[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
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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
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Status of Guaranteed Loans (in millions of dollars)
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Identification code 73-4147-0-3-376 1995 actual 1996 est. 1997 est.
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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
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2290 Outstanding, end of year........ 95 86 78
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Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 95 76 65
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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
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2390 Outstanding, end of year...... 46 41 37
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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)
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Identification code 73-4147-0-3-376 1994 actual 1995 actual 1996 est. 1997 est.
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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
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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
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2999 Total liabilities............... 42 15 12 10
NET POSITION:
3100 Appropriated capital.............. 146
3300 Cumulative results of operations.. -146
3600 Other............................. 14 11 9
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3999 Total net position.............. 14 11 9
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4999 Total liabilities and net position 42 29 23 19
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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.