[Appendix]
[Detailed Budget Estimates by Agency]
[Small Business Administration]
[From the U.S. Government Printing Office, www.gpo.gov]
THE BUDGET FOR FISCAL YEAR 1998
[[Page 987]]
SMALL BUSINESS ADMINISTRATION
The budget provides $701 million in new budget authority for the
Small Business Administration (SBA). When combined with anticipated
carryover and decreased loan subsidy costs, this funding level allows
SBA to continue to expand assistance to small businesses at a reduced
cost to the Federal taxpayer.
In 1998, SBA proposes to continue to increase its reliance on its
private sector partners. Three initiatives will allow SBA to complete
its transition from physically servicing and liquidating its $36 billion
loan portfolio to overseeing its private sector partners. First, 7(a)
General Business lenders will be required to service and liquidate all
loans approved after FY 1997. Second, SBA will sell its $10 billion
portfolio of defaulted guarantees and direct loans beginning in FY 1998.
Third, SBA requests $18 million to improve its portfolio monitoring
capabilities. These proposals will allow SBA to focus its limited
resources on expanding assistance to small businesses while relying on
its private sector partners for ``back-end'' activities. The budget
estimates that these proposals will lead to lower credit,
administrative, and subsidy costs.
The budget proposes growth in programs to expand access to capital,
assist disadvantaged small businesses, and provide education and
training. As part of SBA's goal of stretching taxpayers' dollars, the
budget also assumes that (1) Small Business Development Companies will
charge counseling fees to substitute for a reduction in federal grants
and proposes that (2) disaster loan borrowers pay an interest rate equal
to the rate on Treasury securities of comparable maturity.
Federal Funds
General and special funds:
Salaries and Expenses
For necessary expenses, not otherwise provided for, of the Small
Business Administration as authorized by Public Law 103-403, including
hire of passenger motor vehicles as authorized by 31 U.S.C. 1343 and
1344, and not to exceed $3,500 for official reception and representation
expenses, [$223,547,000, of which $1,000,000 shall only be available for
obligation and expenditure for projects jointly developed, implemented
and administered with the Minority Business Development Agency of the
Department of Commerce] $246,100,000: Provided, That the Administrator
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: Provided further, That [$75,500,000] $57,500,000 shall
be available to fund grants for performance in fiscal year [1997] 1998
or fiscal year [1998] 1999 as authorized by section 21 of the Small
Business Act, as amended. [In addition, for expenses not otherwise
provided for, of the Small Business Administration, $11,500,000, of
which: $3,000,000 shall be available for a grant to continue the WVHTC
Foundation outreach program to assist small business development;
$7,000,000 shall be available for a grant to the Center for Rural
Development in Somerset, Kentucky, for small business and rural
technology development assistance; $1,000,000 shall be available for a
grant to Indiana State University for the renovation and equipping of a
training facility, to assist in creating small business and economic
development opportunities; and $500,000 shall be available for a
continuation grant to the Center for Entrepreneurial Opportunity in
Greensburg, Pennsylvania, to provide for small business consulting and
assistance.] (Departments of Commerce, Justice, and State, the
Judiciary, and Related Agencies Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-0100-0-1-376 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Government Contracting and
Minority Enterprise Development. 21 21 32
00.02 Disaster assistance............... 112 126 123
00.03 Economic development.............. 117 132 127
00.04 Management and administration..... 83 75 77
00.05 Executive direction............... 2 1 1
00.06 General counsel................... 5 5 5
00.07 Congressional and legislative
affairs......................... 1 1 1
00.08 Hearings and appeals.............. 1 1 1
00.09 Communications and publications... 3 2 2
00.11 Advocacy.......................... 5 5 5
00.12 Field operations.................. 3 4 5
00.13 Equal Employment Opportunity and
civil rights compliance......... 2 2 2
00.14 Regional and district offices..... 123 123 126
00.15 Chief financial officer........... 10 9 10
--------- --------- ----------
10.00 Total obligations............... 488 507 517
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 4
22.00 New budget authority (gross)...... 487 508 517
22.22 Unobligated balance transferred
from other accounts............. 2
22.30 Unobligated balance expiring...... -5
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 488 508 517
23.95 New obligations................... -488 -507 -517
24.40 Unobligated balance available, end
of year: Uninvested balance.....
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation................... 219 235 246
Permanent:
68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 268 273 271
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 487 508 517
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 174 182 181
73.10 New obligations................... 488 507 517
73.20 Total outlays (gross)............. -477 -508 -514
73.40 Adjustments in expired accounts... -3
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 182 181 184
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 169 180 188
86.93 Outlays from current balances..... 40 55 55
86.97 Outlays from new permanent
authority....................... 268 273 271
--------- --------- ----------
87.00 Total outlays (gross)........... 477 508 514
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
Federal sources:
88.00 Payments from business loan
program account........... -97 -95 -97
88.00 Payments from disaster loan
program account........... -164 -127 -173
88.00 Reprogramming of disaster
loan subsidy.............. -50
88.40 Non-Federal sources........... -7 -1 -1
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -268 -273 -271
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 219 235 246
90.00 Outlays........................... 209 235 243
---------------------------------------------------------------------------
[[Page 988]]
Summary of Budget Authority and Outlays
(in millions of dollars)
1996 actual 1997 est. 1998 est.
Enacted/requested:
Budget Authority.................. 219 235 246
Outlays........................... 209 235 243
Legislative proposal, subject to
PAYGO:
Budget Authority.................. 1
Outlays........................... 1
------------------------------------
Total:
Budget Authority.................. 219 235 247
Outlays........................... 209 235 244
====================================
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 (ADA) 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 1998, SBA plans to
continue providing business management training and tools for the small
business community through U.S. Export Assistance Centers, 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 have 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 Federal
procurement awards. The Minority Enterprise Development programs provide
assistance to socially and economically disadvantaged small business
concerns, primarily in the areas of business development and Federal
procurement. Through this office, SBA assists firms that are owned by
disadvantaged persons to help them develop into viable competitive
businesses in a reasonable period of time.
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 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 is charged by law to be an
independent voice for small business within the government, and to: (1)
examine the role of small business in the economy and its contribution
to competition; (2) evaluate financial markets and the credit needs of
small business; (3) measure the costs of regulation on small business;
and, (4) monitor agency compliance with the Regulatory Flexibility Act
(RFA), as amended by the Small Business Regulatory Enforcement Fairness
Act (SBREFA).
Program Performance
Small Business Development Centers (SBDCs).--The SBDCs provide long
term counseling to small businesses at about 1,000 locations in 50
states. In FY 1996, nearly 600,000 customers were helped of which
roughly 40 percent of the customers were women and 17 percent were
minorities.
Service Corps of Retired Executives (SCORE).--Using one-on-one
counseling and workshops SCORE reaches about 270,000 business owners
annually using approximately 13,000 counselors through approximately 400
chapters located across the country. Counseling costs to the Government
are less than $3 per hour. For 1998, the budget proposes a funding level
of $3.5 million for this program.
Microloan Technical Assistance.--The Microloan Program helps support
the Administration's initiative to put those on welfare to work by
providing opportunities to start up small businesses using SBA-
guaranteed microloans. Microloan Technical Assistance grants ensure that
microloan borrowers are provided the necessary education and training
needed for them to succeed. The budget provides $16.5 million in
Microloan grants.
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 1998 funding level of
approximately $1 million to support veterans, women, and international
trade outreach initiatives.
Women's Demonstration Program.--Through this program the SBA makes
awards to private entities to deliver entrepreneurial training programs
for women business owners or those interested in starting a business. In
1996, 54 demonstration sites, or business centers, were operating in 28
states and Washington, DC. Each offers financial, management, marketing
and technical assistance to current and potential women business owners.
