    [Appendix]
    [Detailed Budget Estimates by Agency]
    [Small Business Administration]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    [[Page 925]]

                          SMALL BUSINESS ADMINISTRATION

                                  Federal Funds

    General and special funds:

                              Salaries and Expenses

        For necessary expenses of the Small Business Administration as
    authorized by Public Law 103-403, including hire of passenger motor
    vehicles (31 U.S.C. 1343 and 1344), and not to exceed $3,500 for
    official reception and representation expenses, $235,401,000: Provided,
    That the Administration is authorized to charge fees to cover the cost
    of publications developed by the Small Business Administration, and
    certain loan servicing activities: Provided further, That
    notwithstanding 31 U.S.C. 3302, revenues received from all such
    activities shall be credited to this account, to be available for
    carrying out these purposes without further appropriations.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-0100-0-1-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Government Contracting and
            Minority Enterprise Development.          33          18          23
    00.02 Disaster assistance...............         141         109          28
    00.03 Economic development..............         116         108         110
    00.04 Management and administration.....          78          81          86
    00.05 Executive direction...............           2           1           1
    00.06 General Counsel...................           4           3           3
    00.07 Congressional and legislative
            affairs.........................           1           1           1
    00.08 Hearings and appeals..............           1
    00.09 Communications and Publications...           3           2           2
    00.11 Advocacy..........................           8           5           7
    00.12 Field Operations..................           1           1           4
    00.13 Equal Employment Opportunity and
            Civil Rights Compliance.........           2           1           1
    00.14 Regional and District Offices.....         142         113         113
    00.15 Chief Financial Office............           8           9           7
    00.16 Field Support.....................                      24          25
                                               ---------   ---------  ----------

    10.00   Total obligations...............         540         476         411
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................          33          33
    22.00 New budget authority (gross)......         544         443         411
    22.30 Unobligated balance expiring......          -4
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......         573         476         411
    23.95 New obligations...................        -540        -476        -411
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          33
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         258         219         235
    40.75   Procurement reduction pursuant
              to P.L. 103-[317].............         -16
                                               ---------   ---------  ----------

    43.00     Appropriation (total).........         242         219         235
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         303         224         175
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................         544         443         411
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         135         118         112
    73.10 New obligations...................         540         476         411
    73.20 Total outlays (gross).............        -558        -482        -426
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         118         112          97
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         185         168         180
    86.93 Outlays from current balances.....          70          90          71
    86.97 Outlays from new permanent
            authority.......................         303         224         175
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........         558         482         426
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Payments from business loan
                  program account...........         -97         -93         -94
    88.00       Payments for disaster loan
                  program account...........        -201        -128         -78
    88.40     Non-Federal sources...........          -5          -3          -3
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........        -303        -224        -175
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         241         219         236
    90.00 Outlays...........................         255         258         251
    ---------------------------------------------------------------------------

        This appropriation funds salaries, other administrative expenses of
    the Small Business Administration (SBA), and business education and
    training programs. The SBA provides assistance to small businesses and
    to victims of natural disasters through these primary program areas:

        Economic Development.--The Associate Deputy Administrator for this
    function exercises direction over the following SBA program offices:
    Financial Assistance; Surety Bond Guarantees; Investment; International
    Trade; Women's Business Ownership; Small Business Development Centers;
    Veterans' Affairs; Native-American Affairs; and Business Initiatives,
    which includes the Service Corps of Retired Executives. These offices
    are responsible for the administration of all SBA credit and business
    education training programs. In 1997, SBA plans to continue providing
    business management training and tools for the small business community
    through U.S. Export Assistance Centers, Empowerment Zone One-Stop-
    Capital Shops, and Business Information Centers. In addition, through
    new programs such as LowDoc, FASTRAK, and the Export Working Capital
    Programs (EWCP), SBA has begun targeting financial assistance to
    segments of the population that have historically been under represented
    in SBA's credit programs. The SBA's efforts to reduce unnecessary
    paperwork and make the agency more customer-friendly has attracted new
    banks interested in establishing partnerships with SBA.

        Government Contracting and Minority Enterprise Development.--The
    Associate Deputy Administrator for this function exercises direction
    over the following SBA program offices: Government Contracting; Minority
    Enterprise Development; Technology; and Size Standards. These offices
    are responsible for effectively advocating for small businesses in the
    area of government contracting. Government Contracting activities are
    aimed at ensuring that small businesses receive a fair share of
    government contracts. The Minority Enterprise Development programs
    provide assistance to minority small business concerns, primarily in the
    area of Federal procurement. Through this office, SBA assists in the
    establishment or expansion of firms that are owned by minority or other
    disadvantaged business persons and have the potential to develop into
    viable competitive businesses in a reasonable period of time. The
    Minority Enterprise Development office also evaluates the overall agency
    performance in promoting minority business development.

        Disaster Assistance.--The Associate Administrator for the Office of
    Disaster Assistance oversees the Disaster Loan Program which provides
    physical disaster loans to individuals and businesses of any size, and
    economic injury loans to small

    [[Page 926]]
    businesses unable to obtain credit elsewhere. In addition to
    Presidentially-declared disasters, the program provides loans when a
    declaration is made by the SBA Administrator. Program eligibility is
    based on financial criteria and interest rates are set according to
    statutory formulas. In recent years, the average interest rate on
    disaster loans has been about four percent. The budget proposes to
    reduce the cost of disaster loan subsidies by increasing the interest
    rate on disaster loans to the Treasury's cost of borrowing.

        Advocacy.--The Chief Counsel for Advocacy acts as a voice for small
    business within the government. Activities include the representation of
    small business interests, the analysis of the effects of federal law and
    regulation on small business, the development and utilization of a small
    business database to aid in this analysis, and liaison with small
    business and small business organizations and the public.

        Business Education and Training.--This appropriation also provides
    program funds for SBA activities involving business education and
    training. These programs exist to help entrepreneurs start businesses,
    stay in business, and grow their businesses. Through one of the widest
    outreach networks of the Federal government, SBA provides management,
    technical, and research assistance along with education, training, and
    information to perspective and existing small business owner/operators.

        Data substantiating the benefits produced by the agency's business
    education and training programs are becoming more readily available. A
    number of assessments have shown that counseling helps small businesses.
    Synopses of two such studies are presented below along with program
    accomplishments.

    Program Performance:

        Small Business Development Centers (SBDCs).--The SBDCs provide long
    term counseling to small businesses at 976 locations in 50 states. In FY
    1995, nearly 600,000 customers were helped. Roughly 40 percent of
    customers are women and 17 percent minorities. A 1992-1993 national
    study compared the performance improvements of long-term recipients of
    counseling at 47 SBDCs to the performance of all businesses in the
    participating states. The SBDC assistance resulted in approximately $5
    in tax revenues for every $1 spent on the program. Tax revenues exceeded
    the direct cost of the counseling provided to long-term customers by 15
    to 1. For FY 1997, as part of the Administration's Reinventing
    Government II initiative, the agency is proposing to incorporate a
    portion of the 7(j) Technical Assistance Program and the Women's
    Demonstration Project into this business education and training program.
    For FY 1997, the budget proposes a funding level of $72.3 million for
    the enhanced SBDC program.

        Service Corps of Retired Executives (SCORE).--Through one-on-one
    counseling and workshops SCORE reaches about 350,000 business owners
    annually using approximately 13,000 counselors in 700 locations.
    Counseling costs to the Government are less than $3 per hour. For 1997,
    the budget proposes a funding level of $3.3 million for this program.

        Outreach Initiatives.--The SBA is actively involved in fostering the
    development of entrepreneurial skills and economic development
    opportunities involving veterans, women and businesses engaged in
    international trade. The budget proposes a 1997 funding level of $1.1
    million to support veterans, women, and international trade outreach
    initiatives.

        One-Stop-Capital Shops (OSCS).--One-stop-capital shops are located
    in urban and rural areas which have been designated as Empowerment
    Zones. The program and policy objectives of this program are to increase
    access to capital in economically-distressed areas and to provide
    systematical comprehensive business development assistance (i.e.,
    technical, managerial, and financial assistance). Under this new
    program, SBA will be establishing up to fifteen (15) OSCSs during 1995-
    1996 in Empowerment Zones designated by HUD and USDA. In addition to
    these sites, the SBA will be participating in the creation of several
    other OSCSs in similarly distressed Enterprise Communities. For 1997,
    the budget proposes $2.7 million to support this initiative.

