Administrator shall reduce the fees for veteran participation loans.
(C) Duration. The pilot program shall terminate at the end of the second full fiscal year
after the date that the Administrator establishes the pilot program.
(D) Maximum participation. A veteran participation loan shall include the maximum
participation levels by the Administrator permitted for loans made under this subsection.
(E) Fees.
(i) In general. The fee on a veteran participation loan shall be equal to 50 percent of
the fee otherwise applicable to that loan under paragraph (18).
(ii) Waiver. The Administrator may waive clause (i) for a fiscal year if—
(I) for the fiscal year before that fiscal year, the annual estimated rate of default of
veteran participation loans exceeds that of loans made under this subsection that are
not veteran participation loans;
(II) the cost to the Administration of making loans under this subsection is greater
than zero and such cost is directly attributable to the cost of making veteran
participation loans; and
(III) no additional sources of revenue authority are available to reduce the cost of
making loans under this subsection to zero.
(iii) Effect of waiver. If the Administrator waives the reduction of fees under clause
(ii), the Administrator—
(I) shall not assess or collect fees in an amount greater than necessary to ensure
that the cost of the program under this subsection is not greater than zero; and
(II) shall reinstate the fee reductions under clause (i) when the conditions in clause
(ii) no longer apply.
(iv) No increase of fees. The Administrator shall not increase the fees under paragraph
(18) on loans made under this subsection that are not veteran participation loans as a
direct result of the pilot program.
(F) GAO report.
(i) In general. Not later than 1 year after the date that the pilot program terminates, the
Comptroller General of the United States shall submit to the Committee on Small
Business of the House of Representatives and the Committee on Small Business and
Entrepreneurship of the Senate a report on the pilot program.
(ii) Contents. The report submitted under clause (i) shall include—
(I) the number of veteran participation loans for which fees were reduced under the
pilot program;

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(II) a description of the impact of the pilot program on the program under this
subsection;
(III) an evaluation of the efficacy and potential fraud and abuse of the pilot
program; and
(IV) recommendations for improving the pilot program.
(34) Export express program.
(A) Definitions. In this paragraph—
(i) the term “export development activity” includes—
(I) obtaining a standby letter of credit when required as a bid bond, performance
bond, or advance payment guarantee;
(II) participation in a trade show that takes place outside the United States;
(III) translation of product brochures or catalogues for use in markets outside the
United States;
(IV) obtaining a general line of credit for export purposes;
(V) performing a service contract from buyers located outside the United States;
(VI) obtaining transaction-specific financing associated with completing export
orders;
(VII) purchasing real estate or equipment to be used in the production of goods or
services for export;
(VIII) providing term loans or other financing to enable a small business concern,
including an export trading company and an export management company, to
develop a market outside the United States; and
(IX) acquiring, constructing, renovating, modernizing, improving, or expanding a
production facility or equipment to be used in the United States in the production of
goods or services for export; and
(ii) the term “express loan” means a loan in which a lender uses to the maximum
extent practicable the loan analyses, procedures, and documentation of the lender to
provide expedited processing of the loan application.
(B) Authority. The Administrator may guarantee the timely payment of an express loan to
a small business concern made for an export development activity.
(C) Level of participation.
(i) Maximum amount. The maximum amount of an express loan guaranteed under this
paragraph shall be $500,000.
(ii) Percentage. For an express loan guaranteed under this paragraph, the Administrator
shall guarantee—
(I) 90 percent of a loan that is not more than $350,000; and
(II) 75 percent of a loan that is more than $350,000 and not more than $500,000.

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(35) Loans to cooperatives.
(A) Definition. In this paragraph, the term "cooperative" means an entity that is
determined to be a cooperative by the Administrator, in accordance with applicable Federal
and State laws and regulation.
(B) Authority. The Administration shall guarantee loans made to a cooperative for the
purpose described in paragraph (15).
(36) Paycheck protection program.
(A) Definitions. In this paragraph—
(i) the terms “appropriate Federal banking agency” and “insured depository
institution” have the meanings given those terms in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813);
(ii) the term “covered loan” means a loan made under this paragraph during the
covered period;
(iii) the term “covered period” means the period beginning on February 15, 2020 and
ending on June 30, 2021;
(iv) the term “eligible recipient” means an individual or entity that is eligible to receive
a covered loan;
(v) the term “eligible self-employed individual” has the meaning given the term in
section 7002(b) of the Families First Coronavirus Response Act (Public Law 116-127)
[26 USCS § 1401 note];
(vi) the term “insured credit union” has the meaning given the term in section 101 of
the Federal Credit Union Act (12 U.S.C. 1752);
(vii) the term “nonprofit organization” means an organization that is described in
section 501(c)(3) of the Internal Revenue Code of 1986 [26 USCS § 501(c)(3)] and that
is exempt from taxation under section 501(a) of such Code [26 USCS § 501(a)];
(viii) the term “payroll costs”—
(I) means—
(aa) the sum of payments of any compensation with respect to employees that
is a—
(AA) salary, wage, commission, or similar compensation;
(BB) payment of cash tip or equivalent;
(CC) payment for vacation, parental, family, medical, or sick leave;
(DD) allowance for dismissal or separation;
(EE) payment required for the provisions of group health care or group life,
disability, vision, or dental insurance benefits, including insurance
premiums;
(FF) payment of any retirement benefit; or

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(GG) payment of State or local tax assessed on the compensation of
employees; and
(bb) the sum of payments of any compensation to or income of a sole
proprietor or independent contractor that is a wage, commission, income, net
earnings from self-employment, or similar compensation and that is in an
amount that is not more than $100,000 on an annualized basis, as prorated for
the period during which the payments are made or the obligation to make the
payments is incurred; and
(II) shall not include—
(aa) the compensation of an individual employee in excess of $100,000 on an
annualized basis, as prorated for the period during which the compensation is
paid or the obligation to pay the compensation is incurred;
(bb) taxes imposed or withheld under chapters 21, 22, or 24 of the Internal
Revenue Code of 1986 [26 USCS §§ 3101 et seq., §§ 3201 et seq. or §§ 3401 et
seq.] during the applicable period;
(cc) any compensation of an employee whose principal place of residence is
outside of the United States;
(dd) qualified sick leave wages for which a credit is allowed under section
7001 of the Families First Coronavirus Response Act (Public Law 116-127) [26
USCS § 3111 note]; or
(ee) qualified family leave wages for which a credit is allowed under section
7003 of the Families First Coronavirus Response Act (Public Law 116-127) [26
USCS § 3111 note];
(ix) the term “veterans organization” means an organization that is described in section
501(c)(19) of the Internal Revenue Code [26 USCS § 501(c)(19)] that is exempt from
taxation under section 501(a) of such Code [26 USCS § 501(a)];
(x) the term “community development financial institution” has the meaning given the
term in section 103 of the Riegle Community Development and Regulatory
Improvement Act of 1994 (12 U.S.C. 4702)[)];
(xi) the term “community financial institutions” means—
(I) a community development financial institution;
(II) a minority depository institution, as defined in section 308 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463
note);
(III) a development company that is certified under title V of the Small Business
Investment Act of 1958 (15 U.S.C. 695 et seq.); and
(IV) an intermediary, as defined in section 7(m)(11) [15 USCS § 636(m)(11)];
(xii) the term “credit union” means a State credit union or a Federal credit union, as
those terms are defined, respectively, in section 101 of the Federal Credit Union Act
(12 U.S.C. 1752);

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(xiii) the term “seasonal employer” means an eligible recipient that—
(I) does not operate for more than 7 months in any calendar year; or
(II) during the preceding calendar year, had gross receipts for any 6 months of that
year that were not more than 33.33 percent of the gross receipts of the employer for
the other 6 months of that year;
(xiv) the term “housing cooperative” means a cooperative housing corporation (as
defined in section 216(b) of the Internal Revenue Code of 1986 [26 USCS § 216(b)])
that employs not more than 300 employees;
(xv) the term “destination marketing organization” means a nonprofit entity that is—
(I) an organization described in section 501(c) of the Internal Revenue Code of
1986 [26 USCS § 501(c)] and exempt from tax under section 501(a) of such Code
[26 USCS § 501(a)]; or
(II) a State, or a political subdivision of a State (including any instrumentality of
such entities)—
(aa) engaged in marketing and promoting communities and facilities to
businesses and leisure travelers through a range of activities, including—
(AA) assisting with the location of meeting and convention sites;
(BB) providing travel information on area attractions, lodging
accommodations, and restaurants;
(CC) providing maps; and
(DD) organizing group tours of local historical, recreational, and cultural
attractions; or
(bb) that is engaged in, and derives the majority of the operating budget of the
entity from revenue attributable to, providing live events;
(xvi) the terms “exchange”, “issuer”, and “security” have the meanings given those
terms in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)); and
(xvii) the term “additional covered nonprofit entity”—
(I) means an organization described in any paragraph of section 501(c) of the
Internal Revenue Code of 1986 [26 USCS § 501(c)], other than paragraph (3), (4),
(6), or (19), and exempt from tax under section 501(a) of such Code [26 USCS §
501(a)]; and
(II) does not include any entity that, if the entity were a business concern, would
be described in section 120.110 of title 13, Code of Federal Regulations (or in any
successor regulation or other related guidance or rule that may be issued by the
Administrator) other than a business concern described in paragraph (a) or (k) of
such section.
(B) Paycheck protection loans. Except as otherwise provided in this paragraph, the
Administrator may guarantee covered loans under the same terms, conditions, and
processes as a loan made under this subsection.

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(C) Registration of loans. Not later than 15 days after the date on which a loan is made
under this paragraph, the Administration shall register the loan using the TIN (as defined in
section 7701 of the Internal Revenue Code of 1986 [26 USCS § 7701]) assigned to the
borrower.
(D) Increased eligibility for certain small businesses and organizations.
(i) In general. During the covered period, in addition to small business concerns, any
business concern, nonprofit organization, housing cooperative, veterans organization,
or Tribal business concern described in section 31(b)(2)(C) [15 USCS § 657a(b)(2)(C)]
shall be eligible to receive a covered loan if the business concern, nonprofit
organization, housing cooperative, veterans organization, or Tribal business concern
employs not more than the greater of—
(I) 500 employees; or
(II) if applicable, the size standard in number of employees established by the
Administration for the industry in which the business concern, nonprofit
organization, housing cooperative, veterans organization, or Tribal business
concern operates.
(ii) Inclusion of sole proprietors, independent contractors, and eligible self-employed
individuals.
(I) In general. During the covered period, individuals who operate under a sole
proprietorship or as an independent contractor and eligible self-employed
individuals shall be eligible to receive a covered loan.
(II) Documentation. An eligible self-employed individual, independent contractor,
or sole proprietorship seeking a covered loan shall submit such documentation as
determined necessary by the Administrator and the Secretary, to establish the
applicant as eligible.
(iii) Business concerns with more than 1 physical location.
(I) In general. During the covered period, any business concern that employs not
more than 500 employees per physical location of the business concern and that is
assigned a North American Industry Classification System code beginning with 72
at the time of disbursal shall be eligible to receive a covered loan.
(II) Eligibility of news organizations.
(aa) Definition. In this subclause, the term “included business concern” means
a business concern, including any station which broadcasts pursuant to a license
granted by the Federal Communications Commission under title III of the
Communications Act of 1934 (47 U.S.C. 301 et seq.) without regard for
whether such a station is a concern as defined in section 121.105 of title 13,
Code of Federal Regulations, or any successor thereto—
(AA) that employs not more than 500 employees, or the size standard
established by the Administrator for the North American Industry
Classification System code applicable to the business concern, per physical
location of such business concern; or

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(BB) any nonprofit organization or any organization otherwise subject to
section 511(a)(2)(B) of the Internal Revenue Code of 1986 [26 USCS §
511(a)(2)(B)] that is a public broadcasting entity (as defined in section
397(11) of the Communications Act of 1934 (47 U.S.C. 397(11))).
(bb) Eligibility. During the covered period, an included business concern shall
be eligible to receive a covered loan if—
(AA) the included business concern is majority owned or controlled by a
business concern that is assigned a North American Industry Classification
System code beginning with 511110 or 5151 or, with respect to a public
broadcasting entity (as defined in section 397(11) of the Communications
Act of 1934 (47 U.S.C. 397(11))), has a trade or business that falls under
such a code; and
(BB) the included business concern makes a good faith certification that
proceeds of the loan will be used to support expenses at the component of
the included business concern that produces or distributes locally focused or
emergency information.
(III) Eligibility of certain organizations. Subject to the provisions in this
subparagraph, during the covered period—
(aa) a nonprofit organization shall be eligible to receive a covered loan if the
nonprofit organization employs not more than 500 employees per physical
location of the organization; and
(bb) an additional covered nonprofit entity and an organization that, but for
subclauses (I)(dd) and (II)(dd) of clause (vii), would be eligible for a covered
loan under clause (vii) shall be eligible to receive a covered loan if the entity or
organization employs not more than 300 employees per physical location of the
entity or organization.
(IV) Eligibility of internet publishing organizations. A business concern or other
organization that was not eligible to receive a covered loan the day before the date
of enactment of this subclause [enacted March 11, 2021], is assigned a North
American Industry Classification System code of 519130, certifies in good faith as
an Internet-only news publisher or Internet-only periodical publisher, and is
engaged in the collection and distribution of local or regional and national news and
information shall be eligible to receive a covered loan for the continued provision
of news, information, content, or emergency information if—
(aa) the business concern or organization employs not more than 500
employees, or the size standard established by the Administrator for that North
American Industry Classification code, per physical location of the business
concern or organization; and
(bb) the business concern or organization makes a good faith certification that
proceeds of the loan will be used to support expenses at the component of the
business concern or organization that supports local or regional news.

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(iv) Waiver of affiliation rules. During the covered period, the provisions applicable to
affiliations under section 121.103 of title 13, Code of Federal Regulations, or any
successor regulation, are waived with respect to eligibility for a covered loan for—
(I) any business concern with not more than 500 employees that, as of the date on
which the covered loan is disbursed, is assigned a North American Industry
Classification System code beginning with 72;
(II) any business concern operating as a franchise that is assigned a franchise
identifier code by the Administration;
(III) any business concern that receives financial assistance from a company
licensed under section 301 of the Small Business Investment Act of 1958 (15
U.S.C. 681);
(IV)
(aa) any business concern (including any station which broadcasts pursuant to
a license granted by the Federal Communications Commission under title III of
the Communications Act of 1934 (47 U.S.C. 301 et seq.) without regard for
whether such a station is a concern as defined in section 121.105 of title 13,
Code of Federal Regulations, or any successor thereto) that employs not more
than 500 employees, or the size standard established by the Administrator for
the North American Industry Classification System code applicable to the
business concern, per physical location of such business concern and is majority
owned or controlled by a business concern that is assigned a North American
Industry Classification System code beginning with 511110 or 5151; or
(bb) any nonprofit organization that is assigned a North American Industry
Classification System code beginning with 5151; and
(V) any business concern or other organization that was not eligible to receive a
covered loan the day before the date of enactment of this subclause [enacted March
11, 2021], is assigned a North American Industry Classification System code of
519130, certifies in good faith as an Internet-only news publisher or Internet-only
periodical publisher, and is engaged in the collection and distribution of local or
regional and national news and information, if the business concern or
organization—
(aa) employs not more than 500 employees, or the size standard established by
the Administrator for that North American Industry Classification code, per
physical location of the business concern or organization; and
(bb) is majority owned or controlled by a business concern or organization that
is assigned a North American Industry Classification System code of 519130.
(v) Employee. For purposes of determining whether a business concern, nonprofit
organization, veterans organization, or Tribal business concern described in section
31(b)(2)(C) employs not more than 500 employees under clause (i)(I), or for purposes
of determining the number of employees of a housing cooperative or a business
concern or organization made eligible for a loan under this paragraph under subclause
(II), (III), or (IV) of clause (iii), subclause (IV) or (V) of clause (iv), clause (vii), or

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clause (ix), the term “employee” includes individuals employed on a full-time, parttime, or other basis.
(vi) Affiliation. The provisions applicable to affiliations under section 121.103 of title
13, Code of Federal Regulations, or any successor thereto, shall apply with respect to a
nonprofit organization, a business concern or organization made eligible for a loan
under this paragraph under clause (vii), a housing cooperative, and a veterans
organization in the same manner as with respect to a small business concern.
(vii) Eligibility for certain 501(c)(6) organizations.
(I) In general. Any organization that is described in section 501(c)(6) of the
Internal Revenue Code [26 USCS § 501(c)(6)] and that is exempt from taxation
under section 501(a) of such Code [26 USCS § 501(a)] (excluding professional
sports leagues and organizations with the purpose of promoting or participating in a
political campaign or other activity) shall be eligible to receive a covered loan if—
(aa) the organization does not receive more than 15 percent of its receipts from
lobbying activities;
(bb) the lobbying activities of the organization do not comprise more than 15
percent of the total activities of the organization;
(cc) the cost of the lobbying activities of the organization did not exceed
$1,000,000 during the most recent tax year of the organization that ended prior
to February 15, 2020; and
(dd) the organization employs not more than 300 employees.
(II) Destination marketing organizations. Any destination marketing organization
shall be eligible to receive a covered loan if—
(aa) the destination marketing organization does not receive more than 15
percent of its receipts from lobbying activities;
(bb) the lobbying activities of the destination marketing organization do not
comprise more than 15 percent of the total activities of the organization;
(cc) the cost of the lobbying activities of the destination marketing organization
did not exceed $1,000,000 during the most recent tax year of the destination
marketing organization that ended prior to February 15, 2020; and
(dd) the destination marketing organization employs not more than 300
employees; and
(ee) the destination marketing organization—
(AA) is described in section 501(c) of the Internal Revenue Code [26 USCS
§ 501(c)] and is exempt from taxation under section 501(a) of such Code
[26 USCS § 501(a)]; or
(BB) is a quasi-governmental entity or is a political subdivision of a State
or local government, including any instrumentality of those entities.
(viii) Ineligibility of publicly-traded entities.

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(I) In general. Subject to subclause (II), and notwithstanding any other provision of
this paragraph, on and after the date of enactment of the Economic Aid to Hard-Hit
Small Businesses, Nonprofits, and Venues Act [enacted Dec. 27, 2020], an entity
that is an issuer, the securities of which are listed on an exchange registered as a
national securities exchange under section 6 of the Securities Exchange Act of 1934
(15 U.S.C. 78f), shall be ineligible to receive a covered loan under this paragraph.
(II) Rule for affiliated entities. With respect to a business concern or organization
made eligible by subclause (II) or (IV) of clause (iii) or subclause (IV) or (V) of
clause (iv) of this subparagraph, the Administrator shall not consider whether any
affiliated entity, which for purposes of this subclause shall include any entity that
owns or controls such business concern or organization, is an issuer.
(ix) Eligibility of additional covered nonprofit entities. An additional covered
nonprofit entity shall be eligible to receive a covered loan if—
(I) the additional covered nonprofit entity does not receive more than 15 percent of
its receipts from lobbying activities;
(II) the lobbying activities of the additional covered nonprofit entity do not
comprise more than 15 percent of the total activities of the organization;
(III) the cost of the lobbying activities of the additional covered nonprofit entity
did not exceed $1,000,000 during the most recent tax year of the additional covered
nonprofit entity that ended prior to February 15, 2020; and
(IV) the additional covered nonprofit entity employs not more than 300 employees.
(E) Maximum loan amount. Except as provided in subparagraph (V), during the covered
period, with respect to a covered loan, the maximum loan amount shall be the lesser of—
(i)
(I) the sum of—
(aa) the product obtained by multiplying—
(AA) the average total monthly payments by the applicant for payroll costs
incurred during the 1-year period before the date on which the loan is made,
except that an applicant that is a seasonal employer shall use the average
total monthly payments for payroll for any 12-week period selected by the
seasonal employer between February 15, 2019, and February 15, 2020; by
(BB) 2.5; and
(bb) the outstanding amount of a loan under subsection (b)(2) that was made
during the period beginning on January 31, 2020 and ending on the date on
which covered loans are made available to be refinanced under the covered
loan; or
(II) if requested by an otherwise eligible recipient that was not in business during
the period beginning on February 15, 2019 and ending on June 30, 2019, the sum
of—
(aa) the product obtained by multiplying—

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(AA) the average total monthly payments by the applicant for payroll costs
incurred during the period beginning on January 1, 2020 and ending on
February 29, 2020; by
(BB) 2.5; and
(bb) the outstanding amount of a loan under subsection (b)(2) that was made
during the period beginning on January 31, 2020 and ending on the date on
which covered loans are made available to be refinanced under the covered
loan; or
(ii) $10,000,000.
(F) Allowable uses of covered loans.
(i) In general. During the covered period, an eligible recipient may, in addition to the
allowable uses of a loan made under this subsection, use the proceeds of the covered
loan for—
(I) payroll costs;
(II) costs related to the continuation of group health care benefits during periods of
paid sick, medical, or family leave, and insurance premiums;
(III) employee salaries, commissions, or similar compensations;
(IV) payments of interest on any mortgage obligation (which shall not include any
prepayment of or payment of principal on a mortgage obligation);
(V) rent (including rent under a lease agreement);
(VI) utilities;
(VII) interest on any other debt obligations that were incurred before the covered
period;
(VIII) covered operations expenditures, as defined in section 7A(a) [15 USCS §
636m(a)];
(IX) covered property damage costs, as defined in section 7A(a) [15 USCS §
636m(a)];
(X) covered supplier costs, as defined in section 7A(a) [15 USCS § 636m(a)]; and
(XI) covered worker protection expenditures, as defined in section 7A(a) [15
USCS § 636m(a)].
(ii) Delegated authority.
(I) In general. For purposes of making covered loans for the purposes described in
clause (i), a lender approved to make loans under this subsection shall be deemed to
have been delegated authority by the Administrator to make and approve covered
loans, subject to the provisions of this paragraph.
(II) Considerations. In evaluating the eligibility of a borrower for a covered loan
with the terms described in this paragraph, a lender shall consider whether the
borrower—

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(aa) was in operation on February 15, 2020; and
(bb)
(AA) had employees for whom the borrower paid salaries and payroll
taxes; or
(BB) paid independent contractors, as reported on a Form 1099-MISC.
(iii) Additional lenders. The authority to make loans under this paragraph shall be
extended to additional lenders determined by the Administrator and the Secretary of the
Treasury to have the necessary qualifications to process, close, disburse and service
loans made with the guarantee of the Administration.
(iv) Refinance. A loan made under subsection (b)(2) during the period beginning on
January 31, 2020 and ending on the date on which covered loans are made available
may be refinanced as part of a covered loan.
(v) Nonrecourse. Notwithstanding the waiver of the personal guarantee requirement or
collateral under subparagraph (J), the Administrator shall have no recourse against any
individual shareholder, member, or partner of an eligible recipient of a covered loan for
nonpayment of any covered loan, except to the extent that such shareholder, member,
or partner uses the covered loan proceeds for a purpose not authorized under clause (i)
or (iv).
(vi) Prohibition. None of the proceeds of a covered loan may be used for—
(I) lobbying activities, as defined in section 3 of the Lobbying Disclosure Act of
1995 (2 U.S.C. 1602);
(II) lobbying expenditures related to a State or local election; or
(III) expenditures designed to influence the enactment of legislation,
appropriations, regulation, administrative action, or Executive order proposed or
pending before Congress or any State government, State legislature, or local
legislature or legislative body.
(G) Borrower requirements.
(i) Certification. An eligible recipient applying for a covered loan shall make a good
faith certification—
(I) that the uncertainty of current economic conditions makes necessary the loan
request to support the ongoing operations of the eligible recipient;
(II) acknowledging that funds will be used to retain workers and maintain payroll
or make mortgage payments, lease payments, and utility payments;
(III) that the eligible recipient does not have an application pending for a loan
under this subsection for the same purpose and duplicative of amounts applied for
or received under a covered loan; and
(IV) during the period beginning on February 15, 2020 and ending on December
31, 2020, that the eligible recipient has not received amounts under this subsection

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for the same purpose and duplicative of amounts applied for or received under a
covered loan.
(H) Fee waiver. With respect to a covered loan—
(i) in lieu of the fee otherwise applicable under paragraph (23)(A), the Administrator
shall collect no fee; and
(ii) in lieu of the fee otherwise applicable under paragraph (18)(A), the Administrator
shall collect no fee.
(I) Credit elsewhere. During the covered period, the requirement that a small business
concern is unable to obtain credit elsewhere, as defined in section 3(h) [15 USCS § 632(h)],
shall not apply to a covered loan.
(J) Waiver of personal guarantee requirement. With respect to a covered loan—
(i) no personal guarantee shall be required for the covered loan; and
(ii) no collateral shall be required for the covered loan.
(K) Maturity for loans with remaining balance after application of forgiveness. With
respect to a covered loan that has a remaining balance after reduction based on the loan
forgiveness amount under section 7A [15 USCS § 636m]—
(i) the remaining balance shall continue to be guaranteed by the Administration under
this subsection; and
(ii) the covered loan shall have a minimum maturity of 5 years and a maximum
maturity of 10 years from the date on which the borrower applies for loan forgiveness
under that section.
(L) Interest rate requirements. A covered loan shall bear an interest rate not to exceed 4
percent, calculated on a non-compounding, non-adjustable basis.
(M) Loan deferment.
(i) Definition of impacted borrower.
(I) In general. In this subparagraph, the term “impacted borrower” means an
eligible recipient that—
(aa) is in operation on February 15, 2020; and
(bb) has an application for a covered loan that is approved or pending approval
on or after the date of enactment of this paragraph [enacted March 27, 2020].
(II) Presumption. For purposes of this subparagraph, an impacted borrower is
presumed to have been adversely impacted by COVID-19.
(ii) Deferral. The Administrator shall—
(I) consider each eligible recipient that applies for a covered loan to be an
impacted borrower; and
(II) require lenders under this subsection to provide complete payment deferment
relief for impacted borrowers with covered loans, including payment of principal,

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interest, and fees, until the date on which the amount of forgiveness determined
under section 7A [15 USCS § 636m] is remitted to the lender.
(iii) Secondary market. With respect to a covered loan that is sold on the secondary
market, if an investor declines to approve a deferral requested by a lender under clause
(ii), the Administrator shall exercise the authority to purchase the loan so that the
impacted borrower may receive a deferral, including payment of principal, interest, and
fees, until the date on which the amount of forgiveness determined under section 7A
[15 USCS § 636m] is remitted to the lender.
(iv) Guidance. Not later than 30 days after the date of enactment of this paragraph
[enacted March 27, 2020], the Administrator shall provide guidance to lenders under
this paragraph on the deferment process described in this subparagraph.
(v) Rule of construction. If an eligible recipient fails to apply for forgiveness of a
covered loan within 10 months after the last day of the covered period defined in
section 7A(a) [15 USCS § 636m(a)], such eligible recipient shall make payments of
principal, interest, and fees on such covered loan beginning on the day that is not
earlier than the date that is 10 months after the last day of such covered period.
(N) Secondary market sales. A covered loan shall be eligible to be sold in the secondary
market consistent with this subsection. The Administrator may not collect any fee for any
guarantee sold into the secondary market under this subparagraph.
(O) Regulatory capital requirements.
(i) Risk weight. With respect to the appropriate Federal banking agencies or the
National Credit Union Administration Board applying capital requirements under their
respective risk-based capital requirements, a covered loan shall receive a risk weight of
zero percent.
(ii) Temporary relief from tdr disclosures. Notwithstanding any other provision of law,
an insured depository institution or an insured credit union that modifies a covered loan
in relation to COVID-19-related difficulties in a troubled debt restructuring on or after
March 13, 2020, shall not be required to comply with the Financial Accounting
Standards Board Accounting Standards Codification Subtopic 310-40 (“Receivables Troubled Debt Restructurings by Creditors”) for purposes of compliance with the
requirements of the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.), until such
time and under such circumstances as the appropriate Federal banking agency or the
National Credit Union Administration Board, as applicable, determines appropriate.
(P) Reimbursement for processing.
(i) In general. The Administrator shall reimburse a lender authorized to make a
covered loan as follows:
(I) With respect to a covered loan made during the period beginning on the date of
enactment of this paragraph [enacted March 27, 2020] and ending on the day before
the date of enactment of the Economic Aid to Hard-Hit Small Businesses,
Nonprofits, and Venues Act [enacted Dec. 27, 2020], the Administrator shall
reimburse such a lender at a rate, based on the balance of the financing outstanding
at the time of disbursement of the covered loan, of—

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(aa) 5 percent for loans of not more than $350,000;
(bb) 3 percent for loans of more than $350,000 and less than $2,000,000; and
(cc) 1 percent for loans of not less than $2,000,000.
(II) With respect to a covered loan made on or after the date of enactment of the
Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act [enacted
Dec. 27, 2020], the Administrator shall reimburse such a lender—
(aa) for a covered loan of not more than $50,000, in an amount equal to the
lesser of—
(AA) 50 percent of the balance of the financing outstanding at the time of
disbursement of the covered loan; or
(BB) $2,500; and
(bb) at a rate, based on the balance of the financing outstanding at the time of
disbursement of the covered loan, of—
(AA) 5 percent for a covered loan of more than $50,000 and not more than
$350,000;
(BB) 3 percent for a covered loan of more than $350,000 and less than
$2,000,000; and
(CC) 1 percent for a covered loan of not less than $2,000,000.
(ii) Fee limits. An agent that assists an eligible recipient to prepare an application for a
covered loan may not collect a fee in excess of the limits established by the
Administrator. If an eligible recipient has knowingly retained an agent, such fees shall
be paid by the eligible recipient and may not be paid out of the proceeds of a covered
loan. A lender shall only be responsible for paying fees to an agent for services for
which the lender directly contracts with the agent.
(iii) Timing. A reimbursement described in clause (i) shall be made not later than 5
days after the reported disbursement of the covered loan and may not be required to be
repaid by a lender unless the lender is found guilty of an act of fraud in connection with
the covered loan.
(iv) Sense of the Senate. It is the sense of the Senate that the Administrator should
issue guidance to lenders and agents to ensure that the processing and disbursement of
covered loans prioritizes small business concerns and entities in underserved and rural
markets, including veterans and members of the military community, small business
concerns owned and controlled by socially and economically disadvantaged individuals
(as defined in section 8(d)(3)(C) [15 USCS § 637(d)(3)(C)]), women, and businesses in
operation for less than 2 years.
(Q) Duplication. Nothing in this paragraph shall prohibit a recipient of an economic injury
disaster loan made under subsection (b)(2) that is for a purpose other than paying payroll
costs and other obligations described in subparagraph (F) from receiving assistance under
this paragraph.

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(R) Waiver of prepayment penalty. Notwithstanding any other provision of law, there
shall be no prepayment penalty for any payment made on a covered loan.
(S) Set-aside for insured depository institutions, credit unions, and community financial
institutions.
(i) Insured depository institutions and credit unions. In making loan guarantees under
this paragraph after the date of enactment of this clause [enacted April 24, 2020], the
Administrator shall guarantee not less than $30,000,000,000 in loans made by—
(I) insured depository institutions with consolidated assets of not less than
$10,000,000,000 and less than $50,000,000,000; and
(II) credit unions with consolidated assets of not less than $10,000,000,000 and
less than $50,000,000,000.
(ii) Community financial institutions, small insured depository institutions, and credit
unions. In making loan guarantees under this paragraph after the date of enactment of
this clause [enacted April 24, 2020], the Administrator shall guarantee not less than
$30,000,000,000 in loans made by—
(I) community financial institutions;
(II) insured depository institutions with consolidated assets of less than
$10,000,000,000; and
(III) credit unions with consolidated assets of less than $10,000,000,000.
(T) Requirement for date in operation. A business or organization that was not in
operation on February 15, 2020 shall not be eligible for a loan under this paragraph.
(U) Exclusion of entities receiving shuttered venue operator grants. An eligible person or
entity (as defined under of section 24 of the Economic Aid to Hard-Hit Small Businesses,
Nonprofits, and Venues Act [15 USCS § 9009a]) that receives a grant under such section
24 [15 USCS § 9009a] shall not be eligible for a loan under this paragraph.
(V) Calculation of maximum loan amount for farmers and ranchers.
(i) Definition. In this subparagraph, the term “covered recipient” means an eligible
recipient that—
(I) operates as a sole proprietorship or as an independent contractor, or is an
eligible self-employed individual;
(II) reports farm income or expenses on a Schedule F (or any equivalent successor
schedule); and
(III) was in business as of February 15, 2020.
(ii) No employees. With respect to covered recipient without employees, the maximum
covered loan amount shall be the lesser of—
(I) the sum of—
(aa) the product obtained by multiplying—

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(AA) the gross income of the covered recipient in 2019, as reported on a
Schedule F (or any equivalent successor schedule), that is not more than
$100,000, divided by 12; and
(BB) 2.5; and
(bb) the outstanding amount of a loan under subsection (b)(2) that was made
during the period beginning on January 31, 2020 and ending on April 3, 2020
that the borrower intends to refinance under the covered loan, not including any
amount of any advance under the loan that is not required to be repaid; or
(II) $2,000,000.
(iii) With employees. With respect to a covered recipient with employees, the
maximum covered loan amount shall be calculated using the formula described in
subparagraph (E), except that the gross income of the covered recipient described in
clause (ii)(I)(aa)(AA) of this subparagraph, as divided by 12, shall be added to the sum
calculated under subparagraph (E)(i)(I).
(iv) Recalculation. A lender that made a covered loan to a covered recipient before the
date of enactment of this subparagraph [enacted Dec. 27, 2020] may, at the request of
the covered recipient—
(I) recalculate the maximum loan amount applicable to that covered loan based on
the formula described in clause (ii) or (iii), as applicable, if doing so would result in
a larger covered loan amount; and
(II) provide the covered recipient with additional covered loan amounts based on
that recalculation.
(W) Fraud enforcement harmonization. Notwithstanding any other provision of law, any
criminal charge or civil enforcement action alleging that a borrower engaged in fraud with
respect to a covered loan guaranteed under this paragraph shall be filed not later than 10
years after the offense was committed.
(37) Paycheck protection program second draw loans.
(A) Definitions. In this paragraph—
(i) the terms “additional covered nonprofit entity”, “eligible self-employed individual”,
“housing cooperative”, “nonprofit organization”, “payroll costs”, “seasonal employer”,
and “veterans organization” have the meanings given those terms in paragraph (36),
except that “eligible entity” shall be substituted for “eligible recipient” each place it
appears in the definitions of those terms;
(ii) the term “covered loan” means a loan made under this paragraph;
(iii) the terms “covered mortgage obligation”, “covered operating expenditure”,
“covered property damage cost”, “covered rent obligation”, “covered supplier cost”,
“covered utility payment”, and “covered worker protection expenditure” have the
meanings given those terms in section 7A(a) [15 USCS § 636m(a)];
(iv) the term “eligible entity”—

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(I) means any business concern, nonprofit organization, housing cooperative,
veterans organization, Tribal business concern, eligible self-employed individual,
sole proprietor, independent contractor, or small agricultural cooperative that—
(aa) employs not more than 300 employees; and
(bb)
(AA) except as provided in subitems (BB), (CC), and (DD), had gross
receipts during the first, second, third, or, only with respect to an application
submitted on or after January 1, 2021, fourth quarter in 2020 that
demonstrate not less than a 25 percent reduction from the gross receipts of
the entity during the same quarter in 2019;
(BB) if the entity was not in business during the first or second quarter of
2019, but was in business during the third and fourth quarter of 2019, had
gross receipts during the first, second, third, or, only with respect to an
application submitted on or after January 1, 2021, fourth quarter of 2020
that demonstrate not less than a 25 percent reduction from the gross receipts
of the entity during the third or fourth quarter of 2019;
(CC) if the entity was not in business during the first, second, or third
quarter of 2019, but was in business during the fourth quarter of 2019, had
gross receipts during the first, second, third, or, only with respect to an
application submitted on or after January 1, 2021, fourth quarter of 2020
that demonstrate not less than a 25 percent reduction from the gross receipts
of the entity during the fourth quarter of 2019; or
(DD) if the entity was not in business during 2019, but was in operation on
February 15, 2020, had gross receipts during the second, third, or, only with
respect to an application submitted on or after January 1, 2021, fourth
quarter of 2020 that demonstrate not less than a 25 percent reduction from
the gross receipts of the entity during the first quarter of 2020;
(II) includes a business concern or organization made eligible for a loan under
paragraph (36) under subclause (II), (III), or (IV) of clause (iii), subclause (IV) or
(V) of clause (iv), clause (vii), or clause (ix) of subparagraph (D) of paragraph (36)
and that meets the requirements described in items (aa) and (bb) of subclause (I);
and
(III) does not include—
(aa) any entity that is a type of business concern (or would be, if such entity
were a business concern) described in section 120.110 of title 13, Code of
Federal Regulations (or in any successor regulation or other related guidance or
rule that may be issued by the Administrator) other than a business concern
described in subsection (a) or (k) of such section; or
(bb) any business concern or entity primarily engaged in political or lobbying
activities, which shall include any entity that is organized for research or for
engaging in advocacy in areas such as public policy or political strategy or
otherwise describes itself as a think tank in any public documents;

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(cc) any business concern or entity—
(AA) for which an entity created in or organized under the laws of the
People’s Republic of China or the Special Administrative Region of Hong
Kong, or that has significant operations in the People’s Republic of China or
the Special Administrative Region of Hong Kong, owns or holds, directly or
indirectly, not less than 20 percent of the economic interest of the business
concern or entity, including as equity shares or a capital or profit interest in
a limited liability company or partnership; or
(BB) that retains, as a member of the board of directors of the business
concern, a person who is a resident of the People’s Republic of China;
(dd) any person required to submit a registration statement under section 2 of
the Foreign Agents Registration Act of 1938 (22 U.S.C. 612); or
(ee) an eligible person or entity (as defined under section 24 of the Economic
Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act [15 USCS §
9009a]) that receives a grant under such section 24 [15 USCS § 9009a]; and
(v) the term “Tribal business concern” means a Tribal business concern described in
section 31(b)(2)(C) [15 USCS § 657a(b)(2)(C)].
(B) Loans. Except as otherwise provided in this paragraph, the Administrator may
guarantee covered loans to eligible entities under the same terms, conditions, and processes
as a loan made under paragraph (36).
(C) Maximum loan amount.
(i) In general. Except as otherwise provided in this subparagraph, the maximum
amount of a covered loan made to an eligible entity is the lesser of—
(I) the product obtained by multiplying—
(aa) at the election of the eligible entity, the average total monthly payment for
payroll costs incurred or paid by the eligible entity during—
(AA) the 1-year period before the date on which the loan is made; or
(BB) calendar year 2019; by
(bb) 2.5; or
(II) $2,000,000.
(ii) Seasonal employers. The maximum amount of a covered loan made to an eligible
entity that is a seasonal employer is the lesser of—
(I) the product obtained by multiplying—
(aa) at the election of the eligible entity, the average total monthly payments
for payroll costs incurred or paid by the eligible entity for any 12-week period
between February 15, 2019 and February 15, 2020; by
(bb) 2.5; or
(II) $2,000,000.

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(iii) New entities. The maximum amount of a covered loan made to an eligible entity
that did not exist during the 1-year period preceding February 15, 2020 is the lesser
of—
(I) the product obtained by multiplying—
(aa) the quotient obtained by dividing—
(AA) the sum of the total monthly payments by the eligible entity for
payroll costs paid or incurred by the eligible entity as of the date on which
the eligible entity applies for the covered loan; by
(BB) the number of months in which those payroll costs were paid or
incurred; by
(bb) 2.5; or
(II) $2,000,000.
(iv) NAICS 72 entities. The maximum amount of a covered loan made to an eligible
entity that is assigned a North American Industry Classification System code beginning
with 72 at the time of disbursal is the lesser of—
(I) the product obtained by multiplying—
(aa) at the election of the eligible entity, the average total monthly payment for
payroll costs incurred or paid by the eligible entity during—
(AA) the 1-year period before the date on which the loan is made; or
(BB) calendar year 2019; by
(bb) 3.5; or
(II) $2,000,000.
(D) Business concerns with more than 1 physical location.
(i) In general. For a business concern with more than 1 physical location, the business
concern shall be an eligible entity if the business concern would be eligible for a loan
under paragraph (36) pursuant to clause (iii) of subparagraph (D) of such paragraph, as
applied in accordance with clause (ii) of this subparagraph, and meets the revenue
reduction requirements described in item (bb) of subparagraph (A)(iv)(I).
(ii) Size limit. For purposes of applying clause (i), the Administrator shall substitute
“not more than 300 employees” for “not more than 500 employees” in paragraph
(36)(D)(iii).
(E) Waiver of affiliation rules.
(i) In general. The waiver described in paragraph (36)(D)(iv) shall apply for purposes
of determining eligibility under this paragraph.
(ii) Size limit. For purposes of applying clause (i), the Administrator shall substitute
“not more than 300 employees” for “not more than 500 employees” in subclause (I)
and (IV) of paragraph (36)(D)(iv).
(F) Loan number limitation. An eligible entity may only receive 1 covered loan.

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(G) Exception from certain certification requirements. An eligible entity applying for a
covered loan shall not be required to make the certification described in clause (iii) or (iv)
of paragraph (36)(G).
(H) Fee waiver. With respect to a covered loan—
(i) in lieu of the fee otherwise applicable under paragraph (23)(A), the Administrator
shall collect no fee; and
(ii) in lieu of the fee otherwise applicable under paragraph (18)(A), the Administrator
shall collect no fee.
(I) Gross receipts and simplified certification of revenue test.
(i) Loans of up to $150,000. For a covered loan of not more than $150,000, the eligible
entity—
(I) may submit a certification attesting that the eligible entity meets the applicable
revenue loss requirement under subparagraph (A)(iv)(I)(bb); and
(II) if the eligible entity submits a certification under subclause (I), shall, on or
before the date on which the eligible entity submits an application for forgiveness
under subparagraph (J), produce adequate documentation that the eligible entity
met such revenue loss standard.
(ii) For nonprofit and veterans organizations. For purposes of calculating gross receipts
under subparagraph (A)(iv)(I)(bb) for an eligible entity that is a nonprofit organization,
a veterans organization, or an organization described in subparagraph (A)(iv)(II), gross
receipts means gross receipts within the meaning of section 6033 of the Internal
Revenue Code of 1986 [26 USCS § 6033].
(J) Loan forgiveness.
(i) Definition of covered period. In this subparagraph, the term “covered period” has
the meaning given that term in section 7A(a) [15 USCS § 636m(a)].
(ii) Forgiveness generally. Except as otherwise provided in this subparagraph, an
eligible entity shall be eligible for forgiveness of indebtedness on a covered loan in the
same manner as an eligible recipient with respect to a loan made under paragraph (36)
of this section, as described in section 7A [15 USCS § 636m].
(iii) Forgiveness amount. An eligible entity shall be eligible for forgiveness of
indebtedness on a covered loan in an amount equal to the sum of the following costs
incurred or expenditures made during the covered period:
(I) Payroll costs, excluding any payroll costs that are—
(aa) qualified wages, as defined in subsection (c)(3) of section 2301 of the
CARES Act (26 U.S.C. 3111 note), taken into account in determining the credit
allowed under such section;
(bb) qualified wages taken into account in determining the credit allowed
under subsection (a) or (d) of section 303 of the Taxpayer Certainty and
Disaster Relief Act of 2020 [unclassified]; or

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(cc) premiums taken into account in determining the credit allowed under
section 6432 of the Internal Revenue Code of 1986 [26 USCS § 6432].
(II) Any payment of interest on any covered mortgage obligation (which shall not
include any prepayment of or payment of principal on a covered mortgage
obligation).
(III) Any covered operations expenditure.
(IV) Any covered property damage cost.
(V) Any payment on any covered rent obligation.
(VI) Any covered utility payment.
(VII) Any covered supplier cost.
(VIII) Any covered worker protection expenditure.
(iv) Limitation on forgiveness for all eligible entities. Subject to any reductions under
section 7A(d) [15 USCS § 636m(d)], the forgiveness amount under this subparagraph
shall be equal to the lesser of—
(I) the amount described in clause (ii); and
(II) the amount equal to the quotient obtained by dividing—
(aa) the amount of the covered loan used for payroll costs during the covered
period; and
(bb) 0.60.
(v) Submission of materials for forgiveness. For purposes of applying subsection (l)(1)
of section 7A [15 USCS § 636m] to a covered loan of not more than $150,000 under
this paragraph, an eligible entity may be required to provide, at the time of the
application for forgiveness, documentation required to substantiate revenue loss in
accordance with subparagraph (I).
(K) Lender eligibility. Except as otherwise provided in this paragraph, a lender approved
to make loans under paragraph (36) may make covered loans under the same terms and
conditions as in paragraph (36).
(L) Reimbursement for loan processing and servicing. The Administrator shall reimburse
a lender authorized to make a covered loan—
(i) for a covered loan of not more than $50,000, in an amount equal to the lesser of—
(I) 50 percent of the balance of the financing outstanding at the time of
disbursement of the covered loan; or
(II) $2,500;
(ii) at a rate, based on the balance of the financing outstanding at the time of
disbursement of the covered loan, of—
(I) 5 percent for a covered loan of more than $50,000 and not more than $350,000;
and

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(II) 3 percent for a covered loan of more than $350,000.
(M) Publication of guidance. Not later than 10 days after the date of enactment of this
paragraph [enacted Dec. 27, 2020], the Administrator shall issue guidance addressing
barriers to accessing capital for minority, underserved, veteran, and women-owned
business concerns for the purpose of ensuring equitable access to covered loans.
(N) Standard operating procedure. The Administrator shall, to the maximum extent
practicable, allow a lender approved to make covered loans to use existing program
guidance and standard operating procedures for loans made under this subsection.
(O) Supplemental covered loans. A covered loan under this paragraph may only be made
to an eligible entity that—
(i) has received a loan under paragraph (36); and
(ii) on or before the expected date on which the covered loan under this paragraph is
disbursed to the eligible entity, has used, or will use, the full amount of the loan
received under paragraph (36).
(P) Fraud enforcement harmonization. Notwithstanding any other provision of law, any
criminal charge or civil enforcement action alleging that a borrower engaged in fraud with
respect to a covered loan guaranteed under this paragraph shall be filed not later than 10
years after the offense was committed.
(b) Disaster loans; authorization, scope, terms and conditions, etc. Except as to agricultural
enterprises as defined in section 18(b)(1) of this Act [15 USCS § 647(b)(1)], the Administration
also is empowered to the extent and in such amounts as provided in advance in appropriation
Acts—
(1)
(A) to make such loans (either directly or in cooperation with banks or other lending
institutions through agreements to participate on an immediate or deferred (guaranteed)
basis) as the Administration may determine to be necessary or appropriate to repair,
rehabilitate or replace property, real or personal, damaged or destroyed by or as a result of
natural or other disasters: Provided, That such damage or destruction is not compensated
for by insurance or otherwise: And provided further, That the Administration may increase
the amount of the loan by up to an additional 20 per centum of the aggregate costs of such
damage or destruction (whether or not compensated for by insurance or otherwise) if it
determines such increase to be necessary or appropriate in order to protect the damaged or
destroyed property from possible future disasters by taking mitigating measures,
including—
(i) construction of retaining walls and sea walls;
(ii) grading and contouring land; and
(iii) relocating utilities and modifying structures, including construction of a safe room
or similar storm shelter designed to protect property and occupants from tornadoes or
other natural disasters, if such safe room or similar storm shelter is constructed in
accordance with applicable standards issued by the Federal Emergency Management
Agency;

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(B) to refinance any mortgage or other lien against a totally destroyed or substantially
damaged home or business concern: Provided, That no loan or guarantee shall be extended
unless the Administration finds that (i) the applicant is not able to obtain credit elsewhere;
(ii) such property is to be repaired, rehabilitated, or replaced; (iii) the amount refinanced
shall not exceed the amount of physical loss sustained; and (iv) such amount shall be
reduced to the extent such mortgage or lien is satisfied by insurance or otherwise; and
(C) during fiscal years 2000 through 2004, to establish a predisaster mitigation program to
make such loans (either directly or in cooperation with banks or other lending institutions
through agreements to participate on an immediate or deferred (guaranteed) basis), as the
Administrator may determine to be necessary or appropriate, to enable small businesses to
use mitigation techniques in support of a formal mitigation program established by the
Federal Emergency Management Agency, except that no loan or guarantee may be
extended to a small business under this subparagraph unless the Administration finds that
the small business is otherwise unable to obtain credit for the purposes described in this
subparagraph;
(2) to make such loans (either directly or in cooperation with banks or other lending
institutions through agreements to participate on an immediate or deferred (guaranteed) basis)
as the Administration may determine to be necessary or appropriate to any small business
concern, private nonprofit organization, or small agricultural cooperative located in an area
affected by a disaster[,] (including drought), with respect to both farm-related and nonfarmrelated small business concerns, if the Administration determines that the concern, the
organization, or the cooperative has suffered a substantial economic injury as a result of such
disaster and if such disaster constitutes—
(A) a major disaster, as determined by the President under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.);
(B) a natural disaster, as determined by the Secretary of Agriculture pursuant to section
321 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961), in which case,
assistance under this paragraph may be provided to farm-related and nonfarm-related small
business concerns, subject to the other applicable requirements of this paragraph;
(C) a disaster, as determined by the Administrator of the Small Business Administration;
(D) an emergency involving Federal primary responsibility determined to exist by the
President under the section 501(b) of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5191(b)); or
(E) if no disaster or emergency declaration has been issued pursuant to subparagraph (A),
(B), (C), or D, the Governor of a State in which a disaster or emergency has occurred may
certify to the Small Business Administration that small business concerns, private nonprofit
organizations, or small agricultural cooperatives (1) have suffered economic injury as a
result of such disaster or emergency, and (2) are in need of financial assistance which is not
available on reasonable terms in the disaster- or emergency-stricken area. Not later than 30
days after the date of receipt of such certification by a Governor of a State, the
Administration shall respond in writing to that Governor on its determination and the
reasons therefore [therefor], and may then make such loans as would have been available
under this paragraph if a disaster or emergency declaration had been issued.