This budget proposes $4 million for this program in 1998 to establish 10
to 12 new sites, and to continue two initiatives begun in 1996: the
Women's Business Intranet (which links all of the demonstration sites)
and a virtual demonstration site on the Internet, which will allow women
nationwide to have access to these services.
Business Information Centers (BIC).--These centers offer self-help
hardware, software and reference materials, and 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 1998,
the budget proposes $500 thousand for this program.
Native American Affairs.--This program supports the economic
development needs of reservation communities. In 1996, over 400 loans
were made to Native Americans under the agency's 7(a) program, amounting
to more than $66 million in loans. The agency also opened 15 new Tribal
Business Information Centers (TBICs) to deliver business education and
training on reservations.
Business Assistance Publications.--The SBA provides publications on
a self-funding basis and distributes an estimated 300,000 items to the
public each year.
One Stop Capital Shops (OSCS).--One Stop Capital Shops are located
in Empowerment Zone, Enterprise Community, and Rural Economic Area
Partnership communities. The objectives of these programs are to
stimulate and sustain eco-
[[Page 989]]
nomic development in these economically distressed and underserved
areas. The OSCS is a delivery mechanism for existing SBA programs that
emphasize the use of public/private relationships. The SBA serves as a
catalyst by offering its business development and capital resources
together in one location with other federal, state, local, and private
sector resources in order to leverage and complement those resources and
provide better customer service. Based on the performance of the 15
shops, the SBA plans to expand the number in 1998.
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, 1996, more than one and a half million connections to SBA
Online were logged, and more than 120,000 individuals used the system on
a regular basis.
Performance Measures
Program and Policy Goals under the GPRA.--President Clinton has made
small business formation and growth an essential part of his national
economic plan. He has asked the Small Business Administration to focus
on five program and policy goals as part of the plan: (1) improve small
businesses' access to capital; (2) reduce the regulatory and paperwork
burden on small firms; (3) offer quality business education,
information, and training; (4) serve as the President's eyes and ears,
reporting back to him on the needs of small business, and function as an
``advocate'' for small businesses; and, (5) help disaster victims to
rebuild so they can contribute again to the Nation's economy.
SBA Strategic Plan.--It is the mission of the SBA to serve America's
small businesses in the most cost effective manner possible to help
preserve free competition, to contribute to strengthening the Nation's
economy, and to assist disaster-ravaged communities recover from their
losses.
Performance Indicators.--In the long run, the Agency's performance
goal is true economic development and the capacity to assess how SBA
assistance contributes to helping small businesses succeed. A variety of
credit and non-credit business output and outcome measures are included
in the SBA strategic and annual performance plan to measure progress in
the following areas: businesses created, maintained, and/or expanded;
jobs created, and revenues generated; cost effective access to quality
training, counseling and information; private capital leveraged more
effectively; improved customer satisfaction; reduced paperwork, more
understandable regulations, and increased compliance; increased use of
resource partners and more flexible lending; small businesses receiving
an increased share of Federal procurement and research; efficient
delivery of disaster service and a greater satisfaction level; and,
delivery of SBA programs that ``work better and cost less.''
1998 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 22
percent since the end of 1992.
Portfolio monitoring.--Over the past four years, SBA has
aggressively increased access to capital, reduced staffing, and
delegated authority to its private sector partners. In order to support
these trends and to maintain a quality portfolio, the budget requests
$18 million for improving portfolio monitoring. This initiative, which
is a key part of the 1998 7(a) General Business Loan Guaranty Program
proposal, will allow SBA to: recruit expertise in lender oversight;
develop the necessary in-house systems for lender monitoring; contract
with a financial advisor on asset disposition; and establish performance
standards for SBA lenders similar to those developed by other financial
institutions such as Fannie Mae. The ADA for Economic Development will
re-engineer portfolio management, incorporate the best practices of the
other financial institutions with lender oversight, and develop lender
performance goals. The Chief Information Officer will direct the design
of a corporte database that provides timely information on portfolio
performance, and the Chief Financial Officer will guide the collection
of financial information, analysis and the reporting needed to support
this enhanced oversight capability.
SBDC counseling fees.--The budget requests $57.5 million for the
SBDC program, $16 million below the 1997 level. The Administrator
assumes that SBDCs will charge fees for counseling services to offset
this reduction in Federal support.
Disadvantaged business development.--The budget includes additional
resources that will enable SBA to assume increased responsibilities
pursuant to the U.S. Department of Justice's Affirmative Action Review.
The budget provides $1.9 million to re-engineer business processes and
improve SBA's ability to provide support for Small Disadvantaged
Businesses. The budget also proposes to increase the 7(j) program to
$9.2 million in order to provide increased management and technical
assistance and training for the development of firms owned by socially-
and economically-disadvantaged individuals. Assistance to these 8(a)
program participants will be tailored to the developmental needs of
individual firms. The existing 7(j) Executive Education Program will be
expanded to four additional sites to reach a geographically wider
audience of new entrepreneurs.
PASS database.--The 1998 budget includes $1.2 million for the
Procurement Automated Source System (PASS). PASS is the cornerstone of
SBA's system for posting the profiles of small businesses interested in
procurement opportunities with the federal government or its large,
prime contractors. The system also will accept data required to support
the certification process as recommended by the Department of Justice's
Affirmative Action Review and will be an important component of new
efforts to ensure compliance with federal acquisition regulations.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-0100-0-1-376 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Personnel compensation:
11.1 Full-time permanent............. 144 148 152
11.3 Other than full-time permanent.. 7 7 7
11.5 Other personnel compensation.... 4 4 4
--------- --------- ----------
11.9 Total personnel compensation.. 155 159 163
12.1 Civilian personnel benefits....... 39 40 41
21.0 Travel and transportation of
persons......................... 5 5 5
22.0 Transportation of things.......... 1
23.1 Rental payments to GSA............ 26 25 27
23.3 Communications, utilities, and
miscellaneous charges........... 12 12 13
24.0 Printing and reproduction......... 2 1 1
25.2 Other services.................... 35 31 54
26.0 Supplies and materials............ 2 1 1
31.0 Equipment......................... 3 1 1
41.0 Grants, subsidies, and
contributions................... 96 106 88
Undistributed:
92.0 Undistributed (disaster loan
making)....................... 93 104 102
92.0 Undistributed (disaster loan
servicing).................... 19 22 21
--------- --------- ----------
[[Page 990]]
99.9 Total obligations............... 488 507 517
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 73-0100-0-1-376 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Total compensable workyears:
1001 Full-time equivalent employment... 4,640 4,450 4,522
1005 Full-time equivalent of overtime
and holiday hours............... 300 290 300
---------------------------------------------------------------------------
Note.--The personnel summary includes regular (non-disaster) full-
time equivalents (FTEs) of 3,023, 2,985, and 3,047 in 1996, 1997, and
1998, respectively.
Salaries and Expenses
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-0100-4-1-376 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.03 Economic development.............. 1
--------- --------- ----------
10.00 Total obligations (object class
25.2)......................... 1
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 1
23.95 New obligations................... -1
----------------------------------------------------------------------------
New budget authority (gross), detail:
42.00 Transferred from other accounts... 1
----------------------------------------------------------------------------
Change in unpaid obligations:
73.10 New obligations................... 1
73.20 Total outlays (gross)............. -1
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 1
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 1
90.00 Outlays........................... 1
---------------------------------------------------------------------------
In 1998, the budget proposes that fees collected for SBIC
examination and licensing be collected by the Salaries and Expenses
Account to fund the costs of contracting out for SBIC examination and
licensing.