        Business Information Centers (BIC).--In addition to the self-help
    hardware, software and reference materials, BICs deliver on-site
    counseling provided by SCORE volunteers. Individuals who are in business
    or are interested in starting a business will find many resources
    specifically targeted at helping businesses grow or find new market
    niches. For 1997, the budget proposes $485 thousand for this program.

        Native American Affairs.--This program supports the economic
    development needs of reservation communities. In FY 1995, over 400 loans
    were made to Native Americans under the agency's 7(a) program, amounting
    to nearly $60 million. Native American firms also made up 7 percent of
    total contracted dollars of SBA's section 8(a) portfolio in 1995.

        Business Assistance Publications.--The SBA provides publications on
    a self-funding basis and distributes an estimated 300,000 items to the
    public each year.

        Other Services.--The SBA co-sponsors a variety of special activities
    with the for-profit, not-for-profit, and public sectors. Many co-
    sponsored events cost customers between $35 and $100, with comparable
    commercially-sponsored training costing $300 to $800. Among the most
    visible public/private co-sponsorships undertaken is SBA Online, SBA's
    electronic bulletin board for small businesses. The SBA Online system
    has been principally underwritten by Sprint, which has paid the cost of
    all toll-free connections to the system. Between October 1992 and
    January 1995, more than one million connections to SBA Online were
    logged, and more than 120,000 individuals used the system on a regular
    basis.

        Program Performance and Policy Goals.--SBA has the following program
    performance and policy goals: 1) provide small businesses with user-
    friendly access to information, technical and management counseling, and
    technical assistance and training; 2) design and deliver cost-effective
    programs that meet the needs of small businesses; 3) align business
    education programs more closely with financial assistance in a manner
    that maximizes benefits to customers who obtain SBA guaranteed loans;
    and 4) expand the use of SCORE volunteers to provide counseling and
    training on the entire range of SBA programs and services.

        Performance Indicators.--A true assessment of program effectiveness
    is a long-term process and there is much to learn about what types of
    programs contribute to cost-effective business assistance. In the short
    term, SBA is committed to survey customer satisfaction levels from
    customers who use its services. In the long run, the agency's
    performance goal is true economic development and the capacity to assess
    how SBA business development assistance has contributed to the economy.
    Performance measures that will be used in 1997 to assess progress in
    achieving the above goals follow.

    ------------------------------------------------------------------------
                      Outputs                       Intermediate Outcomes
    ------------------------------------------------------------------------
    Number of businesses counseled or trained   Increased customer
     by SCORE volunteers.                        satisfaction with services
    Quality public-private cooperative          Increased customer access to
     agreements.                                 services, increased focus
                                                 of specialized programs,
                                                 and increased leverage of
                                                 Federal spending
    Increased information available on-line...  Increased use of services,
                                                 lower delivery costs,
                                                 better and more varied
                                                 information supplied to
                                                 small business owners
    More resource centers, including a BIC in   Increased access by current
     each SBA district, SBDC women's business    and potential small
     subcenters, and new Tribal BICs.            business owners to SBA
                                                 programs and information

    [[Page 927]]

    Programs targeted toward increasing small   Increased successful
     businesses owned by veterans, women, and    participation of members of
     Native Americans.                           these groups in the small
                                                 business community
    ------------------------------------------------------------------------

        1997 Proposals.--For agency operating expenses, the budget proposes
    to continue SBA's efforts to increase administrative efficiencies and
    enhance the delivery of its programs. Although the agency's programs
    have grown substantially in recent years, SBA's administrative budget
    has been able to decline gradually as efficiencies have been realized.
    Total employment at the agency, excluding disaster-funded positions,
    which fluctuate with the incidence of natural disaster activity, has
    been reduced by more than 13 percent since the end of FY 1993.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-0100-0-1-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............         151         138         133
    11.3    Other than full-time permanent..           7           6           6
    11.5    Other personnel compensation....           9           2           8
                                               ---------   ---------  ----------

    11.9      Total personnel compensation..         167         146         147
    12.1  Civilian personnel benefits.......          47          37          36
    21.0  Travel and transportation of
            persons.........................           6           7           6
    23.1  Rental payments to GSA............          23          32          34
    23.3  Communications, utilities, and
            miscellaneous charges...........          18          13          15
    24.0  Printing and reproduction.........           2           2           2
    25.2  Other services....................          30          27          37
    26.0  Supplies and materials............           3           2           2
    31.0  Equipment.........................           3           2           2
    41.0  Grants, subsidies, and
            contributions...................         100          99         102
    92.0  Undistributed (disaster
            assistance).....................         141         109          28
                                               ---------   ---------  ----------

    99.9    Total obligations...............         540         476         411
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 73-0100-0-1-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Total compensable workyears:
    1001  Full-time equivalent employment...       5,562       4,178       4,122
    1005  Full-time equivalent of overtime
            and holiday hours...............         320         300         290
    ---------------------------------------------------------------------------
        Note.--The personnel summary includes regular (non-disaster) full-
    time equivalents (FTEs) of 3,267, 3,094, and 3,122 in 1995, 1996, and
    1997, respectively.

                           Office of Inspector General

        For necessary expenses of the Office of the Inspector General in
    carrying out the Inspector General Act of 1978, as amended (5 U.S.C.
    App. 1-11, as amended by Public Law 100-504), $9,985.000.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-0200-0-1-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Management and counsel............           2           2           2
    00.02 Audit.............................           2           3           3
    00.03 Investigations....................           4           4           4
    00.04 Disaster..........................           1           1           1
                                               ---------   ---------  ----------

    10.00   Total obligations...............           9          10          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................           3           2           1
    22.00 New budget authority (gross)......           9           9          10
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......          12          11          11
    23.95 New obligations...................          -9         -10         -10
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....           2           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................           9           9          10
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation           1           1           1
    73.10 New obligations...................           9          10          10
    73.20 Total outlays (gross).............          -9         -10         -10
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation           1           1           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           8           8           8
    86.93 Outlays from current balances.....           1           2           2
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........           9          10          10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           9           9          10
    90.00 Outlays...........................           9          10          10
    ---------------------------------------------------------------------------

        This appropriation provides funds for agency-wide audit,
    investigative, and inspection/evaluative functions to identify and
    recommend corrections of management or program deficiencies which may
    create conditions for fraud, waste, or abuse. The audit function
    provides internal audit, external audit, and inspection/evaluation
    oversight activities. Internal audits assess the general management and
    efficiency of SBA program operations; external audits review all program
    participants and their compliance with SBA regulations and procedural
    requirements; and inspection/evaluations address specific requirements
    of program management and effectiveness. The investigative function
    detects and investigates allegations of illegal and improper activities
    involving agency personnel, programs, and operations.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-0200-0-1-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           6           6           6
    12.1  Civilian personnel benefits.......           1           1           1
    92.0  Undistributed.....................           2           3           3
                                               ---------   ---------  ----------

    99.9    Total obligations...............           9          10          10
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 73-0200-0-1-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         106         106         109
    ---------------------------------------------------------------------------

    Public enterprise funds:

                      Surety Bond Guarantees Revolving Fund

        For additional capital for the ``Surety Bond Guarantees Revolving
    Fund'', authorized by the Small Business Investment Act, as amended,
    $3,730,000, to remain available without fiscal year limitation as
    authorized by 15 U.S.C. 631 note.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4156-0-3-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            42.0)...........................          18          17          18
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....           2           4           6
    22.00 New budget authority (gross)......          20          18          21
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......          22          22          27
    23.95 New obligations...................         -18         -17         -18
    24.90 Unobligated balance available, end
            of year: Fund balance...........           4           6           9
    ----------------------------------------------------------------------------

    [[Page 928]]

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................           5           3           4
          Permanent:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          15          16          18
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................          20          18          21
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.          39          38          35
    73.10 New obligations...................          18          17          18
    73.20 Total outlays (gross).............         -19         -20         -17
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.          38          35          36
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority           4           2
    86.93 Outlays from current balances.....                       2
    86.97 Outlays from new permanent
            authority.......................          15          16          17
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          19          20          17
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -15         -16         -18
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           5           2           3
    90.00 Outlays...........................           4           4          -1
    ---------------------------------------------------------------------------

        Under this program, the Small Business Administration guarantees a
    portion of the losses sustained by a surety company as a result of the
    issuance of a bid, payment, and/or performance bond to a small business
    concern.

