1. U.S. Code
  2. title 19
  3. chapter 12
  4. subchapter II
  5. part 2
  6. § 2341

Collapse to view only § 2341. Petitions and determinations

§ 2341. Petitions and determinations
(a) Filing of petition; receipt of petition; initiation of investigation
(b) Public hearing
(c) Certification
(1) The Secretary shall certify a firm (including any agricultural firm) as eligible to apply for adjustment assistance under this part if the Secretary determines—
(A) that a significant number or proportion of the workers in such firm have become totally or partially separated, or are threatened to become totally or partially separated,
(B) that—
(i) sales or production, or both, of such firm have decreased absolutely, or
(ii) sales or production, or both, of an article that accounted for not less than 25 percent of the total production or sales of the firm during the 12-month period preceding the most recent 12-month period for which data are available have decreased absolutely, and
(C) increases of imports of articles like or directly competitive with articles which are produced by such firm contributed importantly to such total or partial separation, or threat thereof, and to such decline in sales or production.
(2) For purposes of paragraph (1)(C)—
(A) The term “contributed importantly” means a cause which is important but not necessarily more important than any other cause.
(B)
(i) Any firm which engages in exploration or drilling for oil or natural gas shall be considered to be a firm producing oil or natural gas.
(ii) Any firm that engages in exploration or drilling for oil or natural gas, or otherwise produces oil or natural gas, shall be considered to be producing articles directly competitive with imports of oil and with imports of natural gas.
(d) Allowable period for determination
(Pub. L. 93–618, title II, § 251, Jan. 3, 1975, 88 Stat. 2030; Pub. L. 99–272, title XIII, § 13002(b), Apr. 7, 1986, 100 Stat. 300; Pub. L. 100–418, title I, § 1421(a)(2), (b)(2), Aug. 23, 1988, 102 Stat. 1243, 1244; Pub. L. 111–5, div. B, title I, §§ 1861(a), (c), 1862, 1863, 1867(a), Feb. 17, 2009, 123 Stat. 396, 397, 400; Pub. L. 112–40, title II, § 201(b), (c), Oct. 21, 2011, 125 Stat. 403; Pub. L. 114–27, title IV, § 402(b), (c), June 29, 2015, 129 Stat. 374.)

CITE AS: 19 USC 2341

§ 2342. Approval of adjustment proposals
(a) Application for adjustment assistance
(b) Technical assistance
(1) Adjustment assistance under this part consists of technical assistance. The Secretary shall approve a firm’s application for adjustment assistance only if the Secretary determines that the firm’s adjustment proposal—
(A) is reasonably calculated to materially contribute to the economic adjustment of the firm,
(B) gives adequate consideration to the interests of the workers of such firm, and
(C) demonstrates that the firm will make all reasonable efforts to use its own resources for economic development.
(2) The Secretary shall make a determination as soon as possible after the date on which an application is filed under this section, but in no event later than 60 days after such date.
(c) Termination of certification of eligibility
(Pub. L. 93–618, title II, § 252, Jan. 3, 1975, 88 Stat. 2030; Pub. L. 99–272, title XIII, § 13006(a)(1), (2), Apr. 7, 1986, 100 Stat. 304.)