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Provided, That no loan or guarantee shall be extended pursuant to this paragraph (2) unless the
Administration finds that the applicant is not able to obtain credit elsewhere: Provided further,
That for purposes of subparagraph (D), the Administrator shall deem that such an emergency
affects each State or subdivision thereof (including counties), and that each State or
subdivision has sufficient economic damage to small business concerns to qualify for
assistance under this paragraph and the Administrator shall accept applications for such
assistance immediately.
(3)
(A) In this paragraph—
(i) the term “active service” has the meaning given that term in section 101(d)(3) of
title 10, United States Code;
(ii) the term “essential employee” means an individual who is employed by a small
business concern and whose managerial or technical expertise is critical to the
successful day-to-day operations of that small business concern; and
(iii) the term “substantial economic injury” means an economic harm to a business
concern that results in the inability of the business concern—
(I) to meet its obligations as they mature;
(II) to pay its ordinary and necessary operating expenses; or
(III) to market, produce, or provide a product or service ordinarily marketed,
produced, or provided by the business concern.
(B) The Administration may make such disaster loans (either directly or in cooperation
with banks or other lending institutions through agreements to participate on an immediate
or deferred basis) to assist a small business concern that has suffered or that is likely to
suffer substantial economic injury as the result of an essential employee of such small
business concern being ordered to perform active service for a period of more than 30
consecutive days.
(C) A small business concern described in subparagraph (B) shall be eligible to apply for
assistance under this paragraph during the period beginning on the date on which the
essential employee is ordered to active service and ending on the date that is 1 year after
the date on which such essential employee is discharged or released from active service.
The Administrator may, when appropriate (as determined by the Administrator), extend the
ending date specified in the preceding sentence by not more than 1 year.
(D) Any loan or guarantee extended pursuant to this paragraph shall be made at the same
interest rate as economic injury loans under paragraph (2).
(E) No loan may be made under this paragraph, either directly or in cooperation with
banks or other lending institutions through agreements to participate on an immediate or
deferred basis, if the total amount outstanding and committed to the borrower under this
subsection would exceed $1,500,000, unless such applicant constitutes, or have [has]
become due to changed economic circumstances, a major source of employment in its
surrounding area, as determined by the Administration, in which case the Administration,
in its discretion, may waive the $1,500,000 limitation.

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(F) For purposes of assistance under this paragraph, no declaration of a disaster area shall
be required.
(G)
(i) Notwithstanding any other provision of law, the Administrator may make a loan
under this paragraph of not more than $50,000 without collateral.
(ii) The Administrator may defer payment of principal and interest on a loan described
in clause (i) during the longer of—
(I) the 1-year period beginning on the date of the initial disbursement of the loan;
and
(II) the period during which the relevant essential employee is on active service.
(H) The Administrator shall give priority to any application for a loan under this
paragraph and shall process and make a determination regarding such applications prior to
processing or making a determination on other loan applications under this subsection, on a
rolling basis.
(4) Coordination with FEMA.
(A) In general. Notwithstanding any other provision of law, for any disaster declared
under this subsection or major disaster (including any major disaster relating to which the
Administrator declares eligibility for additional disaster assistance under paragraph (9)),
the Administrator, in consultation with the Administrator of the Federal Emergency
Management Agency, shall ensure, to the maximum extent practicable, that all application
periods for disaster relief under this Act correspond with application deadlines established
under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C.
5121 et seq.), or as extended by the President.
(B) Deadlines. Notwithstanding any other provision of law, not later than 10 days before
the closing date of an application period for a major disaster (including any major disaster
relating to which the Administrator declares eligibility for additional disaster assistance
under paragraph (9)), the Administrator, in consultation with the Administrator of the
Federal Emergency Management Agency, shall submit to the Committee on Small
Business and Entrepreneurship of the Senate and the Committee on Small Business of the
House of Representatives a report that includes—
(i) the deadline for submitting applications for assistance under this Act relating to that
major disaster;
(ii) information regarding the number of loan applications and disbursements
processed by the Administrator relating to that major disaster for each day during the
period beginning on the date on which that major disaster was declared and ending on
the date of that report; and
(iii) an estimate of the number of potential applicants that have not submitted an
application relating to that major disaster.
(5) Public awareness of disasters. If a disaster is declared under this subsection or the
Administrator declares eligibility for additional disaster assistance under paragraph (9), the

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Administrator shall make every effort to communicate through radio, television, print, and
web-based outlets, all relevant information needed by disaster loan applicants, including—
(A) the date of such declaration;
(B) cities and towns within the area of such declaration;
(C) loan application deadlines related to such disaster;
(D) all relevant contact information for victim services available through the
Administration (including links to small business development center websites);
(E) links to relevant Federal and State disaster assistance websites, including links to
websites providing information regarding assistance available from the Federal Emergency
Management Agency;
(F) information on eligibility criteria for Administration loan programs, including where
such applications can be found; and
(G) application materials that clearly state the function of the Administration as the
Federal source of disaster loans for homeowners and renters.
(6) Authority for qualified private contractors.
(A) Disaster loan processing. The Administrator may enter into an agreement with a
qualified private contractor, as determined by the Administrator, to process loans under this
subsection in the event of a major disaster (including any major disaster relating to which
the Administrator declares eligibility for additional disaster assistance under paragraph
(9)), under which the Administrator shall pay the contractor a fee for each loan processed.
(B) Loan loss verification services. The Administrator may enter into an agreement with a
qualified lender or loss verification professional, as determined by the Administrator, to
verify losses for loans under this subsection in the event of a major disaster (including any
major disaster relating to which the Administrator declares eligibility for additional disaster
assistance under paragraph (9)), under which the Administrator shall pay the lender or
verification professional a fee for each loan for which such lender or verification
professional verifies losses.
(7) Disaster assistance employees.
(A) In general. In carrying out this section, the Administrator may, where practicable,
ensure that the number of full-time equivalent employees—
(i) in the Office of the Disaster Assistance is not fewer than 800; and
(ii) in the Disaster Cadre of the Administration is not fewer than 1,000.
(B) Report. In carrying out this subsection, if the number of full-time employees for either
the Office of Disaster Assistance or the Disaster Cadre of the Administration is below the
level described in subparagraph (A) for that office, not later than 21 days after the date on
which that staffing level decreased below the level described in subparagraph (A), the
Administrator shall submit to the Committee on Appropriations and the Committee on
Small Business and Entrepreneurship of the Senate and the Committee on Appropriations
and Committee on Small Business of the House of Representatives, a report—

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(i) detailing staffing levels on that date;
(ii) requesting, if practicable and determined appropriate by the Administrator,
additional funds for additional employees; and
(iii) containing such additional information, as determined appropriate by the
Administrator.
(8) Increased loan caps.
(A) Aggregate loan amounts. Except as provided in subparagraph (B), and
notwithstanding any other provision of law, the aggregate loan amount outstanding and
committed to a borrower under this subsection may not exceed $2,000,000.
(B) Waiver authority. The Administrator may, at the discretion of the Administrator,
increase the aggregate loan amount under subparagraph (A) for loans relating to a disaster
to a level established by the Administrator, based on appropriate economic indicators for
the region in which that disaster occurred.
(9) Declaration of eligibility for additional disaster assistance.
(A) In general. If the President declares a major disaster, the Administrator may declare
eligibility for additional disaster assistance in accordance with this paragraph.
(B) Threshold. A major disaster for which the Administrator declares eligibility for
additional disaster assistance under this paragraph shall—
(i) have resulted in extraordinary levels of casualties or damage or disruption severely
affecting the population (including mass evacuations), infrastructure, environment,
economy, national morale, or government functions in an area;
(ii) be comparable to the description of a catastrophic incident in the National
Response Plan of the Administration, or any successor thereto, unless there is no
successor to such plan, in which case this clause shall have no force or effect; and
(iii) be of such size and scope that—
(I) the disaster assistance programs under the other paragraphs under this
subsection are incapable of providing adequate and timely assistance to individuals
or business concerns located within the disaster area; or
(II) a significant number of business concerns outside the disaster area have
suffered disaster-related substantial economic injury as a result of the incident.
(C) Additional economic injury disaster loan assistance.
(i) In general. If the Administrator declares eligibility for additional disaster assistance
under this paragraph, the Administrator may make such loans under this subparagraph
(either directly or in cooperation with banks or other lending institutions through
agreements to participate on an immediate or deferred basis) as the Administrator
determines appropriate to eligible small business concerns located anywhere in the
United States.
(ii) Processing time.

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(I) In general. If the Administrator determines that the average processing time for
applications for disaster loans under this subparagraph relating to a specific major
disaster is more than 15 days, the Administrator shall give priority to the processing
of such applications submitted by eligible small business concerns located inside
the disaster area, until the Administrator determines that the average processing
time for such applications is not more than 15 days.
(II) Suspension of applications from outside disaster area. If the Administrator
determines that the average processing time for applications for disaster loans under
this subparagraph relating to a specific major disaster is more than 30 days, the
Administrator shall suspend the processing of such applications submitted by
eligible small business concerns located outside the disaster area, until the
Administrator determines that the average processing time for such applications is
not more than 15 days.
(iii) Loan terms. A loan under this subparagraph shall be made on the same terms as a
loan under paragraph (2).
(D) Definitions. In this paragraph—
(i) the term “disaster area” means the area for which the applicable major disaster was
declared;
(ii) the term “disaster-related substantial economic injury” means economic harm to a
business concern that results in the inability of the business concern to—
(I) meet its obligations as it matures;
(II) meet its ordinary and necessary operating expenses; or
(III) market, produce, or provide a product or service ordinarily marketed,
produced, or provided by the business concern because the business concern relies
on materials from the disaster area or sells or markets in the disaster area; and
(iii) the term “eligible small business concern” means a small business concern—
(I) that has suffered disaster-related substantial economic injury as a result of the
applicable major disaster; and
(II) (aa) for which not less than 25 percent of the market share of that small
business concern is from business transacted in the disaster area;
(bb) for which not less than 25 percent of an input into a production process of
that small business concern is from the disaster area; or
(cc) that relies on a provider located in the disaster area for a service that is not
readily available elsewhere.
(10) Reducing closing and disbursement delays. The Administrator shall provide a clear and
concise notification on all application materials for loans made under this subsection and on
relevant websites notifying an applicant that the applicant may submit all documentation
necessary for the approval of the loan at the time of application and that failure to submit all
documentation could delay the approval and disbursement of the loan.

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(11) Increasing transparency in loan approvals. The Administrator shall establish and
implement clear, written policies and procedures for analyzing the ability of a loan applicant to
repay a loan made under this subsection.
(12) Additional awards to small business development centers, women’s business centers, and
score for disaster recovery.
(A) In general. The Administration may provide financial assistance to a small business
development center, a women’s business center described in section 29 [15 USCS § 656],
the Service Corps of Retired Executives, or any proposed consortium of such individuals or
entities to spur disaster recovery and growth of small business concerns located in an area
for which the President has declared a major disaster.
(B) Form of financial assistance. Financial assistance provided under this paragraph shall
be in the form of a grant, contract, or cooperative agreement.
(C) No matching funds required. Matching funds shall not be required for any grant,
contract, or cooperative agreement under this paragraph.
(D) Requirements. A recipient of financial assistance under this paragraph shall provide
counseling, training, and other related services, such as promoting long-term resiliency, to
small business concerns and entrepreneurs impacted by a major disaster.
(E) Performance.
(i) In general. The Administrator, in cooperation with the recipients of financial
assistance under this paragraph, shall establish metrics and goals for performance of
grants, contracts, and cooperative agreements under this paragraph, which shall include
recovery of sales, recovery of employment, reestablishment of business premises, and
establishment of new small business concerns.
(ii) Use of estimates. The Administrator shall base the goals and metrics for
performance established under clause (i), in part, on the estimates of disaster impact
prepared by the Office of Disaster Assistance for purposes of estimating loan-making
requirements.
(F) Term.
(i) In general. The term of any grant, contract, or cooperative agreement under this
paragraph shall be for not more than 2 years.
(ii) Extension. The Administrator may make 1 extension of a grant, contract, or
cooperative agreement under this paragraph for a period of not more than 1 year, upon
a showing of good cause and need for the extension.
(G) Exemption from other program requirements. Financial assistance provided under this
paragraph is in addition to, and wholly separate from, any other form of assistance
provided by the Administrator under this Act.
(H) Competitive basis. The Administration shall award financial assistance under this
paragraph on a competitive basis.
(13) Supplemental assistance for contractor malfeasance.

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(A) In general. If a contractor or other person engages in malfeasance in connection with
repairs to, rehabilitation of, or replacement of real or personal property relating to which a
loan was made under this subsection and the malfeasance results in substantial economic
damage to the recipient of the loan or substantial risks to health or safety, upon receiving
documentation of the substantial economic damage or the substantial risk to health and
safety from an independent loss verifier, and subject to subparagraph (B), the
Administrator may increase the amount of the loan under this subsection, as necessary for
the cost of repairs, rehabilitation, or replacement needed to address the cause of the
economic damage or health or safety risk.
(B) Requirements. The Administrator may only increase the amount of a loan under
subparagraph (A) upon receiving an appropriate certification from the borrower and person
performing the mitigation attesting to the reasonableness of the mitigation costs and an
assignment of any proceeds received from the person engaging in the malfeasance. The
assignment of proceeds recovered from the person engaging in the malfeasance shall be
equal to the amount of the loan under this section. Any mitigation activities shall be subject
to audit and independent verification of completeness and cost reasonableness.
(14) Business recovery centers.
(A) In general. The Administrator, acting through the district offices of the
Administration, shall identify locations that may be used as recovery centers by the
Administration in the event of a disaster declared under this subsection or a major disaster.
(B) Requirements for identification. Each district office of the Administration shall—
(i) identify a location described in subparagraph (A) in each county, parish, or similar
unit of general local government in the area served by the district office; and
(ii) ensure that the locations identified under subparagraph (A) may be used as a
recovery center without cost to the Government, to the extent practicable.
(15) Increased oversight of economic injury disaster loans. The Administrator shall increase
oversight of entities receiving loans under paragraph (2), and may consider—
(A) scheduled site visits to ensure borrower eligibility and compliance with requirements
established by the Administrator; and
(B) reviews of the use of the loan proceeds by an entity described in paragraph (2) to
ensure compliance with requirements established by the Administrator.
(16) Statute of limitations. Notwithstanding any other provision of law, any criminal charge or
civil enforcement action alleging that a borrower engaged in fraud with respect to a loan made
under this subsection in response to COVID-19 during the covered period (as defined in
section 1110(a) of the CARES Act [15 USCS § 9009(a)]) shall be filed not later than 10 years
after the offense was committed.
No loan under this subsection, including renewals and extensions thereof, may be made for a
period or periods exceeding thirty years: Provided, That the Administrator may consent to a
suspension in the payment of principal and interest charges on, and to an extension in the maturity
of, the Federal share of any loan under this subsection for a period of not to exceed five years, if
(A) the borrower under such loan is a homeowner or a small-business concern, (B) the loan was

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made to enable (i) such homeowner to repair or replace his home, or (ii) such concern to repair or
replace plant or equipment which was damaged or destroyed as the result of a disaster meeting the
requirements of clause (A) or (B) of paragraph (2) of this subsection, and (C) the Administrator
determines such action is necessary to avoid severe financial hardship: Provided further, That the
provisions of paragraph (1) of subsection (d) of this section shall not be applicable to any such
loan having a maturity in excess of twenty years. Notwithstanding any other provision of law, and
except as provided in subsection (d), the interest rate on the Administration’s share of any loan
made under subsection (b), shall not exceed the average annual interest rate on all interest-bearing
obligations of the United States then forming a part of the public debt as computed at the end of
the fiscal year next preceding the date of the loan and adjusted to the nearest one-eighth of 1 per
centum plus one-quarter of 1 per centum: Provided, however, That the interest rate for loans made
under paragraphs (1) and (2) hereof shall not exceed the rate of interest which is in effect at the
time of the occurrence of the disaster. In agreements to participate in loans on a deferred basis
under this subsection, such participation by the Administration shall not be in excess of 90 per
centum of the balance of the loan outstanding at the time of disbursement. Notwithstanding any
other provision of law, the interest rate on the Administration’s share of any loan made pursuant to
paragraph (1) of this subsection to repair or replace a primary residence and/or replace or repair
damaged or destroyed personal property, less the amount of compensation by insurance or
otherwise, with respect to a disaster occurring on or after July 1, 1976, and prior to October 1,
1978, shall be: 1 per centum on the amount of such loan not exceeding $10,000, and 3 per centum
on the amount of such loan over $10,000 but not exceeding $40,000. The interest rate on the
Administration’s share of the first $250,000 of all other loans made pursuant to paragraph (1) of
this subsection, with respect to a disaster occurring on or after July 1, 1976, and prior to October 1,
1978, shall be 3 per centum. All repayments of principal on the Administration’s share of any loan
made under the above provisions shall first be applied to reduce the principal sum of such loan
which bears interest at the lower rates provided in this paragraph. The principal amount of any
loan made pursuant to paragraph (1) in connection with a disaster which occurs on or after April 1,
1977, but prior to January 1, 1978, may be increased by such amount, but not more than $2,000, as
the Administration determines to be reasonable in light of the amount and nature of loss, damage,
or injury sustained in order to finance the installation of insulation in the property which was lost,
damaged, or injured, if the uninsured, damaged portion of the property is 10 per centum or more of
the market value of the property at the time of the disaster. Not later than June 1, 1978, the
Administration shall prepare and transmit to the Select Committee on Small Business [Committee
on Small Business and Entrepreneurship] of the Senate, the Committee on Small Business of the
House of Representatives, and the Committees of the Senate and House of Representatives having
jurisdiction over measures relating to energy conservation, a report on its activities under this
paragraph, including therein an evaluation of the effect of such activities on encouraging the
installation of insulation in property which is repaired or replaced after a disaster which is subject
to this paragraph, and its recommendations with respect to the continuation, modification, or
termination of such activities.
In the administration of the disaster loan program under paragraphs (1) and (2) of this subsection,
in the case of property loss or damage or injury resulting from a major disaster as determined by
the President or a disaster as determined by the Administrator which occurs on or after January 1,
1971, and prior to July 1, 1973, the Small Business Administration, to the extent such loss or
damage or injury is not compensated for by insurance or otherwise—

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(A) may make any loan for repair, rehabilitation, or replacement of property damaged or
destroyed without regard to whether the required financial assistance is otherwise available
from private sources;
(B) may, in the case of the total destruction or substantial property damage of a home or
business concern, refinance any mortgage or other liens outstanding against the destroyed or
damaged property if such property is to be repaired, rehabilitated, or replaced, except that (1)
in the case of a business concern, the amount refinanced shall not exceed the amount of the
physical loss sustained, and (2) in the case of a home, the amount of each monthly payment of
principal and interest on the loan after refinancing under this clause shall be not less than the
amount of each such payment made prior to such refinancing;
(C) may, in the case of a loan made under clause (A) or a mortgage or other lien refinanced
under clause (B) in connection with the destruction of, or substantial damage to, property
owned and used as a resident by an individual who by reason of retirement, disability, or other
similar circumstances relies for support on survivor, disability, or retirement benefits under a
pension, insurance, or other program, consent to the suspension of the payments of the
principal of that loan, mortgage, or lien during the lifetime of that individual and his spouse for
so long as the Administration determines that making such payments would constitute a
substantial hardship;
(D) shall, notwithstanding the provisions of any other law and upon presentation by the
applicant of proof of loss or damage or injury and a bona fide estimate of cost of repair,
rehabilitation, or replacement, cancel the principal of any loan made to cover a loss or damage
or injury resulting from such disaster, except that—
(i) with respect to a loan made in connection with a disaster occurring on or after January
1, 1971 but prior to January 1, 1972, the total amount so canceled shall not exceed $2,500,
and the interest on the balance of the loan shall be at a rate of 3 per centum per annum; and
(ii) with respect to a loan made in connection with a disaster occurring on or after January
1, 1972 but prior to July 1, 1973, the total amount so canceled shall not exceed $5,000, and
the interest on the balance of the loan shall be at a rate of 1 per centum per annum.
(E) A State grant made on or prior to July 1, 1979, shall not be considered compensation for
the purpose of applying the provisions of section 312(a) of the Disaster Relief and Emergency
Assistance Act [42 USCS § 5155(a)] to a disaster loan under paragraph (1) [or] (2) of this
subsection.
With respect to any loan referred to in clause (D) which is outstanding on the date of enactment of
this paragraph [enacted Aug. 16, 1972], the Administrator shall—
(i) make such change in the interest rate on the balance of such loan as is required under that
clause effective as of such date of enactment; and
(ii) in applying the limitation set forth in that clause with respect to the total amount of such
loan which may be canceled, considered as part of the amount so canceled any part of such
loan which was previously canceled pursuant to section 231 of the Disaster Relief Act of 1970
[15 USCS § 636a].

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Whoever wrongfully misapplies the proceeds of a loan obtained under this subsection shall be
civilly liable to the Administrator in an amount equal to one-and-one-half times the original
principal amount of the loan.
(c) Private disaster loans.
(1) Definitions. In this subsection—
(A) the term “disaster area” means any area for which the President declared a major
disaster relating to which the Administrator declares eligibility for additional disaster
assistance under subsection (b)(9), during the period of that major disaster declaration;
(B) the term “eligible individual” means an individual who is eligible for disaster
assistance under subsection (b)(1) relating to a major disaster relating to which the
Administrator declares eligibility for additional disaster assistance under subsection (b)(9);
(C) the term “eligible small business concern” means a business concern that is—
(i) a small business concern, as defined under this Act; or
(ii) a small business concern, as defined in section 103 of the Small Business
Investment Act of 1958 [15 USCS § 662];
(D) the term “preferred lender” means a lender participating in the Preferred Lender
Program;
(E) the term “Preferred Lender Program” has the meaning given that term in subsection
(a)(2)(C)(ii); and
(F) the term “qualified private lender” means any privately-owned bank or other lending
institution that—
(i) is not a preferred lender; and
(ii) the Administrator determines meets the criteria established under paragraph (10).
(2) Program required. The Administrator shall carry out a program, to be known as the Private
Disaster Assistance program, under which the Administration may guarantee timely payment
of principal and interest, as scheduled, on any loan made to an eligible small business concern
located in a disaster area and to an eligible individual.
(3) Use of loans. A loan guaranteed by the Administrator under this subsection may be used
for any purpose authorized under subsection (b).
(4) Online applications.
(A) Establishment. The Administrator may establish, directly or through an agreement
with another entity, an online application process for loans guaranteed under this
subsection.
(B) Other Federal assistance. The Administrator may coordinate with the head of any
other appropriate Federal agency so that any application submitted through an online
application process established under this paragraph may be considered for any other
Federal assistance program for disaster relief.

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(C) Consultation. In establishing an online application process under this paragraph, the
Administrator shall consult with appropriate persons from the public and private sectors,
including private lenders.
(5) Maximum amounts.
(A) Guarantee percentage. The Administrator may guarantee not more than 85 percent of a
loan under this subsection.
(B) Loan amount. The maximum amount of a loan guaranteed under this subsection shall
be $2,000,000.
(6) Terms and conditions. A loan guaranteed under this subsection shall be made under the
same terms and conditions as a loan under subsection (b).
(7) Lenders.
(A) In general. A loan guaranteed under this subsection made to—
(i) a qualified individual may be made by a preferred lender; and
(ii) a qualified small business concern may be made by a qualified private lender or by
a preferred lender that also makes loans to qualified individuals.
(B) Compliance. If the Administrator determines that a preferred lender knowingly failed
to comply with the underwriting standards for loans guaranteed under this subsection or
violated the terms of the standard operating procedure agreement between that preferred
lender and the Administration, the Administrator shall do 1 or more of the following:
(i) Exclude the preferred lender from participating in the program under this
subsection.
(ii) Exclude the preferred lender from participating in the Preferred Lender Program
for a period of not more than 5 years.
(8) Fees.
(A) In general. The Administrator may not collect a guarantee fee under this subsection.
(B) Origination fee. The Administrator may pay a qualified private lender or preferred
lender an origination fee for a loan guaranteed under this subsection in an amount agreed
upon in advance between the qualified private lender or preferred lender and the
Administrator.
(9) Documentation. A qualified private lender or preferred lender may use its own loan
documentation for a loan guaranteed by the Administrator under this subsection, to the extent
authorized by the Administrator. The ability of a lender to use its own loan documentation for
a loan guaranteed under this subsection shall not be considered part of the criteria for
becoming a qualified private lender under the regulations promulgated under paragraph (10).
(10) Implementation regulations.
(A) In general. Not later than 1 year after the date of enactment of the Small Business
Disaster Response and Loan Improvements Act of 2008 [enacted June 18, 2008], the
Administrator shall issue final regulations establishing permanent criteria for qualified
private lenders.

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(B) Report to Congress. Not later than 6 months after the date of enactment of the Small
Business Disaster Response and Loan Improvements Act of 2008 [enacted June 18, 2008],
the Administrator shall submit a report on the progress of the regulations required by
subparagraph (A) to the Committee on Small Business and Entrepreneurship of the Senate
and the Committee on Small Business of the House of Representatives.
(11) Authorization of appropriations.
(A) In general. Amounts necessary to carry out this subsection shall be made available
from amounts appropriated to the Administration to carry out subsection (b).
(B) Authority to reduce interest rates and other terms and conditions. Funds appropriated
to the Administration to carry out this subsection[,] may be used by the Administrator to
meet the loan terms and conditions specified in paragraph (6).
(12) Purchase of loans. The Administrator may enter into an agreement with a qualified
private lender or preferred lender to purchase any loan guaranteed under this subsection.
(d) Extension or renewal of loans; purchase of participations; assumption of obligations;
disaster loans; interest rates; loan amounts.
(1) The Administration may further extend the maturity of or renew any loan made pursuant to
this section, or any loan transferred to the Administration pursuant to Reorganization Plan
Numbered 2 of 1954 [5 USCS § 903 note], or Reorganization Plan Numbered 1 of 1957 [5
USCS § 903 note], for additional periods not to exceed ten years beyond the period stated
therein, if such extension or renewal will aid in the orderly liquidation of such loan.
(2) During any period in which principal and interest charges are suspended on the Federal
share of any loan, as provided in subsection (b), the Administrator shall, upon the request of
any person, firm, or corporation having a participation in such loan, purchase such
participation, or assume the obligation of the borrower, for the balance of such period, to make
principal and interest payments on the non-Federal share of such loan: Provided, That no such
payments shall be made by the Administrator in behalf of any borrower unless (i) the
Administrator determines that such action is necessary in order to avoid a default, and (ii) the
borrower agrees to make payments to the Administration in an aggregate amount equal to the
amount paid in its behalf by the Administrator, in such manner and at such times (during or
after the term of the loan) as the Administrator shall determine having due regard to the
purposes sought to be achieved by this paragraph.
(3) With respect to a disaster occurring on or after October 1, 1978, and prior [to] the effective
date of this Act, on the Administration’s share of loans made pursuant to paragraph (1) of
subsection (b)—
(A) if the loan proceeds are to repair or replace a primary residence and/or repair or
replace damaged or destroyed personal property, the interest rate shall be 3 percent on the
first $55,000 of such loan;
(B) if the loan proceeds are to repair or replace property damaged or destroyed and if the
applicant is a business concern which is unable to obtain sufficient credit elsewhere, the
interest rate shall be as determined by the Administration, but not in excess of 5 percent per
annum; and

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(C) if the loan proceeds are to repair or replace property damaged or destroyed and if the
applicant is a business concern which is able to obtain sufficient credit elsewhere, the
interest rate shall not exceed the current average market yield on outstanding marketable
obligations of the United States with remaining periods to maturity comparable to the
average maturities of such loans and adjusted to the nearest one-eighth of 1 percent, and an
additional amount as determined by the Administration, but not to exceed 1 percent:
Provided, That three years after such loan is fully disbursed and every two years thereafter
for the term of the loan, if the Administration determines that the borrower is able to obtain
a loan from non-Federal sources at reasonable rates and terms for loans of similar purposes
and periods of time, the borrower shall, upon request by the Administration, apply for and
accept such a loan in sufficient amount to repay the Administration: Provided further,
That no loan under subsection (b)(1) shall be made, either directly or in cooperation with
banks or other lending institutions through agreements to participate on an immediate or
deferred basis, if the total amount outstanding and committed to the borrower under such
subsection would exceed $500,000 for each disaster, unless an applicant constitutes a
major source of employment in an area suffering a disaster, in which case the
Administration, in its discretion, may waive the $500,000 limitation.
(4) Notwithstanding the provisions of any other law, the interest rate on the Federal share of
any loan made under subsection (b) shall be—
(A) in the case of a homeowner unable to secure credit elsewhere, the rate prescribed by
the Administration but not more than one-half the rate determined by the Secretary of the
Treasury taking into consideration the current average market yield on outstanding
marketable obligations of the United States with remaining periods to maturity comparable
to the average maturities of such loans plus an additional charge of not to exceed 1 per
centum per annum as determined by the Administrator, and adjusted to the nearest oneeighth of 1 per centum but not to exceed 8 per centum per annum;
(B) in the case of a homeowner able to secure credit elsewhere, the rate prescribed by the
Administration but not more than the rate determined by the Secretary of the Treasury
taking into consideration the current average market yield on outstanding marketable
obligations of the United States with remaining periods to maturity comparable to the
average maturities of such loans plus an additional charge of not to exceed 1 per centum
per annum as determined by the Administrator, and adjusted to the nearest one-eighth of 1
per centum;
(C) in the case of a business concern unable to obtain credit elsewhere, not to exceed 8 per
centum per annum;
(D) in the case of a business concern able to obtain credit elsewhere, the rate prescribed by
the Administration but not in excess of the rate prevailing in private market for similar
loans and not more than the rate prescribed by the Administration as the maximum interest
rate for deferred participation (guaranteed) loans under section 7(a) of this Act [subsec. (a)
of this section]. Loans under this subparagraph shall be limited to a maximum term of three
years.

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(5) Notwithstanding the provisions of any other law, the interest rate on the Federal share of
any loan made under subsection (b)(1) and (b)(2) on account of a disaster commencing on or
after October 1, 1982, shall be—
(A) in the case of a homeowner unable to secure credit elsewhere, the rate prescribed by
the Administration but not more than one-half the rate determined by the Secretary of the
Treasury taking into consideration the current average market yield on outstanding
marketable obligations of the United States with remaining periods to maturity comparable
to the average maturities of such loan plus an additional charge of not to exceed 1 per
centum per annum as determined by the Administrator, and adjusted to the nearest oneeighth of 1 per centum, but not to exceed 4 per centum per annum;
(B) in the case of a homeowner able to secure credit elsewhere, the rate prescribed by the
Administration but not more than the rate determined by the Secretary of the Treasury
taking into consideration the current average market yield on outstanding marketable
obligations of the United States with remaining periods to maturity comparable to the
average maturities of such loans plus an additional charge of not to exceed 1 per centum
per annum as determined by the Administrator, and adjusted to the nearest one-eighth of 1
per centum, but not to exceed 8 per centum per annum;
(C) in the case of a business, private nonprofit organization, or other concern, including
agricultural cooperatives, unable to obtain credit elsewhere, not to exceed 4 per centum per
annum;
(D) in the case of a business concern able to obtain credit elsewhere, the rate prescribed by
the Administration but not to excess of the lowest of (i) the rate prevailing in the private
market for similar loans, (ii) the rate prescribed by the Administration as the maximum
interest rate for deferred participation (guaranteed) loans under section 7(a) of this Act
[subsec. (a) of this section], or (iii) 8 per centum per annum. Loans under this subparagraph
shall be limited to a maximum term of 7 years.
(6) Notwithstanding the provisions of any other law, such loans, subject to the reductions
required by subparagraphs (A) and (B) of paragraph 7(b)(1) [subsec. (b)(1)(A), (B) of this
section], shall be in amounts equal to 100 per centum of loss. The interest rates for loans made
under paragraphs 7(b)(1) and (2) [subsec. (b)(1), (2) of this section], as determined pursuant to
paragraph (5), shall be the rate of interest which is in effect on the date of the disaster
commenced: Provided, That no loan under paragraphs 7(b)(1) and (2) [subsec. (b)(1), (2) of
this section] shall be made, either directly or in cooperation with banks or other lending
institutions through agreements to participate on an immediate or deferred (guaranteed) basis,
if the total amount outstanding and committed to the borrower under subsection 7(b) [subsec.
(b) of this section] would exceed $500,000 for each disaster unless an applicant constitutes a
major source of employment in an area suffering a disaster, in which case the Administration,
in its discretion, may waive the $500,000 limitation: Provided further, That the
Administration, subject to the reductions required by subparagraphs (A) and (B) of paragraph
7(b)(1) [subsec. (b)(1) of this section], shall not reduce the amount of eligibility for any
homeowner on account of loss of real estate to less than $100,000 for each disaster nor for any
homeowner or lessee on account of loss of personal property to less than $20,000 for each
disaster, such sums being in addition to any eligible refinancing: Provided further, That the
Administration shall not require collateral for loans of $25,000 or less (or such higher amount

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as the Administrator determines appropriate in the event of a disaster) which are made under
paragraph (1) of subsection (b): Provided further, That the Administrator, in obtaining the best
available collateral for a loan of not more than $200,000 under paragraph (1) or (2) of
subsection (b) relating to damage to or destruction of the property of, or economic injury to, a
small business concern, shall not require the owner of the small business concern to use the
primary residence of the owner as collateral if the Administrator determines that the owner has
other assets of equal quality and with a value equal to or greater than the amount of the loan
that could be used as collateral for the loan: Provided further, That nothing in the preceding
proviso may be construed to reduce the amount of collateral required by the Administrator in
connection with a loan described in the preceding proviso or to modify the standards used to
evaluate the quality (rather than the type) of such collateral. Employees of concerns sharing a
common business premises shall be aggregated in determining “major source of employment”
status for nonprofit applicants owning such premises.
With respect to any loan which is outstanding on the date of enactment of this paragraph [enacted
April 18, 1984] and which was made on account of a disaster commencing on or after October 1,
1982, the Administrator shall make such change in the interest rate on the balance of such loan as
is required herein effective as of the date of enactment [enacted April 18, 1984].
(7) The Administration shall not withhold disaster assistance pursuant to this paragraph to
nurseries who are victims of drought disasters. As used in section 7(b)(2) [subsec. (b)(2) of this
section] the term “an area affected by a disaster” includes any county, or county contiguous
thereto, determined to be a disaster by the President, the Secretary of Agriculture or the
Administrator of the Small Business Administration.
(8) Disaster loans for Superstorm Sandy.
(A) In general. Notwithstanding any other provision of law, and subject to the same
requirements and procedures that are used to make loans pursuant to subsection (b), a small
business concern, homeowner, nonprofit entity, or renter that was located within an area
and during the time period with respect to which a major disaster was declared by the
President under section 401 of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5170) by reason of Superstorm Sandy may apply to the
Administrator—
(i) for a loan to repair, rehabilitate, or replace property damaged or destroyed by
reason of Superstorm Sandy; or
(ii) if such a small business concern has suffered substantial economic injury by reason
of Superstorm Sandy, for a loan to assist such a small business concern.
(B) Timing. The Administrator shall select loan recipients and make available loans for a
period of not less than 1 year after the date on which the Administrator carries out this
authority.
(C) Inspector General review. Not later than 6 months after the date on which the
Administrator begins carrying out this authority, the Inspector General of the
Administration shall initiate a review of the controls for ensuring applicant eligibility for
loans made under this paragraph.

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(e) Funds for small business development centers under 15 USCS § 648. The Administration
shall not fund any Small Business Development Center or any variation thereof, except as authorized
in section 21 of this Act [15 USCS § 648].
(f) Additional requirements for subsection (b) loans.
(1) Increased deferment authorized.
(A) In general. In making loans under subsection (b), the Administrator may provide, to
the person receiving the loan, an option to defer repayment on the loan.
(B) Period. The period of a deferment under subparagraph (A) may not exceed 4 years.
(2) [Not enacted]
(g) Net earnings clauses prohibited for subsection (b) loans. In making loans under subsection
(b), the Administrator shall not require the borrower to pay any non-amortized amount for the first
five years after repayment begins.
(h) Loans to handicapped persons and organizations for handicapped.
(1) The Administration also is empowered, where other financial assistance is not available on
reasonable terms, to make such loans (either directly or in cooperation with Banks or other
lending institutions through agreements to participate on an immediate or deferred basis) as the
Administration may determine to be necessary or appropriate—
(A) to assist any public or private organization—
(i) which is organized under the laws of the United States or of any State, operated in
the interest of handicapped individuals, the net income of which does not inure in
whole or in part to the benefit of any shareholder or other individual;
(ii) which complies with any applicable occupational health and safety standard
prescribed by the Secretary of Labor; and
(iii) which, in the production of commodities and in the provision of services during
any fiscal year in which it receives financial assistance under this subsection, employs
handicapped individuals for not less than 75 per centum of the man-hours required for
the production or provision of the commodities or services; or
(B) to assist any handicapped individual in establishing, acquiring, or operating a small
business concern.
(2) The Administration’s share of any loan made under this subsection shall not exceed
$350,000, nor may any such loan be made if the total amount outstanding and committed (by
participation or otherwise) to the borrower from the business loan and investment fund
established by section 4(c)(1)(B) of this Act [15 USCS § 633(c)(1)(B)] would exceed
$350,000. In agreements to participate in loans on a deferred basis under this subsection, the
Administration’s participation may total 100 per centum of the balance of the loan at the time
of disbursement. The Administration’s share of any loan made under this subsection shall bear
interest at the rate of 3 per centum per annum. The maximum term of any such loan, including
extensions and renewals thereof, may not exceed fifteen years. All loans made under this
subsection shall be of such sound value or so secured as reasonably to assure repayment:
Provided, however, That any reasonable doubt shall be resolved in favor of the applicant.

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(3) For purposes of this subsection, the term “handicapped individual” means a person who
has a physical, mental, or emotional impairment, defect, ailment, disease, or disability of a
permanent nature which in any way limits the selection of any type of employment for which
the person would otherwise be qualified or qualifiable.
(i) Loans to small business concerns located in urban or rural areas with high proportions of
unemployed or low-income individuals, or owned by low-income individuals.
(1) The Administration also is empowered to make, participate (on an immediate basis) in, or
guarantee loans, repayable in not more than fifteen years, to any small business concern, or to
any qualified person seeking to establish such a concern, when it determines that such loans
will further the policies established in section 2(b) of this Act, with particular emphasis on the
preservation or establishment of small business concerns located in urban or rural areas with
high proportions of unemployed or low-income individuals, or owned by low-income
individuals: Provided, however, That no such loans shall be made, participated in, or
guaranteed if the total of such Federal assistance to a single borrower outstanding at any one
time would exceed $100,000. The Administration may defer payments on the principal of such
loans for a grace period and use such other methods as it deems necessary and appropriate to
assure the successful establishment and operation of such concern. The Administration may, in
its discretion, as a condition of such financial assistance, require that the borrower take steps to
improve his management skills by participating in a management training program approved
by the Administration: Provided, however, That any management training program so
approved must be of sufficient scope and duration to provide reasonable opportunity for the
individuals served to develop entrepreneurial and managerial self-sufficiency.
(2) The Administration shall encourage, as far as possible, the participation of the private
business community in the program of assistance to such concerns, and shall seek to stimulate
new private lending activities to such concerns through the use of the loan guarantees,
participations in loans, and pooling arrangements authorized by this subsection.
(3) To insure an equitable distribution between urban and rural areas for loans between $3,500
and $100,000 made under this subsection, the Administration is authorized to use the agencies
and agreements and delegations developed under title III of the Economic Opportunity Act of
1964, as amended, as it shall determine necessary.
(4) The Administration shall provide for the continuing evaluation of programs under this
subsection, including full information on the location, income characteristics, and types of
businesses and individuals assisted, and on new private lending activity stimulated, and the
results of such evaluation together with recommendations shall be included in the report
required by section 10(a) of this Act [15 USCS § 639(a)].
(5) Loans made pursuant to this subsection (including immediate participation in and
guarantees of such loans) shall have such terms and conditions as the Administration shall
determine, subject to the following limitations—
(A) there is reasonable assurance of repayment of the loan;
(B) the financial assistance is not otherwise available on reasonable terms from private
sources or other Federal, State, or local programs;

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(C) the amount of the loan, together with other funds available, is adequate to assure
completion of the project or achievement of the purposes for which the loan is made;
(D) the loan bears interest at a rate not less than (i) a rate determined by the Secretary of
the Treasury, taking into consideration the average market yield on outstanding Treasury
obligations of comparable maturity, plus (ii) such additional charge, if any, toward
covering other costs of the program as the Administration may determine to be consistent
with its purposes: Provided, however, That the rate of interest charged on loans made in
redevelopment areas designated under the Public Works and Economic Development Act
of 1965 (42 U.S.C. 3108 [3121] et seq.) shall not exceed the rate currently applicable to
new loans made under section 201 of that Act (42 U.S.C. 3142 [3141]); and
(E) fees not in excess of amounts necessary to cover administrative expenses and probable
losses may be required on loan guarantees.
(6) The Administration shall take such steps as may be necessary to insure that, in any fiscal
year, at least 50 per centum of the amounts loaned or guaranteed pursuant to this subsection
are allotted to small business concerns located in urban areas identified by the Administration
as having high concentrations of unemployed or low-income individuals to small business
concerns owned by low-income individuals. The Administration shall define the meaning of
low income as it applies to owners of small business concerns eligible to be assisted under this
subsection.
(7) No financial assistance shall be extended pursuant to this subsection where the
Administration determines that the assistance will be used in relocating establishments from
one area to another if such relocation would result in an increase in unemployment in the area
of original location.
(j) Financial assistance for projects providing technical or management assistance; areas of
high concentration of unemployment or low-income; preferences; manner and method of
payment; accessible services; program evaluations; establishment of development program;
coordination of policies.
(1) The Administration shall provide financial assistance to public or private organizations to
pay all or part of the cost of projects designed to provide technical or management assistance
to individuals or enterprises eligible for assistance under sections 7(i), 7(j)(10), and 8(a) of this
Act [subsec. (i) of this section, para. (10) of this subsec., and 15 USCS § 637(a)], with special
attention to small businesses located in areas of high concentration of unemployed or lowincome individuals, to small businesses eligible to receive contracts pursuant to section 8(a) of
this Act [15 USCS § 637(a)].
(2) Financial assistance under this subsection may be provided for projects, including, but not
limited to—
(A) planning and research, including feasibility studies and market research;
(B) the identification and development of new business opportunities;
(C) the furnishing of centralized services with regard to public services and Federal
Government programs including programs authorized under sections 7(i), (7)(j)(10), and
8(a) of this Act [subsec. (i) of this section para. (10) of this subsec., and 15 USCS §
637(a)];

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(D) the establishment and strengthening of business service agencies, including trade
associations and cooperatives; and
(E) the furnishing of business counseling, management training, and legal and other
related services, with special emphasis on the development of management training
programs using the resources of the business community, including the development of
management training opportunities in existing business, and with emphasis in all cases
upon providing management training of sufficient scope and duration to develop
entrepreneurial and managerial self-sufficiency on the part of the individuals served.
(3) The Administration shall encourage the placement of subcontracts by businesses with
small business concerns located in areas of high concentration of unemployed or low-income
individuals, with small businesses owned by low-income individuals, and with small
businesses eligible to receive contracts pursuant to section 8(a) of this Act [15 USCS § 637(a)].
The Administration may provide incentives and assistance to such businesses that will aid in
the training and upgrading of potential subcontractors or other small business concerns eligible
for assistance under sections 7(i), 7(j), and 8(a) of this Act [subsec. (i) of this section, this
subsection, and 15 USCS § 637(a)].
(4) The Administration shall give preference to projects which promote the ownership,
participation in ownership, or management of small businesses owned by low-income
individuals and small businesses eligible to receive contracts pursuant to section 8(a) of this
Act [15 USCS § 637(a)].
(5) The financial assistance authorized for projects under this subsection includes assistance
advanced by grant, agreement, or contract.
(6) The Administration is authorized to make payments under grants and contracts entered
into under this subsection in lump sum or installments, and in advance or by way of
reimbursement, and in the case of grants, with necessary adjustments on account of
overpayments or underpayments.
(7) To the extent feasible, services under this subsection shall be provided in a location which
is easily accessible to the individuals and small business concerns served.
(8) [Repealed]
(9) The Administration shall take such steps as may be necessary and appropriate, in
coordination and cooperation with the heads of other Federal departments and agencies, to
insure that contracts, subcontracts, and deposits made by the Federal Government or with
programs aided with Federal funds are placed in such way as to further the purposes of
sections 7(i), 7(j), and 8(a) of this Act [subsec. (i) of this section, this subsec., and 15 USCS §
637(a)].
(10) There is established within the Administration a small business and capital ownership
development program (hereinafter referred to as the “Program”) which shall provide assistance
exclusively for small business concerns eligible to receive contracts pursuant to section 8(a) of
this Act [15 USCS § 637(a)]. The program, and all other services and activities authorized
under section 7(j) and 8(a) of this Act [this subsection and 15 USCS § 637(a)], shall be
managed by the Associate Administrator for Minority Small Business and Capital Ownership
Development under the supervision of, and responsible to, the Administrator.