        In 1997, the budget proposes a program level anticipated to
    accommodate expected demand from the preferred surety bond program
    authorized in P.L. 100-590. The SBA will continue to rely on both
    preferred and prior approval sureties to deliver this program, with SBA
    oversight.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   73-4156-0-3-376    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................          14             20            18             21
    0102  Expense...........................         -20            -18           -17            -18
                                            ------------ --------------  ------------  -------------
    0109  Net loss..........................          -6              2             1              3
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   73-4156-0-3-376    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................          40             40            39             43
    1206  Non-Federal assets: Receivables,
            net.............................           2              2             2              2
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          42             42            41             45
        LIABILITIES:
    2201  Non-Federal liabilities: Accounts
            payable.........................          40             38            35             36
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          40             38            35             36
        NET POSITION:
    3100  Appropriated capital..............         314            319           322            326
    3300  Cumulative results of operations..        -312           -315          -316           -317
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............           2              4             6              9
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          42             42            41             45
    -----------------------------------------------------------------------------------------------

    Credit accounts:

                          Business Loan Program Account

        For the cost of direct loans, $2,792,000, and for the cost of
    guaranteed loans. $318,580,000, as authorized by 15 U.S.C. 631 note, of
    which $2,317,000, to be available until expended, shall be for the
    Microloan Guarantee Program, and of which $21,733,000 for the Small
    Business Investment Company Debentures Program and the Small Business
    Investment Company Participating Securities Program, shall remain
    available until September 30, 1998: Provided, That such costs including
    the costs of modifying such loans, shall be as defined in section 502 of
    the Congressional Budget Act of 1974: Provided further, That during
    fiscal year 1997, commitments to guarantee loans under section 503 of
    the Small Business Investment Act of 1958, as amended, shall not exceed
    the amount of financings authorized under section 20(n)(2)(B) of the
    Small Business Act, as amended.
        In addition, for administrative expenses to carry out the direct and
    guaranteed loan programs, $94,090,000, which may be transferred to and
    merged with the appropriations for Salaries and Expenses.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-1154-0-1-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Balance, start of year:
    01.99 Balance, start of year............                                  16
        Receipts:
    02.01 Business loan program downward
            reestimate of subsidy...........                      16
                                               ---------   ---------  ----------

    04.00 Total: Balances and collections...                      16          16
    07.99 Total balance, end of year........                      16          16
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-1154-0-1-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............           7           9           3
    00.02 Guaranteed loan subsidy...........         264         164         329
    00.03 Section 503 prepayments...........          30
    00.04 Grants............................          27
    00.07 Reestimate of loan guarantee
            subsidy.........................                     245
    00.08 Interest on reestimates of loan
            guarantee subsidy...............                      28
    00.09 Administrative expenses...........          97          93          94
                                               ---------   ---------  ----------

    10.00   Total obligations...............         425         539         426
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....          26          37          24
    22.00 New budget authority (gross)......         436         527         415
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......         462         564         439
    23.95 New obligations...................        -425        -539        -426
    24.90 Unobligated balance available, end
            of year: Fund balance...........          37          24          14
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Current:

    40.00   Appropriation...................         405         253         415
    40.05   Appropriation (indefinite)......           1
                                               ---------   ---------  ----------

    43.00     Appropriation (total).........         406         253         415
          Permanent:

    60.05   Appropriation (indefinite)......                     274
    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          30
                                               ---------   ---------  ----------

    70.00   Total new budget authority
              (gross).......................         436         527         415
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         147         179         153
    73.10 New obligations...................         425         539         426
    73.20 Total outlays (gross).............        -394        -565        -321
    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         179         153         258
    ----------------------------------------------------------------------------

    [[Page 929]]

        Outlays (gross), detail:
    86.90 Outlays from new current authority         216         175         205
    86.93 Outlays from current balances.....         147         118         118
    86.97 Outlays from new permanent
            authority.......................          30         274
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........         394         565         321
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -30
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         406         527         415
    90.00 Outlays...........................         364         565         321
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-1154-0-1-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Handicapped loans.................           4
    1150  Specialized SBIC loans............           6
    1150  Micro loans.......................          13          60          34
                                               ---------   ---------  ----------

    1159    Total direct loan levels........          23          60          34
        Direct loan subsidy (in percent):
    1320  Handicapped loans.................       41.82        0.00        0.00
    1320  Specialized SBIC loans............       43.10       42.85        0.00
    1320  Micro loans.......................       19.61       15.69        8.20
                                               ---------   ---------  ----------

    1329    Weighted average subsidy rate...       29.55       15.69        0.00
        Direct loan subsidy budget authority:
    1330  Handicapped loans.................           2
    1330  Specialized SBIC loans............           2
    1330  Micro loans.......................           3           9           3
                                               ---------   ---------  ----------

    1339    Total subsidy budget authority..           7           9           3
        Direct loan subsidy outlays:
    1340  Handicapped loans.................           3           1
    1340  Specialized SBIC loans............           3
    1340  Micro loans.......................           2           8           4
                                               ---------   ---------  ----------

    1349    Total subsidy outlays...........           8           9           4
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  General business--7(a) (incl.
            DELTA)..........................       7,791      11,046      11,210
    2150  Section 502 development company
            loans...........................          43
    2150  Section 504 (including DELTA).....       1,528       2,825
    2150  SBIC debenture guarantees.........         104         106          82
    2150  SBIC participating security
            guarantees......................         220         268         149
    2150  Specialized SBIC guarantees.......          23           2
    2150  Micro loan guarantees.............                       8          27
                                               ---------   ---------  ----------

    2159    Total loan guarantee levels.....       9,709      14,255      11,468
        Guaranteed loan subsidy (in percent):
    2320  General Business--7(a)............        2.74        1.06        2.68
    2320  Section 502 development company
            loans...........................        1.50
    2320  Section 504 (including DELTA).....        0.57        0.00        6.85
    2320  SBIC debenture guarantees.........       14.65       15.46       10.01
    2320  SBIC participating security
            guarantees......................        8.90        9.00        9.07
    2320  Specialized SBIC guarantees.......       27.85       28.93
    2320  Micro loan guarantees.............       11.77       11.95        8.43
                                               ---------   ---------  ----------

    2329    Weighted average subsidy rate...        2.74        1.06        2.68
        Guaranteed loan subsidy budget authority:
    2330  General business--7(a)............         213         120         295
    2330  Section 502 development company
            loans...........................           1
    2330  Section 504 (including DELTA).....           9           1           2
    2330  SBIC debenture guarantees.........          15          16           8
    2330  SBIC participating securities
            guarantees......................          20          24          14
    2330  Specialized SBIC guarantees.......           6           1
    2330  Micro loan guarantees.............                       1           2
                                               ---------   ---------  ----------

    2339    Total subsidy budget authority..         264         163         321
        Guaranteed loan subsidy outlays:
    2340  General business--7(a) (incl.
            DELTA)..........................         169         143         148
    2340  Section 502 development company
            loans...........................           1
    2340  Section 504 (including DELTA).....           6           6           2
    2340  SBIC debenture guarantees.........          15          16           8
    2340  SBIC participating securities
            guarantees......................          33          24          13
    2340  Specialized SBIC guarantees.......           6           1
    2340  Micro loan guarantees.............                       1           2
                                               ---------   ---------  ----------

    2349    Total subsidy outlays...........         230         191         173
    ---------------------------------------------------------------------------

           SMALL BUSINESS ADMINISTRATION'S SHARE OF DIRECT LOAN LEVELS

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    Handicapped loans...................           4           0           0
    Section 504 loans...................           0           0       2,650
    Specialized SBIC loans..............           6           0           0
    Micro loans.........................          13          60          34
                                        ------------------------------------
          Total direct loans............          23          60       2,684
                                        ====================================

         SMALL BUSINESS ADMINISTRATION'S SHARE OF GUARANTEED LOAN LEVELS

                            [In millions of dollars]

                                         1995 actual  1996 est.   1997 est.
    General business loans..............       6,132       8,395       8,520
    Development company loans (Section
    502)................................          43           0           0
    Development company loans (Section
    504)................................       1,528       2,825           0
    SBIC debenture guarantees...........         104         106         225
    SBIC participating security
    guarantees..........................         220         268         400
    Specialized SBIC loans..............          23           2           0
    Micro loan guarantees...............           0           8          27
                                        ------------------------------------
          Total guaranteed loans........       8,050      11,604       9,172
                                        ====================================

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the direct
    loans obligated and loan guarantees committed in 1992 and beyond
    (including modifications of direct loans or loan guarantees that
    resulted from obligations or commitments in any year), as well as
    administrative expenses of this program. The subsidy amounts are
    estimated on a present value basis; the administrative expenses are
    estimated on a cash basis.

