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

    [[Page 1079]]

                          SMALL BUSINESS ADMINISTRATION

         The budget requests $1,062 million in new budget authority for the
    Small Business Administration (SBA). This funding request represents a
    very strategic investment of the Federal budget dollar. Therefore, we
    characterized the theme of our 2001 budget as ``Managing for Results.''
    The Administration's spending plans for 2000 and 2001 have been
    developed in conjunction with the Government Performance and Results Act
    (GPRA) and provide better service and more assistance to small
    businesses as we enter the 21st century.

         SBA has identified two broad goals: helping small businesses
    succeed and modernization. The first goal reflects an emphasis on
    increasing assistance and access to individuals and firms in new market
    areas and involves providing a wide range of services and programs
    including capital, credit, technical assistance, training, education,
    and procurement assistance. The second goal emphasizes improvements in
    the delivery of services to customers by upgrading the systems that
    support programs, by investing in training to enhance skill levels of
    employees, and by improving the overall operation of the Agency.

        This budget includes a comprehensive new markets agenda to better
    serve small businesses in these areas including: an expanded new markets
    venture capital program of $150 million in debentures with $30 million
    in related technical assistance; $15 million for PRIME technical
    assistance; an expanded microloan loan program of $60 million with $45
    million in related technical assistance; $6.6 million for an expanded
    BusinessLINC mentor-protege program; and $3 million to establish
    reservation-based Native American Small Business Development Centers.

                                  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 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, [$282,300,000] $163,000,000: 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 $84,500,000 shall be available
    to fund grants for performance in fiscal year 2000 or fiscal year 2001
    as authorized by section 21 of the Small Business Act, as amended.]
        [In addition, for the costs of programs related to the New Markets
    Venture Capitol program, $10,500,000, of which $1,500,000 shall be for
    BusinessLINC, and of which $9,000,000 shall be for technical assistance:
    Provided, That the funds appropriated under this paragraph shall not be
    available for obligation until the New Markets Venture Capitol program
    is authorized by subsequent legislation.] In addition, to reimburse the
    Small Business Administration for qualified expenses of delinquent non-
    tax debt collection, to be derived from increased agency collections of
    delinquent debt, 5 percent of such collections but not to exceed
    $3,000,000. (Departments of Commerce, Justice, and State, the Judiciary,
    and Related Agencies Appropriations Act, 2000, as enacted by section
    1000(a)(1) of the Consolidated Appropriations Act, 2000 (P.L. 106-113).)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-0100-0-1-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Government contracting and
            minority enterprise development.          26          30          20
    00.02 Disaster assistance...............         116         118         124
    00.04 Management and administration.....          74          71          96
    00.05 Executive direction...............          11          12          10
    00.06 General counsel...................           7           7           7
    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           6           5
    00.12 Field operations..................           2           2           1
    00.13 Equal employment opportunity and
            civil rights compliance.........           2           2           2
    00.14 Regional and district offices.....         134         137         142
    00.15 Chief financial officer...........          11          11           7
    00.16 Capital Access....................          43          59          28
    00.17 Entrepreneurial development.......         137         134           6
    00.18 Small disadvantaged businesses....           8          12
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         581         606         453
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................          17           3
    22.00 New budget authority (gross)......         568         601         453
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3           2
    22.21 Unobligated balance transferred to
            other accounts..................
    22.22 Unobligated balance transferred
            from other accounts.............
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         588         606         453
    23.95 Total new obligations.............        -581        -606        -453
    23.98 Unobligated balance expiring or
            withdrawn.......................          -4
    24.40 Unobligated balance available, end
            of year.........................           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         288         323         163
    40.76   Reduction pursuant to P.L. 106-
              113...........................                      -3
    42.00   Transferred from other accounts.           5
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         293         320         163
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............         275         281         290
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         568         601         453
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year         182         217         224
    73.10 Total new obligations.............         581         606         453
    73.20 Total outlays (gross).............        -538        -585        -521
    73.40 Adjustments in expired accounts
            (net)...........................          -5         -12
    73.45 Adjustments in unexpired accounts.          -3          -2
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..         217         224         156
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         436         457         380
    86.93 Outlays from discretionary
            balances........................         102         128         141
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         538         585         521
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Payments from business loan
                  program account...........        -114        -129        -133
    88.00       Payments from disaster loan
                  program account...........        -147        -136        -154
    88.00       Federal sources.............         -11         -13
    88.40     Non-Federal sources...........          -3          -3          -3
                                               ---------   ---------  ----------

    [[Page 1080]]

    88.90       Total, offsetting
                  collections (cash)........        -275        -281        -290
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         293         320         163
    90.00 Outlays...........................         263         304         231
    ---------------------------------------------------------------------------

        The Administration proposes to separate the Salaries and Expenses
    account into the following two accounts: (1) Salaries and Expenses--
    includes compensation and benefits, technological investments, supplies,
    contracts, and the general administrative costs of operating SBA's
    various programs, etc; (2) Non-Credit Business Assistance Programs--
    includes a variety of programs in Entrepreneurial Development,
    Government Contracting and Minority and Enterprise Development, and
    Capital Access, as well as the offices of Advocacy and the National
    Ombudsman. The following components of the Salaries and Expenses Account
    are detailed below.

