15 U.S.C. § 631: Declaration of policy

The essence of the American economic system of private enterprise is free competition. Only through full and free competition can free markets, free entry into business, and opportunities for the expression and growth of personal initiative and individual judgment be assured. The preservation and expansion of such competition is basic not only to the economic well-being but to the security of this Nation. Such security and well-being cannot be realized unless the actual and potential capacity of small business is encouraged and developed. It is the declared policy of the Congress that the Government should aid, counsel, assist, and protect, insofar as is possible, the interests of small-business concerns in order to preserve free competitive enterprise, to insure that a fair proportion of the total purchases and contracts or subcontracts for property and services for the Government (including but not limited to contracts or subcontracts for maintenance, repair, and construction) be placed with small-business enterprises, to insure that a fair proportion of the total sales of Government property be made to such enterprises, and to maintain and strengthen the overall economy of the Nation. enhancing their ability to export; facilitating technology transfers; enhancing their ability to compete effectively and efficiently against imports; increasing the access of small businesses to long-term capital for the purchase of new plant and equipment used in the production of goods and services involved in international trade; disseminating information concerning State, Federal, and private programs and initiatives to enhance the ability of small businesses to compete in international markets; and ensuring that the interests of small businesses are adequately represented in bilateral and multilateral trade negotiations. The Congress recognizes that the Department of Commerce is the principal Federal agency for trade development and export promotion and that the Department of Commerce and the Small Business Administration work together to advance joint interests. It is the purpose of this chapter to enhance, not alter, their respective roles. It is the declared policy of the Congress that the Government, through the Small Business Administration, should aid and assist small business concerns which are engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries; and the financial assistance programs authorized by this chapter are also to be used to assist such concerns. The assistance programs authorized by sections 636(i) and 636(j) of this title are to be utilized to assist in the establishment, preservation, and strengthening of small business concerns and improve the managerial skills employed in such enterprises, with special attention to small business concerns (1) located in urban or rural areas with high proportions of unemployed or low-income individuals; or (2) owned by low-income individuals; and to mobilize for these objectives private as well as public managerial skills and resources. that ownership and control of productive capital is concentrated in the economy of the United States and certain groups, therefore, own and control little productive capital; that certain groups in the United States own and control little productive capital because they have limited opportunities for small business ownership; that the broadening of small business ownership among groups that presently own and control little productive capital is essential to provide for the well-being of this Nation by promoting their increased participation in the free enterprise system of the United States; that such development of business ownership among groups that presently own and control little productive capital will be greatly facilitated through the creation of a small business ownership development program, which shall provide services, including, but not limited to, financial, management, and technical assistance. 1 1 So in original. The period probably should be a semicolon. that the power to let Federal contracts pursuant to section 637(a) of this title can be an effective procurement assistance tool for development of business ownership among groups that own and control little productive capital; and that the procurement authority under section 637(a) of this title shall be used only as a tool for developing business ownership among groups that own and control little productive capital. foster business ownership and development by individuals in groups that own and control little productive capital; and promote the competitive viability of such firms in the marketplace by creating a small business and capital ownership development program to provide such available financial, technical, and management assistance as may be necessary. Further, it is the declared policy of the Congress that the Government should aid and assist victims of floods and other catastrophes, and small-business concerns which are displaced as a result of federally aided construction programs. that the opportunity for full participation in our free enterprise system by socially and economically disadvantaged persons is essential if we are to obtain social and economic equality for such persons and improve the functioning of our national economy; that many such persons are socially disadvantaged because of their identification as members of certain groups that have suffered the effects of discriminatory practices or similar invidious circumstances over which they have no control; that such groups include, but are not limited to, Black Americans, Hispanic Americans, Native Americans, Indian tribes, Asian Pacific Americans, Native Hawaiian Organizations, and other minorities; that it is in the national interest to expeditiously ameliorate the conditions of socially and