        General Business Assistance.--The Small Business Administration
    guarantees loans under its section 7(a) General Business Loan program to
    small businesses that are unable to obtain private financing. These
    loans must be of such value or so secured as to reasonably assure
    repayment. No loan may be made unless the financial assistance is not
    otherwise available on reasonable terms. Under the guarantee plan, the
    SBA agrees to purchase the guaranteed portion of the loan only upon
    default.

        Investment Company Assistance.--A primary function of small business
    investment companies is to provide a source of equity capital or long-
    term loans to new or expanding small businesses. The Small Business
    Investment Act, as amended, authorizes the SBA to guarantee the timely
    payment of all principal and interest, as scheduled, on debentures
    issued by such companies. In addition, since 1994, the SBA has
    guaranteed the performance of participating securities issued by these
    companies.

        Development Company Assistance.--Under the Small Business Investment
    Act, the SBA makes loans through State and local development companies
    to small businesses. Through these programs, the SBA promotes economic
    development and job creation and maintenance by stimulating the flow of
    long-term financing to small business concerns for projects that involve
    fixed assets. These projects are designed to create or retain a
    meaningful number of jobs in the communities affected, with a special
    emphasis on distressed areas. Approximately 154,000 jobs were created or
    maintained through the $1.5 billion in loans guaranteed under the
    Development Company programs in 1995.

    Program Performance:

        Program performance and policy goals.--SBA has the following program
    performance and policy goals: 1) effectively intervene in the economy to
    correct capital market imperfections; 2) encourage small business
    lending and surety bonding that results in higher employment and GDP
    growth; 3) promote capital access for traditionally under-served small
    business markets and geographic regions, e.g., women, minorities,

    [[Page 930]]
    small exporters, inner-cities and rural areas; and 4) maintain a high
    quality portfolio.

        Performance Indicators.--During the past two years SBA has focused
    on quantitative, measureable lending goals for underserved segments of
    the small business market in each district, e.g., minorities, women, and
    small exporters. The SBA began this process in 1994 when it established
    internal performance agreements that contained two-year lending goals.
    Using goal monitoring, the agency is able to track on a regular basis
    the status of each district office's progress in meeting these goals.
    Appropriate finance program effectiveness assessment involves the
    consideration of a number of indicators. First, effectiveness can be
    assessed by loan-making activity levels--the number and dollar amount of
    loans guaranteed by SBA. Second, effectiveness can be measured by the
    health of the loan portfolio--its currency and default figures, and the
    agency's ultimate record on loan recovery. Beyond these very tangible
    indicators of success are the more difficult-to-measure indicators.
    These include such things as the economic benefits that accrue to the
    small business, its employees, and the community in which it is located.

        The number and dollar volume of loans made under the section 7(a)
    loan program has increased dramatically in recent years. In 1991, SBA
    made or guaranteed approximately 9,000 loans totaling about $4 billion.
    By 1995, those figures had risen to approximately 56,000 loans totaling
    about $8 billion, and these figures could have been even higher if
    additional lending authority had been available. The section 504 program
    has also shown impressive growth. In 1991, the SBA provided about 1,400
    financings totaling nearly $400 million. By 1995, those figures had
    increased to about 4,500 financings for $1.5 billion. Performance
    measures to be used in 1997 to assess progress in achieving the above
    goals follow.

    ------------------------------------------------------------------------
                      Outputs                       Intermediate Outcomes
    ------------------------------------------------------------------------
    Loans guaranteed--number and dollar amount  Lower cost loan programs
    Private investment leveraged--dollar        Fair and reasonable fees to
     amount.                                     offset subsidy
    Better credit instruments developed--       High currency rates
     number.
    Focused lending for underserved markets--   Businesses created,
     number, dollar amount.                      maintained, or expanded
    Investments in underserved areas--number..  Increased sources of capital
    Businesses created, maintained; jobs        Increased capital access for
     created.                                    underserved areas
    Increased number of EWCP loans............  Increased small business
                                                 export sales
    Electronic data interchange and monitoring  High quality and efficient
                                                 lending practices
    ------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-1154-0-1-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    41.0  Direct obligations: Grants,
            subsidies, and contributions....         328         446         332
    99.0  Reimbursable obligations:
            Subtotal, reimbursable
            obligations.....................          97          93          94
                                               ---------   ---------  ----------

    99.9    Total obligations...............         425         539         426
    ---------------------------------------------------------------------------

                          Business Loan Program Account

                  (Legislative Proposal, not subject to PAYGO)

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-1154-2-1-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  504 direct........................                               2,650
                                               ---------   ---------  ----------

    1159    Total direct loan levels........                               2,650
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  SBIC Participating Securities.....                                 251
    2150  SBIC Debentures...................                                 143
                                               ---------   ---------  ----------

    2159    Total loan guarantee levels.....                                 394
        Guaranteed loan subsidy (in percent):
    2320  SBIC Participating Securities.....                               -5.69
    2320  SBIC Debentures...................                               -6.45
                                               ---------   ---------  ----------

    2329    Weighted average subsidy rate...                                0.00
    ---------------------------------------------------------------------------

        Subsidy Rate Changes.--Over the past year, pursuant to Title V of
    the 1974 Budget Act, SBA and OMB have conducted a detailed analysis of
    the loan performance of SBA's 7(a) and 504 credit programs during the
    period from 1983 through 1995. The results of this analysis have led to
    a revision of the FY 1997 subsidy rates for each of these programs. For
    the 504 program, the data analysis indicates that previous estimates of
    recoveries were substantially higher than SBA's actual recoveries and
    that previous estimates of defaults were lower than the historical
    default rate. Consequently, the baseline (current services) subsidy rate
    for the 504 program was increased from zero to 6.85 percent. For the
    7(a) program, the data indicate that actual recoveries and defaults, as
    well as the timing of such events, differ from previous estimates.
    Therefore, the baseline (current services) subsidy rate for the 7(a)
    program has been increased from 1.06 percent to 2.68 percent.

        It should be noted, however, that recent trends appear to
    demonstrate a gradual improvement in the 7(a) portfolio quality. Loans
    made over the past several years have shown a lower incidence of
    defaults. This performance improvement and recent legislative changes
    have been incorporated into the new 7(a) subsidy rate. If these positive
    trends continue, the 7(a) subsidy rate will begin to decline next year
    with subsequent reductions to follow for as long as the portfolio
    quality improves. The SBA and OMB intend to closely monitor these trends
    and will revise the 7(a) subsidy rate annually as appropriate.

        Section 504 Reforms.--In order to keep the 504 subsidy rate at zero
    in FY 1997, the budget proposes to transform the section 504 program's
    funding mechanism into a direct loan program. Under this proposal, SBA
    would lend directly to certified development companies, rather than
    guaranteeing their debentures. This change would eliminate the cost of
    underwriters and other financial intermediaries. Importantly, these
    changes would not increase the cost of capital to the Certified
    Development Companies and would not increase the cost of borrowing to
    small businesses. This revision would lower the 504 subsidy rate from
    6.85 percent to zero.

        SBIC Reforms.--The budget proposes to increase fees for both
    participating securities and debentures. The establishment of an annual
    interest pass-through fee of one percent on the outstanding loan balance
    and an increase in the up-front funding fee from two percent to three
    percent for both programs would reduce subsidy costs as follows: from
    10.01 percent to 3.65 percent for the debenture program; and from 9.07
    percent to 3.38 percent for the participating security program.

