[Appendix]
[Detailed Budget Estimates by Agency]
[Small Business Administration]
[From the U.S. Government Printing Office, www.gpo.gov]
THE BUDGET FOR FISCAL YEAR 1999
[[Page 1011]]
SMALL BUSINESS ADMINISTRATION
The budget provides $724 million in new budget authority for the
Small Business Administration (SBA). When combined with anticipated
carryover and decreased loan subsidy costs, this funding level will
allow SBA to continue to expand assistance to small businesses at a
reduced cost to the Federal taxpayer.
In 1999, SBA proposes to continue to increase its reliance on its
private sector partners. Two ongoing initiatives will allow SBA to
complete its transition from in-house servicing and liquidating of its
$45 billion business and disaster 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 1997. Second,
SBA will sell its approximately $10 billion portfolio of defaulted
guarantees and direct loans beginning in 1998. These initiatives 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 underserved small businesses, and provide education and training.
As part of SBA's goal of stretching taxpayers' dollars, the budget
assumes that disaster loan borrowers pay an interest rate equal to the
rate on Treasury securities of comparable maturity, capped at 6 percent.
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, [$254,200,000, of which: $3,000,000 shall be available for a
grant to Lackawanna County, Pennsylvania for infrastructure development
to assist in small business development; $3,000,000 shall be available
for a grant to the NTTC at Wheeling Jesuit University to continue the
outreach program to assist small business development; $2,000,000 shall
be for a grant to Western Carolina University to develop a facility to
assist in small business and rural economic development; $1,500,000
shall be available for a grant to the State University of New York to
develop a facility and operate the Institute of Entrepreneurship for
small business and workforce development; $1,000,000 shall be for a
grant for the Genesis Small Business Incubator Facility, Fayetteville,
Arkansas; 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] $281,100,000:
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 $75,800,000 shall be available to fund grants for
performance in fiscal year [1998 or fiscal year 1999] 1999 or fiscal
year 2000 as authorized by section 21 of the Small Business Act, as
amended. (Departments of Commerce, Justice, and State, the Judiciary,
and Related Agencies Appropriations Act, 1998.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-0100-0-1-376 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Government contracting and
minority enterprise development. 21 24 33
00.02 Disaster assistance............... 113 108 116
00.03 Economic development.............. 125
00.04 Management and administration..... 75 91 86
00.05 Executive direction............... 2 3 3
00.06 General counsel................... 5 5 6
00.07 Congressional and legislative
affairs......................... 1 1 1
00.08 Hearings and appeals.............. 1 1 1
00.09 Communications and publications... 2 3 3
00.11 Advocacy.......................... 5 4 5
00.12 Field operations.................. 4 5 5
00.13 Equal employment opportunity and
civil rights compliance......... 2 2 2
00.14 Regional and district offices..... 123 126 130
00.15 Chief financial officer........... 9 10 13
00.16 Capital Access.................... 37 46
00.17 Entrepreneurial development....... 93 94
00.18 Small disadvantaged businesses.... 12 12
--------- --------- ----------
10.00 Total obligations............... 488 525 556
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 1 1
22.00 New budget authority (gross)...... 493 525 556
22.30 Unobligated balance expiring...... -4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 489 526 557
23.95 New obligations................... -488 -525 -556
24.40 Unobligated balance available, end
of year: Uninvested............. 1 1
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation................... 235 254 281
Permanent:
68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 258 271 275
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 493 525 556
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 182 171 175
73.10 New obligations................... 488 525 556
73.20 Total outlays (gross)............. -495 -517 -549
73.40 Adjustments in expired accounts... -4 -4 -4
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 171 175 177
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 180 194 215
86.93 Outlays from current balances..... 55 54 60
86.97 Outlays from new permanent
authority....................... 258 271 275
--------- --------- ----------
87.00 Total outlays (gross)........... 495 517 549
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
Federal sources:
88.00 Payments from business loan
program account........... -94 -111 -109
88.00 Payments from disaster loan
program account........... -113 -158 -166
88.00 Reprogramming of disaster
loan subsidy.............. -50
88.40 Non-Federal sources........... -1 -2
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -258 -271 -275
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 235 254 281
90.00 Outlays........................... 237 246 274
---------------------------------------------------------------------------
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:
[[Page 1012]]
Capital Access.--The Associate Deputy Administrator (ADA) for this
function exercises direction over the following SBA program offices:
Financial Assistance; Surety Bond Guarantees; Investment; and
International Trade.
These offices are responsible for the administration of all SBA
credit and international trade and lending programs. In 1998, SBA plans
to continue providing business development and financial assistance for
small business exporters through U.S. Export Assistance Centers. In
addition, through special programs such as LowDoc, FASTRAK, Microloan,
and the Export Working Capital Programs (EWCP), SBA is 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.
Entrepreneurial Development.--The Associate Deputy Administrator
(ADA) for this function exercises direction over the following SBA
program offices: Women's Business Ownership; Small Business Development
Centers; Veteran's Affairs; Native American Affairs; and, Business
Initiatives which includes the Service Corps of Retired Executives.
These programs provide outreach and technical assistance to small
business communities, especially women, Veterans, and minorities.
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 and Federal research and development.
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 for securities of
comparable maturities, capped at six percent.
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;
(4) monitor agency compliance with the Regulatory Flexibility Act (RFA),
as amended by the Small Business Regulatory Enforcement Fairness Act
(SBREFA); and (5) appear as ``amicus'' in appeals arising from final
agency regulatory actions, as appropriate.
Program Performance
Small Business Development Centers (SBDCs).--The SBDCs provide long
term counseling to small businesses at about 1,100 locations in 50
states. In 1997, more than 600,000 customers were helped, of which
roughly 40 percent were women and 17 percent were minorities. For 1999,
the budget proposes $75.8 million.
Service Corps of Retired Executives (SCORE).--Using one-on-one
counseling and workshops, SCORE reaches about 293,000 business owners
annually using approximately 12,500 counselors through approximately 400
chapters located across the country. Counseling costs to the Government
are less than $3 per hour. For 1999, the budget proposes a funding level
of $3.5 million for this program. For 1999, the budget proposes $9.5
million for 7(j) assistance, to assist 8(a) firms, Native American
communities, Alaskan villages, and other economically distressed areas.
Minority Enterprise Development Program.--This program provides
business development assistance and Federal contracting opportunities to
approximately 6,000 firms. In 1997, over 28,700 contracting actions were
awarded to small disadvantaged businesses under the agency's 8(a)
program, amounting to more than $6.3 billion in loans.