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(A) The Program shall—
(i) assist small business concerns participating in the Program (either through public or
private organizations) to develop and maintain comprehensive business plans which set
forth the Program Participant’s specific business targets, objectives, and goals
developed and maintained in conformity with subparagraph (D). [;]
(ii) provide for such other nonfinancial services as deemed necessary for the
establishment, preservation, and growth of small business concerns participating in the
Program, including but not limited to (I) loan packaging, (II) financial counseling, (III)
accounting and bookkeeping assistance, (IV) marketing assistance, and (V)
management assistance;
(iii) assist small business concerns participating in the Program to obtain equity and
debt financing;
(iv) establish regular performance monitoring and reporting systems for small business
concerns participating in the Program to assure compliance with their business plans;
(v) analyze and report the causes of success and failure of small business concerns
participating in the Program; and
(vi) provide assistance necessary to help small business concerns participating in the
Program to procure surety bonds, with such assistance including, but not limited to, (I)
the preparation of application forms required to receive a surety bond, (II) special
management and technical assistance designed to meet the specific needs of small
business concerns participating in the Program and which have received or are applying
to receive a surety bond, and (III) preparation of all forms necessary to receive a surety
bond guarantee from the Administration pursuant to title IV, part B of the Small
Business Investment Act of 1958 [15 USCS §§ 694a et seq.].
(B) Small business concerns eligible to receive contracts pursuant to section 8(a) of this
Act [15 USCS § 637(a)] shall participate in the Program.
(C)
(i) A small business concern participating in any program or activity conducted under
the authority of this paragraph or eligible for the award of contracts pursuant to section
8(a) [15 USCS § 637(a)] on September 1, 1988, shall be permitted continued
participation and eligibility in such program or activity for a period of time which is the
greater of—
(I) 9 years less the number of years since the award of its first contract pursuant to
section 8(a) [15 USCS § 637(a)]; or
(II) its original fixed program participation term (plus any extension thereof)
assigned prior to the effective date of this paragraph plus eighteen months.
(ii) Nothing contained in this subparagraph shall be deemed to prevent the
Administration from instituting a termination or graduation pursuant to subparagraph
(F) or (H) for issues unrelated to the expiration of any time period limitation.
(D)

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(i) Promptly after certification under paragraph (11) a Program Participant shall submit
a business plan (hereinafter referred to as the “plan”) as described in clause (ii) of this
subparagraph for review by the Business Opportunity Specialist assigned to assist such
Program Participant. The plan may be a revision of a preliminary business plan
submitted by the Program Participant or required by the Administration as a part of the
application for certification under this section and shall be designed to result in the
Program Participant eliminating the conditions or circumstances upon which the
Administration determined eligibility pursuant to section 8(a)(6) [15 USCS §
837(a)(6)]. Such plan, and subsequent modifications submitted under clause (iii) of this
subparagraph, shall be approved by the business opportunity specialist prior to the
Program Participant being eligible for award of a contract pursuant to section 8(a) [15
USCS § 837(a)].
(ii) The plans submitted under this subparagraph shall include the following:
(I) An analysis of market potential, competitive environment, and other business
analyses estimating the Program Participant’s prospects for profitable operations
during the term of program participation and after graduation.
(II) An analysis of the Program Participant’s strengths and weaknesses with
particular attention to correcting any financial, managerial, technical, or personnel
conditions which are likely to impede the small business concern from receiving
contracts other than those awarded under section 8(a) [15 USCS § 837(a)].
(III) Specific targets, objectives, and goals, for the business development of the
Program Participant during the next and succeeding years utilizing the results of the
analyses conducted pursuant to subclauses (I) and (II).
(IV) A transition management plan outlining specific steps to assure profitable
business operations after graduation (to be incorporated into the Program
Participant’s plan during the first year of the transitional stage of Program
participation).
(V) Estimates of contract awards pursuant to section 8(a) [15 USCS § 637(a)] and
from other sources, which the Program Participant will require to meet the specific
targets, objectives, and goals for the years covered by its plan. The estimates
established shall be consistent with the provisions of subparagraph (I) and section
8(a) [15 USCS § 637(a)].
(iii) Each Program Participant shall annually review its currently approved plan with
its Business Opportunity Specialist and modify such plan as may be appropriate. Any
modified plan shall be submitted to the Administration for approval. The currently
approved plan shall be considered valid until such time as a modified plan is approved
by the Business Opportunity Specialist. Annual reviews pertaining to years in the
transitional stage of program participation shall require, as appropriate, a written
verification that such Program Participant has complied with the requirements of
subparagraph (I) relating to attaining business activity from sources other than
contracts awarded pursuant to section 8(a) [15 USCS § 637(a)].

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(iv) Each Program Participant shall annually forecast its needs for contract awards
under section 8(a) [15 USCS § 637(a)] for the next program year and the succeeding
program year during the review of its business plan, conducted pursuant to clause (iii).
Such forecast shall be known as the section 8(a) [15 USCS § 637(a)] contract support
level and shall be included in the Program Participant’s business plan. Such forecast
shall include—
(I) the aggregate dollar value of contract support to be sought on a noncompetitive
basis under section 8(a) [15 USCS § 637(a)], reflecting compliance with the
requirements of subparagraph (I) relating to attaining business activity from sources
other than contracts awarded pursuant to section 8(a) [15 USCS § 637(a)],
(II) the types of contract opportunities being sought, identified by Standard
Industrial Classification (SIC) Code or otherwise,
(III) an estimate of the dollar value of contract support to be sought on a
competitive basis, and
(IV) such other information as may be requested by the Business Opportunity
Specialist to provide effective business development assistance to the Program
Participant.
(E) A small business concern participating in the program conducted under the authority
of this paragraph and eligible for the award of contracts pursuant to section 8(a) [15 USCS
§ 637(a)] shall be denied all such assistance if such concern—
(i) voluntarily elects not to continue participation;
(ii) completes the period of Program participation as prescribed by paragraph (15);
(iii) is terminated pursuant to a termination proceeding conducted in accordance with
section 8(a)(9) [15 USCS § 637(a)(9)]; or
(iv) is graduated pursuant to a graduation proceeding conducted in accordance with
section 8(a)(9) [15 USCS § 637(a)(9)].
(F) For purposes of this section and section 8(a) [15 USCS § 637(a)], the term
“terminated” and the term “termination” means the total denial or suspension of assistance
under this paragraph or under section 8(a) [15 USCS § 637(a)] prior to the graduation of
the participating small business concern or prior to the expiration of the maximum program
participation term. An action for termination shall be based upon good cause, including—
(i) the failure by such concern to maintain its eligibility for Program participation;
(ii) the failure of the concern to engage in business practices that will promote its
competitiveness within a reasonable period of time as evidenced by, among other
indicators, a pattern of unjustified delinquent performance or terminations for default
with respect to contracts awarded under the authority of section 8(a) [15 USCS §
837(a)];
(iii) a demonstrated pattern of failing to make required submissions or responses to the
Administration in a timely manner;

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(iv) the willful violation of any rule or regulation of the Administration pertaining to
material issues;
(v) the debarment of the concern or its disadvantaged owners by any agency pursuant
to subpart 9.4 of title 48, Code of Federal Regulations (or any successor regulation); or
(vi) the conviction of the disadvantaged owner or an officer of the concern for any
offense indicating a lack of business integrity including any conviction for
embezzlement, theft, forgery, bribery, falsification or violation of section 16 [15 USCS
§ 645]. For purposes of this clause, no termination action shall be taken with respect to
a disadvantaged owner solely because of the conviction of an officer of the concern
(who is other than a disadvantaged owner) unless such owner conspired with, abetted,
or otherwise knowingly acquiesced in the activity or omission that was the basis of
such officer’s conviction.
(G) The Director of the Division may initiate a termination proceeding by recommending
such action to the Associate Administrator for Minority Small Business and Capital
Ownership Development. Whenever the Associate Administrator, or a designee of such
officer, determines such termination is appropriate, within 15 days after making such a
determination the Program Participant shall be provided a written notice of intent to
terminate, specifying the reasons for such action. No Program Participant shall be
terminated from the Program pursuant to subparagraph (F) without first being afforded an
opportunity for a hearing in accordance with section 8(a)(9) [15 USCS § 837(a)(9)].
(H) For the purposes of sections 7(j) and 8(a) [15 USCS §§ 636(j), 637(a)] the term
“graduated” or “graduation” means that the Program Participant is recognized as
successfully completing the program by substantially achieving the targets, objectives, and
goals contained in the concern’s business plan thereby demonstrating its ability to compete
in the marketplace without assistance under this section or section 8(a) [15 USCS §
637(a)].
(I)
(i) During the developmental stage of its participation in the Program, a Program
Participant shall take all reasonable efforts within its control to attain the targets
contained in its business plan for contracts awarded other than pursuant to section 8(a)
[15 USCS § 637(a)] (hereinafter referred to as “business activity targets.”). Such efforts
shall be made a part of the business plan and shall be sufficient in scope and duration to
satisfy the Administration that the Program Participant will engage a reasonable
marketing strategy that will maximize its potential to achieve its business activity
targets.
(ii) During the transitional stage of the Program a Program Participant shall be subject
to regulations regarding business activity targets that are promulgated by the
Administration pursuant to clause (iii).
(iii) The regulations referred to in clause (ii) shall:
(I) establish business activity targets applicable to Program Participants during the
fifth year and each succeeding year of Program Participation; such targets, for such
period of time, shall reflect a reasonably consistent increase in contracts awarded

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other than pursuant to section 8(a) [15 USCS § 637(a)], expressed as a percentage
of total sales; when promulgating business activity targets the Administration may
establish modified targets for Program Participants that have participated in the
Program for a period of longer than four years on the effective date of this
subparagraph;
(II) require a Program Participant to attain its business activity targets;
(III) provide that, before the receipt of any contract to be awarded pursuant to
section 8(a) [15 USCS § 637(a)], the Program Participant (if it is in the transitional
stage) must certify that it has complied with the regulations promulgated pursuant
to subclause (II), or that it is in compliance with such remedial measures as may
have been ordered pursuant to regulations issued under subclause (V);
(IV) require the Administration to review each Program Participant’s performance
regarding attainment of business activity targets during periodic reviews of such
Participant’s business plan; and
(V) authorize the Administration to take appropriate remedial measures with
respect to a Program Participant that has failed to attain a required business activity
target for the purpose of reducing such Participant’s dependence on contracts
awarded pursuant to section 8(a) [15 USCS § 637(a)]; such remedial actions may
include, but are not limited to assisting the Program Participant to expand the dollar
volume of its competitive business activity or limiting the dollar volume of
contracts awarded to the Program Participant pursuant to section 8(a) [15 USCS §
637(a)]; except for actions that would constitute a termination, remedial measures
taken pursuant to this subclause shall not be reviewable pursuant to section 8(a)(9)
[15 USCS § 637(a)(9)].
(J)
(i) The Administration shall conduct an evaluation of a Program Participant’s
eligibility for continued participation in the Program whenever it receives specific and
credible information alleging that such Program Participant no longer meets the
requirements for Program eligibility. Upon making a finding that a Program Participant
is no longer eligible, the Administration shall initiate a termination proceeding in
accordance with subparagraph (F). A Program Participant’s eligibility for award of any
contract under the authority of section 8(a) [15 USCS § 837(a)] may be suspended
pursuant to subpart 9.4 of title 48, Code of Federal Regulations (or any successor
regulation).
(ii)
(I) Except as authorized by subclauses (II) or (III), no award shall be made
pursuant to section 8(a) [15 USCS § 637(a)] to a concern other than a small
business concern.
(II) In determining the size of a small business concern owned by a socially and
economically disadvantaged Indian tribe (or a wholly owned business entity of such
tribe), each firm’s size shall be independently determined without regard to its
affiliation with the tribe, any entity of the tribal government, or any other business

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enterprise owned by the tribe, unless the Administrator determines that one or more
such tribally owned business concerns have obtained, or are likely to obtain, a
substantial unfair competitive advantage within an industry category.
(III) Any joint venture established under the authority of section 602(b) of Public
Law 100-656, the “Business Opportunity Development Reform Act of 1988” [15
USCS § 637 note], shall be eligible for award of a contract pursuant to section 8(a)
[15 USCS § 637(a)].
(11)
(A) The Associate Administrator for Minority Small Business and Capital Ownership
Development shall be responsible for coordinating and formulating policies relating to
Federal assistance to small business concerns eligible for assistance under section 7(i) of
this Act [subsec. (i) of this section] and small business concerns eligible to receive
contracts pursuant to section 8(a) of this Act [15 USCS § 637(a)].
(B)
(i) Except as provided in clause (iii), no individual who was determined pursuant to
section 8(a) [15 USCS § 637(a)] to be socially and economically disadvantaged before
the effective date of this subparagraph shall be permitted to assert such disadvantage
with respect to any other concern making application for certification after such
effective date.
(ii) Except as provided in clause (iii), any individual upon whom eligibility is based
pursuant to section 8(a) [15 USCS § 637(a)(4)] shall be permitted to assert such
eligibility for only one small business concern.
(iii) A socially and economically disadvantaged Indian tribe may own more than one
small business concern eligible for assistance pursuant to section 7(j)(10) and section
8(a) [para. 10 of this subsec. and 15 USCS § 637(a)] if—
(I) the Indian tribe does not own another firm in the same industry which has been
determined to be eligible to receive contracts under this program, and
(II) the individuals responsible for the management and daily operations of the
concern do not manage more than two Program Participants.
(C) No concern, previously eligible for the award of contracts pursuant to section 8(a) [15
USCS § 637(a)], shall be subsequently recertified for program participation if its prior
participation in the program was concluded for any of the reasons described in paragraph
(10)(E).
(D) A concern eligible for the award of contracts pursuant to this subsection shall remain
eligible for such contracts if there is a transfer of ownership and control (as defined
pursuant to section 8(a)(4) [15 USCS § 637(a)(4)]) to individuals who are determined to be
socially and economically disadvantaged pursuant to section 8(a) [15 USCS § 637(a)]. In
the event of such a transfer, the concern, if not terminated or graduated, shall be eligible for
a period of continued participation in the program not to exceed the time limitations
prescribed in paragraph (15).

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(E) There is established a Division of Program Certification and Eligibility (hereinafter
referred to in this paragraph as the “Division”) that shall be made part of the Office of
Minority Small Business and Capital Ownership Development. The Division shall be
headed by a Director who shall report directly to the Associate Administrator for Minority
Small Business and Capital Ownership Development. The Division shall establish field
offices within such regional offices of the Administration as may be necessary to perform
efficiently its functions and responsibilities.
(F) Subject to the provisions of section 8(a)(9) [15 USCS § 637(a)(9)], the functions and
responsibility of the Division are to—
(i) receive, review and evaluate applications for certification pursuant to paragraphs
(4), (5), (6) and (7) of section 8(a) [15 USCS § 637(a)];
(ii) advise each program applicant within 15 days after the receipt of an application as
to whether such application is complete and suitable for evaluation and, if not, what
matters must be rectified;
(iii) render recommendations on such applications to the Associate Administrator for
Minority Small Business and Capital Ownership Development;
(iv) review and evaluate financial statements and other submissions from concerns
participating in the program established by paragraph (10) to ascertain continued
eligibility to receive subcontracts pursuant to section 8(a) [15 USCS § 637(a)];
(v) make a request for the initiation of termination or graduation proceedings, as
appropriate, to the Associate Administrator for Minority Small Business and Capital
Ownership Development;
(vi) make recommendations to the Associate Administrator for Minority Small
Business and Capital Ownership Development concerning protests from applicants that
have been denied program admission;
(vii) decide protests regarding the status of a concern as a disadvantaged concern for
purposes of any program or activity conducted under the authority of subsection (d) of
section 8 [15 USCS § 637(d)], or any other provision of Federal law that references
such subsection for a definition of program eligibility; and
(viii) implement such policy directives as may be issued by the Associate
Administrator for Minority Small Business and Capital Ownership Development
pursuant to subparagraph (I) regarding, among other things, the geographic distribution
of concerns to be admitted to the program and the industrial make-up of such concerns.
(G) An applicant shall not be denied admission into the program established by paragraph
(10) due solely to a determination by the Division that specific contract opportunities are
unavailable to assist in the development of such concern unless—
(i) the Government has not previously procured and is unlikely to procure the types of
products or services offered by the concern; or
(ii) the purchases of such products or services by the Federal Government will not be
in quantities sufficient to support the developmental needs of the applicant and other
Program Participants providing the same or similar items or services.

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(H) Not later than 90 days after receipt of a completed application for Program
certification, the Associate Administrator for Minority Small Business and Capital
Ownership Development shall certify a small business concern as a Program Participant or
shall deny such application.
(I) Thirty days before the conclusion of each fiscal year, the Director of the Division shall
review all concerns that have been admitted into the Program during the preceding 12month period. The review shall ascertain the number of entrants, their geographic
distribution and industrial classification. The Director shall also estimate the expected
growth of the Program during the next fiscal year and the number of additional Business
Opportunity Specialists, if any, that will be needed to meet the anticipated demand for the
Program. The findings and conclusions of the Director shall be reported to the Associate
Administrator for Minority Small Business and Capital Ownership Development by
September 30 of each year. Based on such report and such additional data as may be
relevant, the Associate Administrator shall, by October 31 of each year, issue policy and
program directives applicable to such fiscal year that—
(i) establish priorities for the solicitation of program applications from
underrepresented regions and industry categories;
(ii) assign staffing levels and allocate other program resources as necessary to meet
program needs; and
(iii) establish priorities in the processing and admission of new Program Participants as
may be necessary to achieve an equitable geographic distribution of concerns and a
distribution of concerns across all industry categories in proportions needed to increase
significantly contract awards to small business concerns owned and controlled by
socially and economically disadvantaged individuals. When considering such increase
the Administration shall give due consideration to those industrial categories where
Federal purchases have been substantial but where the participation rate of such
concerns has been limited.
(12)
(A) The Administration shall segment the Capital Ownership Development Program into
two stages: a developmental stage; and a transitional stage.
(B) The developmental stage of program participation shall be designed to assist the
concern in its effort to overcome its economic disadvantage by providing such assistance
as may be necessary and appropriate to access its markets and to strengthen its financial
and managerial skills.
(C) The transitional stage of program participation shall be designed to overcome, insofar
as practicable, the remaining elements of economic disadvantage and to prepare such
concern for graduation from the program.
(13) A Program Participant, if otherwise eligible, shall be qualified to receive the following
assistance during the stages of program participation specified in paragraph 12 [(12)]:
(A) Contract support pursuant to section 8(a) [15 USCS § 637(a)].
(B) Financial assistance pursuant to section 7(a)(20) [15 USCS § 636(a)(20)].

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(C) A maximum of two exemptions from the requirements of section 1(a) of the Act
entitled “An Act providing conditions for the purchase of supplies and the making of
contracts by the United States, and for other purposes”, approved June 30, 1936 (49 Stat.
2036), which exemptions shall apply only to contracts awarded pursuant to section (8)(a)
[15 USCS § 637(a)] and shall only be used to allow for contingent agreements by a small
business concern to acquire the machinery, equipment, facilities, or labor needed to
perform such contracts. No exemption shall be made pursuant to this subparagraph if the
contract to which it pertains has an anticipated value in excess of $10,000,000. This
subparagraph shall cease to be effective on October 1, 1992.
(D) A maximum of five exemptions from the requirements of the Act entitled “An Act
requiring contracts for the construction, alteration and repair of any public building or
public work of the United States to be accompanied by a performance bond protecting the
United States and by an additional bond for the protection of persons furnishing material
and labor for the construction, alteration, or repair of said public buildings or public
works”, approved August 24, 1935 (49 Stat. 793) [40 USCS §§ 3131–3133], which
exemptions shall apply only to contracts awarded pursuant to section 8(a) [15 USCS §
637(a)], except that, such exemptions may be granted under this subparagraph only if—
(i) the Administration finds that such concern is unable to obtain the requisite bond or
bonds from a surety and that no surety is willing to issue a bond subject to the
guarantee provision of title IV of the Small Business Investment Act of 1958 (15
U.S.C. 692 et seq.);
(ii) the Administration and the agency providing the contracting opportunity have
provided for the protection of persons furnishing materials or labor to the Program
Participant by arranging for the direct disbursement of funds due to such persons by the
procuring agency or through any bank the deposits of which are insured by the Federal
Deposit Insurance Corporation; and
(iii) the contract to which it pertains does not exceed $3,000,000 in amount. This
subparagraph shall cease to be effective on October 1, 1994.
(E) Financial assistance whereby the Administration may purchase in whole or in part, and
on behalf of such concerns, skills training or upgrading for employees or potential
employees of such concerns. Such assistance may be made without regard to section 18(a)
[15 USCS § 647(a)]. Assistance may be made by direct payment to the training provider or
by reimbursing the Program Participant or the Participant’s employee, if such
reimbursement is found to be reasonable and appropriate. For purposes of this
subparagraph the term “training provider” shall mean an institution of higher education, a
community or vocational college, or an institution eligible to provide skills training or
upgrading under title I of the Workforce Innovation and Opportunity Act [29 USCS §§
3111 et seq.]. The Administration shall, in consultation with the Secretary of Labor,
promulgate rules and regulations to implement this subparagraph that establish acceptable
training and upgrading performance standards and provide for such monitoring or audit
requirements as may be necessary to ensure the integrity of the training effort. No financial
assistance shall be granted under the subparagraph unless the Administrator determines
that—

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(i) such concern has documented that it has first explored the use of existing cost-free
or cost-subsidized training programs offered by public and private sector agencies
working with programs of employment and training and economic development;
(ii) no more than five employees or potential employees of such concern are recipients
of any benefits under this subparagraph at any one time;
(iii) no more than $2,500 shall be made available for any one employee or potential
employee;
(iv) the length of training or upgrading financed by this subparagraph shall be no less
than one month nor more than six months;
(v) such concern has given adequate assurance it will employ the trainee or upgraded
employee for at least six months after the training or upgrading financed by this
subparagraph has been completed and each trainee or upgraded employee has provided
a similar assurance to remain within the employ of such concern for such period; if
such concern, trainee, or upgraded employee breaches this agreement, the
Administration shall be entitled to and shall make diligent efforts to obtain from the
violating party the repayment of all funds expended on behalf of the violating party,
such repayment shall be made to the Administration together with such interest and
costs of collection as may be reasonable; the violating party shall be barred from
receiving any further assistance under this subparagraph;
(vi) the training to be financed may take place either at such concern’s facilities or at
those of the training provider; and
(vii) such concern will maintain such records as the Administration deems appropriate
to ensure that the provisions of this paragraph and any other applicable law have not
been violated.
(F)
(i) The transfer of technology or surplus property owned by the United States to such a
concern. Activities designed to effect such transfer shall be developed in cooperation
with the heads of Federal agencies and shall include the transfer by grant, license, or
sale of such technology or property to such a concern. Such property may be
transferred to Program Participants on a priority basis. Technology or property
transferred under this subparagraph shall be used by the concern during the normal
conduct of its business operation and shall not be sold or transferred to any other party
(other than the Government) during such concern’s term of participation in the Program
and for one year thereafter.
(ii)
(I) In this clause—
(aa) the term “covered period” means the 2-year period beginning on the date
on which the President declared the applicable major disaster; and
(bb) the term “disaster area” means the area for which the President has
declared a major disaster, during the covered period.

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(II) The Administrator may transfer technology or surplus property under clause (i)
on a priority basis to a small business concern located in a disaster area if—
(aa) the small business concern meets the requirements for such a transfer,
without regard to whether the small business concern is a Program Participant;
and
(bb) for a small business concern that is a Program Participant, on and after the
date on which the President declared the applicable major disaster, the small
business concern has not received property under this subparagraph on the basis
of the status of the small business concern as a Program Participant.
(III) For any transfer of property under this clause to a small business concern, the
terms and conditions shall be the same as a transfer to a Program Participant, except
that the small business concern shall agree not to sell or transfer the property to any
party other than the Federal Government during the covered period.
(IV) A small business concern that receives a transfer of property under this clause
may not receive a transfer of property under clause (i) during the covered period.
(V) If a small business concern sells or transfers property in violation of the
agreement described in subclause (III), the Administrator may initiate proceedings
to prohibit the small business concern from receiving a transfer of property under
this clause or clause (i), in addition to any other remedy available to the
Administrator.
(iii)
(I) In this clause, the term “covered period” means—
(aa) in the case of a Puerto Rico business, the period beginning on August 13,
2018, and ending on the date on which the Oversight Board established under
section 2121 of title 48 [48 USCS § 2121] terminates; and
(bb) in the case of a covered territory business, the period beginning on the
date of the enactment of this item [enacted Jan. 1, 2021] and ending on the date
that is 4 years after such date of enactment [enacted Jan. 1, 2021].
(II) The Administrator may transfer technology or surplus property under clause (i)
to a Puerto Rico business or a covered territory business if either such business
meets the requirements for such a transfer, without regard to whether either such
business is a Program Participant.
(G) Training assistance whereby the Administration shall conduct training sessions to
assist individuals and enterprises eligible to receive contracts under section 8(a) [15 USCS
§ 637(a)] in the development of business principles and strategies to enhance their ability
to successfully compete for contracts in the marketplace.
(H) Joint ventures, leader-follower arrangements, and teaming agreements between the
Program Participant and other Program Participants and other business concerns with
respect to contracting opportunities for the research, development, full-scale engineering or
production of major systems. Such activities shall be undertaken on the basis of programs

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developed by the agency responsible for the procurement of the major system, with the
assistance of the Administration.
(I) Transitional management business planning training and technical assistance.
(J) Program Participants in the developmental stage of Program participation shall be
eligible for the assistance provided by subparagraphs (A), (B), (C), (D), (E), (F), and (G).
(14) Program Participants in the transitional stage of Program participation shall be eligible
for the assistance provided by subparagraphs (A), (B), (F), (G), (H), and (I) of paragraph (13).
(15) Subject to the provisions of paragraph (10)(C), a small business concern may receive
developmental assistance under the Program and contracts under section 8(a) [15 USCS §
637(a)] for a total period of not longer than nine years, measured from the date of its
certification under the authority of such section, of which—
(A) no more than four years may be spent in the developmental stage of Program
Participation; and
(B) no more than five years may be spent in the transitional stage of Program
Participation.
(16)
(A) The Administrator shall develop and implement a process for the systematic collection
of data on the operations of the Program established pursuant to paragraph (10).
(B) Not later than April 30 of each year, the Administrator shall submit a report to the
Congress on the Program that shall include the following:
(i) The average personal net worth of individuals who own and control concerns that
were initially certified for participation in the Program during the immediately
preceding fiscal year. The Administrator shall also indicate the dollar distribution of net
worths, at $50,000 increments, of all such individuals found to be socially and
economically disadvantaged. For the first report required pursuant to this paragraph the
Administrator shall also provide the data specified in the preceding sentence for all
eligible individuals in the Program as of the effective date of this paragraph.
(ii) A description and estimate of the benefits and costs that have accrued to the
economy and the Government in the immediately preceding fiscal year due to the
operations of those business concerns that were performing contracts awarded pursuant
to section 8(a) [15 USCS § 637(a)].
(iii) A compilation and evaluation of those business concerns that have exited the
Program during the immediately preceding three fiscal years. Such compilation and
evaluation shall detail the number of concerns actively engaged in business operations,
those that have ceased or substantially curtailed such operations, including the reasons
for such actions, and those concerns that have been acquired by other firms or
organizations owned and controlled by other than socially and economically
disadvantaged individuals. For those businesses that have continued operations after
they exited from the Program, the Administrator shall also separately detail the benefits
and costs that have accrued to the economy during the immediately preceding fiscal
year due to the operations of such concerns.

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(iv) A listing of all participants in the Program during the preceding fiscal year
identifying, by State and by Region, for each firm: the name of the concern, the race or
ethnicity, and gender of the disadvantaged owners, the dollar value of all contracts
received in the preceding year, the dollar amount of advance payments received by
each concern pursuant to contracts awarded under section 8(a) [15 USCS § 637(a)], and
a description including (if appropriate) an estimate of the dollar value of all benefits
received pursuant to paragraphs (13) and (14) and section 7(a)(20) [15 USCS §
636(a)(13), (14), (20)] during such year.
(v) The total dollar value of contracts and options awarded during the preceding fiscal
year pursuant to section 8(a) [15 USCS § 637(a)] and such amount expressed as a
percentage of total sales of (I) all firms participating in the Program during such year;
and (II) of firms in each of the nine years of program participation.
(vi) A description of such additional resources or program authorities as may be
required to provide the types of services needed over the next two-year period to
service the expected portfolio of firms certified pursuant to section 8(a) [15 USCS §
637(a)].
(vii) The total dollar value of contracts and options awarded pursuant to section 8(a)
[15 USCS § 637(a)], at such dollar increments as the Administrator deems appropriate,
for each four digit standard industrial classification code under which such contracts
and options were classified.
(C) The first report required by subparagraph (B) shall pertain to fiscal year 1990.
(k) Functions relating to loans and financial assistance for projects providing technical or
management assistance to individuals or enterprises eligible for assistance as small business
concerns located in urban or rural areas with high proportions of unemployed or lowincome individuals, or owned by low-income individuals. In carrying out its functions under
subsections 7(i), 7(j) and 8(a) of this Act [subsecs. (i) and (j) of this section and 15 USCS §
637(a)], the Administration is authorized—
(1) to utilize, with their consent, the services and facilities of Federal agencies without
reimbursement, and, with the consent of any State or political subdivision of a State, accept
and utilize the services and facilities of such State or subdivision without reimbursement;
(2) to accept, in the name of the Administration, and employ or dispose of in furtherance of
the purposes of this Act, any money or property, real, personal, or mixed, tangible, or
intangible, received by gift, devise, bequest, or otherwise;
(3) to accept voluntary and uncompensated services, notwithstanding the provisions of section
3679(b) of the Revised Statutes (31 U.S.C. 655(b)) [31 USCS § 1342]; and
(4) to employ experts and consultants or organizations thereof as authorized by section 15 of
the Administrative Expenses Act of 1946 (5 U.S.C. 55a) [5 USCS § 3109], except that no
individual may be employed under the authority of this subsection for more than one hundred
days in any fiscal year; to compensate individuals so employed at rates not in excess of the
daily equivalent of the highest rate payable under section 5332 of title 5, United States Code,
including traveltime; and to allow them, while away from their homes or regular places of
business, travel expenses (including per diem in lieu of subsistence) as authorized by section 5

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of such Act (5 U.S.C. 73b-2) [5 USCS § 5703] for persons in the Government service
employed intermittently, while so employed: Provided, however, That contracts for such
employment may be renewed annually.
(l) Small business intermediary lending pilot program.
(1) Definitions. In this subsection—
(A) the term “eligible intermediary”—
(i) means a private, nonprofit entity that—
(I) seeks or has been awarded a loan from the Administrator to make loans to small
business concerns under this subsection; and
(II) has not less than 1 year of experience making loans to startup, newly
established, or growing small business concerns; and
(ii) includes—
(I) a private, nonprofit community development corporation;
(II) a consortium of private, nonprofit organizations or nonprofit community
development corporations; and
(III) an agency of or nonprofit entity established by a Native American Tribal
Government; and
(B) the term “Program” means the small business intermediary lending pilot program
established under paragraph (2).
(2) Establishment. There is established a 3-year small business intermediary lending pilot
program, under which the Administrator may make direct loans to eligible intermediaries, for
the purpose of making loans to startup, newly established, and growing small business
concerns.
(3) Purposes. The purposes of the Program are—
(A) to assist small business concerns in areas suffering from a lack of credit due to poor
economic conditions or changes in the financial market; and
(B) to establish a loan program under which the Administrator may provide loans to
eligible intermediaries to enable the eligible intermediaries to provide loans to startup,
newly established, and growing small business concerns for working capital, real estate, or
the acquisition of materials, supplies, or equipment.
(4) Loans to eligible intermediaries.
(A) Application. Each eligible intermediary desiring a loan under this subsection shall
submit an application to the Administrator that describes—
(i) the type of small business concerns to be assisted;
(ii) the size and range of loans to be made;
(iii) the interest rate and terms of loans to be made;

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(iv) the geographic area to be served and the economic, poverty, and unemployment
characteristics of the area;
(v) the status of small business concerns in the area to be served and an analysis of the
availability of credit; and
(vi) the qualifications of the applicant to carry out this subsection.
(B) Loan limits. No loan may be made to an eligible intermediary under this subsection if
the total amount outstanding and committed to the eligible intermediary by the
Administrator would, as a result of such loan, exceed $1,000,000 during the participation
of the eligible intermediary in the Program.
(C) Loan duration. Loans made by the Administrator under this subsection shall be for a
term of 20 years.
(D) Applicable interest rates. Loans made by the Administrator to an eligible intermediary
under the Program shall bear an annual interest rate equal to 1.00 percent.
(E) Fees; collateral. The Administrator may not charge any fees or require collateral with
respect to any loan made to an eligible intermediary under this subsection.
(F) Delayed payments. The Administrator shall not require the repayment of principal or
interest on a loan made to an eligible intermediary under the Program during the 2-year
period beginning on the date of the initial disbursement of funds under that loan.
(G) Maximum participants and amounts. During each of fiscal years 2011, 2012, and
2013, the Administrator may make loans under the Program—
(i) to not more than 20 eligible intermediaries; and
(ii) in a total amount of not more than $20,000,000.
(5) Loans to small business concerns.
(A) In general. The Administrator, through an eligible intermediary, shall make loans to
startup, newly established, and growing small business concerns for working capital, real
estate, and the acquisition of materials, supplies, furniture, fixtures, and equipment.
(B) Maximum loan. An eligible intermediary may not make a loan under this subsection of
more than $200,000 to any 1 small business concern.
(C) Applicable interest rates. A loan made by an eligible intermediary to a small business
concern under this subsection, may have a fixed or a variable interest rate, and shall bear an
interest rate specified by the eligible intermediary in the application of the eligible
intermediary for a loan under this subsection.
(D) Review restrictions. The Administrator may not review individual loans made by an
eligible intermediary to a small business concern before approval of the loan by the eligible
intermediary.
(6) Termination. The authority of the Administrator to make loans under the Program shall
terminate 3 years after the date of enactment of the Small Business Job Creation and Access to
Capital Act of 2010 [enacted Sept. 27, 2010].
(m) Microloan Program.

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(1)
(A) Purposes. The purposes of the Microloan Program are—
(i) to assist women, low-income, veteran (within the meaning of such term under
section 3(q) [15 USCS § 632(q)]), and minority entrepreneurs and business owners and
other such individuals possessing the capability to operate successful business
concerns; and
(ii) to assist small business concerns in those areas suffering from a lack of credit due
to economic downturns;
(iii) to establish a microloan program to be administered by the Small Business
Administration—
(I) to make loans to eligible intermediaries to enable such intermediaries to provide
small-scale loans, particularly loans in amounts averaging not more than $10,000,
to startup, newly established, or growing small business concerns for working
capital or the acquisition of materials, supplies, or equipment;
(II) to make grants to eligible intermediaries that, together with non-Federal
matching funds, will enable such intermediaries to provide intensive marketing,
management, and technical assistance to microloan borrowers;
(III) to make grants to eligible nonprofit entities that, together with non-Federal
matching funds, will enable such entities to provide intensive marketing,
management, and technical assistance to assist low-income entrepreneurs and other
low-income individuals obtain private sector financing for their businesses, with or
without loan guarantees; and
(IV) to report to the Committees on Small Business of the Senate and the House of
Representatives on the effectiveness of the microloan program and the advisability
and feasibility of implementing such a program nationwide; and
(iv) to establish a welfare-to-work microloan initiative, which shall be administered by
the Administration, in order to test the feasibility of supplementing the technical
assistance grants provided under clauses (ii) and (iii) of subparagraph (B) to individuals
who are receiving assistance under the State program funded under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.), or under any comparable State funded
means tested program of assistance for low-income individuals, in order to adequately
assist those individuals in—
(I) establishing small businesses; and
(II) eliminating their dependence on that assistance.
(B) Establishment. There is established a microloan program, under which the
Administration may—
(i) make direct loans to eligible intermediaries, as provided under paragraph (3), for
the purpose of making short-term, fixed interest rate microloans to startup, newly
established, and growing small business concerns under paragraph (6);

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(ii) in conjunction with such loans and subject to the requirements of paragraph (4),
make grants to such intermediaries for the purpose of providing intensive marketing,
management, and technical assistance to small business concerns that are borrowers
under this subsection; and
(iii) subject to the requirements of paragraph (5), make grants to nonprofit entities for
the purpose of providing marketing, management, and technical assistance to lowincome individuals seeking to start or enlarge their own businesses, if such assistance
includes working with the grant recipient to secure loans in amounts not to exceed
$50,000 from private sector lending institutions, with or without a loan guarantee from
the nonprofit entity.
(2) Eligibility for participation. An intermediary shall be eligible to receive loans and grants
under subparagraphs (B)(i) and (B)(ii) of paragraph (1) if it—
(A) meets the definition in paragraph (10) [(11)]; and
(B) has at least 1 year of experience making microloans to startup, newly established, or
growing small business concerns and providing, as an integral part of its microloan
program, intensive marketing, management, and technical assistance to its borrowers.
(3) Loans to intermediaries.
(A) Intermediary applications.
(i) In general. As part of its application for a loan, each intermediary shall submit a
description to the Administration of—
(I) the type of businesses to be assisted;
(II) the size and range of loans to be made;
(III) the geographic area to be served and its economic, poverty, and
unemployment characteristics;
(IV) the status of small business concerns in the area to be served and an analysis
of their credit and technical assistance needs;
(V) any marketing, management, and technical assistance to be provided in
connection with a loan made under this subsection;
(VI) the local economic credit markets, including the costs associated with
obtaining credit locally;
(VII) the qualifications of the applicant to carry out the purpose of this subsection;
and
(VIII) any plan to involve other technical assistance providers (such as counselors
from the Service Corps of Retired Executives or small business development
centers) or private sector lenders in assisting selected business concerns.
(ii) Selection of intermediaries. In selecting intermediaries to participate in the
program established under this subsection, the Administration shall give priority to
those applicants that provide loans in amounts averaging not more than $10,000.

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(B) Intermediary contribution. As a condition of any loan made to an intermediary under
subparagraph (B)(i) of paragraph (1), the Administrator shall require the intermediary to
contribute not less than 15 percent of the loan amount in cash from non-Federal sources.
(C) Loan limits. Notwithstanding subsection (a)(3), no loan shall be made under this
subsection if the total amount outstanding and committed to one intermediary (excluding
outstanding grants) from the business loan and investment fund established by this Act
would, as a result of such loan, exceed $750,000 in the first year of such intermediary’s
participation in the program, $7,000,000 (in the aggregate) in the remaining years of the
intermediary’s participation in the program, and $3,000,000 in any of those remaining
years.
(D)
(i) In general. The Administrator shall, by regulation, require each intermediary to
establish a loan loss reserve fund, and to maintain such reserve fund until all
obligations owed to the Administration under this subsection are repaid.
(ii) Level of loan loss reserve fund.
(I) In general. Subject to subclause (III), the Administrator shall require the loan
loss reserve fund of an intermediary to be maintained at a level equal to 15 percent
of the outstanding balance of the notes receivable owed to the intermediary.
(II) Review of loan loss reserve. After the initial 5 years of an intermediary’s
participation in the program authorized by this subsection, the Administrator shall,
at the request of the intermediary, conduct a review of the annual loss rate of the
intermediary. Any intermediary in operation under this subsection prior to October
1, 1994, that requests a reduction in its loan loss reserve shall be reviewed based on
the most recent 5-year period preceding the request.
(III) Reduction of loan loss reserve. Subject to the requirements of clause
[subclause] IV, the Administrator may reduce the annual loan loss reserve
requirement of an intermediary to reflect the actual average loan loss rate for the
intermediary during the preceding 5-year period, except that in no case shall the
loan loss reserve be reduced to less than 10 percent of the outstanding balance of
the notes receivable owed to the intermediary.
(IV) Requirements. The Administrator may reduce the annual loan loss reserve
requirement of an intermediary only if the intermediary demonstrates to the
satisfaction of the Administrator that—
(aa) the average annual loss rate for the intermediary during the preceding 5year period is less than 15 percent; and
(bb) [that] no other factors exist that may impair the ability of the intermediary
to repay all obligations owed to the Administration under this subsection.
(E) Unavailability of comparable credit. An intermediary may make a loan under this
subsection of more than $20,000 to a small business concern only if such small business
concern demonstrates that it is unable to obtain credit elsewhere at comparable interest
rates and that it has good prospects for success. In no case shall an intermediary make a

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loan under this subsection of more than $50,000, or have outstanding or committed to any
1 borrower more than $50,000.
(F) Loan duration; interest rates.
(i) Loan duration. Loans made by the Administration under this subsection shall be for
a term of 10 years.
(ii) Applicable interest rates. Except as provided in clause (iii), loans made by the
Administration under this subsection to an intermediary shall bear an interest rate equal
to 1.25 percentage points below the rate determined by the Secretary of the Treasury
for obligations of the United States with a period of maturity of 5 years, adjusted to the
nearest one-eighth of 1 percent.
(iii) Rates applicable to certain small loans. Loans made by the Administration to an
intermediary that makes loans to small business concerns and entrepreneurs averaging
not more than $7,500, shall bear an interest rate that is 2 percentage points below the
rate determined by the Secretary of the Treasury for obligations of the United States
with a period of maturity of 5 years, adjusted to the nearest one-eighth of 1 percent.
(iv) Rates applicable to multiple sites or offices. The interest rate prescribed in clause
(ii) or (iii) shall apply to each separate loan-making site or office of 1 intermediary only
if such site or office meets the requirements of that clause.
(v) Rate basis. The applicable rate of interest under this paragraph shall—
(I) be applied retroactively for the first year of an intermediary’s participation in
the program, based upon the actual lending practices of the intermediary as
determined by the Administration prior to the end of such year; and
(II) be based in the second and subsequent years of an intermediary’s participation
in the program, upon the actual lending practices of the intermediary during the
term of the intermediary’s participation in the program.
(vi) [Not enacted]
(vii) Covered intermediaries. The interest rates prescribed in this subparagraph shall
apply to all loans made to intermediaries under this subsection on or after October 28,
1991.
(G) Delayed payments. The Administration shall not require repayment of interest or
principal of a loan made to an intermediary under this subsection during the first year of
the loan.
(H) Fees; collateral. Except as provided in subparagraphs (B) and (D), the Administration
shall not charge any fees or require collateral other than an assignment of the notes
receivable of the microloans with respect to any loan made to an intermediary under this
subsection.
(4) Marketing, management and technical assistance grants to intermediaries. Grants made in
accordance with subparagraph (B)(ii) of paragraph (1) shall be subject to the following
requirements:

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(A) Grant amounts. Except as otherwise provided in subparagraphs (C) and (G) and
subject to subparagraph (B), each intermediary that receives a loan under subparagraph
(B)(i) of paragraph (1) shall be eligible to receive a grant to provide marketing,
management, and technical assistance to small business concerns that are borrowers under
this subsection. Except as provided in subparagraphs (C) and (G), each intermediary
meeting the requirements of subparagraph (B) may receive a grant of not more than 25
percent of the total outstanding balance of loans made to it under this subsection.
(B) Contribution. As a condition of a grant made under subparagraph (A), the
Administrator shall require the intermediary to contribute an amount equal to 25 percent of
the amount of the grant, obtained solely from non-Federal sources. In addition to cash or
other direct funding, the contribution may include indirect costs or in-kind contributions
paid for under non-Federal programs.
(C) Additional technical assistance grants for making certain loans.
(i) In general. In addition to grants made under subparagraph (A) or (G), each
intermediary shall be eligible to receive a grant equal to 5 percent of the total
outstanding balance of loans made to the intermediary under this subsection if—
(I) the intermediary provides not less than 25 percent of its loans to small business
concerns located in or owned by 1 or more residents of an economically distressed
area; or
(II) the intermediary has a portfolio of loans made under this subsection—
(aa) that averages not more than $10,000 during the period of the
intermediary’s participation in the program; or
(bb) of which not less than 25 percent is serving rural areas during the period
of the intermediary’s participation in the program.
(ii) Purposes. A grant awarded under clause (i) may be used to provide marketing,
management, and technical assistance to small business concerns that are borrowers
under this subsection.
(iii) Contribution exception. The contribution requirements in subparagraph (B) do not
apply to grants made under this subparagraph.
(D) Eligibility for multiple sites or offices. The eligibility for a grant described in
subparagraph (A)[,] or (C) shall be determined separately for each loan-making site or
office of 1 intermediary.
(E) Assistance to certain small business concerns.
(i) In general. Each intermediary may expend an amount not to exceed 50 percent of
the grant funds received under paragraph (1)(B)(ii) to provide information and
technical assistance to small business concerns that are prospective borrowers under
this subsection.
(ii) Technical assistance. An intermediary may expend not more than 50 percent of the
funds received under paragraph (1)(B)(ii) to enter into third party contracts for the
provision of technical assistance.

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(F) Supplemental grant.
(i) In general. The Administration may accept any funds transferred to the
Administration from other departments or agencies of the Federal Government to make
grants in accordance with this subparagraph and section 202(b) of the Small Business
Reauthorization Act of 1997 [note to this section] to participating intermediaries and
technical assistance providers under paragraph (5), for use in accordance with clause
(iii) to provide additional technical assistance and related services to recipients of
assistance under a State program described in paragraph (1)(A)(iv) at the time they
initially apply for assistance under this subparagraph.
(ii) Eligible recipients; grant amounts. In making grants under this subparagraph, the
Administration may select, from among participating intermediaries and technical
assistance providers described in clause (i), not more than 20 grantees in fiscal year
1998, not more than 25 grantees in fiscal year 1999, and not more than 30 grantees in
fiscal year 2000, each of whom may receive a grant under this subparagraph in an
amount not to exceed $200,000 per year.
(iii) Use of grant amounts. Grants under this subparagraph—
(I) are in addition to other grants provided under this subsection and shall not
require the contribution of matching amounts as a condition of eligibility; and
(II) may be used by a grantee—
(aa) to pay or reimburse a portion of child care and transportation costs of
recipients of assistance described in clause (i), to the extent such costs are not
otherwise paid by State block grants under the Child Care Development Block
Grant Act of 1990 (42 U.S.C. 9858 et seq.) or under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.); and
(bb) for marketing, management, and technical assistance to recipients of
assistance described in clause (i).
(iv) Memorandum of understanding. Prior to accepting any transfer of funds under
clause (i) from a department or agency of the Federal Government, the Administration
shall enter into a Memorandum of Understanding with the department or agency, which
shall—
(I) specify the terms and conditions of the grants under this subparagraph; and
(II) provide for appropriate monitoring of expenditures by each grantee under this
subparagraph and each recipient of assistance described in clause (i) who receives
assistance from a grantee under this subparagraph, in order to ensure compliance
with this subparagraph by those grantees and recipients of assistance.
(G) Grant amounts based on appropriations. In any fiscal year in which the amount
appropriated to make grants under subparagraph (A) is sufficient to provide to each
intermediary that receives a loan under paragraph (1)(B)(i) a grant of not less than 25
percent of the total outstanding balance of loans made to the intermediary under this
subsection, the Administration shall make a grant under subparagraph (A) to each

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intermediary of not less than 25 percent and not more than 30 percent of that total
outstanding balance for the intermediary.
(5) Private sector borrowing technical assistance grants. Grants made in accordance with
subparagraph (B)(iii) of paragraph (1) shall be subject to the following requirements:
(A) Grant amounts. Subject to the requirements of subparagraph (B), the Administration
may make not more than 55 grants annually, each in amounts not to exceed $200,000 for
the purposes specified in subparagraph (B)(iii) of paragraph (1).
(B) Contribution. As a condition of any grant made under subparagraph (A), the
Administration shall require the grant recipient to contribute an amount equal to 20 percent
of the amount of the grant, obtained solely from non-Federal sources. In addition to cash or
other direct funding, the contribution may include indirect costs or in-kind contributions
paid for under non-Federal programs.
(6) Loans to small business concerns from eligible intermediaries.
(A) In general. An eligible intermediary shall make short-term, fixed rate loans to startup,
newly established, and growing small business concerns from the funds made available to
it under subparagraph (B)(i) of paragraph (1) for working capital and the acquisition of
materials, supplies, furniture, fixtures, and equipment.
(B) Portfolio requirement. To the extent practicable, each intermediary that operates a
microloan program under this subsection shall maintain a microloan portfolio with an
average loan size of not more than $15,000.
(C) Interest limit. Notwithstanding any provision of the laws of any State or the
constitution of any State pertaining to the rate or amount of interest that may be charged,
taken, received, or reserved on a loan, the maximum rate of interest to be charged on a
microloan funded under this subsection shall not exceed the rate of interest applicable to a
loan made to an intermediary by the Administration—
(i) in the case of a loan of more than $7,500 made by the intermediary to a small
business concern or entrepreneur by more than 7.75 percentage points; and
(ii) in the case of a loan of not more than $7,500 made by the intermediary to a small
business concern or entrepreneur by more than 8.5 percentage points.
(D) Review restriction. The Administration shall not review individual microloans made
by intermediaries prior to approval.
(E) Establishment of child care or transportation businesses. In addition to other eligible
small businesses concerns, borrowers under any program under this subsection may
include individuals who will use the loan proceeds to establish for-profit or nonprofit child
care establishments or businesses providing for-profit transportation services.
(7) Program funding for microloans.
(A) Number of participants. Under the program authorized by this subsection, the
Administration may fund, on a competitive basis, not more than 300 intermediaries.
(B) Allocation.