Office of Inspector General
For necessary expenses of the Office of Inspector General in
carrying out the provisions of the Inspector General Act of 1978, as
amended (5 U.S.C. App. 1-11, as amended by Public Law 100-504),
[$9,000,000] $10,600,000. (Departments of Commerce, Justice, and State,
the Judiciary, and Related Agencies Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-0200-0-1-376 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Management and counsel............ 2 2 2
00.02 Audit............................. 3 3 3
00.03 Investigations.................... 4 4 5
00.04 Disaster.......................... 1 2 1
--------- --------- ----------
10.00 Total obligations............... 10 11 11
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 2 1
22.00 New budget authority (gross)...... 9 9 11
22.22 Unobligated balance transferred
from other accounts............. 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 11 11 11
23.95 New obligations................... -10 -11 -11
24.40 Unobligated balance available, end
of year: Uninvested balance..... 1
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 9 9 11
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 1 1 1
73.10 New obligations................... 10 11 11
73.20 Total outlays (gross)............. -10 -10 -11
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 10
86.93 Outlays from current balances..... 2 2 1
--------- --------- ----------
87.00 Total outlays (gross)........... 10 10 11
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 9 9 11
90.00 Outlays........................... 10 10 11
---------------------------------------------------------------------------
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. 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.
The 1998 budget requests $10.6 million to support an increase in
staff required for critical oversight of SBA's burgeoning business loan
portfolio, the disaster assistance program, and other programs. The OIG
oversight efforts and investigative activities: (1) enhance the SBA's
efficiency and effectiveness; (2) serve to deter fraud and abuse in
agency programs; and (3) consistently demonstrated a high rate of return
on invested funds.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-0200-0-1-376 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 7 8 8
12.1 Civilian personnel benefits....... 1 2 2
92.0 Undistributed..................... 2 1 1
--------- --------- ----------
99.9 Total obligations............... 10 11 11
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 73-0200-0-1-376 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 109 110 112
---------------------------------------------------------------------------
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] $3,500,000, to remain available without fiscal year
limitation as authorized by 15 U.S.C. 631 note. (Departments of
Commerce, Justice, and State, the Judiciary, and Related Agencies
Appropriations Act, 1997.)
[[Page 991]]
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4156-0-3-376 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
10.00 Total obligations (object class
42.0)........................... 16 16 16
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.90 Unobligated balance available,
start of year: Fund balance..... 2 1 6
22.00 New budget authority (gross)...... 16 22 21
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 18 23 27
23.95 New obligations................... -16 -16 -16
24.90 Unobligated balance available, end
of year: Fund balance........... 1 6 11
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation................... 3 4 4
Permanent:
68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 13 17 17
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 16 21 21
----------------------------------------------------------------------------
Change in unpaid obligations:
72.90 Unpaid obligations, start of year:
Obligated balance: Fund balance. 40 41 39
73.10 New obligations................... 16 16 16
73.20 Total outlays (gross)............. -15 -18 -18
74.90 Unpaid obligations, end of year:
Obligated balance: Fund balance. 41 39 37
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 2 1 1
86.93 Outlays from current balances.....
86.97 Outlays from new permanent
authority....................... 13 17 17
86.98 Outlays from permanent balances...
--------- --------- ----------
87.00 Total outlays (gross)........... 15 18 18
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.40 Offsetting collections (cash)
from: Non-Federal sources..... -13 -17 -17
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 3 5 4
90.00 Outlays........................... 2 1 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 1998, 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 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 20 16 22 21
0102 Expense........................... -18 -16 -16 -16
------------ -------------- ------------ -------------
0109 Net loss.......................... 2 6 5
-----------------------------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 73-4156-0-3-376 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 40 43 43 43
1206 Non-Federal assets: Receivables,
net............................. 2 2 2
------------ -------------- ------------ -------------
1999 Total assets.................... 42 43 45 45
LIABILITIES:
2201 Non-Federal liabilities: Accounts
payable......................... 38 41 36 36
------------ -------------- ------------ -------------
2999 Total liabilities............... 38 41 36 36
NET POSITION:
3100 Appropriated capital.............. 319 321 326 326
3300 Cumulative results of operations.. -315 -320 -317 -317
------------ -------------- ------------ -------------
3999 Total net position.............. 4 1 9 9
------------ -------------- ------------ -------------
4999 Total liabilities and net position 42 42 45 45
-----------------------------------------------------------------------------------------------
Credit accounts:
Business Loans Program Account
For [the cost of direct loans, $1,691,000, and for] the cost of
guaranteed loans, [$182,017,000] $173,235,000, 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 $40,510,000]
$20,233,000 for the Small Business Investment Company Debentures Program
and the Small Business Investment Company Participating Securities
Program shall remain available until September 30, [1998] 1999:
Provided, That such costs, including the cost 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] 1998, 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] $2,300,000,000, and direct loan obligations and commitments to
guarantee loans under section 7(m) of the Small Business Act of 1953, as
amended, shall not exceed $44,086,000.
In addition, for administrative expenses to carry out the direct and
guaranteed loan programs, $94,000,000, which may be transferred to and
merged with the appropriations for Salaries and Expenses. (Departments
of Commerce, Justice, and State, the Judiciary, and Related Agencies
Appropriations Act, 1997.)
Unavailable Collections (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-1154-0-1-376 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............ 188
Receipts:
02.01 Business loan program downward
reestimate of subsidy........... 188 50
--------- --------- ----------
04.00 Total: Balances and collections... 188 238
07.99 Total balance, end of year........ 188 238
---------------------------------------------------------------------------
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-1154-0-1-376 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct loan subsidy............... 1 2 2
00.02 Guaranteed loan subsidy........... 117 226 180
00.07 Reestimate of loan guarantee
subsidy......................... 245 183
00.08 Interest on reestimates of loan
guarantee subsidy............... 29 15
00.09 Administrative expenses........... 93 94 94
00.10 Microloan grants (in S&E)......... 4 1 3
--------- --------- ----------
10.00 Total obligations............... 489 521 279
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.90 Unobligated balance available,
start of year: Fund balance..... 41 77 33
22.00 New budget authority (gross)...... 527 478 267
22.21 Unobligated balance transferred to
other accounts.................. -2
22.30 Unobligated balance expiring...... -1 -23
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 565 555 277
23.95 New obligations................... -489 -521 -279
24.90 Unobligated balance available, end
of year: Fund balance........... 77 33
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation................... 253 279 267
Permanent:
60.05 Appropriation (indefinite)...... 274 199
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 527 478 267
----------------------------------------------------------------------------
[[Page 992]]
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 129 96 160
73.10 New obligations................... 489 521 279
73.20 Total outlays (gross)............. -522 -458 -272
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 96 160 165
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 119 176 168
86.93 Outlays from current balances..... 129 83 104
86.97 Outlays from new permanent
authority....................... 274 199
--------- --------- ----------
87.00 Total outlays (gross)........... 522 458 272
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 527 478 267
90.00 Outlays........................... 522 458 272
---------------------------------------------------------------------------
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 73-1154-0-1-376 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Micro loans....................... 9 24 19
--------- --------- ----------
1159 Total direct loan levels........ 9 24 19
Direct loan subsidy (in percent):
1320 Micro loans....................... 15.69 8.86 10.28
--------- --------- ----------
1329 Weighted average subsidy rate... 15.69 8.86 10.28
Direct loan subsidy budget authority:
1330 Micro loans....................... 1 2 2
--------- --------- ----------
1339 Total subsidy budget authority.. 1 2 2
Direct loan subsidy outlays:
1340 Micro loans....................... 2 2 2
--------- --------- ----------
1349 Total subsidy outlays........... 2 2 2
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
2150 General business--7(a)............ 7,328 7,815 6,595
2150 General business--7(a) DELTA...... 23 48 88
2150 Section 504....................... 2,443 2,650 2,300
2150 Section 504 DELTA................. 10 50 139
2150 SBIC debentures................... 109 300 376
2150 SBIC participating securities..... 238 410 456
2150 Micro loan guarantees............. 2 19 25
--------- --------- ----------
2159 Total loan guarantee levels..... 10,153 11,292 9,979
Guaranteed loan subsidy (in percent):
2320 General business--7(a)............ 1.06 2.54 2.32
2320 General business--7(a) DELTA...... 3.15 4.57 3.25
2320 Section 504....................... 0.00 0.00 0.00
2320 Section 504 DELTA................. 0.57 1.01 0.72
2320 SBIC debentures................... 15.46 3.19 2.30
2320 SBIC participating securities..... 9.00 3.29 2.54
2320 Micro loan guarantees............. 11.95 8.21 8.12
--------- --------- ----------
2329 Weighted average subsidy rate... 1.15 2.12 1.51
Guaranteed loan subsidy budget authority:
2330 General business--7(a)............ 78 199 153
2330 General business--7(a) DELTA...... 1 2 3
2330 Section 504.......................
2330 Section 504 DELTA................. 1 1
2330 SBIC debentures................... 17 10 9
2330 SBIC participating securities..... 21 14 12
2330 Micro loan guarantees............. 2 2
--------- --------- ----------
2339 Total subsidy budget authority.. 117 228 180
Guaranteed loan subsidy outlays:
2340 General business--7(a)............ 103 135 149
2340 General business--7(a) DELTA...... 1 2
2340 Section 504....................... 5 1
2340 Section 504 DELTA................. 1
2340 SBIC debentures................... 17 10 9
2340 SBIC participating securities..... 21 14 12
2340 Micro loan guarantees............. 1 2
--------- --------- ----------
2349 Total subsidy outlays........... 146 162 175
---------------------------------------------------------------------------
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.
Budget authority is not requested for the section 504 and microloan
programs in 1998. Instead, an appropriated loan level that currently
reflects expected needs is requested.
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 involving
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 243,500 jobs were created or
maintained through the $2.4 billion in loans guaranteed under the
Development Company programs in 1996.
Program Performance
Program performance and policy goals.--SBA has the following program
performance and policy objectives to support its first GPRA goal of
Improving Access to Capital: (1) focus lending on ``traditionally under-
served'' small businesses; (2) offer specialized financing, such as
venture capital, export financing, and bonding opportunities; (3)
improve methods of providing credit assistance through electronic
lending, less documentation, centralized functions, and one-stop capital
access points; (4) reduce costs by maintaining high quality portfolio
through an improved liquidation process; and, (5) effectively implement
a loan asset sales program.
Performance Indicators.--During the past three 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, effec-
[[Page 993]]
tiveness 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.
In 1996, those figures had risen to approximately 46,000 loans totaling
about $7.3 billion. The section 504 program has also shown impressive
growth. In 1991, the SBA provided about 1,400 financings totaling nearly
$400 million. By 1996, those figures had increased to about 6,900
financings for $2.4 billion. Performance measures to be used in 1998 to
assess progress in achieving the above goals follow.
------------------------------------------------------------------------
Outputs Outcomes
------------------------------------------------------------------------
Number and dollar value of Financial viability:
guaranteed loans. higher percentages of business
Percentages of loans going skill in business after five
to underserved markets. years, and higher percentage of
Client access to SBA borrowers who fully repay loans.
services (customer satisfaction). Numbers of businesses
Percentage of loans taken created, expanded and/or
that are current. maintained.
More flexible credit Jobs created and revenue
delivery instruments developed. generated.
------------------------------------------------------------------------
Section 7(a): Reflecting an improvement of the 7(a) loan portfolio
and implementation of SBA's Liquidation Improvement Project, the
baseline (current services) 7(a) subsidy rate declines from 2.54 percent
to 2.32 percent. The budget proposes to reduce this rate to 1.80 percent
through a three-part policy initiative. First, lenders will be required
to service and liquidate all loans approved after 1997. This initiative
builds on SBA's record of success in working with lenders under the
LowDoc, Preferred Lender, and Fastrack programs, which are now serviced
and liquidated by 7(a) lenders. This initiative will also allow SBA to
focus its resources on expanding access to capital and portfolio
monitoring, rather than physically servicing and liquidating defaulted
loans. Second, SBA will establish a deferred purchase policy for all new
loans, requiring lenders to liquidate all business chattel prior to
SBA's default claim payment, reducing the Government's present value
default costs. Third, SBA will invest $18 million in portfolio
monitoring improvements. This funding will be used to recruit expertise
in lender oversight, establish financial performance goals for private
sector partners, create a database for tracking lender and portfolio
performance, and develop a management information system to provide
timely and accurate information to agency management. In combination,
these three proposals will lower the 7(a) subsidy rate from 2.32 percent
to 1.80 percent, reducing the subsidy budget authority needed to fund
the requested $8.5 billion loan level by $44.2 million. This reduction
reflects the estimated improvement in defaults and an increase in
recoveries resulting from improved monitoring of servicing and more
efficient liquidation performed by SBA lenders. The lower rate also
reflects the present value savings resulting from the deferred purchase.
Section 504: The 1998 subsidy rate reflects improved 504 loan
performance. However, this improvement is more than offset by reductions
in the estimate of recoveries on defaulted loans. Therefore, to maintain
the baseline subsidy rate at zero, the budget increases the pass-through
fee to the 1997 authorized level of .9375%.
Loan asset sales: As part of SBA's transition from loan servicing to
lender oversight, the budget proposes the sale of all direct and
defaulted business loans in FYs 1998 and 1999. (SBA disaster loans will
be sold over a three-year period.) These sales will allow SBA to focus
its limited resources on expanding access to capital rather than
servicing and liquidating a growing portfolio. The budget estimates that
SBA's business loan assets will be sold at a net gain to the Government.