    [[Page 931]]

                     Business Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4148-0-3-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................          23          60          34
    00.02 Interest on Treasury borrowing....           7           5           7
                                               ---------   ---------  ----------

    10.00   Total obligations...............          30          65          41
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...          30          65          41
    23.95 New obligations...................         -30         -65         -41
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..          30          58          28
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          24          27          26
    68.10   Change in receivables from
              program account...............          -3           1          -3
    68.47   Portion applied to debt
              reduction.....................         -20         -20         -10
                                               ---------   ---------  ----------

    68.90     Spending authority from
                offsetting collections
                (total).....................           1           8          13
                                               ---------   ---------  ----------

    70.00   Total new financing authority
              (gross).......................          30          65          41
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.90   Obligated balance: Fund balance.          35          33          27
    72.95   Receivables from program account           6           3           4
                                               ---------   ---------  ----------

    72.99     Total unpaid obligations,
                start of year...............          41          36          31
    73.10 New obligations...................          30          65          41
    73.20 Total financing disbursements
            (gross).........................         -35         -69         -55
          Unpaid obligations, end of year:

    74.90   Obligated balance: Fund balance.          33          27          15
    74.95   Receivables from program account           3           4           1
                                               ---------   ---------  ----------

    74.99     Total unpaid obligations, end
                of year.....................          36          31          16
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................          35          69          55
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: Payments from
                program account.............          -7          -9          -3
              Non-Federal sources:
    88.40       Repayments of principal, net          -7          -6         -11
    88.40       Interest received on loans..         -10         -12         -12
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........         -24         -27         -26
    88.95 Change in receivables from program
            accounts........................           3          -1           3
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............           9          37          18
    90.00 Financing disbursements...........          11          42          29
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4148-0-3-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................          23          60          34
                                               ---------   ---------  ----------

    1150    Total direct loan obligations...          23          60          34
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         116         126         137
    1231  Disbursements: Direct loan
            disbursements...................          33          41          42
    1251  Repayments: Repayments and
            prepayments.....................         -15         -18         -22
    1264  Write-offs for default: Other
            adjustments, net................          -8         -12         -12
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........         126         137         145
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond (including
    modifications of direct loans that resulted from obligations in any
    year). The amounts in this account are a means of financing and are not
    included in the budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   73-4148-0-3-376    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1106    Federal assets: Receivables, net           6              3             4              2
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..         139            126           137            145
    1405    Allowance for subsidy cost (-)..          -9             -8            -9            -10
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....         130            118           128            135
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         136            121           132            137
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............         130            118           128            136
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         130            118           128            136
        NET POSITION:
    3100  Appropriated capital..............           6              3             4              1
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............           6              3             4              1
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         136            121           132            137
    -----------------------------------------------------------------------------------------------

                     Business Direct Loan Financing Account

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4148-2-3-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................                               2,650
    00.02 Interest on Treasury borrowing....                                  33
                                               ---------   ---------  ----------

    10.00   Total obligations...............                               2,683
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...                               2,683
    23.95 New obligations...................                              -2,683
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..                               2,574
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............                                 109
                                               ---------   ---------  ----------

    70.00   Total new financing authority
              (gross).......................                               2,683
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                               2,683
    73.20 Total financing disbursements
            (gross).........................                              -1,490
    74.90 Unpaid obligations, end of year:
            Obligated balance:..............
            Fund balance....................                               1,193
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................                               1,490
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Repayments of principal, net                                 -75
    88.40       Interest received on loans..                                 -22
    88.40       Fees........................                                 -12
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........                                -109
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                               2,574
    90.00 Financing disbursements...........                               1,381
    ---------------------------------------------------------------------------

    [[Page 932]]

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4148-2-3-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................                               2,650
                                               ---------   ---------  ----------

    1150    Total direct loan obligations...                               2,650
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........
    1231  Disbursements: Direct loan
            disbursements...................                               1,325
    1251  Repayments: Repayments and
            prepayments.....................                                 -66
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........                               1,259
    ---------------------------------------------------------------------------

                   Business Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4149-0-3-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Default claims....................         368         452         691
    00.02 Payment of downward reestimate to
            receipt account.................                      16
                                               ---------   ---------  ----------

    10.00   Total obligations...............         368         468         691
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.90 Unobligated balance available,
            start of year: Fund balance.....       1,087       1,258       1,658
    22.00 New financing authority (gross)...         539         868         947
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......       1,626       2,126       2,605
    23.95 New obligations...................        -368        -468        -691
    24.90 Unobligated balance available, end
            of year: Fund balance...........       1,258       1,658       1,913
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         547         859         882
    68.10   Change in receivables from
              program account...............          -8           9          64
                                               ---------   ---------  ----------

    68.90     Spending authority from
                offsetting collections
                (total).....................         539         868         946
                                               ---------   ---------  ----------

    70.00   Total new financing authority
              (gross).......................         539         868         947
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.95 Unpaid obligations, start of year:
            Receivables from program account          63          55          64
    73.10 New obligations...................         368         468         691
    73.20 Total financing disbursements
            (gross).........................        -376        -459        -627
    74.95 Unpaid obligations, end of year:
            Receivables from program account          55          64         128
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................         505         571
                                               ---------   ---------  ----------

    87.00   Total financing disbursements
              (gross).......................         376         459         627
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Federal sources: Payments
                  from program account......        -264        -164        -329
    88.00       Payment from program
                  account--Reestimates......                    -274
    88.25     Interest on uninvested funds..         -65         -45         -55
              Non-Federal sources:
    88.40       Fees........................        -127        -225        -282
    88.40       Recoveries..................         -91        -151        -216
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........        -547        -859        -882
    88.95 Change in receivables from program
            accounts........................           8          -9         -64
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                                   1
    90.00 Financing disbursements...........        -171        -400        -255
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4149-0-3-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........
    2131  Guaranteed loan commitments exempt
            from limitation.................       9,709      13,921      11,259
                                               ---------   ---------  ----------

    2150    Total guaranteed loan
              commitments...................       9,709      13,921      11,259
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      13,007      18,618      25,225
    2231  Disbursements of new guaranteed
            loans...........................       8,402      10,413      11,470
    2251  Repayments and prepayments........      -2,423      -3,354      -4,359
    2261  Adjustments: Terminations for
            default that result in loans
            receivable......................        -368        -452        -688
                                               ---------   ---------  ----------

    2290    Outstanding, end of year........      18,618      25,225      31,648
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      14,709      19,677      24,369
    ----------------------------------------------------------------------------

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......         232         527         836
    2331    Disbursements for guaranteed
              loan claims...................         368         452         688
    2351    Repayments of loans receivable..         -33         -59        -101
    2361    Write-offs of loans receivable..         -40         -84        -184
                                               ---------   ---------  ----------

    2390      Outstanding, end of year......         527         836       1,239
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from loan guarantees committed in 1992 and beyond (including
    modifications of loan guarantees that resulted from commitments in any
    year). The amounts in this account are a means of financing and are not
    included in the budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   73-4149-0-3-376    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....       1,087          1,258         1,658          1,913
            Investments in US securities:
    1106      Receivables, net..............          63             55            64            128
          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501    Defaulted guaranteed loans
              receivable, gross.............         379            527           836          1,239
    1502    Interest receivable.............          24             23            28             43
    1505    Allowance for subsidy cost (-)..        -161           -331          -476           -525
                                            ------------ --------------  ------------  -------------
    1599      Net present value of assets
                related to defaulted
                guaranteed loans............         242            219           388            757
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       1,392          1,532         2,110          2,798
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.       1,329          1,451         2,034          2,703
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       1,329          1,451         2,034          2,703
        NET POSITION:
    3100  Appropriated capital..............          63             81            76             95
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............          63             81            76             95
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       1,392          1,532         2,110          2,798
    -----------------------------------------------------------------------------------------------

    [[Page 933]]

                   Business Guaranteed Loan Financing Account

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4149-2-3-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations.................
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...                                  11
    23.95 New obligations...................
    24.90 Unobligated balance available, end
            of year: Fund balance...........                                  11
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............                                  11
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.40   Offsetting collections (cash)
              from: Fees....................                                 -11
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........                                 -11
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4149-2-3-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........
    2131  Guaranteed loan commitments exempt
            from limitation.................                                 394
                                               ---------   ---------  ----------

    2150    Total guaranteed loan
              commitments...................                                 394
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........
    2231  Disbursements of new guaranteed
            loans...........................                                 394
    2251  Repayments and prepayments........                                 -28
    2261  Adjustments: Terminations for
            default that result in loans
            receivable......................
                                               ---------   ---------  ----------

