ΙΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝ» Ί Public Law 95-507 Ί ΘΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΌ Many laws apply to Federal procurement, and some have special provisions about small business and disadvantaged or minority small business contracting. However, no law has had a more profound effect than Public Law 95-507. This law (enacted in October 1978) made major revisions to the Small Business Act. In summary, the law requires: (1) A strong and specific commitment to subcontracting with small and small dis- advantaged businesses by large business prime contractors. (2) Detailed subcontracting plans for larger contracts (to be explained further under the heading of " Subcontracting Assistance"). These may be accepted or rejected by the Government contracting officer in a negotiated procurement and must be carried out forcefully in either a negotiated or sealed bid procurement by the successful large business. (3) Monitoring of performance against the plan by SBA and by the procuring activity's contracting officer. (4) Federal buying agencies to establish special units to assist small businesses by expanding their contracting opportunities and by helping solve problems. (5) Annual goals for small business contracting to be set by Federal agencies. It also makes major changes to SBA's disadvantaged small business program in organization, program content and procedures. ΙΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝ» Ί Statements Required by Laws Ί Ί and Executive Orders Ί ΘΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΌ Federal executive agencies, including the Small Business Administration, are required to withhold or limit financial assistance, to impose special conditions on approved loans, to provide special notices to applicants or borrowers and to require special reports and data from borrowers in order to comply with legislation passed by the Congress and Executive Orders issued by the President and by the provisions of various inter-agency agreements. SBA has issued regulations and procedures that implement these laws and executive orders and they are contained in Parts 112, 113 and 116, Title 13 Code of Federal Regulations Chapter 1, or SOP. This form contains a brief summary of the various laws and executive orders that affect SBA's business and disaster loan programs and gives applicants and borrowers the notices required by law or otherwise. ΙΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝ» Ί Freedom of Information Act Ί Ί (5 US.C. 552) Ί ΘΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΌ This law provides that, with some exceptions, SBA must supply information reflected in agency files and records to a person requesting it. Information about approved loans that will be automatically released includes, among other things, statistics on our loan programs (individual borrowers are not identified in the statistics) and other information such as the names of the borrowers (and their officers, directors, stockholders or partners), the collateral pledged to secure the loan, the amount of the loan, its purpose in general terms and the maturity. Proprietary data on a borrower would not routinely be made available to third parties. All requests under this Act are to be addressed to the nearest SBA office and be identified as a Freedom of Information request. ΙΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝ» Ί Privacy Act Ί Ί (5 us.c. 552a) Ί ΘΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΌ Disaster home loan files are covered by this legislation because they are normally maintained in the names of individuals. Business loan files are maintained by business name or in the name of individuals in their entrepreneurial capacity. Thus they are not files on individuals and, therefore, are not subject to this Act. Any person can request to see or get copies of any personal information that SBA has in the requestor's file. Requests for information about another party may be denied unless SBA has the written permission of the individual to release the information to the requestor or unless the information is subject to disclosure under the Freedom of Information Act. (The "Acknowledgement" section of this form contains the written permission of SBA to release information when a disaster victim requests assistance under the family and individual grant program.) NOTE: Any person concerned with the collection of information, its voluntariness, disclosure or routine use under the Privacy Act or requesting information under the Freedom of Information Act may contact the Director, Freedom of Information/Privacy Acts Division, Small Business Administration, 1441 L Street, N.W., Washington, D.C. 20416, for information about the Agency's procedures on these two subjects. SBA FORM 1261(4-89) REF:SOP 5010 USE 12/86 Edition Until Exhausted. ΙΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝ» Ί Right to Financial Privacy Act of 1978 Ί Ί (12 US.C. 3401) Ί ΘΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΌ This is notice to you, as required by the Right to Financial Privacy Act of 1978, of SBA's access rights to financial records held by financial institutions that are or have been doing business with you or your business, including