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


[[Page 1077]]

 
                      SMALL BUSINESS ADMINISTRATION

    The budget provides $994.5 million in new budget authority for the 
Small Business Administration (SBA). The amount requested consists of 
$761.5 million in regular discretionary appropriations and $233.0 
million in contingent emergency appropriations. This funding level, when 
combined with anticipated carryover and decreased loan subsidy costs, 
will allow SBA to continue to provide assistance to small businesses at 
a reduced cost to the Federal taxpayer.

    In 2000, SBA expects to continue to increase its reliance on its 
private sector partners. During 1998, over 75 percent of SBA's business 
loans were underwritten by its private sector lending partners with 
reduced SBA involvement. This trend is expected to continue in 1999 and 
2000, with the expansion of SBA's PLP, LowDoc, and SBA Express programs. 
Additionally, in 1998, SBA began contracting out the servicing of 30 
percent of its Disaster Home Loan portfolio and is developing an Asset 
Sales program to sell its approximately $10 billion direct and defaulted 
guaranteed loan portfolios. Sales will begin in 1999 and provide SBA an 
effective outlet for its current and future loan portfolio servicing 
needs. These initiatives will allow SBA to focus its limited resources 
on expanding assistance to small businesses while relying on private 
sector partners and investors for ``back end'' activities. The budget 
estimates that these initiatives will lead to lower credit, 
administrative and subsidy costs.

    The budget proposes targeted program growth and new initiatives to 
expand access to capital and provide education and training to a greater 
cross-section of America through SBA's ``New Markets'' outreach efforts. 
SBA's second major goal for 2000 will be to continue to modernize the 
SBA to be a leading edge 21st century institution, poised to assist the 
small business community in 2000 and beyond in a more efficient and 
effective manner.

                              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] 105-135, 
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, [$288,300,000, of which: $3,500,000 shall be 
available for a grant to the NTTC at Wheeling Jesuit University to 
continue the outreach program to assist small business development; 
$4,000,000 shall be available for a grant for Western Carolina 
University to develop a facility to assist in small business and rural 
economic development; $2,000,000 shall be available for a grant for the 
City of Hazard, Kentucky for a Center for Rural Law Enforcement 
Technology and Training; $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; $1,500,000 shall be available for a grant for Pikeville 
College for a telemedicine learning and resource center; $1,000,000 
shall be available for a grant for the Center for Excellence in Marine 
Science Education at Southampton College; $1,000,000 shall be for a 
grant to King's College in Wilkes-Barre, Pennsylvania, for the 
commercialization of pulverization technologies; $850,000 shall be 
available for a grant for the Carbondale Technology Transfer Center in 
Lackawanna County, Pennsylvania; $1,000,000 shall be available for a 
grant for the Institute for Software Research in Fairmont, West 
Virginia, for Institute operations and to further develop their 
capability to perform basic and applied research aimed at software 
engineering, biometrics, image processing and networks; $500,000 shall 
be available for a grant for the Altoona Science and Technology Research 
Academy in Altoona, Pennsylvania; $200,000 shall be available for a 
grant to the City of Prestonburg, Kentucky for a regional arts and 
tourism center; $300,000 shall be available for a grant for the City of 
Parkersburg, West Virginia for infrastructure improvements, facility 
upgrades, and property acquisition associated with community non-profit 
service and enrichment projects; $200,000 shall be available for a grant 
for the Vandalia Heritage Foundation to fulfill its charter purposes; 
$1,000,000 shall be available for a grant for the Moundsville Economic 
Development Council to work in conjunction with the Office of Law 
Enforcement Technology Commercialization for the establishment of the 
National Corrections and Law Enforcement Training and Technology Center, 
and for infrastructure improvements associated with this initiative; and 
$250,000 shall be available for a grant for the Johnstown Area Regional 
Industries Defense Procurement Center to establish a Year 2000 challenge 
grant program to assist small businesses that rely heavily on the 
Federal Government's acquisition system for their livelihood, and help 
provide a solution to the Year 2000 computer problem] $263,000,000: 
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 [$82,000,000] $62,000,000 shall be available to fund 
grants for performance in fiscal year [1999] 2000 or fiscal year [2000] 
2001 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, 1999, as included in Public Law 105-277, 
section 101(b).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-0100-0-1-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Government contracting and 
        minority enterprise development.          22          25          35
00.02 Disaster assistance...............         104          86          41
00.04 Management and administration.....          70          73          79
00.05 Executive direction...............          11          11          11
00.06 General counsel...................           7           7           8
00.07 Congressional and legislative 
        affairs.........................           1           1           1
00.08 Hearings and appeals..............           1           1           1
00.09 Communications and publications...           3           3           3
00.11 Advocacy..........................           5           5           5
00.12 Field operations..................           2           2           2
00.13 Equal employment opportunity and 
        civil rights compliance.........           1           1           2
00.14 Regional and district offices.....         127         133         129
00.15 Chief financial officer...........           8          10          11
00.16 Capital Access....................          36          44          60
00.17 Entrepreneurial development.......         101         136          94
00.18 Small disadvantaged businesses....          10          12          12
                                           ---------   ---------  ----------
10.00   Total new obligations...........         509         550         494
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           3          17
22.00 New budget authority (gross)......         523         533         494
22.22 Unobligated balance transferred 
        from other accounts.............           3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         529         550         494
23.95 Total new obligations.............        -509        -550        -494
23.98 Unobligated balance expiring......          -3
24.40 Unobligated balance available, end 
        of year.........................          17
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         254         288         263
42.00   Transferred from other accounts.                       1
                                           ---------   ---------  ----------
43.00     Appropriation (total).........         254         289         263
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).         269         244         231
                                           ---------   ---------  ----------

[[Page 1078]]


70.00   Total new budget authority 
          (gross).......................         523         533         494
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         171         182         322
73.10 Total new obligations.............         509         550         494
73.20 Total outlays (gross).............        -484        -403        -471
73.40 Adjustments in expired accounts...         -14          -7         -12
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         182         322         333
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         197         159         145
86.93 Outlays from current balances.....          18                      95
86.97 Outlays from new permanent 
        authority.......................         269         244         231
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         484         403         471
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
          Federal sources:
88.00       Payments from business loan 
              program account...........         -97        -114        -131
88.00       Payments from disaster loan 
              program account...........        -109         -82         -41
88.00       Reprogramming of disaster 
              loan subsidy..............         -50         -35         -45
88.00       Federal sources.............         -11         -11         -12
88.40     Non-Federal sources...........          -2          -2          -2
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -269        -244        -231
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         254         289         263
90.00 Outlays...........................         215         159         240
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1998 actual  1999 est.   2000 est.
Enacted/requested:
  Budget Authority..................         254         289         263
  Outlays...........................         215         159         240
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                  31
  Outlays...........................                                  17
                                    ------------------------------------
Total:
  Budget Authority..................         254         289         294
  Outlays...........................         215         159         257
                                    ====================================

    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:

    Executive Direction.--Executive Direction includes the Office of the 
Administrator, Advocacy, Equal Employment Opportunity and Civil Rights 
Compliance (EEO&CRC), Congressional and Legislative Affairs (CLA), 
Hearings and Appeals (HA), General Counsel, Field Operations, 
Communications and Public Liaison (CPL), and the Office of the Chief 
Financial Officer (CFO). The Office of the Administrator provides 
general management to the SBA organization. The Office of Advocacy is 
the principal voice for small business within the government. The Office 
of EEO & CRC ensures SBA and its programs comply with all applicable 
equal opportunity laws and regulations. The Office of CLA provides 
agency wide support and coordination for all congressional activities. 
The Office of HA determines size appeals, Small Disadvantaged Business 
protests and other administrative adjudication matters. The Office of 
the General Counsel provides agency wide legal support and advice. The 
Office of Field Operations oversees and provides management and 
operational support to SBA's regional and district offices. The Office 
of CPL coordinates SBA's marketing, public outreach, and public 
information programs. The Office of the CFO administers SBA's budget and 
financial management activities, including financial systems, subsidy 
rates, financial reporting, and internal control activities.

    Capital Access.--The Associate Deputy Administrator (ADA) for this 
function directs the following SBA programs: 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. Starting in 1999, SBA will 
emphasize its goal of increasing small business access to its capital 
and credit programs, targeting ``new markets.'' These are areas where 
individuals and/or communities have not previously had ready access to 
SBA's programs and services. Through such efforts as the recent roll-out 
of SBA LowDoc and SBA Express, the upcoming roll-out of Export Express, 
and the regional SBIC outreach conferences, SBA will reach a greater 
cross-section of America with its programs. For 2000, in addition to 
continuing these emphasis areas, SBA proposes to expand most credit and 
capital programs and introduce new program initiatives, such as the New 
Markets Venture Capital Program, to further increase lending in 
distressed inner cities and rural areas, and encourage more loans in 
smaller amounts.

    Entrepreneurial Development.--The Associate Deputy Administrator 
(ADA) for this function directs the following SBA programs: Women's 
Business Ownership; Small Business Development Centers; Veteran's 
Affairs; Office of 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. Through special initiatives 
such as the One Stop Capital Shops, Distance Learning and Welfare to 
Work, SBA will increase its access to entrepreneurs, particularly in 
``new markets.''

    Government Contracting and Minority Enterprise Development.--The 
Associate Deputy Administrator for this function directs the following 
SBA programs: Government Contracting; Section 8(a) Business 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 Section 8(a) Business 
Development program provides 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. These program areas also administer the government-wide Small 
Disadvantaged Business (SDB) programs, certifying firms as SDB to 
facilitate their active participation in Federal procurement. Also, 
starting in 1999, SBA implemented the HUBZones legislation, intended to 
increase small business procurement opportunities in designated 
``zones'' of the country.