CITE AS: 19 USC 2342

§ 2343. Technical assistance
(a) Discretion of Secretary; types of assistance
The Secretary may provide a firm, on terms and conditions as the Secretary determines to be appropriate, with such technical assistance as in his judgment will carry out the purposes of this part with respect to the firm. The technical assistance furnished under this part may consist of one or more of the following:
(1) Assistance to a firm in preparing its petition for certification of eligibility under section 2341 of this title.
(2) Assistance to a certified firm in developing a proposal for its economic adjustment.
(3) Assistance to a certified firm in the implementation of such a proposal.
(b) Utilization of existing agencies, private individuals, etc., in furnishing assistance; grants to intermediary organizations
(1) The Secretary shall furnish technical assistance under this part through existing agencies and through private individuals, firms, or institutions (including private consulting services), or by grants to intermediary organizations (including Trade Adjustment Assistance Centers).
(2) In the case of assistance furnished through private individuals, firms, or institutions (including private consulting services), the Secretary may share the cost thereof (but not more than 75 percent of such cost for assistance described in paragraph (2) or (3) of subsection (a) may be borne by the United States).
(3) The Secretary may make grants to intermediary organizations in order to defray up to 100 percent of administrative expenses incurred in providing such technical assistance to a firm.
(Pub. L. 93–618, title II, § 253, Jan. 3, 1975, 88 Stat. 2031; Pub. L. 97–35, title XXV, § 2521, Aug. 13, 1981, 95 Stat. 890; Pub. L. 99–272, title XIII, § 13006(a)(3), Apr. 7, 1986, 100 Stat. 304; Pub. L. 111–5, div. B, title I, § 1867(b), Feb. 17, 2009, 123 Stat. 400; Pub. L. 112–40, title II, § 201(b), (c), Oct. 21, 2011, 125 Stat. 403; Pub. L. 114–27, title IV, § 402(b), (c), June 29, 2015, 129 Stat. 374.)

CITE AS: 19 USC 2343

§ 2344. Financial assistance
(a) Direct loans and guarantees of loans
(b) Allowable purposes
Loans or guarantees of loans shall be made under this part only for the purpose of making funds available to the firm—
(1) for acquisition, construction, installation, modernization, development, conversion, or expansion of land, plant, buildings, equipment, facilities, or machinery, or
(2) to supply such working capital as may be necessary to enable the firm to implement its adjustment proposal.
(c) Limitation on direct loans
(d) Limitations on loans and guarantees
(Pub. L. 93–618, title II, § 254, Jan. 3, 1975, 88 Stat. 2031; Pub. L. 97–35, title XXV, § 2522, Aug. 13, 1981, 95 Stat. 891; Pub. L. 99–272, title XIII, § 13006(b), Apr. 7, 1986, 100 Stat. 304.)