        Executive Direction.--Executive Direction includes the Office of the
    Administrator, 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 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 decides
    size, Small Disadvantaged Business, FOIA and other administrative
    appeals and processes SBREFA complaints for the Agency. 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. SBA's field
    offices are an important delivery mechanism of SBA services to small
    businesses. 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. SBA also has a Policy unit that directs and
    coordinates the Agency's planning and oversight of management processes
    under the Government Performance and Results Act (GPRA).

        Management and Administration.--The Associate Deputy Administrator
    for Management and Administration (ADA) 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 Office of
    Administration administers SBA's space management, printing, and
    procurement and grants management programs. The Office of Human
    Resources administers SBA's workforce planning and management efforts,
    including workforce training programs.

    Program Performance

    Management and Administration:

        Workforce Transition.--In order to effectively transition SBA's
    workforce to the new roles and responsibilities facing the Agency today
    and into the 21st Century, we request $4 million (included in the
    operating expenses) to support increased training and to transition our
    staff to a more customer-focused and community-based structure.

        SBA Modernization.--The funding request of $13 million (included in
    the operating expenses) provides the next annual installment of $8
    million toward this multi-year systems effort, plus $5 million toward
    the disaster loan systems project. This systems modernization project
    will result in more modern and efficient delivery of SBA's programs and
    services and increases efficiencies. The upgrading and/or replacement of
    our financial management systems for loan programs and budgeting
    transactions will have a positive impact on our internal risk
    management, planning, control processes, financial reporting and
    compliance with law in areas such as systems security, standard general
    ledger, etc. Also, we anticipate that the deployment of a paperless
    disaster home loan application process may result in as much as $20-$25
    million annually in reduced administrative expenses, making this extra
    systems investment very cost effective. We have in place a five-year
    plan to modernize all of our major systems and processes. Significant
    progress was made on Phase I (Loan Monitoring and Oversight) in 1998 and
    1999. We anticipate hardware acquisition and software development in
    2000 and 2001, leading to full modernization implementation in 2002-
    2003.

        Other Information Technology Investments.--The budget includes $7.0
    million (in the operating expenses) to contract for on-going computer
    upgrades, maintenance, and acquisition of the latest operating system.
    SBA's technology infrastructure is two generations behind current
    standards and may not be supported in the near future. This investment
    will improve our extensive interaction with the public and external
    resource partners and will support our systems modernization efforts,
    which require increased computer capability.

        Administrative Operating Expenses.--For 2001, the funding request
    for general and administrative operating expenses is $328.5 million
    ($163 from the Salaries and Expenses account, $132.5 million from the
    Business Loans program account, and $30 million from the Disaster Loan
    Program account, and $3 million in fees). This funding level maintains
    the current workforce. The increased funds in 2001 will allow us to
    maintain a current services level of operations, provide an employee pay
    raise in January of 2001, and cover anticipated inflationary increases
    in areas such as telephones and rents.

    Performance Goals

        Program and Policy Goals under the GPRA.--Small business success
    remains a primary policy of this Administration. The SBA's mission is to
    maintain and strengthen the nation's economy by aiding, counseling,
    assisting, and protecting the interests of small businesses and by
    helping families and businesses recover from disasters. The following
    three program and policy goals form the basis of the programs for which
    we are requesting funding: (1) help small businesses succeed,
    particularly in new market segments, through fair and equitable access
    to capital, government contracts, business development, and policy
    representation and advocacy support; (2) modernize the SBA through a
    trained and motivated workforce, expanded use of electronic tools,
    upgraded information systems, and improved lender oversight; and (3)
    help families and businesses recover from natural disasters through
    access to needed capital and credit.