    Management and Administration.--The Associate Director for 
Management and Administration directs the Office of the Chief 
Information Officer (OCIO), Office of Administration (OA), and Office of 
Human Resources (OHR). The OCIO has lead responsibility for SBA's 
systems modernization initiatives and its Y2K resolution. The 
modernization plan includes a multi-year project to upgrade and 
modernize all of SBA's systems and programs providing more reliable and 
timely management information. The Office of Administration administers 
SBA's space management, printing, and procurement and grants management 
programs. The Office of Human Re

[[Page 1079]]

sources administers SBA's workforce planning and management efforts, 
including workforce training programs. In 2000, SBA proposes to 
implement a workforce transition plan, designed to prepare SBA staff to 
operate the agency as a 21st Century Financial Institution. This 
proposed plan includes additional employee training and buyout authority 
to enable SBA to allocate staff in an effective and efficient manner. In 
addition, the ADA has principal responsibility for SBA's GPRA 
performance and strategic planning process.

    Disaster Assistance.--The Associate Administrator for the Office of 
Disaster Assistance directs 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 four percent.

Program Performance

    Small Business Development Centers (SBDCs).--The SBDCs provide long 
term counseling to small businesses at about 1,000 locations in 50 
states and Puerto Rico, Guam, and the District of Columbia. In 1998, 
more than 547,000 customers were helped, of which 38 percent were women 
and 19 percent were minorities. For 2000, the budget proposes federal 
funding of $62 million and the removal of the statutory prohibition on 
SBDCs charging of fees for counseling. With the removal of this 
language, SBDCs would be encouraged to charge reasonable fees for their 
services to provide sufficient resources to support their 2000 funding 
needs.

    Women's Business Centers.--Through this program, the SBA awards 
grants to nonprofit organizations to deliver entrepreneurial training 
programs to women business owners or those interested in starting 
businesses. In 1998, 35 funded and 35 graduated women's business centers 
were operating in 38 states, the District of Columbia and Puerto Rico. 
Each offers financial, management, marketing and technical assistance to 
current and potential women business owners. With the increased funding 
in 1999, this program will expand to include coverage of all 50 states. 
The 2000 budget request includes $9 million for this program to support 
all 1999 funded centers and to continue two initiatives begun in 1996: 
OWBOZone, an intranet that links all of the Women's Business Centers; 
and the Online Women's Business Center on the Internet, which allows 
women nationwide to have access to the same services offered by the 
centers.

    One Stop Capital Shops (OSCS).--OSCSs are located in Empowerment 
Zones and Enterprise Communities. This program's objective is to 
stimulate and sustain economic revitalization in distressed areas. An 
OSCS is a partnership between SBA and a local community designed to 
offer small business assistance under one roof from an easy to access, 
retail location. Each is unique, is located in a distressed area, and 
targets new urban and rural markets. For 2000, the budget proposes 
funding of $10 million to support 6 new OSCS locations to be established 
in 1999 and 14 additional OSCSs in 2000, as well as the existing network 
of OSCS locations.

    Microloan Technical Assistance.--The Microloan Program technical 
assistance component helps small businesses gain access to private 
sector financing and assists SBA's Microloan program through grants to 
microloan intermediaries for on-going management advice and counseling. 
The program also supports 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 education and training needed for them to 
succeed. The budget provides $32.0 million in Microloan grants. This 
amount will support the increased program level and the portfolio with a 
20 percent level of funding and allow for the growth of technical 
assistance providers to include both financial and non-financial 
intermediaries.

    Native American Outreach Through Tribal Business Information Centers 
(TBICs).--SBA provides reservation- and non-reservation-based 
entrepreneurs access to state-of-the-art computer and software 
technology, one-on-one business counseling services, and business 
development workshops. The facilitators of these centers have received 
extensive technical training in SBA's lending, business development and 
entrepreneurial development programs. In 1998, these centers served 
approximately 3,000 clients, and provided 4,892 hours of business 
counseling, held approximately 200 workshops, assisted in the completion 
of approximately 200 business plans and 120 loan packages, and were 
instrumental in the startup of approximately 170 businesses. For 2000, 
the budget proposes $1 million to support the continuation of this 
important initiative.

    Veteran's Outreach.--This program advocates enhanced entrepreneurial 
development opportunities for veterans. In 1998, the Administrator 
established a Veterans Task Force to examine Agency programs which could 
be used as vehicles to provide enhanced services to eligible veterans. 
Additionally, in 1998, the Congress passed legislation requiring SBA to 
undertake a study of assistance to veterans and to establish an outreach 
program to better serve the unique needs of the veteran community. The 
2000 budget proposes $615 thousand to support this statutory program 
initiative.

    Service Corps of Retired Executives (SCORE).--Using one-on-one 
counseling and workshops, SCORE reaches about 354,000 business owners 
annually using approximately 12,500 counselors through 389 chapters 
located across the country. Counseling costs to the Government are less 
than $3 per hour. For 2000, the budget proposes a funding level of $3.5 
million for this program, the same level as provided in 1999.

    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 2000, 
the budget includes $700 thousand to support these locations, the same 
level of funding as provided in 1999.

    Section 8(a) Business Development.--SBA administers a number of 
programs and initiatives to support the business development and 
contracting goals of socially and economically disadvantaged businesses. 
These include the Section 8(a) program and the Section 7(j) technical 
assistance programs. The Section 8(a) program certifies firms for 
participation in sole-source federal contracts and access to targeted 
business development, executive development, and technical assistance 
through the Section 7(j) program. For 2000, the budget proposes $5 
million in Section 7(j) technical assistance funding to support the 
expanding executive development and business assistance needs of these 
entrepreneurs.

    Small Disadvantaged Business (SDB) Certification.--Starting in 1998, 
SBA was designated as the lead agency to certify firms nationally as 
SDBs. This certification process enables firms to receive federal 
contracts set aside for these small businesses. Funding for this program 
is provided through reimbursements from the approximately 20 largest 
Federal procuring agencies. The program's funding level for 2000 is 
proposed to be $12 million.

    HUBZones.--Legislation passed in 1998 created a national program to 
support enhanced business growth and development in designated HUBZones. 
SBA began implementation of this program in 1998 and will have a viable 
HUBZones

[[Page 1080]]

program operating in 1999. Funding for this program is requested at $4 
million for 2000.

    SBA Modernization and Workforce Transition.--In order to continue to 
modernize the SBA--preparing itself for the 21st Century--all major 
systems need to be replaced and updated. SBA began its multi-year 
systems modernization effort in 1998. This project is being undertaken 
in phases, with the first phase concentrating on SBA's need to monitor 
and oversee its lenders and its increasing loan portfolio. Starting in 
1999 and 2000, SBA will complete this phase and begin modernization of 
its financial management systems and other program systems. Funding for 
2000 is requested at $8 million, the same level as provided in 1999. 
Additionally, in order to transition SBA's workforce in an orderly 
manner to the new roles and responsibilities facing the Agency today and 
into the 21st Century, we request $5 million to support increased 
training and the transition of staff to a more customer-focused and 
community-based structure. Of this amount, approximately $1 million will 
be used to offer retirement incentives through buyout authority, which 
requires legislation.

    Investment Division.--In order to provide an adequate level of 
administrative support necessary to this expanding program, including 
the new Low and Moderate Income Investments (LMI), the enhanced 
debenture and participating securities levels, and the proposed New 
Markets Venture Capital Program, $2 million in additional administrative 
funding is requested for 2000.

    U.S. Export Assistance Centers.--The SBA is a partner with the 
Department of Commerce and the Export-Import Bank in the U.S. Export 
Assistance Center (USEAC) Program. Through a network of 19 USEACs 
located across the nation, SBA delivers financial and technical 
assistance and business development counseling to small businesses that 
sell their products globally. The USEACs provide ``one-stop shop'' 
exporting assistance. The 2000 budget includes a request for $3.1 
million for this purpose.

    Other Programs and Initiatives.--In addition to the above, SBA 
proposes to fund the Women's Council for 2000 at $600 thousand; the 
Survey of Women Owned Businesses as part of the Census for $790 
thousand; and to Fund the Office of Advocacy's database and research. 
For 2000, SBA will provide outreach, training and support to small 
businesses to increase their use of electronic commerce leading to 
increased contracting. This initiative is proposed at $2 million. In 
order to ensure maximum utilization of electronic commerce, we intend to 
use Pro-Net, SBA's national database of small business contractors. 
Leveraging Pro-Net in this way is consistent with recent procurement 
streamlining initiatives. The 2000 budget requests $500 thousand for 
this initiative. Also, SBA will assist in the support of BusinessLINC, 
an initiative to link large businesses in a mentor/protege relationship 
with small businesses; promote best practices; and help grow small 
businesses in distressed urban areas and isolated communities. This 
initiative is proposed at a level of $3 million for 2000.

    SBA has implemented a ``Welfare to Work'' initiative throughout its 
field offices to link work-ready employees with small business 
employers. Starting in 1999 and continuing through 2000, SBA will assist 
in the identification of employment opportunities for Americans with 
disabilities.

    Administrative Operating Expenses.-- SBA's cost of operations are 
financed through direct appropriations to the Salaries and Expenses, 
Disaster Loans Program, and Business Loans Program accounts. Disaster 
loan servicing and loan making are funded directly through an 
appropriation to the Disaster Loan Program account. SBA's general 
operating expenses are funded directly by the appropriations to Salaries 
and Expenses and indirectly through appropriations to the Disaster Loan 
Program and Business Loan Program accounts. For 2000, the funding 
requested for general and administrative operating expenses will require 
SBA to consolidate operations, increase efficiencies, and significantly 
reduce overhead expenses in order to support expanding programs. 
Transition planning to a more modern, efficient SBA organizations is 
emphasized in 1999, so that 2000 funding can be used to train, relocate 
and motivate employees to support the SBA of the 21st century.