    2290    Outstanding, end of year........                                 366
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..                                 366
    ----------------------------------------------------------------------------

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......
    2331    Disbursements for guaranteed
              loan claims...................
    2351    Repayments of loans receivable..
    2361    Write-offs of loans receivable..
                                               ---------   ---------  ----------

    2390      Outstanding, end of year......
    ---------------------------------------------------------------------------

                     Business Loan Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4154-0-3-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Defaults on guarantee loans--
            regular.........................         238         190         145
    00.03 Defaults on guarantee loans--SBIC.
    00.05 Other expenses....................         134         109          81
    00.06 Section 503 prepayments...........          30
                                               ---------   ---------  ----------

    00.91   Total capital expenses..........         402         299         226
    01.01 Operating expenses: Interest
            expense to Treasury.............          99          89          76
                                               ---------   ---------  ----------

    10.00   Total obligations...............         501         388         302
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
          Unobligated balance available, start of year:

            Fund balance:
    21.90     Committed.....................           2           1           2
    21.90     Uncommitted...................         528         553         623
                                               ---------   ---------  ----------

    21.99     Total unobligated balance,
                start of year...............         530         554         625
    22.00 New budget authority (gross)......         744         469         430
    22.60 Redemption of debt................        -219         -10         -23
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......       1,055       1,013       1,032
    23.95 New obligations...................        -501        -388        -302
          Unobligated balance available, end of year:

            Fund balance:
    24.90     Committed.....................           1           2
    24.90     Uncommitted...................         553         623         730
                                               ---------   ---------  ----------

    24.99   Total unobligated balance, end
              of year.......................         554         625         730
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............         744         469         430
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.         -18         113         115
    73.10 New obligations...................         501         388         302
    73.20 Total outlays (gross).............        -370        -386        -302
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.         113         115         115
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................         370         386         302
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........         370         386         302
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -30
              Non-Federal sources:
                Loan repayments:

    88.40         Financing programs........        -183        -170        -160
    88.40         Investment programs.......         -22         -21         -20
    88.40         SBIC obligations..........         -51          -3
    88.40         Section 503 development
                    obligations.............        -167          -6         -12
                Interest income:

    88.40         Financing programs........        -115        -136        -125
    88.40         Investment programs.......         -32         -13         -13
    88.40         Other income..............        -144        -120        -100
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........        -744        -469        -430
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................        -374         -83        -128
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4154-0-3-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
              BUSINESS LOAN FUND, DIRECT
                  LOANS
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,987       1,675       1,476
    1232  Disbursements: Purchase of loans
            assets from the public..........         199         226         159
    1251  Repayments: Repayments and
            prepayments.....................        -205        -175        -152
    1263  Write-offs for default: Direct
            loans...........................        -306        -250        -221
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........       1,675       1,476       1,262
    ----------------------------------------------------------------------------

              SMALL BUSINESS INVESTMENT
                  COMPANY, DIRECT LOANS
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          57           6           3
          Repayments:

    1251    Repayments and prepayments......                      -3          -3
    1252    Proceeds from loan asset sales
              to the public or discounted...         -51
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........           6           3
    ----------------------------------------------------------------------------

    [[Page 934]]

              SECTION 503 DEVELOPMENT
                  COMPANY, DIRECT LOANS
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         523         356         350
    1251  Repayments: Repayments and
            prepayments.....................        -167          -6         -12
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........         356         350         338
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4154-0-3-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
              BUSINESS LOAN FUND, LOAN
                  GUARANTEES
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       9,479       7,675       6,373
    2231  Disbursements of new guaranteed
            loans...........................           4
    2251  Repayments and prepayments........      -1,536      -1,117        -896
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -266        -176        -127
    2264    Other adjustments, net..........          -6          -9          -7
                                               ---------   ---------  ----------

    2290    Outstanding, end of year........       7,675       6,373       5,343
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       6,574       5,199       4,375
    ----------------------------------------------------------------------------

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......         788       1,054       1,230
    2331    Disbursements for guaranteed
              loan claims...................         266         176         127
                                               ---------   ---------  ----------

    2390      Outstanding, end of year......       1,054       1,230       1,357
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, all cash flows to and from the Government
    resulting from direct loans obligated and loan guarantees committed
    prior to 1992. This account is shown on a cash basis. All new activity
    in this program in 1992 and beyond (including modifications of direct
    loans or loan guarantees that resulted from obligations or commitments
    in any year) is recorded in corresponding program and financing
    accounts.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   73-4154-0-3-376    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         558            170           180            184
    0102  Expense...........................        -499           -185          -175           -174
                                            ------------ --------------  ------------  -------------
    0109  Net loss..........................          59            -15             5             10
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   73-4154-0-3-376    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         512            666           600            575
            Investments in US securities:
    1104      Agency securities, par........                        120           100            100
    1107      Advances and prepayments......          17             12            15             16
          Non-Federal assets:

    1206    Receivables, net................         841            485           350            300
    1207    Advances and prepayments........          19              7            10              9
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............       1,987          2,036         1,827          1,586
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................      -1,315         -1,215        -1,100         -1,000
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................         672            821           727            586
    1901  Other Federal assets: Other assets         488             99            80             85
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       2,549          2,210         1,882          1,671
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................       1,461          1,445         1,275          1,150
    2102    Interest payable................          54            156           100             76
            Debt:
    2103      Debt to the FFB...............         581            361           297            245
    2103      SBIC and development company
                participation certificates..          74
          Non-Federal liabilities:

    2201    Accounts payable................          18             11            10             10
    2204    Liabilities for loan guarantees.         322            200           175            165
    2207    Unearned revenue (advances).....          38             37            25             25
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       2,548          2,210         1,882          1,671
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4154-0-3-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    33.0  Investments and loans.............         402         299         226
    43.0  Interest and dividends............          99          89          76
    99.0  Subtotal, reimbursable obligations         501         388         302
                                               ---------   ---------  ----------

    99.9    Total obligations...............         501         388         302
    ---------------------------------------------------------------------------

                         Disaster Loans Program Account

        For the cost of direct loans authorized by section 7(b) of the Small
    Business Act, as amended, $65,800,000, to remain available until
    expended: Provided, That such costs including the costs of modifying
    such loans, shall be as defined in section 502 of the Congressional
    Budget Act of 1974.
        In addition, for administrative expenses to carry out the direct
    loan program, $78,000,000, which may be transferred to and merged with
    the appropriations for Salaries and Expenses.
        In addition, for the cost of emergency disaster loans and associated
    administrative expenses, $100,000,000, to remain available until
    expended: Provided, That these funds, or any portion thereof, shall be
    available beginning in fiscal year 1997 to the extent that the President
    notifies the Congress of his designation of any or all of these amounts
    as emergency requirements under Section 251(b)(2)(D)(i) of the Balanced
    Budget and Emergency Deficit Control Act of 1985, as amended. Provided
    further, That Congress hereby designates these amounts as emergency
    requirements pursuant to such Act.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-1152-0-1-453      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............         414         262          66
    00.09 Administrative expenses...........         200         127          78
                                               ---------   ---------  ----------

    10.00   Total obligations...............         614         389         144
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year: Uninvested
            balance.........................         434          48
    22.00 New budget authority (gross)......         130         231         144
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          98         110
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......         662         389         144
    23.95 New obligations...................        -614        -389        -144
    24.40 Unobligated balance available, end
            of year: Uninvested balance.....          48
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    40.00 Appropriation.....................         130         231         144
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance: Appropriation         655         466         232
    73.10 New obligations...................         614         389         144
    73.20 Total outlays (gross).............        -705        -513        -257
    73.45 Adjustments in unexpired accounts.         -98        -110

    [[Page 935]]

    74.40 Unpaid obligations, end of year:
            Obligated balance: Appropriation         466         232         119
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new current authority         104         164         111
    86.93 Outlays from current balances.....         601         349         146
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........         705         513         257
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         130         231         144
    90.00 Outlays...........................         705         513         257
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-1152-0-1-453      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct Disaster Loans.............       1,311         932         406
        Direct loan subsidy (in percent):
    1320  Disaster subsidy rate.............       31.54       28.08       16.21
        Direct loan subsidy budget authority:
    1330  Disaster subsidy budget authority.         414         262          66
        Direct loan subsidy outlays:
    1340  Disaster subsidy outlays..........         505         384         179
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................         200         127          78
    3590  Outlays from new authority........         200         127          78
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records, for loans made pursuant to section 7(b) of the Small Business
    Act, as amended, the subsidy costs associated with the direct loans
    obligated in 1992 and beyond (including modifications of direct loans or
    loan guarantees that resulted from obligations or commitments in any
    year), as well as administrative expenses of this program. The subsidy
    amounts are estimated on a present value basis; the administrative
    expenses are estimated on a cash basis.