Microloan Technical Assistance.--The Microloan Program technical
assistance component helps small businesses gain access to non-SBA loans
and assists SBA's microloan program by providing on-going management
advice and counseling. The program also helps support the
Administration's initiative to help individuals receiving welfare
assistance move 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.
Women's Business Centers.--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
1997, 63 Women's Business Centers were operating in 36 states,
Washington, DC, and Puerto Rico. Each offers financial, management,
marketing and technical assistance to current and potential women
business owners. The 1999 budget request includes $9 million for this
program 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
Women's Business Centers), and a virtual demonstration site on the
Internet, called the Online Women's Business Center, 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 1999,
the budget proposes $500 thousand for this program.
Native American Affairs.--This program supports the economic
development needs of reservation communities. In 1997, over 385 loans
were made to Native Americans under the agency's 7(a) program, amounting
to more than $72 million in loans.
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 Urban Empowerment Zone, Enterprise Community, and Rural Economic Area
Partnership communities. The objectives of these programs are to
stimulate and sustain economic development in these economically
distressed and underserved areas. The OSCS are a delivery mechanism for
[[Page 1013]]
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. For
1999, the Budget proposes $3.1 million.
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, 1997, more than one and three-quarter million connections to
SBA Online were logged, and more than 120,000 individuals used the
system on a regular basis.
Performance Goals
Program and Policy Goals under the GPRA.--President Clinton has made
small business formation and growth an essential part of his national
economic plan. The Small Business Administration has focused on the
following five program and policy goals as part of the plan: (1)
increase opportunities for small businesses to succeed, including
increasing access to capital and business development; (2) transform the
SBA into a 21st century leading edge financial institution; (3) help
communities and families recover from disasters; (4) lead small business
participation in welfare-to-work; and (5) serve as a voice for America's
small businesses.
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 plans 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.''
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-0100-0-1-376 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Personnel compensation:
11.1 Full-time permanent............. 146 154 160
11.3 Other than full-time permanent.. 7 7 7
11.5 Other personnel compensation.... 5 5 5
--------- --------- ----------
11.9 Total personnel compensation.. 158 166 172
12.1 Civilian personnel benefits....... 35 43 44
21.0 Travel and transportation of
persons......................... 6 5 5
22.0 Transportation of things.......... 1 1 1
23.1 Rental payments to GSA............ 23 26 28
23.3 Communications, utilities, and
miscellaneous charges........... 12 9 9
24.0 Printing and reproduction......... 1 1 1
25.2 Other services.................... 31 35 50
26.0 Supplies and materials............ 1 1 1
31.0 Equipment......................... 1 1 1
41.0 Grants, subsidies, and
contributions................... 105 117 116
Undistributed:
92.0 Undistributed................... 12 12
92.0 Undistributed (disaster loan
making)....................... 92 83 91
92.0 Undistributed (disaster loan
servicing).................... 22 25 25
--------- --------- ----------
99.9 Total obligations............... 488 525 556
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 73-0100-0-1-376 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 4,422 4,578 4,822
---------------------------------------------------------------------------
Note.--The personnel summary includes regular (non-disaster) full-
time equivalents (FTEs) of 2,964, 3,307, and 3,434 in 1997, 1998, and
1999 respectively.
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),
[$10,000,000] $11,300,000. (Departments of Commerce, Justice, and State,
the Judiciary, and Related Agencies Appropriations Act, 1998.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-0200-0-1-376 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Management and counsel............ 2 2 2
00.02 Audit............................. 3 3 3
00.03 Investigations.................... 4 5 5
00.04 Disaster.......................... 1 1 1
--------- --------- ----------
10.00 Total obligations............... 10 11 11
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 1 1
22.00 New budget authority (gross)...... 10 10 11
--------- --------- ----------
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............. 1
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation................... 9 10 11
Permanent:
68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 1 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 10 11 11
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 1 2
73.10 New obligations................... 10 11 11
73.20 Total outlays (gross)............. -11 -9 -11
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 2 2
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 8 9 10
86.93 Outlays from current balances..... 2 1
86.97 Outlays from new permanent
authority....................... 1
--------- --------- ----------
87.00 Total outlays (gross)........... 11 9 11
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.00 Offsetting collections (cash)
from: Federal sources......... -1 -1
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 9 9 11
90.00 Outlays........................... 10 8 11
---------------------------------------------------------------------------
This appropriation provides funds for agency-wide audit,
investigative, and inspection/evaluative functions to identify and
recommend corrections of management or program defi-
[[Page 1014]]
ciencies 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 1999 budget requests $11.3 million to support critical oversight
of SBA's business loan portfolio 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 demonstrate a high rate of return on
invested funds.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-0200-0-1-376 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 8 9 9
12.1 Civilian personnel benefits....... 1 2 2
92.0 Undistributed..................... 1
--------- --------- ----------
99.9 Total obligations............... 10 11 11
---------------------------------------------------------------------------
Personnel Summary
----------------------------------------------------------------------------
Identification code 73-0200-0-1-376 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
1001 Total compensable workyears: Full-
time equivalent employment...... 110 112 116
---------------------------------------------------------------------------
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,
[$3,500,000] $3,300,000, 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, 1998.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4156-0-3-376 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct program activity........... 2 2
09.01 Reimbursable obligations.......... 9 11 10
--------- --------- ----------
10.00 Total obligations............... 11 13 10
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 1 2 4
22.00 New budget authority (gross)...... 12 15 15
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 13 17 19
23.95 New obligations................... -11 -13 -10
24.40 Unobligated balance available, end
of year: Uninvested............. 2 4 9
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation................... 4 4 3
Permanent:
68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 8 11 12
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 12 15 15
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 41 40 40
73.10 New obligations................... 11 13 10
73.20 Total outlays (gross)............. -12 -13 -10
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 40 40 40
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 4 4 3
86.97 Outlays from new permanent
authority....................... 8 9 7
--------- --------- ----------
87.00 Total outlays (gross)........... 12 13 10
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
88.40 Offsetting collections (cash)
from: Non-Federal sources..... -8 -11 -12
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 4 4 3
90.00 Outlays........................... 4 2 -2
---------------------------------------------------------------------------
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 1999, 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 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 16 12 21 21
0102 Expense........................... -16 -12 -16 -16
------------ -------------- ------------ -------------
0109 Net loss.......................... 5 5
-----------------------------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 73-4156-0-3-376 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 43 42 43 43
1206 Non-Federal assets: Receivables,
net............................. 2 2
------------ -------------- ------------ -------------
1999 Total assets.................... 43 42 45 45
LIABILITIES:
2201 Non-Federal liabilities: Accounts
payable......................... 41 40 36 36
------------ -------------- ------------ -------------
2999 Total liabilities............... 41 40 36 36
NET POSITION:
3100 Appropriated capital.............. 321 325 326 326
3300 Cumulative results of operations.. -320 -323 -317 -317
------------ -------------- ------------ -------------
3999 Total net position.............. 1 2 9 9
------------ -------------- ------------ -------------
4999 Total liabilities and net position 42 42 45 45
-----------------------------------------------------------------------------------------------
Credit accounts:
Business Loans Program Account
For the cost of direct loans, $5,724,000; to be available until
expended, and for [For] the cost of guaranteed loans, [$181,232,000]
$163,000,000, as authorized by 15 U.S.C. 631 note, of which $45,000,000
shall remain available until September 30, [1999] 2000: 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 [1998] 1999, 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]
$3,000,000,000[: Provided further, That during fiscal year 1998,
commitments for general business loans authorized under section 7(a) of
the Small Business Act, as amended, shall not exceed $10,000,000,000
without prior notification of the Commit-
[[Page 1015]]
tees on Appropriations of the House of Representatives and Senate in
accordance with section 605 of this Act].