Performance Goals

    Program and Policy Goals under the GPRA.--President Clinton has made 
small business formation and growth a component of his national economic 
plan. The Small Business Administration has focused on the following 
five program and policy goals in support 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 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. These five goals are summarized under SBA's two focus areas 
for 1999-2000: ``New Markets'' and ``Modernization.'' SBA works to 
ensure access to its myriad of programs and services to a wide cross-
section of America and aims to do this in an efficient and effective 
manner using technology and customer-focused approaches.

    SBA's 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. SBA's five-year strategic plan developed in 1998 
includes the specific goals and strategies to be employed in 1998-2003 
to accomplish this mission. SBA continues to enhance these performance 
measures--moving from outputs to outcomes.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-0100-0-1-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............         153         167         176
11.3    Other than full-time permanent..           9           9          10
11.5    Other personnel compensation....           2           3           3
                                           ---------   ---------  ----------
11.9      Total personnel compensation..         164         179         189
12.1  Civilian personnel benefits.......          41          46          50
21.0  Travel and transportation of 
        persons.........................           6           6           7
22.0  Transportation of things..........           1           1           1
23.1  Rental payments to GSA............          24          25          25
23.3  Communications, utilities, and 
        miscellaneous charges...........          10          12          12
24.0  Printing and reproduction.........                       1           1
25.2  Other services....................          48          44          47
26.0  Supplies and materials............           1           2           2
31.0  Equipment.........................           2           2           2
41.0  Grants, subsidies, and 
        contributions...................         108         146         117
      Undistributed:

92.0    Undistributed (disaster loan 
          making).......................          79          55          11
92.0    Undistributed (disaster loan 
          servicing)....................          25          31          30
                                           ---------   ---------  ----------
99.9    Total new obligations...........         509         550         494
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 73-0100-0-1-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......       4,279       4,496       4,538
---------------------------------------------------------------------------
    Note.--The personnel summary includes regular (non-disaster) full-
time equivalents (FTEs) of 2,979, 3,242, and 3,279 in 1998, 1999, and 
2000 respectively.

[[Page 1081]]

                          Salaries and Expenses

              (Legistative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-0100-2-1-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.04 Management and Administration.....                                   1
00.16 Capital Access....................                                  30
                                           ---------   ---------  ----------
10.00   Total new obligations...........                                  31
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  31
23.95 Total new obligations.............                                 -31
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                                  31
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                  31
73.20 Total outlays (gross).............                                 -17
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..                                  14
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                  17
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                  31
90.00 Outlays...........................                                  17
---------------------------------------------------------------------------

    SBA will propose legislative authority for two new initiatives in 
2000.

    New Markets, Venture Capital (NMVC) Technical Assistance.--SBA 
proposes to establish a new venture capital program in 2000 to encourage 
equity lending in ``new markets.'' A key component to the success of 
this program is the provision of technical assistance grants to the 
firms in these inner cities and rural areas to assure development of 
managerial and technical competencies needed to be successful 
investments for the NMVC entities. For 2000, SBA requests $30 million 
for this technical assistance program to support $100 million NMVC 
program level.

    Workforce Transition.--As part of SBA's request for $5 million to 
permit an orderly transition of its workforce to new roles and 
responsibilities, $1 million is requested to offer retirement 
incentives. SBA will propose legislative authority to offer these 
incentives.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-0100-2-1-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
11.5  Personnel compensation: Other 
        personnel compensation..........                                   1
41.0  Grants, subsidies, and 
        contributions...................                                  30
                                           ---------   ---------  ----------
99.9    Total new obligations...........                                  31
---------------------------------------------------------------------------

                                

                       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.), [$10,800,000] $11,000,000. (Departments of 
Commerce, Justice, and State, the Judiciary, and Related Agencies 
Appropriations Act, 1999, as included in Public Law 105-277, section 
101(b).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-0200-0-1-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Management and counsel............           2           2           2
00.02 Audit.............................           3           3           3
00.03 Investigations....................           5           5           5
00.04 Disaster..........................           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........          11          11          11
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           1
22.00 New budget authority (gross)......          11          11          11
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          12          11          11
23.95 Total new obligations.............         -11         -11         -11
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          10          11          11
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          11          11          11
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year                       1           1
73.10 Total new obligations.............          11          11          11
73.20 Total outlays (gross).............         -10         -11         -11
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..           1           1           1
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           9          10          10
86.93 Outlays from current balances.....           1           1           1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          10          11          11
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -1
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          10          11          11
90.00 Outlays...........................          10          11          11
---------------------------------------------------------------------------

    This appropriation provides funds for agency-wide audit, 
investigative, and inspection/evaluation functions to promote economy 
and efficiency in agency operations and to prevent and detect fraud, 
waste, and abuse. The audit function provides internal and external 
audits and other oversight activities. Internal audits assess the 
general management and efficiency of SBA program operations. External 
audits review program participants and their compliance with SBA 
regulations and procedural requirements. Inspections/evaluations address 
specific issues related to program management and effectiveness. The 
investigative function detects and investigates allegations of illegal 
and improper activities involving agency personnel and program 
participants.

    The 2000 budget requests $11 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      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................           9           9           9
12.1  Civilian personnel benefits.......           2           2           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........          11          11          11
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 73-0200-0-1-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: Full-
        time equivalent employment......         100         109         104
---------------------------------------------------------------------------

[[Page 1082]]



                                

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, 
$3,300,000, 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, 1999, 
as included in Public Law 105-277, section 101(b).)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4156-0-3-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Reimbursable obligations..........          10           7           6
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 42.0)...................          10           7           6
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................           2           4           6
22.00 New budget authority (gross)......          12           9           7
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          14          13          13
23.95 Total new obligations.............         -10          -7          -6
24.40 Unobligated balance available, end 
        of year.........................           4           6           7
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

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

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           8           6           7
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          12           9           7
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          40          38          38
73.10 Total new obligations.............          10           7           6
73.20 Total outlays (gross).............         -12          -7          -6
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          38          38          38
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority           4           3
86.97 Outlays from new permanent 
        authority.......................           8           4           6
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          12           7           6
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....          -8          -6          -7
----------------------------------------------------------------------------

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

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

    In 2000, the budget proposes a $1.7 billion program level that is 
anticipated to be sufficient to accommodate demand from prior-approval 
and preferred sureties in 2000.

    Fees were lowered in 1998, and as a result, SBA expects demand for 
this program to increase in 1999 and 2000. However, due to sufficient 
fund balances and fee revenues anticipated in 2000, an appropriation to 
this account is not needed for 2000 to support the annual program level 
of bond guarantees.

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   73-4156-0-3-376    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................          12             12             9              7
0102  Expense...........................         -12            -10            -7             -6
                                        ------------ --------------  ------------  -------------
0109  Net loss..........................                          2             2              1
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   73-4156-0-3-376    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................          42             42            43             47
1206  Non-Federal assets: Receivables, 
        net.............................
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          42             42            43             47
    LIABILITIES:
2201  Non-Federal liabilities: Accounts 
        payable.........................          40             38            38             37
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          40             38            38             37
    NET POSITION:
3100  Appropriated capital..............         325            329           332            335
3300  Cumulative results of operations..        -323           -325          -326           -326
                                        ------------ --------------  ------------  -------------
3999    Total net position..............           2              4             6              9
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          42             42            44             46
-----------------------------------------------------------------------------------------------

                                

Credit accounts:

                     Business Loans Program Account

    For the cost of direct loans, [$2,200,000] $4,000,000, to be 
available until expended; and for the cost of guaranteed loans, 
[$128,030,000] $144,368,000, as authorized by 15 U.S.C. 631 note, of 
which $45,000,000 shall remain available until September 30, [2000] 
2001: 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, as amended: [Provided further, That of the funds previously 
made available under Public Law 105-135, section 507(g), for the Delta 
Loan program, up to $20,000,000 may be transferred to and merged with 
the appropriations for salaries and expenses:] Provided further, That 
during fiscal year [1999] 2000, 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(d)(1)(B)(ii) of the Small Business Act, as amended] $3,500,000,000: 
Provided further, That during fiscal year [1999] 2000, commitments for 
general business loans authorized under section 7(a) of the Small 
Business Act, as amended, shall not exceed [$10,000,000,000] 
$10,500,000,000 [without prior notification of the Committees on 
Appropriations of the House of Representatives and Senate in accordance 
with section 605 of this Act.] In addition, commitments to guarantee 
loans under section 303(b) of the Small Business Investment Act of 1958, 
as amended, shall not exceed $800,000,000.
     In addition, for administrative expenses to carry out the direct 
and guaranteed loan programs, [$94,000,000] $131,000,000, 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, 1999, as included in Public Law 
105-277, section 101(b).)

