PART 112—NONDISCRIMINATION IN FEDERALLY ASSISTED PROGRAMS OF SBA—EFFECTUATION OF TITLE VI OF THE CIVIL RIGHTS ACT OF 1964 Authority: Sec. 602, 78 Stat. 252 (42 U.S.C. 2000d-1). Source: 30 FR 298, Jan. 9, 1965, unless otherwise noted. § 112.1 Purpose. The purpose of this part is to effectuate the provisions of Title VI of the Civil Rights Act of 1964 (hereinafter referred to as the Act § 112.2 Application of this part. (a) This part applies to all recipients of Federal financial assistance administered by the Small Business Administration. (See appendix A) (b) The term Federal financial assistance (c) This part does not apply to financial assistance extended by way of insurance or guarantee. (d) The terms applicant recipient recipient subrecipients (e) The terms program or activity program (1)(i) A department, agency, special purpose district, or other instrumentality of a State or of a local government; or (ii) The entity of such State or local government that distributes such assistance and each such department or agency (and each other State or local government entity) to which the assistance is extended, in the case of assistance to a State or local government; (2)(i) A college, university, or other postsecondary institution, or a public system of higher education; or (ii) A local educational agency (as defined in 20 U.S.C. 7801), system of vocational education, or other school system; (3)(i) An entire corporation, partnership, or other private organization, or an entire sole proprietorship— (A) If assistance is extended to such corporation, partnership, private organization, or sole proprietorship as a whole; or (B) Which is principally engaged in the business of providing education, health care, housing, social services, or parks and recreation; or (ii) The entire plant or other comparable, geographically separate facility to which Federal financial assistance is extended, in the case of any other corporation, partnership, private organization, or sole proprietorship; or (4) Any other entity which is established by two or more of the entities described in paragraph (e)(1),(2), or (3) of this section. [30 FR 298, Jan. 9, 1965, as amended at 38 FR 17934, July 5, 1973; 50 FR 1441 Jan. 11, 1985; 68 FR 51348, 51349, Aug. 26, 2003] § 112.3 Discrimination prohibited. (a) General. (b) Specific discriminatory actions prohibited. (i) Deny an individual any services, financial aid or other benefit provided by the business or other activity; (ii) Provide any service, financial aid or other benefit to an individual which is different or is provided in a different manner, from that provided to others by the business or other activity; (iii) Subject an individual to segregation or separate treatment in any manner related to his receipt of any service, financial aid or other benefit from the business or other activity; (iv) Restrict an individual in any way in the enjoyment of any advantage or privilege enjoyed by others receiving any service, financial aid or other benefit from the business or other activity; (v) Treat an individual differently from others in determining whether he satisfies any admission, enrollment, quota, eligibility, membership or other requirement or condition which individuals must meet in order to be provided any service, financial aid or other benefit provided by the business or other activity. (2) The enumeration of specific forms of prohibited discrimination in this paragraph does not limit the generality of the prohibition in paragraph (a) of this section. (3) This regulation does not prohibit the consideration of race, color, or national origin if the purpose and effect are to remove or overcome the consequences of practices or impediments which have restricted the availability of, or participation in, a program or activity receiving Federal financial assistance, on the grounds of race, color, or national origin. Where previous discriminatory practice or usage tends, on the grounds of race, color, or national origin, to exclude individuals from participation in, to deny them the benefits of, or to subject them to discrimination under any program or activity to which this regulation applies, the applicant or recipient has an obligation to take reasonable action to remove or overcome the consequences of the prior discriminatory practice or usage, and to accomplish the purposes of the Act. [30 FR 298, Jan. 9, 1965, as amended at 38 FR 17934, July 5, 1973; 68 FR 51349, Aug. 26, 2003] § 112.4 Discrimination in employment. Small business concerns and development companies which apply for or receive any financial assistance of the kind described in § 112.2(a) (1) and (2), including concerns which are identifiable beneficiaries of loans made under § 112.2(a)(2), may not discriminate on the grounds of race, color, or national origin in their employment practices. Such assistance is deemed to have as a primary objective the providing of employment. Where a primary objective of the Federal financial assistance is not to provide employment, but discrimination on the grounds of race, color, or national origin in the employment practices of the recipient or other persons subject to the regulation tends, on the grounds of race, color, or national origin, to exclude individuals from participation in, to deny them the benefits of, or to subject them to discrimination under any program to which this regulation applies, the provisions of § 112.7(a) shall apply to the employment practices of the recipient or other persons subject to the regulation, to the extent necessary to assure equality of opportunity and nondiscriminatory treatment. [38 FR 17934, July 5, 1973] § 112.5 Discrimination in providing financial assistance. Development companies and small business investment companies which apply for or receive any of the financial assistance described in § 112.2(a) may not discriminate, on the ground of race, color or national origin, in providing financial assistance to small business concerns. § 112.6 Discrimination in accommodations or services. Small business concerns which apply for or receive any financial assistance of the kind described in § 112.2(a)(1), concerns