CITE AS: 19 USC 2344

§ 2345. Conditions for financial assistance
(a) Unavailability of firm’s resources; reasonable assurance of repaymentNo financial assistance shall be provided under this part unless the Secretary determines—
(1) that the funds required are not available from the firm’s own resources; and
(2) that there is reasonable assurance of repayment of the loan.
(b) Interest rates
(1) The rate of interest on direct loans made under this part shall be—
(A) a rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods of maturity that are comparable to the average maturities of such loans, adjusted to the nearest one-eighth of 1 percent, plus
(B) an amount adequate in the judgment of the Secretary of Commerce to cover administrative costs and probable losses under the program.
(2) The Secretary may not guarantee any loan under this part if—
(A) the rate of interest on either the portion to be guaranteed, or the portion not to be guaranteed, is determined by the Secretary to be excessive when compared with other loans bearing Federal guarantees and subject to similar terms and conditions, and
(B) the interest on the loan is exempt from Federal income taxation under section 103 of title 26.
(c) Maturity of loansThe Secretary shall make no loan or guarantee of a loan under section 2344(b)(1) of this title having a maturity in excess of 25 years or the useful life of the fixed assets (whichever period is shorter), including renewals and extensions; and shall make no loan or guarantee of a loan under section 2344(b)(2) of this title having a maturity in excess of 10 years, including extensions and renewals. Such limitations on maturities shall not, however, apply—
(1) to securities or obligations received by the Secretary as claimant in bankruptcy or equitable reorganization, or as creditor in other proceedings attendant upon insolvency of the obligor, or
(2) to an extension or renewal for an additional period not exceeding 10 years, if the Secretary determines that such extension or renewal is reasonably necessary for the orderly liquidation or servicing of the loan.
(d) Priority for small firms; servicing of loans
(1) In making guarantees of loans, and in making direct loans, the Secretary shall give priority to firms which are small within the meaning of the Small Business Act [15 U.S.C. 631 et seq.] (and regulations promulgated thereunder).
(2) For any direct loan made, or any loan guaranteed, under the authority of this part, the Secretary may enter into arrangements for the servicing, including foreclosure, of such loans or evidences of indebtedness on terms which are reasonable and which protect the financial interests of the United States.
(e) Loan guarantee conditionsThe following conditions apply with respect to any loan guaranteed under this part:
(1) No guarantee may be made for an amount which exceeds 90 percent of the outstanding balance of the unpaid principal and interest on the loan.
(2) The loan may be evidenced by multiple obligations for the guaranteed and nonguaranteed portions of the loan.
(3) The guarantee agreement shall be conclusive evidence of the eligibility of any obligation guaranteed thereunder for such guarantee, and the validity of any guarantee agreement shall be incontestable, except for fraud or misrepresentation by the holder.
(f) Operating reserves
(g) Fees to lenders which make loan guarantees
(h) Maximum aggregate amount of outstanding guaranteed or direct loans
(1) The aggregate amount of loans made to any firm which are guaranteed under this part and which are outstanding at any time shall not exceed $3,000,000.
(2) The aggregate amount of direct loans made to any firm under this part which are outstanding at any time shall not exceed $1,000,000.
(i) Preference for firms having employee stock ownership plans
(1) When considering whether to grant a direct loan or to guarantee a loan to a corporation which is otherwise certified under section 2341 of this title, the Secretary shall give preference to a corporation which agrees with respect to such loan to fulfill the following requirements—
(A) 25 percent of the principal amount of the loan is paid by the lender to a qualified trust established under an employee stock ownership plan established and maintained by the recipient corporation, by a parent or subsidiary of such corporation, or by several corporations including the recipient corporation,
(B) the employee stock ownership plan meets the requirements of this subsection, and
(C) the agreement among the recipient corporation, the lender, and the qualified trust relating to the loan meets the requirements of this section.
(2) An employee stock ownership plan does not meet the requirements of this subsection unless the governing instrument of the plan provides that—
(A) the amount of the loan paid under paragraph (1)(A) to the qualified trust will be used to purchase qualified employer securities,
(B) the qualified trust will repay to the lender the amount of such loan, together with the interest thereon, out of amounts contributed to the trust by the recipient corporation, and
(C) from time to time, as the qualified trust repays such amount, the trust will allocate qualified employer securities among the individual accounts of participants and their beneficiaries in accordance with the provisions of paragraph (4).
(3) The agreement among the recipient corporation, the lender, and the qualified trust does not meet the requirements of this subsection unless—
(A) it is unconditionally enforceable by any party against the others, jointly and severally,
(B) it provides that the liability of the qualified trust to repay loan amounts paid to the qualified trust may not, at any time, exceed an amount equal to the amount of contributions required under paragraph (2)(B) which are actually received by such trust,
(C) it provides that amounts received by the recipient corporation from the qualified trust for qualified employer securities purchased for the purpose of this subsection will be used exclusively by the recipient corporation for those purposes for which it may use that portion of the loan paid directly to it by the lender,
(D) it provides that the recipient corporation may not reduce the amount of its equity capital during the one year period beginning on the date on which the qualified trust purchases qualified employer securities for purposes of this subsection, and
(E) it provides that the recipient corporation will make contributions to the qualified trust of not less than such amounts as are necessary for such trust to meet its obligation to make repayments of principal and interest on the amount of the loan received by the trust without regard to whether such contributions are deductible by the corporation under section 404 of title 26 and without regard to any other amounts the recipient corporation is obligated under law to contribute to or under the employee stock ownership plan.
(4) At the close of each plan year, an employee stock ownership plan shall allocate to the accounts of participating employees that portion of the qualified employer securities the cost of which bears substantially the same ratio to the cost of all the qualified employer securities purchased under paragraph (2)(A) of this subsection as the amount of the loan principal and interest repaid by the qualified trust during that year bears to the total amount of the loan principal and interest payable by such trust during the term of such loan. Qualified employer securities allocated to the individual account of a participant during one plan year must bear substantially the same proportion to the amount of all such securities allocated to all participants in the plan as the amount of compensation paid to such participant bears to the total amount of compensation paid to all such participants during that year.
(5) For purposes of this subsection, the term—
(A) “employee stock ownership plan” means a plan described in section 4975(e)(7) of title 26,
(B) “qualified trust” means a trust established under an employee stock ownership plan and meeting the requirements of title I of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1001 et seq.] and section 401 of title 26,
(C) “qualified employer securities” means common stock issued by the recipient corporation or by a parent or subsidiary of such corporation with voting power and dividend rights no less favorable than the voting power and dividend rights on other common stock issued by the issuing corporation and with voting power being exercised by the participants in the employee stock ownership plan after it is allocated to their plan accounts, and
(D) “equity capital” means, with respect to the recipient corporation, the sum of its money and other property (in an amount equal to the adjusted basis of such property but disregarding adjustments made on account of depreciation or amortization made during the period described in paragraph (3)(D)), less the amount of its indebtedness.
(Pub. L. 93–618, title II, § 255, Jan. 3, 1975, 88 Stat. 2031; Pub. L. 97–35, title XXV, § 2523, Aug. 13, 1981, 95 Stat. 891; Pub. L. 98–120, § 4(a), Oct. 12, 1983, 97 Stat. 809; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095.)