any financial institution participating in a loan or loan guarantee. The law provides that SBA shall have a right of access to your financial records in connection with its consideration or administration of assistance to you in the form of a Government loan or loan guaranty agreement. SBA is required to provide a certificate of its compliance with the Act to a financial institution in connection with its first request for access to your financial records, after which no further certification is required for subsequent accesses. The law also provides that SBA's access rights continue for the term of any approved loan or loan guaranty agreement. No further notice to you of SBA's access rights is required during the term of any such agreement. The law also authorizes SBA to transfer to another Government authority any financial records included in an application for a loan, or concerning an approved loan or loan guarantee, as necessary to process, service or foreclose a loan or loan guarantee or to collect on a defaulted loan or loan guarantee. No other transfer of your financial records to another Government authority will be permitted by SBA except as required or permitted by law. ΙΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝ» Ί Flood Disaster Protection Act Ί Ί (42 US.C. 4011) Ί ΘΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΌ Regulations have been issued by the Federal Insurance Administration (FIA) and by SBA implementing this Act and its amendments. These regulations prohibit SBA from making certain loans in an FIA designated floodplain unless Federal flood insurance is purchased as a condition of the loan. Failure to maintain the required level of flood insurance makes the applicant ineligible for any future financial assistance from SBA under any program, including disaster assistance. ΙΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝ» Ί EXECUTIVE ORDERS -- FLOODPLAIN MANAGEMENT AND WETLAND Ί Ί PROTECTION (42 F.R. 26951 and 42 F.R. 2961) Ί ΘΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΌ The SBA discourages any settlement in or development of a floodplain or a wetland. This statement is to notify all SBA loan applicants that such actions are hazardous to both life and property and should be avoided. The additional cost of flood preventive construction must be considered in addition to the possible loss of all assets and investments in future floods. ΙΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝ» Ί Lead-Based Paint Poisoning Prevention Act Ί Ί (42 US.C. 4821 et. seq.) Ί ΘΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΌ Borrowers using SBA funds for the construction or rehabilitation of a residential structure are prohibited from using lead-based paint (as defined in SBA regulations) on all interior surfaces, whether accessible or not, and exterior surfaces, such as stairs, decks, porches, railings, windows and doors, which are readily accessible to children under 7 years of age. A"residential structure" is any home, apartment, hotel, motel, orphanage, boarding school, dormitory, day care center, extended care facility, college or other school housing, hospital, group practice or community facility and all other residential or institutional structures where persons reside. ΙΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝ» Ί Equal Credit Opportunity Act Ί Ί (15 US.C. 1691) Ί ΘΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΌ The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age (provided that the applicant has the capacity to enter into a binding contract); because all or part of the applicant's income drives from any public assistance program, or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The Federal agency that administers compliance with this law concerning this creditor is the Federal Trade Commission, Equal Credit Opportunity, Room 500, 633 Indiana Avenue, N.W., Washington, D.C. 20580. ΙΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝ» Ί Civil Rights Legislation Ί ΘΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΌ All businesses receiving SBA financial assistance must agree not to discriminate in any business practice, including employment practices and services to the public, on the basis of categories cited in 13 C.F.R., Parts 112 and 113 of SBA Regulations. This includes making their goods and services available to handicapped clients or customers. All business borrowers will be required to display the "Equal Employment Opportunity Poster" prescribed by SBA. ΙΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝ» Ί Executive Order 11738 -- Environmental Protection Ί Ί (38 F.R. 25161) Ί ΘΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΌ The Executive Order charges SBA with administering its loan programs in a manner that will result in effective enforcement of the Clean Air Act, the Federal Water Pollution Act and other environmental protection legislation. SBA must, therefore, impose conditions on some loans. By acknowledging receipt of this form and presenting the application, the principals of all small businesses borrowing $100,000 or more in direct funds stipulate to the following: 1. That any facility used, or to be used, by the subject firm is not listed on the EPA list of Violating Facilities. 