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, 1998.)
Unavailable Collections (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-1154-0-1-376 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Balance, start of year:
01.99 Balance, start of year............ 16 495
Receipts:
02.01 Business loan program downward
reestimate of subsidy........... 16 479 44
--------- --------- ----------
04.00 Total: Balances and collections... 16 495 539
07.99 Total balance, end of year........ 16 495 539
---------------------------------------------------------------------------
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-1154-0-1-376 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct loan subsidy............... 3 2 6
00.02 Guaranteed loan subsidy........... 186 221 176
00.07 Reestimate of loan guarantee
subsidy......................... 280
00.08 Interest on reestimates of loan
guarantee subsidy............... 23
00.09 Administrative expenses........... 94 94 94
00.10 Microloan grants (in S&E)......... 2
--------- --------- ----------
10.00 Total obligations............... 283 622 276
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 62 57 13
22.00 New budget authority (gross)...... 279 578 263
22.30 Unobligated balance expiring...... -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 340 635 276
23.95 New obligations................... -283 -622 -276
24.40 Unobligated balance available, end
of year: Uninvested............. 57 13
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation................... 279 275 263
Permanent:
60.05 Appropriation (indefinite)...... 303
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 279 578 263
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 93 118 162
73.10 New obligations................... 283 622 276
73.20 Total outlays (gross)............. -258 -578 -269
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 118 162 169
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 175 173 166
86.93 Outlays from current balances..... 83 104 102
86.97 Outlays from new permanent
authority....................... 303
--------- --------- ----------
87.00 Total outlays (gross)........... 258 578 269
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority.................. 279 578 263
90.00 Outlays........................... 258 578 269
---------------------------------------------------------------------------
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 73-1154-0-1-376 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Micro loans....................... 7 29 60
--------- --------- ----------
1159 Total direct loan levels........ 7 29 60
Direct loan subsidy (in percent):
1320 Micro loans....................... 8.86 10.31 9.54
--------- --------- ----------
1329 Weighted average subsidy rate... 8.86 10.31 9.54
Direct loan subsidy budget authority:
1330 Micro loans....................... 1 3 6
--------- --------- ----------
1339 Total subsidy budget authority.. 1 3 6
Direct loan subsidy outlays:
1340 Micro loans....................... 1 1 3
--------- --------- ----------
1349 Total subsidy outlays........... 1 1 3
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
2150 General business--7(a)............ 8,956 9,190 11,007
2150 General business--7(a) DELTA...... 31 60 102
2150 Section 504....................... 1,417 3,000 3,000
2150 Section 504 DELTA................. 3 27 18
2150 SBIC debentures................... 139 446 546
2150 SBIC participating securities..... 234 526 550
2150 Micro loan guarantees............. 3 10 12
--------- --------- ----------
2159 Total loan guarantee levels..... 10,783 13,259 15,235
Guaranteed loan subsidy (in percent):
2320 General business--7(a)............ 1.93 2.14 1.39
2320 General business--7(a) DELTA...... 3.47 3.36 2.08
2320 Section 504....................... 0.00 0.00 0.00
2320 Section 504 DELTA................. 1.01 0.72 1.29
2320 SBIC debentures................... 3.19 1.94 1.38
2320 SBIC participating securities..... 3.29 2.20 2.19
2320 Micro loan guarantees............. 8.21 8.15 7.97
--------- --------- ----------
2329 Weighted average subsidy rate... 2.12 1.51 1.51
Guaranteed loan subsidy budget authority:
2330 General business--7(a)............ 173 197 153
2330 General business--7(a) DELTA...... 1 2 2
2330 Section 504 DELTA.................
2330 SBIC debentures................... 4 9 8
2330 SBIC participating securities..... 8 12 12
2330 Micro loan guarantees............. 1 1
--------- --------- ----------
2339 Total subsidy budget authority.. 186 221 176
Guaranteed loan subsidy outlays:
2340 General business--7(a)............ 173 186 173
2340 General business--7(a) DELTA...... 1 5 2
2340 Section 504.......................
2340 Section 504 DELTA.................
2340 SBIC debentures................... 4 7 6
2340 SBIC participating securities..... 7 9 8
2340 Micro loan guarantees............. 1 1
--------- --------- ----------
2349 Total subsidy outlays........... 185 208 190
---------------------------------------------------------------------------
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 loan program
in 1999.
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.
[[Page 1016]]
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.
Program Performance
Program performance and policy goals.--SBA has the following program
performance and policy objectives to support its first GPRA goal of
increasing small business opportunities to succeed: (1) focusing lending
on ``traditionally under-served'' small businesses; (2) offering
specialized financing, such as venture capital, export financing, and
bonding opportunities; (3) improving methods of providing credit
assistance through electronic lending, less documentation, centralized
functions, and one-stop capital access points; (4) reducing costs by
maintaining a high quality portfolio through an improved liquidation
process; and, (5) effectively implementing 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 of SBA's districts, 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- 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 1992, SBA
made or guaranteed approximately 24,000 loans totaling about $5.9
billion. In 1997, the SBA approved approximately 45,000 loans totaling
about $9.5 billion. The section 504 program has also shown impressive
growth. In 1992, the SBA provided about 2,000 financings totaling nearly
$560 million. By 1997, those figures had increased to about 6,900
financings for $1.4 billion. Performance measures to be used in 1999 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 still 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 ongoing improvement of 7(a) loan portfolio
performance, SBA's Liquidation Improvement Project, and technical
refinements that improved SBA's credit subsidy model, the baseline
(current services) 7(a) subsidy rate declines from 2.19 percent to 1.39
percent. This decrease is also attributable to improved agency credit
risk analysis. The budget includes no policy changes to the 7(a) program
in 1999.
