Appendix - Small Business Administration

[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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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
---------------------------------------------------------------------------

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)

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.
-----------------------------------------------------------------------------------------------
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
-----------------------------------------------------------------------------------------------

Object Classification (in millions of dollars)

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

Pollution Control Equipment Fund Liquidating Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 1 3 1
--------- --------- ----------
10.00 Total obligations (object class
42.0)......................... 1 3 1
----------------------------------------------------------------------------

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
----------------------------------------------------------------------------

Change in unpaid obligations:
73.10 Total new obligations............. 1 3 1
73.20 Total outlays (gross)............. -1 -3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from permanent balances... 1 3
----------------------------------------------------------------------------

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

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4147-0-3-376 1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
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
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 57 46 35
----------------------------------------------------------------------------

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
---------------------------------------------------------------------------

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)

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
-----------------------------------------------------------------------------------------------

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)

----------------------------------------------------------------------------
1998 actual 1999 est. 2000 est.
----------------------------------------------------------------------------
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
---------------------------------------------------------------------------