        Disaster loans made pursuant to Section 7(b) of the Small Business
    Act are the primary form of Federal assistance for non-farm, private
    sector disaster losses. For this reason, the program is the only form of
    SBA assistance not limited to small businesses. Through this program,
    SBA helps homeowners, renters, businesses of all sizes, and non-profit
    organizations pay for the cost of rebuilding. Pursuant to the Small
    Business Act, the government subsidizes borrowers who have incurred
    uninsured losses or economic injury as the result of a natural disaster.
    These loans are also a critical source of economic stimulation in
    disaster-ravaged communities, helping to spur employment and stabilize
    the local tax base. Eligibility is based on financial criteria. Interest
    rates fluctuate according to statutory formulas: a lower rate, not to
    exceed four percent, available to applicants without credit available
    elsewhere; and a higher rate, not to exceed eight percent, for those
    with credit available elsewhere. There are three loan programs: physical
    disaster loans to individuals, physical disaster loans to businesses of
    any size, and economic injury loans to small businesses without credit
    available elsewhere.

    Program Performance:

        Over the 41 year history of the program, SBA has helped nearly 1.3
    million disaster victims by providing more than $22.1 billion in
    disaster assistance. Over 90 percent has been to borrowers that
    otherwise would not have been able to rebuild. During 1994 alone, SBA
    approved nearly 125,000 disaster loans for an all-time record amount of
    about $4 billion.

        Given historical program performance, SBA has annually made
    approximately $833 million in loans for disaster relief (excluding the
    effect of the 1994 Northridge Earthquake). The 1997 request, including
    the program reform discussed below, would support this program level.

        Program Performance and Policy Goals.--SBA program performance and
    policy goals are as follows: 1) provide disaster assistance to victims
    in the most effective and cost efficient manner; 2) deliver an effective
    program that achieves its public policy objectives; 3) provide customer-
    focused assistance that satisfactorily accommodates the needs of all
    disaster victims; and, 4) simplify and streamline the loan-making
    process by re-engineering forms, procedures and processes.

        Performance Indicators.--A true assessment of program effectivess is
    a long-term process, and there is much to learn about the true extent
    that the disaster loan program contributes to effective recovery. In the
    short term, SBA is committed to providing cost-effective delivery and
    high satisfaction levels to the customers who use its services. In the
    long run, the agency's goal is to facilitate true economic recovery and
    assess how the program's business recovery assistance contributes to the
    rebuilding of a local or regional economy. Performance measures used in
    1997 to assess progress in achieving the above goals follow.

    ------------------------------------------------------------------------
                      Outputs                       Intermediate Outcomes
    ------------------------------------------------------------------------
    Loan decision within 7 to 20 days--number,  Increased funds available at
     percent.                                    time of need
    Initial disbursement ordered 4 days after   Improved customer
     receipt of loan closing documents--         satisfaction due to
     number, percent.                            simplified and less
                                                 burdensome processes
    Loans approved--number, dollar amount.....  Reduced costs to Government
    ------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-1152-0-1-453      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    41.0  Direct obligations: Grants,
            subsidies, and contributions....         414         262          66
    99.0  Reimbursable obligations:
            Subtotal, reimbursable
            obligations.....................         200         127          78
                                               ---------   ---------  ----------

    99.9    Total obligations...............         614         389         144
    ---------------------------------------------------------------------------

                         Disaster Loans Program Account

                  (Legislative proposal, not subject to PAYGO)

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-1152-2-1-453      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct Disaster Loans.............                                 427
                                               ---------   ---------  ----------

    1159    Total direct loan levels........                                 427
        Direct loan subsidy (in percent):
    1320  Disaster subsidy rate.............                               -8.31
    ---------------------------------------------------------------------------

                                                                                                                    subsidy
                                                                                                                                    budget authority:
                                                                                                                    1150  Direct Disaster Loans..

                                                                                                                     N

        To reduce the substantial subsidy in this program, the budget
    proposes to increase the interest rate on all disaster loans to the rate
    on Treasury securities of comparable maturity. This reform would reduce
    the subsidy rate from 16.21 percent down to 7.90 percent.

                     Disaster Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4150-0-3-453      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................       1,311         932         833
    00.02 Interest on Treasury borrowing....         180         298         408
                                               ---------   ---------  ----------

    [[Page 936]]

    10.00   Total obligations...............       1,491       1,230       1,241
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...       1,491       1,230       1,241
    23.95 New obligations...................      -1,491      -1,230      -1,241
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..       1,488       1,342       1,681
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         878         827         699
    68.10   Change in receivables from
              program account...............        -231         -76         -98
    68.47   Portion applied to debt
              reduction (-).................        -644        -863      -1,041
                                               ---------   ---------  ----------

    68.90     Spending authority from
                offsetting collections
                (total).....................           3        -112        -440
                                               ---------   ---------  ----------

    70.00   Total new financing authority
              (gross).......................       1,491       1,230       1,241
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.90   Obligated balance: Fund balance.       2,112       1,870       1,400
    72.95   Receivables from program account         438         207         131
                                               ---------   ---------  ----------

    72.99     Total unpaid obligations,
                start of year...............       2,550       2,077       1,531
    73.10 New obligations...................       1,491       1,230       1,241
    73.20 Total financing disbursements
            (gross).........................      -1,964      -1,776      -1,489
          Unpaid obligations, end of year:

    74.90   Obligated balance: Fund balance.       1,870       1,400       1,250
    74.95   Receivables from program account         207         131          33
                                               ---------   ---------  ----------

    74.99     Total unpaid obligations, end
                of year.....................       2,077       1,531       1,283
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................       1,964       1,776       1,489
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.        -414        -262         -66
              Non-Federal sources:
    88.40       Repayments of principal, net         -55         -88        -122
    88.40       Interest received on loans..        -409        -478        -512
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........        -878        -828        -700
    88.95 Change in receivables from program
            accounts........................         231          76          98
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         844         478         639
    90.00 Financing disbursements...........       1,086         948         789
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4150-0-3-453      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................       1,311         932         833
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       5,409       7,157       7,891
    1231  Disbursements: Direct loan
            disbursements...................       1,811         923         914
    1251  Repayments: Repayments and
            prepayments.....................         -55         -88        -122
    1264  Write-offs for default: Other
            adjustments, net................          -8        -101        -105
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........       7,157       7,891       8,578
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond (including
    modifications of direct loans that resulted from obligations in any
    year). The amounts in this account are a means of financing and are not
    included in the budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   73-4150-0-3-453    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1106    Federal assets: Program account.         438            466           232            119
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..       3,586          6,748         7,005          7,179
    1405    Allowance for subsidy cost (-)..        -235           -414          -262            -66
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....       3,351          6,334         6,743          7,113
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       3,789          6,800         6,975          7,232
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............       3,789          6,334         6,743          7,113
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       3,789          6,334         6,743          7,113
        NET POSITION:
    3100  Appropriated capital..............                        466           232            119
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............                        466           232            119
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       3,789          6,800         6,975          7,232
    -----------------------------------------------------------------------------------------------

                     Disaster Direct Loan Financing Account

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4150-2-3-453      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................                                 427
    00.02 Interest on Treasury borrowing....                                   6
                                               ---------   ---------  ----------

    10.00   Total obligations...............                                 433
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...                                 433
    23.95 New obligations...................                                -433
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
    67.15 Authority to borrow (indefinite)..                                 438
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...                                  16
    68.47   Portion applied to debt
              reduction (-).................                                 -21
                                               ---------   ---------  ----------

    68.90     Spending authority from
                offsetting collections
                (total).....................                                  -6
                                               ---------   ---------  ----------

    70.00   Total new financing authority
              (gross).......................                                 433
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................                                 433
    73.20 Total financing disbursements
            (gross).........................                                -232
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.                                 200
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................                                 232
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Repayments of principal, net                                  -1
    88.40       Interest received on loans..                                 -15
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........                                 -16
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                                 417
    90.00 Financing disbursements...........                                 216
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4150-2-3-453      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........