Section 504: The 1999 subsidy rate reflects further improved 504
loan performance. The current pass-through fee charged to borrowers will
be reduced from .775 to .729 to maintain the baseline subsidy rate at
zero percent.
Loan asset sales: As part of SBA's transition from loan servicing to
lender oversight, SBA will sell all direct and defaulted business loans,
and disaster loans, over the next 3 years. 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 Microloan programs were reauthorized and made
permanent by P.L. 105-135 in 1997. The Administration is requesting $6.7
million in subsidy budget authority for these programs in 1999.
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-1154-0-1-376 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
25.2 Other services.................... 94 96 94
41.0 Grants, subsidies, and
contributions................... 189 526 182
--------- --------- ----------
99.9 Total obligations............... 283 622 276
---------------------------------------------------------------------------
Business Direct Loan Financing Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4148-0-3-376 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct loans...................... 6 30 60
00.02 Interest on Treasury borrowing.... 26 28 30
--------- --------- ----------
10.00 Total obligations............... 32 58 90
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 183 260 231
22.00 New financing authority (gross)... 124 67 114
22.60 Redemption of debt................ -15 -38 -38
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 292 289 307
23.95 New obligations................... -32 -58 -90
24.40 Unobligated balance available, end
of year: Uninvested............. 260 231 217
----------------------------------------------------------------------------
New financing authority (gross), detail:
67.15 Authority to borrow (indefinite).. 68 10 40
Spending authority from offsetting
collections:
68.00 Offsetting collections (cash)... 47 54 71
68.10 Change in receivables from
program account............... 9 3 3
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 56 57 74
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 124 67 114
----------------------------------------------------------------------------
Change in unpaid obligations:
Unpaid obligations, start of year:
72.40 Obligated balance: Uninvested... 59 34 39
72.95 Receivables from program account 18 27 30
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 77 61 69
73.10 New obligations................... 32 58 90
73.20 Total financing disbursements
(gross)......................... -48 -50 -61
Unpaid obligations, end of year:
74.40 Obligated balance: Uninvested... 34 39 65
74.95 Receivables from program account 27 30 33
--------- --------- ----------
[[Page 1017]]
74.99 Total unpaid obligations, end
of year..................... 61 69 98
87.00 Total financing disbursements
(gross)......................... 48 50 61
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
88.00 Federal sources: Payments from
program account............. -8 -12 -16
88.25 Interest on uninvested funds.. -19 -20 -21
Non-Federal sources:
88.40 Repayments of principal, net -14 -15 -16
88.40 Interest received on loans.. -6 -7 -8
88.40 Proceeds from loan asset
sale...................... -10
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -47 -54 -71
88.95 Change in receivables from program
accounts........................ -9 -3 -3
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... 68 10 40
90.00 Financing disbursements........... -1 -4 -10
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4148-0-3-376 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 24 19 20
--------- --------- ----------
1150 Total direct loan obligations... 24 19 20
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 161 151 137
1231 Disbursements: Direct loan
disbursements................... 8 13 30
1251 Repayments: Repayments and
prepayments..................... -14 -15 -16
1262 Adjustments: Discount on loan
asset sales to the public or
discounted...................... -4 -60
1264 Write-offs for default: Other
adjustments, net................ -4 -8 -8
--------- --------- ----------
1290 Outstanding, end of year........ 151 137 83
---------------------------------------------------------------------------
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 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Investments in US securities:
1106 Federal assets: Receivables, net 302 310 319 319
Net value of assets related to
post-1991 direct loans
receivable:
1401 Direct loans receivable, gross.. 120 123 137 83
1405 Allowance for subsidy cost (-).. -53 -54 -56 -56
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 67 69 81 27
------------ -------------- ------------ -------------
1999 Total assets.................... 369 379 400 346
LIABILITIES:
2104 Federal liabilities: Resources
payable to Treasury............. 369 379 400 346
------------ -------------- ------------ -------------
2999 Total liabilities............... 369 379 400 346
NET POSITION:
3100 Appropriated capital..............
------------ -------------- ------------ -------------
3999 Total net position..............
------------ -------------- ------------ -------------
4999 Total liabilities and net position 369 379 400 346
-----------------------------------------------------------------------------------------------
Business Guaranteed Loan Financing Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4149-0-3-376 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Default claims.................... 396 401 401
00.02 Payment of downward reestimate to
receipt account................. 665
00.03 Payment to liquidation account.... 83 550
00.04 Negative subsidy from loan asset
sales........................... 2 44
00.05 Other Expenses.................... 42 40 40
--------- --------- ----------
10.00 Total obligations............... 438 1,191 1,035
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 1,307 1,651 1,487
22.00 New financing authority (gross)... 782 1,027 1,037
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,089 2,678 2,524
23.95 New obligations................... -438 -1,191 -1,035
24.40 Unobligated balance available, end
of year: Uninvested............. 1,651 1,487 1,489
----------------------------------------------------------------------------
New financing authority (gross), detail:
Spending authority from offsetting
collections:
68.00 Offsetting collections (cash)... 552 1,027 1,037
68.10 Change in receivables from
program account............... 230
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 782 1,027 1,037
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 782 1,027 1,037
----------------------------------------------------------------------------
Change in unpaid obligations:
Unpaid obligations, start of year:
72.40 Obligated balance: Uninvested... -51 -150 -150
72.95 Receivables from program account 126 356 356
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 75 206 206
73.10 New obligations................... 438 1,191 1,035
73.20 Total financing disbursements
(gross)......................... -307 -1,191 -1,035
Unpaid obligations, end of year:
74.40 Obligated balance: Uninvested... -150 -150 -150
74.95 Receivables from program account 356 356 356
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 206 206 206
87.00 Total financing disbursements
(gross)......................... 307 1,191 1,035
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
Federal sources:
88.00 Payments from program
account................... -187 -179 -179
88.00 Payment from program
account--Reestimates...... -293
88.25 Interest on uninvested funds.. -65 -65 -65
Non-Federal sources:
88.40 Fees........................ -243 -183 -183
88.40 Proceeds from loan asset
sales..................... -83 -386
88.40 Recoveries.................. -57 -224 -224
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -552 -1,027 -1,037
88.95 Change in receivables from program
accounts........................ -230
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -245 164 -2
---------------------------------------------------------------------------
Status of Guaranteed Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4149-0-3-376 1997 actual 1998 est. 1999 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................. 10,641 11,887 11,660
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 10,641 11,887 11,660
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 24,630 28,452 32,378
2231 Disbursements of new guaranteed
loans........................... 6,955 7,143 7,336
2251 Repayments and prepayments........ -2,723 -2,796 -2,872
[[Page 1018]]
2261 Adjustments: Terminations for
default that result in loans
receivable...................... -410 -421 -432
--------- --------- ----------
2290 Outstanding, end of year........ 28,452 32,378 36,410
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 23,282 26,455 29,713
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 628 870 1,119
2331 Disbursements for guaranteed
loan claims................... 410 421 432
2351 Repayments of loans receivable.. -63 -65 -67
2361 Write-offs of loans receivable.. -105 -107 -360
2364 Other adjustments, net.......... -440
--------- --------- ----------
2390 Outstanding, end of year...... 870 1,119 684
---------------------------------------------------------------------------
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 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:
1101 Fund balances with Treasury..... 1,257 1,291 1,326 1,326
Investments in US securities:
1106 Receivables, net.............. 164 168 173 173
Net value of assets related to
post-1991 acquired defaulted
guaranteed loans receivable:
1501 Defaulted guaranteed loans
receivable, gross............. 628 870 1,119 684
1502 Interest receivable............. 45 46 47 47
1505 Allowance for subsidy cost (-).. -331 -340 -349 -349
------------ -------------- ------------ -------------
1599 Net present value of assets
related to defaulted
guaranteed loans............ 342 576 817 382
------------ -------------- ------------ -------------
1999 Total assets.................... 1,763 2,035 2,316 1,881
LIABILITIES:
2204 Non-Federal liabilities:
Liabilities for loan guarantees. 1,763 2,035 2,316 1,881
------------ -------------- ------------ -------------
2999 Total liabilities............... 1,763 2,035 2,316 1,881
NET POSITION:
3100 Appropriated capital..............
------------ -------------- ------------ -------------
3999 Total net position..............
------------ -------------- ------------ -------------
4999 Total liabilities and net position 1,763 2,035 2,316 1,881
-----------------------------------------------------------------------------------------------
Business Loan Fund Liquidating Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4154-0-3-376 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Interest Expense to Treasury...... 70 30 30
00.02 Defaults on guarantee loans....... 327 318 318
00.03 Other Expenses.................... 184 50 50
--------- --------- ----------
10.00 Total obligations............... 581 398 398
----------------------------------------------------------------------------
Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested:
21.40 Uninvested.................... 1 1
21.40 Uninvested.................... 337 367
--------- --------- ----------
21.99 Total unobligated balance,
start of year............... 338 368
22.00 New budget authority (gross)...... 653 505 972
22.40 Capital transfer to general fund.. -434 -533
22.60 Redemption of debt................ -42 -41 -41
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 949 398 398
23.95 New obligations................... -581 -398 -398
Unobligated balance available, end of year:
Uninvested:
24.40 Uninvested.................... 1
24.40 Uninvested.................... 367
--------- --------- ----------
24.99 Total unobligated balance, end
of year....................... 368
----------------------------------------------------------------------------
New budget authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 653 505 972
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 389 621 671
73.10 New obligations................... 581 398 398
73.20 Total outlays (gross)............. -349 -348 -348
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 621 671 721
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 349 348 348
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
88.00 Federal sources............... -83 -550
Non-Federal sources:
Loan repayments:
88.40 Financing programs........ -282 -153 -153
88.40 Investment programs....... -37 -28 -28
88.40 SBIC obligations.......... -5
88.40 Section 503 development
obligations............. -27 -26 -26
Interest income:
88.40 Financing programs........ -120 -117 -117
88.40 Investment programs....... -48 -23 -23
88.40 Other income.............. -124 -65 -65
88.40 Section 503 Prepayments... -10 -10 -10
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -653 -505 -972
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -305 -157 -624
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4154-0-3-376 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Business Loan Fund, Direct
Loans
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 1,352 1,050 518
1232 Disbursements: Purchase of loans
assets from the public.......... 117 90 69
1251 Repayments: Repayments and
prepayments..................... -208 -101 -90
1262 Adjustments: Discount on loan
asset sales to the public or
discounted...................... -439 -439
1263 Write-offs for default: Direct
loans........................... -211 -82 -58
--------- --------- ----------
1290 Outstanding, end of year........ 1,050 518
----------------------------------------------------------------------------
Small Business Investment
Company, Direct Loans
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........
1251 Repayments: Repayments and
prepayments.....................
--------- --------- ----------
1290 Outstanding, end of year........
----------------------------------------------------------------------------
Section 503 Development
Company, Direct Loans
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 318 275 242
Repayments:
1251 Repayments and prepayments...... -28 -20 -18
[[Page 1019]]
1252 Proceeds from loan asset sales
to the public or discounted... -15 -13 -112
--------- --------- ----------
1290 Outstanding, end of year........ 275 242 112
---------------------------------------------------------------------------
Status of Guaranteed Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4154-0-3-376 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Business Loan Fund, Loan
Guarantees
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 6,383 5,341 4,491
2231 Disbursements of new guaranteed
loans........................... 1 1 1
2251 Repayments and prepayments........ -896 -750 -630
Adjustments:
2261 Terminations for default that
result in loans receivable.... -135 -91 -61
2264 Other adjustments, net.......... -12 -10 -8
--------- --------- ----------
2290 Outstanding, end of year........ 5,341 4,491 3,793
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 4,598 3,866 3,263
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 1,255 1,390 1,331
2331 Disbursements for guaranteed
loan claims................... 135 91 61
2361 Write-offs of loans receivable.. -67 -450
2364 Other adjustments, net.......... -83 -550
--------- --------- ----------
2390 Outstanding, end of year...... 1,390 1,331 392
---------------------------------------------------------------------------
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 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 189 191 234 220
0102 Expense........................... 149 -134 -184 -160
------------ -------------- ------------ -------------
0109 Net loss.......................... 338 57 50 60
-----------------------------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 73-4154-0-3-376 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:
1101 Fund balances with Treasury..... 727 794 866 866
Investments in US securities:
1104 Agency securities, par........ 160 214 286 286
1107 Advances and prepayments...... 9 7 5 5
Non-Federal assets:
1206 Receivables, net................ 816 780 745 745
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............. 1,671 1,325 760 112
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -1,114 -787 -401 -401
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 557 538 359 -289
1901 Other Federal assets: Other assets 61 37 23 23
------------ -------------- ------------ -------------
1999 Total assets.................... 2,337 2,377 2,291 1,643
LIABILITIES:
Federal liabilities:
2101 Accounts payable................ 1,667 1,694 1,604 1,056
2102 Interest payable................ 94 96 96 96
Debt:
2103 Debt to the FFB............... 318 325 327 227
2103 SBIC and development company
participation certificates.. 7 7 7 7
Non-Federal liabilities:
2201 Accounts payable................ 15 15 15 15
2204 Liabilities for loan guarantees. 71 72 73 73
2207 Other Liabilities............... 165 168 169 169
------------ -------------- ------------ -------------
2999 Total liabilities............... 2,337 2,377 2,291 1,643
------------ -------------- ------------ -------------
4999 Total liabilities and net position 2,337 2,377 2,291 1,643
-----------------------------------------------------------------------------------------------
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4154-0-3-376 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