        SBA's Strategic Plan.--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. This plan is updated annually based on
    current actual performance against measurable goals, the impact of
    actual appropriations, and their impact on Agency goals and objectives
    for future years. Monthly reviews are completed to determine actual

    [[Page 1081]]

    performance against goals; recommendations are made on the review
    process for any unfavorable variances.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-0100-0-1-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............         167         169         169
    11.3    Other than full-time permanent..          10          11          10
    11.5    Other personnel compensation....           5           5           5
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..         182         185         184
    12.1  Civilian personnel benefits.......          42          42          43
    21.0  Travel and transportation of
            persons.........................           6           5           5
    23.1  Rental payments to GSA............          28          29          29
    23.3  Communications, utilities, and
            miscellaneous charges...........           9          10          10
    24.0  Printing and reproduction.........           1
    25.2  Other services....................          46          45          56
    26.0  Supplies and materials............                       1           1
    31.0  Equipment.........................           2           1           1
    41.0  Grants, subsidies, and
            contributions...................         143         160
          Undistributed:

    92.0    Undistributed (disaster loan
              making).......................          86          87          90
    92.0    Undistributed (disaster loan
              servicing)....................          28          29          34
    92.0    Undistributed (SDB).............           8          12
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         581         606         453
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 73-0100-0-1-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......       4,567       4,509       4,288
    ---------------------------------------------------------------------------
        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.

                     Non-credit Business Assistance Programs

        For non-credit programs authorized under the Small Business Act, as
    amended, $256,050,000, of which $89,500,000 shall be for grants for
    performance in fiscal year 2001 or fiscal year 2002: Provided, That (1)
    $85,000,000 shall be for grants for the purposes authorized by section
    21 of such Act, (2) $3,000,000 to establish a reservation-based Native
    American Small Business Development Center network, including
    subcenters, to serve Native Americans on a national basis subject to
    section 21 of such Act but without the necessity for matching funds, and
    (3) $1,500,000 to support the Tribal Business Information Centers:
    Provided further, That any balances of FY2000 funds appropriated for
    these non-credit programs under the heading, ``Salaries and Expenses'',
    may be transferred to this heading, to be available to carry out these
    programs and to be available for the time period originally provided.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-1155-0-1-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Non-Credit Business Assistance
            Programs (Gross)................                                 256
    09.02 Reimbursable program..............                                   9
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                 265
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 265
    23.95 Total new obligations.............                                -265
    24.40 Unobligated balance available, end
            of year.........................
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                 256
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............                                   9
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................                                 265
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............                                 265
    73.20 Total outlays (gross).............                                -150
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..                                 115
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                 150
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........                                  -9
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 256
    90.00 Outlays...........................                                 141
    ---------------------------------------------------------------------------

        This appropriation funds the non-credit business assistance programs
    administered by SBA, including Small Business Development Centers
    (SBDCs), Women's Business Centers, HUBZone Empowerment Contracting,
    Electronic Commerce, New Markets Technical Assistance, and PRIME. The
    administrative funding for most of these programs is provided in the
    Salaries and Expenses account. The following program areas are
    responsible for the direction of the non-credit business assistance
    programs:

        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, Welfare to Work
    and Entrepreneurship for Adults with Disabilities, 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; HUBZone Empowerment Contracting; 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. This office also administers
    the government-wide Small Disadvantaged Business (SDB) program,
    certifying firms as SDB to facilitate their active participation in
    Federal procurement. The HUBZone Empowerment Contracting program
    promotes economic development, community empowerment, and job growth in
    underutilized urban and rural communities.

        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. The capital and credit
    programs administered through these offices and delivered in SBA's field
    offices provide small businesses access to the financing needs they have
    to start and grow their businesses, especially those businesses and
    individuals located in new market areas. SBA offers many lending
    programs, such as 7(a) and SBIC, and tools, such as LowDoc and SBA
    Express to enhance small business access to these programs.

    [[Page 1082]]

    Program Performance

    Entrepreneurial Development:

        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 1999,
    more than 595,000 customers were served, of which 42 percent were women
    and 23 percent were minorities. For 2001, the budget process proposes
    federal funding of $85 million.

        Native American Small Business Development Centers (NASBDs).--The
    budget proposes $3 million to establish a reservation-based Native
    American Small Business Development Center network to serve Native
    American entrepreneurs.

        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 1999, 59 funded and 22 graduated women's business centers
    were operating in 47 states, the District of Columbia, Puerto Rico, and
    the Virgin Islands. Each offers financial, management, marketing and
    technical assistance to current and potential women business owners. In
    2000, with the $9 million appropriation we will fund approximately 12
    recompeted centers, approximately 6-8 new centers, and the continuation
    of funding for 45 centers. With the 2001 funding request of $12 million,
    we will expand coverage in all 50 states. We propose that in 2001, there
    will be 46 centers with current funding cycles, 12 centers with ongoing
    second funding cycles, 13 additional recompeted centers, and
    approximately 15 new centers. In addition, we will 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 2001, we propose funding of
    $10.0 million for the OSCS program to support the existing network of
    One-Stop locations and to open new OSCS centers in the new Empowerment
    Zones.