    [[Page 937]]

    1131  Direct loan obligations exempt
            from limitation.................                                 427
                                               ---------   ---------  ----------

    1150    Total direct loan obligations...                                 427
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........
    1231  Disbursements: Direct loan
            disbursements...................                                 143
    1251  Repayments: Repayments and
            prepayments.....................                                 -16
    1264  Write-offs for default: Other
            adjustments, net................                                 -17
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........                                 110
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   73-4150-2-3-453    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1106    Federal assets: Program account.
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..                                                     110
    1405    Allowance for subsidy cost (-)..
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....                                                     110
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                                                     110
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............                                                     110
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                                                     110
        NET POSITION:
    3100  Appropriated capital..............
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                                                     110
    -----------------------------------------------------------------------------------------------

                     Disaster Loan Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4153-0-3-453      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    01.01   Interest expense to Treasury....          89          80          67
    01.03   Other expenses..................          12          12          10
    01.04   Total operating expenses........           1
                                               ---------   ---------  ----------

    10.00   Total obligations...............         102          92          77
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
          Unobligated balance available, start of year:

            Fund balance:
    21.90     Committed.....................           5           4           4
    21.90     Uncommitted...................         373         249         250
                                               ---------   ---------  ----------

    21.99     Total unobligated balance,
                start of year...............         378         253         254
    22.00 New budget authority (gross)......         350         342         289
    22.40 Capital transfer to general fund..        -373        -249        -250
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......         355         346         293
    23.95 New obligations...................        -102         -92         -77
          Unobligated balance available, end of year:

            Fund balance:
    24.90     Committed.....................           4           4           4
    24.90     Uncommitted...................         249         250         212
                                               ---------   ---------  ----------

    24.99   Total unobligated balance, end
              of year.......................         253         254         216
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............         350         342         289
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.90 Unpaid obligations, start of year:
            Obligated balance: Fund balance.          14          51          96
    73.10 New obligations...................         102          92          77
    73.20 Total outlays (gross).............         -65         -47
    74.90 Unpaid obligations, end of year:
            Obligated balance: Fund balance.          51          96         173
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new permanent
            authority.......................          65          47
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........          65          47
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Loan repayments.............        -242        -252        -213
    88.40       Interest income.............         -93         -80         -67
    88.40       Other income................         -12         -10          -9
    88.40       Recovery on Loan
                  Cancellations.............          -3
                                               ---------   ---------  ----------

    88.90       Total, offsetting
                  collections (cash)........        -350        -342        -289
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................        -286        -295        -289
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4153-0-3-453      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       2,195       1,918       1,620
    1231  Disbursements: Direct loan
            disbursements...................           5
    1251  Repayments: Repayments and
            prepayments.....................        -242        -252        -213
    1263  Write-offs for default: Direct
            loans...........................         -40         -46         -39
                                               ---------   ---------  ----------

    1290    Outstanding, end of year........       1,918       1,620       1,368
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, all cash flows to and from the Government
    resulting from direct loans obligated prior to 1992. This account is
    shown on a cash basis. All new activity in this program in 1992 and
    beyond (including modifications of direct loans or loan guarantees that
    resulted from obligations or commitments in any year) is recorded in
    corresponding program and financing accounts.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   73-4153-0-3-453    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         420            105            90             76
    0102  Expense...........................         -58           -102           -92            -77
                                            ------------ --------------  ------------  -------------
    0109  Net income or loss (-)............         362              3            -2             -1
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   73-4153-0-3-453    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         392            304           350            340
    1206  Non-Federal assets: Receivables,
            net.............................          83            112            70             78
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............       2,196          1,918         1,620          1,368
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -177           -154          -165           -160
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       2,019          1,764         1,455          1,208
          Other Federal assets:

    1801    Cash and other monetary assets..           8              1             1              1
    1803    Property, plant and equipment,
              net...........................                          6
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       2,502          2,187         1,876          1,627
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................          40             89            32             82
    2104    Resources payable to Treasury...           1
    2201  Non-Federal liabilities: Accounts
            payable.........................       2,460          2,098         1,789          1,545
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       2,501          2,187         1,821          1,627
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       2,501          2,187         1,821          1,627
    -----------------------------------------------------------------------------------------------

    [[Page 938]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4153-0-3-453      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
    33.0  Investments and loans.............          11          12          10
    43.0  Interest and dividends............          91          80          67
                                               ---------   ---------  ----------

    99.9    Total obligations...............         102          92          77
    ---------------------------------------------------------------------------

              Pollution Control Equipment Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4147-0-3-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total obligations (object class
            42.0)...........................           1           1           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
          Unobligated balance available, start of year:

            Fund balance:
    21.90     Committed.....................          12          11          10
    21.90     Uncommitted...................           3           3           2
                                               ---------   ---------  ----------

    21.99     Total unobligated balance,
                start of year...............          15          14          12
    22.00 New budget authority (gross)......
                                               ---------   ---------  ----------

    23.90   Total budgetary resources
              available for obligation......          15          14          12
    23.95 New obligations...................          -1          -1          -1
          Unobligated balance available, end of year:

            Fund balance:
    24.90     Committed.....................          11          10           8
    24.90     Uncommitted...................           3           2           2
                                               ---------   ---------  ----------

    24.99   Total unobligated balance, end
              of year.......................          14          12          10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
    68.00 Spending authority from offsetting
            collections (gross): Offsetting
            collections (cash)..............
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 New obligations...................           1           1           1
    73.20 Total outlays (gross).............          -1          -1          -1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from permanent balances...                       1           1
                                               ---------   ---------  ----------

    87.00   Total outlays (gross)...........           1           1           1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           1           1           1
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4147-0-3-376      1995 actual   1996 est.   1997 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         106          95          86
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....          -1          -1          -1
    2264    Other adjustments, net..........         -10          -8          -7
                                               ---------   ---------  ----------

    2290    Outstanding, end of year........          95          86          78
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          95          76          65
    ----------------------------------------------------------------------------

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......          53          46          41
    2331    Disbursements for guaranteed
              loan claims...................           1           1           1
    2351    Repayments of loans receivable..          -8          -6          -5
                                               ---------   ---------  ----------

    2390      Outstanding, end of year......          46          41          37
    ---------------------------------------------------------------------------

        Public Law 94-305 established this fund to alleviate the adverse
    impact of pollution regulations on small businesses. As a result of the
    elimination of tax exempt financing associated with the Pollution
    Control Guaranteed program, no new activity is anticipated for this
    program.

        During 1992, the Small Business Administration started the process
    of redeeming a large number of outstanding bonds on which it has taken
    over loan payments. Most of these targeted bonds are ten years old and
    voluntary redemption is now viable under the bond documents. Redemption
    of these obligations would preclude the SBA from paying excessive
    interest over the next ten years.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   73-4147-0-3-376    1994 actual    1995 actual     1996 est.      1997 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................          15             14            11              9
    1206  Non-Federal assets: Receivables,
            net.............................          21              9             7              6
    1701  Net value of assets related to
            pre-1992 direct loans receivable
            and acquired defaulted
            guaranteed loans receivable:
            Defaulted guaranteed loans,
            gross...........................           6              6             5              4
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          42             29            23             19
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............          20             15            12             10
    2201  Non-Federal liabilities: Accounts
            payable.........................          22
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          42             15            12             10
        NET POSITION:
    3100  Appropriated capital..............         146
    3300  Cumulative results of operations..        -146
    3600  Other.............................                         14            11              9
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............                         14            11              9
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          42             29            23             19
    -----------------------------------------------------------------------------------------------

            administrative provisions--small business administration

        Not to exceed 5 percent of any appropriation made available for the
    current fiscal year for the Small Business Administration in this Act
    may be transferred between such appropriations, but no such
    appropriation shall be increased by more than 10 percent by any such
    transfers.
        Note.--A regular 1996 appropriation for this account had not been
    enacted at the time this budget was prepared. The 1996 amounts included
    in this budget are based on the levels provided in three continuing
    resolutions: P.L. 104-91, P.L. 104-92, and P.L. 104-99.