42.0 Insurance claims and indemnities.. 511 368 368
43.0 Interest and dividends............ 70 30 30
--------- --------- ----------
99.9 Total obligations............... 581 398 398
---------------------------------------------------------------------------
Disaster Loans Program Account
[For the cost of direct loans authorized by section 7(b) of the
Small Business Act, as amended, $23,200,000, 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, [$150,000,000, 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, and
said sums shall be transferred to and merged with appropriations for the
Office of Inspector General] $166,000,000, which may be transferred to
and merged with appropriations for Salaries and Expenses. (Departments
of Commerce, Justice, and State, the Judiciary, and Related Agencies
Appropriations Act, 1998.)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-1152-0-1-453 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct loan subsidy............... 192 184 53
00.05 Upward reestimate of direct loan
subsidy......................... 33
00.06 Interest on direct loan subsidy... 3
00.09 Administrative expense............ 164 158 166
--------- --------- ----------
10.00 Total obligations............... 356 378 219
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 164 190 56
22.00 New budget authority (gross)...... 327 209 166
22.10 Resources available from
recoveries of prior year
obligations..................... 55 35 20
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 546 434 242
23.95 New obligations................... -356 -378 -219
24.40 Unobligated balance available, end
of year: Uninvested............. 190 56 23
----------------------------------------------------------------------------
New budget authority (gross), detail:
Current:
40.00 Appropriation................... 327 173 166
Permanent:
60.05 Appropriation (indefinite)...... 36
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 327 209 166
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 123 70 98
73.10 New obligations................... 356 376 219
73.20 Total outlays (gross)............. -354 -315 -246
73.45 Adjustments in unexpired accounts. -55 -35 -20
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 70 98 51
----------------------------------------------------------------------------
Outlays (gross), detail:
86.90 Outlays from new current authority 217 133 128
86.93 Outlays from current balances..... 137 182 118
--------- --------- ----------
87.00 Total outlays (gross)........... 354 315 246
----------------------------------------------------------------------------
[[Page 1020]]
Net budget authority and outlays:
89.00 Budget authority.................. 327 209 166
90.00 Outlays........................... 354 315 246
---------------------------------------------------------------------------
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
----------------------------------------------------------------------------
Identification code 73-1152-0-1-453 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Direct Disaster Loans............. 961 785 237
--------- --------- ----------
1159 Total direct loan levels........ 961 785 237
Direct loan subsidy (in percent):
1320 Subsidy rate...................... 20.02 23.46 22.36
--------- --------- ----------
1329 Weighted average subsidy rate... 20.02 23.46 22.36
Direct loan subsidy budget authority:
1330 Disaster subsidy budget authority. 192 184 53
--------- --------- ----------
1339 Total subsidy budget authority.. 192 184 53
Direct loan subsidy outlays:
1340 Disaster subsidy outlays.......... 190 159 70
--------- --------- ----------
1349 Total subsidy outlays........... 190 159 70
----------------------------------------------------------------------------
Administrative expense data:
3510 Budget authority.................. 164 156 166
3590 Outlays from new authority........ 164 156 166
---------------------------------------------------------------------------
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 42 year history of the program, SBA has helped almost 1.3
million disaster victims by providing more than $25 billion in disaster
assistance. Over 90 percent has been to borrowers that otherwise would
not have been able to rebuild. During 1997 alone, SBA approved nearly
30,000 disaster loans, exceeding $1 billion to homeowners, renters, and
businesses.
Program Performance and Policy Goals.--The SBA program performance
and policy goals are to: 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 Reduced costs to Government.
amount.
------------------------------------------------------------------------
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-1152-0-1-453 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
25.2 Other services.................... 164 158 166
41.0 Grants, subsidies, and
contributions................... 192 220 53
--------- --------- ----------
99.9 Total obligations............... 356 378 219
---------------------------------------------------------------------------
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 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
1150 Direct Disaster Loans............. 664
--------- --------- ----------
1159 Total direct loan levels........ 664
Direct loan subsidy (in percent):
1320 Subsidy rate...................... -16.43
--------- --------- ----------
1329 Weighted average subsidy rate... -16.43
Direct loan subsidy budget authority:
1330 Disaster subsidy budget authority.
--------- --------- ----------
1339 Total subsidy budget authority..
Direct loan subsidy outlays:
1340 Disaster subsidy outlays..........
--------- --------- ----------
1349 Total subsidy outlays...........
---------------------------------------------------------------------------
Under current law, the interest rates on Small Business
Administration (SBA) disaster loans are set by statutory formulas. A
lower rate, not to exceed four percent, is available to applicants
without credit available from private lenders. A higher rate, not to
exceed eight percent, is charged to borrowers who have credit available
from private sources. To create a stronger incentive for households and
businesses to plan for and to mitigate against the costs of disasters
and to reduce the costs of these loans to the Government, the budget
proposes to increase the interest rate on SBA disaster loans to the U.S.
Treasury's cost for securities of comparable maturity, subject to a cap
of six percent. For borrowers with access to credit elsewhere, the
interest rate would be pegged above the comparable Treasury rate. These
changes would reduce the subsidy for these loans from 22.36 percent to
5.93 percent, which will allow more loans to be provided with a given
amount of budget authority.
[[Page 1021]]
In 1999, this proposal would allow the estimated volume of $901
million in disaster loans to be financed entirely with unobligated
balances carried forward from 1998. As a result, no appropriation of new
budget authority is requested for the Disaster Loan Program Account for
1999. Without the proposed increase in interest rates, the carryover
from 1998 would finance only $237 million of new disaster loans in 1999.