which are identifiable beneficiaries of loans made under § 112.2(a)(2), and physicians, hospitals, schools, libraries, and other individuals or organizations which apply for or receive financial assistance of the kind described in § 112.2(a)(5), may not discriminate in the treatment accommodations or services they provide to their patients, students, visitors, guests, members, passengers, or patrons in the conduct of such businesses or other enterprises, whether or not operated for profit. [31 FR 2374, Feb. 4, 1966] § 112.7 Illustrative applications. (a) Employment. (b) Financial assistance. (c) Accommodations or services. (d) Affirmative action. (2) Even though an applicant or recipient has never used discriminatory policies, the opportunities in the business it operates may not in fact be equally available to some racial or nationality groups. In such circumstances a recipient may properly give special consideration to race, color, or national origin to make opportunity more widely available to such groups. [30 FR 298, Jan. 9, 1965, as amended at 38 FR 17934, July 5, 1973] § 112.8 Assurances required. An application for any of the financial assistance described in § 112.2(a) shall, as a condition to its approval and the extension of such assistance, contain or be accompanied by an assurance that the recipient will comply with this part. Such an assurance shall contain provisions authorizing the acceleration of the maturity of the recipient's financial obligation to the SBA in the event of a failure to comply, and provisions which give the United States a right to seek judicial enforcement of the terms of the assurance. SBA shall specify the form of the foregoing assurance, and the extent to which like assurances will be required of contractors and subcontractors, transferees, successors in interest, and other participants. [30 FR 298, Jan. 9, 1965, as amended at 68 FR 51349, Aug. 26, 2003] § 112.9 Compliance information. (a) Cooperation and assistance. (b) Compliance reports. (c) Access to sources of information. (d) Information to the public. [30 FR 298, Jan. 9, 1965, as amended at 38 FR 17934, July 5, 1973] § 112.10 Conduct of investigations. (a) Periodic compliance reviews. (b) Complaints. (c) Investigations. (d) Resolution of matters. (2) If an investigation does not warrant action pursuant to paragraph (d)(1) of this section, SBA will so inform the applicant or recipient and the complainant, if any, in writing. (e) Intimidatory or retaliatory acts prohibited. [30 FR 298, Jan. 9, 1965, as amended at 38 FR 17934, July 5, 1973] § 112.11 Procedure for effecting compliance. (a) General. (2) Such other means may include but are not limited to (i) legal action by SBA to enforce its right, embodied in the assurances described in § 112.8, to accelerate the maturity of the recipient's obligation; (ii) a reference to the Department of Justice with a recommendation that appropriate proceedings be brought to enforce any rights of the United States under any law of the United States, including other titles of the Act; and (iii) any applicable proceedings under State or local law. (b) Noncompliance with § 112.8. (c) Conditions precedent. (d) Other means authorized by law. [30 FR 298, Jan. 9, 1965, as amended at 38 FR 17934, July 5, 1973; 49 FR 33629, Aug. 24, 1984; 61 FR 2691, Jan. 29, 1996] § 112.12 Effect on other regulations; forms and instructions. (a) Effect on other regulations. (1) Executive Order 11246 and regulations issued thereunder, or (2) any other orders, regulations or instructions, insofar as such order, regulations, or instructions prohibit discrimination on the grounds of race, color, or national origin in any program or situation to which this part is inapplicable or prohibit discrimination on any other ground. (b) Forms and instructions. (c) Supervision and coordination. [30 FR 298, Jan. 9, 1965, as amended at 38 FR 17935, July 5, 1973. Redesignated at 49 FR 33629, Aug. 24, 1984] Appendix A to Part 112 Name of Federal financial assistance Authority Federal Financial Assistance Involving Grants of Funds Regular business loans Small Business Act, sec. 7(a) and 7(a)(11). Handicapped assistance loans Small Business Act, sec. 7(a)(10) Small business energy loans Small Business Act, sec. 7(a)(12). Small general contractors Small Business Act, sec. 7(a)(9). Vietnam-era and Disabled Veterans Loan Program Pub. L. 97-72. Debtor State development company loans (501) and their small business concerns Small Business Investment Act, title V, and Small Business Act, sec. 7(a)(13). Debtor small business investment companies and their small business concerns Small Business Investment Act, title III. Disaster Loans Physical Small Business Act, sec. 7(b)(1). Economic injury (EIDL) Small Business Act, sec. 7(b)(2). Federal action—economic injury Small Business Act, sec. 7(b)(3). Currency fluctuation—economic injury Small Business Act, sec. 7(b)(4). Other Federal Financial Assistance Women's business enterprise Executive Order 12138. Small business innovation and research Small Business Act, sec. 9. Procurement automated source system Small Business Act, sec. 8 and Pub. L. 96-302. Business Development Program Small Business Act, sec. 8(a) and Pub. L. 95-507, as amended by Pub. L. 96-481. Small Business Institute Program Small Business Act, sec. 8(b)(1) and Pub. L. 85-536. Certificate of competency Small Business Act, sec. 8(b)(7) and Pub. L 95-89. Subcontracting Assistance Program Small Business Act, sec. 8(d) and Pub. L. 95-507. Technology Assistance Program Small Business Act, sec. 9. Small business development centers Small Business Act, sec. 21 and Pub. L. 96-302. International Trade Program Small Business Act, sec. 22 and Pub. L. 96-481. Service Corps of Retired Executives and Active Corps of Executives Small Business Act, secs. 101 and 8(b)(1) and Pub. L. 95-510. Veterans affairs programs Pub. L. 93-237. Private sector initiatives Small Business Act, sec. 8(b)(1). Note: All types of Federal financial assistance listed above are also covered by part 113 of title 13 of the Code of Federal Regulations. [50 FR 1441, Jan. 11, 1985, as amended at 68 FR 51348, 51349, Aug. 26, 2003]