[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR105]
[Page 24-28]
TITLE 13--BUSINESS CREDIT AND ASSISTANCE
CHAPTER I--SMALL BUSINESS ADMINISTRATION
PART 105_STANDARDS OF CONDUCT AND EMPLOYEE RESTRICTIONS AND
RESPONSIBILITIES--Table of Contents
Standards of Conduct
Sec.
105.101 Cross-reference to employee ethical conduct standards and
financial disclosure regulations.
Restrictions and Responsibilities Related to SBA Employees and Former
Employees
105.201 Definitions.
105.202 Employment of former employee by person previously the recipient
of SBA Assistance.
105.203 SBA Assistance to person employing former SBA employee.
105.204 Assistance to SBA employees or members of their household.
105.205 Duty to report irregularities.
105.206 Applicable rules and directions.
105.207 Politically motivated activities with respect to the Minority
Small Business Program.
105.208 Penalties.
[[Page 25]]
Restrictions on SBA Assistance to Other Individuals
105.301 Assistance to officers or employees of other Government
organizations.
105.302 Assistance to employees or members of quasi-Government
organizations.
Administrative Provisions
105.401 Standards of Conduct Committee.
105.402 Standards of Conduct Counselors.
105.403 Designated Agency Ethics Officials.
Authority: 5 U.S.C. 7301; 15 U.S.C. 634, 637(a)(18) and (a)(19),
642, and 645(a).
Source: 61 FR 2399, Jan. 26, 1996, unless otherwise noted.
Standards of Conduct
Sec. 105.101 Cross-reference to employee ethical conduct standards and
financial disclosure regulations.
In addition to this part, Small Business Administration (SBA)
employees should refer to the Standards of Ethical Conduct for Employees
of the Executive Branch at 5 CFR part 2635 and the regulations at 5 CFR
part 2634 entitled, Executive Branch Financial Disclosure, Qualified
Trusts and Certificates of Divestiture.
[69 FR 63922, Nov. 3, 2004]
Restrictions and Responsibilities Related to SBA Employees and Former
Employees
Sec. 105.201 Definitions.
(a) Employee means an officer or employee of the SBA regardless of
grade, status or place of employment, including employees on leave with
pay or on leave without pay other than those on extended military leave.
Unless stated otherwise. Employee shall include those within the
category of Special Government Employee.
(b) Special Government Employee means an officer or employee of SBA,
who is retained, appointed or employed to perform temporary duties on a
full-time or intermittent basis, with or without compensation, for not
to exceed 130 days during any period of 365 consecutive days.
(c) Person means an individual, a corporation, a company, an
association, a firm, a partnership, a society, a joint stock company, or
any other organization or institution.
(d) Household member means spouse and minor children of an employee,
all blood relations of the employee and any spouse who resides in the
same place of abode with the employee.
(e) SBA Assistance means financial, contractual, grant, managerial
or other aid, including size determinations, section 8(a) participation,
licensing, certification, and other eligibility determinations made by
SBA. The term also includes an express decision to compromise or defer
possible litigation or other adverse action.
Sec. 105.202 Employment of former employee by person previously the
recipient of SBA Assistance.
(a) No former employee, who occupied a position involving discretion
over, or who exercised discretion with respect to, the granting or
administration of SBA Assistance may occupy a position as employee,
partner, agent, attorney or other representative of a concern which has
received this SBA Assistance for a period of two years following the
date of granting or administering such SBA Assistance if--
(1) The date of granting or administering such SBA Assistance was
within the period of the employee's term of employment; or
(2) The date of granting or administering such SBA Assistance was
within one year following the termination of such employment.
(b) Failure of a recipient of SBA Assistance to comply with these
provisions may result, in the discretion of SBA, in the requirement for
immediate repayment of SBA financial Assistance, the immediate
termination of other SBA Assistance involved or other appropriate
action.
Sec. 105.203 SBA Assistance to person employing former SBA employee.
(a) SBA will not provide SBA Assistance to any person who has, as an
employee, owner, partner, attorney, agent, owner of stock, officer,
director, creditor or debtor, any individual who, within one year prior
to the request for such SBA Assistance was an SBA employee, without the
prior approval of
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the SBA Standards of Conduct Counselor. The Standards of Conduct
Counselor will refer matters of a controversial nature to the Standards
of Conduct Committee for final decision; otherwise, his or her decision
is final.
(b) In reviewing requests for approval, the Standards of Conduct
Counselor will consider:
(1) The relationship of the former employee with the applicant
concern;
(2) The nature of the SBA Assistance requested;
(3) The position held by the former employee with SBA and its
relationship to the SBA Assistance requested; and
(4) Whether an apparent conflict of interest might exist if the SBA
Assistance were granted.
Sec. 105.204 Assistance to SBA employees or members of their
household.
Without the prior written approval of the Standards of Conduct
Committee, no SBA Assistance, other than Disaster loans under
subparagraphs (1) and (2) of section 7(b) of the Small Business Act,
shall be furnished to a person when the sole proprietor, partner,
officer, director or significant stockholder of the person is an SBA
employee or a household member.
Sec. 105.205 Duty to report irregularities.
Every employee shall immediately report to the SBA Inspector General
any acts of malfeasance or misfeasance or other irregularities, either
actual or suspected, arising in connection with the performance by SBA
of any of its official functions.
Sec. 105.206 Applicable rules and directions.
Every employee shall follow all agency rules, regulations, operating
procedures, instructions and other proper directions in the performance
of his official functions.
Sec. 105.207 Politically motivated activities with respect to the
Minority Small Business Program.