        General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-1154-0-1-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
0101  Business loan program, downward 
        reestimates of subsidies........         843         605           1
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-1154-0-1-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............           1           3           5
00.02 Guaranteed loan subsidy...........         208         164         151
00.05 Reestimate of loan guarantee 
        subsidy.........................         284          28
00.06 Interest on reestimates of loan 
        guarantee subsidy...............          25           7
00.09 Administrative expenses...........          99         114         131
                                           ---------   ---------  ----------
10.00   Total new obligations...........         617         316         287
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................          71          72          17
22.00 New budget authority (gross)......         586         259         279
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          28           2
22.21 Unobligated balance transferred to 
        other accounts..................          -3
22.22 Transferred from other accounts...           7
                                           ---------   ---------  ----------

[[Page 1083]]


23.90   Total budgetary resources 
          available for obligation......         689         333         296
23.95 Total new obligations.............        -617        -316        -287
24.40 Unobligated balance available, end 
        of year.........................          72          17           9
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         275         224         279
      Permanent:

60.05   Appropriation (indefinite)......         309          35
68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           2
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         586         259         279
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         113         126         139
73.10 Total new obligations.............         617         316         287
73.20 Total outlays (gross).............        -576        -301        -293
73.45 Adjustments in unexpired accounts.         -28          -2
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         126         139         133
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         153         141         176
86.93 Outlays from current balances.....         112         125         117
86.97 Outlays from new permanent 
        authority.......................         311          35
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         576         301         293
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -2
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         584         259         279
90.00 Outlays...........................         576         301         293
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     1998 actual  1999 est.   2000 est.
Enacted/requested:
  Budget Authority..................         584         259         279
  Outlays...........................         574         301         293
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                  52
  Outlays...........................                                  33
                                    ------------------------------------
Total:
  Budget Authority..................         584         259         331
  Outlays...........................         574         301         326
                                    ====================================

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

----------------------------------------------------------------------------
Identification code 73-1154-0-1-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Micro loans.......................                      23          47
                                           ---------   ---------  ----------
1159    Total direct loan levels........                      23          47
    Direct loan subsidy (in percent):
1320  Micro loans.......................       10.31        9.54        8.54
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...       10.31        9.54        8.54
    Direct loan subsidy budget authority:
1330  Micro loans.......................                       2           4
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..                       2           4
    Direct loan subsidy outlays:
1340  Micro loans.......................           1           1           2
                                           ---------   ---------  ----------
1349    Total subsidy outlays...........           1           1           2
----------------------------------------------------------------------------

    Guaranteed loan levels supportable by subsidy 
                budget authority:
2150  General business--7(a)............       7,523       7,754      10,259
2150  General business--7(a) DELTA......
2150  Section 504.......................       3,000       3,500       3,500
2150  Section 504 DELTA.................
2150  SBIC debentures...................         446         640         800
2150  SBIC participating securities.....         526         800       1,500
2150  Microloan guarantees..............
                                           ---------   ---------  ----------
2159    Total loan guarantee levels.....      11,495      12,694      16,059
    Guaranteed loan subsidy (in percent):
2320  General business--7(a)............        2.14        1.39        1.16
2320  General business--7(a) DELTA......        3.36        2.08        1.83
2320  Section 504.......................        0.00        0.00        0.00
2320  Section 504 DELTA.................        0.72        1.29        1.13
2320  SBIC debentures...................        1.94        1.38        0.00
2320  SBIC participating securities.....        2.20        2.19        1.80
2320  Micro loan guarantees.............        8.15        7.97        8.32
                                           ---------   ---------  ----------
2329    Weighted average subsidy rate...        1.80        1.11        1.11
    Guaranteed loan subsidy budget authority:
2330  General business--7(a)............         279         108         118
2330  General business--7(a) DELTA......
2330  Section 504.......................         166          27
2330  Section 504 DELTA.................
2330  SBIC debentures...................           9           5
2330  SBIC participating securities.....          12          17          26
2330  Micro loan guarantees.............
                                           ---------   ---------  ----------
2339    Total subsidy budget authority..         466         157         144
    Guaranteed loan subsidy outlays:
2340  General business--7(a)............         275         136         130
2340  General business--7(a) DELTA......           2           1           2
2340  Section 504.......................         175          26
2340  Section 504 DELTA.................           2
2340  SBIC debentures...................           9           5
2340  SBIC participating securities.....          12          17          27
2340  Micro loan guarantees.............           1           1           1
                                           ---------   ---------  ----------
2349    Total subsidy outlays...........         476         186         160
----------------------------------------------------------------------------

    Administrative expense data:
3510  Budget authority..................          99          94         131
3580  Outlays from balances.............           3
3590  Outlays from new authority........          96         114         131
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, as amended, 
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. For 2000, the allocation of funding for 
administrative expenses has been adjusted based on a completed cost 
allocation study undertaken to allow SBA to more accurately reflect the 
portion of SBA's Salaries and Expenses operating budget that supports 
these programs.

    Section 7(a) Program.--The Section 7(a) program is SBA's largest 
credit assistance program to serve the financial needs of small 
businesses. Under this program, SBA developed the SBA LowDoc and SBA 
Express programs aimed at increasing small business access to credit, 
especially in ``new markets''. In addition, SBA will identify, under a 
New Market lending company initiative, additional 7(a) lenders and 
target an estimated $300 million in loans of the requested $10.5 billion 
program level to new markets. This program also includes loans made for 
exporting (Export Working Capital Program) and the DELTA and USCAIP 
programs.

    Small Business Investment Companies (SBIC).--This program provides 
the debt and equity capital needed by small businesses to start and 
grow. 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, the SBA 
may guarantee the performance of participating securities issued by 
these companies. A program level of $1.5 billion in participating 
securities and $800 million in debentures is requested.

    America's Private Investment Companies (APIC).--This new program has 
been included in the budget request for the Department of Housing and 
Urban Development (HUD) and requires enabling legislation. The program 
is intended to provide capital for the creation or relocation of 
significant operating businesses in low and moderate income areas. SBA 
will work with HUD to implement this initiative.

[[Page 1084]]

    Low and Moderate Income (LMI) Initiative.--Using SBA's SBIC 
debenture program, SBA will encourage SBIC investments in businesses 
located in inner cities and rural areas, or who draw at least 35 percent 
of their employees from those areas. SBA will propose to provide the 
incentive to make these investments by relaxing program regulations for 
participating SBICs. For 2000, the estimated level for LMI is $300 
million and is included in the SBIC level of $800 million.

    Microloans.--Small business capital needs of less than $25,000 are 
met through SBA's microloan direct and guarantee programs. Using 
established financial intermediaries, SBA provides or guarantees very 
small loans to these businesses to start and grow. A key component of 
this program is SBA's provision of technical assistance grants to 
microlending intermediaries, enabling firms to obtain the necessary 
managerial and business development assistance in order to be 
successful.

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 ``new markets'' 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-- Appropriate finance program effectiveness 
assessment involves the consideration of a number of indicators. First, 
effectiveness can be assessed by loan-making activity levels--the number 
and dollar amount of loans guaranteed by SBA. Second, effectiveness can 
be measured by the health of the loan portfolio--its currency and 
default figures, and the agency's ultimate record on loan recovery. 
Beyond these very tangible indicators of success are the more difficult-
to-measure indicators. These include such things as the economic 
benefits that accrue to the small business, its employees, and the 
community in which it is located.

    During the past three years SBA has focused on quantitative, 
measureable lending goals with particular emphasis on 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.

    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 1998, the SBA approved over 42,000 loans totaling over $8.5 
billion. The section 504 program has also shown impressive growth. In 
1992, the SBA provided about 2,000 financings totaling nearly $560 
million. By 1998, those figures had increased to 4,930 financings for 
$1.8 billion. Performance measures to be used in 2000 to assess progress 
in achieving the above goals follow.

    Section 7(a).--Due to improved performance of the loan portfolio 
coupled with program management improvements, the loan subsidy rate will 
decrease in 2000 to a baseline rate of 1.16 percent. A legislative 
proposal to encourage more small loans would increase this rate by 35 
basis points to 1.51 percent. To meet anticipated demand, the program 
level is proposed to be $10.5 billion.

    Section 504.--The 2000 subsidy rate reflects further improved 504 
loan performance. The current pass through fee charged to borrowers will 
be reduced from .729 to .600 to maintain the baseline subsidy rate at 
zero percent.

    Loan asset sales.--SBA plans to conduct its first asset sale in the 
Spring of 1999 and establish an on-going sales program to assist with 
the servicing and liquidation of its direct and guaranteed portfolios of 
approximately $10 billion. These sales will continue into 2000 and 
beyond and allow for the redeployment of SBA resources to other priority 
program areas.

    Microloan Program.--Due to program improvements and continued stable 
program performance, the subsidy rate for 2000 is lowered to 8.54 
percent. The program level is increased to $60 million to support 
expanding the number of intermediaries to 200 and the associated 
increased demand.

    Small Business Investment Companies (SBICs).--Due to management 
improvements introduced in the mid 1990s coupled with lower defaults and 
higher recoveries than originally anticipated, SBA will see a lowering 
of the subsidy rates for 2000. For the participating securities program, 
the subsidy rate will be lowered to 1.80 percent. For the debentures 
program, the subsidy rate will be lowered to 0 percent, requiring no new 
appropriations.

    As the engine for continued economic growth, small business success 
remains a primary policy concern of the Clinton Administration. Small 
firms represent a significant portion of the Nation's productive 
capacity, produce constant innovations, offer opportunities for the 
under-served, and create jobs. Although it is difficult to attribute a 
causal relationship between SBA assistance and economic growth, factors 
that may contribute to continued economic growth may be identified: 
increased numbers and growth of small businesses, which in turn produce 
increased jobs, revenues and taxes paid, and results in economic and 
social dynamism.

    SBA measures job creation and increased sales from Census/SBA 
longitudinal databases, client or trade association reporting, 
contracted surveys/evaluations, and derivative statistics. Using an 
updated Census/SBA database on firms, SBA will be able to measure more 
effectively job creation and growth by firm size. For instance, between 
1990 and 1995, this database indicated that 76.5 percent of new jobs 
came from small firms with less than 500 employees, and about 49 percent 
came from firms with less than 20 employees. Startups provided about a 
third of the new jobs.