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(i) Minimum allocation. Subject to the availability of appropriations, of the total
amount of new loan funds made available for award under this subsection in each fiscal
year, the Administration shall make available for award in each State (including the
District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin
Islands, Guam, and American Samoa) an amount equal to the sum of—
(I) the lesser of—
(aa) $800,000; or
(bb) 1/55 of the total amount of new loan funds made available for award under
this subsection for that fiscal year; and
(II) any additional amount, as determined by the Administration.
(ii) Redistribution. If, at the beginning of the third quarter of a fiscal year, the
Administration determines that any portion of the amount made available to carry out
this subsection is unlikely to be made available under clause (i) during that fiscal year,
the Administration may make that portion available for award in any one or more
States (including the District of Columbia, the Commonwealth of Puerto Rico, the
United States Virgin Islands, Guam, and American Samoa) without regard to clause (i).
(8) Equitable distribution of intermediaries. In approving microloan program applicants and
providing funding to intermediaries under this subsection, the Administration shall select and
provide funding to such intermediaries as will ensure appropriate availability of loans for small
businesses in all industries located throughout each State, particularly those located in urban
and in rural areas.
(9) Grants for management, marketing, technical assistance, and related services.
(A) In general. The Administration may procure technical assistance for intermediaries
participating in the Microloan Program to ensure that such intermediaries have the
knowledge, skills, and understanding of microlending practices necessary to operate
successful microloan programs.
(B) Assistance amount. The Administration shall transfer 7 percent of its annual
appropriation for loans and loan guarantees under this subsection to the Administration’s
Salaries and Expense Account for the specific purpose of providing 1 or more technical
assistance grants to experienced microlending organizations and national and regional
nonprofit organizations that have demonstrated experience in providing training support for
microenterprise development and financing[.] to achieve the purpose set forth in
subparagraph (A).
(C) Welfare-to-work microloan initiative. Of amounts made available to carry out the
welfare-to-work microloan initiative under paragraph (1)(A)(iv) in any fiscal year, the
Administration may use not more than 5 percent to provide technical assistance, either
directly or through contractors, to welfare-to-work microloan initiative grantees, to ensure
that, as grantees, they have the knowledge, skills, and understanding of microlending and
welfare-to-work transition, and other related issues, to operate a successful welfare-to-work
microloan initiative.

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(10) Report to Congress. On November 1, 1995, the Administration shall submit to the
Committees on Small Business of the Senate and the House of Representatives a report,
including the Administration’s evaluation of the effectiveness of the first 3 ½ years of the
microloan program and the following:
(A) the numbers and locations of the intermediaries funded to conduct microloan
programs;
(B) the amounts of each loan and each grant to intermediaries;
(C) a description of the matching contributions of each intermediary;
(D) the numbers and amounts of microloans made by the intermediaries to small business
concern borrowers;
(E) the repayment history of each intermediary;
(F) a description of the loan portfolio of each intermediary including the extent to which it
provides microloans to small business concerns in rural areas; and
(G) any recommendations for legislative changes that would improve program operations.
(11) Definitions. For purposes of this subsection—
(A) the term “intermediary” means—
(i) a private, nonprofit entity;
(ii) a private, nonprofit community development corporation;
(iii) a consortium of private, nonprofit organizations or nonprofit community
development corporations;
(iv) a quasi-governmental economic development entity (such as a planning and
development district), other than a State, county, municipal government, or any agency
thereof, if—
(I) no application is received from an eligible nonprofit organization; or
(II) the Administration determines that the needs of a region or geographic area are
not adequately served by an existing, eligible nonprofit organization that has
submitted an application; or
(v) an agency of or nonprofit entity established by a Native American Tribal
Government,
that seeks to borrow or has borrowed funds from the Administration to make microloans to
small business concerns under this subsection;
(B) the term “microloan” means a short-term, fixed rate loan of not more than $50,000,
made by an intermediary to a startup, newly established, or growing small business
concern;
(C) the term “rural area” means any political subdivision or unincorporated area—
(i) in a nonmetropolitan county (as defined by the Secretary of Agriculture) or its
equivalent thereof; or

Page 86 of 89
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(ii) in a metropolitan county or its equivalent that has a resident population of less than
20,000 if the Small Business Administration has determined such political subdivision
or area to be rural; and
(D) the term “economically distressed area”, as used in paragraph (4), means a county or
equivalent division of local government of a State in which the small business concern is
located, in which, according to the most recent data available from the Bureau of the
Census, Department of Commerce, not less than 40 percent of residents have an annual
income that is at or below the poverty level.
(12) Deferred participation loan pilot. In lieu of making direct loans to intermediaries as
authorized in paragraph (1)(B), during fiscal years 1998 through 2000, the Administration
may, on a pilot program basis, participate on a deferred basis of not less than 90 percent and
not more than 100 percent on loans made to intermediaries by a for-profit or nonprofit entity or
by alliances of such entities, subject to the following conditions:
(A) Number of loans. In carrying out this paragraph, the Administration shall not
participate in providing financing on a deferred basis to more than 10 intermediaries in
urban areas or more than 10 intermediaries in rural areas.
(B) Term of loans. The term of each loan shall be 10 years. During the first year of the
loan, the intermediary shall not be required to repay any interest or principal. During the
second through fifth years of the loan, the intermediary shall be required to pay interest
only. During the sixth through tenth years of the loan, the intermediary shall be required to
make interest payments and fully amortize the principal.
(C) Interest rate. The interest rate on each loan shall be the rate specified by paragraph
(3)(F) for direct loans.
(13) Evaluation of welfare-to-work microloan initiative. On January 31, 1999, and annually
thereafter, the Administration shall submit to the Committees on Small Business of the House
of Representatives and the Senate a report on any monies distributed pursuant to paragraph
(4)(F).
(n) Repayment deferred for active service reservists.
(1) Definitions. In this subsection:
(A) Active service. The term “active service” has the meaning given that term in section
101(d)(3) of title 10, United States Code.
(B) Eligible reservist. The term “eligible reservist” means a member of a reserve
component of the Armed Forces ordered to perform active service for a period of more
than 30 consecutive days.
(C) Essential employee. The term “essential employee” means an individual who is
employed by a small business concern and whose managerial or technical expertise is
critical to the successful day-to-day operations of that small business concern.
(D) Qualified borrower. The term “qualified borrower” means—
(i) an individual who is an eligible reservist and who received a direct loan under
subsection (a) or (b) before being ordered to active service; or

Page 87 of 89
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(ii) a small business concern that received a direct loan under subsection (a) or (b)
before an eligible reservist, who is an essential employee, was ordered to active service.
(2) Deferral of direct loans.
(A) In general. The Administration shall, upon written request, defer repayment of
principal and interest due on a direct loan made under subsection (a) or (b), if such loan
was incurred by a qualified borrower.
(B) Period of deferral. The period of deferral for repayment under this paragraph shall
begin on the date on which the eligible reservist is ordered to active service and shall
terminate on the date that is 180 days after the date such eligible reservist is discharged or
released from active service.
(C) Interest rate reduction during deferral. Notwithstanding any other provision of law,
during the period of deferral described in subparagraph (B), the Administration may, in its
discretion, reduce the interest rate on any loan qualifying for a deferral under this
paragraph.
(3) Deferral of loan guarantees and other financings. The Administration shall—
(A) encourage intermediaries participating in the program under subsection (m) to defer
repayment of a loan made with proceeds made available under that subsection, if such loan
was incurred by a small business concern that is eligible to apply for assistance under
subsection (b)(3); and
(B) not later than 30 days after the date of the enactment of this subsection [enacted Aug.
17, 1999], establish guidelines to—
(i) encourage lenders and other intermediaries to defer repayment of, or provide other
relief relating to, loan guarantees under subsection (a) and financings under section 504
of the Small Business Investment Act of 1958 [15 USCS § 697a] that were incurred by
small business concerns that are eligible to apply for assistance under subsection (b)(3),
and loan guarantees provided under subsection (m) if the intermediary provides relief
to a small business concern under this paragraph; and
(ii) implement a program to provide for the deferral of repayment or other relief to any
intermediary providing relief to a small business borrower under this paragraph.

History

HISTORY:
July 18, 1958, P. L. 85-536, § 2 [7], 72 Stat. 387; Aug. 21, 1958, P. L. 85-699, Title VI, § 602(c), 72 Stat.
698; Sept. 22, 1959, P. L. 86-367, § 2, 73 Stat. 647; June 30, 1961, P. L. 87-70, Title III, § 305(a), 75 Stat.
167; Sept. 26, 1961, P. L. 87-305, § 9, 75 Stat. 668; Feb. 5, 1964, P. L. 88-264, § 1, 78 Stat. 7; Sept. 2,
1964, P. L. 88-560, Title III, § 319, 78 Stat. 794; June 30, 1965, P. L. 89-59, § 1(a), (b), 79 Stat. 206; May
2, 1966, P. L. 89-409, § 3(a), 80 Stat. 133; Nov. 6, 1966, P. L. 89-769, § 7(b), 80 Stat. 1319; Oct. 11,
1967, P. L. 90-104, Title I, §§ 103, 104, 81 Stat. 268; Aug. 1, 1968, P. L. 90-448, Title XI, § 1106(a), 82
Stat. 567; Aug. 23, 1968, P. L. 90-495, § 31, 82 Stat. 835; Dec. 30, 1969, P. L. 91-173, Title V, § 504(a),

Page 88 of 89
15 USCS § 636

(b), 83 Stat. 802; Dec. 29, 1970, P. L. 91-596, § 28(a), (b), 84 Stat. 1618; Dec. 29, 1970, P. L. 91-597, §
25(a), (b), 84 Stat. 1633, 1634; Aug. 16, 1972, P. L. 92-385, §§ 1(a), 2(a), 86 Stat. 554, 555; Oct. 18,
1972, P. L. 92-500, § 8(a), 86 Stat. 898; Oct. 27, 1972, P. L. 92-595, § 3(b), 86 Stat. 1316; Jan. 2, 1974, P.
L. 93-237, §§ 2(a), (b), 3(a), 5, 6, 87 Stat. 1023, 1024; Aug. 23, 1974, P. L. 93-386, §§ 2(4), 3(2), 8, 9, 12,
88 Stat. 742, 746, 748, 749; June 4, 1976, P. L. 94-305, Title I, §§ 108(b), 109, 111, 112(c), (d), 114, 90
Stat. 666, 667; Aug. 4, 1977, P. L. 95-89, Title I, § 101(d), (e), Title III, §§ 301, 302, Title IV, §§ 402–
405, 91 Stat. 553, 558–560; July 4, 1978, P. L. 95-315, §§ 2, 3, 92 Stat. 377, 378; Oct. 24, 1978, P. L. 95507, Title II, ch 1, §§ 204, 205, Ch 4, § 231, 92 Stat. 1764, 1766, 1772; Oct. 24, 1978, P. L. 95-510, §
104, 92 Stat. 1782; July 25, 1979, P. L. 96-38, Title I, Ch IX, § 101(a), (b), 93 Stat. 118; July 2, 1980, P.
L. 96-302, Title I, Part B, §§ 119(a), (b), 122–124, Title II, § 203, Title V, § 505, 94 Stat. 840, 841, 843,
848, 852.; Oct. 21, 1980, P. L. 96-481, [Title I], Part A, §§ 104, 106(a), 107, Part B, § 112, 94 Stat. 2322,
2323; Aug. 13, 1981, P. L. 97-35, Title XIX, §§ 1902, 1911–1913(a), (c), 1914, 95 Stat. 767, 778–780;
Aug. 13, 1981, P. L. 97-35, Title XIX, § 1910, 95 Stat. 778; April 18, 1984, P. L. 98-270, Title III, §§
301, 304, 308, 309, 311, 98 Stat. 159–161; Aug. 21, 1984, P. L. 98-395, § 5, 98 Stat 1368; April 7, 1986,
P. L. 99-272, Title XVIII, §§ 18006(a)(1), (2), 18007, 18013, 100 Stat. 366, 370; Aug. 23, 1988, P. L.
100-418, Title VIII, §§ 8005, 8007(a), 102 Stat. 1557, 1559; Oct. 25, 1988, P. L. 100-533, Title III, §
302(a), 102 Stat. 2693; Nov. 3, 1988, P. L. 100-590, Title I, §§ 102(a), 103, 111(c), 119(a), 120-122, 102
Stat. 2992, 2995, 2999, 3000; Nov. 15, 1988, P. L. 100-656, Title II, §§ 201(a), 202, 205, 206, 208, Title
III, §§ 301, 302, 303(a), Title IV, § 408, Title V, § 505(h), 102 Stat. 3856, 3858, 3859, 3861, 3862, 3865,
3867, 3868, 3877, 3887); Nov. 23, 1988, P. L. 100-707, Title I, § 109(f), 102 Stat. 4708; June 15, 1989, P.
L. 101-37, §§ 4, 5, 6(a), 7(a), 8, 9, 10(a), (b), 103 Stat. 70-73; Nov. 21, 1989, P. L. 101-162, Title V, §§
(1), (2), 103 Stat. 1024, 1025; Nov. 15, 1990, P. L. 101-574, Title II, Part A, §§ 202, 204(a), 206, Part E,
§§ 242, 245, Title III, § 307, 104 Stat. 2818-2820, 2827, 2830; Oct. 28, 1991, P. L. 102-140, Title VI, §
609(b), (h), 105 Stat. 825, 827; Dec. 5, 1991, P. L. 102-191, § 4, 105 Stat. 1591; Sept. 4, 1992, P. L. 102366, Title I, Subtitle A, § 104, Subtitle B, § 113(a), Title II, Subtitle B, § 211, 106 Stat. 988, 989, 997;
Oct. 28, 1992, P. L. 102-564, Title III, § 307(b), (c), 106 Stat. 4263; Aug. 13, 1993, P. L. 103-81, §§ 4,
5(a), 7, 8, 107 Stat. 781, 782; Oct. 22, 1994, P. L. 103-403, Title II, §§ 201, 202, 204–208(a), (b), 209–
211, 311, Title VI, §§ 603–605(a), 108 Stat. 4180–4183, 4202, 4203.; Oct. 12, 1995, P. L. 104-36, §§ 2, 3,
4(a), 5, 109 Stat. 295, 297; Sept. 30, 1996, P. L. 104-208, Div D, Title I, §§ 103(a)–(d), (f), 105, 107, 111,
110 Stat. 3009-726, 3009-727, 3009-731, 3009-732, 3009-733; Dec. 2, 1997, P. L. 105-135, Title II,
Subtitle A, §§ 201–202(a), Subtitle C, § 231, Title VII, § 706, 111 Stat. 2597, 2606, 2637; Oct. 21, 1998,
P. L. 105-277, Div A, § 101(f) [Title VIII, Subtitle IV, § 405(d)(10), (f)(9)], 112 Stat. 2681-420, 2681430; April 2, 1999, P. L. 106-8, § 3(a), 113 Stat. 13; April 27, 1999, P. L. 106-22, §§ 2, 3, 113 Stat. 36;
April 27, 1999, P. L. 106-24, § 1(a), 113 Stat. 39; Aug. 17, 1999, P. L. 106-50, Title IV, §§ 401(b),
402(a), (b), 403, 404, 113 Stat. 244, 246; Dec. 21, 2000, P. L. 106-554, § 1(a)(9), 114 Stat. 2763; Dec. 21,
2001, P. L. 107-100, § 6(a), 115 Stat. 970; Dec. 8, 2004, Div K, Title I, Subtitle A, §§ 101(a), 102, 103(a),
107(a), (b), 118 Stat. 3442, 3443, 3445; Jan. 6, 2006, P. L. 109-163, Div A, Title VIII, Subtitle E, §
845(a)(2), (c), 119 Stat. 3390, 3391; Dec. 19, 2007, P. L. 110-140, Title XII, §§ 1201, 1202, 121 Stat.
1764; Feb. 14, 2008, P. L. 110-186, Title II, §§ 201(a), 203, 204, 208, 122 Stat. 627, 629, 631; May 22,
2008, P. L. 110-234, Title XII, Subtitle B, Part I, §§ 12061, 12063(a), (c)(2), 12065, 12066(a), 12068(a),
(b)(2), 12070, 12074, 12077, 12078(a), (b)(1), (c), Part II, §§ 12081–12083(a), 122 Stat. 1406, 1407,
1409, 1410, 1411, 1414, 1415, 1416.; June 18, 2008, P. L. 110-246, § 4(a), Title XII, Subtitle B, Part I, §§
12061, 12063(a), (c)(2), 12065, 12066(a), 12068(a), (b)(2), 12070, 12074, 12077, 12078(a), (b)(1), (c),
Part II, §§ 12081–12083(a), 122 Stat. 1664, 2168, 2169, 2171, 2172, 2173, 2176, 2177, 2178.; Sept. 27,
2010, P. L. 111-240, Title I, Subtitle A, Part I, §§ 1111, 1113, Part III, §§ 1131(a), 1133, 1135, Subtitle B,
§ 1206(a)–(g), Subtitle D, § 1401(a), (c)(1), 124 Stat. 2507, 2508, 2512, 2514, 2520, 2530, 2547, 2549;

Page 89 of 89
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Dec. 23, 2011, P. L. 112-74, Div C, Title V, § 531, 125 Stat. 922; Jan. 2, 2013, P. L. 112-239, Div A, Title
XVI, Subtitle C, Part I, § 1622(c), 126 Stat. 2069; July 22, 2014, P. L. 113-128, Title V, Subtitle B, §
512(cc), 128 Stat. 1717; July 28, 2015, P. L. 114-38, §§ 2, 4(b), 129 Stat. 437, 438; Nov. 25, 2015, P. L.
114-88, Div A, Title I, §§ 1101–1104, Div B, Title I, §§ 2101, 2102(a), (b), 2105–2107, 2109, Title II, §
2201, Title III, §§ 2301(a), 129 Stat. 687, 688, 689, 690, 692, 694–696.; Nov. 25, 2015, P. L. 114-92, Div
A, Title VIII, Subtitle F, § 865(a)(2), 129 Stat. 928; March 23, 2018, P. L. 115-141, Div E, Title V, § 532,
132 Stat. 581; June 21, 2018, P.L. 115-189, § 4(a)(2), 132 Stat. 1497; Aug. 13, 2018, P.L. 115-232, Div
A, Title VIII, Subtitle F, §§ 853(b), 861(c), 862(b)(1), (f), 132 Stat. 1885, 1896, 1897, 1900; Dec. 21,
2018, P.L. 115-370, § 2, 132 Stat. 5105; Dec. 20, 2019, P.L. 116-92, Div A, Title VIII, Subtitle G, §
877(a), 133 Stat. 1529; Mar. 27, 2020, P.L. 116-136, Div A, Title I, §§ 1102(a), (c), (d), 1110(f), 134 Stat.
286, 294, 308; Apr. 24, 2020, P.L. 116-139, Div A, § 101(d), 134 Stat. 621; June 5, 2020, P.L. 116-142,
§§ 2(a), 3(a), (c), 134 Stat. 641, 642; Dec. 27, 2020, P.L. 116-260, Div N, Title III, §§ 304(a),
(b)(1)(C)(ii), 308(a), 310(a)(1), (b), 311(a), 313(a), 315(a), 316-319, 326, 329(a), 334, 335(a), 336(a),
337(a), 338(a), 339(b), 340(a), (b)(1), 341, 342, 343(a), 344, 134 Stat. 1993, 1994, 2000, 2001, 2008,
2011, 2013, 2015, 2036, 2041, 2047-2051; Jan. 1, 2021, P.L. 116-283, Div A, Title VIII, Subtitle E, §
866(b)(1), (2), 134 Stat. 3785, 3786; Mar. 11, 2021, P.L. 117-2, Title V, § 5001(a), (b), (c)(2), 135 Stat.
81, 83, 84; Mar. 30, 2021, P.L. 117-6, § 2(a), 135 Stat. 250; Aug. 5, 2022, P.L. 117-165, § 2(a), 136 Stat.
1363; Aug. 5, 2022, P.L. 117-166, § 2, 136 Stat. 1365.
United States Code Service
Copyright © 2022 All rights reserved.

End of Document

15 USCS § 694a
Current through Public Law 117-166, approved August 5, 2022.
United States Code Service > TITLE 15. COMMERCE AND TRADE (Chs. 1 — 120) > CHAPTER 14B.
SMALL BUSINESS INVESTMENT PROGRAM (§§ 661 — 697g) > SURETY BOND GUARANTEES (§§
694a — 694c)

§ 694a. Definitions
As used in this part [15 USCS §§ 694a et seq.]—
(1) The term “bid bond” means a bond conditioned upon the bidder on a contract entering into
the contract, if he receives the award thereof, and furnishing the prescribed payment bond and
performance bond.
(2) The term “payment bond” means a bond conditioned upon the payment by the principal of
money to persons under contract with him.
(3) The term “performance bond” means a bond conditioned upon the completion by the
principal of a contract in accordance with its terms.
(4) The term “surety” means the person who (A) under the terms of a bid bond, undertakes to
pay a sum of money to the obligee in the event the principal breaches the conditions of the
bond, (B) under the terms of a performance bond, undertakes to incur the cost of fulfilling the
terms of a contract in the event the principal breaches the conditions of the contract, (C) under
the terms of a payment bond, undertakes to make payment to all persons supplying labor and
material in the prosecution of the work provided for in the contract if the principal fails to
make prompt payment, or (D) is an agent, independent agent, underwriter, or any other
company or individual empowered to act on behalf of such person.
(5) The term “obligee” means (A) in the case of a bid bond, the person requesting bids for the
performance of a contract, or (B) in the case of a payment bond or performance bond, the
person who has contracted with a principal for the completion of the contract and to whom the
obligation of the surety runs in the event of a breach by the principal of the conditions of a
payment bond or performance bond.
(6) The term “principal” means (A) in the case of a bid bond, a person bidding for the award
of a contract, or (B) the person primarily liable to complete a contract for the obligee, or to
make payments to other persons in respect of such contract, and for whose performance of his
obligation the surety is bound under the terms of a payment or performance bond. A principal
may be a prime contractor or a subcontractor.
(7) The term “prime contractor” means the person with whom the obligee has contracted to
perform the contract.
(8) The term “subcontractor” means a person who has contracted with a prime contractor or
with another subcontractor to perform a contract.

Page 2 of 2
15 USCS § 694a

(9) Notwithstanding any other provision of law or any rule, regulation, or order of the
Administration, for purpose of sections 410, 411, and 412 [15 USCS §§ 694a, 694b, 694c] the
term “small business concern” means a business concern that meets the size standard for the
primary industry in which such business concern, and the affiliates of such business concern, is
engaged, as determined by the Administrator in accordance with the North American Industry
Classification System.

History

HISTORY:
Aug. 21, 1958, P. L. 85-699, Title IV, Part B, § 410, as added Dec. 31, 1970, P. L. 91-609, Title IX, §
911(a)(4), 84 Stat. 1812; Oct. 24, 1978, P. L. 95-507, Title I, Ch 2, § 110, 92 Stat. 1758; Feb. 17, 2009, P.
L. 111-5, Div A, Title V, § 508(c), 123 Stat. 158; Jan. 2, 2013, P. L. 112-239, Div A, Title X, Subtitle D,
Part IX, § 1695(c), 126 Stat. 2090.
United States Code Service
Copyright © 2022 All rights reserved.

End of Document

15 USCS § 694b
Current through Public Law 117-166, approved August 5, 2022.
United States Code Service > TITLE 15. COMMERCE AND TRADE (Chs. 1 — 120) > CHAPTER 14B.
SMALL BUSINESS INVESTMENT PROGRAM (§§ 661 — 697g) > SURETY BOND GUARANTEES (§§
694a — 694c)

§ 694b. Surety bond guarantees
(a) Authority of Administration to guarantee surety against loss from principal’s breach of
bond.
(1)
(A) The Administration may, upon such terms and conditions as it may prescribe,
guarantee and enter into commitments to guarantee any surety against loss resulting from a
breach of the terms of a bid bond, payment bond, performance bond, or bonds ancillary
thereto, by a principal on any total work order or contract amount at the time of bond
execution that does not exceed $6,500,000, as adjusted for inflation in accordance with
section 1908 of title 41, United States Code.
(B) The Administrator may guarantee a surety under subparagraph (A) for a total work
order or contract amount that does not exceed $10,000,000, if a contracting officer of a
Federal agency certifies that such a guarantee is necessary.
(2) The terms and conditions of said guarantees and commitments may vary from surety to
surety on the basis of the Administration’s experience with the particular surety.
(3) The Administration may authorize any surety, without further administration approval, to
issue, monitor, and service such bonds subject to the Administration’s guarantee.
(4) No such guarantee may be issued, unless—
(A) the person who would be principal under the bond is a small business concern;
(B) the bond is required in order for such person to bid on a contract, or to serve as a prime
contractor or subcontractor thereon;
(C) such person is not able to obtain such bond on reasonable terms and conditions
without a guarantee under this section; and
(D) there is a reasonable expectation that such principal will perform the covenants and
conditions of the contract with respect to which such bond is required, and the terms and
conditions of such bond are reasonable in the light of the risks involved and the extent of
the surety’s participation.
(5)
(A) The Administration shall promptly act upon an application from a surety to participate
in the Preferred Surety Bond Guarantee Program, authorized by paragraph (3), in

Page 2 of 4
15 USCS § 694b

accordance with criteria and procedures established in regulations pursuant to subsection
(d).
(B) The Administration is authorized to reduce the allotment of bond guarantee authority
or terminate the participation of a surety in the Preferred Surety Program Guarantee
Program based on the rate of participation of such surety during the 4 most recent fiscal
year quarters compared to the median rate of participation by the other sureties in the
program.
(b) Indemnification of surety against loss from avoiding breach. Subject to the provisions of
this section, in connection with the issuance by the Administration of a guarantee to a surety as
provided by subsection (a), the Administrations may agree to indemnify such surety against a loss
sustained by such surety in avoiding or attempting to avoid a breach of the terms of a bond
guaranteed by the Administration pursuant to subsection (a): Provided, however
(1) prior to making any payment under this subsection, the Administration shall first
determine that a breach of the terms of such bond was imminent;
(2) a surety must obtain approval from the Administration prior to making any payments
pursuant to this subsection unless the surety is participating under the authority of subsection
(a)(3); and
(3) no payment by the Administration pursuant to this subsection shall exceed 10 per centum
of the contract price unless the Administrator determines that a greater payment should be
made as a result of a finding by the Administrator that the surety’s loss sustained in avoiding
or attempting to avoid such breach was necessary and reasonable.
In no event shall the Administration pay a surety pursuant to this subsection an amount exceeding
the guaranteed share of the bond available to such surety pursuant to subsection (a).
(c) Limitation of liability. Any guarantee or agreement to indemnify under this section shall
obligate the Administration to pay to the surety a sum—
(1) not to exceed 90 per centum of the loss incurred and paid by a surety authorized to issue
bonds subject to the Administration’s guarantee under subsection (a)(3);
(2) not to exceed 90 per centum of the loss incurred and paid in the case of a surety requiring
the Administration’s specific approval for the issuance of such bond, but in no event may the
Administration make any duplicate payment pursuant to subsection (b) or any other
subsection;
(3) equal to 90 per centum of the loss incurred and paid in the case of a surety requiring the
administration’s [Administration’s] specific approval for the issuance of a bond, if—
(A) the total amount of the contract at the time of execution of the bond or bonds is
$100,000 or less, or
(B) the bond was issued to a small business concern owned and controlled by socially and
economically disadvantaged individuals as defined by section 8(d) of the Small Business
Act [15 USCS § 637(d)], or to a qualified HUBZone small business concern (as defined in
section 3(p) of the Small Business Act [15 USCS § 632(p)]); or
(4) determined pursuant to subsection (b), if applicable.

Page 3 of 4
15 USCS § 694b

(d) Regulations. The Administration may establish and periodically review regulations for
participating sureties which shall require such sureties to meet Administration standards for
underwriting, claim practices, and loss ratios.
(e) Reimbursement of surety; conditions. Pursuant to any such guarantee or agreement, the
Administration shall reimburse the surety, as provided in subsection (c) of this section, except that
the Administration shall be relieved of liability (in whole or in part within the discretion of the
Administration) if—
(1) the surety obtained such guarantee or agreement, or applied for such reimbursement, by
fraud or material misrepresentation,
(2) the total contract amount at the time of execution of the bond or bonds exceeds
$6,500,000,
(3) the surety has breached a material term or condition of such guarantee agreement, or
(4) the surety has substantially violated the regulations promulgated by the Administration
pursuant to subsection (d).
(f) Procedure for reimbursement. The Administration may, upon such terms and conditions as it
may prescribe, adopt a procedure for reimbursing a surety for its paid losses billed each month,
based upon prior monthly payments to such surety, with subsequent adjustments after such
disbursement.
(g) Audit.
(1) Each participating surety shall make reports to the Administration at such times and in
such form as the Administration may require.
(2) The Administration may at all reasonable times audit, in the offices of a participating
surety, all documents, files, books, records, and other material relevant to the Administration’s
guarantee, commitments to guarantee, or agreements to indemnify any surety pursuant to this
section.
(3) Each surety participating under the authority of paragraph (3) of subsection (a) shall be
audited at least once every three years by examiners selected and approved by the
Administration.
(h) Administrative provisions. The Administration shall administer this Part [15 USCS §§ 694a
et seq.] on a prudent and economically justifiable basis and establish such fee or fees for small
business concerns and premium or premiums for sureties as it deems reasonable and necessary, to
be payable at such time and under such conditions as may be determined by the Administration.
(i) Powers of Administration respecting loans. The provisions of section 402 [15 USCS § 693]
shall apply in the administration of this section.
(j) Denial of liability. For bonds made or executed with the prior approval of the Administration,
the Administration shall not deny liability to a surety based upon material information that was
provided as part of the guarantee application.
(k) [Deleted]

History

Page 4 of 4
15 USCS § 694b

HISTORY:
Aug. 21, 1958, P. L. 85-699, Title IV, Part B, § 411, as added Dec. 31, 1970, P. L. 91-609, Title IX, §
911(a)(4), 84 Stat. 1813; Aug. 23, 1974, P. L. 93-386, §§ 6(a)(3), 11, 88 Stat. 747, 749; Oct. 24, 1978, P.
L. 95-507, Title I, Ch 2, § 111, 92 Stat. 1758; July 2, 1980, P. L. 96-302, Title I, Part B, § 115, 94 Stat.
839; April 7, 1986, P. L. 99-272, Title XVIII, § 18014, 100 Stat. 370; Nov. 3, 1988, P. L. 100-590, Title
II, §§ 202–204, 102 Stat. 3008, 3009; Sept. 30, 1996, P. L. 104-208, Div D, Title II, § 206(a), 110 Stat.
3009-738; Dec. 2, 1997, P. L. 105-135, Title VI, § 604(d), 111 Stat. 2633; Dec. 21, 2000, P. L. 106-554, §
1(a)(9), 114 Stat. 2763; Dec. 8, 2004, P. L. 108-447, Div K, Title II, § 203(a), (b), 118 Stat. 3465; Feb. 17,
2009, P. L. 111-5, Div A, Title V, § 508(a), (b), 123 Stat. 158; Jan. 2, 2013, P. L. 112-239, Div A, Title
XVI, Subtitle D, Part IX, § 1695(a), (b), 126 Stat. 2090; Nov. 25, 2015, P. L. 114-92, Div A, Title VIII,
Subtitle F, § 874(b), 129 Stat. 941.
United States Code Service
Copyright © 2022 All rights reserved.

End of Document

15 USCS § 694c
Current through Public Law 117-166, approved August 5, 2022.
United States Code Service > TITLE 15. COMMERCE AND TRADE (Chs. 1 — 120) > CHAPTER 14B.
SMALL BUSINESS INVESTMENT PROGRAM (§§ 661 — 697g) > SURETY BOND GUARANTEES (§§
694a — 694c)

§ 694c. Revolving fund for surety bond guarantees
(a) There is hereby created within the Treasury a separate fund for guarantees which shall be
available to the Administrator without fiscal year limitation as a revolving fund for the purposes of
this part [15 USCS §§ 694a et seq.]. All amounts received by the Administrator, including any
moneys, property, or assets derived by him from his operations in connection with this part [15
USCS §§ 694a et seq.], shall be deposited in the fund. All expenses and payments, excluding
administrative expenses, pursuant to operations of the Administrator under this part [15 USCS §§
694a et seq.] shall be paid from the fund.
(b) Such sums as may be appropriated to the Fund to carry out the programs authorized by this
part [15 USCS §§ 694a et seq.] shall be without fiscal year limitation.

History

HISTORY:
Aug. 21, 1958, P. L. 85-699, Title IV, Part B, § 411, as added August 23, 1974, P. L. 93-386, § 6(a)(4), 88
Stat. 747; June 4, 1976, P. L. 94-305, Title I, § 113, 90 Stat. 667; March 24, 1977, P. L. 95-14, § 4, 91
Stat. 25; Aug. 4, 1977, P. L. 95-89, Title I, § 105, 91 Stat. 556; July 2, 1980, P. L. 96-302, Title I, Part B,
§ 111, 94 Stat. 837; Nov. 3, 1988, P. L. 100-590, Title II, § 208, 102 Stat. 3009.
United States Code Service
Copyright © 2022 All rights reserved.

End of Document

5 USCS § 552, Part 1 of 4
Current through Public Law 117-166, approved August 5, 2022.
United States Code Service > TITLE 5. GOVERNMENT ORGANIZATION AND EMPLOYEES (§§ 101 —
11001) > Part I. The Agencies Generally (Chs. 1 — 9) > CHAPTER 5. Administrative Procedure (Subchs. I —
V) > Subchapter II. Administrative Procedure (§§ 551 — 559)

§ 552. Public information; agency rules, opinions, orders, records, and proceedings
(a) Each agency shall make available to the public information as follows:
(1) Each agency shall separately state and currently publish in the Federal Register for the
guidance of the public—
(A) descriptions of its central and field organization and the established places at which,
the employees (and in the case of a uniformed service, the members) from whom, and the
methods whereby, the public may obtain information, make submittals or requests, or
obtain decisions;
(B) statements of the general course and method by which its functions are channeled and
determined, including the nature and requirements of all formal and informal procedures
available;
(C) rules of procedure, descriptions of forms available or the places at which forms may
be obtained, and instructions as to the scope and contents of all papers, reports, or
examinations;
(D) substantive rules of general applicability adopted as authorized by law, and statements
of general policy or interpretations of general applicability formulated and adopted by the
agency; and
(E) each amendment, revision, or repeal of the foregoing.
Except to the extent that a person has actual and timely notice of the terms thereof, a person
may not in any manner be required to resort to, or be adversely affected by, a matter required
to be published in the Federal Register and not so published. For the purpose of this paragraph,
matter reasonably available to the class of persons affected thereby is deemed published in the
Federal Register when incorporated by reference therein with the approval of the Director of
the Federal Register.
(2) Each agency, in accordance with published rules, shall make available for public
inspection in an electronic format—
(A) final opinions, including concurring and dissenting opinions, as well as orders, made
in the adjudication of cases;
(B) those statements of policy and interpretations which have been adopted by the agency
and are not published in the Federal Register;

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(C) administrative staff manuals and instructions to staff that affect a member of the
public;
(D) copies of all records, regardless of form or format—
(i) that have been released to any person under paragraph (3); and
(ii)
(I) that because of the nature of their subject matter, the agency determines have
become or are likely to become the subject of subsequent requests for substantially
the same records; or
(II) that have been requested 3 or more times; and
(E) a general index of the records referred to under subparagraph (D);
unless the materials are promptly published and copies offered for sale. For records created on
or after November 1, 1996, within one year after such date, each agency shall make such
records available, including by computer telecommunications or, if computer
telecommunications means have not been established by the agency, by other electronic
means. To the extent required to prevent a clearly unwarranted invasion of personal privacy, an
agency may delete identifying details when it makes available or publishes an opinion,
statement of policy, interpretation, staff manual, instruction, or copies of records referred to in
subparagraph (D). However, in each case the justification for the deletion shall be explained
fully in writing, and the extent of such deletion shall be indicated on the portion of the record
which is made available or published, unless including that indication would harm an interest
protected by the exemption in subsection (b) under which the deletion is made. If technically
feasible, the extent of the deletion shall be indicated at the place in the record where the
deletion was made. Each agency shall also maintain and make available for public inspection
in an electronic format current indexes providing identifying information for the public as to
any matter issued, adopted, or promulgated after July 4, 1967, and required by this paragraph
to be made available or published. Each agency shall make the index referred to in
subparagraph (E) available by computer telecommunications by December 31, 1999. Each
agency shall promptly publish, quarterly or more frequently, and distribute (by sale or
otherwise) copies of each index or supplements thereto unless it determines by order published
in the Federal Register that the publication would be unnecessary and impracticable, in which
case the agency shall nonetheless provide copies of such index on request at a cost not to
exceed the direct cost of duplication. A final order, opinion, statement of policy,
interpretation, or staff manual or instruction that affects a member of the public may be relied
on, used, or cited as precedent by an agency against a party other than an agency only if—
(i) it has been indexed and either made available or published as provided by this
paragraph; or
(ii) the party has actual and timely notice of the terms thereof.
(3)
(A) Except with respect to the records made available under paragraphs (1) and (2) of this
subsection, and except as provided in subparagraph (E), each agency, upon any request for
records which (i) reasonably describes such records and (ii) is made in accordance with

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published rules stating the time, place, fees (if any), and procedures to be followed, shall
make the records promptly available to any person.
(B) In making any record available to a person under this paragraph, an agency shall
provide the record in any form or format requested by the person if the record is readily
reproducible by the agency in that form or format. Each agency shall make reasonable
efforts to maintain its records in forms or formats that are reproducible for purposes of this
section.
(C) In responding under this paragraph to a request for records, an agency shall make
reasonable efforts to search for the records in electronic form or format, except when such
efforts would significantly interfere with the operation of the agency’s automated
information system.
(D) For purposes of this paragraph, the term “search” means to review, manually or by
automated means, agency records for the purpose of locating those records which are
responsive to a request.
(E) An agency, or part of an agency, that is an element of the intelligence community (as
that term is defined in section 3(4) of the National Security Act of 1947 (50 U.S.C.
401a(4)) [50 USCS § 3003]) shall not make any record available under this paragraph to—
(i) any government entity, other than a State, territory, commonwealth, or district of
the United States, or any subdivision thereof; or
(ii) a representative of a government entity described in clause (i).
(4)
(A)
(i) In order to carry out the provisions of this section, each agency shall promulgate
regulations, pursuant to notice and receipt of public comment, specifying the schedule
of fees applicable to the processing of requests under this section and establishing
procedures and guidelines for determining when such fees should be waived or
reduced. Such schedule shall conform to the guidelines which shall be promulgated,
pursuant to notice and receipt of public comment, by the Director of the Office of
Management and Budget and which shall provide for a uniform schedule of fees for all
agencies.
(ii) Such agency regulations shall provide that—
(I) fees shall be limited to reasonable standard charges for document search,
duplication, and review, when records are requested for commercial use;
(II) fees shall be limited to reasonable standard charges for document duplication
when records are not sought for commercial use and the request is made by an
educational or noncommercial scientific institution, whose purpose is scholarly or
scientific research; or a representative of the news media; and
(III) for any request not described in (I) or (II), fees shall be limited to reasonable
standard charges for document search and duplication.

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In this clause, the term “a representative of the news media” means any person or entity
that gathers information of potential interest to a segment of the public, uses its
editorial skills to turn the raw materials into a distinct work, and distributes that work to
an audience. In this clause, the term “news” means information that is about current
events or that would be of current interest to the public. Examples of news-media
entities are television or radio stations broadcasting to the public at large and publishers
of periodicals (but only if such entities qualify as disseminators of “news”) who make
their products available for purchase by or subscription by or free distribution to the
general public. These examples are not all-inclusive. Moreover, as methods of news
delivery evolve (for example, the adoption of the electronic dissemination of
newspapers through telecommunications services), such alternative media shall be
considered to be news-media entities. A freelance journalist shall be regarded as
working for a news-media entity if the journalist can demonstrate a solid basis for
expecting publication through that entity, whether or not the journalist is actually
employed by the entity. A publication contract would present a solid basis for such an
expectation; the Government may also consider the past publication record of the
requester in making such a determination.
(iii) Documents shall be furnished without any charge or at a charge reduced below the
fees established under clause (ii) if disclosure of the information is in the public interest
because it is likely to contribute significantly to public understanding of the operations
or activities of the government and is not primarily in the commercial interest of the
requester.
(iv) Fee schedules shall provide for the recovery of only the direct costs of search,
duplication, or review. Review costs shall include only the direct costs incurred during
the initial examination of a document for the purposes of determining whether the
documents must be disclosed under this section and for the purposes of withholding
any portions exempt from disclosure under this section. Review costs may not include
any costs incurred in resolving issues of law or policy that may be raised in the course
of processing a request under this section. No fee may be charged by any agency under
this section—
(I) if the costs of routine collection and processing of the fee are likely to equal or
exceed the amount of the fee; or
(II) for any request described in clause (ii)(II) or (III) of this subparagraph for the
first two hours of search time or for the first one hundred pages of duplication.
(v) No agency may require advance payment of any fee unless the requester has
previously failed to pay fees in a timely fashion, or the agency has determined that the
fee will exceed $250.
(vi) Nothing in this subparagraph shall supersede fees chargeable under a statute
specifically providing for setting the level of fees for particular types of records.
(vii) In any action by a requester regarding the waiver of fees under this section, the
court shall determine the matter de novo: Provided, That the court’s review of the
matter shall be limited to the record before the agency.
(viii)

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(I) Except as provided in subclause (II), an agency shall not assess any search fees
(or in the case of a requester described under clause (ii)(II) of this subparagraph,
duplication fees) under this subparagraph if the agency has failed to comply with
any time limit under paragraph (6).
(II)
(aa) If an agency has determined that unusual circumstances apply (as the term
is defined in paragraph (6)(B)) and the agency provided a timely written notice
to the requester in accordance with paragraph (6)(B), a failure described in
subclause (I) is excused for an additional 10 days. If the agency fails to comply
with the extended time limit, the agency may not assess any search fees (or in
the case of a requester described under clause (ii)(II) of this subparagraph,
duplication fees).
(bb) If an agency has determined that unusual circumstances apply and more
than 5,000 pages are necessary to respond to the request, an agency may charge
search fees (or in the case of a requester described under clause (ii)(II) of this
subparagraph, duplication fees) if the agency has provided a timely written
notice to the requester in accordance with paragraph (6)(B) and the agency has
discussed with the requester via written mail, electronic mail, or telephone (or
made not less than 3 good-faith attempts to do so) how the requester could
effectively limit the scope of the request in accordance with paragraph
(6)(B)(ii).
(cc) If a court has determined that exceptional circumstances exist (as that term
is defined in paragraph (6)(C)), a failure described in subclause (I) shall be
excused for the length of time provided by the court order.
(B) On complaint, the district court of the United States in the district in which the
complainant resides, or has his principal place of business, or in which the agency records
are situated, or in the District of Columbia, has jurisdiction to enjoin the agency from
withholding agency records and to order the production of any agency records improperly
withheld from the complainant. In such a case the court shall determine the matter de novo,
and may examine the contents of such agency records in camera to determine whether such
records or any part thereof shall be withheld under any of the exemptions set forth in
subsection (b) of this section, and the burden is on the agency to sustain its action. In
addition to any other matters to which a court accords substantial weight, a court shall
accord substantial weight to an affidavit of an agency concerning the agency’s
determination as to technical feasibility under paragraph (2)(C) and subsection (b) and
reproducibility under paragraph (3)(B).
(C) Notwithstanding any other provision of law, the defendant shall serve an answer or
otherwise plead to any complaint made under this subsection within thirty days after
service upon the defendant of the pleading in which such complaint is made, unless the
court otherwise directs for good cause shown.
(D) [Repealed]
(E)

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(i) The court may assess against the United States reasonable attorney fees and other
litigation costs reasonably incurred in any case under this section in which the
complainant has substantially prevailed.
(ii) For purposes of this subparagraph, a complainant has substantially prevailed if the
complainant has obtained relief through either—
(I) a judicial order, or an enforceable written agreement or consent decree; or
(II) a voluntary or unilateral change in position by the agency, if the complainant’s
claim is not insubstantial.
(F)
(i) Whenever the court orders the production of any agency records improperly
withheld from the complainant and assesses against the United States reasonable
attorney fees and other litigation costs, and the court additionally issues a written
finding that the circumstances surrounding the withholding raise questions whether
agency personnel acted arbitrarily or capriciously with respect to the withholding, the
Special Counsel shall promptly initiate a proceeding to determine whether disciplinary
action is warranted against the officer or employee who was primarily responsible for
the withholding. The Special Counsel, after investigation and consideration of the
evidence submitted, shall submit his findings and recommendations to the
administrative authority of the agency concerned and shall send copies of the findings
and recommendations to the officer or employee or his representative. The
administrative authority shall take the corrective action that the Special Counsel
recommends.
(ii) The Attorney General shall—
(I) notify the Special Counsel of each civil action described under the first sentence
of clause (i); and
(II) annually submit a report to Congress on the number of such civil actions in the
preceding year.
(iii) The Special Counsel shall annually submit a report to Congress on the actions
taken by the Special Counsel under clause (i).
(G) In the event of noncompliance with the order of the court, the district court may
punish for contempt the responsible employee, and in the case of a uniformed service, the
responsible member.
(5) Each agency having more than one member shall maintain and make available for public
inspection a record of the final votes of each member in every agency proceeding.
(6)
(A) Each agency, upon any request for records made under paragraph (1), (2), or (3) of
this subsection, shall—
(i) determine within 20 days (excepting Saturdays, Sundays, and legal public holidays)
after the receipt of any such request whether to comply with such request and shall
immediately notify the person making such request of—

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(I) such determination and the reasons therefor;
(II) the right of such person to seek assistance from the FOIA Public Liaison of the
agency; and
(III) in the case of an adverse determination—
(aa) the right of such person to appeal to the head of the agency, within a
period determined by the head of the agency that is not less than 90 days after
the date of such adverse determination; and
(bb) the right of such person to seek dispute resolution services from the FOIA
Public Liaison of the agency or the Office of Government Information Services;
and
(ii) make a determination with respect to any appeal within twenty days (excepting
Saturdays, Sundays, and legal public holidays) after the receipt of such appeal. If on
appeal the denial of the request for records is in whole or in part upheld, the agency
shall notify the person making such request of the provisions for judicial review of that
determination under paragraph (4) of this subsection.
The 20-day period under clause (i) shall commence on the date on which the request is first
received by the appropriate component of the agency, but in any event not later than ten
days after the request is first received by any component of the agency that is designated in
the agency’s regulations under this section to receive requests under this section. The 20day period shall not be tolled by the agency except—
(I) that the agency may make one request to the requester for information and toll the
20-day period while it is awaiting such information that it has reasonably requested
from the requester under this section; or
(II) if necessary to clarify with the requester issues regarding fee assessment. In either
case, the agency’s receipt of the requester’s response to the agency’s request for
information or clarification ends the tolling period.
(B)
(i) In unusual circumstances as specified in this subparagraph, the time limits
prescribed in either clause (i) or clause (ii) of subparagraph (A) may be extended by
written notice to the person making such request setting forth the unusual
circumstances for such extension and the date on which a determination is expected to
be dispatched. No such notice shall specify a date that would result in an extension for
more than ten working days, except as provided in clause (ii) of this subparagraph.
(ii) With respect to a request for which a written notice under clause (i) extends the
time limits prescribed under clause (i) of subparagraph (A), the agency shall notify the
person making the request if the request cannot be processed within the time limit
specified in that clause and shall provide the person an opportunity to limit the scope of
the request so that it may be processed within that time limit or an opportunity to
arrange with the agency an alternative time frame for processing the request or a
modified request. To aid the requester, each agency shall make available its FOIA
Public Liaison, who shall assist in the resolution of any disputes between the requester

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and the agency, and notify the requester of the right of the requester to seek dispute
resolution services from the Office of Government Information Services. Refusal by
the person to reasonably modify the request or arrange such an alternative time frame
shall be considered as a factor in determining whether exceptional circumstances exist
for purposes of subparagraph (C).
(iii) As used in this subparagraph, “unusual circumstances” means, but only to the
extent reasonably necessary to the proper processing of the particular requests—
(I) the need to search for and collect the requested records from field facilities or
other establishments that are separate from the office processing the request;
(II) the need to search for, collect, and appropriately examine a voluminous
amount of separate and distinct records which are demanded in a single request; or
(III) the need for consultation, which shall be conducted with all practicable speed,
with another agency having a substantial interest in the determination of the request
or among two or more components of the agency having substantial subject-matter
interest therein.
(iv) Each agency may promulgate regulations, pursuant to notice and receipt of public
comment, providing for the aggregation of certain requests by the same requestor, or by
a group of requestors acting in concert, if the agency reasonably believes that such
requests actually constitute a single request, which would otherwise satisfy the unusual
circumstances specified in this subparagraph, and the requests involve clearly related
matters. Multiple requests involving unrelated matters shall not be aggregated.
(C)
(i) Any person making a request to any agency for records under paragraph (1), (2), or
(3) of this subsection shall be deemed to have exhausted his administrative remedies
with respect to such request if the agency fails to comply with the applicable time limit
provisions of this paragraph. If the Government can show exceptional circumstances
exist and that the agency is exercising due diligence in responding to the request, the
court may retain jurisdiction and allow the agency additional time to complete its
review of the records. Upon any determination by an agency to comply with a request
for records, the records shall be made promptly available to such person making such
request. Any notification of denial of any request for records under this subsection shall
set forth the names and titles or positions of each person responsible for the denial of
such request.
(ii) For purposes of this subparagraph, the term “exceptional circumstances” does not
include a delay that results from a predictable agency workload of requests under this
section, unless the agency demonstrates reasonable progress in reducing its backlog of
pending requests.
(iii) Refusal by a person to reasonably modify the scope of a request or arrange an
alternative time frame for processing a request (or a modified request) under clause (ii)
after being given an opportunity to do so by the agency to whom the person made the
request shall be considered as a factor in determining whether exceptional
circumstances exist for purposes of this subparagraph.