Disaster Direct Loan Financing Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4150-0-3-453 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct loans...................... 961 785 287
00.02 Interest on Treasury borrowing.... 589 477 547
00.03 Payment of downward reestimate to
receipt account................. 294
00.04 Payment of interest on downward
reestimates to receipt account.. 96
00.10 Asset sale payment to liquidating
account......................... 421
--------- --------- ----------
10.00 Total obligations............... 1,550 1,652 1,255
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 4,195 4,003 4,003
22.00 New financing authority (gross)... 1,550 1,652 1,468
22.60 Redemption of debt................ -192
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5,553 5,655 5,471
23.95 New obligations................... -1,550 -1,652 -1,255
24.40 Unobligated balance available, end
of year: Uninvested............. 4,003 4,003 4,216
----------------------------------------------------------------------------
New financing authority (gross), detail:
67.15 Authority to borrow (indefinite).. 1,550 1,560 834
Spending authority from offsetting
collections:
68.00 Offsetting collections (cash)... 841 1,298 1,516
68.10 Change in receivables from
program account............... -25 -4 -58
68.47 Portion applied to debt
reduction (-)................. -816 -1,202 -824
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total)..................... 92 634
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 1,550 1,652 1,468
----------------------------------------------------------------------------
Change in unpaid obligations:
Unpaid obligations, start of year:
72.40 Obligated balance: Uninvested... 605 992 1,037
72.95 Receivables from program account 122 97 93
--------- --------- ----------
72.99 Total unpaid obligations,
start of year............... 727 1,089 1,130
73.10 New obligations................... 1,550 1,652 1,255
73.20 Total financing disbursements
(gross)......................... -1,188 -1,611 -682
Unpaid obligations, end of year:
74.40 Obligated balance: Uninvested... 992 1,037 1,668
74.95 Receivables from program account 97 93 35
--------- --------- ----------
74.99 Total unpaid obligations, end
of year..................... 1,089 1,130 1,703
87.00 Total financing disbursements
(gross)......................... 1,188 1,611 682
----------------------------------------------------------------------------
Offsets:
Against gross financing authority and
financing disbursements:
Offsetting collections (cash)
from:
Federal sources:
88.00 Payments from program
account................... -192 -184 -53
88.00 Payments from program
account--Reestimates...... -390
Non-Federal sources:
88.40 Repayments of principal, net -123 -161 -208
88.40 Interest received on loans.. -526 -563 -621
88.40 Proceeds from loan sales.... -634
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -841 -1,298 -1,516
88.95 Change in receivables from program
accounts........................ 25 4 58
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... 734 358 10
90.00 Financing disbursements........... 347 313 -834
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4150-0-3-453 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 961 785 901
--------- --------- ----------
1150 Total direct loan obligations... 961 785 901
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 7,227 7,891 8,027
1231 Disbursements: Direct loan
disbursements................... 1,168 744 135
Repayments:
1251 Repayments and prepayments...... -427 -502 -665
1252 Proceeds from loan asset sales
to the public or discounted... -213
1264 Write-offs for default: Other
adjustments, net................ -77 -106 -116
--------- --------- ----------
1290 Outstanding, end of year........ 7,891 8,027 7,168
---------------------------------------------------------------------------
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 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Federal assets:
Investments in US securities:
Receivables, net:
1106 Program account............. 227 146 32 6
1106 Interest Receivables........ 1,984 1,772 1,928
Net value of assets related to
post-1991 direct loans
receivable:
1401 Direct loans receivable, gross.. 7,227 7,891 8,027 7,168
1405 Allowance for subsidy cost (-).. -248 -192 -184 -53
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 6,979 7,699 7,843 7,115
------------ -------------- ------------ -------------
1999 Total assets.................... 7,206 9,829 9,647 9,049
LIABILITIES:
2104 Federal liabilities: Resources
payable to Treasury............. 6,979 9,683 9,615 9,043
------------ -------------- ------------ -------------
2999 Total liabilities............... 6,979 9,683 9,615 9,043
NET POSITION:
3100 Appropriated capital.............. 227 146 32 6
------------ -------------- ------------ -------------
3999 Total net position.............. 227 146 32 6
------------ -------------- ------------ -------------
4999 Total liabilities and net position 7,206 9,829 9,647 9,049
-----------------------------------------------------------------------------------------------
Disaster Direct Loan Financing Account
(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4150-2-3-453 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct loans...................... 664
00.02 Interest on Treasury borrowing.... 7
--------- --------- ----------
10.00 Total obligations............... 671
----------------------------------------------------------------------------
Budgetary resources available for obligation:
22.00 New financing authority (gross)... 671
23.95 New obligations................... -671
----------------------------------------------------------------------------
New financing authority (gross), detail:
67.15 Authority to borrow (indefinite).. 679
Spending authority from offsetting
collections:
68.00 Offsetting collections (cash)... 48
68.47 Portion applied to debt
reduction (-)................. -56
--------- --------- ----------
[[Page 1022]]
68.90 Spending authority from
offsetting collections
(total)..................... -8
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 671
----------------------------------------------------------------------------
Change in unpaid obligations:
73.10 New obligations................... 671
73.20 Total financing disbursements
(gross)......................... -470
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 201
87.00 Total financing disbursements
(gross)......................... 470
----------------------------------------------------------------------------
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.. -46
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -48
----------------------------------------------------------------------------
Net financing authority and financing
disbursements:
89.00 Financing authority............... 623
90.00 Financing disbursements........... 422
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4150-2-3-453 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 615
--------- --------- ----------
1150 Total direct loan obligations... 615
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........
1231 Disbursements: Direct loan
disbursements................... 398
1251 Repayments: Repayments and
prepayments..................... -41
1264 Write-offs for default: Other
adjustments, net................ -9
--------- --------- ----------
1290 Outstanding, end of year........ 348
---------------------------------------------------------------------------
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 73-4150-2-3-453 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
Net value of assets related to
post-1991 direct loans
receivable:
1401 Direct loans receivable, gross.. 298
------------ -------------- ------------ -------------
1499 Net present value of assets
related to direct loans..... 298
------------ -------------- ------------ -------------
1999 Total assets.................... 298
LIABILITIES:
2104 Federal liabilities: Resources
payable to Treasury............. 298
------------ -------------- ------------ -------------
2999 Total liabilities............... 298
------------ -------------- ------------ -------------
4999 Total liabilities and net position 298
-----------------------------------------------------------------------------------------------
Disaster Loan Fund Liquidating Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4153-0-3-453 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Obligations by program activity:
01.01 Interest expense to Treasury...... 68 58 38
01.03 Other expenses.................... 27 8 6
--------- --------- ----------
10.00 Total obligations............... 95 66 44
----------------------------------------------------------------------------
Budgetary resources available for obligation:
21.40 Unobligated balance available,
start of year: Uninvested....... 177 221
22.00 New budget authority (gross)...... 313 258 615
22.40 Capital transfer to general fund.. -174 -413 -571
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 316 66 44
23.95 New obligations................... -95 -66 -44
Unobligated balance available, end of year:
Uninvested:
24.40 Uninvested.................... 1
24.40 Uninvested.................... 220
--------- --------- ----------
24.99 Total unobligated balance, end
of year....................... 221
----------------------------------------------------------------------------
New budget authority (gross), detail:
68.00 Spending authority from offsetting
collections (gross): Offsetting
collections (cash).............. 313 258 615
----------------------------------------------------------------------------
Change in unpaid obligations:
72.40 Unpaid obligations, start of year:
Obligated balance: Uninvested... 79 70 67
73.10 New obligations................... 95 66 44
73.20 Total outlays (gross)............. -104 -69 -64
74.40 Unpaid obligations, end of year:
Obligated balance: Uninvested... 70 67 47
----------------------------------------------------------------------------
Outlays (gross), detail:
86.97 Outlays from new permanent
authority....................... 95 64 60
86.98 Outlays from permanent balances... 9 5 4
--------- --------- ----------
87.00 Total outlays (gross)........... 104 69 64
----------------------------------------------------------------------------
Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash)
from:
Non-Federal sources:
88.40 Loan repayments............. -198 -192 -149
88.40 Interest income............. -72 -58 -38
88.40 Other income................ -43 -8 -7
88.40 Recovery on Loan
Cancellations.............