2. That subject firm will comply with all the requirements of Section 114 of the Clean Air Act (42 U.S.C. 7414) and Section 308 of the Water-Act (33 U.S.C. 1318) relating to inspection, monitoring, entry, reports and information, as well as all other requirements specified in Section 114 and Section 308 of the respective Acts, and all regulations and guidelines issued thereunder. 3. That subject firm will notify SBA of the receipt of any communication from the Director of the Environmental Protection Agency indicating that a facility utilized, or to be utilized, by subject firm is under consideration to be listed on EPA List of Violating Facilities. ΙΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝ» Ί Occupational Safety and Health Act Ί Ί (15 US.C. 651 et seq.) Ί ΘΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΌ This legislation authorizes the Occupational Safety and Health Administration in the Department of Labor to require businesses to modify facilities and procedures to protect employees or pay penalty fees. In some instances the business can be forced to cease operations or be prevented from starting operations in a new facility. Therefore, in some instances SBA may require additional information from an applicant to determine whether the business will be in compliance with OSHA regulations and allowed to operate its facility after the loan is approved and disbursed. In all instances, signing this form as borrower is a certification that the OSHA requirements that apply to the borrower's business have been determined and the borrower is, to the best of its knowledge, in compliance. ΙΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝ» Ί Debt Collection Act of 1982 Deficit Reduction ActΊ Ί of 1984 (31 U5.C. 3701 et seq. and other titles)Ί ΘΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΌ These laws require SBA to aggressively collect any loan payments which become delinquent. SBA must obtain your taxpayer identification number when you apply for a loan. If you receive a loan, and do not make payments as they come due, SBA may take one or more of the following actions: - Report the status of your loan(s) to credit bureaus - Hire a collection agency to collect your loan - Offset your income tax refund or other amounts due to you from the Federal Government - Suspend or debar you or your company from doing business with the Federal Government - Refer your loan to the Department of Justice or other attorneys for litigation - Foreclose on collateral or take other action permitted in the loan instruments. ΙΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝ» Ί Consumer Credit Protection Act Ί Ί (15 US.C. 1601 et seq.) Ί ΘΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΌ This legislation gives an applicant who is refused credit because of adverse information about the applicant's credit, reputation, character or mode of living an opportunity to refute or challenge the accuracy of such reports. Therefore, whenever SBA declines a loan in whole or in part because of adverse information in a credit report, the applicant will be given the name and address of the reporting agency so the applicant can seek to have that agency correct its report, if inaccurate. If SBA declines a loan in whole or in part because of adverse information received from a source other than a credit reporting agency, the applicant will be given information about the nature of the adverse information but not the source of the report. A recipient of an SBA disaster home loan may rescind such a loan within 3 days after the consummation of the transaction, in accordance with "Regulation Z" of the Federal Reserve Board (12 C.F.R. Part 226). This right of rescission is not applicable to other SBA loans which are extended primarily for business, commercial or agricultural purposes. ΙΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝ» Ί Applicant's Acknowledgement Ί ΘΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΝΌ My (our) signature(s) acknowledge(s) receipt of this form, that I (we) have read it and that I (we) have a copy for my (our) files. My (our) signature(s) represents my (our) agreement to comply with the requirements the Small Business Administration makes in connection with the approval of my (our) loan request and to comply, whenever applicable, with the hazard insurance, lead-based paint, civil rights or other limitations contained in this notice. My (our) signature(s) also represent written permission, as required by the Privacy Act, for the SBA to release any information in my (our) disaster loan application to the Governor of my (our) State or the Governor's designated representative in conjunction with the State's processing of my (our) application for assistance under the Individual and Family Grant Program that is available in certain major disaster areas declared by the President. Business Name _______________________________________ By Date ____________________________ Name and Title Proprietor, Partners, Principals and Guarantors Date ________ Signature _______________________ Date ________ Signature _______________________ Date ________ Signature _______________________ Date ________ Signature _______________________ SBA FORM 1261 (4-89) *U.S.GPO:1989-0-622-810