    A Price Waterhouse analysis showed that firms with SBA guaranteed 
loans had an 11 percent larger growth in revenues and payroll than firms 
in the general business population between 1989 and 1994. For firms 
receiving 504 loans, revenues increased 39 percent. However, given the 
absence of a proper control group, the loan guarantee cannot be isolated 
as the sole causative factor. The same methodological problems affect 
the study of Small Business Development Centers (SBDCs) long term 
counseling on sales and jobs; nevertheless, biennial impact assessments 
show that counseled firms have had double the growth rate in sales and 
jobs, compared to the general business population.

    For the 503/504 program, the calculation for jobs created/retained 
every year is based on the dollar amount of debentures sold and reported 
job data. A ratio of one job per $12,855 debenture sold has been 
calculated. For the SBIC program, surveys conducted by the National 
Venture Capital Association and the Investment Advisory Council estimate 
that each $32,500 invested results in one job. For the microloan 
program, a database maintained on jobs created/maintained by microloan 
recipients reflects that the overall performance since the inception of 
the program is 1.6 jobs created or retained per average $10,000 loan.

[[Page 1085]]

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-1154-0-1-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.2  Other services....................          99         114         131
41.0  Grants, subsidies, and 
        contributions...................         518         202         156
                                           ---------   ---------  ----------
99.9    Total new obligations...........         617         316         287
---------------------------------------------------------------------------

                                

                     Business Loans Program Account

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-1154-2-1-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Guaranteed loan subsidy...........                                  52
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                                  52
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  52
23.95 Total new obligations.............                                 -52
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                                  52
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                  52
73.20 Total outlays (gross).............                                 -33
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..                                  19
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                                  33
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                                  52
90.00 Outlays...........................                                  33
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 73-1154-2-1-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Guaranteed loan levels supportable by subsidy 
                budget authority:
2150  General business--7(a)............
2150  New market venture capital........                                 100
                                           ---------   ---------  ----------
2159    Total loan guarantee levels.....                                 100
    Guaranteed loan subsidy (in percent):
2320  General business--7(a)............                                0.35
2320  New market venture capital........                               15.00
                                           ---------   ---------  ----------
2329    Weighted average subsidy rate...                                1.35
    Guaranteed loan subsidy budget authority:
2330  General business--7(a)............                                  37
2330  New market venture capital........                                  15
                                           ---------   ---------  ----------
2339    Total subsidy budget authority..                                  52
    Guaranteed loan subsidy outlays:
2340  General business--7(a)............                                  23
2340  New market venture capital........                                  10
                                           ---------   ---------  ----------
2349    Total subsidy outlays...........                                  33
---------------------------------------------------------------------------

    SBA is proposing two new credit program initiatives in 2000.

    Section 7(a) Program.--In 2000, SBA proposes to provide borrowers 
with affordable small loans and lenders with the incentive to make more 
of those loans. This initiative, which requires legislation, would 
simplify the terms for loans under $150,000 by standardizing the 
guarantee percentage at 80 percent, the upfront fee at 2 percent, and 
the annual fee at 30 basis points. The impact of this proposal is a 35 
basis point increase in the subsidy rate, requiring an additional $37 
million in subsidy budget authority for the proposed $10.5 billion 
program volume.

    New Markets Venture Capital Program.--SBA proposes to establish a 
venture capital program in 2000 to encourage investment in small 
businesses located in inner cities and rural areas. This program will be 
structured to provide the financial and other incentives needed to 
encourage investment in these ``new market'' areas. A level of $100 
million in new debentures is proposed.

                 Business Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4148-0-3-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................          10          30          60
00.02 Interest on Treasury borrowing....          24          15          14
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal (1 level)............          34          45          74
08.01 Negative subsidy from loan asset 
        sales...........................                      10           1
08.04 Payment to liquidating account to 
        purchase loan assets............                     550          41
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal (1 level)............                     560          42
                                           ---------   ---------  ----------
10.00   Total new obligations...........          34         605         116
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         260         271
22.00 New financing authority (gross)...          64         635         152
22.40 Capital transfer to general fund..                    -271
22.60 Redemption of debt................         -19         -30         -36
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         305         605         116
23.95 Total new obligations.............         -34        -605        -116
24.40 Unobligated balance available, end 
        of year.........................         271
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..          26          15           9
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...          31         617         129
68.10   Change in receivables from 
          program account...............           7           3          14
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................          38         620         143
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................          64         635         152
----------------------------------------------------------------------------

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

72.40   Obligated balance, start of year          34          38          19
72.95   Receivables from program account           9          16          19
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............          43          54          38
73.10 Total new obligations.............          34         605         116
73.20 Total financing disbursements 
        (gross).........................         -23        -621        -102
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..          38          19          18
74.95   Receivables from program account          16          19          33
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................          54          38          51
87.00 Total financing disbursements 
        (gross).........................          23         621         102
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: Payments from 
            program account.............                      -1          -2
          Non-Federal sources:
88.40       Repayments of principal, net         -13         -31         -40
88.40       Interest received on loans..         -18         -35         -46
88.40       Proceeds from loan asset 
              sales.....................                    -550         -41
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -31        -617        -129
88.95 Change in receivables from program 
        accounts........................          -7          -3         -14
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............          26          15           9
90.00 Financing disbursements...........          -8           4         -27
---------------------------------------------------------------------------

[[Page 1086]]



               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4148-0-3-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
1131  Direct loan obligations exempt 
        from limitation.................          10          40          60
                                           ---------   ---------  ----------
1150    Total direct loan obligations...          10          40          60
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         109          99         108
1231  Disbursements: Direct loan 
        disbursements...................           7          30          30
1251  Repayments: Repayments and 
        prepayments.....................         -14         -16          -8
1264  Write-offs for default: Other 
        adjustments, net................          -3          -5          -6
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          99         108         124
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, as amended, 
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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Investments in US securities:

1106    Federal assets: Receivables, net         310            328           319            319
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..         123             99            78             83
1405    Allowance for subsidy cost (-)..         -54             -6           -36            -56
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....          69             93            42             27
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         379            421           361            346
    LIABILITIES:
2104  Federal liabilities: Resources 
        payable to Treasury.............         379            421           361            346
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         379            421           361            346
    NET POSITION:
3100  Appropriated capital..............
                                        ------------ --------------  ------------  -------------
3999    Total net position..............
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         379            421           361            346
-----------------------------------------------------------------------------------------------

                                

               Business Guaranteed Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4149-0-3-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Default claims....................         416         425         465
00.05 Other Expenses....................           3          15          40
00.06 CPC...............................          64          25         100
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal (1 level)............         483         465         605
08.02 Payment of downward reestimate to 
        receipt account.................         588         580
08.04 Payment of negative subsidy to 
        receipt account.................                      15
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal (1 level)............         588         595
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,071       1,060         605
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................       1,463       1,367       1,464
22.00 New financing authority (gross)...         975       1,157         566
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       2,438       2,524       2,030
23.95 Total new obligations.............      -1,071      -1,060        -605
24.40 Unobligated balance available, end 
        of year.........................       1,367       1,464       1,425
----------------------------------------------------------------------------

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

68.00   Offsetting collections (cash)...       1,155       1,151         556
68.10   Change in receivables from 
          program account...............        -180           6          10
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................         975       1,157         566
----------------------------------------------------------------------------

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

72.40   Obligated balance, start of year        -150        -157         122
72.95   Receivables from program account         356         176         182
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............         206          19         304
73.10 Total new obligations.............       1,071       1,060         605
73.20 Total financing disbursements 
        (gross).........................      -1,258        -775        -512
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..        -157         122         205
74.95   Receivables from program account         176         182         192
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................          19         304         397
87.00 Total financing disbursements 
        (gross).........................       1,258         775         512
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
          Federal sources:
88.00       Payments from program 
              account...................        -167        -151        -160
88.00       Upward restimate............        -284         -28
88.00       Interest on reestimate......         -25          -7
88.25     Interest on uninvested funds..        -244         -60         -65
          Non-Federal sources:
88.40       Fees........................        -356        -183        -203
88.40       Proceeds from loan asset 
              sales.....................                    -700        -100
88.40       Recoveries..................         -79         -22         -28
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -1,155      -1,151        -556
88.95 Change in receivables from program 
        accounts........................         180          -6         -10
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........         104        -376         -44
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4149-0-3-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........      13,000      13,500      14,800
2112  Uncommitted loan guarantee 
        limitation......................      -3,232        -237
2131  Guaranteed loan commitments exempt 
        from limitation.................       1,202       1,507       1,571
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................      10,970      14,770      16,371
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........      30,207      33,695      37,734
2231  Disbursements of new guaranteed 
        loans...........................       9,671       7,336       7,534
2251  Repayments and prepayments........      -5,767      -2,872      -2,949
2261  Adjustments: Terminations for 
        default that result in loans 
        receivable......................        -416        -425        -465
                                           ---------   ---------  ----------
2290    Outstanding, end of year........      33,695      37,734      41,854
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..      27,234      29,713      33,058
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......         870         834         134
2331    Disbursements for guaranteed 
          loan claims...................         416         425         465
2351    Repayments of loans receivable..        -209        -212        -282
2361    Write-offs of loans receivable..        -195        -213        -217
2364    Other adjustments, net..........         -48        -700        -100
                                           ---------   ---------  ----------
2390      Outstanding, end of year......         834         134
---------------------------------------------------------------------------

                     LIMITATIONS ON GUARANTEED LOANS

                                       FY 1998     FY 1999     FY 2000
Limitation on guaranteed loans made 
    by private lenders:
  7(a)..............................      10,000      10,000      10,500

[[Page 1087]]