88.40 Proceeds from loan asset
sales..................... -421
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -313 -258 -615
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... -209 -189 -551
---------------------------------------------------------------------------
Status of Direct Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4153-0-3-453 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 1,677 1,457 1,230
Repayments:
1251 Repayments and prepayments...... -199 -192 -149
1252 Proceeds from loan asset sales
to the public or discounted... -421
1263 Write-offs for default: Direct
loans........................... -21 -35 -27
--------- --------- ----------
1290 Outstanding, end of year........ 1,457 1,230 633
---------------------------------------------------------------------------
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 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
0101 Revenue........................... 93 72 65 103
0102 Expense........................... -102 -78 -77 -90
------------ -------------- ------------ -------------
0109 Net income or loss (-)............ -9 -6 -12 13
-----------------------------------------------------------------------------------------------
[[Page 1023]]
Balance Sheet (in millions of dollars)
-----------------------------------------------------------------------------------------------
Identification code 73-4153-0-3-453 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 256 290 255 235
1206 Non-Federal assets: Receivables,
net............................. 111 75 59 39
Net value of assets related to
pre-1992 direct loans
receivable and acquired
defaulted guaranteed loans
receivable:
1601 Direct loans, gross............. 1,677 1,457 1,230 633
1603 Allowance for estimated
uncollectible loans and
interest (-).................. -129 -107 -93 -87
------------ -------------- ------------ -------------
1699 Value of assets related to
direct loans................ 1,548 1,350 1,137 546
Other Federal assets:
1801 Cash and other monetary assets.. 4 1 1
1803 Property, plant and equipment,
net........................... 5
------------ -------------- ------------ -------------
1999 Total assets.................... 1,920 1,719 1,452 821
LIABILITIES:
2102 Federal liabilities: Interest
payable......................... 78 68 52 40
2201 Non-Federal liabilities: Accounts
payable......................... 1,842 1,651 1,400 1,102
------------ -------------- ------------ -------------
2999 Total liabilities............... 1,920 1,719 1,452 1,142
------------ -------------- ------------ -------------
4999 Total liabilities and net position 1,920 1,719 1,452 1,142
-----------------------------------------------------------------------------------------------
Object Classification (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4153-0-3-453 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
25.2 Other services.................... 27 8 6
43.0 Interest and dividends............ 68 58 38
--------- --------- ----------
99.9 Total obligations............... 95 66 44
---------------------------------------------------------------------------
Pollution Control Equipment Fund Liquidating Account
Program and Financing (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4147-0-3-376 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Obligations by program activity:
00.01 Direct program.................... 1
--------- --------- ----------
10.00 Total obligations (object class
42.0)......................... 1
----------------------------------------------------------------------------
Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested:
21.40 Uninvested.................... 14 12
21.40 Uninvested.................... -1
--------- --------- ----------
21.99 Total unobligated balance,
start of year............... 13 12
22.40 Capital transfer to general fund.. -12
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 13
23.95 New obligations................... -1
Unobligated balance available, end of year:
Uninvested:
24.40 Uninvested.................... 12
24.40 Uninvested....................
--------- --------- ----------
24.99 Total unobligated balance, end
of year....................... 12
----------------------------------------------------------------------------
Change in unpaid obligations:
73.10 New obligations................... 1
73.20 Total outlays (gross)............. -1
----------------------------------------------------------------------------
Outlays (gross), detail:
86.98 Outlays from permanent balances... 1
----------------------------------------------------------------------------
Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
---------------------------------------------------------------------------
Status of Guaranteed Loans (in millions of dollars)
----------------------------------------------------------------------------
Identification code 73-4147-0-3-376 1997 actual 1998 est. 1999 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 86 76 65
Adjustments:
2261 Terminations for default that
result in loans receivable.... -1
2264 Other adjustments, net.......... -10 -10 -11
--------- --------- ----------
2290 Outstanding, end of year........ 76 65 54
----------------------------------------------------------------------------
Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 76 65 54
----------------------------------------------------------------------------
Addendum:
Cumulative balance of defaulted guaranteed
loans that result in loans receivable:
2310 Outstanding, start of year...... 47 48 43
2331 Disbursements for guaranteed
loan claims................... 1 1
2351 Repayments of loans receivable.. -6
--------- --------- ----------
2390 Outstanding, end of year...... 48 43 43
---------------------------------------------------------------------------
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 1996 actual 1997 actual 1998 est. 1999 est.
-----------------------------------------------------------------------------------------------
ASSETS:
1101 Federal assets: Fund balances with
Treasury........................ 13 13 12 10
1206 Non-Federal assets: Receivables,
net............................. 9 9 9 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 8 8
------------ -------------- ------------ -------------
1999 Total assets.................... 28 28 29 27
LIABILITIES:
2104 Federal liabilities: Resources
payable to Treasury............. 28 18 22 21
2201 Non-Federal liabilities: Accounts
payable.........................
------------ -------------- ------------ -------------
2999 Total liabilities............... 28 18 22 21
NET POSITION:
3100 Appropriated capital..............
3300 Cumulative results of operations..
3600 Other............................. 1 10 7 6
------------ -------------- ------------ -------------
3999 Total net position.............. 1 10 7 6
------------ -------------- ------------ -------------
4999 Total liabilities and net position 29 28 29 27
-----------------------------------------------------------------------------------------------
Administrative Provision--Small Business Administration
Not to exceed 5 percent of any appropriation made available for the
current fiscal year for the Small Business Administration in this Act
may be transferred between such appropriations, but no such
appropriation shall be increased by more than 10 percent by any such
transfers: Provided, That any transfer pursuant to this paragraph 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, 1998.)