        Native American Outreach Through Tribal Business Information Centers
    (TBICs).--With $1.5 million SBA will provide reservation and non-
    reservation-based entrepreneurs access to state-of-the-art computer
    hardware and software, 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 1999, these
    centers served approximately 3,926 clients, provided 4,757 hours of
    business counseling, held approximately 200 workshops, assisted in the
    completion of approximately 192 business plans and 123 loan packages,
    and were instrumental in the startup of approximately 171 new
    businesses.

        Veteran's Outreach.--The budget proposes $4 million in 2001 to
    implement the Veteran's Entrepreneurship and Small Business Development
    Act of 1999. With this funding, SBA will be able to assist the
    authorized corporation in its operation and provide enhanced training
    and technical assistance to America's veterans.

        Service Corps of Retired Executives (SCORE).--For 2001, the budget
    proposes a funding level of $5.0 million for this program. The
    additional funding will provide upgrades to the SCORE computer network.
    Using one-on-one counseling and workshops, SCORE reaches approximately
    383,000 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.

        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 2001,
    the budget includes $700 thousand to support these locations.

    Government Contracting and Minority Enterprise Development:

        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 2001, 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 and Eligibility.--
    Since 1998, SBA was designated as the lead agency in the certification
    of SDB firms. This certification process enables firms to receive
    federal contract preferences. Funding for this program is provided
    through reimbursements from the 20 largest Federal procuring agencies.
    The program's funding level for 2001 is proposed to be $9 million.

        HUBZones.--The budget proposes $5 million for this program.
    Legislation passed in 1998 created a national program to support
    economic development and job growth in ``historically underutilized
    zones''. SBA certifies small firms in HUBZone areas that hire residents
    of such areas as eligible for federal contract preferences.

        Pro-Net.--The budget proposes $750 thousand for 2001 for this
    program. The Procurement Marketing Network (PRO-Net) program helps
    ensure that small businesses can be competitive in a changing
    procurement environment. By providing an interface with other electronic
    procurement applications such as the Electronic Posting System and the
    Commerce Business Daily, the more than 188,000 small businesses that are
    currently registered will be aware of procurement opportunities.

        Electronic Commerce.--With the $5 million proposed in the budget,
    SBA will work with the Departments of Commerce and Agriculture to
    implement an education, training, and outreach program to ensure small
    businesses remain competitive by participating in electronic commerce.

        BusinessLINC.--With the $6.6 million proposed in the budget, SBA
    will assist in the support of BusinessLINC, an initiative to link large
    businesses with small businesses in order to expand their access to
    markets, enhance management development, obtain technical assistance and
    leverage core strategies; promote best practices; and help grow small
    businesses in distressed urban, Native American, and isolated
    communities.

        Small Business Innovation and Research (SBIR) Program Awards.--The
    budget proposes $14 million to implement a three-year new matching grant
    pilot program to support Phase III commercialization of the technology
    developed under SBIR grants. Federal contributions would match con

    [[Page 1083]]

    tributions from non-Federal sources in a 1:2 ratio, to an average award
    of $250,000. SBA would award approximately 56 grants each year. In
    addition, $1 million is proposed to develop multi-agency SBIR
    solicitation topics, solicite white papers and hold workshops for small
    businesses

    Capital Access:

        U.S. Export Assistance Centers.--The 2001 budget includes a request
    for $3.5 million to continue these services. As nearly 97 percent of
    U.S. export firms are small businesses, they account for 31 percent of
    the total U.S. export sales. 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.

        Microloan Technical Assistance.--The 2001 budget requests $45
    million for this program, which is needed to support the current
    portfolio of microloans and the anticipated lending to be done in 2000
    and 2001. 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 to microborrowers. 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. Currently, there are 128 intermediaries and
    19 non-lending technical assistance intermediaries versus a statutory
    limit of 200. We are proposing changes in the legislation that will
    provide flexibility in lending and technical assistance, which will
    result in greater access to capital. We anticipate that the Microloan
    program will play a major role in the new markets initiative.

        PRIME.--The budget proposes funding this program at the authorized
    level of $15 million. The PRIME program provides grants to non-profit
    organizations for: 1) training and technical assistance for low/very
    low-income entrepreneurs, 2) training and capacity building services to
    the non-profit providers, and 3) research and development in best
    practices for low income entrepreneurs.