economically disadvantaged groups; that such conditions can be improved by providing the maximum practicable opportunity for the development of small business concerns owned by members of socially and economically disadvantaged groups; that such development can be materially advanced through the procurement by the United States of articles, equipment, supplies, services, materials, and construction work from such concerns; and that such procurements also benefit the United States by encouraging the expansion of suppliers for such procurements, thereby encouraging competition among such suppliers and promoting economy in such procurements. promote the business development of small business concerns owned and controlled by socially and economically disadvantaged individuals so that such concerns can compete on an equal basis in the American economy; promote the competitive viability of such concerns in the marketplace by providing such available contract, financial, technical, and mangement 3 assistance as may be necessary; and 3 So in original. Probably should be “management”. clarify and expand the program for the procurement by the United States of articles, supplies, services, materials, and construction work from small business concerns owned by socially and economically disadvantaged individuals. In administering the disaster loan program authorized by section 636 of this title , to the maximum extent possible, the Administration shall provide assistance and counseling to disaster victims in filing applications, providing information relevant to loan processing, and in loan closing and prompt disbursement of loan proceeds and shall give the disaster program a high priority in allocating funds for administrative expenses. women owned business has become a major contributor to the American economy by providing goods and services, revenues, and jobs; over the past two decades there have been substantial gains in the social and economic status of women as they have sought economic equality and independence; despite such progress, women, as a group, are subjected to discrimination in entrepreneurial endeavors due to their gender; such discrimination takes many overt and subtle forms adversely impacting the ability to raise or secure capital, to acquire managerial talents, and to capture market opportunities; it is in the national interest to expeditiously remove discriminatory barriers to the creation and development of small business concerns owned and controlled by women; the removal of such barriers is essential to provide a fair opportunity for full participation in the free enterprise system by women and to further increase the economic vitality of the Nation; increased numbers of small business concerns owned and controlled by women will directly benefit the United States Government by expanding the potential number of suppliers of goods and services to the Government; and programs and activities designed to assist small business concerns owned and controlled by women must be implemented in such a way as to remove such discriminatory barriers while not adversely affecting the rights of socially and economically disadvantaged individuals. vigorously promote the legitimate interests of small business concerns owned and controlled by women; remove, insofar as possible, the discriminatory barriers that are encountered by women in accessing capital and other factors of production; and require that the Government engage in a systematic and sustained effort to identify, define and analyze those discriminatory barriers facing women and that such effort directly involve the participation of women business owners in the public/private sector partnership. None of the funds made available pursuant to this chapter may be used to provide any direct benefit or assistance to any individual in the United States if the Administrator or the official to which the funds are made available receives notification that the individual is not lawfully within the United States. comply with congressional intent to foster the participation of small business concerns as prime contractors, subcontractors, and suppliers; structure its contracting requirements to facilitate competition by and among small business concerns, taking all reasonable steps to eliminate obstacles to their participation; and avoid unnecessary and unjustified bundling of contract requirements that precludes small business participation in procurements as prime contractors. Sections 1 and 2 [enacting provisions set out as notes under this section and section 636 of this title ]. Section 101 [enacting provisions set out as a note under section 636 of this title ]. Sections 202, 203, 204, 206, and 207 [amending this section and sections 636 and 637 of this title]. Sections 301(a) and 303(d), (e), and (f) [amending sections 636 and 637 of this title and enacting provisions set out as a note under section 637 of this title ]. Sections 405, 406, 408, and 410 [amending sections 636, 639, and 645 of this title and enacting provisions set out as a note under section 636 of this title ]. Sections 504 and 505 [amending section 636 of this title and enacting provisions set out as notes under section 636 of this title ]. Sections 601 and 603 [amending section 644 of this title ]. Titles VII and VIII [amending section 632 of this title and section 541 of former Title 40, Public Buildings, Property, and Works, enacting provisions set out as notes under sections 632, 636, and 644 of this title, and amending provisions set out as a note under section 644 of this title ]. Sections 7(j)(13)(G) and 7(j)(13)(I) of the Small Business Act [section 636(j)(13)(G), (I) of this title] (as added by section 301(b)). Sections 201, 205, and 208 [amending sections 636 and 637 of this title]. Sections 301(b), 301(c), 303(a), 303(c), 303(g), 303(h), and 