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(D)
(i) Each agency may promulgate regulations, pursuant to notice and receipt of public
comment, providing for multitrack processing of requests for records based on the
amount of work or time (or both) involved in processing requests.
(ii) Regulations under this subparagraph may provide a person making a request that
does not qualify for the fastest multitrack processing an opportunity to limit the scope
of the request in order to qualify for faster processing.
(iii) This subparagraph shall not be considered to affect the requirement under
subparagraph (C) to exercise due diligence.
(E)
(i) Each agency shall promulgate regulations, pursuant to notice and receipt of public
comment, providing for expedited processing of requests for records—
(I) in cases in which the person requesting the records demonstrates a compelling
need; and
(II) in other cases determined by the agency.
(ii) Notwithstanding clause (i), regulations under this subparagraph must ensure—
(I) that a determination of whether to provide expedited processing shall be made,
and notice of the determination shall be provided to the person making the request,
within 10 days after the date of the request; and
(II) expeditious consideration of administrative appeals of such determinations of
whether to provide expedited processing.
(iii) An agency shall process as soon as practicable any request for records to which
the agency has granted expedited processing under this subparagraph. Agency action to
deny or affirm denial of a request for expedited processing pursuant to this
subparagraph, and failure by an agency to respond in a timely manner to such a request
shall be subject to judicial review under paragraph (4), except that the judicial review
shall be based on the record before the agency at the time of the determination.
(iv) A district court of the United States shall not have jurisdiction to review an agency
denial of expedited processing of a request for records after the agency has provided a
complete response to the request.
(v) For purposes of this subparagraph, the term “compelling need” means—
(I) that a failure to obtain requested records on an expedited basis under this
paragraph could reasonably be expected to pose an imminent threat to the life or
physical safety of an individual; or
(II) with respect to a request made by a person primarily engaged in disseminating
information, urgency to inform the public concerning actual or alleged Federal
Government activity.

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(vi) A demonstration of a compelling need by a person making a request for expedited
processing shall be made by a statement certified by such person to be true and correct
to the best of such person’s knowledge and belief.
(F) In denying a request for records, in whole or in part, an agency shall make a
reasonable effort to estimate the volume of any requested matter the provision of which is
denied, and shall provide any such estimate to the person making the request, unless
providing such estimate would harm an interest protected by the exemption in subsection
(b) pursuant to which the denial is made.
(7) Each agency shall—
(A) establish a system to assign an individualized tracking number for each request
received that will take longer than ten days to process and provide to each person making a
request the tracking number assigned to the request; and
(B) establish a telephone line or Internet service that provides information about the status
of a request to the person making the request using the assigned tracking number,
including—
(i) the date on which the agency originally received the request; and
(ii) an estimated date on which the agency will complete action on the request.
(8)
(A) An agency shall—
(i) withhold information under this section only if—
(I) the agency reasonably foresees that disclosure would harm an interest protected
by an exemption described in subsection (b); or
(II) disclosure is prohibited by law; and
(ii)
(I) consider whether partial disclosure of information is possible whenever the
agency determines that a full disclosure of a requested record is not possible; and
(II) take reasonable steps necessary to segregate and release nonexempt
information; and
(B) Nothing in this paragraph requires disclosure of information that is otherwise
prohibited from disclosure by law, or otherwise exempted from disclosure under subsection
(b)(3).
(b) This section does not apply to matters that are—
(1)
(A) specifically authorized under criteria established by an Executive order to be kept
secret in the interest of national defense or foreign policy and (B) are in fact properly
classified pursuant to such Executive order;
(2) related solely to the internal personnel rules and practices of an agency;

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(3) specifically exempted from disclosure by statute (other than section 552b of this title [5
USCS § 552b]), if that statute—
(A)
(i) requires that the matters be withheld from the public in such a manner as to leave
no discretion on the issue; or
(ii) establishes particular criteria for withholding or refers to particular types of matters
to be withheld; and
(B) if enacted after the date of enactment of the OPEN FOIA Act of 2009 [enacted Oct.
28, 2009], specifically cites to this paragraph.
(4) trade secrets and commercial or financial information obtained from a person and
privileged or confidential;
(5) inter-agency or intra-agency memorandums or letters that would not be available by law to
a party other than an agency in litigation with the agency, provided that the deliberative
process privilege shall not apply to records created 25 years or more before the date on which
the records were requested;
(6) personnel and medical files and similar files the disclosure of which would constitute a
clearly unwarranted invasion of personal privacy;
(7) records or information compiled for law enforcement purposes, but only to the extent that
the production of such law enforcement records or information (A) could reasonably be
expected to interfere with enforcement proceedings, (B) would deprive a person of a right to a
fair trial or an impartial adjudication, (C) could reasonably be expected to constitute an
unwarranted invasion of personal privacy, (D) could reasonably be expected to disclose the
identity of a confidential source, including a State, local, or foreign agency or authority or any
private institution which furnished information on a confidential basis, and, in the case of a
record or information compiled by criminal law enforcement authority in the course of a
criminal investigation or by an agency conducting a lawful national security intelligence
investigation, information furnished by a confidential source, (E) would disclose techniques
and procedures for law enforcement investigations or prosecutions, or would disclose
guidelines for law enforcement investigations or prosecutions if such disclosure could
reasonably be expected to risk circumvention of the law, or (F) could reasonably be expected
to endanger the life or physical safety of any individual;
(8) contained in or related to examination, operating, or condition reports prepared by, on
behalf of, or for the use of an agency responsible for the regulation or supervision of financial
institutions; or
(9) geological or geophysical information and data, including maps, concerning wells.
Any reasonably segregable portion of a record shall be provided to any person requesting such
record after deletion of the portions which are exempt under this subsection. The amount of
information deleted, and the exemption under which the deletion is made, shall be indicated on the
released portion of the record, unless including that indication would harm an interest protected by
the exemption in this subsection under which the deletion is made. If technically feasible, the

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amount of the information deleted, and the exemption under which the deletion is made, shall be
indicated at the place in the record where such deletion is made.
(c)
(1) Whenever a request is made which involves access to records described in subsection
(b)(7)(A) and—
(A) the investigation or proceeding involves a possible violation of criminal law; and
(B) there is reason to believe that (i) the subject of the investigation or proceeding is not
aware of its pendency, and (ii) disclosure of the existence of the records could reasonably
be expected to interfere with enforcement proceedings,
the agency may, during only such time as that circumstance continues, treat the records as not
subject to the requirements of this section.
(2) Whenever informant records maintained by a criminal law enforcement agency under an
informant’s name or personal identifier are requested by a third party according to the
informant’s name or personal identifier, the agency may treat the records as not subject to the
requirements of this section unless the informant’s status as an informant has been officially
confirmed.
(3) Whenever a request is made which involves access to records maintained by the Federal
Bureau of Investigation pertaining to foreign intelligence or counterintelligence, or
international terrorism, and the existence of the records is classified information as provided in
subsection (b)(1), the Bureau may, as long as the existence of the records remains classified
information, treat the records as not subject to the requirements of this section.
(d) This section does not authorize withholding of information or limit the availability of records
to the public, except as specifically stated in this section. This section is not authority to withhold
information from Congress.
(e)
(1) On or before February 1 of each year, each agency shall submit to the Attorney General of
the United States and to the Director of the Office of Government Information Services a
report which shall cover the preceding fiscal year and which shall include—
(A) the number of determinations made by the agency not to comply with requests for
records made to such agency under subsection (a) and the reasons for each such
determination;
(B)
(i) the number of appeals made by persons under subsection (a)(6), the result of such
appeals, and the reason for the action upon each appeal that results in a denial of
information; and
(ii) a complete list of all statutes that the agency relies upon to authorize the agency to
withhold information under subsection (b)(3), the number of occasions on which each
statute was relied upon, a description of whether a court has upheld the decision of the
agency to withhold information under each such statute, and a concise description of
the scope of any information withheld;

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(C) the number of requests for records pending before the agency as of September 30 of
the preceding year, and the median and average number of days that such requests had
been pending before the agency as of that date;
(D) the number of requests for records received by the agency and the number of requests
which the agency processed;
(E) the median number of days taken by the agency to process different types of requests,
based on the date on which the requests were received by the agency;
(F) the average number of days for the agency to respond to a request beginning on the
date on which the request was received by the agency, the median number of days for the
agency to respond to such requests, and the range in number of days for the agency to
respond to such requests;
(G) based on the number of business days that have elapsed since each request was
originally received by the agency—
(i) the number of requests for records to which the agency has responded with a
determination within a period up to and including 20 days, and in 20-day increments up
to and including 200 days;
(ii) the number of requests for records to which the agency has responded with a
determination within a period greater than 200 days and less than 301 days;
(iii) the number of requests for records to which the agency has responded with a
determination within a period greater than 300 days and less than 401 days; and
(iv) the number of requests for records to which the agency has responded with a
determination within a period greater than 400 days;
(H) the average number of days for the agency to provide the granted information
beginning on the date on which the request was originally filed, the median number of days
for the agency to provide the granted information, and the range in number of days for the
agency to provide the granted information;
(I) the median and average number of days for the agency to respond to administrative
appeals based on the date on which the appeals originally were received by the agency, the
highest number of business days taken by the agency to respond to an administrative
appeal, and the lowest number of business days taken by the agency to respond to an
administrative appeal;
(J) data on the 10 active requests with the earliest filing dates pending at each agency,
including the amount of time that has elapsed since each request was originally received by
the agency;
(K) data on the 10 active administrative appeals with the earliest filing dates pending
before the agency as of September 30 of the preceding year, including the number of
business days that have elapsed since the requests were originally received by the agency;
(L) the number of expedited review requests that are granted and denied, the average and
median number of days for adjudicating expedited review requests, and the number
adjudicated within the required 10 days;

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(M) the number of fee waiver requests that are granted and denied, and the average and
median number of days for adjudicating fee waiver determinations;
(N) the total amount of fees collected by the agency for processing requests;
(O) the number of full-time staff of the agency devoted to processing requests for records
under this section, and the total amount expended by the agency for processing such
requests;
(P) the number of times the agency denied a request for records under subsection (c); and
(Q) the number of records that were made available for public inspection in an electronic
format under subsection (a)(2).
(2) Information in each report submitted under paragraph (1) shall be expressed in terms of
each principal component of the agency and for the agency overall.
(3) Each agency shall make each such report available for public inspection in an electronic
format. In addition, each agency shall make the raw statistical data used in each report
available in a timely manner for public inspection in an electronic format, which shall be made
available—
(A) without charge, license, or registration requirement;
(B) in an aggregated, searchable format; and
(C) in a format that may be downloaded in bulk.
(4) The Attorney General of the United States shall make each report which has been made
available by electronic means available at a single electronic access point. The Attorney
General of the United States shall notify the Chairman and ranking minority member of the
Committee on Oversight and Government Reform of the House of Representatives and the
Chairman and ranking minority member of the Committees on Homeland Security and
Governmental Affairs and the Judiciary of the Senate, no later than March 1 of the year in
which each such report is issued, that such reports are available by electronic means.
(5) The Attorney General of the United States, in consultation with the Director of the Office
of Management and Budget, shall develop reporting and performance guidelines in connection
with reports required by this subsection by October 1, 1997, and may establish additional
requirements for such reports as the Attorney General determines may be useful.
(6)
(A) The Attorney General of the United States shall submit to the Committee on Oversight
and Government Reform of the House of Representatives, the Committee on the Judiciary
of the Senate, and the President a report on or before March 1 of each calendar year, which
shall include for the prior calendar year—
(i) a listing of the number of cases arising under this section;
(ii) a listing of—
(I) each subsection, and any exemption, if applicable, involved in each case arising
under this section;
(II) the disposition of each case arising under this section; and

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(III) the cost, fees, and penalties assessed under subparagraphs (E), (F), and (G) of
subsection (a)(4); and
(iii) a description of the efforts undertaken by the Department of Justice to encourage
agency compliance with this section.
(B) The Attorney General of the United States shall make—
(i) each report submitted under subparagraph (A) available for public inspection in an
electronic format; and
(ii) the raw statistical data used in each report submitted under subparagraph (A)
available for public inspection in an electronic format, which shall be made available—
(I) without charge, license, or registration requirement;
(II) in an aggregated, searchable format; and
(III) in a format that may be downloaded in bulk.
(f) For purposes of this section, the term—
(1) “agency” as defined in section 551(1) of this title [5 USCS § 551(1)] includes any
executive department, military department, Government corporation, Government controlled
corporation, or other establishment in the executive branch of the Government (including the
Executive Office of the President), or any independent regulatory agency; and
(2) “record” and any other term used in this section in reference to information includes—
(A) any information that would be an agency record subject to the requirements of this
section when maintained by an agency in any format, including an electronic format; and
(B) any information described under subparagraph (A) that is maintained for an agency by
an entity under Government contract, for the purposes of records management.
(g) The head of each agency shall prepare and make available for public inspection in an
electronic format, reference material or a guide for requesting records or information from the
agency, subject to the exemptions in subsection (b), including—
(1) an index of all major information systems of the agency;
(2) a description of major information and record locator systems maintained by the agency;
and
(3) a handbook for obtaining various types and categories of public information from the
agency pursuant to chapter 35 of title 44 [44 USCS §§ 3501 et seq.], and under this section.
(h)
(1) There is established the Office of Government Information Services within the National
Archives and Records Administration. The head of the Office shall be the Director of the
Office of Government Information Services.
(2) The Office of Government Information Services shall—
(A) review policies and procedures of administrative agencies under this section;
(B) review compliance with this section by administrative agencies; and

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(C) identify procedures and methods for improving compliance under this section.
(3) The Office of Government Information Services shall offer mediation services to resolve
disputes between persons making requests under this section and administrative agencies as a
nonexclusive alternative to litigation and may issue advisory opinions at the discretion of the
Office or upon request of any party to a dispute.
(4)
(A) Not less frequently than annually, the Director of the Office of Government
Information Services shall submit to the Committee on Oversight and Government Reform
of the House of Representatives, the Committee on the Judiciary of the Senate, and the
President—
(i) a report on the findings of the information reviewed and identified under paragraph
(2);
(ii) a summary of the activities of the Office of Government Information Services
under paragraph (3), including—
(I) any advisory opinions issued; and
(II) the number of times each agency engaged in dispute resolution with the
assistance of the Office of Government Information Services or the FOIA Public
Liaison; and
(iii) legislative and regulatory recommendations, if any, to improve the administration
of this section.
(B) The Director of the Office of Government Information Services shall make each report
submitted under subparagraph (A) available for public inspection in an electronic format.
(C) The Director of the Office of Government Information Services shall not be required
to obtain the prior approval, comment, or review of any officer or agency of the United
States, including the Department of Justice, the Archivist of the United States, or the Office
of Management and Budget before submitting to Congress, or any committee or
subcommittee thereof, any reports, recommendations, testimony, or comments, if such
submissions include a statement indicating that the views expressed therein are those of the
Director and do not necessarily represent the views of the President.
(5) The Director of the Office of Government Information Services may directly submit
additional information to Congress and the President as the Director determines to be
appropriate.
(6) Not less frequently than annually, the Office of Government Information Services shall
conduct a meeting that is open to the public on the review and reports by the Office and shall
allow interested persons to appear and present oral or written statements at the meeting.
(i) The Government Accountability Office shall conduct audits of administrative agencies on the
implementation of this section and issue reports detailing the results of such audits.
(j)
(1) Each agency shall designate a Chief FOIA Officer who shall be a senior official of such
agency (at the Assistant Secretary or equivalent level).

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(2) The Chief FOIA Officer of each agency shall, subject to the authority of the head of the
agency—
(A) have agency-wide responsibility for efficient and appropriate compliance with this
section;
(B) monitor implementation of this section throughout the agency and keep the head of the
agency, the chief legal officer of the agency, and the Attorney General appropriately
informed of the agency’s performance in implementing this section;
(C) recommend to the head of the agency such adjustments to agency practices, policies,
personnel, and funding as may be necessary to improve its implementation of this section;
(D) review and report to the Attorney General, through the head of the agency, at such
times and in such formats as the Attorney General may direct, on the agency’s performance
in implementing this section;
(E) facilitate public understanding of the purposes of the statutory exemptions of this
section by including concise descriptions of the exemptions in both the agency’s handbook
issued under subsection (g), and the agency’s annual report on this section, and by
providing an overview, where appropriate, of certain general categories of agency records
to which those exemptions apply;
(F) offer training to agency staff regarding their responsibilities under this section;
(G) serve as the primary agency liaison with the Office of Government Information
Services and the Office of Information Policy; and
(H) designate 1 or more FOIA Public Liaisons.
(3) The Chief FOIA Officer of each agency shall review, not less frequently than annually, all
aspects of the administration of this section by the agency to ensure compliance with the
requirements of this section, including—
(A) agency regulations;
(B) disclosure of records required under paragraphs (2) and (8) of subsection (a);
(C) assessment of fees and determination of eligibility for fee waivers;
(D) the timely processing of requests for information under this section;
(E) the use of exemptions under subsection (b); and
(F) dispute resolution services with the assistance of the Office of Government
Information Services or the FOIA Public Liaison.
(k)
(1) There is established in the executive branch the Chief FOIA Officers Council (referred to
in this subsection as the “Council”).
(2) The Council shall be comprised of the following members:
(A) The Deputy Director for Management of the Office of Management and Budget.
(B) The Director of the Office of Information Policy at the Department of Justice.

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(C) The Director of the Office of Government Information Services.
(D) The Chief FOIA Officer of each agency.
(E) Any other officer or employee of the United States as designated by the Co-Chairs.
(3) The Director of the Office of Information Policy at the Department of Justice and the
Director of the Office of Government Information Services shall be the Co-Chairs of the
Council.
(4) The Administrator of General Services shall provide administrative and other support for
the Council.
(5)
(A) The duties of the Council shall include the following:
(i) Develop recommendations for increasing compliance and efficiency under this
section.
(ii) Disseminate information about agency experiences, ideas, best practices, and
innovative approaches related to this section.
(iii) Identify, develop, and coordinate initiatives to increase transparency and
compliance with this section.
(iv) Promote the development and use of common performance measures for agency
compliance with this section.
(B) In performing the duties described in subparagraph (A), the Council shall consult on a
regular basis with members of the public who make requests under this section.
(6)
(A) The Council shall meet regularly and such meetings shall be open to the public unless
the Council determines to close the meeting for reasons of national security or to discuss
information exempt under subsection (b).
(B) Not less frequently than annually, the Council shall hold a meeting that shall be open
to the public and permit interested persons to appear and present oral and written
statements to the Council.
(C) Not later than 10 business days before a meeting of the Council, notice of such
meeting shall be published in the Federal Register.
(D) Except as provided in subsection (b), the records, reports, transcripts, minutes,
appendices, working papers, drafts, studies, agenda, or other documents that were made
available to or prepared for or by the Council shall be made publicly available.
(E) Detailed minutes of each meeting of the Council shall be kept and shall contain a
record of the persons present, a complete and accurate description of matters discussed and
conclusions reached, and copies of all reports received, issued, or approved by the Council.
The minutes shall be redacted as necessary and made publicly available.
(l) FOIA Public Liaisons shall report to the agency Chief FOIA Officer and shall serve as
supervisory officials to whom a requester under this section can raise concerns about the service
the requester has received from the FOIA Requester Center, following an initial response from the

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FOIA Requester Center Staff. FOIA Public Liaisons shall be responsible for assisting in reducing
delays, increasing transparency and understanding of the status of requests, and assisting in the
resolution of disputes.
(m)
(1) The Director of the Office of Management and Budget, in consultation with the Attorney
General, shall ensure the operation of a consolidated online request portal that allows a
member of the public to submit a request for records under subsection (a) to any agency from a
single website. The portal may include any additional tools the Director of the Office of
Management and Budget finds will improve the implementation of this section.
(2) This subsection shall not be construed to alter the power of any other agency to create or
maintain an independent online portal for the submission of a request for records under this
section. The Director of the Office of Management and Budget shall establish standards for
interoperability between the portal required under paragraph (1) and other request processing
software used by agencies subject to this section.

History

HISTORY:
Sept. 6, 1966, P.L. 89-554, § 1, 80 Stat. 383; June 5, 1967, P. L. 90-23 § 1, 81 Stat. 54; Nov. 21, 1974, P.
L. 93-502, §§ 1–3, 88 Stat. 1561, 1563, 1564; Sept. 13, 1976, P. L. 94-409, § 5(b), 90 Stat. 1247; Oct. 13,
1978, P. L. 95-454, Title IX, § 906(a)(10), 92 Stat. 1225; Nov. 8, 1984, P. L. 98-620, Title IV, Subtitle A,
§ 402(2), 98 Stat. 3357; Oct. 27, 1986, P. L. 99-570, Title I, Subtitle N, §§ 1802, 1803, 100 Stat. 3207-48,
3207-49; Oct. 2, 1996, P. L. 104-231, §§ 3–11, 110 Stat. 3049; Nov. 27, 2002, P. L. 107-306, Title III,
Subtitle B, § 312, 116 Stat. 2390; Dec. 31, 2007, P. L. 110-175, §§ 3, 4(a), 5, 6(a)(1), (b)(1), 7(a), 8–10(a),
12, 121 Stat. 2525, 2526, 2527, 2530; Oct. 28, 2009, P. L. 111-83, Title V, § 564(b), 123 Stat. 2184; June
30, 2016, P. L. 114-185, § 2, 130 Stat. 538.
United States Code Service
Copyright © 2022 All rights reserved.

End of Document

5 USCS § 552, Part 2 of 4
Current through Public Law 117-166, approved August 5, 2022.
United States Code Service > TITLE 5. GOVERNMENT ORGANIZATION AND EMPLOYEES (§§ 101 —
11001) > Part I. The Agencies Generally (Chs. 1 — 9) > CHAPTER 5. Administrative Procedure (Subchs. I —
V) > Subchapter II. Administrative Procedure (§§ 551 — 559)

§ 552. Public information; agency rules, opinions, orders, records, and proceedings
(a) Each agency shall make available to the public information as follows:
(1) Each agency shall separately state and currently publish in the Federal Register for the
guidance of the public—
(A) descriptions of its central and field organization and the established places at which,
the employees (and in the case of a uniformed service, the members) from whom, and the
methods whereby, the public may obtain information, make submittals or requests, or
obtain decisions;
(B) statements of the general course and method by which its functions are channeled and
determined, including the nature and requirements of all formal and informal procedures
available;
(C) rules of procedure, descriptions of forms available or the places at which forms may
be obtained, and instructions as to the scope and contents of all papers, reports, or
examinations;
(D) substantive rules of general applicability adopted as authorized by law, and statements
of general policy or interpretations of general applicability formulated and adopted by the
agency; and
(E) each amendment, revision, or repeal of the foregoing.
Except to the extent that a person has actual and timely notice of the terms thereof, a person
may not in any manner be required to resort to, or be adversely affected by, a matter required
to be published in the Federal Register and not so published. For the purpose of this paragraph,
matter reasonably available to the class of persons affected thereby is deemed published in the
Federal Register when incorporated by reference therein with the approval of the Director of
the Federal Register.
(2) Each agency, in accordance with published rules, shall make available for public
inspection in an electronic format—
(A) final opinions, including concurring and dissenting opinions, as well as orders, made
in the adjudication of cases;
(B) those statements of policy and interpretations which have been adopted by the agency
and are not published in the Federal Register;

Page 2 of 19
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(C) administrative staff manuals and instructions to staff that affect a member of the
public;
(D) copies of all records, regardless of form or format—
(i) that have been released to any person under paragraph (3); and
(ii)
(I) that because of the nature of their subject matter, the agency determines have
become or are likely to become the subject of subsequent requests for substantially
the same records; or
(II) that have been requested 3 or more times; and
(E) a general index of the records referred to under subparagraph (D);
unless the materials are promptly published and copies offered for sale. For records created on
or after November 1, 1996, within one year after such date, each agency shall make such
records available, including by computer telecommunications or, if computer
telecommunications means have not been established by the agency, by other electronic
means. To the extent required to prevent a clearly unwarranted invasion of personal privacy, an
agency may delete identifying details when it makes available or publishes an opinion,
statement of policy, interpretation, staff manual, instruction, or copies of records referred to in
subparagraph (D). However, in each case the justification for the deletion shall be explained
fully in writing, and the extent of such deletion shall be indicated on the portion of the record
which is made available or published, unless including that indication would harm an interest
protected by the exemption in subsection (b) under which the deletion is made. If technically
feasible, the extent of the deletion shall be indicated at the place in the record where the
deletion was made. Each agency shall also maintain and make available for public inspection
in an electronic format current indexes providing identifying information for the public as to
any matter issued, adopted, or promulgated after July 4, 1967, and required by this paragraph
to be made available or published. Each agency shall make the index referred to in
subparagraph (E) available by computer telecommunications by December 31, 1999. Each
agency shall promptly publish, quarterly or more frequently, and distribute (by sale or
otherwise) copies of each index or supplements thereto unless it determines by order published
in the Federal Register that the publication would be unnecessary and impracticable, in which
case the agency shall nonetheless provide copies of such index on request at a cost not to
exceed the direct cost of duplication. A final order, opinion, statement of policy,
interpretation, or staff manual or instruction that affects a member of the public may be relied
on, used, or cited as precedent by an agency against a party other than an agency only if—
(i) it has been indexed and either made available or published as provided by this
paragraph; or
(ii) the party has actual and timely notice of the terms thereof.
(3)
(A) Except with respect to the records made available under paragraphs (1) and (2) of this
subsection, and except as provided in subparagraph (E), each agency, upon any request for
records which (i) reasonably describes such records and (ii) is made in accordance with

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published rules stating the time, place, fees (if any), and procedures to be followed, shall
make the records promptly available to any person.
(B) In making any record available to a person under this paragraph, an agency shall
provide the record in any form or format requested by the person if the record is readily
reproducible by the agency in that form or format. Each agency shall make reasonable
efforts to maintain its records in forms or formats that are reproducible for purposes of this
section.
(C) In responding under this paragraph to a request for records, an agency shall make
reasonable efforts to search for the records in electronic form or format, except when such
efforts would significantly interfere with the operation of the agency’s automated
information system.
(D) For purposes of this paragraph, the term “search” means to review, manually or by
automated means, agency records for the purpose of locating those records which are
responsive to a request.
(E) An agency, or part of an agency, that is an element of the intelligence community (as
that term is defined in section 3(4) of the National Security Act of 1947 (50 U.S.C.
401a(4)) [50 USCS § 3003]) shall not make any record available under this paragraph to—
(i) any government entity, other than a State, territory, commonwealth, or district of
the United States, or any subdivision thereof; or
(ii) a representative of a government entity described in clause (i).
(4)
(A)
(i) In order to carry out the provisions of this section, each agency shall promulgate
regulations, pursuant to notice and receipt of public comment, specifying the schedule
of fees applicable to the processing of requests under this section and establishing
procedures and guidelines for determining when such fees should be waived or
reduced. Such schedule shall conform to the guidelines which shall be promulgated,
pursuant to notice and receipt of public comment, by the Director of the Office of
Management and Budget and which shall provide for a uniform schedule of fees for all
agencies.
(ii) Such agency regulations shall provide that—
(I) fees shall be limited to reasonable standard charges for document search,
duplication, and review, when records are requested for commercial use;
(II) fees shall be limited to reasonable standard charges for document duplication
when records are not sought for commercial use and the request is made by an
educational or noncommercial scientific institution, whose purpose is scholarly or
scientific research; or a representative of the news media; and
(III) for any request not described in (I) or (II), fees shall be limited to reasonable
standard charges for document search and duplication.

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In this clause, the term “a representative of the news media” means any person or entity
that gathers information of potential interest to a segment of the public, uses its
editorial skills to turn the raw materials into a distinct work, and distributes that work to
an audience. In this clause, the term “news” means information that is about current
events or that would be of current interest to the public. Examples of news-media
entities are television or radio stations broadcasting to the public at large and publishers
of periodicals (but only if such entities qualify as disseminators of “news”) who make
their products available for purchase by or subscription by or free distribution to the
general public. These examples are not all-inclusive. Moreover, as methods of news
delivery evolve (for example, the adoption of the electronic dissemination of
newspapers through telecommunications services), such alternative media shall be
considered to be news-media entities. A freelance journalist shall be regarded as
working for a news-media entity if the journalist can demonstrate a solid basis for
expecting publication through that entity, whether or not the journalist is actually
employed by the entity. A publication contract would present a solid basis for such an
expectation; the Government may also consider the past publication record of the
requester in making such a determination.
(iii) Documents shall be furnished without any charge or at a charge reduced below the
fees established under clause (ii) if disclosure of the information is in the public interest
because it is likely to contribute significantly to public understanding of the operations
or activities of the government and is not primarily in the commercial interest of the
requester.
(iv) Fee schedules shall provide for the recovery of only the direct costs of search,
duplication, or review. Review costs shall include only the direct costs incurred during
the initial examination of a document for the purposes of determining whether the
documents must be disclosed under this section and for the purposes of withholding
any portions exempt from disclosure under this section. Review costs may not include
any costs incurred in resolving issues of law or policy that may be raised in the course
of processing a request under this section. No fee may be charged by any agency under
this section—
(I) if the costs of routine collection and processing of the fee are likely to equal or
exceed the amount of the fee; or
(II) for any request described in clause (ii)(II) or (III) of this subparagraph for the
first two hours of search time or for the first one hundred pages of duplication.
(v) No agency may require advance payment of any fee unless the requester has
previously failed to pay fees in a timely fashion, or the agency has determined that the
fee will exceed $250.
(vi) Nothing in this subparagraph shall supersede fees chargeable under a statute
specifically providing for setting the level of fees for particular types of records.
(vii) In any action by a requester regarding the waiver of fees under this section, the
court shall determine the matter de novo: Provided, That the court’s review of the
matter shall be limited to the record before the agency.
(viii)

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(I) Except as provided in subclause (II), an agency shall not assess any search fees
(or in the case of a requester described under clause (ii)(II) of this subparagraph,
duplication fees) under this subparagraph if the agency has failed to comply with
any time limit under paragraph (6).
(II)
(aa) If an agency has determined that unusual circumstances apply (as the term
is defined in paragraph (6)(B)) and the agency provided a timely written notice
to the requester in accordance with paragraph (6)(B), a failure described in
subclause (I) is excused for an additional 10 days. If the agency fails to comply
with the extended time limit, the agency may not assess any search fees (or in
the case of a requester described under clause (ii)(II) of this subparagraph,
duplication fees).
(bb) If an agency has determined that unusual circumstances apply and more
than 5,000 pages are necessary to respond to the request, an agency may charge
search fees (or in the case of a requester described under clause (ii)(II) of this
subparagraph, duplication fees) if the agency has provided a timely written
notice to the requester in accordance with paragraph (6)(B) and the agency has
discussed with the requester via written mail, electronic mail, or telephone (or
made not less than 3 good-faith attempts to do so) how the requester could
effectively limit the scope of the request in accordance with paragraph
(6)(B)(ii).
(cc) If a court has determined that exceptional circumstances exist (as that term
is defined in paragraph (6)(C)), a failure described in subclause (I) shall be
excused for the length of time provided by the court order.
(B) On complaint, the district court of the United States in the district in which the
complainant resides, or has his principal place of business, or in which the agency records
are situated, or in the District of Columbia, has jurisdiction to enjoin the agency from
withholding agency records and to order the production of any agency records improperly
withheld from the complainant. In such a case the court shall determine the matter de novo,
and may examine the contents of such agency records in camera to determine whether such
records or any part thereof shall be withheld under any of the exemptions set forth in
subsection (b) of this section, and the burden is on the agency to sustain its action. In
addition to any other matters to which a court accords substantial weight, a court shall
accord substantial weight to an affidavit of an agency concerning the agency’s
determination as to technical feasibility under paragraph (2)(C) and subsection (b) and
reproducibility under paragraph (3)(B).
(C) Notwithstanding any other provision of law, the defendant shall serve an answer or
otherwise plead to any complaint made under this subsection within thirty days after
service upon the defendant of the pleading in which such complaint is made, unless the
court otherwise directs for good cause shown.
(D) [Repealed]
(E)

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(i) The court may assess against the United States reasonable attorney fees and other
litigation costs reasonably incurred in any case under this section in which the
complainant has substantially prevailed.
(ii) For purposes of this subparagraph, a complainant has substantially prevailed if the
complainant has obtained relief through either—
(I) a judicial order, or an enforceable written agreement or consent decree; or
(II) a voluntary or unilateral change in position by the agency, if the complainant’s
claim is not insubstantial.
(F)
(i) Whenever the court orders the production of any agency records improperly
withheld from the complainant and assesses against the United States reasonable
attorney fees and other litigation costs, and the court additionally issues a written
finding that the circumstances surrounding the withholding raise questions whether
agency personnel acted arbitrarily or capriciously with respect to the withholding, the
Special Counsel shall promptly initiate a proceeding to determine whether disciplinary
action is warranted against the officer or employee who was primarily responsible for
the withholding. The Special Counsel, after investigation and consideration of the
evidence submitted, shall submit his findings and recommendations to the
administrative authority of the agency concerned and shall send copies of the findings
and recommendations to the officer or employee or his representative. The
administrative authority shall take the corrective action that the Special Counsel
recommends.
(ii) The Attorney General shall—
(I) notify the Special Counsel of each civil action described under the first sentence
of clause (i); and
(II) annually submit a report to Congress on the number of such civil actions in the
preceding year.
(iii) The Special Counsel shall annually submit a report to Congress on the actions
taken by the Special Counsel under clause (i).
(G) In the event of noncompliance with the order of the court, the district court may
punish for contempt the responsible employee, and in the case of a uniformed service, the
responsible member.
(5) Each agency having more than one member shall maintain and make available for public
inspection a record of the final votes of each member in every agency proceeding.
(6)
(A) Each agency, upon any request for records made under paragraph (1), (2), or (3) of
this subsection, shall—
(i) determine within 20 days (excepting Saturdays, Sundays, and legal public holidays)
after the receipt of any such request whether to comply with such request and shall
immediately notify the person making such request of—

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(I) such determination and the reasons therefor;
(II) the right of such person to seek assistance from the FOIA Public Liaison of the
agency; and
(III) in the case of an adverse determination—
(aa) the right of such person to appeal to the head of the agency, within a
period determined by the head of the agency that is not less than 90 days after
the date of such adverse determination; and
(bb) the right of such person to seek dispute resolution services from the FOIA
Public Liaison of the agency or the Office of Government Information Services;
and
(ii) make a determination with respect to any appeal within twenty days (excepting
Saturdays, Sundays, and legal public holidays) after the receipt of such appeal. If on
appeal the denial of the request for records is in whole or in part upheld, the agency
shall notify the person making such request of the provisions for judicial review of that
determination under paragraph (4) of this subsection.
The 20-day period under clause (i) shall commence on the date on which the request is first
received by the appropriate component of the agency, but in any event not later than ten
days after the request is first received by any component of the agency that is designated in
the agency’s regulations under this section to receive requests under this section. The 20day period shall not be tolled by the agency except—
(I) that the agency may make one request to the requester for information and toll the
20-day period while it is awaiting such information that it has reasonably requested
from the requester under this section; or
(II) if necessary to clarify with the requester issues regarding fee assessment. In either
case, the agency’s receipt of the requester’s response to the agency’s request for
information or clarification ends the tolling period.
(B)
(i) In unusual circumstances as specified in this subparagraph, the time limits
prescribed in either clause (i) or clause (ii) of subparagraph (A) may be extended by
written notice to the person making such request setting forth the unusual
circumstances for such extension and the date on which a determination is expected to
be dispatched. No such notice shall specify a date that would result in an extension for
more than ten working days, except as provided in clause (ii) of this subparagraph.
(ii) With respect to a request for which a written notice under clause (i) extends the
time limits prescribed under clause (i) of subparagraph (A), the agency shall notify the
person making the request if the request cannot be processed within the time limit
specified in that clause and shall provide the person an opportunity to limit the scope of
the request so that it may be processed within that time limit or an opportunity to
arrange with the agency an alternative time frame for processing the request or a
modified request. To aid the requester, each agency shall make available its FOIA
Public Liaison, who shall assist in the resolution of any disputes between the requester

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and the agency, and notify the requester of the right of the requester to seek dispute
resolution services from the Office of Government Information Services. Refusal by
the person to reasonably modify the request or arrange such an alternative time frame
shall be considered as a factor in determining whether exceptional circumstances exist
for purposes of subparagraph (C).
(iii) As used in this subparagraph, “unusual circumstances” means, but only to the
extent reasonably necessary to the proper processing of the particular requests—
(I) the need to search for and collect the requested records from field facilities or
other establishments that are separate from the office processing the request;
(II) the need to search for, collect, and appropriately examine a voluminous
amount of separate and distinct records which are demanded in a single request; or
(III) the need for consultation, which shall be conducted with all practicable speed,
with another agency having a substantial interest in the determination of the request
or among two or more components of the agency having substantial subject-matter
interest therein.
(iv) Each agency may promulgate regulations, pursuant to notice and receipt of public
comment, providing for the aggregation of certain requests by the same requestor, or by
a group of requestors acting in concert, if the agency reasonably believes that such
requests actually constitute a single request, which would otherwise satisfy the unusual
circumstances specified in this subparagraph, and the requests involve clearly related
matters. Multiple requests involving unrelated matters shall not be aggregated.
(C)
(i) Any person making a request to any agency for records under paragraph (1), (2), or
(3) of this subsection shall be deemed to have exhausted his administrative remedies
with respect to such request if the agency fails to comply with the applicable time limit
provisions of this paragraph. If the Government can show exceptional circumstances
exist and that the agency is exercising due diligence in responding to the request, the
court may retain jurisdiction and allow the agency additional time to complete its
review of the records. Upon any determination by an agency to comply with a request
for records, the records shall be made promptly available to such person making such
request. Any notification of denial of any request for records under this subsection shall
set forth the names and titles or positions of each person responsible for the denial of
such request.
(ii) For purposes of this subparagraph, the term “exceptional circumstances” does not
include a delay that results from a predictable agency workload of requests under this
section, unless the agency demonstrates reasonable progress in reducing its backlog of
pending requests.
(iii) Refusal by a person to reasonably modify the scope of a request or arrange an
alternative time frame for processing a request (or a modified request) under clause (ii)
after being given an opportunity to do so by the agency to whom the person made the
request shall be considered as a factor in determining whether exceptional
circumstances exist for purposes of this subparagraph.

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(D)
(i) Each agency may promulgate regulations, pursuant to notice and receipt of public
comment, providing for multitrack processing of requests for records based on the
amount of work or time (or both) involved in processing requests.
(ii) Regulations under this subparagraph may provide a person making a request that
does not qualify for the fastest multitrack processing an opportunity to limit the scope
of the request in order to qualify for faster processing.
(iii) This subparagraph shall not be considered to affect the requirement under
subparagraph (C) to exercise due diligence.
(E)
(i) Each agency shall promulgate regulations, pursuant to notice and receipt of public
comment, providing for expedited processing of requests for records—
(I) in cases in which the person requesting the records demonstrates a compelling
need; and
(II) in other cases determined by the agency.
(ii) Notwithstanding clause (i), regulations under this subparagraph must ensure—
(I) that a determination of whether to provide expedited processing shall be made,
and notice of the determination shall be provided to the person making the request,
within 10 days after the date of the request; and
(II) expeditious consideration of administrative appeals of such determinations of
whether to provide expedited processing.
(iii) An agency shall process as soon as practicable any request for records to which
the agency has granted expedited processing under this subparagraph. Agency action to
deny or affirm denial of a request for expedited processing pursuant to this
subparagraph, and failure by an agency to respond in a timely manner to such a request
shall be subject to judicial review under paragraph (4), except that the judicial review
shall be based on the record before the agency at the time of the determination.
(iv) A district court of the United States shall not have jurisdiction to review an agency
denial of expedited processing of a request for records after the agency has provided a
complete response to the request.
(v) For purposes of this subparagraph, the term “compelling need” means—
(I) that a failure to obtain requested records on an expedited basis under this
paragraph could reasonably be expected to pose an imminent threat to the life or
physical safety of an individual; or
(II) with respect to a request made by a person primarily engaged in disseminating
information, urgency to inform the public concerning actual or alleged Federal
Government activity.

