Hugo Black

“ Clearly Congress did not intend, by the very act of imposing duties upon the Administration, to take away a privilege necessary to the effective performance of those duties.
Respondent's argument from the policy of equality of distribution for similar creditors expressed in the Bankruptcy Act [19] is no more convincing. It is true that the allowance of the priority asserted here will place the bank, a private unsecured creditor, in a better position than other private unsecured creditors. ”

“ Under like circumstances we refused to deny priority for debts due to the Farm Credit Administration in United States Dept. of Agriculture, etc., v. Remund. [13] As was said there of the Farm Credit Administration, the Small Business Administration is 'an integral part of the governmental mechanism' [14] created to accomplish what Congress deemed to be of national importance. And it, like the Farm Credit Administration, is entitled to the priority of the United States in collecting loans made by it out of government funds. ”

“ The contention rests upon the fact that having a creditor with governmental priority tends to make it more difficult for a small businessman to borrow money from other persons, and, in this respect, handicaps rather than aids borrowers, thus conflicting with the Act's basic policy. ”