304 [amending sections 636 and 637 of this title and enacting provisions set out as a note under section 637 of this title ]. Sections 401, 402, 403, 404, and 409 [amending sections 633 and 637 of this title and enacting provisions set out as a note under section 633 of this title ]. Section 602 [enacting provisions set out as a note under section 637 of this title ]. Section 302 [amending section 636 of this title ] shall take effect on June 1, 1989 . Section 407 [amending section 637 of this title ] shall take effect with respect to contracts entered into on or after June 1, 1989 . Section 209 [amending section 637 of this title ]. Section 303(b) [amending section 637 of this title ]. Sections 501, 502, and 503 [amending sections 637 and 644 of this title]. Section 7(j)(13)(E) of the Small Business Act [ section 636(j)(13)(E) of this title ] (as added by section 301(b) of this Act).” Proposed amendments to the Federal Acquisition Regulation or proposed Small Business Administration regulations under this subtitle [subtitle B (§§ 411–417) of title IV of Pub. L. 105–135 , amending this section and sections 632, 637 and 644 of this title and enacting provisions set out as notes under section 637 of this title and section 1122 of Title 41 , Public Contracts] and the amendments made by this subtitle shall be published not later than 120 days after the date of enactment of this Act [ Dec. 2, 1997 ] for the purpose of obtaining public comment pursuant to section 22 of the Office of Federal Procurement Policy Act ([former] 41 U.S.C. 418b ) [now 41 U.S.C. 1707 ], or chapter 5 of title 5, United States Code, as appropriate. The public shall be afforded not less than 60 days to submit comments. Final regulations shall be published not later than 270 days after the date of enactment of this Act. The effective date for such final regulations shall be not less than 30 days after the date of publication.” to carry out the Small Business Development Center Program under section 21 [ 15 U.S.C. 648 ], but not to exceed the annual funding level, as specified in section 21(a); to pay the expenses of the National Small Business Development Center Advisory Board, as provided in section 21(i); to pay the expenses of the information sharing system, as provided in section 21(c)(8); to pay the expenses of the association referred to in section 21(a)(3)(A) for conducting the accreditation program, as provided in section 21(k)(2); to pay the expenses of the Administration, including salaries of examiners, for conducting examinations as part of the accreditation program conducted by the association referred to in section 21(a)(3)(A); and to pay for small business development center grants as mandated or directed by Congress. Notwithstanding any other provision of law, the Administration shall enter into commitments for direct loans and to guarantee loans, debentures, payment of rentals, or other amounts due under qualified contracts and other types of financial assistance and enter into commitments to purchase debentures and preferred securities and to guarantee sureties against loss pursuant to programs under this Act [ 15 U.S.C. 631 et seq.] and the Small Business Investment Act of 1958 [ 15 U.S.C. 661 et seq.], in the full amounts provided by law subject only to (A) the availability of qualified applications, and (B) limitations contained in appropriations Acts. Nothing in this paragraph authorizes the Administration to reduce or limit its authority to enter into such commitments. Subject to approval in appropriations Acts, amounts authorized for preferred securities, debentures or participating securities under title III of the Small Business Investment Act of 1958 [ 15 U.S.C. 681 et seq.] may be obligated in one fiscal year and disbursed or guaranteed in any 1 or more of the 4 subsequent fiscal years. There are authorized to be transferred from the disaster loan revolving fund such sums as may be necessary and appropriate for administrative expenses of the Administration. shall mean the net amount of the loan principal guaranteed by the Small Business Administration (and does not include any amount which is not guaranteed); and shall be available for a national program, except that the Administration may use not more than an amount equal to 10 percent of the amount authorized each year for any special or pilot program directed to identified sectors of the small business community or to specific geographic regions of the United States. There are authorized to be appropriated to the Administration for fiscal year 1991 such sums as may be necessary to carry out the provisions of this Act [ 15 U.S.C. 631 et seq.] and the Small Business Investment Act of 1958. There also are hereby authorized to be appropriated such sums as may be necessary and appropriate for the carrying out of the provisions and purposes, including administrative expenses, of sections 7(b)(1) and 7(b)(2) of this Act [ 15 U.S.C. 636(b)(1) , (2)]; and there are authorized to be transferred from the disaster loan revolving fund such sums as may be necessary and appropriate for such administrative expenses. $15,000,000 for fiscal year 2005. $15,000,000 for fiscal year 2006. $75,000,000 in technical assistance grants, as provided in section 7(m) [ 15 U.S.C. 636(m) ]; and $105,000,000 in direct loans, as provided in 7(m). $16,500,000,000 in general business loans, as provided in section 7(a) [ 15 U.S.C. 636(a) ]; $6,000,000,000 in certified development company financings, as provided in section 7(a)(13) and as provided in section 504 of the Small Business Investment Act of 1958 [ 15 U.S.C. 697a ]; $500,000,000 in loans, as provided in section 7(a)(21); and $50,000,000 in loans, as provided in section 7(m). $4,250,000,000 in purchases of participating securities; and $3,250,000,000 in guarantees of debentures. For the