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(vi) A demonstration of a compelling need by a person making a request for expedited
processing shall be made by a statement certified by such person to be true and correct
to the best of such person’s knowledge and belief.
(F) In denying a request for records, in whole or in part, an agency shall make a
reasonable effort to estimate the volume of any requested matter the provision of which is
denied, and shall provide any such estimate to the person making the request, unless
providing such estimate would harm an interest protected by the exemption in subsection
(b) pursuant to which the denial is made.
(7) Each agency shall—
(A) establish a system to assign an individualized tracking number for each request
received that will take longer than ten days to process and provide to each person making a
request the tracking number assigned to the request; and
(B) establish a telephone line or Internet service that provides information about the status
of a request to the person making the request using the assigned tracking number,
including—
(i) the date on which the agency originally received the request; and
(ii) an estimated date on which the agency will complete action on the request.
(8)
(A) An agency shall—
(i) withhold information under this section only if—
(I) the agency reasonably foresees that disclosure would harm an interest protected
by an exemption described in subsection (b); or
(II) disclosure is prohibited by law; and
(ii)
(I) consider whether partial disclosure of information is possible whenever the
agency determines that a full disclosure of a requested record is not possible; and
(II) take reasonable steps necessary to segregate and release nonexempt
information; and
(B) Nothing in this paragraph requires disclosure of information that is otherwise
prohibited from disclosure by law, or otherwise exempted from disclosure under subsection
(b)(3).
(b) This section does not apply to matters that are—
(1)
(A) specifically authorized under criteria established by an Executive order to be kept
secret in the interest of national defense or foreign policy and (B) are in fact properly
classified pursuant to such Executive order;
(2) related solely to the internal personnel rules and practices of an agency;

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(3) specifically exempted from disclosure by statute (other than section 552b of this title [5
USCS § 552b]), if that statute—
(A)
(i) requires that the matters be withheld from the public in such a manner as to leave
no discretion on the issue; or
(ii) establishes particular criteria for withholding or refers to particular types of matters
to be withheld; and
(B) if enacted after the date of enactment of the OPEN FOIA Act of 2009 [enacted Oct.
28, 2009], specifically cites to this paragraph.
(4) trade secrets and commercial or financial information obtained from a person and
privileged or confidential;
(5) inter-agency or intra-agency memorandums or letters that would not be available by law to
a party other than an agency in litigation with the agency, provided that the deliberative
process privilege shall not apply to records created 25 years or more before the date on which
the records were requested;
(6) personnel and medical files and similar files the disclosure of which would constitute a
clearly unwarranted invasion of personal privacy;
(7) records or information compiled for law enforcement purposes, but only to the extent that
the production of such law enforcement records or information (A) could reasonably be
expected to interfere with enforcement proceedings, (B) would deprive a person of a right to a
fair trial or an impartial adjudication, (C) could reasonably be expected to constitute an
unwarranted invasion of personal privacy, (D) could reasonably be expected to disclose the
identity of a confidential source, including a State, local, or foreign agency or authority or any
private institution which furnished information on a confidential basis, and, in the case of a
record or information compiled by criminal law enforcement authority in the course of a
criminal investigation or by an agency conducting a lawful national security intelligence
investigation, information furnished by a confidential source, (E) would disclose techniques
and procedures for law enforcement investigations or prosecutions, or would disclose
guidelines for law enforcement investigations or prosecutions if such disclosure could
reasonably be expected to risk circumvention of the law, or (F) could reasonably be expected
to endanger the life or physical safety of any individual;
(8) contained in or related to examination, operating, or condition reports prepared by, on
behalf of, or for the use of an agency responsible for the regulation or supervision of financial
institutions; or
(9) geological or geophysical information and data, including maps, concerning wells.
Any reasonably segregable portion of a record shall be provided to any person requesting such
record after deletion of the portions which are exempt under this subsection. The amount of
information deleted, and the exemption under which the deletion is made, shall be indicated on the
released portion of the record, unless including that indication would harm an interest protected by
the exemption in this subsection under which the deletion is made. If technically feasible, the

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amount of the information deleted, and the exemption under which the deletion is made, shall be
indicated at the place in the record where such deletion is made.
(c)
(1) Whenever a request is made which involves access to records described in subsection
(b)(7)(A) and—
(A) the investigation or proceeding involves a possible violation of criminal law; and
(B) there is reason to believe that (i) the subject of the investigation or proceeding is not
aware of its pendency, and (ii) disclosure of the existence of the records could reasonably
be expected to interfere with enforcement proceedings,
the agency may, during only such time as that circumstance continues, treat the records as not
subject to the requirements of this section.
(2) Whenever informant records maintained by a criminal law enforcement agency under an
informant’s name or personal identifier are requested by a third party according to the
informant’s name or personal identifier, the agency may treat the records as not subject to the
requirements of this section unless the informant’s status as an informant has been officially
confirmed.
(3) Whenever a request is made which involves access to records maintained by the Federal
Bureau of Investigation pertaining to foreign intelligence or counterintelligence, or
international terrorism, and the existence of the records is classified information as provided in
subsection (b)(1), the Bureau may, as long as the existence of the records remains classified
information, treat the records as not subject to the requirements of this section.
(d) This section does not authorize withholding of information or limit the availability of records
to the public, except as specifically stated in this section. This section is not authority to withhold
information from Congress.
(e)
(1) On or before February 1 of each year, each agency shall submit to the Attorney General of
the United States and to the Director of the Office of Government Information Services a
report which shall cover the preceding fiscal year and which shall include—
(A) the number of determinations made by the agency not to comply with requests for
records made to such agency under subsection (a) and the reasons for each such
determination;
(B)
(i) the number of appeals made by persons under subsection (a)(6), the result of such
appeals, and the reason for the action upon each appeal that results in a denial of
information; and
(ii) a complete list of all statutes that the agency relies upon to authorize the agency to
withhold information under subsection (b)(3), the number of occasions on which each
statute was relied upon, a description of whether a court has upheld the decision of the
agency to withhold information under each such statute, and a concise description of
the scope of any information withheld;

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(C) the number of requests for records pending before the agency as of September 30 of
the preceding year, and the median and average number of days that such requests had
been pending before the agency as of that date;
(D) the number of requests for records received by the agency and the number of requests
which the agency processed;
(E) the median number of days taken by the agency to process different types of requests,
based on the date on which the requests were received by the agency;
(F) the average number of days for the agency to respond to a request beginning on the
date on which the request was received by the agency, the median number of days for the
agency to respond to such requests, and the range in number of days for the agency to
respond to such requests;
(G) based on the number of business days that have elapsed since each request was
originally received by the agency—
(i) the number of requests for records to which the agency has responded with a
determination within a period up to and including 20 days, and in 20-day increments up
to and including 200 days;
(ii) the number of requests for records to which the agency has responded with a
determination within a period greater than 200 days and less than 301 days;
(iii) the number of requests for records to which the agency has responded with a
determination within a period greater than 300 days and less than 401 days; and
(iv) the number of requests for records to which the agency has responded with a
determination within a period greater than 400 days;
(H) the average number of days for the agency to provide the granted information
beginning on the date on which the request was originally filed, the median number of days
for the agency to provide the granted information, and the range in number of days for the
agency to provide the granted information;
(I) the median and average number of days for the agency to respond to administrative
appeals based on the date on which the appeals originally were received by the agency, the
highest number of business days taken by the agency to respond to an administrative
appeal, and the lowest number of business days taken by the agency to respond to an
administrative appeal;
(J) data on the 10 active requests with the earliest filing dates pending at each agency,
including the amount of time that has elapsed since each request was originally received by
the agency;
(K) data on the 10 active administrative appeals with the earliest filing dates pending
before the agency as of September 30 of the preceding year, including the number of
business days that have elapsed since the requests were originally received by the agency;
(L) the number of expedited review requests that are granted and denied, the average and
median number of days for adjudicating expedited review requests, and the number
adjudicated within the required 10 days;

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(M) the number of fee waiver requests that are granted and denied, and the average and
median number of days for adjudicating fee waiver determinations;
(N) the total amount of fees collected by the agency for processing requests;
(O) the number of full-time staff of the agency devoted to processing requests for records
under this section, and the total amount expended by the agency for processing such
requests;
(P) the number of times the agency denied a request for records under subsection (c); and
(Q) the number of records that were made available for public inspection in an electronic
format under subsection (a)(2).
(2) Information in each report submitted under paragraph (1) shall be expressed in terms of
each principal component of the agency and for the agency overall.
(3) Each agency shall make each such report available for public inspection in an electronic
format. In addition, each agency shall make the raw statistical data used in each report
available in a timely manner for public inspection in an electronic format, which shall be made
available—
(A) without charge, license, or registration requirement;
(B) in an aggregated, searchable format; and
(C) in a format that may be downloaded in bulk.
(4) The Attorney General of the United States shall make each report which has been made
available by electronic means available at a single electronic access point. The Attorney
General of the United States shall notify the Chairman and ranking minority member of the
Committee on Oversight and Government Reform of the House of Representatives and the
Chairman and ranking minority member of the Committees on Homeland Security and
Governmental Affairs and the Judiciary of the Senate, no later than March 1 of the year in
which each such report is issued, that such reports are available by electronic means.
(5) The Attorney General of the United States, in consultation with the Director of the Office
of Management and Budget, shall develop reporting and performance guidelines in connection
with reports required by this subsection by October 1, 1997, and may establish additional
requirements for such reports as the Attorney General determines may be useful.
(6)
(A) The Attorney General of the United States shall submit to the Committee on Oversight
and Government Reform of the House of Representatives, the Committee on the Judiciary
of the Senate, and the President a report on or before March 1 of each calendar year, which
shall include for the prior calendar year—
(i) a listing of the number of cases arising under this section;
(ii) a listing of—
(I) each subsection, and any exemption, if applicable, involved in each case arising
under this section;
(II) the disposition of each case arising under this section; and

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(III) the cost, fees, and penalties assessed under subparagraphs (E), (F), and (G) of
subsection (a)(4); and
(iii) a description of the efforts undertaken by the Department of Justice to encourage
agency compliance with this section.
(B) The Attorney General of the United States shall make—
(i) each report submitted under subparagraph (A) available for public inspection in an
electronic format; and
(ii) the raw statistical data used in each report submitted under subparagraph (A)
available for public inspection in an electronic format, which shall be made available—
(I) without charge, license, or registration requirement;
(II) in an aggregated, searchable format; and
(III) in a format that may be downloaded in bulk.
(f) For purposes of this section, the term—
(1) “agency” as defined in section 551(1) of this title [5 USCS § 551(1)] includes any
executive department, military department, Government corporation, Government controlled
corporation, or other establishment in the executive branch of the Government (including the
Executive Office of the President), or any independent regulatory agency; and
(2) “record” and any other term used in this section in reference to information includes—
(A) any information that would be an agency record subject to the requirements of this
section when maintained by an agency in any format, including an electronic format; and
(B) any information described under subparagraph (A) that is maintained for an agency by
an entity under Government contract, for the purposes of records management.
(g) The head of each agency shall prepare and make available for public inspection in an
electronic format, reference material or a guide for requesting records or information from the
agency, subject to the exemptions in subsection (b), including—
(1) an index of all major information systems of the agency;
(2) a description of major information and record locator systems maintained by the agency;
and
(3) a handbook for obtaining various types and categories of public information from the
agency pursuant to chapter 35 of title 44 [44 USCS §§ 3501 et seq.], and under this section.
(h)
(1) There is established the Office of Government Information Services within the National
Archives and Records Administration. The head of the Office shall be the Director of the
Office of Government Information Services.
(2) The Office of Government Information Services shall—
(A) review policies and procedures of administrative agencies under this section;
(B) review compliance with this section by administrative agencies; and

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(C) identify procedures and methods for improving compliance under this section.
(3) The Office of Government Information Services shall offer mediation services to resolve
disputes between persons making requests under this section and administrative agencies as a
nonexclusive alternative to litigation and may issue advisory opinions at the discretion of the
Office or upon request of any party to a dispute.
(4)
(A) Not less frequently than annually, the Director of the Office of Government
Information Services shall submit to the Committee on Oversight and Government Reform
of the House of Representatives, the Committee on the Judiciary of the Senate, and the
President—
(i) a report on the findings of the information reviewed and identified under paragraph
(2);
(ii) a summary of the activities of the Office of Government Information Services
under paragraph (3), including—
(I) any advisory opinions issued; and
(II) the number of times each agency engaged in dispute resolution with the
assistance of the Office of Government Information Services or the FOIA Public
Liaison; and
(iii) legislative and regulatory recommendations, if any, to improve the administration
of this section.
(B) The Director of the Office of Government Information Services shall make each report
submitted under subparagraph (A) available for public inspection in an electronic format.
(C) The Director of the Office of Government Information Services shall not be required
to obtain the prior approval, comment, or review of any officer or agency of the United
States, including the Department of Justice, the Archivist of the United States, or the Office
of Management and Budget before submitting to Congress, or any committee or
subcommittee thereof, any reports, recommendations, testimony, or comments, if such
submissions include a statement indicating that the views expressed therein are those of the
Director and do not necessarily represent the views of the President.
(5) The Director of the Office of Government Information Services may directly submit
additional information to Congress and the President as the Director determines to be
appropriate.
(6) Not less frequently than annually, the Office of Government Information Services shall
conduct a meeting that is open to the public on the review and reports by the Office and shall
allow interested persons to appear and present oral or written statements at the meeting.
(i) The Government Accountability Office shall conduct audits of administrative agencies on the
implementation of this section and issue reports detailing the results of such audits.
(j)
(1) Each agency shall designate a Chief FOIA Officer who shall be a senior official of such
agency (at the Assistant Secretary or equivalent level).

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(2) The Chief FOIA Officer of each agency shall, subject to the authority of the head of the
agency—
(A) have agency-wide responsibility for efficient and appropriate compliance with this
section;
(B) monitor implementation of this section throughout the agency and keep the head of the
agency, the chief legal officer of the agency, and the Attorney General appropriately
informed of the agency’s performance in implementing this section;
(C) recommend to the head of the agency such adjustments to agency practices, policies,
personnel, and funding as may be necessary to improve its implementation of this section;
(D) review and report to the Attorney General, through the head of the agency, at such
times and in such formats as the Attorney General may direct, on the agency’s performance
in implementing this section;
(E) facilitate public understanding of the purposes of the statutory exemptions of this
section by including concise descriptions of the exemptions in both the agency’s handbook
issued under subsection (g), and the agency’s annual report on this section, and by
providing an overview, where appropriate, of certain general categories of agency records
to which those exemptions apply;
(F) offer training to agency staff regarding their responsibilities under this section;
(G) serve as the primary agency liaison with the Office of Government Information
Services and the Office of Information Policy; and
(H) designate 1 or more FOIA Public Liaisons.
(3) The Chief FOIA Officer of each agency shall review, not less frequently than annually, all
aspects of the administration of this section by the agency to ensure compliance with the
requirements of this section, including—
(A) agency regulations;
(B) disclosure of records required under paragraphs (2) and (8) of subsection (a);
(C) assessment of fees and determination of eligibility for fee waivers;
(D) the timely processing of requests for information under this section;
(E) the use of exemptions under subsection (b); and
(F) dispute resolution services with the assistance of the Office of Government
Information Services or the FOIA Public Liaison.
(k)
(1) There is established in the executive branch the Chief FOIA Officers Council (referred to
in this subsection as the “Council”).
(2) The Council shall be comprised of the following members:
(A) The Deputy Director for Management of the Office of Management and Budget.
(B) The Director of the Office of Information Policy at the Department of Justice.

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(C) The Director of the Office of Government Information Services.
(D) The Chief FOIA Officer of each agency.
(E) Any other officer or employee of the United States as designated by the Co-Chairs.
(3) The Director of the Office of Information Policy at the Department of Justice and the
Director of the Office of Government Information Services shall be the Co-Chairs of the
Council.
(4) The Administrator of General Services shall provide administrative and other support for
the Council.
(5)
(A) The duties of the Council shall include the following:
(i) Develop recommendations for increasing compliance and efficiency under this
section.
(ii) Disseminate information about agency experiences, ideas, best practices, and
innovative approaches related to this section.
(iii) Identify, develop, and coordinate initiatives to increase transparency and
compliance with this section.
(iv) Promote the development and use of common performance measures for agency
compliance with this section.
(B) In performing the duties described in subparagraph (A), the Council shall consult on a
regular basis with members of the public who make requests under this section.
(6)
(A) The Council shall meet regularly and such meetings shall be open to the public unless
the Council determines to close the meeting for reasons of national security or to discuss
information exempt under subsection (b).
(B) Not less frequently than annually, the Council shall hold a meeting that shall be open
to the public and permit interested persons to appear and present oral and written
statements to the Council.
(C) Not later than 10 business days before a meeting of the Council, notice of such
meeting shall be published in the Federal Register.
(D) Except as provided in subsection (b), the records, reports, transcripts, minutes,
appendices, working papers, drafts, studies, agenda, or other documents that were made
available to or prepared for or by the Council shall be made publicly available.
(E) Detailed minutes of each meeting of the Council shall be kept and shall contain a
record of the persons present, a complete and accurate description of matters discussed and
conclusions reached, and copies of all reports received, issued, or approved by the Council.
The minutes shall be redacted as necessary and made publicly available.
(l) FOIA Public Liaisons shall report to the agency Chief FOIA Officer and shall serve as
supervisory officials to whom a requester under this section can raise concerns about the service
the requester has received from the FOIA Requester Center, following an initial response from the

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FOIA Requester Center Staff. FOIA Public Liaisons shall be responsible for assisting in reducing
delays, increasing transparency and understanding of the status of requests, and assisting in the
resolution of disputes.
(m)
(1) The Director of the Office of Management and Budget, in consultation with the Attorney
General, shall ensure the operation of a consolidated online request portal that allows a
member of the public to submit a request for records under subsection (a) to any agency from a
single website. The portal may include any additional tools the Director of the Office of
Management and Budget finds will improve the implementation of this section.
(2) This subsection shall not be construed to alter the power of any other agency to create or
maintain an independent online portal for the submission of a request for records under this
section. The Director of the Office of Management and Budget shall establish standards for
interoperability between the portal required under paragraph (1) and other request processing
software used by agencies subject to this section.

History

HISTORY:
Sept. 6, 1966, P.L. 89-554, § 1, 80 Stat. 383; June 5, 1967, P. L. 90-23 § 1, 81 Stat. 54; Nov. 21, 1974, P.
L. 93-502, §§ 1–3, 88 Stat. 1561, 1563, 1564; Sept. 13, 1976, P. L. 94-409, § 5(b), 90 Stat. 1247; Oct. 13,
1978, P. L. 95-454, Title IX, § 906(a)(10), 92 Stat. 1225; Nov. 8, 1984, P. L. 98-620, Title IV, Subtitle A,
§ 402(2), 98 Stat. 3357; Oct. 27, 1986, P. L. 99-570, Title I, Subtitle N, §§ 1802, 1803, 100 Stat. 3207-48,
3207-49; Oct. 2, 1996, P. L. 104-231, §§ 3–11, 110 Stat. 3049; Nov. 27, 2002, P. L. 107-306, Title III,
Subtitle B, § 312, 116 Stat. 2390; Dec. 31, 2007, P. L. 110-175, §§ 3, 4(a), 5, 6(a)(1), (b)(1), 7(a), 8–10(a),
12, 121 Stat. 2525, 2526, 2527, 2530; Oct. 28, 2009, P. L. 111-83, Title V, § 564(b), 123 Stat. 2184; June
30, 2016, P. L. 114-185, § 2, 130 Stat. 538.
United States Code Service
Copyright © 2022 All rights reserved.

End of Document

5 USCS § 552, Part 3 of 4
Current through Public Law 117-166, approved August 5, 2022.
United States Code Service > TITLE 5. GOVERNMENT ORGANIZATION AND EMPLOYEES (§§ 101 —
11001) > Part I. The Agencies Generally (Chs. 1 — 9) > CHAPTER 5. Administrative Procedure (Subchs. I —
V) > Subchapter II. Administrative Procedure (§§ 551 — 559)

§ 552. Public information; agency rules, opinions, orders, records, and proceedings
(a) Each agency shall make available to the public information as follows:
(1) Each agency shall separately state and currently publish in the Federal Register for the
guidance of the public—
(A) descriptions of its central and field organization and the established places at which,
the employees (and in the case of a uniformed service, the members) from whom, and the
methods whereby, the public may obtain information, make submittals or requests, or
obtain decisions;
(B) statements of the general course and method by which its functions are channeled and
determined, including the nature and requirements of all formal and informal procedures
available;
(C) rules of procedure, descriptions of forms available or the places at which forms may
be obtained, and instructions as to the scope and contents of all papers, reports, or
examinations;
(D) substantive rules of general applicability adopted as authorized by law, and statements
of general policy or interpretations of general applicability formulated and adopted by the
agency; and
(E) each amendment, revision, or repeal of the foregoing.
Except to the extent that a person has actual and timely notice of the terms thereof, a person
may not in any manner be required to resort to, or be adversely affected by, a matter required
to be published in the Federal Register and not so published. For the purpose of this paragraph,
matter reasonably available to the class of persons affected thereby is deemed published in the
Federal Register when incorporated by reference therein with the approval of the Director of
the Federal Register.
(2) Each agency, in accordance with published rules, shall make available for public
inspection in an electronic format—
(A) final opinions, including concurring and dissenting opinions, as well as orders, made
in the adjudication of cases;
(B) those statements of policy and interpretations which have been adopted by the agency
and are not published in the Federal Register;

Page 2 of 19
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(C) administrative staff manuals and instructions to staff that affect a member of the
public;
(D) copies of all records, regardless of form or format—
(i) that have been released to any person under paragraph (3); and
(ii)
(I) that because of the nature of their subject matter, the agency determines have
become or are likely to become the subject of subsequent requests for substantially
the same records; or
(II) that have been requested 3 or more times; and
(E) a general index of the records referred to under subparagraph (D);
unless the materials are promptly published and copies offered for sale. For records created on
or after November 1, 1996, within one year after such date, each agency shall make such
records available, including by computer telecommunications or, if computer
telecommunications means have not been established by the agency, by other electronic
means. To the extent required to prevent a clearly unwarranted invasion of personal privacy, an
agency may delete identifying details when it makes available or publishes an opinion,
statement of policy, interpretation, staff manual, instruction, or copies of records referred to in
subparagraph (D). However, in each case the justification for the deletion shall be explained
fully in writing, and the extent of such deletion shall be indicated on the portion of the record
which is made available or published, unless including that indication would harm an interest
protected by the exemption in subsection (b) under which the deletion is made. If technically
feasible, the extent of the deletion shall be indicated at the place in the record where the
deletion was made. Each agency shall also maintain and make available for public inspection
in an electronic format current indexes providing identifying information for the public as to
any matter issued, adopted, or promulgated after July 4, 1967, and required by this paragraph
to be made available or published. Each agency shall make the index referred to in
subparagraph (E) available by computer telecommunications by December 31, 1999. Each
agency shall promptly publish, quarterly or more frequently, and distribute (by sale or
otherwise) copies of each index or supplements thereto unless it determines by order published
in the Federal Register that the publication would be unnecessary and impracticable, in which
case the agency shall nonetheless provide copies of such index on request at a cost not to
exceed the direct cost of duplication. A final order, opinion, statement of policy,
interpretation, or staff manual or instruction that affects a member of the public may be relied
on, used, or cited as precedent by an agency against a party other than an agency only if—
(i) it has been indexed and either made available or published as provided by this
paragraph; or
(ii) the party has actual and timely notice of the terms thereof.
(3)
(A) Except with respect to the records made available under paragraphs (1) and (2) of this
subsection, and except as provided in subparagraph (E), each agency, upon any request for
records which (i) reasonably describes such records and (ii) is made in accordance with

Page 3 of 19
5 USCS § 552, Part 3 of 4

published rules stating the time, place, fees (if any), and procedures to be followed, shall
make the records promptly available to any person.
(B) In making any record available to a person under this paragraph, an agency shall
provide the record in any form or format requested by the person if the record is readily
reproducible by the agency in that form or format. Each agency shall make reasonable
efforts to maintain its records in forms or formats that are reproducible for purposes of this
section.
(C) In responding under this paragraph to a request for records, an agency shall make
reasonable efforts to search for the records in electronic form or format, except when such
efforts would significantly interfere with the operation of the agency’s automated
information system.
(D) For purposes of this paragraph, the term “search” means to review, manually or by
automated means, agency records for the purpose of locating those records which are
responsive to a request.
(E) An agency, or part of an agency, that is an element of the intelligence community (as
that term is defined in section 3(4) of the National Security Act of 1947 (50 U.S.C.
401a(4)) [50 USCS § 3003]) shall not make any record available under this paragraph to—
(i) any government entity, other than a State, territory, commonwealth, or district of
the United States, or any subdivision thereof; or
(ii) a representative of a government entity described in clause (i).
(4)
(A)
(i) In order to carry out the provisions of this section, each agency shall promulgate
regulations, pursuant to notice and receipt of public comment, specifying the schedule
of fees applicable to the processing of requests under this section and establishing
procedures and guidelines for determining when such fees should be waived or
reduced. Such schedule shall conform to the guidelines which shall be promulgated,
pursuant to notice and receipt of public comment, by the Director of the Office of
Management and Budget and which shall provide for a uniform schedule of fees for all
agencies.
(ii) Such agency regulations shall provide that—
(I) fees shall be limited to reasonable standard charges for document search,
duplication, and review, when records are requested for commercial use;
(II) fees shall be limited to reasonable standard charges for document duplication
when records are not sought for commercial use and the request is made by an
educational or noncommercial scientific institution, whose purpose is scholarly or
scientific research; or a representative of the news media; and
(III) for any request not described in (I) or (II), fees shall be limited to reasonable
standard charges for document search and duplication.

Page 4 of 19
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In this clause, the term “a representative of the news media” means any person or entity
that gathers information of potential interest to a segment of the public, uses its
editorial skills to turn the raw materials into a distinct work, and distributes that work to
an audience. In this clause, the term “news” means information that is about current
events or that would be of current interest to the public. Examples of news-media
entities are television or radio stations broadcasting to the public at large and publishers
of periodicals (but only if such entities qualify as disseminators of “news”) who make
their products available for purchase by or subscription by or free distribution to the
general public. These examples are not all-inclusive. Moreover, as methods of news
delivery evolve (for example, the adoption of the electronic dissemination of
newspapers through telecommunications services), such alternative media shall be
considered to be news-media entities. A freelance journalist shall be regarded as
working for a news-media entity if the journalist can demonstrate a solid basis for
expecting publication through that entity, whether or not the journalist is actually
employed by the entity. A publication contract would present a solid basis for such an
expectation; the Government may also consider the past publication record of the
requester in making such a determination.
(iii) Documents shall be furnished without any charge or at a charge reduced below the
fees established under clause (ii) if disclosure of the information is in the public interest
because it is likely to contribute significantly to public understanding of the operations
or activities of the government and is not primarily in the commercial interest of the
requester.
(iv) Fee schedules shall provide for the recovery of only the direct costs of search,
duplication, or review. Review costs shall include only the direct costs incurred during
the initial examination of a document for the purposes of determining whether the
documents must be disclosed under this section and for the purposes of withholding
any portions exempt from disclosure under this section. Review costs may not include
any costs incurred in resolving issues of law or policy that may be raised in the course
of processing a request under this section. No fee may be charged by any agency under
this section—
(I) if the costs of routine collection and processing of the fee are likely to equal or
exceed the amount of the fee; or
(II) for any request described in clause (ii)(II) or (III) of this subparagraph for the
first two hours of search time or for the first one hundred pages of duplication.
(v) No agency may require advance payment of any fee unless the requester has
previously failed to pay fees in a timely fashion, or the agency has determined that the
fee will exceed $250.
(vi) Nothing in this subparagraph shall supersede fees chargeable under a statute
specifically providing for setting the level of fees for particular types of records.
(vii) In any action by a requester regarding the waiver of fees under this section, the
court shall determine the matter de novo: Provided, That the court’s review of the
matter shall be limited to the record before the agency.
(viii)

Page 5 of 19
5 USCS § 552, Part 3 of 4

(I) Except as provided in subclause (II), an agency shall not assess any search fees
(or in the case of a requester described under clause (ii)(II) of this subparagraph,
duplication fees) under this subparagraph if the agency has failed to comply with
any time limit under paragraph (6).
(II)
(aa) If an agency has determined that unusual circumstances apply (as the term
is defined in paragraph (6)(B)) and the agency provided a timely written notice
to the requester in accordance with paragraph (6)(B), a failure described in
subclause (I) is excused for an additional 10 days. If the agency fails to comply
with the extended time limit, the agency may not assess any search fees (or in
the case of a requester described under clause (ii)(II) of this subparagraph,
duplication fees).
(bb) If an agency has determined that unusual circumstances apply and more
than 5,000 pages are necessary to respond to the request, an agency may charge
search fees (or in the case of a requester described under clause (ii)(II) of this
subparagraph, duplication fees) if the agency has provided a timely written
notice to the requester in accordance with paragraph (6)(B) and the agency has
discussed with the requester via written mail, electronic mail, or telephone (or
made not less than 3 good-faith attempts to do so) how the requester could
effectively limit the scope of the request in accordance with paragraph
(6)(B)(ii).
(cc) If a court has determined that exceptional circumstances exist (as that term
is defined in paragraph (6)(C)), a failure described in subclause (I) shall be
excused for the length of time provided by the court order.
(B) On complaint, the district court of the United States in the district in which the
complainant resides, or has his principal place of business, or in which the agency records
are situated, or in the District of Columbia, has jurisdiction to enjoin the agency from
withholding agency records and to order the production of any agency records improperly
withheld from the complainant. In such a case the court shall determine the matter de novo,
and may examine the contents of such agency records in camera to determine whether such
records or any part thereof shall be withheld under any of the exemptions set forth in
subsection (b) of this section, and the burden is on the agency to sustain its action. In
addition to any other matters to which a court accords substantial weight, a court shall
accord substantial weight to an affidavit of an agency concerning the agency’s
determination as to technical feasibility under paragraph (2)(C) and subsection (b) and
reproducibility under paragraph (3)(B).
(C) Notwithstanding any other provision of law, the defendant shall serve an answer or
otherwise plead to any complaint made under this subsection within thirty days after
service upon the defendant of the pleading in which such complaint is made, unless the
court otherwise directs for good cause shown.
(D) [Repealed]
(E)

Page 6 of 19
5 USCS § 552, Part 3 of 4

(i) The court may assess against the United States reasonable attorney fees and other
litigation costs reasonably incurred in any case under this section in which the
complainant has substantially prevailed.
(ii) For purposes of this subparagraph, a complainant has substantially prevailed if the
complainant has obtained relief through either—
(I) a judicial order, or an enforceable written agreement or consent decree; or
(II) a voluntary or unilateral change in position by the agency, if the complainant’s
claim is not insubstantial.
(F)
(i) Whenever the court orders the production of any agency records improperly
withheld from the complainant and assesses against the United States reasonable
attorney fees and other litigation costs, and the court additionally issues a written
finding that the circumstances surrounding the withholding raise questions whether
agency personnel acted arbitrarily or capriciously with respect to the withholding, the
Special Counsel shall promptly initiate a proceeding to determine whether disciplinary
action is warranted against the officer or employee who was primarily responsible for
the withholding. The Special Counsel, after investigation and consideration of the
evidence submitted, shall submit his findings and recommendations to the
administrative authority of the agency concerned and shall send copies of the findings
and recommendations to the officer or employee or his representative. The
administrative authority shall take the corrective action that the Special Counsel
recommends.
(ii) The Attorney General shall—
(I) notify the Special Counsel of each civil action described under the first sentence
of clause (i); and
(II) annually submit a report to Congress on the number of such civil actions in the
preceding year.
(iii) The Special Counsel shall annually submit a report to Congress on the actions
taken by the Special Counsel under clause (i).
(G) In the event of noncompliance with the order of the court, the district court may
punish for contempt the responsible employee, and in the case of a uniformed service, the
responsible member.
(5) Each agency having more than one member shall maintain and make available for public
inspection a record of the final votes of each member in every agency proceeding.
(6)
(A) Each agency, upon any request for records made under paragraph (1), (2), or (3) of
this subsection, shall—
(i) determine within 20 days (excepting Saturdays, Sundays, and legal public holidays)
after the receipt of any such request whether to comply with such request and shall
immediately notify the person making such request of—

Page 7 of 19
5 USCS § 552, Part 3 of 4

(I) such determination and the reasons therefor;
(II) the right of such person to seek assistance from the FOIA Public Liaison of the
agency; and
(III) in the case of an adverse determination—
(aa) the right of such person to appeal to the head of the agency, within a
period determined by the head of the agency that is not less than 90 days after
the date of such adverse determination; and
(bb) the right of such person to seek dispute resolution services from the FOIA
Public Liaison of the agency or the Office of Government Information Services;
and
(ii) make a determination with respect to any appeal within twenty days (excepting
Saturdays, Sundays, and legal public holidays) after the receipt of such appeal. If on
appeal the denial of the request for records is in whole or in part upheld, the agency
shall notify the person making such request of the provisions for judicial review of that
determination under paragraph (4) of this subsection.
The 20-day period under clause (i) shall commence on the date on which the request is first
received by the appropriate component of the agency, but in any event not later than ten
days after the request is first received by any component of the agency that is designated in
the agency’s regulations under this section to receive requests under this section. The 20day period shall not be tolled by the agency except—
(I) that the agency may make one request to the requester for information and toll the
20-day period while it is awaiting such information that it has reasonably requested
from the requester under this section; or
(II) if necessary to clarify with the requester issues regarding fee assessment. In either
case, the agency’s receipt of the requester’s response to the agency’s request for
information or clarification ends the tolling period.
(B)
(i) In unusual circumstances as specified in this subparagraph, the time limits
prescribed in either clause (i) or clause (ii) of subparagraph (A) may be extended by
written notice to the person making such request setting forth the unusual
circumstances for such extension and the date on which a determination is expected to
be dispatched. No such notice shall specify a date that would result in an extension for
more than ten working days, except as provided in clause (ii) of this subparagraph.
(ii) With respect to a request for which a written notice under clause (i) extends the
time limits prescribed under clause (i) of subparagraph (A), the agency shall notify the
person making the request if the request cannot be processed within the time limit
specified in that clause and shall provide the person an opportunity to limit the scope of
the request so that it may be processed within that time limit or an opportunity to
arrange with the agency an alternative time frame for processing the request or a
modified request. To aid the requester, each agency shall make available its FOIA
Public Liaison, who shall assist in the resolution of any disputes between the requester

Page 8 of 19
5 USCS § 552, Part 3 of 4

and the agency, and notify the requester of the right of the requester to seek dispute
resolution services from the Office of Government Information Services. Refusal by
the person to reasonably modify the request or arrange such an alternative time frame
shall be considered as a factor in determining whether exceptional circumstances exist
for purposes of subparagraph (C).
(iii) As used in this subparagraph, “unusual circumstances” means, but only to the
extent reasonably necessary to the proper processing of the particular requests—
(I) the need to search for and collect the requested records from field facilities or
other establishments that are separate from the office processing the request;
(II) the need to search for, collect, and appropriately examine a voluminous
amount of separate and distinct records which are demanded in a single request; or
(III) the need for consultation, which shall be conducted with all practicable speed,
with another agency having a substantial interest in the determination of the request
or among two or more components of the agency having substantial subject-matter
interest therein.
(iv) Each agency may promulgate regulations, pursuant to notice and receipt of public
comment, providing for the aggregation of certain requests by the same requestor, or by
a group of requestors acting in concert, if the agency reasonably believes that such
requests actually constitute a single request, which would otherwise satisfy the unusual
circumstances specified in this subparagraph, and the requests involve clearly related
matters. Multiple requests involving unrelated matters shall not be aggregated.
(C)
(i) Any person making a request to any agency for records under paragraph (1), (2), or
(3) of this subsection shall be deemed to have exhausted his administrative remedies
with respect to such request if the agency fails to comply with the applicable time limit
provisions of this paragraph. If the Government can show exceptional circumstances
exist and that the agency is exercising due diligence in responding to the request, the
court may retain jurisdiction and allow the agency additional time to complete its
review of the records. Upon any determination by an agency to comply with a request
for records, the records shall be made promptly available to such person making such
request. Any notification of denial of any request for records under this subsection shall
set forth the names and titles or positions of each person responsible for the denial of
such request.
(ii) For purposes of this subparagraph, the term “exceptional circumstances” does not
include a delay that results from a predictable agency workload of requests under this
section, unless the agency demonstrates reasonable progress in reducing its backlog of
pending requests.
(iii) Refusal by a person to reasonably modify the scope of a request or arrange an
alternative time frame for processing a request (or a modified request) under clause (ii)
after being given an opportunity to do so by the agency to whom the person made the
request shall be considered as a factor in determining whether exceptional
circumstances exist for purposes of this subparagraph.

Page 9 of 19
5 USCS § 552, Part 3 of 4

(D)
(i) Each agency may promulgate regulations, pursuant to notice and receipt of public
comment, providing for multitrack processing of requests for records based on the
amount of work or time (or both) involved in processing requests.
(ii) Regulations under this subparagraph may provide a person making a request that
does not qualify for the fastest multitrack processing an opportunity to limit the scope
of the request in order to qualify for faster processing.
(iii) This subparagraph shall not be considered to affect the requirement under
subparagraph (C) to exercise due diligence.
(E)
(i) Each agency shall promulgate regulations, pursuant to notice and receipt of public
comment, providing for expedited processing of requests for records—
(I) in cases in which the person requesting the records demonstrates a compelling
need; and
(II) in other cases determined by the agency.
(ii) Notwithstanding clause (i), regulations under this subparagraph must ensure—
(I) that a determination of whether to provide expedited processing shall be made,
and notice of the determination shall be provided to the person making the request,
within 10 days after the date of the request; and
(II) expeditious consideration of administrative appeals of such determinations of
whether to provide expedited processing.
(iii) An agency shall process as soon as practicable any request for records to which
the agency has granted expedited processing under this subparagraph. Agency action to
deny or affirm denial of a request for expedited processing pursuant to this
subparagraph, and failure by an agency to respond in a timely manner to such a request
shall be subject to judicial review under paragraph (4), except that the judicial review
shall be based on the record before the agency at the time of the determination.
(iv) A district court of the United States shall not have jurisdiction to review an agency
denial of expedited processing of a request for records after the agency has provided a
complete response to the request.
(v) For purposes of this subparagraph, the term “compelling need” means—
(I) that a failure to obtain requested records on an expedited basis under this
paragraph could reasonably be expected to pose an imminent threat to the life or
physical safety of an individual; or
(II) with respect to a request made by a person primarily engaged in disseminating
information, urgency to inform the public concerning actual or alleged Federal
Government activity.

Page 10 of 19
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(vi) A demonstration of a compelling need by a person making a request for expedited
processing shall be made by a statement certified by such person to be true and correct
to the best of such person’s knowledge and belief.
(F) In denying a request for records, in whole or in part, an agency shall make a
reasonable effort to estimate the volume of any requested matter the provision of which is
denied, and shall provide any such estimate to the person making the request, unless
providing such estimate would harm an interest protected by the exemption in subsection
(b) pursuant to which the denial is made.
(7) Each agency shall—
(A) establish a system to assign an individualized tracking number for each request
received that will take longer than ten days to process and provide to each person making a
request the tracking number assigned to the request; and
(B) establish a telephone line or Internet service that provides information about the status
of a request to the person making the request using the assigned tracking number,
including—
(i) the date on which the agency originally received the request; and
(ii) an estimated date on which the agency will complete action on the request.
(8)
(A) An agency shall—
(i) withhold information under this section only if—
(I) the agency reasonably foresees that disclosure would harm an interest protected
by an exemption described in subsection (b); or
(II) disclosure is prohibited by law; and
(ii)
(I) consider whether partial disclosure of information is possible whenever the
agency determines that a full disclosure of a requested record is not possible; and
(II) take reasonable steps necessary to segregate and release nonexempt
information; and
(B) Nothing in this paragraph requires disclosure of information that is otherwise
prohibited from disclosure by law, or otherwise exempted from disclosure under subsection
(b)(3).
(b) This section does not apply to matters that are—
(1)
(A) specifically authorized under criteria established by an Executive order to be kept
secret in the interest of national defense or foreign policy and (B) are in fact properly
classified pursuant to such Executive order;
(2) related solely to the internal personnel rules and practices of an agency;

Page 11 of 19
5 USCS § 552, Part 3 of 4

(3) specifically exempted from disclosure by statute (other than section 552b of this title [5
USCS § 552b]), if that statute—
(A)
(i) requires that the matters be withheld from the public in such a manner as to leave
no discretion on the issue; or
(ii) establishes particular criteria for withholding or refers to particular types of matters
to be withheld; and
(B) if enacted after the date of enactment of the OPEN FOIA Act of 2009 [enacted Oct.
28, 2009], specifically cites to this paragraph.
(4) trade secrets and commercial or financial information obtained from a person and
privileged or confidential;
(5) inter-agency or intra-agency memorandums or letters that would not be available by law to
a party other than an agency in litigation with the agency, provided that the deliberative
process privilege shall not apply to records created 25 years or more before the date on which
the records were requested;
(6) personnel and medical files and similar files the disclosure of which would constitute a
clearly unwarranted invasion of personal privacy;
(7) records or information compiled for law enforcement purposes, but only to the extent that
the production of such law enforcement records or information (A) could reasonably be
expected to interfere with enforcement proceedings, (B) would deprive a person of a right to a
fair trial or an impartial adjudication, (C) could reasonably be expected to constitute an
unwarranted invasion of personal privacy, (D) could reasonably be expected to disclose the
identity of a confidential source, including a State, local, or foreign agency or authority or any
private institution which furnished information on a confidential basis, and, in the case of a
record or information compiled by criminal law enforcement authority in the course of a
criminal investigation or by an agency conducting a lawful national security intelligence
investigation, information furnished by a confidential source, (E) would disclose techniques
and procedures for law enforcement investigations or prosecutions, or would disclose
guidelines for law enforcement investigations or prosecutions if such disclosure could
reasonably be expected to risk circumvention of the law, or (F) could reasonably be expected
to endanger the life or physical safety of any individual;
(8) contained in or related to examination, operating, or condition reports prepared by, on
behalf of, or for the use of an agency responsible for the regulation or supervision of financial
institutions; or
(9) geological or geophysical information and data, including maps, concerning wells.
Any reasonably segregable portion of a record shall be provided to any person requesting such
record after deletion of the portions which are exempt under this subsection. The amount of
information deleted, and the exemption under which the deletion is made, shall be indicated on the
released portion of the record, unless including that indication would harm an interest protected by
the exemption in this subsection under which the deletion is made. If technically feasible, the

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amount of the information deleted, and the exemption under which the deletion is made, shall be
indicated at the place in the record where such deletion is made.
(c)
(1) Whenever a request is made which involves access to records described in subsection
(b)(7)(A) and—
(A) the investigation or proceeding involves a possible violation of criminal law; and
(B) there is reason to believe that (i) the subject of the investigation or proceeding is not
aware of its pendency, and (ii) disclosure of the existence of the records could reasonably
be expected to interfere with enforcement proceedings,
the agency may, during only such time as that circumstance continues, treat the records as not
subject to the requirements of this section.
(2) Whenever informant records maintained by a criminal law enforcement agency under an
informant’s name or personal identifier are requested by a third party according to the
informant’s name or personal identifier, the agency may treat the records as not subject to the
requirements of this section unless the informant’s status as an informant has been officially
confirmed.
(3) Whenever a request is made which involves access to records maintained by the Federal
Bureau of Investigation pertaining to foreign intelligence or counterintelligence, or
international terrorism, and the existence of the records is classified information as provided in
subsection (b)(1), the Bureau may, as long as the existence of the records remains classified
information, treat the records as not subject to the requirements of this section.
(d) This section does not authorize withholding of information or limit the availability of records
to the public, except as specifically stated in this section. This section is not authority to withhold
information from Congress.
(e)
(1) On or before February 1 of each year, each agency shall submit to the Attorney General of
the United States and to the Director of the Office of Government Information Services a
report which shall cover the preceding fiscal year and which shall include—
(A) the number of determinations made by the agency not to comply with requests for
records made to such agency under subsection (a) and the reasons for each such
determination;
(B)
(i) the number of appeals made by persons under subsection (a)(6), the result of such
appeals, and the reason for the action upon each appeal that results in a denial of
information; and
(ii) a complete list of all statutes that the agency relies upon to authorize the agency to
withhold information under subsection (b)(3), the number of occasions on which each
statute was relied upon, a description of whether a court has upheld the decision of the
agency to withhold information under each such statute, and a concise description of
the scope of any information withheld;

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(C) the number of requests for records pending before the agency as of September 30 of
the preceding year, and the median and average number of days that such requests had
been pending before the agency as of that date;
(D) the number of requests for records received by the agency and the number of requests
which the agency processed;
(E) the median number of days taken by the agency to process different types of requests,
based on the date on which the requests were received by the agency;
(F) the average number of days for the agency to respond to a request beginning on the
date on which the request was received by the agency, the median number of days for the
agency to respond to such requests, and the range in number of days for the agency to
respond to such requests;
(G) based on the number of business days that have elapsed since each request was
originally received by the agency—
(i) the number of requests for records to which the agency has responded with a
determination within a period up to and including 20 days, and in 20-day increments up
to and including 200 days;
(ii) the number of requests for records to which the agency has responded with a
determination within a period greater than 200 days and less than 301 days;
(iii) the number of requests for records to which the agency has responded with a
determination within a period greater than 300 days and less than 401 days; and
(iv) the number of requests for records to which the agency has responded with a
determination within a period greater than 400 days;
(H) the average number of days for the agency to provide the granted information
beginning on the date on which the request was originally filed, the median number of days
for the agency to provide the granted information, and the range in number of days for the
agency to provide the granted information;
(I) the median and average number of days for the agency to respond to administrative
appeals based on the date on which the appeals originally were received by the agency, the
highest number of business days taken by the agency to respond to an administrative
appeal, and the lowest number of business days taken by the agency to respond to an
administrative appeal;
(J) data on the 10 active requests with the earliest filing dates pending at each agency,
including the amount of time that has elapsed since each request was originally received by
the agency;
(K) data on the 10 active administrative appeals with the earliest filing dates pending
before the agency as of September 30 of the preceding year, including the number of
business days that have elapsed since the requests were originally received by the agency;
(L) the number of expedited review requests that are granted and denied, the average and
median number of days for adjudicating expedited review requests, and the number
adjudicated within the required 10 days;

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(M) the number of fee waiver requests that are granted and denied, and the average and
median number of days for adjudicating fee waiver determinations;
(N) the total amount of fees collected by the agency for processing requests;
(O) the number of full-time staff of the agency devoted to processing requests for records
under this section, and the total amount expended by the agency for processing such
requests;
(P) the number of times the agency denied a request for records under subsection (c); and
(Q) the number of records that were made available for public inspection in an electronic
format under subsection (a)(2).
(2) Information in each report submitted under paragraph (1) shall be expressed in terms of
each principal component of the agency and for the agency overall.
(3) Each agency shall make each such report available for public inspection in an electronic
format. In addition, each agency shall make the raw statistical data used in each report
available in a timely manner for public inspection in an electronic format, which shall be made
available—
(A) without charge, license, or registration requirement;
(B) in an aggregated, searchable format; and
(C) in a format that may be downloaded in bulk.
(4) The Attorney General of the United States shall make each report which has been made
available by electronic means available at a single electronic access point. The Attorney
General of the United States shall notify the Chairman and ranking minority member of the
Committee on Oversight and Government Reform of the House of Representatives and the
Chairman and ranking minority member of the Committees on Homeland Security and
Governmental Affairs and the Judiciary of the Senate, no later than March 1 of the year in
which each such report is issued, that such reports are available by electronic means.
(5) The Attorney General of the United States, in consultation with the Director of the Office
of Management and Budget, shall develop reporting and performance guidelines in connection
with reports required by this subsection by October 1, 1997, and may establish additional
requirements for such reports as the Attorney General determines may be useful.
(6)
(A) The Attorney General of the United States shall submit to the Committee on Oversight
and Government Reform of the House of Representatives, the Committee on the Judiciary
of the Senate, and the President a report on or before March 1 of each calendar year, which
shall include for the prior calendar year—
(i) a listing of the number of cases arising under this section;
(ii) a listing of—
(I) each subsection, and any exemption, if applicable, involved in each case arising
under this section;
(II) the disposition of each case arising under this section; and

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(III) the cost, fees, and penalties assessed under subparagraphs (E), (F), and (G) of
subsection (a)(4); and
(iii) a description of the efforts undertaken by the Department of Justice to encourage
agency compliance with this section.
(B) The Attorney General of the United States shall make—
(i) each report submitted under subparagraph (A) available for public inspection in an
electronic format; and
(ii) the raw statistical data used in each report submitted under subparagraph (A)
available for public inspection in an electronic format, which shall be made available—
(I) without charge, license, or registration requirement;
(II) in an aggregated, searchable format; and
(III) in a format that may be downloaded in bulk.
(f) For purposes of this section, the term—
(1) “agency” as defined in section 551(1) of this title [5 USCS § 551(1)] includes any
executive department, military department, Government corporation, Government controlled
corporation, or other establishment in the executive branch of the Government (including the
Executive Office of the President), or any independent regulatory agency; and
(2) “record” and any other term used in this section in reference to information includes—
(A) any information that would be an agency record subject to the requirements of this
section when maintained by an agency in any format, including an electronic format; and
(B) any information described under subparagraph (A) that is maintained for an agency by
an entity under Government contract, for the purposes of records management.
(g) The head of each agency shall prepare and make available for public inspection in an
electronic format, reference material or a guide for requesting records or information from the
agency, subject to the exemptions in subsection (b), including—
(1) an index of all major information systems of the agency;
(2) a description of major information and record locator systems maintained by the agency;
and
(3) a handbook for obtaining various types and categories of public information from the
agency pursuant to chapter 35 of title 44 [44 USCS §§ 3501 et seq.], and under this section.
(h)
(1) There is established the Office of Government Information Services within the National
Archives and Records Administration. The head of the Office shall be the Director of the
Office of Government Information Services.
(2) The Office of Government Information Services shall—
(A) review policies and procedures of administrative agencies under this section;
(B) review compliance with this section by administrative agencies; and

Page 16 of 19
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(C) identify procedures and methods for improving compliance under this section.
(3) The Office of Government Information Services shall offer mediation services to resolve
disputes between persons making requests under this section and administrative agencies as a
nonexclusive alternative to litigation and may issue advisory opinions at the discretion of the
Office or upon request of any party to a dispute.
(4)
(A) Not less frequently than annually, the Director of the Office of Government
Information Services shall submit to the Committee on Oversight and Government Reform
of the House of Representatives, the Committee on the Judiciary of the Senate, and the
President—
(i) a report on the findings of the information reviewed and identified under paragraph
(2);
(ii) a summary of the activities of the Office of Government Information Services
under paragraph (3), including—
(I) any advisory opinions issued; and
(II) the number of times each agency engaged in dispute resolution with the
assistance of the Office of Government Information Services or the FOIA Public
Liaison; and
(iii) legislative and regulatory recommendations, if any, to improve the administration
of this section.
(B) The Director of the Office of Government Information Services shall make each report
submitted under subparagraph (A) available for public inspection in an electronic format.
(C) The Director of the Office of Government Information Services shall not be required
to obtain the prior approval, comment, or review of any officer or agency of the United
States, including the Department of Justice, the Archivist of the United States, or the Office
of Management and Budget before submitting to Congress, or any committee or
subcommittee thereof, any reports, recommendations, testimony, or comments, if such
submissions include a statement indicating that the views expressed therein are those of the
Director and do not necessarily represent the views of the President.
(5) The Director of the Office of Government Information Services may directly submit
additional information to Congress and the President as the Director determines to be
appropriate.
(6) Not less frequently than annually, the Office of Government Information Services shall
conduct a meeting that is open to the public on the review and reports by the Office and shall
allow interested persons to appear and present oral or written statements at the meeting.
(i) The Government Accountability Office shall conduct audits of administrative agencies on the
implementation of this section and issue reports detailing the results of such audits.
(j)
(1) Each agency shall designate a Chief FOIA Officer who shall be a senior official of such
agency (at the Assistant Secretary or equivalent level).

