Reading Room Document

Authority of the Small Business Administration over the membership practices of ethnic fraternal organizations receiving disaster loans.

The document is a response to a letter from the Honorable Thomas S. Kleppe regarding the Small Business Administration's authority over the membership practices of fraternal organizations receiving disaster loans. The conclusion reached in the document is that disaster loans to such organizations are subject to Title VI of the Civil Rights Act of 1964, and the SBA regulation properly prohibits covered organizations from denying membership solely on the basis of national origin. The document presents questions regarding the applicability of Title VI and part 113 regulations to disaster loans received by fraternal organizations, as well as the need for amending the SBA Title VI regulation to explicitly include disaster loans to organizations not listed in the regulation.

June 28, 1974