programs authorized by part B of title IV of the Small Business Investment Act of 1958 [ 15 U.S.C. 694a et seq.], the Administration is authorized to enter into guarantees not to exceed $6,000,000,000, of which not more than 50 percent may be in bonds approved pursuant to section 411(a)(3) of that Act [ 15 U.S.C. 694b(a)(3) ]. The Administration is authorized to make grants or enter into cooperative agreements for a total amount of $7,000,000 for the Service Corps of Retired Executives program authorized by section 8(b)(1) [ 15 U.S.C. 637(b)(1) ]. There are authorized to be appropriated to the Administration for fiscal year 2005 such sums as may be necessary to carry out the provisions of this Act not elsewhere provided for, including administrative expenses and necessary loan capital for disaster loans pursuant to section 7(b) [ 15 U.S.C. 636(b) ], and to carry out the Small Business Investment Act of 1958 [ 15 U.S.C. 661 et seq.], including salaries and expenses of the Administration. no funds are authorized to be used as loan capital for the loan program authorized by section 7(a)(21) except by transfer from another Federal department or agency to the Administration, unless the program level authorized for general business loans under paragraph (1)(B)(i) is fully funded; and the Administration may not approve loans on its own behalf or on behalf of any other Federal department or agency, by contract or otherwise, under terms and conditions other than those specifically authorized under this Act or the Small Business Investment Act of 1958, except that it may approve loans under section 7(a)(21) of this Act in gross amounts of not more than $2,000,000. $80,000,000 in technical assistance grants, as provided in section 7(m) [ 15 U.S.C. 636(m) ]; and $110,000,000 in direct loans, as provided in 7(m). $17,000,000,000 in general business loans, as provided in section 7(a) [ 15 U.S.C. 636(a) ]; $7,500,000,000 in certified development company financings, as provided in section 7(a)(13) and as provided in section 504 of the Small Business Investment Act of 1958 [ 15 U.S.C. 697a ]; $500,000,000 in loans, as provided in section 7(a)(21); and $50,000,000 in loans, as provided in section 7(m). $4,500,000,000 in purchases of participating securities; and $3,500,000,000 in guarantees of debentures. For the programs authorized by part B of title IV of the Small Business Investment Act of 1958 [ 15 U.S.C. 694a et seq.], the Administration is authorized to enter into guarantees not to exceed $6,000,000,000, of which not more than 50 percent may be in bonds approved pursuant to section 411(a)(3) of that Act [ 15 U.S.C. 694b(a)(3) ]. The Administration is authorized to make grants or enter into cooperative agreements for a total amount of $7,000,000 for the Service Corps of Retired Executives program authorized by section 8(b)(1) [ 15 U.S.C. 637(b)(1) ]. There are authorized to be appropriated to the Administration for fiscal year 2006 such sums as may be necessary to carry out the provisions of this Act not elsewhere provided for, including administrative expenses and necessary loan capital for disaster loans pursuant to section 7(b) [ 15 U.S.C. 636(b) ], and to carry out the Small Business Investment Act of 1958, including salaries and expenses of the Administration. no funds are authorized to be used as loan capital for the loan program authorized by section 7(a)(21) except by transfer from another Federal department or agency to the Administration, unless the program level authorized for general business loans under paragraph (1)(B)(i) is fully funded; and the Administration may not approve loans on its own behalf or on behalf of any other Federal department or agency, by contract or otherwise, under terms and conditions other than those specifically authorized under this Act or the Small Business Investment Act of 1958, except that it may approve loans under section 7(a)(21) of this Act in gross amounts of not more than $2,000,000. $4,000,000,000 in purchases of participating securities; and $3,000,000,000 in guarantees of debentures. Subject to paragraphs (2) and (3) and with respect to fiscal year 2019 and each fiscal year thereafter, if the Administrator determines that the amount of commitments by the Administrator for general business loans authorized under section 7(a) [ 15 U.S.C. 636(a) ] for a fiscal year could exceed the limit on the total amount of commitments the Administrator may make for those loans under this Act, an appropriations Act, or any other provision of law, the Administrator may make commitments for those loans for that fiscal year in an aggregate amount equal to not more than 115 percent of that limit. the Committee on Small Business and Entrepreneurship and the Subcommittee on Financial Services and General Government of the Committee on Appropriations of the Senate; and the Committee on Small Business and the Subcommittee on Financial Services and General Government of the Committee on Appropriations of the House of Representatives. The Administrator shall not exercise the authority under paragraph (1) more than once during any fiscal year. $80,000,000 in technical assistance grants, as provided in section 7(m) [ 15 U.S.C. 636(m) ]; and $110,000,000 in direct loans, as provided in section 7(m).” best practices for procuring goods and services from small business concerns (as defined under section 3 of the Small Business Act ( 15 U.S.C. 632 )); and information on avoiding conflicts with the requirements of the Small Business Act ( 15 U.S.C. 631 et seq.). shall ensure that staff for Federal agencies described in subsection (a) receive the training described in such subsection; and may request the assistance of the relevant Director of Small and Disadvantaged Business Utilization (as described in section 15(k) of the Small Business Act ( 15 U.S.C. 