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(2) The Chief FOIA Officer of each agency shall, subject to the authority of the head of the
agency—
(A) have agency-wide responsibility for efficient and appropriate compliance with this
section;
(B) monitor implementation of this section throughout the agency and keep the head of the
agency, the chief legal officer of the agency, and the Attorney General appropriately
informed of the agency’s performance in implementing this section;
(C) recommend to the head of the agency such adjustments to agency practices, policies,
personnel, and funding as may be necessary to improve its implementation of this section;
(D) review and report to the Attorney General, through the head of the agency, at such
times and in such formats as the Attorney General may direct, on the agency’s performance
in implementing this section;
(E) facilitate public understanding of the purposes of the statutory exemptions of this
section by including concise descriptions of the exemptions in both the agency’s handbook
issued under subsection (g), and the agency’s annual report on this section, and by
providing an overview, where appropriate, of certain general categories of agency records
to which those exemptions apply;
(F) offer training to agency staff regarding their responsibilities under this section;
(G) serve as the primary agency liaison with the Office of Government Information
Services and the Office of Information Policy; and
(H) designate 1 or more FOIA Public Liaisons.
(3) The Chief FOIA Officer of each agency shall review, not less frequently than annually, all
aspects of the administration of this section by the agency to ensure compliance with the
requirements of this section, including—
(A) agency regulations;
(B) disclosure of records required under paragraphs (2) and (8) of subsection (a);
(C) assessment of fees and determination of eligibility for fee waivers;
(D) the timely processing of requests for information under this section;
(E) the use of exemptions under subsection (b); and
(F) dispute resolution services with the assistance of the Office of Government
Information Services or the FOIA Public Liaison.
(k)
(1) There is established in the executive branch the Chief FOIA Officers Council (referred to
in this subsection as the “Council”).
(2) The Council shall be comprised of the following members:
(A) The Deputy Director for Management of the Office of Management and Budget.
(B) The Director of the Office of Information Policy at the Department of Justice.

Page 18 of 19
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(C) The Director of the Office of Government Information Services.
(D) The Chief FOIA Officer of each agency.
(E) Any other officer or employee of the United States as designated by the Co-Chairs.
(3) The Director of the Office of Information Policy at the Department of Justice and the
Director of the Office of Government Information Services shall be the Co-Chairs of the
Council.
(4) The Administrator of General Services shall provide administrative and other support for
the Council.
(5)
(A) The duties of the Council shall include the following:
(i) Develop recommendations for increasing compliance and efficiency under this
section.
(ii) Disseminate information about agency experiences, ideas, best practices, and
innovative approaches related to this section.
(iii) Identify, develop, and coordinate initiatives to increase transparency and
compliance with this section.
(iv) Promote the development and use of common performance measures for agency
compliance with this section.
(B) In performing the duties described in subparagraph (A), the Council shall consult on a
regular basis with members of the public who make requests under this section.
(6)
(A) The Council shall meet regularly and such meetings shall be open to the public unless
the Council determines to close the meeting for reasons of national security or to discuss
information exempt under subsection (b).
(B) Not less frequently than annually, the Council shall hold a meeting that shall be open
to the public and permit interested persons to appear and present oral and written
statements to the Council.
(C) Not later than 10 business days before a meeting of the Council, notice of such
meeting shall be published in the Federal Register.
(D) Except as provided in subsection (b), the records, reports, transcripts, minutes,
appendices, working papers, drafts, studies, agenda, or other documents that were made
available to or prepared for or by the Council shall be made publicly available.
(E) Detailed minutes of each meeting of the Council shall be kept and shall contain a
record of the persons present, a complete and accurate description of matters discussed and
conclusions reached, and copies of all reports received, issued, or approved by the Council.
The minutes shall be redacted as necessary and made publicly available.
(l) FOIA Public Liaisons shall report to the agency Chief FOIA Officer and shall serve as
supervisory officials to whom a requester under this section can raise concerns about the service
the requester has received from the FOIA Requester Center, following an initial response from the

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FOIA Requester Center Staff. FOIA Public Liaisons shall be responsible for assisting in reducing
delays, increasing transparency and understanding of the status of requests, and assisting in the
resolution of disputes.
(m)
(1) The Director of the Office of Management and Budget, in consultation with the Attorney
General, shall ensure the operation of a consolidated online request portal that allows a
member of the public to submit a request for records under subsection (a) to any agency from a
single website. The portal may include any additional tools the Director of the Office of
Management and Budget finds will improve the implementation of this section.
(2) This subsection shall not be construed to alter the power of any other agency to create or
maintain an independent online portal for the submission of a request for records under this
section. The Director of the Office of Management and Budget shall establish standards for
interoperability between the portal required under paragraph (1) and other request processing
software used by agencies subject to this section.

History

HISTORY:
Sept. 6, 1966, P.L. 89-554, § 1, 80 Stat. 383; June 5, 1967, P. L. 90-23 § 1, 81 Stat. 54; Nov. 21, 1974, P.
L. 93-502, §§ 1–3, 88 Stat. 1561, 1563, 1564; Sept. 13, 1976, P. L. 94-409, § 5(b), 90 Stat. 1247; Oct. 13,
1978, P. L. 95-454, Title IX, § 906(a)(10), 92 Stat. 1225; Nov. 8, 1984, P. L. 98-620, Title IV, Subtitle A,
§ 402(2), 98 Stat. 3357; Oct. 27, 1986, P. L. 99-570, Title I, Subtitle N, §§ 1802, 1803, 100 Stat. 3207-48,
3207-49; Oct. 2, 1996, P. L. 104-231, §§ 3–11, 110 Stat. 3049; Nov. 27, 2002, P. L. 107-306, Title III,
Subtitle B, § 312, 116 Stat. 2390; Dec. 31, 2007, P. L. 110-175, §§ 3, 4(a), 5, 6(a)(1), (b)(1), 7(a), 8–10(a),
12, 121 Stat. 2525, 2526, 2527, 2530; Oct. 28, 2009, P. L. 111-83, Title V, § 564(b), 123 Stat. 2184; June
30, 2016, P. L. 114-185, § 2, 130 Stat. 538.
United States Code Service
Copyright © 2022 All rights reserved.

End of Document

5 USCS § 552, Part 4 of 4
Current through Public Law 117-166, approved August 5, 2022.
United States Code Service > TITLE 5. GOVERNMENT ORGANIZATION AND EMPLOYEES (§§ 101 —
11001) > Part I. The Agencies Generally (Chs. 1 — 9) > CHAPTER 5. Administrative Procedure (Subchs. I —
V) > Subchapter II. Administrative Procedure (§§ 551 — 559)

§ 552. Public information; agency rules, opinions, orders, records, and proceedings
(a) Each agency shall make available to the public information as follows:
(1) Each agency shall separately state and currently publish in the Federal Register for the
guidance of the public—
(A) descriptions of its central and field organization and the established places at which,
the employees (and in the case of a uniformed service, the members) from whom, and the
methods whereby, the public may obtain information, make submittals or requests, or
obtain decisions;
(B) statements of the general course and method by which its functions are channeled and
determined, including the nature and requirements of all formal and informal procedures
available;
(C) rules of procedure, descriptions of forms available or the places at which forms may
be obtained, and instructions as to the scope and contents of all papers, reports, or
examinations;
(D) substantive rules of general applicability adopted as authorized by law, and statements
of general policy or interpretations of general applicability formulated and adopted by the
agency; and
(E) each amendment, revision, or repeal of the foregoing.
Except to the extent that a person has actual and timely notice of the terms thereof, a person
may not in any manner be required to resort to, or be adversely affected by, a matter required
to be published in the Federal Register and not so published. For the purpose of this paragraph,
matter reasonably available to the class of persons affected thereby is deemed published in the
Federal Register when incorporated by reference therein with the approval of the Director of
the Federal Register.
(2) Each agency, in accordance with published rules, shall make available for public
inspection in an electronic format—
(A) final opinions, including concurring and dissenting opinions, as well as orders, made
in the adjudication of cases;
(B) those statements of policy and interpretations which have been adopted by the agency
and are not published in the Federal Register;

Page 2 of 19
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(C) administrative staff manuals and instructions to staff that affect a member of the
public;
(D) copies of all records, regardless of form or format—
(i) that have been released to any person under paragraph (3); and
(ii)
(I) that because of the nature of their subject matter, the agency determines have
become or are likely to become the subject of subsequent requests for substantially
the same records; or
(II) that have been requested 3 or more times; and
(E) a general index of the records referred to under subparagraph (D);
unless the materials are promptly published and copies offered for sale. For records created on
or after November 1, 1996, within one year after such date, each agency shall make such
records available, including by computer telecommunications or, if computer
telecommunications means have not been established by the agency, by other electronic
means. To the extent required to prevent a clearly unwarranted invasion of personal privacy, an
agency may delete identifying details when it makes available or publishes an opinion,
statement of policy, interpretation, staff manual, instruction, or copies of records referred to in
subparagraph (D). However, in each case the justification for the deletion shall be explained
fully in writing, and the extent of such deletion shall be indicated on the portion of the record
which is made available or published, unless including that indication would harm an interest
protected by the exemption in subsection (b) under which the deletion is made. If technically
feasible, the extent of the deletion shall be indicated at the place in the record where the
deletion was made. Each agency shall also maintain and make available for public inspection
in an electronic format current indexes providing identifying information for the public as to
any matter issued, adopted, or promulgated after July 4, 1967, and required by this paragraph
to be made available or published. Each agency shall make the index referred to in
subparagraph (E) available by computer telecommunications by December 31, 1999. Each
agency shall promptly publish, quarterly or more frequently, and distribute (by sale or
otherwise) copies of each index or supplements thereto unless it determines by order published
in the Federal Register that the publication would be unnecessary and impracticable, in which
case the agency shall nonetheless provide copies of such index on request at a cost not to
exceed the direct cost of duplication. A final order, opinion, statement of policy,
interpretation, or staff manual or instruction that affects a member of the public may be relied
on, used, or cited as precedent by an agency against a party other than an agency only if—
(i) it has been indexed and either made available or published as provided by this
paragraph; or
(ii) the party has actual and timely notice of the terms thereof.
(3)
(A) Except with respect to the records made available under paragraphs (1) and (2) of this
subsection, and except as provided in subparagraph (E), each agency, upon any request for
records which (i) reasonably describes such records and (ii) is made in accordance with

Page 3 of 19
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published rules stating the time, place, fees (if any), and procedures to be followed, shall
make the records promptly available to any person.
(B) In making any record available to a person under this paragraph, an agency shall
provide the record in any form or format requested by the person if the record is readily
reproducible by the agency in that form or format. Each agency shall make reasonable
efforts to maintain its records in forms or formats that are reproducible for purposes of this
section.
(C) In responding under this paragraph to a request for records, an agency shall make
reasonable efforts to search for the records in electronic form or format, except when such
efforts would significantly interfere with the operation of the agency’s automated
information system.
(D) For purposes of this paragraph, the term “search” means to review, manually or by
automated means, agency records for the purpose of locating those records which are
responsive to a request.
(E) An agency, or part of an agency, that is an element of the intelligence community (as
that term is defined in section 3(4) of the National Security Act of 1947 (50 U.S.C.
401a(4)) [50 USCS § 3003]) shall not make any record available under this paragraph to—
(i) any government entity, other than a State, territory, commonwealth, or district of
the United States, or any subdivision thereof; or
(ii) a representative of a government entity described in clause (i).
(4)
(A)
(i) In order to carry out the provisions of this section, each agency shall promulgate
regulations, pursuant to notice and receipt of public comment, specifying the schedule
of fees applicable to the processing of requests under this section and establishing
procedures and guidelines for determining when such fees should be waived or
reduced. Such schedule shall conform to the guidelines which shall be promulgated,
pursuant to notice and receipt of public comment, by the Director of the Office of
Management and Budget and which shall provide for a uniform schedule of fees for all
agencies.
(ii) Such agency regulations shall provide that—
(I) fees shall be limited to reasonable standard charges for document search,
duplication, and review, when records are requested for commercial use;
(II) fees shall be limited to reasonable standard charges for document duplication
when records are not sought for commercial use and the request is made by an
educational or noncommercial scientific institution, whose purpose is scholarly or
scientific research; or a representative of the news media; and
(III) for any request not described in (I) or (II), fees shall be limited to reasonable
standard charges for document search and duplication.

Page 4 of 19
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In this clause, the term “a representative of the news media” means any person or entity
that gathers information of potential interest to a segment of the public, uses its
editorial skills to turn the raw materials into a distinct work, and distributes that work to
an audience. In this clause, the term “news” means information that is about current
events or that would be of current interest to the public. Examples of news-media
entities are television or radio stations broadcasting to the public at large and publishers
of periodicals (but only if such entities qualify as disseminators of “news”) who make
their products available for purchase by or subscription by or free distribution to the
general public. These examples are not all-inclusive. Moreover, as methods of news
delivery evolve (for example, the adoption of the electronic dissemination of
newspapers through telecommunications services), such alternative media shall be
considered to be news-media entities. A freelance journalist shall be regarded as
working for a news-media entity if the journalist can demonstrate a solid basis for
expecting publication through that entity, whether or not the journalist is actually
employed by the entity. A publication contract would present a solid basis for such an
expectation; the Government may also consider the past publication record of the
requester in making such a determination.
(iii) Documents shall be furnished without any charge or at a charge reduced below the
fees established under clause (ii) if disclosure of the information is in the public interest
because it is likely to contribute significantly to public understanding of the operations
or activities of the government and is not primarily in the commercial interest of the
requester.
(iv) Fee schedules shall provide for the recovery of only the direct costs of search,
duplication, or review. Review costs shall include only the direct costs incurred during
the initial examination of a document for the purposes of determining whether the
documents must be disclosed under this section and for the purposes of withholding
any portions exempt from disclosure under this section. Review costs may not include
any costs incurred in resolving issues of law or policy that may be raised in the course
of processing a request under this section. No fee may be charged by any agency under
this section—
(I) if the costs of routine collection and processing of the fee are likely to equal or
exceed the amount of the fee; or
(II) for any request described in clause (ii)(II) or (III) of this subparagraph for the
first two hours of search time or for the first one hundred pages of duplication.
(v) No agency may require advance payment of any fee unless the requester has
previously failed to pay fees in a timely fashion, or the agency has determined that the
fee will exceed $250.
(vi) Nothing in this subparagraph shall supersede fees chargeable under a statute
specifically providing for setting the level of fees for particular types of records.
(vii) In any action by a requester regarding the waiver of fees under this section, the
court shall determine the matter de novo: Provided, That the court’s review of the
matter shall be limited to the record before the agency.
(viii)

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5 USCS § 552, Part 4 of 4

(I) Except as provided in subclause (II), an agency shall not assess any search fees
(or in the case of a requester described under clause (ii)(II) of this subparagraph,
duplication fees) under this subparagraph if the agency has failed to comply with
any time limit under paragraph (6).
(II)
(aa) If an agency has determined that unusual circumstances apply (as the term
is defined in paragraph (6)(B)) and the agency provided a timely written notice
to the requester in accordance with paragraph (6)(B), a failure described in
subclause (I) is excused for an additional 10 days. If the agency fails to comply
with the extended time limit, the agency may not assess any search fees (or in
the case of a requester described under clause (ii)(II) of this subparagraph,
duplication fees).
(bb) If an agency has determined that unusual circumstances apply and more
than 5,000 pages are necessary to respond to the request, an agency may charge
search fees (or in the case of a requester described under clause (ii)(II) of this
subparagraph, duplication fees) if the agency has provided a timely written
notice to the requester in accordance with paragraph (6)(B) and the agency has
discussed with the requester via written mail, electronic mail, or telephone (or
made not less than 3 good-faith attempts to do so) how the requester could
effectively limit the scope of the request in accordance with paragraph
(6)(B)(ii).
(cc) If a court has determined that exceptional circumstances exist (as that term
is defined in paragraph (6)(C)), a failure described in subclause (I) shall be
excused for the length of time provided by the court order.
(B) On complaint, the district court of the United States in the district in which the
complainant resides, or has his principal place of business, or in which the agency records
are situated, or in the District of Columbia, has jurisdiction to enjoin the agency from
withholding agency records and to order the production of any agency records improperly
withheld from the complainant. In such a case the court shall determine the matter de novo,
and may examine the contents of such agency records in camera to determine whether such
records or any part thereof shall be withheld under any of the exemptions set forth in
subsection (b) of this section, and the burden is on the agency to sustain its action. In
addition to any other matters to which a court accords substantial weight, a court shall
accord substantial weight to an affidavit of an agency concerning the agency’s
determination as to technical feasibility under paragraph (2)(C) and subsection (b) and
reproducibility under paragraph (3)(B).
(C) Notwithstanding any other provision of law, the defendant shall serve an answer or
otherwise plead to any complaint made under this subsection within thirty days after
service upon the defendant of the pleading in which such complaint is made, unless the
court otherwise directs for good cause shown.
(D) [Repealed]
(E)

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(i) The court may assess against the United States reasonable attorney fees and other
litigation costs reasonably incurred in any case under this section in which the
complainant has substantially prevailed.
(ii) For purposes of this subparagraph, a complainant has substantially prevailed if the
complainant has obtained relief through either—
(I) a judicial order, or an enforceable written agreement or consent decree; or
(II) a voluntary or unilateral change in position by the agency, if the complainant’s
claim is not insubstantial.
(F)
(i) Whenever the court orders the production of any agency records improperly
withheld from the complainant and assesses against the United States reasonable
attorney fees and other litigation costs, and the court additionally issues a written
finding that the circumstances surrounding the withholding raise questions whether
agency personnel acted arbitrarily or capriciously with respect to the withholding, the
Special Counsel shall promptly initiate a proceeding to determine whether disciplinary
action is warranted against the officer or employee who was primarily responsible for
the withholding. The Special Counsel, after investigation and consideration of the
evidence submitted, shall submit his findings and recommendations to the
administrative authority of the agency concerned and shall send copies of the findings
and recommendations to the officer or employee or his representative. The
administrative authority shall take the corrective action that the Special Counsel
recommends.
(ii) The Attorney General shall—
(I) notify the Special Counsel of each civil action described under the first sentence
of clause (i); and
(II) annually submit a report to Congress on the number of such civil actions in the
preceding year.
(iii) The Special Counsel shall annually submit a report to Congress on the actions
taken by the Special Counsel under clause (i).
(G) In the event of noncompliance with the order of the court, the district court may
punish for contempt the responsible employee, and in the case of a uniformed service, the
responsible member.
(5) Each agency having more than one member shall maintain and make available for public
inspection a record of the final votes of each member in every agency proceeding.
(6)
(A) Each agency, upon any request for records made under paragraph (1), (2), or (3) of
this subsection, shall—
(i) determine within 20 days (excepting Saturdays, Sundays, and legal public holidays)
after the receipt of any such request whether to comply with such request and shall
immediately notify the person making such request of—

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(I) such determination and the reasons therefor;
(II) the right of such person to seek assistance from the FOIA Public Liaison of the
agency; and
(III) in the case of an adverse determination—
(aa) the right of such person to appeal to the head of the agency, within a
period determined by the head of the agency that is not less than 90 days after
the date of such adverse determination; and
(bb) the right of such person to seek dispute resolution services from the FOIA
Public Liaison of the agency or the Office of Government Information Services;
and
(ii) make a determination with respect to any appeal within twenty days (excepting
Saturdays, Sundays, and legal public holidays) after the receipt of such appeal. If on
appeal the denial of the request for records is in whole or in part upheld, the agency
shall notify the person making such request of the provisions for judicial review of that
determination under paragraph (4) of this subsection.
The 20-day period under clause (i) shall commence on the date on which the request is first
received by the appropriate component of the agency, but in any event not later than ten
days after the request is first received by any component of the agency that is designated in
the agency’s regulations under this section to receive requests under this section. The 20day period shall not be tolled by the agency except—
(I) that the agency may make one request to the requester for information and toll the
20-day period while it is awaiting such information that it has reasonably requested
from the requester under this section; or
(II) if necessary to clarify with the requester issues regarding fee assessment. In either
case, the agency’s receipt of the requester’s response to the agency’s request for
information or clarification ends the tolling period.
(B)
(i) In unusual circumstances as specified in this subparagraph, the time limits
prescribed in either clause (i) or clause (ii) of subparagraph (A) may be extended by
written notice to the person making such request setting forth the unusual
circumstances for such extension and the date on which a determination is expected to
be dispatched. No such notice shall specify a date that would result in an extension for
more than ten working days, except as provided in clause (ii) of this subparagraph.
(ii) With respect to a request for which a written notice under clause (i) extends the
time limits prescribed under clause (i) of subparagraph (A), the agency shall notify the
person making the request if the request cannot be processed within the time limit
specified in that clause and shall provide the person an opportunity to limit the scope of
the request so that it may be processed within that time limit or an opportunity to
arrange with the agency an alternative time frame for processing the request or a
modified request. To aid the requester, each agency shall make available its FOIA
Public Liaison, who shall assist in the resolution of any disputes between the requester

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and the agency, and notify the requester of the right of the requester to seek dispute
resolution services from the Office of Government Information Services. Refusal by
the person to reasonably modify the request or arrange such an alternative time frame
shall be considered as a factor in determining whether exceptional circumstances exist
for purposes of subparagraph (C).
(iii) As used in this subparagraph, “unusual circumstances” means, but only to the
extent reasonably necessary to the proper processing of the particular requests—
(I) the need to search for and collect the requested records from field facilities or
other establishments that are separate from the office processing the request;
(II) the need to search for, collect, and appropriately examine a voluminous
amount of separate and distinct records which are demanded in a single request; or
(III) the need for consultation, which shall be conducted with all practicable speed,
with another agency having a substantial interest in the determination of the request
or among two or more components of the agency having substantial subject-matter
interest therein.
(iv) Each agency may promulgate regulations, pursuant to notice and receipt of public
comment, providing for the aggregation of certain requests by the same requestor, or by
a group of requestors acting in concert, if the agency reasonably believes that such
requests actually constitute a single request, which would otherwise satisfy the unusual
circumstances specified in this subparagraph, and the requests involve clearly related
matters. Multiple requests involving unrelated matters shall not be aggregated.
(C)
(i) Any person making a request to any agency for records under paragraph (1), (2), or
(3) of this subsection shall be deemed to have exhausted his administrative remedies
with respect to such request if the agency fails to comply with the applicable time limit
provisions of this paragraph. If the Government can show exceptional circumstances
exist and that the agency is exercising due diligence in responding to the request, the
court may retain jurisdiction and allow the agency additional time to complete its
review of the records. Upon any determination by an agency to comply with a request
for records, the records shall be made promptly available to such person making such
request. Any notification of denial of any request for records under this subsection shall
set forth the names and titles or positions of each person responsible for the denial of
such request.
(ii) For purposes of this subparagraph, the term “exceptional circumstances” does not
include a delay that results from a predictable agency workload of requests under this
section, unless the agency demonstrates reasonable progress in reducing its backlog of
pending requests.
(iii) Refusal by a person to reasonably modify the scope of a request or arrange an
alternative time frame for processing a request (or a modified request) under clause (ii)
after being given an opportunity to do so by the agency to whom the person made the
request shall be considered as a factor in determining whether exceptional
circumstances exist for purposes of this subparagraph.

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(D)
(i) Each agency may promulgate regulations, pursuant to notice and receipt of public
comment, providing for multitrack processing of requests for records based on the
amount of work or time (or both) involved in processing requests.
(ii) Regulations under this subparagraph may provide a person making a request that
does not qualify for the fastest multitrack processing an opportunity to limit the scope
of the request in order to qualify for faster processing.
(iii) This subparagraph shall not be considered to affect the requirement under
subparagraph (C) to exercise due diligence.
(E)
(i) Each agency shall promulgate regulations, pursuant to notice and receipt of public
comment, providing for expedited processing of requests for records—
(I) in cases in which the person requesting the records demonstrates a compelling
need; and
(II) in other cases determined by the agency.
(ii) Notwithstanding clause (i), regulations under this subparagraph must ensure—
(I) that a determination of whether to provide expedited processing shall be made,
and notice of the determination shall be provided to the person making the request,
within 10 days after the date of the request; and
(II) expeditious consideration of administrative appeals of such determinations of
whether to provide expedited processing.
(iii) An agency shall process as soon as practicable any request for records to which
the agency has granted expedited processing under this subparagraph. Agency action to
deny or affirm denial of a request for expedited processing pursuant to this
subparagraph, and failure by an agency to respond in a timely manner to such a request
shall be subject to judicial review under paragraph (4), except that the judicial review
shall be based on the record before the agency at the time of the determination.
(iv) A district court of the United States shall not have jurisdiction to review an agency
denial of expedited processing of a request for records after the agency has provided a
complete response to the request.
(v) For purposes of this subparagraph, the term “compelling need” means—
(I) that a failure to obtain requested records on an expedited basis under this
paragraph could reasonably be expected to pose an imminent threat to the life or
physical safety of an individual; or
(II) with respect to a request made by a person primarily engaged in disseminating
information, urgency to inform the public concerning actual or alleged Federal
Government activity.

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(vi) A demonstration of a compelling need by a person making a request for expedited
processing shall be made by a statement certified by such person to be true and correct
to the best of such person’s knowledge and belief.
(F) In denying a request for records, in whole or in part, an agency shall make a
reasonable effort to estimate the volume of any requested matter the provision of which is
denied, and shall provide any such estimate to the person making the request, unless
providing such estimate would harm an interest protected by the exemption in subsection
(b) pursuant to which the denial is made.
(7) Each agency shall—
(A) establish a system to assign an individualized tracking number for each request
received that will take longer than ten days to process and provide to each person making a
request the tracking number assigned to the request; and
(B) establish a telephone line or Internet service that provides information about the status
of a request to the person making the request using the assigned tracking number,
including—
(i) the date on which the agency originally received the request; and
(ii) an estimated date on which the agency will complete action on the request.
(8)
(A) An agency shall—
(i) withhold information under this section only if—
(I) the agency reasonably foresees that disclosure would harm an interest protected
by an exemption described in subsection (b); or
(II) disclosure is prohibited by law; and
(ii)
(I) consider whether partial disclosure of information is possible whenever the
agency determines that a full disclosure of a requested record is not possible; and
(II) take reasonable steps necessary to segregate and release nonexempt
information; and
(B) Nothing in this paragraph requires disclosure of information that is otherwise
prohibited from disclosure by law, or otherwise exempted from disclosure under subsection
(b)(3).
(b) This section does not apply to matters that are—
(1)
(A) specifically authorized under criteria established by an Executive order to be kept
secret in the interest of national defense or foreign policy and (B) are in fact properly
classified pursuant to such Executive order;
(2) related solely to the internal personnel rules and practices of an agency;

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(3) specifically exempted from disclosure by statute (other than section 552b of this title [5
USCS § 552b]), if that statute—
(A)
(i) requires that the matters be withheld from the public in such a manner as to leave
no discretion on the issue; or
(ii) establishes particular criteria for withholding or refers to particular types of matters
to be withheld; and
(B) if enacted after the date of enactment of the OPEN FOIA Act of 2009 [enacted Oct.
28, 2009], specifically cites to this paragraph.
(4) trade secrets and commercial or financial information obtained from a person and
privileged or confidential;
(5) inter-agency or intra-agency memorandums or letters that would not be available by law to
a party other than an agency in litigation with the agency, provided that the deliberative
process privilege shall not apply to records created 25 years or more before the date on which
the records were requested;
(6) personnel and medical files and similar files the disclosure of which would constitute a
clearly unwarranted invasion of personal privacy;
(7) records or information compiled for law enforcement purposes, but only to the extent that
the production of such law enforcement records or information (A) could reasonably be
expected to interfere with enforcement proceedings, (B) would deprive a person of a right to a
fair trial or an impartial adjudication, (C) could reasonably be expected to constitute an
unwarranted invasion of personal privacy, (D) could reasonably be expected to disclose the
identity of a confidential source, including a State, local, or foreign agency or authority or any
private institution which furnished information on a confidential basis, and, in the case of a
record or information compiled by criminal law enforcement authority in the course of a
criminal investigation or by an agency conducting a lawful national security intelligence
investigation, information furnished by a confidential source, (E) would disclose techniques
and procedures for law enforcement investigations or prosecutions, or would disclose
guidelines for law enforcement investigations or prosecutions if such disclosure could
reasonably be expected to risk circumvention of the law, or (F) could reasonably be expected
to endanger the life or physical safety of any individual;
(8) contained in or related to examination, operating, or condition reports prepared by, on
behalf of, or for the use of an agency responsible for the regulation or supervision of financial
institutions; or
(9) geological or geophysical information and data, including maps, concerning wells.
Any reasonably segregable portion of a record shall be provided to any person requesting such
record after deletion of the portions which are exempt under this subsection. The amount of
information deleted, and the exemption under which the deletion is made, shall be indicated on the
released portion of the record, unless including that indication would harm an interest protected by
the exemption in this subsection under which the deletion is made. If technically feasible, the

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amount of the information deleted, and the exemption under which the deletion is made, shall be
indicated at the place in the record where such deletion is made.
(c)
(1) Whenever a request is made which involves access to records described in subsection
(b)(7)(A) and—
(A) the investigation or proceeding involves a possible violation of criminal law; and
(B) there is reason to believe that (i) the subject of the investigation or proceeding is not
aware of its pendency, and (ii) disclosure of the existence of the records could reasonably
be expected to interfere with enforcement proceedings,
the agency may, during only such time as that circumstance continues, treat the records as not
subject to the requirements of this section.
(2) Whenever informant records maintained by a criminal law enforcement agency under an
informant’s name or personal identifier are requested by a third party according to the
informant’s name or personal identifier, the agency may treat the records as not subject to the
requirements of this section unless the informant’s status as an informant has been officially
confirmed.
(3) Whenever a request is made which involves access to records maintained by the Federal
Bureau of Investigation pertaining to foreign intelligence or counterintelligence, or
international terrorism, and the existence of the records is classified information as provided in
subsection (b)(1), the Bureau may, as long as the existence of the records remains classified
information, treat the records as not subject to the requirements of this section.
(d) This section does not authorize withholding of information or limit the availability of records
to the public, except as specifically stated in this section. This section is not authority to withhold
information from Congress.
(e)
(1) On or before February 1 of each year, each agency shall submit to the Attorney General of
the United States and to the Director of the Office of Government Information Services a
report which shall cover the preceding fiscal year and which shall include—
(A) the number of determinations made by the agency not to comply with requests for
records made to such agency under subsection (a) and the reasons for each such
determination;
(B)
(i) the number of appeals made by persons under subsection (a)(6), the result of such
appeals, and the reason for the action upon each appeal that results in a denial of
information; and
(ii) a complete list of all statutes that the agency relies upon to authorize the agency to
withhold information under subsection (b)(3), the number of occasions on which each
statute was relied upon, a description of whether a court has upheld the decision of the
agency to withhold information under each such statute, and a concise description of
the scope of any information withheld;

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(C) the number of requests for records pending before the agency as of September 30 of
the preceding year, and the median and average number of days that such requests had
been pending before the agency as of that date;
(D) the number of requests for records received by the agency and the number of requests
which the agency processed;
(E) the median number of days taken by the agency to process different types of requests,
based on the date on which the requests were received by the agency;
(F) the average number of days for the agency to respond to a request beginning on the
date on which the request was received by the agency, the median number of days for the
agency to respond to such requests, and the range in number of days for the agency to
respond to such requests;
(G) based on the number of business days that have elapsed since each request was
originally received by the agency—
(i) the number of requests for records to which the agency has responded with a
determination within a period up to and including 20 days, and in 20-day increments up
to and including 200 days;
(ii) the number of requests for records to which the agency has responded with a
determination within a period greater than 200 days and less than 301 days;
(iii) the number of requests for records to which the agency has responded with a
determination within a period greater than 300 days and less than 401 days; and
(iv) the number of requests for records to which the agency has responded with a
determination within a period greater than 400 days;
(H) the average number of days for the agency to provide the granted information
beginning on the date on which the request was originally filed, the median number of days
for the agency to provide the granted information, and the range in number of days for the
agency to provide the granted information;
(I) the median and average number of days for the agency to respond to administrative
appeals based on the date on which the appeals originally were received by the agency, the
highest number of business days taken by the agency to respond to an administrative
appeal, and the lowest number of business days taken by the agency to respond to an
administrative appeal;
(J) data on the 10 active requests with the earliest filing dates pending at each agency,
including the amount of time that has elapsed since each request was originally received by
the agency;
(K) data on the 10 active administrative appeals with the earliest filing dates pending
before the agency as of September 30 of the preceding year, including the number of
business days that have elapsed since the requests were originally received by the agency;
(L) the number of expedited review requests that are granted and denied, the average and
median number of days for adjudicating expedited review requests, and the number
adjudicated within the required 10 days;

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(M) the number of fee waiver requests that are granted and denied, and the average and
median number of days for adjudicating fee waiver determinations;
(N) the total amount of fees collected by the agency for processing requests;
(O) the number of full-time staff of the agency devoted to processing requests for records
under this section, and the total amount expended by the agency for processing such
requests;
(P) the number of times the agency denied a request for records under subsection (c); and
(Q) the number of records that were made available for public inspection in an electronic
format under subsection (a)(2).
(2) Information in each report submitted under paragraph (1) shall be expressed in terms of
each principal component of the agency and for the agency overall.
(3) Each agency shall make each such report available for public inspection in an electronic
format. In addition, each agency shall make the raw statistical data used in each report
available in a timely manner for public inspection in an electronic format, which shall be made
available—
(A) without charge, license, or registration requirement;
(B) in an aggregated, searchable format; and
(C) in a format that may be downloaded in bulk.
(4) The Attorney General of the United States shall make each report which has been made
available by electronic means available at a single electronic access point. The Attorney
General of the United States shall notify the Chairman and ranking minority member of the
Committee on Oversight and Government Reform of the House of Representatives and the
Chairman and ranking minority member of the Committees on Homeland Security and
Governmental Affairs and the Judiciary of the Senate, no later than March 1 of the year in
which each such report is issued, that such reports are available by electronic means.
(5) The Attorney General of the United States, in consultation with the Director of the Office
of Management and Budget, shall develop reporting and performance guidelines in connection
with reports required by this subsection by October 1, 1997, and may establish additional
requirements for such reports as the Attorney General determines may be useful.
(6)
(A) The Attorney General of the United States shall submit to the Committee on Oversight
and Government Reform of the House of Representatives, the Committee on the Judiciary
of the Senate, and the President a report on or before March 1 of each calendar year, which
shall include for the prior calendar year—
(i) a listing of the number of cases arising under this section;
(ii) a listing of—
(I) each subsection, and any exemption, if applicable, involved in each case arising
under this section;
(II) the disposition of each case arising under this section; and

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(III) the cost, fees, and penalties assessed under subparagraphs (E), (F), and (G) of
subsection (a)(4); and
(iii) a description of the efforts undertaken by the Department of Justice to encourage
agency compliance with this section.
(B) The Attorney General of the United States shall make—
(i) each report submitted under subparagraph (A) available for public inspection in an
electronic format; and
(ii) the raw statistical data used in each report submitted under subparagraph (A)
available for public inspection in an electronic format, which shall be made available—
(I) without charge, license, or registration requirement;
(II) in an aggregated, searchable format; and
(III) in a format that may be downloaded in bulk.
(f) For purposes of this section, the term—
(1) “agency” as defined in section 551(1) of this title [5 USCS § 551(1)] includes any
executive department, military department, Government corporation, Government controlled
corporation, or other establishment in the executive branch of the Government (including the
Executive Office of the President), or any independent regulatory agency; and
(2) “record” and any other term used in this section in reference to information includes—
(A) any information that would be an agency record subject to the requirements of this
section when maintained by an agency in any format, including an electronic format; and
(B) any information described under subparagraph (A) that is maintained for an agency by
an entity under Government contract, for the purposes of records management.
(g) The head of each agency shall prepare and make available for public inspection in an
electronic format, reference material or a guide for requesting records or information from the
agency, subject to the exemptions in subsection (b), including—
(1) an index of all major information systems of the agency;
(2) a description of major information and record locator systems maintained by the agency;
and
(3) a handbook for obtaining various types and categories of public information from the
agency pursuant to chapter 35 of title 44 [44 USCS §§ 3501 et seq.], and under this section.
(h)
(1) There is established the Office of Government Information Services within the National
Archives and Records Administration. The head of the Office shall be the Director of the
Office of Government Information Services.
(2) The Office of Government Information Services shall—
(A) review policies and procedures of administrative agencies under this section;
(B) review compliance with this section by administrative agencies; and

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(C) identify procedures and methods for improving compliance under this section.
(3) The Office of Government Information Services shall offer mediation services to resolve
disputes between persons making requests under this section and administrative agencies as a
nonexclusive alternative to litigation and may issue advisory opinions at the discretion of the
Office or upon request of any party to a dispute.
(4)
(A) Not less frequently than annually, the Director of the Office of Government
Information Services shall submit to the Committee on Oversight and Government Reform
of the House of Representatives, the Committee on the Judiciary of the Senate, and the
President—
(i) a report on the findings of the information reviewed and identified under paragraph
(2);
(ii) a summary of the activities of the Office of Government Information Services
under paragraph (3), including—
(I) any advisory opinions issued; and
(II) the number of times each agency engaged in dispute resolution with the
assistance of the Office of Government Information Services or the FOIA Public
Liaison; and
(iii) legislative and regulatory recommendations, if any, to improve the administration
of this section.
(B) The Director of the Office of Government Information Services shall make each report
submitted under subparagraph (A) available for public inspection in an electronic format.
(C) The Director of the Office of Government Information Services shall not be required
to obtain the prior approval, comment, or review of any officer or agency of the United
States, including the Department of Justice, the Archivist of the United States, or the Office
of Management and Budget before submitting to Congress, or any committee or
subcommittee thereof, any reports, recommendations, testimony, or comments, if such
submissions include a statement indicating that the views expressed therein are those of the
Director and do not necessarily represent the views of the President.
(5) The Director of the Office of Government Information Services may directly submit
additional information to Congress and the President as the Director determines to be
appropriate.
(6) Not less frequently than annually, the Office of Government Information Services shall
conduct a meeting that is open to the public on the review and reports by the Office and shall
allow interested persons to appear and present oral or written statements at the meeting.
(i) The Government Accountability Office shall conduct audits of administrative agencies on the
implementation of this section and issue reports detailing the results of such audits.
(j)
(1) Each agency shall designate a Chief FOIA Officer who shall be a senior official of such
agency (at the Assistant Secretary or equivalent level).

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(2) The Chief FOIA Officer of each agency shall, subject to the authority of the head of the
agency—
(A) have agency-wide responsibility for efficient and appropriate compliance with this
section;
(B) monitor implementation of this section throughout the agency and keep the head of the
agency, the chief legal officer of the agency, and the Attorney General appropriately
informed of the agency’s performance in implementing this section;
(C) recommend to the head of the agency such adjustments to agency practices, policies,
personnel, and funding as may be necessary to improve its implementation of this section;
(D) review and report to the Attorney General, through the head of the agency, at such
times and in such formats as the Attorney General may direct, on the agency’s performance
in implementing this section;
(E) facilitate public understanding of the purposes of the statutory exemptions of this
section by including concise descriptions of the exemptions in both the agency’s handbook
issued under subsection (g), and the agency’s annual report on this section, and by
providing an overview, where appropriate, of certain general categories of agency records
to which those exemptions apply;
(F) offer training to agency staff regarding their responsibilities under this section;
(G) serve as the primary agency liaison with the Office of Government Information
Services and the Office of Information Policy; and
(H) designate 1 or more FOIA Public Liaisons.
(3) The Chief FOIA Officer of each agency shall review, not less frequently than annually, all
aspects of the administration of this section by the agency to ensure compliance with the
requirements of this section, including—
(A) agency regulations;
(B) disclosure of records required under paragraphs (2) and (8) of subsection (a);
(C) assessment of fees and determination of eligibility for fee waivers;
(D) the timely processing of requests for information under this section;
(E) the use of exemptions under subsection (b); and
(F) dispute resolution services with the assistance of the Office of Government
Information Services or the FOIA Public Liaison.
(k)
(1) There is established in the executive branch the Chief FOIA Officers Council (referred to
in this subsection as the “Council”).
(2) The Council shall be comprised of the following members:
(A) The Deputy Director for Management of the Office of Management and Budget.
(B) The Director of the Office of Information Policy at the Department of Justice.

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(C) The Director of the Office of Government Information Services.
(D) The Chief FOIA Officer of each agency.
(E) Any other officer or employee of the United States as designated by the Co-Chairs.
(3) The Director of the Office of Information Policy at the Department of Justice and the
Director of the Office of Government Information Services shall be the Co-Chairs of the
Council.
(4) The Administrator of General Services shall provide administrative and other support for
the Council.
(5)
(A) The duties of the Council shall include the following:
(i) Develop recommendations for increasing compliance and efficiency under this
section.
(ii) Disseminate information about agency experiences, ideas, best practices, and
innovative approaches related to this section.
(iii) Identify, develop, and coordinate initiatives to increase transparency and
compliance with this section.
(iv) Promote the development and use of common performance measures for agency
compliance with this section.
(B) In performing the duties described in subparagraph (A), the Council shall consult on a
regular basis with members of the public who make requests under this section.
(6)
(A) The Council shall meet regularly and such meetings shall be open to the public unless
the Council determines to close the meeting for reasons of national security or to discuss
information exempt under subsection (b).
(B) Not less frequently than annually, the Council shall hold a meeting that shall be open
to the public and permit interested persons to appear and present oral and written
statements to the Council.
(C) Not later than 10 business days before a meeting of the Council, notice of such
meeting shall be published in the Federal Register.
(D) Except as provided in subsection (b), the records, reports, transcripts, minutes,
appendices, working papers, drafts, studies, agenda, or other documents that were made
available to or prepared for or by the Council shall be made publicly available.
(E) Detailed minutes of each meeting of the Council shall be kept and shall contain a
record of the persons present, a complete and accurate description of matters discussed and
conclusions reached, and copies of all reports received, issued, or approved by the Council.
The minutes shall be redacted as necessary and made publicly available.
(l) FOIA Public Liaisons shall report to the agency Chief FOIA Officer and shall serve as
supervisory officials to whom a requester under this section can raise concerns about the service
the requester has received from the FOIA Requester Center, following an initial response from the

Page 19 of 19
5 USCS § 552, Part 4 of 4

FOIA Requester Center Staff. FOIA Public Liaisons shall be responsible for assisting in reducing
delays, increasing transparency and understanding of the status of requests, and assisting in the
resolution of disputes.
(m)
(1) The Director of the Office of Management and Budget, in consultation with the Attorney
General, shall ensure the operation of a consolidated online request portal that allows a
member of the public to submit a request for records under subsection (a) to any agency from a
single website. The portal may include any additional tools the Director of the Office of
Management and Budget finds will improve the implementation of this section.
(2) This subsection shall not be construed to alter the power of any other agency to create or
maintain an independent online portal for the submission of a request for records under this
section. The Director of the Office of Management and Budget shall establish standards for
interoperability between the portal required under paragraph (1) and other request processing
software used by agencies subject to this section.

History

HISTORY:
Sept. 6, 1966, P.L. 89-554, § 1, 80 Stat. 383; June 5, 1967, P. L. 90-23 § 1, 81 Stat. 54; Nov. 21, 1974, P.
L. 93-502, §§ 1–3, 88 Stat. 1561, 1563, 1564; Sept. 13, 1976, P. L. 94-409, § 5(b), 90 Stat. 1247; Oct. 13,
1978, P. L. 95-454, Title IX, § 906(a)(10), 92 Stat. 1225; Nov. 8, 1984, P. L. 98-620, Title IV, Subtitle A,
§ 402(2), 98 Stat. 3357; Oct. 27, 1986, P. L. 99-570, Title I, Subtitle N, §§ 1802, 1803, 100 Stat. 3207-48,
3207-49; Oct. 2, 1996, P. L. 104-231, §§ 3–11, 110 Stat. 3049; Nov. 27, 2002, P. L. 107-306, Title III,
Subtitle B, § 312, 116 Stat. 2390; Dec. 31, 2007, P. L. 110-175, §§ 3, 4(a), 5, 6(a)(1), (b)(1), 7(a), 8–10(a),
12, 121 Stat. 2525, 2526, 2527, 2530; Oct. 28, 2009, P. L. 111-83, Title V, § 564(b), 123 Stat. 2184; June
30, 2016, P. L. 114-185, § 2, 130 Stat. 538.
United States Code Service
Copyright © 2022 All rights reserved.

End of Document

12 USCS § 3401
Current through Public Law 117-166, approved August 5, 2022.
United States Code Service > TITLE 12. BANKS AND BANKING (Chs. 1 — 55) > CHAPTER 35. RIGHT TO
FINANCIAL PRIVACY (§§ 3401 — 3423)

§ 3401. Definitions
For the purpose of this title [12 USCS §§ 3401 et seq.], the term—
(1) “financial institution”, except as provided in section 1114 [12 USCS § 3414], means any
office of a bank, savings bank, card issuer as defined in section 103 of the Consumers Credit
Protection Act (15 U.S.C. 1602(n)), industrial loan company, trust company, savings
association, building and loan, or homestead association (including cooperative banks), credit
union, or consumer finance institution, located in any State or territory of the United States, the
District of Columbia, Puerto Rico, Guam, American Samoa, or the Virgin Islands;
(2) “financial record” means an original of, a copy of, or information known to have been
derived from, any record held by a financial institution pertaining to a customer’s relationship
with the financial institution;
(3) “Government authority” means any agency or department of the United States, or any
officer, employee, or agent thereof;
(4) “person” means an individual or a partnership of five or fewer individuals;
(5) “customer” means any person or authorized representative of that person who utilized or is
utilizing any service of a financial institution, or for whom a financial institution is acting or
has acted as a fiduciary, in relation to an account maintained in the person’s name;
(6) “holding company” means—
(A) any bank holding company (as defined in section 2 of the Bank Holding Company Act
of 1956 [12 USCS § 1841]); and
(B) any company described in section 4(f)(1) of the Bank Holding Company Act of 1956
[12 USCS § 1843(f)(1)];
(7) “supervisory agency” means with respect to any particular financial institution, holding
company, or any subsidiary of a financial institution or holding company, any of the following
which has statutory authority to examine the financial condition, business operations, or
records or transactions of that institution, holding company, or subsidiary-(A) the Federal Deposit Insurance Corporation;
(B) the Bureau of Consumer Financial Protection;
(C) the National Credit Union Administration;
(D) the Board of Governors of the Federal Reserve System;

Page 2 of 2
12 USCS § 3401

(E) the Comptroller of the Currency;
(F) the Securities and Exchange Commission;
(G) the Commodity Futures Trading Commission;
(H) the Secretary of the Treasury, with respect to the Bank Secrecy Act [12 USCS §§ 1951
et seq.] and the Currency and Foreign Transactions Reporting Act [31 USCS §§ 5311 et
seq.] (Public Law 91-508, title I and II); or
(I) any State banking or securities department or agency; and
(8) “law enforcement inquiry” means a lawful investigation or official proceeding inquiring
into a violation of, or failure to comply with, any criminal or civil statute or any regulation,
rule, or order issued pursuant thereto.

History

HISTORY:
Nov. 10, 1978, P. L. 95-630, Title XI, § 1101, 92 Stat. 3697; Aug. 9, 1989, P. L. 101-73, Title VII,
Subtitle C, § 744(b), Title IX, Subtitle D, § 941, 103 Stat. 438, 496; Nov. 29, 1990, P. L. 101-647, Title
XXV, Subtitle I, § 2596(c), 104 Stat. 4908; Nov. 12, 1999, P. L. 106-102, Title VII, Subtitle C, §
727(b)(1), 113 Stat. 1475; Dec. 13, 2003, P. L. 108-177, Title III, Subtitle E, § 374(b), 117 Stat. 2628;
July 21, 2010, P. L. 111-203, Title X, Subtitle H, § 1099(1), 124 Stat. 2105.
United States Code Service
Copyright © 2022 All rights reserved.

