[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.