CITE AS: 19 USC 2345

§ 2345a. Omitted

CITE AS: 19 USC 2345a

§ 2346. Delegation of functions to Small Business Administration; authorization of appropriations
(a) Delegation of functions as to eligibility certification
(b) Authorization of appropriations
(c) Transfer of unexpended appropriations
(Pub. L. 93–618, title II, § 256, Jan. 3, 1975, 88 Stat. 2032; Pub. L. 97–35, title XXV, § 2524, Aug. 13, 1981, 95 Stat. 892; Pub. L. 99–272, title XIII, § 13008(b), Apr. 7, 1986, 100 Stat. 305; Pub. L. 100–418, title I, § 1426(b)(2), Aug. 23, 1988, 102 Stat. 1251; Pub. L. 103–66, title XIII, § 13803(a)(2), Aug. 10, 1993, 107 Stat. 668; Pub. L. 105–277, div. J, title I, § 1012(c), Oct. 21, 1998, 112 Stat. 2681–901; Pub. L. 106–113, div. B, § 1000(a)(5) [title VII, § 702(c)], Nov. 29, 1999, 113 Stat. 1536, 1501A–319; Pub. L. 107–210, div. A, title I, §§ 111(b), 131, Aug. 6, 2002, 116 Stat. 936, 946; Pub. L. 108–429, title II, § 2004(a)(3), Dec. 3, 2004, 118 Stat. 2589; Pub. L. 110–89, § 1(b), Sept. 28, 2007, 121 Stat. 982.)