End of Document

31 USCS § 7701
Current through Public Law 117-166, approved August 5, 2022.
United States Code Service > TITLE 31. MONEY AND FINANCE (§§ 101 — 9705) > Subtitle V. General
Assistance Administration (Chs. 61 — 77) > CHAPTER 77. Access to Information for Debt Collection (§ 7701)

§ 7701. Taxpayer identifying number
(a) In this section—
(1) “included Federal loan program” has the same meaning given that term in section
6103(l)(3)(C) of the Internal Revenue Code of 1986 (26 U.S.C. 6103(l)(3)(C)).
(2) “taxpayer identifying number” means the identifying number required under section 6109
of the Internal Revenue Code of 1986 (26 U.S.C. 6109).
(b) The head of an agency administering an included Federal loan program shall require a person
applying for a loan under the program to provide that person’s taxpayer identifying number.
(c)
(1) The head of each Federal agency shall require each person doing business with that agency
to furnish to that agency such person’s taxpayer identifying number.
(2) For purposes of this subsection, a person shall be considered to be doing business with a
Federal agency if the person is—
(A) a lender or servicer in a Federal guaranteed or insured loan program administered by
the agency;
(B) an applicant for, or recipient of, a Federal license, permit, right-of-way, grant, or
benefit payment administered by the agency or insurance administered by the agency;
(C) a contractor of the agency;
(D) assessed a fine, fee, royalty or penalty by the agency; and
(E) in a relationship with the agency that may give rise to a receivable due to that agency,
such as a partner of a borrower in or a guarantor of a Federal direct or insured loan
administered by the agency.
(3) Each agency shall disclose to a person required to furnish a taxpayer identifying number
under this subsection its intent to use such number for purposes of collecting and reporting on
any delinquent amounts arising out of such person’s relationship with the Government.
(4) For purposes of this subsection, a person shall not be treated as doing business with a
Federal agency solely by reason of being a debtor under third party claims of the United States.
The preceding sentence shall not apply to a debtor owing claims resulting from petroleum
pricing violations or owing claims resulting from Federal loan or loan guarantee/ insurance
programs.

Page 2 of 2
31 USCS § 7701

(d) Notwithstanding section 552a(b) of title 5, United States Code, creditor agencies to which a
delinquent claim is owed, and their agents, may match their debtor records with Department of
Health and Human Services, and Department of Labor records to obtain names (including names
of employees), name controls, names of employers, taxpayer identifying numbers, addresses
(including addresses of employers), and dates of birth. The preceding sentence shall apply to the
disclosure of taxpayer identifying numbers only if such disclosure is not otherwise prohibited by
section 6103 of the Internal Revenue Code of 1986 [26 USCS § 6103]. The Department of Health
and Human Services, and the Department of Labor shall release that information to creditor
agencies and may charge reasonable fees sufficient to pay the costs associated with that release.

History

HISTORY:
Added July 5, 1994, P. L. 103-272, § 4(f)(1)(Y)(i), 108 Stat. 1363; April 26, 1996, P. L. 104-134, Title III,
Ch 10, § 31001(i)(1), 110 Stat. 1321-364.
United States Code Service
Copyright © 2022 All rights reserved.

End of Document

13 CFR 115.10
This document is current through the Sept. 7, 2022 issue of the Federal Register, with the exception of the
amendments appearing at 87 FR 54166.
Code of Federal Regulations > Title 13 Business Credit and Assistance > Chapter I — Small Business
Administration > Part 115 — Surety Bond Guarantee [Effective until September 7, 2022] > Subpart A —
Provisions for All Surety Bond Guarantees

Notice
. This section has more than one version with varying effective dates.

§ 115.10 Definitions. [Effective September 7, 2022]
Affiliate is defined in § 121.301(f) of this chapter.
Ancillary Bond means a bond incidental and essential to the performance of a Contract for which
there is a guaranteed Final Bond.
Applicable Statutory Limit means the maximum amount, set forth below, of any Contract or Order
for which SBA is authorized to guarantee, or commit to guarantee, a Bid Bond, Payment Bond,
Performance Bond, or Ancillary Bond:
(1) $6.5 million (as adjusted for inflation in accordance with 41 U.S.C. 1908);
(2) $10 million if a contracting officer of a Federal agency certifies, in accordance with section
115.12(e)(3), that such guarantee is necessary; or
(3) if SBA is guaranteeing the bond in connection with a procurement related to a major
disaster pursuant to section 12079 of Pub. L. 110-246, see section 115.12(e)(4).
Bid Bond means a bond conditioned upon the bidder on a Contract entering into the Contract, and
furnishing the required Payment and Performance Bonds. The term does not include a forfeiture
bond unless it is issued for a jurisdiction where statute or settled decisional law requires forfeiture
bonds for public works.
Contract means a written obligation of the Principal, including an Order, requiring the furnishing
of services, supplies, labor, materials, machinery, equipment or construction. A Contract:
(1) Must not prohibit a Surety from performing the Contract upon default of the Principal;
(2) Does not include a permit, subdivision contract, lease, land contract, evidence of debt,
financial guarantee ( e.g., a contract requiring any payment by the Principal to the Obligee,
except for contracts in connection with bid and performance bonds for the sale of timber
and/or other forest products, such as biomass, that require the Principal to pay the Obligee),

Page 2 of 5
13 CFR 115.10

warranty of performance or efficiency, warranty of fidelity, or release of lien (other than for
claims under a guaranteed bond); and
(3) May include a maintenance agreement under the following circumstances:
(i) The maintenance agreement is ancillary to a Contract for which SBA is guaranteeing a
bond, is performed by the same Principal, is for a period of 2 years or less, and only covers
defective workmanship or materials that are not covered by a manufacturer's warranty.
With SBA's prior written approval, the agreement may cover a period longer than 2 years,
or cover something other than defective workmanship or materials, if a longer period or
something other than defective workmanship or materials is customarily required in the
relevant trade or industry; or
(ii) The maintenance agreement is stand-alone and is entered into in connection with a
Contract for which a bond was not required and only covers defective workmanship or
materials that are not covered by a manufacturer's warranty. The agreement must cover a
period of 3 years or less that begins immediately after the Contract is complete and must be
executed prior to the completion of the Contract. It must also be entered into with the same
Principal that completed the Contract. With SBA's prior written approval, the agreement
may cover a period longer than 3 years if a longer period is customarily required in the
relevant trade or industry.
D/SG means SBA's Director, Office of Surety Guarantees.
Execution means signing by a representative or agent of the Surety with the authority and power to
bind the Surety.
Final Bond means a Performance Bond and/or a Payment Bond.
Head of Agency means in the case of a cabinet department, the Secretary; and in the case of an
independent commission, board, or agency, the Chair or Administrator; or any person to whom the
Secretary, Chair, or Administrator has directly delegated the authority to request SBA to guarantee
bonds on Contracts or Orders in excess of $5,000,000.
Imminent Breach means a threat to the successful completion of a bonded Contract which, unless
remedied by the Surety, makes a default under the bond appear to be inevitable.
Investment Act means the Small Business Investment Act of 1958 (15 U.S.C. 661 et seq.), as
amended.
Loss has the meaning set forth in § 115.16.
Obligee means:
(1)
(i) In the case of a Bid Bond, the Person requesting bids for the performance of a Contract;
or
(ii) In the case of a Final Bond, the Person who has contracted with a Principal for the
completion of the Contract and to whom the primary obligation of the Surety runs in the
event of a breach by the Principal.
(2) In either case, no Person (other than a Federal department or agency) may be named coObligee or Obligee on a bond or on a rider to the bond unless that Person is bound by the

Page 3 of 5
13 CFR 115.10

Contract to the Principal (or to the Surety, if the Surety has arranged completion of the
Contract) to the same extent as the original Obligee. In no event may the addition of one or
more co-Obligees increase the aggregate liability of the Surety under the bond.
Order means a task order for services or delivery order for supplies issued under an indefinite
delivery Contract (definite quantity, indefinite quantity, or requirements).
OSG means SBA's Office of Surety Guarantees.
Payment Bond means a bond which is conditioned upon the payment by the Principal of money to
persons who have a right of action against such bond, including those who have furnished labor,
materials, equipment and supplies for use in the performance of the Contract. A Payment Bond
can not require the Surety to pay an amount which exceeds the claimant's actual loss or damage.
Performance Bond means a bond conditioned upon the completion by the Principal of a Contract
in accordance with its terms.
Person means a natural person or a legal entity.
Premium means the amount charged by a Surety to issue bonds. The Premium is determined by
applying an approved rate (see §§ 115.32(a) and 115.60(a)(2)) to the bond or contract amount. The
Premium does not include surcharges for extra services, whether or not considered part of the
“premium” under local law.
Principal means, in the case of a Bid Bond, the Person bidding for the award of a Contract. In the
case of Final Bonds and Ancillary Bonds, Principal means the Person primarily liable to complete
the Contract, or to make Contract-related payments to other persons, and is the Person whose
performance or payment is bonded by the Surety. A Principal may be a prime contractor or a
subcontractor.
Prior Approval Agreement means the Surety Bond Guarantee Agreement (SBA Form 990) or
Quick Bond Guarantee Application and Agreement (SBA Form 990A) entered into between a
Prior Approval Surety and SBA under which SBA agrees to guarantee a specific bond.
Prior Approval Surety means a Surety which must obtain SBA's prior approval on each guarantee
and which has entered into one or more Prior Approval Agreements with SBA.
PSB Agreement means the Preferred Surety Bond Guarantee Agreement entered into between a
PSB Surety and SBA.
PSB Surety means a Surety that has been admitted to the Preferred Surety Bond (PSB) Program.
Service-Disabled Veteran means a veteran with a disability that is service-connected, as defined in
Section 101(16) of Title 38, United States Code.
Small Business Owned and Controlled by Service-Disabled Veterans means:
(1) A Small Concern of which not less than 51 percent is owned by one or more ServiceDisabled Veterans; or a publicly-owned Small concern of which not less than 51 percent of the
stock is owned by one or more Service-Disabled Veterans; and
(2) The management and daily business operations of which are controlled by one or more
Service-Disabled Veterans, or in the case of a Service-Disabled Veteran with permanent and
severe disability, the spouse or permanent caregiver of such Veteran.

Page 4 of 5
13 CFR 115.10

Small Business Owned and Controlled by Veterans means:
(1) A Small Concern of which not less than 51 percent is owned by one or more Veterans; or a
publicly-owned Small Concern of which not less than 51 percent of the stock is owned by one
or more Veterans; and
(2) The management and daily business operations of which are controlled by one or more
Veterans.
Surety means a company which:
(1)
(i) Under the terms of a Bid Bond, agrees to pay a sum of money to the Obligee if the
Principal breaches the conditions of the bond;
(ii) Under the terms of a Performance Bond, agrees to pay a sum of money or to incur the
cost of fulfilling the terms of a Contract if the Principal breaches the conditions of the
Contract; and
(iii) Under the terms of a Payment or an Ancillary Bond, agrees to make payment to all
who have a right of action against such bond, including those who have furnished labor,
materials, equipment and supplies in the performance of the Contract.
(2) The term Surety includes an agent, independent agent, underwriter, or any other company
or individual empowered to act on behalf of the Surety.
Veteran has the meaning given the term in Section 101(2) of Title 38, United States Code.

Statutory Authority
Authority Note Applicable to 13 CFR Ch. I, Pt. 115

History

[54 FR 47169, Nov. 9, 1989, as amended at 55 FR 10225, Mar. 20, 1990; 56 FR 627, Jan 8, 1991.; 61 FR
3266, 3271, Jan. 31, 1996, as corrected at 61 FR 7985, Mar. 1, 1996; 72 FR 34597, 34599, June 25, 2007;
72 FR 50037, 50038, Aug. 30, 2007; 74 FR 36106, 36109, July 22, 2009; 76 FR 2571, 2572, Jan. 14,
2011; 76 FR 9962, 9963, Feb. 23, 2011; 77 FR 41663, 41665, July 16, 2012; 79 FR 2084, 2086, Jan. 13,
2014; 81 FR 41423, 41428, June 27, 2016; 87 FR 48080, 48083, Aug. 8, 2022]
Annotations

Notes

[EFFECTIVE DATE NOTE:
76 FR 2571 , 2572, Jan. 14, 2011, amended this section, effective Feb. 14, 2011; 76 FR 9962 , 9963,
Feb. 23, 2011, amended this section, effective Mar. 25, 2011; 77 FR 41663 , 41665, July 16, 2012,

Page 5 of 5
13 CFR 115.10

amended this section, effective Aug. 15, 2012; 79 FR 2084 , 2086, Jan. 13, 2014, revised the definition of
“Applicable Statutory Limit”; 81 FR 41423 , 41428, June 27, 2016, revised the definition of “Affiliate”,
effective July 27, 2016; 87 FR 48080, 48083, Aug. 8, 2022, amended this section, effective Sept. 7, 2022.]

Research References & Practice Aids

Hierarchy Notes:
13 CFR Ch. I
13 CFR Ch. I, Pt. 115
LEXISNEXIS’ CODE OF FEDERAL REGULATIONS
Copyright © 2022 All rights reserved.

End of Document

13 CFR 115.19
This document is current through the Sept. 7, 2022 issue of the Federal Register, with the exception of the
amendments appearing at 87 FR 54166.
Code of Federal Regulations > Title 13 Business Credit and Assistance > Chapter I — Small Business
Administration > Part 115 — Surety Bond Guarantee [Effective until September 7, 2022] > Subpart A —
Provisions for All Surety Bond Guarantees

Notice
. This section has more than one version with varying effective dates.

§ 115.19 Denial of liability. [Effective September 7, 2022]
In addition to equitable and legal defenses and remedies under contract law, the Act, and the
regulations in this Part, SBA is relieved of liability in whole or in part within its discretion if any
of the circumstances in paragraphs (a) through (h) of this section exist, except that SBA shall not
deny liability on Prior Approval bonds based solely upon material information that was provided
to SBA as part of the Surety’s guarantee application.
(a) Excess Contract or bond amount. The total Contract or Order amount at the time of
Execution of the bond exceeds the Applicable Statutory Limit (see § 115.10) or the bond
amount at any time exceeds the total Contract or Order amount.
(b) Misrepresentation or fraud. The Surety obtained the Prior Approval or PSB Agreement, or
applied for reimbursement for losses, by fraud or material misrepresentation. Material
misrepresentation includes (but is not limited to) both the making of an untrue statement of
material fact and the omission of a statement of material fact necessary to make a statement not
misleading in light of the circumstances in which it was made. Material misrepresentation also
includes the adoption by the Surety of a material misstatement made by others which the
Surety knew or under generally accepted underwriting standards should have known to be
false or misleading. The Surety’s failure to disclose its ownership (or the ownership by any
owner of at least 20% of the Surety’s equity) of an interest in a Principal or an Obligee is
considered the omission of a statement of material fact.
(c) Material breach. The Surety has committed a material breach of one or more terms or
conditions of its Prior Approval or PSB Agreement. A material breach is considered to have
occurred if:
(1) Such breach (or such breaches in the aggregate) causes an increase in the Contract
amount or in the bond amount of at least 25% or $ 500,000 of the original contract or bond
amount, whichever is less; or

Page 2 of 7
13 CFR 115.19

(2) One of the conditions under Part B of Title IV of the Investment Act is not met.
(d) Substantial regulatory violation. The Surety has committed a “substantial violation” of
SBA regulations. For purposes of this paragraph, a “substantial violation” is a violation which
causes an increase in the bond amount of at least 25% or $ 500,000 of the original contract or
bond amount, whichever is less in the aggregate, or is contrary to the purposes of the Surety
Bond Guarantee Programs.
(e) Alteration. Without obtaining prior written approval from SBA (which may be conditioned
upon payment of additional fees), the Surety agrees to or acquiesces in any material alteration
in the terms, conditions, or provisions of the bond, including but not limited to the following
acts:
(1) Naming as an Obligee or co-Obligee any Person that does not qualify as an Obligee
under § 115.10; or
(2) In the case of a Prior Approval Surety, acquiescing in any alteration to the bond which
would increase the bond amount by at least 25% or $ 500,000 of the original contract or
bond amount, whichever is less.
(f) Timeliness.
(1) Either:
(i) The bond was Executed prior to the date of SBA’s guarantee; or
(ii) The bond was Executed (or approved, if the Surety is legally bound by such
approval) after the work under the Contract had begun, unless SBA executes a “Surety
Bond Guarantee Agreement Addendum” (SBA Form 991) after receiving all of the
following from the Surety:
(A) Satisfactory evidence, including a certified copy of the Contract (or a sworn
affidavit from the Principal), showing that the bond requirement was contained in
the original Contract, or other documentation satisfactory to SBA, showing why a
bond was not previously obtained and is now being required;
(B) Certification by the Principal that all taxes and labor costs are current, and
listing all suppliers and subcontractors, indicating that they are all paid to date, and
attaching a waiver of lien from each; or an explanation satisfactory to SBA why
such documentation cannot be produced; and
(C) Certification by the Obligee that all payments due under the Contract to date
have been made and that the job has been satisfactorily completed to date.
(2)
(i) For purposes of paragraph (f)(1)(ii) of this section, work under a Contract is
considered to have begun when a Principal takes any action related to the contract or
bond that would have exposed its Surety to liability under applicable law had a bond
been Executed (or approved, if the Surety is legally bound by such approval) at the
time.
(ii) For purposes of this paragraph (f), the Surety must maintain a contemporaneous
record of the Execution and approval of each bond.

Page 3 of 7
13 CFR 115.19

(g) Delinquent fees. The Surety has not remitted to SBA the Principal’s payment for the full
amount of the guarantee fee within the time period required under § 115.30(d) for Prior
Approval Sureties or § 115.66 for PSB Sureties, or has not made timely payment of the
Surety’s fee within the time period required by § 115.32(c). SBA may reinstate the guarantee
upon showing that the contract is not in default and that a valid reason exists why a timely
remittance or payment was not made.
(h) Other regulatory violations. The occurrence of any of the following:
(1) The Principal on the bonded Contract is not a small business;
(2) The bond was not required under the bid solicitation or the original Contract;
(3) The bond was not eligible for guarantee by SBA because the bonded contract was not a
Contract as defined in § 115.10;
(4) The loss occurred under a bond that was not guaranteed by SBA;
(5) The loss incurred by the Surety was not a Loss as determined under § 115.16; or
(6) The Surety’s loss under a Performance Bond did not result from the Principal’s breach
or Imminent Breach of the Contract.

Statutory Authority
Authority Note Applicable to 13 CFR Ch. I, Pt. 115

History

[54 FR 47169, Nov. 9, 1989 (interim) and 55 FR 10225, Mar. 20, 1990 (final); 61 FR 3266, 3274, Jan. 31,
1996; 66 FR 30803, 30804, June 8, 2001; 72 FR 34597, 34599, June 25, 2007; 74 FR 36106, 36110, July
22, 2009; 79 FR 2084, 2087, Jan. 13, 2014; 82 FR 39491, 39501, Aug. 21, 2017; 87 FR 48080, 48084,
Aug. 8, 2022]
Annotations

Notes

[EFFECTIVE DATE NOTE:
74 FR 36106 , 36110, July 22, 2009, revised the introductory text and paragraph (a), effective July 22,
2009; 79 FR 2084 , 2087, Jan. 13, 2014, revised introductory text and replaced “$ 50,000" with “$
100,000, whichever is less” in paragraphs (c)(1), (d), and (e)(2); 82 FR 39491 , 39501, Aug. 21, 2017,
amended this section, effective Sept. 20, 2017; 87 FR 48080, 48084, Aug. 8, 2022, amended this section,
effective Sept. 7, 2022.]
Notes to Decisions

Page 4 of 7
13 CFR 115.19

Banking Law: Federal Acts: Small Business Act
Contracts Law: Types of Contracts: Guaranty Contracts
Governments: Federal Government: Claims By & Against
Insurance Law: Claims & Contracts: Contract Formation: Mutual Assent
Public Contracts Law: Business Aids & Assistance: Small Businesses
Banking Law: Federal Acts: Small Business Act
Am. Contrs. Indem. Co. v. United States, 111 Fed. Cl. 240, 2013 U.S. Claims LEXIS 521 (Fed. Cl. May
29, 2013), aff'd, 557 Fed. Appx. 979, 2014 U.S. App. LEXIS 4351 (Fed. Cir. 2014).
Overview: Surety’s complaint that alleged the SBA breached its agreement when it refused to reimburse
the surety for payments it made on a bond failed on summary judgment because the surety agreed to
increase the bond amount before SBA approval, and 13 C.F.R. § 115.19(e) stated that the SBA was not
liable if the surety did not first obtain approval.
• 13 C.F.R. § 115.19, “Denial of Liability,” announces the circumstances under which the Small
Business Administration (SBA) may deny liability under a loan guarantee agreement. Section
115.19 states that the SBA is relieved of liability if: (e) Alteration. Without obtaining prior written
approval from SBA (which may be conditioned upon payment of additional fees), the surety
agrees to or acquiesces in any material alteration in the terms, conditions, or provisions of the
bond, including but not limited to the following acts: (1) Naming as an obligee or co-obligee any
person that does not qualify as an obligee under 13 C.F.R. § 115.10; or (2) In the case of a prior
approval surety, acquiescing in any alteration to the bond which would increase the bond amount
by at least 25% or $50,000. § 115.19(e). Go To Headnote
• Based on the plain language of the regulation, 13 C.F.R. § 115.19(e), if the surety agrees or
acquiesces to an increase without prior approval, then the Small Business Administration is
relieved of liability. Go To Headnote
• 13 C.F.R. § 115.19(e) does not define or describe what constitutes agreement or acquiescence, nor is
there case law that defines these terms in the context of this regulation. The Restatement (Second)
of Contracts defines agreement as a manifestation of mutual assent on the part of two or more
persons. Restatement (Second) of Contracts § 3 (2012). “Manifestation of mutual assent” to an
exchange requires that each party either make a promise or begin or render a performance.
Restatement (Second) of Contracts § 18. Black’s Law Dictionary defines agreement as a mutual
understanding between two or more persons about their relative rights and duties regarding past or
future performances; a manifestation of mutual assent by two or more persons. Go To Headnote
Am. Contrs. Indem. Co. v. United States, 81 Fed. Cl. 682, 2008 U.S. Claims LEXIS 118 (Fed. Cl. Apr. 29,
2008), rev'd, remanded, 570 F.3d 1373, 2009 U.S. App. LEXIS 13878 (Fed. Cir. 2009).
Overview: Company that issued payment and performance bonds in connection with a contractor’s
project failed to state a claim for relief when it alleged that the SBA committed breach of contract when it

Page 5 of 7
13 CFR 115.19

denied liability on an additional $ 240,000 in bonds the company issued. The company did not comply
with 13 C.F.R. § 115.19(e)(2) before it issued the bonds.
• 13 C.F.R. § 115.19 expressly permits the United States Small Business Administration (SBA) to
deny liability on certain guarantees. Section 115.19 provides that in addition to equitable and legal
defenses and remedies under contract law, the Small Business Act, and the regulations in 13
C.F.R. pt. 115, the SBA is not liable under a Prior Approval or PSB Agreement if any of the
circumstances in § 115.19(a) through (h) exist. One of the eight circumstances, a material
alteration to a bond, is set forth in § 115.19(e). Go To Headnote
• No one, including entities that assist and promote business development, is entitled to ignore rules of
compliance. 13 C.F.R. § 115.19 is unambiguous: an increase in the bond amount in excess of 25%
or $ 50,000 obligates a surety to obtain written approval from the Small Business Administration
prior to its acquiescence to the bond’s alteration. Go To Headnote
Contracts Law: Types of Contracts: Guaranty Contracts
Am. Contrs. Indem. Co. v. United States, 81 Fed. Cl. 682, 2008 U.S. Claims LEXIS 118 (Fed. Cl. Apr. 29,
2008), rev'd, remanded, 570 F.3d 1373, 2009 U.S. App. LEXIS 13878 (Fed. Cir. 2009).
Overview: Company that issued payment and performance bonds in connection with a contractor’s
project failed to state a claim for relief when it alleged that the SBA committed breach of contract when it
denied liability on an additional $ 240,000 in bonds the company issued. The company did not comply
with 13 C.F.R. § 115.19(e)(2) before it issued the bonds.
• 13 C.F.R. § 115.19 expressly permits the United States Small Business Administration (SBA) to
deny liability on certain guarantees. Section 115.19 provides that in addition to equitable and legal
defenses and remedies under contract law, the Small Business Act, and the regulations in 13
C.F.R. pt. 115, the SBA is not liable under a Prior Approval or PSB Agreement if any of the
circumstances in § 115.19(a) through (h) exist. One of the eight circumstances, a material
alteration to a bond, is set forth in § 115.19(e). Go To Headnote
• No one, including entities that assist and promote business development, is entitled to ignore rules of
compliance. 13 C.F.R. § 115.19 is unambiguous: an increase in the bond amount in excess of 25%
or $ 50,000 obligates a surety to obtain written approval from the Small Business Administration
prior to its acquiescence to the bond’s alteration. Go To Headnote
Governments: Federal Government: Claims By & Against
Am. Contrs. Indem. Co. v. United States, 81 Fed. Cl. 682, 2008 U.S. Claims LEXIS 118 (Fed. Cl. Apr. 29,
2008), rev'd, remanded, 570 F.3d 1373, 2009 U.S. App. LEXIS 13878 (Fed. Cir. 2009).
Overview: Company that issued payment and performance bonds in connection with a contractor’s
project failed to state a claim for relief when it alleged that the SBA committed breach of contract when it
denied liability on an additional $ 240,000 in bonds the company issued. The company did not comply
with 13 C.F.R. § 115.19(e)(2) before it issued the bonds.

Page 6 of 7
13 CFR 115.19

• 13 C.F.R. § 115.19 expressly permits the United States Small Business Administration (SBA) to
deny liability on certain guarantees. Section 115.19 provides that in addition to equitable and legal
defenses and remedies under contract law, the Small Business Act, and the regulations in 13
C.F.R. pt. 115, the SBA is not liable under a Prior Approval or PSB Agreement if any of the
circumstances in § 115.19(a) through (h) exist. One of the eight circumstances, a material
alteration to a bond, is set forth in § 115.19(e). Go To Headnote
• No one, including entities that assist and promote business development, is entitled to ignore rules of
compliance. 13 C.F.R. § 115.19 is unambiguous: an increase in the bond amount in excess of 25%
or $ 50,000 obligates a surety to obtain written approval from the Small Business Administration
prior to its acquiescence to the bond’s alteration. Go To Headnote
Insurance Law: Claims & Contracts: Contract Formation: Mutual Assent
Am. Contrs. Indem. Co. v. United States, 111 Fed. Cl. 240, 2013 U.S. Claims LEXIS 521 (Fed. Cl. May
29, 2013), aff'd, 557 Fed. Appx. 979, 2014 U.S. App. LEXIS 4351 (Fed. Cir. 2014).
Overview: Surety’s complaint that alleged the SBA breached its agreement when it refused to reimburse
the surety for payments it made on a bond failed on summary judgment because the surety agreed to
increase the bond amount before SBA approval, and 13 C.F.R. § 115.19(e) stated that the SBA was not
liable if the surety did not first obtain approval.
• 13 C.F.R. § 115.19(e) does not define or describe what constitutes agreement or acquiescence, nor is
there case law that defines these terms in the context of this regulation. The Restatement (Second)
of Contracts defines agreement as a manifestation of mutual assent on the part of two or more
persons. Restatement (Second) of Contracts § 3 (2012). “Manifestation of mutual assent” to an
exchange requires that each party either make a promise or begin or render a performance.
Restatement (Second) of Contracts § 18. Black’s Law Dictionary defines agreement as a mutual
understanding between two or more persons about their relative rights and duties regarding past or
future performances; a manifestation of mutual assent by two or more persons. Go To Headnote
Public Contracts Law: Business Aids & Assistance: Small Businesses
Am. Contrs. Indem. Co. v. United States, 570 F.3d 1373, 2009 U.S. App. LEXIS 13878 (Fed. Cir. 2009).
Overview: Where an amendment increasing amount of a bond had an effective date predating the date on
which Small Business Administration approved amendment, surety’s breach of contract claim was not
barred by 13 C.F.R. § 115.19(e) because effective date of the bond was not necessarily the date of
agreement or acquiescence within the meaning of § 115.19(e).
• 13 C.F.R. § 115.19(e) provides that the Small Business Administration (SBA) is not liable under a
bond guarantee agreement if without obtaining prior written approval from SBA, the surety agrees
to or acquiesces in any material alteration in the terms, conditions, or provisions of the bond,
including acquiescing in any alteration to the bond which would increase the bond amount by at
least 25 % or $ 50,000. Go To Headnote

Page 7 of 7
13 CFR 115.19

• The regulation contained in 13 C.F.R. § 115.19(e) on its face does not bar sureties from agreeing to
an effective date before Small Business Administration approval. The mere existence of an earlier
effective date thus does not establish a violation of 13 C.F.R. § 115.19(e). Go To Headnote
• The effective date of a bond is not necessarily the date of agreement or acquiescence within the
meaning of 13 C.F.R. § 115.19(e). Go To Headnote

Research References & Practice Aids

Hierarchy Notes:
13 CFR Ch. I
13 CFR Ch. I, Pt. 115
LEXISNEXIS’ CODE OF FEDERAL REGULATIONS
Copyright © 2022 All rights reserved.

End of Document

13 CFR 115.30
This document is current through the Sept. 7, 2022 issue of the Federal Register, with the exception of the
amendments appearing at 87 FR 54166.
Code of Federal Regulations > Title 13 Business Credit and Assistance > Chapter I — Small Business
Administration > Part 115 — Surety Bond Guarantee [Effective until September 7, 2022] > Subpart B —
Guarantees Subject to Prior Approval

Notice
. This section has more than one version with varying effective dates.

§ 115.30 Submission of Surety’s guarantee application. [Effective September 7, 2022]
(a) Legal effect of application. By submitting an application to SBA for a bond guarantee, the Prior
Approval Surety certifies that the Principal meets the eligibility requirements set forth in § 115.13 and
that the underwriting standards set forth in § 115.15 have been met.
(b) SBA’s determination. SBA’s approval or decline of a guarantee application is made in writing by
an authorized SBA officer. The officer may provide telephone notice before the Prior Approval Surety
receives SBA’s guarantee approval form if the officer has already signed the form. In the event of a
conflict between the telephone notice and the written form, the written form controls.
(c) Reconsideration-appeal of SBA determination. A Prior Approval Surety may request
reconsideration of a decline from the SBA officer who made the decision. If the decision on
reconsideration is negative, the Surety may appeal to an individual designated by the D/SG. If the
decision is again adverse, the Surety may appeal to the D/SG, who will make the final decision.
(d) Prior Approval Agreement. To apply for a bond guarantee, a Prior Approval Surety must submit
one of the following forms:
(1) Surety Bond Guarantee Agreement (SBA Form 990). A Prior Approval Surety may
complete and submit a Surety Bond Guarantee Agreement (SBA Form 990) to SBA for each
Bid Bond or Final Bond, and this Form must be approved by SBA prior to the Surety’s
Execution of the bond, except in the case of a surety bonding line approved by SBA under §
115.33(d). The guarantee fees owed in connection with Final Bonds must be paid in
accordance with § 115.32.
(2) Quick Bond Guarantee Application and Agreement (SBA Form 990A)—
(i) General procedures. Except as provided in paragraph (d)(2)(ii) of this section, a Prior
Approval Surety may complete and submit the Quick Bond Guarantee Application and
Agreement (SBA Form 990A) to SBA for each Bid Bond or Final Bond, and this Form
must be approved by SBA prior to the Surety’s Execution of the bond. SBA Form 990A is

Page 2 of 3
13 CFR 115.30

a streamlined application form that may be used only for contract amounts that do not
exceed $ 500,000 at the time of application. The guarantee fees owed in connection with
Final Bonds must be paid in accordance with § 115.32.
(ii) Exclusions. SBA Form 990A may not be used under the following circumstances:
(A) The Principal has previously defaulted on any contract or has had any claims or
complaints filed against it with any court or administrative agency;
(B) Work on the Contract commenced before a bond is Executed;
(C) The time for completion of the Contract exceeds 12 months;
(D) The Contract includes a provision for liquidated damages that exceed $ 2,500 per
day;
(E) The Contract involves asbestos abatement, hazardous waste removal, or timber
sales; or
(F) The bond would be issued under a surety bonding line approved under § 115.33.

Statutory Authority
Authority Note Applicable to 13 CFR Ch. I, Pt. 115

History

[54 FR 47169, Nov. 9, 1989, as amended at 55 FR 10225, Mar. 20, 1990; 61 FR 3266, 3276, Jan. 31,
1996; 72 FR 50037, 50038, Aug. 30, 2007; 77 FR 41663, 41665, July 16, 2012; 79 FR 2084, 2087, Jan.
13, 2014; 82 FR 39491, 39501, Aug. 21, 2017; 82 FR 39491, 39501, Aug. 21, 2017; 87 FR 48080, 48084,
Aug. 8, 2022]
Annotations

Notes

[EFFECTIVE DATE NOTE:
77 FR 41663 , 41665, July 16, 2012, revised paragraph (d), effective Aug. 15, 2012; 79 FR 2084 , 2087,
Jan. 13, 2014, amended paragraphs (d)(2)(ii)(C) and (d)(2)(ii)(D), effective Feb. 12, 2014; 82 FR 39491 ,
39501, Aug. 21, 2017, amended paragraph (d)(2)(i), effective Sept. 20, 2017; 87 FR 48080, 48084, Aug.
8, 2022, amended this section, effective Sept. 7, 2022.]

Research References & Practice Aids

Hierarchy Notes:

Page 3 of 3
13 CFR 115.30

13 CFR Ch. I
13 CFR Ch. I, Pt. 115
LEXISNEXIS’ CODE OF FEDERAL REGULATIONS
Copyright © 2022 All rights reserved.

End of Document

13 CFR 115.32
This document is current through the Sept. 7, 2022 issue of the Federal Register, with the exception of the
amendments appearing at 87 FR 54166.
Code of Federal Regulations > Title 13 Business Credit and Assistance > Chapter I — Small Business
Administration > Part 115 — Surety Bond Guarantee [Effective until September 7, 2022] > Subpart B —
Guarantees Subject to Prior Approval

Notice
. This section has more than one version with varying effective dates.

§ 115.32 Fees and Premiums. [Effective September 7, 2022]
(a) Surety’s Premium. A Prior Approval Surety must not charge a Principal an amount greater than
that authorized by the appropriate insurance department. The Surety must not require the Principal to
purchase casualty or other insurance or any other services from the Surety or any Affiliate or agent of
the Surety. The Surety must not charge non-Premium fees to a Principal unless the Surety performs
other services for the Principal, the additional fee is permitted by State law, and the Principal agrees to
the fee.
(b) SBA charge to Principal. SBA does not charge Principals application or Bid Bond guarantee fees.
If SBA guarantees a Final Bond, the Principal must pay a guarantee fee equal to a certain percentage
of the Contract amount. The percentage is determined by SBA and is published in Notices in the
Federal Register from time to time. The Principal’s fee is rounded to the nearest dollar, and is to be
remitted to SBA with the form submitted under either § 115.30(d)(1) or (2). See paragraph (d) of this
section for additional requirements when the Contract amount changes.
(c) SBA charge to Surety. SBA does not charge Sureties application or Bid Bond guarantee fees.
Subject to § 115.18(a)(4), the Surety must pay SBA a guarantee fee on each guaranteed bond (other
than a Bid Bond) within 60 calendar days after SBA’s approval of the Prior Approval Agreement. The
fee is a certain percentage of the bond premium determined by SBA and published in Notices in the
Federal Register from time to time. The fee is rounded to the nearest dollar. SBA does not receive any
portion of a Surety’s non-premium charges. See paragraph (d) of this section for additional
requirements when the Contract or bond amount changes.
(d) Contract or bond increases/decreases. —
(1) Notification and approval. The Prior Approval Surety must notify SBA of any increases or
decreases in the Contract or bond amount that aggregate 25% or $ 500,000 of the original
contract or bond amount, whichever is less, as soon as the Surety acquires knowledge of the
change. Whenever the original bond amount increases as a result of a single change order of at
least 25% or $ 500,000 of the original contract or bond amount, whichever is less or $ 50,000,

Page 2 of 3
13 CFR 115.32

the prior written approval of such increase by SBA is required on a supplemental Prior
Approval Agreement and is conditioned upon payment by the Surety of the increase in the
Principal’s guarantee fee as set forth in paragraph (d)(2) of this section. In notifying SBA of
any increase or decrease in the Contract or bond amount, the Surety must use the same form
(SBA Form 990 or SBA Form 990A) that it used in applying for the original bond guarantee.
(2) Increases; fees. The payment for the increase in the Principal’s guarantee fee, which is
computed on the increase in the Contract amount, is due upon notification of the increase in
the Contract or bond amount under this paragraph (d). If the increase in the Principal’s fee is
less than $ 250, no payment is due until the total amount of increases in the Principal’s fee
equals or exceeds $ 250. The Surety’s payment of the increase in the Surety’s guarantee fee,
computed on the increase in the bond Premium, must be submitted to SBA within 60 calendar
days of SBA’s approval of the Prior Approval Agreement, unless the amount of such increased
guarantee fee is less than $ 250. When the total amount of increase in the guarantee fee equals
or exceeds $ 250, the Surety must remit the fee within 60 calendar days.
(3) Decreases; refunds. Whenever SBA is notified of a decrease in the Contract or bond
amount, SBA will refund to the Principal a proportionate amount of the Principal’s guarantee
fee and rebate to the Surety a proportionate amount of SBA’s Premium share in the ordinary
course of business. If the amount to be refunded or rebated is less than $ 250, such refund or
rebate will not be made until the amounts to be refunded or rebated, respectively, aggregate at
least $ 250. Upon receipt of the refund, the Surety must promptly pay a proportionate amount
of its Premium to the Principal.

Statutory Authority
Authority Note Applicable to 13 CFR Ch. I, Pt. 115

History

[4 FR 47169, Nov. 9, 1989 (interim) and 55 FR 10225, Mar. 20, 1990 (final); 61 FR 3266, 3276, Jan. 31,
1996; 72 FR 34597, 34599, June 25, 2007; 77 FR 41663, 41665, July 16, 2012; 79 FR 2084, 2087, Jan.
13, 2014; 82 FR 39491, 39502, Aug. 21, 2017; 87 FR 48080, 48084, Aug. 8, 2022]
Annotations

Notes

[EFFECTIVE DATE NOTE:
77 FR 41663 , 41665, July 16, 2012, amended this section, effective Aug. 15, 2012; 79 FR 2084 , 2087,
Jan. 13, 2014, amended paragraph (d)(1), effective Feb. 12, 2014; 82 FR 39491 , 39502, Aug. 21, 2017,
amended paragraph (d)(1), effective Sept. 20, 2017; 87 FR 48080, 48084, Aug. 8, 2022, amended this
section, effective Sept. 7, 2022.]

Page 3 of 3
13 CFR 115.32

Research References & Practice Aids

Hierarchy Notes:
13 CFR Ch. I
13 CFR Ch. I, Pt. 115
LEXISNEXIS’ CODE OF FEDERAL REGULATIONS
Copyright © 2022 All rights reserved.

End of Document

13 CFR 115.35
This document is current through the Sept. 7, 2022 issue of the Federal Register, with the exception of the
amendments appearing at 87 FR 54166.
Code of Federal Regulations > Title 13 Business Credit and Assistance > Chapter I — Small Business
Administration > Part 115 — Surety Bond Guarantee [Effective until September 7, 2022] > Subpart B —
Guarantees Subject to Prior Approval

§ 115.35 Claims for reimbursement of Losses.
(a) Notification requirements. —(1) Events requiring notification. A Prior Approval Surety must
notify OSG of the occurrence of any of the following:
(i) Legal action under the bond has been initiated.
(ii) The Obligee has declared the Principal to be in default under the Contract.
(iii) The Surety has established a claim reserve for the bond.
(iv) The Surety has received any adverse information concerning the Principal’s financial
condition or possible inability to complete the project or to pay laborers or suppliers.
(2) Timing of notification. Notification must be made in writing at the earlier of the time
the Surety applies for a guarantee on behalf of an affected Principal, or within 30 days of
the date the Surety acquires knowledge, or should have acquired knowledge, of any of the
listed events.
(b) Surety action. The Surety must take all necessary steps to mitigate Losses resulting from any of the
events in paragraph (a) of this section, including the disposal at fair market value of any collateral held
by or available to the Surety. Unless SBA notifies the Surety otherwise, the Surety must take charge of
all claims or suits arising from a defaulted bond, and compromise, settle and defend such suits. The
Surety must handle and process all claims under the bond and all settlements and recoveries as it does
on non-guaranteed bonds.
(c) Claim reimbursement requests.
(1) Claims for reimbursement for Losses which the Surety has paid must be submitted
(together with a copy of the bond, the bonded Contract, and any indemnity agreements) with
the initial claim to OSG on a “Default Report, Claim for Reimbursement and Report of
Recoveries” (SBA Form 994H), within 90 days from the time of each disbursement. Claims
submitted after 90 days must be accompanied by substantiation satisfactory to SBA. The date
of the claim for reimbursement is the date of receipt of the claim by SBA, or such later date as
additional information requested by SBA is received.
(2) The Surety must also submit evidence of the disposal of all collateral at fair market value.
(3) SBA may request additional information prior to reimbursing the Surety for its Loss.

Page 2 of 3
13 CFR 115.35

(4) Subject to the offset provisions of part 140, SBA pays its share of the Loss incurred and
paid by the Surety within 45 days of receipt of the requisite information.
(5) Claims for reimbursement and any additional information submitted are subject to review
and audit by SBA, including but not limited to the Surety’s compliance with SBA’s regulations
and forms.
(d) Status updates. The Surety must submit semiannual status reports on each claim 6 months after the
initial default notice, and then every 6 months. The Surety must notify SBA immediately of any
substantial changes in the status of the claim or the amounts of Loss reserves.
(e) Reservation of SBA rights. The payment by SBA of a Surety’s claim does not waive or invalidate
any of the terms of the Prior Approval Agreement, the regulations set forth in this part 115, or any
defense SBA may have against the Surety. Within 30 days of receipt of notification that a claim or any
portion of a claim should not have been paid by SBA, the Surety must repay the specified amounts to
SBA.

Statutory Authority
Authority Note Applicable to 13 CFR Ch. I, Pt. 115

History

[54 FR 47169, Nov. 9, 1989 (interim) and 55 FR 10225, Mar. 20, 1990 (final); 61 FR 3266, 3277, Jan. 31,
1996; 79 FR 2084, 2087, Jan. 13, 2014]
Annotations

Notes

[EFFECTIVE DATE NOTE:
79 FR 2084, 2087, Jan. 13, 2014, amended paragraphs (c)(1) and (c)(4), effective Feb. 12, 2014.]

Research References & Practice Aids

Hierarchy Notes:
13 CFR Ch. I
13 CFR Ch. I, Pt. 115
LEXISNEXIS’ CODE OF FEDERAL REGULATIONS
Copyright © 2022 All rights reserved.

Page 3 of 3
13 CFR 115.35

End of Document

13 CFR 115.64
This document is current through the Sept. 7, 2022 issue of the Federal Register, with the exception of the
amendments appearing at 87 FR 54166.
Code of Federal Regulations > Title 13 Business Credit and Assistance > Chapter I — Small Business
Administration > Part 115 — Surety Bond Guarantee [Effective until September 7, 2022] > Subpart C —
Preferred Surety Bond (Psb) Guarantees

Notice
. This section has more than one version with varying effective dates.

§ 115.64 Timeliness requirement. [Effective September 7, 2022]
There must be no Execution or approval of a bond by a PSB Surety after commencement of work
under a Contract unless the Surety obtains written approval from the D/SG. To apply for such
approval, the Surety must submit a completed “Surety Bond Guarantee Agreement Addendum”
(SBA Form 991), together with the evidence and certifications described in § 115.19(f)(1)(ii). For
purposes of this section, work has commenced under a Contract when a Principal takes any action
related to the contract or bond that would have exposed its Surety to liability under applicable law
had a bond been Executed (or approved, if the Surety is legally bound by such approval) at the
time.

Statutory Authority
Authority Note Applicable to 13 CFR Ch. I, Pt. 115

History

[54 FR 47169, Nov. 9, 1989, as amended at 55 FR 10226, Mar. 20, 1990; 61 FR 3266, 3279, Jan. 31,
1996; 72 FR 50037, 50038, Aug. 30, 2007; 87 FR 48080, 48084, Aug. 8, 2022]
Annotations

Notes

[EFFECTIVE DATE NOTE:

Page 2 of 2
13 CFR 115.64

72 FR 50037 , 50038, Aug. 30, 2007, amended this section, effective Aug. 30, 2007; 87 FR 48080,
48084, Aug. 8, 2022, amended this section, effective Sept. 7, 2022.]

Research References & Practice Aids

Hierarchy Notes:
13 CFR Ch. I
13 CFR Ch. I, Pt. 115
LEXISNEXIS’ CODE OF FEDERAL REGULATIONS
Copyright © 2022 All rights reserved.

End of Document

13 CFR 115.70
This document is current through the Sept. 7, 2022 issue of the Federal Register, with the exception of the
amendments appearing at 87 FR 54166.
Code of Federal Regulations > Title 13 Business Credit and Assistance > Chapter I — Small Business
Administration > Part 115 — Surety Bond Guarantee [Effective until September 7, 2022] > Subpart C —
Preferred Surety Bond (Psb) Guarantees

§ 115.70 Claims for reimbursement of Losses.
(a) How claims are submitted. A PSB Surety must submit claims for reimbursement on a form
approved by SBA no later than 90 days from the date the Surety paid the amount. Loss is determined
as of the date of receipt by SBA of the claim for reimbursement, or as of such later date as additional
information requested by SBA is received. Subject to the offset provisions of part 140, SBA pays its
share of Loss within 45 days of receipt of the requisite information. Claims for reimbursement and any
additional information submitted are subject to review and audit by SBA.
(b) Surety responsibilities. The PSB Surety must take all necessary steps to mitigate Losses when
legal action against a bond has been instituted, when the Obligee has declared a default, and when the
Surety has established a claim reserve. The Surety may dispose of collateral at fair market value only.
Unless SBA notifies the Surety otherwise, the Surety must take charge of all claims or suits arising
from a defaulted bond, and compromise, settle or defend the suits. The Surety must handle and
process all claims under the bond and all settlements and recoveries in the same manner as it does on
non-guaranteed bonds.
(c) Reservation of SBA’s rights. The payment by SBA of a PSB Surety’s claim does not waive or
invalidate any of the terms of the PSB Agreement, the regulations in this part 115, or any defense SBA
may have against the Surety. Within 30 days of receipt of notification that a claim or any portion of a
claim should not have been paid by SBA, the Surety must repay the specified amounts to SBA.

Statutory Authority
Authority Note Applicable to 13 CFR Ch. I, Pt. 115

History

[61 FR 3266, 3279, Jan. 31, 1996; 79 FR 2084, 2087, Jan. 13, 2014]
Annotations

Notes

Page 2 of 2
13 CFR 115.70

[EFFECTIVE DATE NOTE:
79 FR 2084, 2087, Jan. 13, 2014, amended paragraph (a), effective Feb. 12, 2014.]

Research References & Practice Aids

Hierarchy Notes:
13 CFR Ch. I
13 CFR Ch. I, Pt. 115
LEXISNEXIS’ CODE OF FEDERAL REGULATIONS
Copyright © 2022 All rights reserved.

End of Document