  504...............................       3,000       3,500       3,500
  SBIC--participating securities....           0           0           0
  SBIC--debentures..................           0           0         800
  7(a) DELTA........................           0           0           0
  504 CDC DELTA.....................           0           0           0
  Microloan guarantees..............           0           0           0
                                    ------------------------------------
      Total, limitations on 
        guaranteed loans............      13,000      13,500      14,800
                                    ====================================
Uncommitted loan guarantee 
    limitation:
  7(a)..............................     (1,469)       (237)           0
  504...............................     (1,763)           0           0
  SBIC--participating securities....           0           0           0
  SBIC--debentures..................           0           0           0
  7(a) DELTA........................           0           0           0
  504 CDC DELTA.....................           0           0           0
  Microloan guarantees..............           0           0           0
                                    ------------------------------------
      Total, uncommitted loan 
        guarantee limitation........     (3,232)       (237)           0
                                    ====================================
Guaranteed loan commitments exempt 
    from limitation:
  7(a)..............................           0           0           0
  SBIC--participating securities....         700         800       1,500
  SBIC--debentures..................         462         640           0
  7(a) DELTA........................          31          50          50
  504 CDC DELTA.....................           5           5           5
  Microloan guarantees..............           4          12          16
                                    ------------------------------------
      Total, guaranteed loan 
        commitments exempt from 
        limitation..................       1,202       1,507       1,571
                                    ====================================
      Total, guaranteed loan 
        commitments.................      10,970      14,770      16,371
                                    ====================================

    As required by the Federal Credit Reform Act of 1990, as amended, 
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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....       1,291          1,209         1,326          1,326
        Investments in US securities:
1106      Receivables, net..............         168            221           173            176
1107      Advances and prepayments......                         54            48             36
      Net value of assets related to 
          post-1991 acquired defaulted 
          guaranteed loans receivable:

1501    Defaulted guaranteed loans 
          receivable, gross.............         870            834           134
1502    Interest receivable.............          46             38            35             31
1505    Allowance for subsidy cost (-)..        -340           -215          -112            -78
                                        ------------ --------------  ------------  -------------
1599      Net present value of assets 
            related to defaulted 
            guaranteed loans............         576            657            57            -47
1901  Other Federal assets: Other assets                        245           242            238
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       2,035          2,386         1,846          1,729
    LIABILITIES:
2204  Non-Federal liabilities: 
        Liabilities for loan guarantees.       2,035          2,386         1,846          1,729
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       2,035          2,386         1,846          1,729
    NET POSITION:
3100  Appropriated capital..............
                                        ------------ --------------  ------------  -------------
3999    Total net position..............
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       2,035          2,386         1,846          1,729
-----------------------------------------------------------------------------------------------

                                

               Business Guaranteed Loan Financing Account

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4149-2-3-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Default claims....................                                  11
                                           ---------   ---------  ----------
10.00   Total new obligations...........                                  11
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...                                  25
23.95 Total new obligations.............                                 -11
24.40 Unobligated balance available, end 
        of year.........................                                  14
----------------------------------------------------------------------------

    New financing authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............                                  25
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 Total new obligations.............                                  11
73.20 Total financing disbursements 
        (gross).........................                                 -10
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..                                   1
87.00 Total financing disbursements 
        (gross).........................                                  10
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Payments from program account.                                 -33
88.40     Fees..........................                                   8
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........                                 -25
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........                                 -15
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4149-2-3-376      1998 actual   1999 est.   2000 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.................                                 100
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................                                 100
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........
2231  Disbursements of new guaranteed 
        loans...........................                                  63
2251  Repayments and prepayments........                                  -6
2261  Adjustments: Terminations for 
        default that result in loans 
        receivable......................                                 -10
                                           ---------   ---------  ----------
2290    Outstanding, end of year........                                  47
----------------------------------------------------------------------------

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

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

2310    Outstanding, start of year......
2331    Disbursements for guaranteed 
          loan claims...................                                  10
2351    Repayments of loans receivable..                                  -3
2361    Write-offs of loans receivable..                                  -1
2364    Other adjustments, net..........
                                           ---------   ---------  ----------
2390      Outstanding, end of year......                                   6
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   73-4149-2-3-376    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....

[[Page 1088]]

        Investments in US securities:
1106      Receivables, net..............
1107      Advances and prepayments......
      Net value of assets related to 
          post-1991 acquired defaulted 
          guaranteed loans receivable:

1501    Defaulted guaranteed loans 
          receivable, gross.............                                                       6
1502    Interest receivable.............
1505    Allowance for subsidy cost (-)..
                                        ------------ --------------  ------------  -------------
1599      Net present value of assets 
            related to defaulted 
            guaranteed loans............                                                       6
1901  Other Federal assets: Other assets
                                        ------------ --------------  ------------  -------------
1999    Total assets....................                                                       6
    LIABILITIES:
2204  Non-Federal liabilities: 
        Liabilities for loan guarantees.                                                       6
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............                                                       6
    NET POSITION:
3100  Appropriated capital..............
                                        ------------ --------------  ------------  -------------
3999    Total net position..............
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position                                                       6
-----------------------------------------------------------------------------------------------

                                

                 Business Loan Fund Liquidating Account 

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4154-0-3-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Interest Expense to Treasury......          61          60          59
00.02 Care and Preservation of 
        collateral & recoverable 
        expenses........................          16
00.03 Msc. program expenses related to 
        Business program assistance.....          40          79          77
00.04 Msc progam expenses related to 
        Investment company assistance...          25
00.05 Guaranteed loan default claims....          76          61          41
                                           ---------   ---------  ----------
10.00   Total new obligations...........         218         200         177
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         368         273
22.00 New budget authority (gross)......         539         200         177
22.21 Unobligated balance transferred to 
        other accounts..................          -7
22.40 Capital transfer to general fund..        -367        -273
22.60 Redemption of debt................         -42
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         491         200         177
23.95 Total new obligations.............        -218        -200        -177
24.40 Unobligated balance available, end 
        of year.........................         273
----------------------------------------------------------------------------

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

68.00   Offsetting collections (cash)...         539         956         428
68.27   Capital transfer to general fund                    -716        -212
68.47   Portion applied to debt 
          reduction.....................                     -40         -39
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................         539         200         177
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year         621         506         331
73.10 Total new obligations.............         218         200         177
73.20 Total outlays (gross).............        -333        -375        -348
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..         506         331         160
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................         333         139         136
86.98 Outlays from permanent balances...                     236         212
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         333         375         348
----------------------------------------------------------------------------

       Offsets:
           Against gross budget 
             authority and outlays:
             Offsetting collections 
               (cash) from:
88.00        Transfer from financing 
               account 73-4148......                    -550         -41
               Loan repayments:
               Non-Federal sources:
88.40            Financing programs-
                   principal........        -142        -138        -135
88.40            Investment 
                   programs-principal
                   .................         -23         -17         -16
88.40            Interest Income-
                   Business.........         -55         -46         -40
88.40            Interest income-
                   Investment.......          -9          -7          -5
               Interest income:
88.40          Net changes in 
                 Receivables from 
                 the Public Business         -42         -35         -33
88.40          Net changes in 
                 Receivables from 
                 the public-
                 Investment.........         -82          -4          -3
88.40          Sale of acquired 
                 collateral-business         -26         -21         -19
88.40          Principal collections 
                 on judgements, 
                 notes,and other 
                 receivables-
                 Business...........         -42         -41         -39
88.40          Principal collections 
                 on judgements and 
                 other receivables-
                 Investment.........         -37         -35         -33
88.40          Examination & License 
                 fee income.........          -1          -1          -1
88.40          collection on FFB 
                 loans..............         -42         -40         -39
88.40          Other Income-both 
                 Business and 
                 Investment.........         -38         -21         -24
                                    ------------------------------------
88.90            Total, offsetting 
                   collections 
                   (cash)...........        -539        -956        -428
------------------------------------------------------------------------
       Net budget authority and 
         outlays:
89.00    Budget authority...........                    -756        -251
90.00    Outlays....................        -206        -581         -80
------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4154-0-3-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
          Business Loan Fund, Direct 
              Loans
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         973         757          60
1232  Disbursements: Purchase of loans 
        assets from the public..........          55          62          41
1251  Repayments: Repayments and 
        prepayments.....................        -171        -155         -22
1262  Adjustments: Discount on loan 
        asset sales to the public or 
        discounted......................                    -550         -59
1263  Write-offs for default: Direct 
        loans...........................        -100         -54         -20
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         757          60
----------------------------------------------------------------------------

          Small Business Investment 
              Company, Direct Loans
          Section 503 Development 
              Company, Direct Loans
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         275         233         193
      Repayments:

1251    Repayments and prepayments......         -23         -18         -15
1252    Proceeds from loan asset sales 
          to the public or discounted...         -19         -22         -24
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         233         193         154
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4154-0-3-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
          Business Loan Fund, Loan 
              Guarantees
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........       5,005       3,804       3,106
2231  Disbursements of new guaranteed 
        loans...........................           1           1           1
2251  Repayments and prepayments........      -1,116        -630        -532
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....         -76         -61         -41
2264    Other adjustments, net..........         -10          -8          -7
                                           ---------   ---------  ----------
2290    Outstanding, end of year........       3,804       3,106       2,527
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..       3,302       2,702       2,198
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......       1,390       1,466       1,527
2331    Disbursements for guaranteed 
          loan claims...................          76          61          41
                                           ---------   ---------  ----------

[[Page 1089]]


2390      Outstanding, end of year......       1,466       1,527       1,568
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, as amended, 
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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................         191            102           220            110
0102  Expense...........................        -134            -99          -160           -120
                                        ------------ --------------  ------------  -------------
0109  Net loss..........................          57              3            60            -10
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   73-4154-0-3-376    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         794            787           866            466
        Investments in US securities:
1104      Agency securities, par........         214            283           286            186
1107      Advances and prepayments......           7              6             5              5
      Non-Federal assets:

1206    Receivables, net................         780            480           441            745
1207    Advances and prepayments........           7              8             7              7
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............       1,325            990           253            154
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................        -787           -626           -56            -36
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................         538            364           197            118
1901  Other Federal assets: Other assets          37             29            23             23
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       2,377          1,957         1,825          1,550
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................       1,694          1,325         1,166          1,030
2102    Interest payable................          96             69            96             96
2103    Debt to the FFB.................         325            233           227            227
      Non-Federal liabilities:

2201    Accounts payable................          15             14            15             15
2204    Liabilities for loan guarantees.          72             31            73             73
2207    Other Liabilities...............         168            285           248            109
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       2,377          1,957         1,825          1,550
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       2,370          1,957         1,825          1,550
-----------------------------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4154-0-3-376      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
42.0  Insurance claims and indemnities..         157         140         118
43.0  Interest and dividends............          61          60          59
                                           ---------   ---------  ----------
99.9    Total new obligations...........         218         200         177
---------------------------------------------------------------------------

                                

                     Disaster Loans Program Account

    For the cost of direct loans authorized by section 7(b) of the Small 
Business Act, as amended, [$76,329,000] $39,400,000, 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, as amended.
    In addition, for administrative expenses to carry out the direct 
loan program, [$116,000,000] $86,000,000, which may be transferred to 
and merged with appropriations for Salaries and Expenses[, including 
$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]. (Departments of 
Commerce, Justice, and State, the Judiciary, and Related Agencies 
Appropriations Act, 1999, as included in Public Law 105-277, section 
101(b).)
    For an additional amount for the cost of direct loans, [$71,000,000] 
$158,000,000, to remain available until expended to subsidize additional 
gross obligations for the principal amount of direct loans: 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; and for 
administrative expenses to carry out the disaster loan program, an 
additional [$30,000,000] $75,000,000, to remain available until 
expended, which may be transferred to and merged with appropriations for 
[``]Salaries and Expenses['']: Provided further, That the entire amount 
is designated by the Congress as an emergency requirement pursuant to 
section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended: Provided further, That the entire 
amount shall be available only to the extent that an official budget 
request, that includes designation of the entire amount of the request 
as an emergency requirement as defined in the Balanced Budget and 
Emergency Deficit Control Act of 1985, as amended, is transmitted by the 
President to the Congress. (Omnibus Consolidated and Emergency 
Supplemental Appropriations Act, 1999, as included in Public Law 105-
277, Division B, Title IV, chapter 2.)

        General Fund Credit Receipt Accounts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-1152-0-1-453      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
0101  Disaster loan program, downward 
        reestimates of subsidies........                     236
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-1152-0-1-453      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............         150         182          49
00.05 Upward reestimate of direct loan 
        subsidy.........................          51           6
00.06 Interest on direct loan subsidy...          10           3
00.09 Administrative expense............         156         116          86
                                           ---------   ---------  ----------
10.00   Total new obligations...........         367         307         135
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         189          81
22.00 New budget authority (gross)......         234         206         125
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          26          20          10
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         449         307         135
23.95 Total new obligations.............        -367        -307        -135
24.40 Unobligated balance available, end 
        of year.........................          81
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................         173         192         125
40.15   Appropriation (contingency).....                     101         233
40.60   Contingent emergency 
          appropriation not available 
          for obligations...............                    -101        -233
42.00   Transferred from USDA...........                       5
                                           ---------   ---------  ----------
43.00     Appropriation (total).........         173         197         125
      Permanent:

60.05   Appropriation (indefinite)......          61           9
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         234         206         125
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          71          59          83
73.10 Total new obligations.............         367         307         135
73.20 Total outlays (gross).............        -354        -263        -158
73.45 Adjustments in unexpired accounts.         -26         -20         -10
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          59          83          50
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority         170         152          96
86.93 Outlays from current balances.....         184         111          62
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         354         263         158
----------------------------------------------------------------------------

[[Page 1090]]



    Net budget authority and outlays:
89.00 Budget authority..................         234         206         125
90.00 Outlays...........................         354         263         158
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 73-1152-0-1-453      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct Disaster Loans.............         639         358         176
                                           ---------   ---------  ----------
1159    Total direct loan levels........         639         358         176
    Direct loan subsidy (in percent):
1320  Subsidy rate......................       23.46       22.36       22.20
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...       23.46       22.36       22.20
    Direct loan subsidy budget authority:
1330  Disaster subsidy budget authority.         211          80          39
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..         211          80          39
    Direct loan subsidy outlays:
1340  Disaster subsidy outlays..........         198         147          72
                                           ---------   ---------  ----------
1349    Total subsidy outlays...........         198         147          72
----------------------------------------------------------------------------

    Administrative expense data:
3510  Budget authority..................         156         116          86
3590  Outlays from new authority........         156         116          86
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, as amended, 
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.

    1999 Budget Authority.--The 1999 Omnibus Appropriations Act provided 
$76.0 million for disaster loan subsidy and $116.0 million for 
administrative support. The Act also provided $71.0 million for disaster 
loan subsidy and $30.0 million for administrative support as contingent 
emergency appropriations. These contingent amounts are available for 
release by the President at the request of SBA. The Budget anticipates 
the need for these contingent emergency appropriations by including an 
allowance estimating their use.

    2000 Budget Authority.--For 2000, SBA requests funding to support 
the 10-year average loan volume, $934.0 million, excluding the effects 
of the Northridge earthquake. Due to the unpredictable nature of natural 
disasters, the program has been principally financed through emergency 
funding in prior years. As such, SBA proposes that a portion of the 
appropriation requirement for loan subsidy and administrative expenses 
be funded as regular appropriations against the discretionary funding 
cap. SBA requests the remaining funding (approximately 65 percent) as 
contingent emergency funding, consistent with past funding practices. 
For loan subsidy expenses, $39.4 million is requested as regular 
discretionary appropriations and $158.0 million is requested as 
contingent emergency appropriations. For administrative expenses, $86.0 
million is requested as regular discretionary appropriations and $75.0 
million is requested as contingent emergency appropriations.

    To increase preparedness and reduce the costs of future natural 
disasters, SBA will propose legislation to create a Pre-Disaster 
Mitigation Pilot Loan Program. The program will use up to $15 million of 
the requested disaster loan program authority to assist non-farm small 
businesses located in communities participating in FEMA's ``Project 
Impact'' program. They will be provided low-interest, long-term disaster 
loans up to $50,000 to finance protective devices or mitigation measures 
such as retaining walls. This pilot program would not require the 
appropriation of additional funds.

Program Performance

    Over the 45-year history of the program, SBA has helped more than 
1.4 million disaster victims by providing more than $26.7 billion in 
disaster assistance. Over 90 percent has been to borrowers that 
otherwise would not have been able to rebuild. During 1998 alone, SBA 
approved 30,000 disaster loans, exceeding $728 million 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.

    SBA will coordinate with FEMA and other Federal, state and local 
officials as appropriate to ensure that SBA's field presence is 
established in the disaster area within 3 days of a disaster, for 98 
percent of declared events. SBA will recruit, employ and train 
sufficient staff to increase the number of disaster loan applications 
processed within 21 days of receipt from 77 percent in 1998 to 80 
percent in 2000. In cooperation with SBA's regional/district offices, 
the Agency will meet with local bankers to emphasize bridge lending to 
businesses.

    As part of our efforts to enhance the efficiency of disaster 
assistance, SBA will develop a standardized loan officer training 
curriculum, conduct quality reviews in each Disaster Area Office, begin 
the process of automating the disaster loan making process, and review 
the current processes for required policy, organizational, and 
procedural changes. SBA and FEMA will continue efforts to develop a 
joint loss inspection report to be used in a pilot test, evaluate the 
results, and make recommendations on their findings.

    Based on efforts to improve commercial and home loan servicing, a 
number of goals have been set, subject to the availability of staff. To 
ameliorate commercial loan servicing, SBA intends to improve the 
currency rate to 96 percent on all SBA serviced loans, increase loan 
receipts to 16 percent on all SBA serviced loans, review 100 percent of 
all delinquent accounts each week, and reduce turn around times on all 
servicing actions to 2 days. For disaster home servicing, SBA intends to 
improve the currency rate to 95 percent, reduce the delinquency rate to 
2 percent, increase loan receipts to

[[Page 1091]]

16.2 percent, and review 100 percent of all delinquent accounts each 
week. To improve loan liquidation, SBA will increase the number of cases 
closed each month to 360 and increase average collections on loans in 
liquidation by 20 percent.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-1152-0-1-453      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
25.2  Other services....................         156         116          86
41.0  Grants, subsidies, and 
        contributions...................         211         191          49
                                           ---------   ---------  ----------
99.9    Total new obligations...........         367         307         135
---------------------------------------------------------------------------

                                

                 Disaster Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4150-0-3-453      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................         639         814         221
00.02 Interest on Treasury borrowing....         575         363         388
00.10 Asset sale payment to liquidating 
        account.........................                      30         260
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal (1 level)............       1,214       1,207         869
08.02 Payment of downward reestimate to 
        receipt account.................         190         195
08.03 Payment of interest on downward 
        reestimates to receipt account..          64          41
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal (1 level)............         254         236
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,468       1,443         869
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................       4,003       3,956       2,961
22.00 New financing authority (gross)...       3,192       1,565       1,234
22.60 Redemption of debt................      -1,771      -1,117      -1,164
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       5,424       4,404       3,031
23.95 Total new obligations.............      -1,468      -1,443        -869
24.40 Unobligated balance available, end 
        of year.........................       3,956       2,961       2,162
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..       1,917         632         172
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...       1,333         922       1,108
68.10   Change in receivables from 
          program account...............         -58          11         -46
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................       1,275         933       1,062
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................       3,192       1,565       1,234
----------------------------------------------------------------------------