Microloan Program: The Agency proposes to continue the Microloan
direct and guarantee loan programs in 1998, using carryover funding
remaining from 1997.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-1154-0-1-376 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
25.2 Other services.................... 97 95 97
41.0 Grants, subsidies, and
contributions................... 392 426 182
--------- --------- ----------
99.9 Total obligations............... 489 521 279
---------------------------------------------------------------------------
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 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
2150 General business--7(a)............ 1,905
Guaranteed loan subsidy (in percent):
2320 General business--7(a)............ -0.52
---------------------------------------------------------------------------
Business Direct Loan Financing Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4148-0-3-376 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct loans...................... 9 24 39
00.02 Interest on Treasury borrowing.... 7 8 10
--------- --------- ----------
10.00 Total obligations............... 16 32 49
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New financing authority (gross)... 15 30 50
23.95 New obligations................... -16 -32 -49
----------------------------------------------------------------------------
New financing authority (gross), detail:
67.15 Authority to borrow (indefinite).. 13 24 41
Spending authority from offsetting
collections:
68.00 Offsetting collections (cash)... 32 19 46
68.10 Change in receivables from
program account............... -1 -3 1
68.47 Portion applied to debt
reduction..................... -29 -10 -38
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 2 6 9
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 15 30 50
----------------------------------------------------------------------------
Change in unpaid obligations:
Unpaid obligations, start of year:
72.90 Obligated balance: Fund balance. 54 44 11
72.95 Receivables from program account 5 4 1
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 59 48 12
73.10 New obligations................... 16 32 49
73.20 Total financing disbursements
(gross)......................... -28 -68 -41
Unpaid obligations, end of year:
74.90 Obligated balance: Fund balance. 44 11 17
74.95 Receivables from program account 4 1 2
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 48 12 19
87.00 Total financing disbursements
(gross)......................... 28 68 41
----------------------------------------------------------------------------
[[Page 994]]
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
88.00 Federal sources: Payments from
program account............. -12 -2 -4
Non-Federal sources:
88.40 Repayments of principal, net -14 -8 -11
88.40 Interest received on loans.. -6 -9 -8
88.40 Proceeds from loan asset
sale...................... -23
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -32 -19 -46
88.95 Change in receivables from program
accounts........................ 1 3 -1
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... -16 14 3
90.00 Financing disbursements........... -4 49 -5
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4148-0-3-376 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 9 24 19
--------- --------- ----------
1150 Total direct loan obligations... 9 24 19
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 167 161 155
1231 Disbursements: Direct loan
disbursements................... 12 12 13
1251 Repayments: Repayments and
prepayments..................... -14 -14 -28
1264 Write-offs for default: Other
adjustments, net................ -4 -4 -8
--------- --------- ----------
1290 Outstanding, end of year........ 161 155 132
---------------------------------------------------------------------------
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 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Investments in US securities:
1106 Federal assets: Receivables, net 3 302 310 319
Net value of assets related to
post-1991 direct loans
receivable:
1401 Direct loans receivable, gross.. 126 120 123 127
1405 Allowance for subsidy cost (-).. -8 -53 -54 -56
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 118 67 69 71
------------ -------------- ------------ -------------
1999 Total assets.................... 121 369 379 390
LIABILITIES:
2104 Federal liabilities: Resources
payable to Treasury............. 118 369 379 390
------------ -------------- ------------ -------------
2999 Total liabilities............... 118 369 379 390
NET POSITION:
3100 Appropriated capital.............. 3
------------ -------------- ------------ -------------
3999 Total net position.............. 3
------------ -------------- ------------ -------------
4999 Total liabilities and net position 121 369 379 390
-----------------------------------------------------------------------------------------------
Business Guaranteed Loan Financing Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4149-0-3-376 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Default claims.................... 399 552 701
00.02 Payment of downward reestimate to
receipt account................. 16 188
00.03 Payment to liquidation account.... 188
00.04 Negative subsidy from loan asset
sales........................... 50
--------- --------- ----------
10.00 Total obligations............... 415 740 939
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.90 Unobligated balance available,
start of year: Fund balance..... 1,076 1,376 1,461
22.00 New financing authority (gross)... 716 826 1,017
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,792 2,202 2,478
23.95 New obligations................... -415 -740 -939
24.90 Unobligated balance available, end
of year: Fund balance........... 1,376 1,461 1,539
----------------------------------------------------------------------------
New financing authority (gross), detail:
Spending authority from offsetting
collections:
68.00 Offsetting collections (cash)... 755 826 1,037
68.10 Change in receivables from
program account............... -39 -20
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 716 826 1,017
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 716 826 1,017
----------------------------------------------------------------------------
Change in unpaid obligations:
72.95 Unpaid obligations, start of year:
Receivables from program account 125 86 86
73.10 New obligations................... 415 740 939
73.20 Total financing disbursements
(gross)......................... -455 -741 -959
74.95 Unpaid obligations, end of year:
Receivables from program account 86 86 66
87.00 Total financing disbursements
(gross)......................... 455 741 959
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
Federal sources:
88.00 Payments from program
account................... -205 -225 -179
88.00 Payment from program
account--Reestimates...... -274 -199
88.25 Interest on uninvested funds.. -36 -65 -65
Non-Federal sources:
88.40 Fees........................ -153 -169 -183
88.40 Proceeds from loan asset
sales..................... -386
88.40 Recoveries.................. -87 -168 -224
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -755 -826 -1,037
88.95 Change in receivables from program
accounts........................ 39 20
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -299 -85 -78
---------------------------------------------------------------------------
Status of Guaranteed Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4149-0-3-376 1996 actual 1997 est. 1998 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................. 10,154 10,641 11,887
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 10,154 10,641 11,887
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 20,907 24,630 28,452
2231 Disbursements of new guaranteed
loans........................... 6,773 6,955 7,143
2251 Repayments and prepayments........ -2,651 -2,723 -2,796
2261 Adjustments: Terminations for
default that result in loans
receivable...................... -399 -410 -421
--------- --------- ----------
2290 Outstanding, end of year........ 24,630 28,452 32,378
----------------------------------------------------------------------------
[[Page 995]]
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 20,193 23,282 26,455
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 393 628 870
2331 Disbursements for guaranteed
loan claims................... 399 410 421
2351 Repayments of loans receivable.. -62 -63 -65
2361 Write-offs of loans receivable.. -102 -105 -107
2364 Other adjustments, net.......... -512
--------- --------- ----------
2390 Outstanding, end of year...... 628 870 607
---------------------------------------------------------------------------
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 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:
1101 Fund balances with Treasury..... 1,258 1,257 1,291 1,326
Investments in US securities:
1106 Receivables, net.............. 55 164 168 173
Net value of assets related to
post-1991 acquired defaulted
guaranteed loans receivable:
1501 Defaulted guaranteed loans
receivable, gross............. 527 628 870 607
1502 Interest receivable............. 23 45 46 47
1505 Allowance for subsidy cost (-).. -331 -331 -340 -349
------------ -------------- ------------ -------------
1599 Net present value of assets
related to defaulted
guaranteed loans............ 219 342 576 305
------------ -------------- ------------ -------------
1999 Total assets.................... 1,532 1,763 2,035 1,804
LIABILITIES:
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 1,451 1,763 2,035 1,804
------------ -------------- ------------ -------------
2999 Total liabilities............... 1,451 1,763 2,035 1,804
NET POSITION:
3100 Appropriated capital.............. 81
------------ -------------- ------------ -------------
3999 Total net position.............. 81
------------ -------------- ------------ -------------
4999 Total liabilities and net position 1,532 1,763 2,035 1,804
-----------------------------------------------------------------------------------------------
Business Loan Fund Liquidating Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4154-0-3-376 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
Capital expenses:
00.02 Defaults on guarantee loans--... 335 327 318
00.05 Other expenses.................. 106 103 50
--------- --------- ----------
00.91 Total capital expenses........ 441 430 368
01.01 Operating expenses: Interest
expense to Treasury............. 84 70 30
--------- --------- ----------
10.00 Total obligations............... 525 500 398
----------------------------------------------------------------------------
Budgetary resources available for obligation:
Unobligated balance available, start of year:
Fund balance:
21.90 Committed..................... 1 1 1
21.90 Uncommitted................... 339 337 347
--------- --------- ----------
21.99 Total unobligated balance,
start of year............... 340 338 348
22.00 New budget authority (gross)...... 566 551 610
22.60 Redemption of debt................ -43 -42 -41
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 863 847 917
23.95 New obligations................... -525 -500 -398
Unobligated balance available, end of year:
Fund balance:
24.90 Committed..................... 1 1 1
24.90 Uncommitted................... 337 347 518
--------- --------- ----------
24.99 Total unobligated balance, end
of year....................... 338 348 519
----------------------------------------------------------------------------
New budget authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 566 551 610
----------------------------------------------------------------------------
Change in unpaid obligations:
72.90 Unpaid obligations, start of year:
Obligated balance: Fund balance. 327 389 439
73.10 New obligations................... 525 500 398
73.20 Total outlays (gross)............. -463 -450 -348
74.90 Unpaid obligations, end of year:
Obligated balance: Fund balance. 389 439 488
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 463 450 348
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
88.00 Federal sources............... -188
Non-Federal sources:
Loan repayments:
88.40 Financing programs........ -175 -171 -153
88.40 Investment programs....... -38 -37 -28
88.40 SBIC obligations.......... -6 -5
88.40 Section 503 development
obligations............. -27 -27 -26
Interest income:
88.40 Financing programs........ -123 -120 -117
88.40 Investment programs....... -50 -48 -23
88.40 Other income.............. -137 -133 -65
88.40 Section 503 Prepayments... -10 -10 -10
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -566 -551 -610
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -104 -101 -262
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4154-0-3-376 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
BUSINESS LOAN FUND, DIRECT
LOANS
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 1,675 1,352 1,050
1232 Disbursements: Purchase of loans
assets from the public.......... 152 117 90
1251 Repayments: Repayments and
prepayments..................... -214 -208 -101
1262 Adjustments: Discount on loan
asset sales to the public or
discounted...................... -439
1263 Write-offs for default: Direct
loans........................... -261 -211 -82
--------- --------- ----------
1290 Outstanding, end of year........ 1,352 1,050 518
----------------------------------------------------------------------------
SMALL BUSINESS INVESTMENT
COMPANY, DIRECT LOANS
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 6
Repayments:
1251 Repayments and prepayments...... -6
1252 Proceeds from loan asset sales
to the public or discounted...