CITE AS: 19 USC 2346

§ 2347. Administration of financial assistance
(a) Powers of Secretary
In making and administering guarantees and loans under section 2344 of this title, the Secretary may—
(1) require security for any such guarantee or loan, and enforce, waive, or subordinate such security;
(2) assign or sell at public or private sale, or otherwise dispose of, upon such terms and conditions and for such consideration as he shall determine to be reasonable, any evidence of debt, contract, claim, personal property, or security assigned to or held by him in connection with such guarantees or loans, and collect, compromise, and obtain deficiency judgments with respect to all obligations assigned to or held by him in connection with such guarantees or loans until such time as such obligations may be referred to the Attorney General for suit or collection;
(3) renovate, improve, modernize, complete, insure, rent, sell, or otherwise deal with, upon such terms and conditions and for such consideration as he shall determine to be reasonable, any real or personal property conveyed to or otherwise acquired by him in connection with such guarantees or loans;
(4) acquire, hold, transfer, release, or convey any real or personal property or any interest therein whenever deemed necessary or appropriate, and execute all legal documents for such purposes; and
(5) exercise all such other powers and take all such other acts as may be necessary or incidental to the carrying out of functions pursuant to section 2344 of this title.
(b) Recordation of mortgages
(c) Availability of receipts for financing functions
(d) Privileged or confidential information
(e) Capital assets secured by first lien; exceptions
(Pub. L. 93–618, title II, § 257, Jan. 3, 1975, 88 Stat. 2033; Pub. L. 97–35, title XXV, § 2525, Aug. 13, 1981, 95 Stat. 892.)

CITE AS: 19 USC 2347

§ 2348. Protective provisions
(a) Recordkeeping
(b) Audit and examination
(c) Certifications
No adjustment assistance under this part shall be extended to any firm unless the owners, partners, or officers certify to the Secretary—
(1) the names of any attorneys, agents, and other persons engaged by or on behalf of the firm for the purpose of expediting applications for such adjustment assistance; and
(2) the fees paid or to be paid to any such person.
(d) Conflicts of interest
(Pub. L. 93–618, title II, § 258, Jan. 3, 1975, 88 Stat. 2033; temporarily renumbered § 256 and amended Pub. L. 111–5, div. B, title I, § 1864(a)(2), (c)(1), Feb. 17, 2009, 123 Stat. 397, 398; Pub. L. 112–40, title II, § 201(b), (c), Oct. 21, 2011, 125 Stat. 403; Pub. L. 114–27, title IV, § 402(b), (c), June 29, 2015, 129 Stat. 374.)

CITE AS: 19 USC 2348

§ 2349. Penalties

Whoever makes a false statement of a material fact knowing it to be false, or knowingly fails to disclose a material fact, or whoever willfully overvalues any security, for the purpose of influencing in any way a determination under this part, or for the purpose of obtaining money, property, or anything of value under this part, shall be fined not more than $5,000 or imprisoned for not more than 2 years, or both.

(Pub. L. 93–618, title II, § 259, Jan. 3, 1975, 88 Stat. 2034; temporarily renumbered § 257 and amended Pub. L. 111–5, div. B, title I, §§ 1864(a)(2), 1865, Feb. 17, 2009, 123 Stat. 397, 399; Pub. L. 112–40, title II, § 201(b), (c), Oct. 21, 2011, 125 Stat. 403; Pub. L. 114–27, title IV, § 402(b), (c), June 29, 2015, 129 Stat. 374.)

CITE AS: 19 USC 2349

§ 2350. Civil actions

In providing technical and financial assistance under this part the Secretary may sue and be sued in any court of record of a State having general jurisdiction or in any United States district court, and jurisdiction is conferred upon such district court to determine such controversies without regard to the amount in controversy; but no attachment, injunction, garnishment, or other similar process, mesne or final, shall be issued against him or his property. Nothing in this section shall be construed to except the activities pursuant to sections 2343 and 2344 of this title from the application of sections 516, 547, and 2679 of title 28.

(Pub. L. 93–618, title II, § 260, Jan. 3, 1975, 88 Stat. 2034; temporarily renumbered § 258 and amended Pub. L. 111–5, div. B, title I, § 1864(a)(2), (c)(2), Feb. 17, 2009, 123 Stat. 397, 398; Pub. L. 112–40, title II, § 201(b), (c), Oct. 21, 2011, 125 Stat. 403; Pub. L. 114–27, title IV, § 402(b), (c), June 29, 2015, 129 Stat. 374.)