644(k) )) to carry out the requirements of paragraph (1). The Administrator of the Small Business Administration shall provide a copy of the training curriculum developed under subsection (a) to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate. In this section, the term ‘category management’ has the meaning given by the Director of the Office of Management and Budget.” Not later than 1 year after the date of enactment of this part [ Jan. 2, 2013 ], the Defense Acquisition University and the Federal Acquisition Institute shall each provide a course on contracting requirements under the Small Business Act [ 15 U.S.C. 631 et seq.], including the requirements for small business concerns owned and controlled by service-disabled veterans, qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women. To have a Federal Acquisition Certification in Contracting (or any successor certification) or the equivalent Department of Defense certification an individual shall be required to complete the course established under subsection (a).” promoting a climate or environment that is responsive to small business concerns; communicating the importance of achieving the agency’s small business contracting goals; and encouraging small business awareness, outreach, and support. In this section [enacting this note and provisions set out as a note under section 3396 of Title 5 , Government Organization and Employees] the term ‘responsible for acquisition’, with respect to a member of the senior executive service or other senior official, means such a member or official who acquires services or supplies, directs agency organizations to acquire services or supplies, oversees acquisition officials, including program managers, contracting officers, and other acquisition workforce personnel responsible for formulating and approving acquisition strategies and plans.” to foster enhanced entrepreneurship among eligible veterans by providing increased opportunities; to vigorously promote the legitimate interests of small business concerns owned and controlled by eligible veterans; and to ensure that those concerns receive fair consideration in purchases made by the Federal Government. The term ‘eligible veteran’ means a disabled veteran (as defined in section 4211(3) of title 38 , United States Code). that is at least 51 percent owned by 1 or more eligible veterans, or in the case of a publicly owned business, at least 51 percent of the stock of which is owned by 1 or more eligible veterans; and whose management and daily business operations are controlled by eligible veterans. the needs of small business concerns owned and controlled by eligible veterans; the availability and utilization of Administration programs by small business concerns owned and controlled by eligible veterans; the percentage, and dollar value, of Federal contracts awarded to small business concerns owned and controlled by eligible veterans in the preceding 5 fiscal years; and methods to improve Administration and other agency programs to serve the needs of small business concerns owned and controlled by eligible veterans. The report under paragraph (1) shall include recommendations to Congress concerning the need for legislation and recommendations to the Office of Management and Budget, relevant offices within the Administration, and the Department of Veterans Affairs. may conduct surveys of small business concerns owned and controlled by eligible veterans and service disabled veterans, including those who have sought financial assistance or other services from the Administration; shall consult with the appropriate committees of Congress, relevant groups and organizations in the nonprofit sector, and Federal or State government agencies; and shall have access to any information within other Federal agencies that pertains to such veterans and their small businesses, unless such access is specifically prohibited by law. “After the date of issuance of the report required by section 703(a), the Secretary of Veterans Affairs shall, in consultation with the Assistant Secretary for Veterans’ Employment and Training and the Administrator, engage in efforts each fiscal year to identify small business concerns owned and controlled by eligible veterans in the United States. The Secretary shall inform each small business concern identified under this section that information on Federal procurement is available from the Administrator. “The Administrator shall take such actions as may be necessary to ensure that small business concerns owned and controlled by eligible veterans have access to programs established under the Small Business Act [ 15 U.S.C. 631 et seq.] that provide entrepreneurial training, business development assistance, counseling, and management assistance to small business concerns, including, among others, the Small Business Development Center program and the Service Corps of Retired Executives (SCORE) program. “The Administrator, the Secretary of Veterans Affairs, and the Assistant Secretary of Labor for Veterans’ Employment and Training, shall develop and implement a program of comprehensive outreach to assist eligible veterans, which program shall include business training and management assistance, employment and relocation counseling, and dissemination of information on veterans’ benefits and veterans’ entitlements.” the term ‘Administration’ means the Small Business Administration; the term ‘Administrator’ means the Administrator of the Small Business Administration; the term ‘Committees’ means the Committees on Small Business of the House of Representatives and the Senate [Committee on Small Business of Senate now Committee on Small Business and Entrepreneurship of Senate]; and the term ‘small business concern’ has the meaning given the term in section 3 of the Small Business Act ( 15 U.S.C. 632 ).”