Skip to content

Title 15 — Commerce and Trade

Part B · Chapter 14B — Small Business Investment Program

§ 694a. Definitions

Statutory text

As used in this part—

(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.

(9)

Notwithstanding any other provision of law or any rule, regulation, or order of the Administration, for purpose of sections 694a, 694b, and 694c of this title 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.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

  1. Pub. L. 85–699 title IV § 410 · 72 Stat. 689

    Enacted · 15 U.S.C. § 694a

    Pub. L. 85–699, title IV, § 410, as added Pub. L. 91–609, title IX, § 911(a)(4), Dec. 31, 1970, 84 Stat. 1812

    Source evidence

    Code source credit
    Pub. L. 85–699, title IV, § 410, as added Pub. L. 91–609, title IX, § 911(a)(4), Dec. 31, 1970, 84 Stat. 1812

  2. Pub. L. 95–507 title I § 110 · 92 Stat. 1757

    Added · 15 U.S.C. § 694a(4)(D)

    Pub. L. 95–507 added cl. (D)

    Source evidence

    Code amendment note
    Par. (4)(D). Pub. L. 95–507 added cl. (D).

    Enacted provision · exact public law section
    Sec. 110. Section 410(4) of the Small Business Investment Act of 1958 is amended by— (1) deleting the word “or” after the phrase “conditions of the contract,”; and (2) deleting the period after the phrase “fails to make prompt payment” and inserting in lieu thereof “, or (D) is an agent, independent agent, underwriter, or any other company or individual empowered to act on behalf of such person.”.

  3. American Recovery and Reinvestment Act of 2009

    Pub. L. 111–5 § 508(c) · 123 Stat. 115

    Added · 15 U.S.C. § 694a(9)

    Pub. L. 111–5, § 508(c), (f), temporarily added par. (9) which read as follows: “Notwithstanding any other provision of law or any rule, regulation, or order of the Administration, for purposes of sections 694a, 694b, and 694c of this title 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.” See Termination Date of 2009 Amendment note below

    Source evidence

    Code amendment note
    Par. (9). Pub. L. 111–5, § 508(c), (f), temporarily added par. (9) which read as follows: “Notwithstanding any other provision of law or any rule, regulation, or order of the Administration, for purposes of sections 694a, 694b, and 694c of this title 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.” See Termination Date of 2009 Amendment note below.

    Enacted provision · exact public law section
    (c) Size Standards.— Section 410 of the Small Business Investment Act of 1958 (15 U.S.C. 694a) is amended by adding at the end the following: “(9) Notwithstanding any other provision of law or any rule, regulation, or order of the Administration, for purposes of sections 410, 411, and 412 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 Indust ry Classification System.” .

  4. National Defense Authorization Act for Fiscal Year 2013

    Pub. L. 112–239 div. A title XVI § 1695(c) · 126 Stat. 1632

    Added · 15 U.S.C. § 694a(9)

    Pub. L. 112–239 added par. (9)

    Source evidence

    Code amendment note
    Par. (9). Pub. L. 112–239 added par. (9).

    Enacted provision · exact public law section
    (c) Size Standards.— Section 410 of the Small Business Investment Act of 1958 (15 U.S.C. 694a) is amended by inserting after paragraph (8) the following: “(9) Notwithstanding any other provision of law or any rule, regulation, or order of the Administration, for purpose of sections 410, 411, and 412 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.” .

3 of 4 references resolved to an enrolled provision · 1 partial

Editorial Notes

Amendments1978–2013 · 3 rounds

2013

Par. (9). Pub. L. 112–239 added par. (9).

2009

Par. (9). Pub. L. 111–5, § 508(c), (f), temporarily added par. (9) which read as follows: “Notwithstanding any other provision of law or any rule, regulation, or order of the Administration, for purposes of sections 694a, 694b, and 694c of this title 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.” See Termination Date of 2009 Amendment note below.

1978

Par. (4)(D). Pub. L. 95–507 added cl. (D).

Statutory Notes and Related Subsidiaries

Termination Date of 2009 Amendment

Pub. L. 111–5, div. A, title V, § 508(f), , 123 Stat. 159, provided that: “The amendments made by this section [amending this section and section 694b of this title] shall remain in effect until .”

Technical Assistance in Connection with Construction Contracts; Authorization of Appropriations

Section 911(b) of Pub. L. 91–609 authorized the Secretary of Housing and Urban Development to take such steps and carry out such activities as he determined to be necessary or desirable to provide, either directly or by contract or other arrangement, technical assistance to any contractor or subcontractor for whom a bid, payment, or performance bond is guaranteed under part B of title IV of the Small Business Investment Act of 1958 [this part] in connection with any construction contract, in order to assist such contractor or subcontractor in obtaining or carrying out such contract, and authorized to be appropriated for each of the first three fiscal years ending after the date of the enactment of this Act [] such sums, not to exceed $1,500,000, as were necessary to enable the Secretary to carry out his functions under paragraph (1).

Credits

1970–2013 · 4 acts
  1. 1970Pub. L. 85–699, title IV, § 410, as added Pub. L. 91–609, title IX, § 911(a)(4), , 84 Stat. 1812
  2. 1978amended Pub. L. 95–507, title I, § 110, , 92 Stat. 1758
  3. 2009Pub. L. 111–5, div. A, title V, § 508(c), , 123 Stat. 158
  4. 2013Pub. L. 112–239, div. A, title XVI, § 1695(c), , 126 Stat. 2090.
Show as published

(Pub. L. 85–699, title IV, § 410, as added Pub. L. 91–609, title IX, § 911(a)(4), , 84 Stat. 1812; amended Pub. L. 95–507, title I, § 110, , 92 Stat. 1758; Pub. L. 111–5, div. A, title V, § 508(c), , 123 Stat. 158; Pub. L. 112–239, div. A, title XVI, § 1695(c), , 126 Stat. 2090.)

Parsed from the official OLRC USLM XML in data/usc_all/usc15.xml · release point 119-108 · OLRC build 2026-09-09

USLM identifier /us/usc/t15/s694a