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

72.40   Obligated balance, start of year         992         990         907
72.95   Receivables from program account          97          39          50
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............       1,089       1,029         957
73.10 Total new obligations.............       1,468       1,443         869
73.20 Total financing disbursements 
        (gross).........................      -1,528      -1,515      -1,208
      Unpaid obligations, end of year:

74.40   Obligated balance, end of year..         990         907         614
74.95   Receivables from program account          39          50           4
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................       1,029         957         618
87.00 Total financing disbursements 
        (gross).........................       1,528       1,515       1,208
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
          Federal sources:
88.00       Payments from program 
              account...................        -138        -138         -72
88.00       Payments from program 
              account--reestimates......         -60          -9
          Non-Federal sources:
88.40       Repayments of principal, net        -521        -335        -362
88.40       Collection of misc. 
              receivables...............        -409
88.40       Interest received on loans..        -205        -410        -414
88.40       Proceeds from loan sales....                     -30        -260
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -1,333        -922      -1,108
88.95 Change in receivables from program 
        accounts........................          58         -11          46
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............       1,917         632         172
90.00 Financing disbursements...........         195         593         100
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4150-0-3-453      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
1131  Direct loan obligations exempt 
        from limitation.................         639         814         221
                                           ---------   ---------  ----------
1150    Total direct loan obligations...         639         814         221
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       5,630       5,605       6,148
      Disbursements:

1231    Direct loan disbursements.......         595         979         510
1233    Purchase of loans assets from a 
          liquidating account...........                      30         260
      Repayments:

1251    Repayments and prepayments......        -521        -335        -362
1252    Proceeds from loan asset sales 
          to the public or discounted...                     -30        -260
1264  Write-offs for default: Other 
        adjustments, net................         -99        -101        -110
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       5,605       6,148       6,186
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, as amended, 
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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

        Investments in US securities:
          Receivables, net:
1106        Program account.............         146             39            50              4
1106        Interest/Accounts 
              Receivables...............       1,984          5,247         5,357          5,469
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..       7,891          5,605         6,142          6,171
1405    Allowance for subsidy cost (-)..        -192           -973        -1,248         -1,254
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....       7,699          4,632         4,894          4,917
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       9,829          9,918        10,301         10,390
    LIABILITIES:
2104  Federal liabilities: Resources 
        payable to Treasury.............       9,683          9,918        10,301         10,390
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       9,683          9,918        10,301         10,390
    NET POSITION:
3100  Appropriated capital..............         146
                                        ------------ --------------  ------------  -------------
3999    Total net position..............         146
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       9,829          9,918        10,301         10,390
-----------------------------------------------------------------------------------------------

                                

                 Disaster Loan Fund Liquidating Account 

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4153-0-3-453      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------

    Obligations by program activity:
01.01 Interest expense to Treasury......          59          47          21
01.03 Other expenses....................           8           6           6
                                           ---------   ---------  ----------
10.00   Total new obligations...........          67          53          27
----------------------------------------------------------------------------

[[Page 1092]]



    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year...................         221         196
22.00 New budget authority from 
        offsetting collections (gross)..         260         241         416
22.40 Capital transfer to general fund..        -218        -384        -389
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         263          53          27
23.95 Total new obligations.............         -67         -53         -27
24.40 Unobligated balance available, end 
        of year.........................         196
----------------------------------------------------------------------------

    New budget authority (gross), detail:
68.00 Spending authority from offsetting 
        collections (gross): Offsetting 
        collections (cash)..............         260         241         416
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance, start of year          70          60          54
73.10 Total new obligations.............          67          53          27
73.20 Total outlays (gross).............         -75         -59         -33
74.40 Unpaid obligations, end of year: 
        Obligated balance, end of year..          60          54          48
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          67          53          27
86.98 Outlays from permanent balances...           8           6           6
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          75          59          33
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
          Non-Federal sources:
88.40       Loan repayments.............        -187        -160        -132
88.40       Interest income.............         -64         -46         -21
88.40       Other income................          -9          -5          -3
88.40       Proceeds from loan asset 
              sales.....................                     -30        -260
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -260        -241        -416
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................        -185        -182        -383
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4153-0-3-453      1998 actual   1999 est.   2000 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       1,457       1,254       1,041
      Repayments:

1251    Repayments and prepayments......        -187        -160        -132
1252    Proceeds from loan asset sales 
          to the public or discounted...                     -30        -260
1263  Write-offs for default: Direct 
        loans...........................         -16         -23         -18
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       1,254       1,041         631
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, as amended, 
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    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
0101  Revenue...........................          72             64            52            103
0102  Expense...........................         -78            -93           -53            -90
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............          -6            -29            -1             13
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   73-4153-0-3-453    1997 actual    1998 actual     1999 est.      2000 est.
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    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................         290            256           235            235
1206  Non-Federal assets: Receivables, 
        net.............................          75             64            39             39
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............       1,457          1,254         1,041            633
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................        -107           -114           -92            -73
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................       1,350          1,140           949            560
      Other Federal assets:

1801    Cash and other monetary assets..           4                            1              1
1803    Property, plant and equipment, 
          net...........................                          1
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       1,719          1,461         1,224            835
    LIABILITIES:
2102  Federal liabilities: Interest 
        payable.........................          68             59            46             21
2201  Non-Federal liabilities: Accounts 
        payable.........................       1,651          1,402         1,102          1,102
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       1,719          1,461         1,148          1,123
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       1,719          1,461         1,148          1,123
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               Object Classification (in millions of dollars)

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Identification code 73-4153-0-3-453      1998 actual   1999 est.   2000 est.
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25.2  Other services....................           8           6           6
43.0  Interest and dividends............          59          47          21
                                           ---------   ---------  ----------
99.9    Total new obligations...........          67          53          27
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          Pollution Control Equipment Fund Liquidating Account

               Program and Financing (in millions of dollars)

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Identification code 73-4147-0-3-376      1998 actual   1999 est.   2000 est.
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    Obligations by program activity:
00.01 Direct program....................           1           3           1
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          42.0).........................           1           3           1
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    Budgetary resources available for obligation:
      Unobligated balance available, start of year:

21.40   Unobligated balance available, 
          start of year.................          13          12
21.40   Unobligated balance available, 
          start of year.................                       2
                                           ---------   ---------  ----------
21.99   Total unobligated balance, start 
          of year.......................          13          14
22.40 Capital transfer to general fund..                     -11
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          13           3
23.95 Total new obligations.............          -1          -3          -1
      Unobligated balance available, end of year:

24.40   Unobligated balance available, 
          end of year...................          12
24.40   Unobligated balance available, 
          end of year...................           2
                                           ---------   ---------  ----------
24.99   Total unobligated balance, end 
          of year.......................          14
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    Change in unpaid obligations:
73.10 Total new obligations.............           1           3           1
73.20 Total outlays (gross).............          -1          -3
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    Outlays (gross), detail:
86.98 Outlays from permanent balances...           1           3
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    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................          -1           3
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             Status of Guaranteed Loans (in millions of dollars)

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Identification code 73-4147-0-3-376      1998 actual   1999 est.   2000 est.
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    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........          76          57          46

[[Page 1093]]

      Adjustments:

2261    Terminations for default that 
          result in loans receivable....
2264    Other adjustments, net..........         -19         -11         -11
                                           ---------   ---------  ----------
2290    Outstanding, end of year........          57          46          35
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    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..          57          46          35
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    Addendum:
      Cumulative balance of defaulted guaranteed 
          loans that result in loans receivable:

2310    Outstanding, start of year......          46          45          45
2331    Disbursements for guaranteed 
          loan claims...................
2351    Repayments of loans receivable..          -1                      -1
                                           ---------   ---------  ----------
2390      Outstanding, end of year......          45          45          44
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    Public Law 94-305 established this fund to alleviate the adverse 
impact of pollution regulations on small businesses. As a result of the 
elimination of tax exempt financing associated with the Pollution 
Control Guaranteed program, no new activity is anticipated for this 
program.

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

                        Statement of Operations (in millions of dollars)

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Identification code   73-4147-0-3-376    1997 actual    1998 actual     1999 est.      2000 est.
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0101  Revenue...........................           2
0102  Expense...........................           1              3
                                        ------------ --------------  ------------  -------------
0109  Net income or loss (-)............           3              3
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                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   73-4147-0-3-376    1997 actual    1998 actual     1999 est.      2000 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................          13             14            11             11
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             7              6
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          28             29            27             26
    LIABILITIES:
2104  Federal liabilities: Resources 
        payable to Treasury.............          18             22            21             21
2201  Non-Federal liabilities: Accounts 
        payable.........................
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          18             22            21             21
    NET POSITION:
3100  Appropriated capital..............
3300  Cumulative results of operations..
3600  Other.............................          10              7             6              6
                                        ------------ --------------  ------------  -------------
3999    Total net position..............          10              7             6              6
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          28             29            27             27
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         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, 1999, as included in Public Law 105-277, section 
101(b).)

                                

                      General Fund Receipt Accounts

                           (in millions of dollars)

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                                         1998 actual   1999 est.   2000 est.
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Offsetting receipts from the public:
  73-272130  Disaster loan program, 
    downward reestimates of subsidies...                     236
  73-272230  Business loan program, 
    Downward resstimates of subsidies...         843         605           1
                                           ---------   ---------  ----------
General Fund Offsetting receipts from 
 the public.............................         843         841           1
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