--------- --------- ----------
1290 Outstanding, end of year........
----------------------------------------------------------------------------
SECTION 503 DEVELOPMENT
COMPANY, DIRECT LOANS
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 356 319 281
Repayments:
1251 Repayments and prepayments...... -22 -23 -20
1252 Proceeds from loan asset sales
to the public or discounted... -15 -15 -13
--------- --------- ----------
1290 Outstanding, end of year........ 319 281 248
---------------------------------------------------------------------------
[[Page 996]]
Status of Guaranteed Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4154-0-3-376 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
BUSINESS LOAN FUND, LOAN
GUARANTEES
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 7,675 6,383 5,341
2231 Disbursements of new guaranteed
loans........................... 1 1 1
2251 Repayments and prepayments........ -1,078 -896 -750
Adjustments:
2261 Terminations for default that
result in loans receivable.... -201 -135 -91
2264 Other adjustments, net.......... -14 -12 -10
--------- --------- ----------
2290 Outstanding, end of year........ 6,383 5,341 4,491
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 5,495 4,598 3,866
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 1,054 1,255 1,390
2331 Disbursements for guaranteed
loan claims................... 201 135 91
--------- --------- ----------
2390 Outstanding, end of year...... 1,255 1,390 1,481
---------------------------------------------------------------------------
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 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 170 189 210 234
0102 Expense........................... -185 149 165 184
------------ -------------- ------------ -------------
0109 Net loss.......................... -15 338 375 418
-----------------------------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 73-4154-0-3-376 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:
1101 Fund balances with Treasury..... 666 727 794 866
Investments in US securities:
1104 Agency securities, par........ 120 160 214 286
1107 Advances and prepayments...... 12 9 7 5
Non-Federal assets:
1206 Receivables, net................ 485 816 780 745
1207 Advances and prepayments........ 7 7 7 7
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:
1601 Direct loans, gross............. 2,036 1,671 1,331 766
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -1,215 -1,114 -787 -401
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 821 557 544 365
1901 Other Federal assets: Other assets 99 61 37 23
------------ -------------- ------------ -------------
1999 Total assets.................... 2,210 2,337 2,383 2,297
LIABILITIES:
Federal liabilities:
2101 Accounts payable................ 1,445 1,667 1,670 1,610
2102 Interest payable................ 156 94 96 96
Debt:
2103 Debt to the FFB............... 361 318 325 327
2103 SBIC and development company
participation certificates.. 7 7 7
Non-Federal liabilities:
2201 Accounts payable................ 11 15 15 15
2204 Liabilities for loan guarantees. 200 71 72 73
Other:
2207 Unearned revenue (advances)... 37
2207 Other Liabilities............. 165 168 169
------------ -------------- ------------ -------------
2999 Total liabilities............... 2,210 2,337 2,353 2,297
------------ -------------- ------------ -------------
4999 Total liabilities and net position 2,210 2,337 2,353 2,297
-----------------------------------------------------------------------------------------------
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4154-0-3-376 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
33.0 Investments and loans............. 441 430 368
43.0 Interest and dividends............ 84 70 30
99.0 Subtotal, reimbursable obligations 525 500 398
--------- --------- ----------
99.9 Total obligations............... 525 500 398
---------------------------------------------------------------------------
Business Loan Fund Liquidating Account
(Legislative proposal, subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4154-4-3-376 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.90 Unobligated balance available,
start of year: Uncommitted......
23.95 New obligations...................
24.90 Unobligated balance available, end
of year: Uncommitted............ -1
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
---------------------------------------------------------------------------
Disaster Loans Program Account
[For the cost of direct loans authorized by section 7(b) of the
Small Business Act, as amended, $105,432,000, to remain available until
expended: Provided, That such costs, including the cost of modifying
such loans, shall be as defined in section 502 of the Congressional
Budget Act of 1974.]
[In addition, for] For administrative expenses to carry out the
direct loan program, [$86,500,000, including not to exceed $500,000 for
the Office of Inspector General of the Small Business Administration for
audits and reviews of disaster loans and the disaster loan program]
$173,200,000, [and said sums] which may be transferred to and merged
with appropriations for Salaries and Expenses [and Office of Inspector
General]. (Departments of Commerce, Justice, and State, the Judiciary,
and Related Agencies Appropriations Act, 1997.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-1152-0-1-453 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct loan subsidy............... 243 150 90
00.09 Administrative expenses........... 164 177 173
--------- --------- ----------
10.00 Total obligations............... 407 327 263
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested
balance......................... 92 83 83
22.00 New budget authority (gross)...... 331 327 173
22.10 Resources available from
recoveries of prior year
obligations..................... 67 35
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 490 410 291
23.95 New obligations................... -407 -327 -263
24.40 Unobligated balance available, end
of year: Uninvested balance..... 83 83 28
----------------------------------------------------------------------------
New budget authority (gross), detail:
40.00 Appropriation..................... 331 327 173
----------------------------------------------------------------------------
[[Page 997]]
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Appropriation 251 157 173
73.10 New obligations................... 407 327 263
73.20 Total outlays (gross)............. -434 -311 -263
73.45 Adjustments in unexpired accounts. -67 -35
74.40 Unpaid obligations, end of year:
Obligated balance: Appropriation 157 173 138
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 228 232 133
86.93 Outlays from current balances..... 206 79 130
--------- --------- ----------
87.00 Total outlays (gross)........... 434 311 263
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 331 327 173
90.00 Outlays........................... 434 311 263
---------------------------------------------------------------------------
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 73-1152-0-1-453 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Direct Disaster Loans............. 867 747 785
--------- --------- ----------
1159 Total direct loan levels........ 867 747 785
Direct loan subsidy (in percent):
1320 Disaster subsidy rate............. 0.00 0.00 0.00
--------- --------- ----------
1329 Weighted average subsidy rate... 28.08 20.02 11.44
Direct loan subsidy budget authority:
1330 Disaster subsidy budget authority. 243 150 90
--------- --------- ----------
1339 Total subsidy budget authority.. 243 150 90
Direct loan subsidy outlays:
1340 Disaster subsidy outlays.......... 270 134 90
--------- --------- ----------
1349 Total subsidy outlays........... 270 134 90
----------------------------------------------------------------------------
Administrative expense data:
3510 Budget authority.................. 164 177 173
3590 Outlays from new authority........ 164 177 173
---------------------------------------------------------------------------
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. 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 over 1.3
million disaster victims by providing more than $24.1 billion in
disaster assistance. Over 90 percent has been to borrowers that
otherwise would not have been able to rebuild. During 1996 alone, SBA
approved nearly 38,000 disaster loans for an amount of almost $1
billion.