CITE AS: 19 USC 2350

§ 2351. Definitions

For purposes of this part, the term “firm” includes an individual proprietorship, partnership, joint venture, association, corporation (including a development corporation), business trust, cooperative, trustee in bankruptcy, and receiver under decree of any court. A firm, together with any predecessor or successor firm, or any affiliated firm controlled or substantially beneficially owned by substantially the same persons, may be considered a single firm where necessary to prevent unjustifiable benefits.

(Pub. L. 93–618, title II, § 261, Jan. 3, 1975, 88 Stat. 2034; temporarily renumbered § 259 and amended Pub. L. 111–5, div. B, title I, §§ 1861(b), 1864(a)(2), Feb. 17, 2009, 123 Stat. 396, 397; Pub. L. 112–40, title II, § 201(b), (c), Oct. 21, 2011, 125 Stat. 403; Pub. L. 114–27, title IV, § 402(b), (c), June 29, 2015, 129 Stat. 374.)

CITE AS: 19 USC 2351

§ 2352. Regulations

The Secretary shall prescribe such regulations as may be necessary to carry out the provisions of this part.

(Pub. L. 93–618, title II, § 262, Jan. 3, 1975, 88 Stat. 2034; temporarily renumbered § 260, Pub. L. 111–5, div. B, title I, § 1864(a)(2), Feb. 17, 2009, 123 Stat. 397, and Pub. L. 112–40, title II, § 201(b), (c), Oct. 21, 2011, 125 Stat. 403, and Pub. L. 114–27, title IV, § 402(b), (c),

CITE AS: 19 USC 2352

§ 2353. Repealed. Pub. L. 97–35, title XXV, § 2526, Aug. 13, 1981, 95 Stat. 893

CITE AS: 19 USC 2353

§ 2354. Study by Secretary of Commerce when International Trade Commission begins investigation; action where there is affirmative finding
(a) Subject matter of study
Whenever the Commission begins an investigation under section 2252 of this title with respect to an industry, the Commission shall immediately notify the Secretary of such investigation, and the Secretary shall immediately begin a study of—
(1) the number of firms in the domestic industry producing the like or directly competitive article which have been or are likely to be certified as eligible for adjustment assistance, and
(2) the extent to which the orderly adjustment of such firms to the import competition may be facilitated through the use of existing programs.
(b) Report; publication
(c) Information to firms
(Pub. L. 93–618, title II, § 264, Jan. 3, 1975, 88 Stat. 2035; Pub. L. 100–418, title I, § 1401(b)(1)(B), Aug. 23, 1988, 102 Stat. 1239; temporarily renumbered § 261, Pub. L. 111–5, div. B, title I, § 1864(a)(2), Feb. 17, 2009, 123 Stat. 397, and Pub. L. 112–40, title II, § 201(b), (c), Oct. 21, 2011, 125 Stat. 403, and Pub. L. 114–27, title IV, § 402(b), (c), June 29, 2015, 129 Stat. 374.)

CITE AS: 19 USC 2354

§ 2355. Assistance to industries
(a) Technical assistance
(b) Expenditures
(Pub. L. 93–618, title II, § 265, as added Pub. L. 97–35, title XXV, § 2527, Aug. 13, 1981, 95 Stat. 893; amended Pub. L. 98–369, div. B, title VI, § 2673, July 18, 1984, 98 Stat. 1172; temporarily renumbered § 262, Pub. L. 111–5, div. B, title I, § 1864(a)(2), Feb. 17, 2009, 123 Stat. 397, and Pub. L. 112–40, title II, § 201(b), (c), Oct. 21, 2011, 125 Stat. 403, and Pub. L. 114–27, title IV, § 402(b), (c), June 29, 2015, 129 Stat. 374.)

CITE AS: 19 USC 2355

§ 2356. Repealed. Pub. L. 112–40, title II, § 221(a)(3), Oct. 21, 2011, 125 Stat. 410

CITE AS: 19 USC 2356