(a) Any employee who has authority to take, direct others to take,
recommend, or approve any action with respect to any program or activity
conducted pursuant to section 8(a) or section 7(j) of the Small Business
Act, shall not, with respect to any such action, exercise or threaten to
exercise such authority on the basis of the political activity or
affiliation of any party. Employees shall expeditiously report to the
SBA Inspector General any such action for which such employee's
participation has been solicited or directed.
(b) Any employee who willfully and knowingly violates this section
shall be subject to disciplinary action, which may consist of separation
from service, reduction in grade, suspension, or reprimand.
(c) This section shall not apply to any action taken as a penalty or
other enforcement of a violation of any law, rule, or regulation
prohibiting or restricting political activity.
(d) The prohibitions in and remedial measures provided for under
this section with regard to such prohibitions, shall be in addition to,
and not in lieu of, any other prohibitions, measures or liabilities that
may arise under any other provision of law.
Sec. 105.208 Penalties.
Any employee guilty of violating any of the provisions in this part
may be disciplined, including removal or suspension from SBA employment.
Restrictions on SBA Assistance to Other Individuals
Sec. 105.301 Assistance to officers or employees of other Government
organizations.
(a) SBA must receive a written statement of no objection by the
pertinent Department or military service before it gives any SBA
Assistance, other than Disaster loans under subparagraphs (1) and (2) of
section 7(b) of the Small Business Act, to a person when its sole
proprietor, partner, officer, director or stockholder with a 10 percent
or more interest, or a household member, is an employee of another
Government Department or Agency having a grade of at least GS-13 or its
equivalent.
(b) The Standards of Conduct Committee must approve an SBA contract
[[Page 27]]
with an entity if a sole proprietor, general partner, officer, director,
or stockholder with a 10 or more percent interest (or a household member
of such individuals) is an employee of a Government Department or
Agency. See also 48 CFR part 35, subpart 3.6.
(c) The Standards of Conduct Committee must approve SBA Assistance,
other than disaster loans under subparagraphs (1) and (2) of section
7(b) of the Small Business Act, to a person if its sole proprietor,
general partner, officer, director or stockholder with a 10 percent or
more interest (or a household member of such individual) is a member of
Congress or an appointed official or employee of the legislative or
judicial branch of the Government.
Sec. 105.302 Assistance to employees or members of quasi-Government
organizations.
(a) The Standards of Conduct Committee must approve SBA Assistance,
other than Disaster loans under subparagraphs (1) and (2) of section
7(b) of the Small Business Act, to a person if its sole proprietor,
general partner, officer, director or stockholder with a 10 percent or
more interest (or a household member) is a member or employee of a Small
Business Advisory Council or is a SCORE volunteer.
(b) In reviewing requests for approval, factors the Standards of
Conduct Committee may consider include whether the granting of the SBA
Assistance might result in or create the appearance of giving
preferential treatment, the loss of complete independence or
impartiality, or adversely affect the confidence of the public in the
integrity of the Government.
Administrative Provisions
Sec. 105.401 Standards of Conduct Committee.
(a) The Standards of Conduct Committee will:
(1) Advise and give direction to SBA management officials concerning
the administration of this part and any other rules, regulations or
directives dealing with conflicts of interest and ethical standards of
SBA employees; and
(2) Make decisions on specific requests when its approval is
required.
(b) The Standards of Conduct Committee will consist of:
(1) The General Counsel or, in his or her absence, the Deputy
General Counsel or, in his or her absence, the Acting General Counsel
who shall act as Chairman of the Committee;
(2) The Associate Deputy Administrator for Management and
Administration, or in his or her absence, the Assistant Administrator
for Administration; and
(3) The Director of Human Resources, or in his or her absence, the
Deputy Director of Human Resources.
Sec. 105.402 Standards of Conduct Counselors.
(a) The SBA Standards of Conduct Counselor is the Designated Agency
Ethics Official, as appointed by the Administrator. Assistant Standards
of Conduct Counselors may be designated by the Standards of Conduct
Counselor.
(b) The Standards of Conduct Counselors and Assistants:
(1) Provide general advice, assistance and guidance to employees
concerning this part and the regulations referred to in Sec. 105.101;
(2) Monitor the Standards of Conduct Program within their assigned
areas and provide required reports thereon; and
(3) Review Confidential Financial Disclosure reports as required
under 5 CFR part 2634, subpart I, and provide an annual report on
compliance with filing requirements to the SBA Standards of Conduct
Counselor as of February 1 of each year.
(c) Each employee will be periodically informed of the name, address
and telephone number of the Assistant Standards of Conduct Counselor to
contact for advice and assistance.
(d) Employee requests for advice or rulings should be directed to
the appropriate Standards of Conduct Counselor for appropriate action.
[61 FR 2399, Jan. 26, 1996, as amended at 62 FR 48477, Sept. 16, 1997;
69 FR 63922, Nov. 3, 2004]
[[Page 28]]
Sec. 105.403 Designated Agency Ethics Officials.
The Designated Agency Ethics Official and Alternates administer the
program for Financial Disclosure Statements under 5 CFR 2634.201,
receive and evaluate these statements, and provide advice and counsel
regarding matters relating to the Ethics in Government Act of 1978 and
its implementing regulations. The duties and responsibilities of the
Designated Agency Ethics Official and Alternates are set forth in more
detail in 5 CFR 2638.203, which is promulgated and amended by the Office
of Government Ethics.
[62 FR 2399, Jan. 26, 1996, as amended at 62 FR 48477, Sept. 16, 1997]