Program Performance and Policy Goals.--The SBA program performance
and policy goals are: 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; 4) simplify and streamline the loan-making process by
re-engineering forms, procedures and processes; and, 5) effectively
implement the proposed asset sales program.
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 to be
used in 1998 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
------------------------------------------------------------------------
1998 Proposals
Under current law, interest rates fluctuate according to statutory
formulas: a lower rate, not to exceed four percent, is available to
applicants without credit available elsewhere; a higher rate, not to
exceed eight percent, is charged to borrowers who have credit available
elsewhere. To reduce the subsidy in this program, the budget proposes to
increase the interest rate for borrowers without credit available
elsewhere to the cost to the U.S. Treasury for securities of comparable
maturity. For borrowers with access to credit elsewhere, the interest
rate would be pegged above the Treasury rate. This change would reduce
the subsidy from 23.46 percent to 11.44 percent, enabling more loans to
be made with the same amount of budget authority. Baseline loan levels
would increase from $383 million to $785 million, a difference of $402
million. In the schedules below, the effects of the legislative proposal
should not be added to the regular budget schedules.
Historically, SBA has approved approximately $785 million in loans
for disaster relief annually, excluding the effect of the 1994
Northridge Earthquake. No appropriation of loan subsidy budget authority
is requested for the Disaster Loans Program Account for 1998. The 1998
loan program will be fully funded from anticipated carryforward balances
provided the recommended revisions to the disaster loan interest rates
are enacted.
This budget requests $5.8 billion in contingent funding for FY 1998,
the 1991-1997 average emergency spending under the BEA. This fund will
be available to this and other accounts as the need arises. Please see
the Emergency Requirements for Natural Disasters account in the Funds
Appropriated to the President Chapter for more detailed information. The
requested amount for future years will be based on average emergency
funding under the BEA.
The base programs will have access to the proposed contingency fund
once all available appropriations in the affected account/accounts have
been obligated, and a Presidential decision has been made to make
additional funds available. The fund is meant to be flexible enough to
respond to a variety of disasters and thus does not reserve or dedicate
specific
[[Page 998]]
amounts within the total for the eligible programs. The flexibility of
the fund is essential to meet the full range of disaster funding
requirements.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-1152-0-1-453 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
41.0 Direct obligations: Grants,
subsidies, and contributions.... 243 150 90
99.0 Reimbursable obligations:
Subtotal, reimbursable
obligations..................... 164 177 173
--------- --------- ----------
99.9 Total obligations............... 407 327 263
---------------------------------------------------------------------------
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 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Direct Disaster Loans............. 402
--------- --------- ----------
1159 Total direct loan levels........ 402
---------------------------------------------------------------------------
Disaster Direct Loan Financing Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4150-0-3-453 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct loans...................... 867 747 785
00.02 Interest on Treasury borrowing.... 296 396 459
00.03 Purchase of loans from liquidating 100
--------- --------- ----------
10.00 Total obligations............... 1,163 1,143 1,344
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New financing authority (gross)... 1,163 1,143 1,345
23.95 New obligations................... -1,163 -1,143 -1,344
----------------------------------------------------------------------------
New financing authority (gross), detail:
67.15 Authority to borrow (indefinite).. 1,311 1,436 1,643
Spending authority from offsetting
collections:
Offsetting collections (cash):
68.00 Offsetting collections (cash). 807 760 728
68.00 Proceeds from loan asset sales
(cash)...................... 100
68.10 Change in receivables from
program account............... -86 -47 -29
68.47 Portion applied to debt
reduction (-)................. -869 -1,006 -1,097
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... -148 -293 -298
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 1,163 1,143 1,345
----------------------------------------------------------------------------
Change in unpaid obligations:
Unpaid obligations, start of year:
72.90 Obligated balance: Fund balance:
Unpaid obligations............ 1,870 2,053 1,824
72.95 Receivables from program account 207 121 74
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 2,077 2,174 1,898
73.10 New obligations................... 1,163 1,143 1,344
73.20 Total financing disbursements
(gross)......................... -1,066 -1,419 -1,422
Unpaid obligations, end of year:
74.90 Obligated balance: Fund balance:
Unpaid obligations............ 2,053 1,824 1,775
74.95 Receivables from program account 121 74 45
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 2,174 1,898 1,820
87.00 Total financing disbursements
(gross)......................... 1,066 1,419 1,422
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
88.00 Payments from program account. -243 -150 -90
Non-Federal sources:
88.40 Repayments of principal, net -100
88.40 Repayments of principal, net -88 -120 -154
88.40 Interest received on loans.. -476 -490 -484
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -807 -760 -828
88.95 Change in receivables from program
accounts........................ 86 47 29
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... 442 430 546
90.00 Financing disbursements........... 259 659 594
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4150-0-3-453 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 867 747 785
--------- --------- ----------
1150 Total direct loan obligations... 867 747 785
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 6,748 7,227 7,391
1231 Disbursements: Direct loan
disbursements................... 946 874 638
Repayments:
1251 Repayments and prepayments...... -408 -610 -638
1252 Proceeds from loan asset sales
to the public or discounted...
1264 Write-offs for default: Other
adjustments, net................ -59 -100 -106
--------- --------- ----------
1290 Outstanding, end of year........ 7,227 7,391 7,285
---------------------------------------------------------------------------
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 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Investments in US securities:
1106 Federal assets: Program account. 466 227 232 93
Net value of assets related to
post-1991 direct loans
receivable:
1401 Direct loans receivable, gross.. 6,748 7,227 7,389 7,278
1405 Allowance for subsidy cost (-).. -414 -248 -308 -142
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 6,334 6,979 7,081 7,136
------------ -------------- ------------ -------------
1999 Total assets.................... 6,800 7,206 7,313 7,229
LIABILITIES:
2104 Federal liabilities: Resources
payable to Treasury............. 6,334 6,979 7,170 7,135
------------ -------------- ------------ -------------
2999 Total liabilities............... 6,334 6,979 7,170 7,135
NET POSITION:
3100 Appropriated capital.............. 466 227 143 94
------------ -------------- ------------ -------------
3999 Total net position.............. 466 227 143 94
------------ -------------- ------------ -------------
4999 Total liabilities and net position 6,800 7,206 7,313 7,229
-----------------------------------------------------------------------------------------------
[[Page 999]]
Disaster Loans Direct Loan Financing Account
(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4150-2-3-453 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct loans...................... 402
00.02 Interest payment to Treasury...... 1
--------- --------- ----------
10.00 Total obligations............... 403
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New financing authority (gross)... 403
23.95 New obligations................... -403
----------------------------------------------------------------------------
New financing authority (gross), detail:
67.15 Authority to borrow (indefinite).. 403
Spending authority from offsetting
collections:
68.00 Offsetting collections (cash)... 17
68.47 Portion applied to debt
reduction (-)................. -17
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total).....................
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 403
----------------------------------------------------------------------------
Change in unpaid obligations:
73.10 New obligations................... 403
73.20 Total financing disbursements
(gross)......................... -403
87.00 Total financing disbursements
(gross)......................... 403
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
Non-Federal sources:
88.40 Repayments of principal, net -2
88.40 Interest received on loans.. -15
88.45 Offsetting governmental
collections.................
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -17
88.95 Change in receivables from program
accounts........................
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... 386
90.00 Financing disbursements........... 386
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4150-2-3-453 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1131 Direct loan obligations exempt
from limitation................. 403
--------- --------- ----------
1150 Total direct loan obligations... 403
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........
1231 Disbursements: Direct loan
disbursements................... 403
1251 Repayments: Repayments and
prepayments..................... -17
1264 Write-offs for default: Other
adjustments, net................ -16
--------- --------- ----------
1290 Outstanding, end of year........ 370
---------------------------------------------------------------------------
Disaster Loan Fund Liquidating Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4153-0-3-453 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
01.01 Interest expense to Treasury...... 78 70 63
01.03 Other expenses.................... 13 10 8
--------- --------- ----------
10.00 Total obligations............... 91 80 71
----------------------------------------------------------------------------
Budgetary resources available for obligation:
Unobligated balance available, start of year:
Fund balance:
21.90 Committed..................... 4 2 4
21.90 Uncommitted................... 207 175 144
--------- --------- ----------
21.99 Total unobligated balance,
start of year............... 211 177 148
22.00 New budget authority (gross)...... 307 269 345
22.40 Capital transfer to general fund.. -249 -218 -215
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 269 228 278
23.95 New obligations................... -91 -80 -71
Unobligated balance available, end of year:
Fund balance:
24.90 Committed..................... 2 4 2
24.90 Uncommitted................... 175 144 205
--------- --------- ----------
24.99 Total unobligated balance, end
of year....................... 177 148 207
----------------------------------------------------------------------------
New budget authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 307 269 345
----------------------------------------------------------------------------
Change in unpaid obligations:
72.90 Unpaid obligations, start of year:
Obligated balance: Fund balance. 93 79 159
73.10 New obligations................... 91 80 71
73.20 Total outlays (gross)............. -105
74.90 Unpaid obligations, end of year:
Obligated balance: Fund balance. 79 159 230
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 91
86.98 Outlays from permanent balances... 14
--------- --------- ----------
87.00 Total outlays (gross)........... 105
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
Non-Federal sources:
88.40 Loan repayments............. -213 -200 -186
88.40 Interest income............. -80 -60 -52
88.40 Other income................ -12 -9 -7
88.40 Recovery on Loan
Cancellations............. -2
88.40 Proceeds from loan asset
sales..................... -100
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -307 -269 -345
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -202 -269 -345
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4153-0-3-453 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 1,918 1,676 1,416
1231 Disbursements: Direct loan
disbursements...................
Repayments:
1251 Repayments and prepayments...... -213 -220 -186
1252 Proceeds from loan asset sales
to the public or discounted... -100
1263 Write-offs for default: Direct
loans........................... -29 -40 -34
--------- --------- ----------
1290 Outstanding, end of year........ 1,676 1,416 1,096
---------------------------------------------------------------------------
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 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 93 93 78 103
0102 Expense........................... -102 -102 -83 -74
------------ -------------- ------------ -------------
0109 Net income or loss (-)............ -9 -9 -5 29
-----------------------------------------------------------------------------------------------
[[Page 1000]]
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 73-4153-0-3-453 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 304 256 269 255
1206 Non-Federal assets: Receivables,
net............................. 112 111 78 69
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:
1601 Direct loans, gross............. 1,918 1,677 1,415 1,096
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -154 -129 -160 -135
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 1,764 1,548 1,255 961
Other Federal assets:
1801 Cash and other monetary assets.. 1 1 1
1803 Property, plant and equipment,
net........................... 6 5
------------ -------------- ------------ -------------
1999 Total assets.................... 2,187 1,920 1,603 1,286
LIABILITIES:
Federal liabilities:
2102 Interest payable................ 89 78 70 63
2104 Resources payable to Treasury...
2201 Non-Federal liabilities: Accounts
payable......................... 2,098 1,842 1,533 1,322
------------ -------------- ------------ -------------
2999 Total liabilities............... 2,187 1,920 1,603 1,385
------------ -------------- ------------ -------------
4999 Total liabilities and net position 2,187 1,920 1,603 1,385
-----------------------------------------------------------------------------------------------
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4153-0-3-453 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
33.0 Investments and loans............. 13 10 8
43.0 Interest and dividends............ 78 70 63
99.0 Subtotal, reimbursable obligations 91 80 71
--------- --------- ----------
99.9 Total obligations............... 91 80 71
---------------------------------------------------------------------------
Pollution Control Equipment Fund Liquidating Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4147-0-3-376 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Obligations by program activity:
10.00 Total obligations (object class
42.0)........................... 1 3 3
----------------------------------------------------------------------------
Budgetary resources available for obligation:
Unobligated balance available, start of year:
Fund balance:
21.90 Committed..................... 11 14 9
21.90 Uncommitted................... 3 -1 3
--------- --------- ----------
21.99 Total unobligated balance,
start of year............... 14 13 12
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 14 13 12
23.95 New obligations................... -1 -3 -3
Unobligated balance available, end of year:
Fund balance:
24.90 Committed..................... 14 9 7
24.90 Uncommitted................... -1 3 3
--------- --------- ----------
24.99 Total unobligated balance, end
of year....................... 13 12 10
----------------------------------------------------------------------------
Change in unpaid obligations:
73.10 New obligations................... 1 3 3
73.20 Total outlays (gross)............. -1 -3 -3
----------------------------------------------------------------------------
Outlays (gross), detail:
86.98 Outlays from permanent balances... 1 3 3
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 3 3
---------------------------------------------------------------------------
Status of Guaranteed Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4147-0-3-376 1996 actual 1997 est. 1998 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 100 86 73
Adjustments:
2261 Terminations for default that
result in loans receivable.... -1 -1
2264 Other adjustments, net.......... -14 -12 -10
--------- --------- ----------
2290 Outstanding, end of year........ 86 73 62
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 86 73 62
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 46 47 43
2331 Disbursements for guaranteed
loan claims................... 1 1 1
2351 Repayments of loans receivable.. -5 -6
--------- --------- ----------
2390 Outstanding, end of year...... 47 43 38
---------------------------------------------------------------------------
Public Law 94-305 established this fund to alleviate the adverse
impact of pollution regulations on small businesses. As a result of the
elimination of tax exempt financing associated with the Pollution
Control Guaranteed program, no new activity is anticipated for this
program.
During 1992, the Small Business Administration started the process
of redeeming a large number of outstanding bonds on which it has taken
over loan payments. Most of these targeted bonds are ten years old and
voluntary redemption is now viable under the bond documents. Redemption
of these obligations would preclude the SBA from paying excessive
interest over the next ten years.
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 73-4147-0-3-376 1995 actual 1996 actual 1997 est. 1998 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 14 13 12 10
1206 Non-Federal assets: Receivables,
net............................. 9 9 10 9
1701 Net value of assets related to
pre-1992 direct loans receivable
and acquired defaulted
guaranteed loans receivable:
Defaulted guaranteed loans,
gross........................... 6 6 7 8
------------ -------------- ------------ -------------
1999 Total assets.................... 29 28 29 27
LIABILITIES:
2104 Federal liabilities: Resources
payable to Treasury............. 15 28 26 27
2201 Non-Federal liabilities: Accounts
payable.........................
------------ -------------- ------------ -------------
2999 Total liabilities............... 15 28 26 27
NET POSITION:
3100 Appropriated capital..............
3300 Cumulative results of operations..
3600 Other............................. 14 1 3 2
------------ -------------- ------------ -------------
3999 Total net position.............. 14 1 3 2
------------ -------------- ------------ -------------
4999 Total liabilities and net position 29 29 29 29
-----------------------------------------------------------------------------------------------
administrative provisions--small business administration
Sec. 504. 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: Provided, That any transfer
pursuant to this section shall be treated as a reprogramming of funds
under section 605 of this Act and shall not be available for obligation
or expenditure except in compliance with the procedures set forth in
that section. (Departments of Commerce, Justice, and State, the
Judiciary, and Related Agencies Appropriations Act, 1997.)