        New Markets Venture Capital Technical Assistance.--In support of the
    President's New Markets initiative, SBA is proposing legislation that
    authorizes $150 million in venture capital ($150 million in face value
    and approximately $100 million in cash value) for small businesses in
    distressed rural and urban Areas. These are the areas that are
    underserved by traditional financial institutions. SBA proposes to
    provide business development, managerial and technical assistance
    support through New Market Venture Capital companies. The 2001 budget
    includes $30 million to provide the necessary level of technical
    assistance supporting the $150 million program level.

        Other Programs and Initiatives.--In addition to the above, SBA
    proposes to fund the Women's Council for 2001 at $1 million and the
    Survey of Women Owned Businesses as part of the Census for $1 million.
    This account also includes $1.5 million for the Office of Advocacy and
    $500,000 for the Office of the National Ombudsman. The Office of
    Advocacy is the principal voice for small business within the
    government. The Office of the National Ombudsman facilitates the
    examination of ideas, interests, and concerns of small business to
    create a fair regulatory environment.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-1155-0-1-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................                                  12
    12.1    Civilian personnel benefits.....                                   4
    92.0    Undistributed...................                                 240
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..                                 256
    99.0  Reimbursable obligations..........                                   9
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                                 265
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 73-1155-0-1-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......                                 190
    ---------------------------------------------------------------------------

                           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.), [$11,000,000] $14,315,000. (Departments of
    Commerce, Justice, and State, the Judiciary, and Related Agencies
    Appropriations Act, 2000, as enacted by section 1000(a)(1) of the
    Consolidated Appropriations Act, 2000 (P.L. 106-113).)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-0200-0-1-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 General Office....................           1           1           2
    00.02 Audit.............................           4           4           5
    00.03 Investigations....................           5           5           6
    00.04 Management / Legal Counsel /
            Inspection and Evaluation.......           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          11          11          14
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................                       1
    22.00 New budget authority (gross)......          11          11          14
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          11          12          14
    23.95 Total new obligations.............         -11         -11         -14
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance available, end
            of year.........................           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          11          11          14
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          11          11          14
    ----------------------------------------------------------------------------

        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          14
    73.20 Total outlays (gross).............         -11         -11         -14
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..                       1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          10          10          13
    86.93 Outlays from discretionary
            balances........................           1                       1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          11          11          14
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................          11          11          14
    90.00 Outlays...........................          10          11          14
    ---------------------------------------------------------------------------

        The budget proposes $14.3 million for the Office of the Inspector
    General for 2001. The increased funding will enable the OIG to support
    an expanded monitoring role of the Agency's Government Performance and
    Results Act in reviewing the Agency's programs, performance measures,
    and regulations to conserve resources and increase program efficiency
    and effectiveness.

    [[Page 1084]]

        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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-0200-0-1-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           9           9          11
    12.1  Civilian personnel benefits.......           2           2           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          11          11          14
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 73-0200-0-1-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         109         117         142
    ---------------------------------------------------------------------------

    Public enterprise funds:

                      Surety Bond Guarantees Revolving Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4156-0-3-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable obligations..........           8           5           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           8           5           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................           4           4           3
    22.00 New budget authority (gross)......           7           4           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          11           8           7
    23.95 Total new obligations.............          -8          -5          -5
    24.40 Unobligated balance available, end
            of year.........................           4           3           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           3
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           4           4           4
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           7           4           4
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year          38          37          37
    73.10 Total new obligations.............           8           5           5
    73.20 Total outlays (gross).............          -8          -5          -5
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..          37          37          37
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           7           4           4
    86.93 Outlays from discretionary
            balances........................           1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           8           5           5
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....          -4          -4          -4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           3
    90.00 Outlays...........................           5           1           1
    ---------------------------------------------------------------------------

        The SBA is authorized to issue bond guarantees to surety companies
    for construction, service, and supply contracts that do not exceed
    $1,250,000 and to reimburse these sureties up to 90 percent of the
    losses sustained if the contractor defaults. Under the Preferred Surety
    Bond (PSP) Program, participating sureties are authorized to issue,
    monitor, and service bonds without SBA's prior approval. Guarantees for
    this program are limited to 70 percent. Currently, there are 15
    participating sureties in the program. SBA's guarantees provide the
    incentive necessary for sureties to issue bonds to small contractors who
    could not otherwise compete in the contracting industry.

        In 2001, the budget proposes a $1.7 billion program level that is
    anticipated to be sufficient to accommodate demand from prior-approval
    and preferred sureties. This program does not require a subsidy
    appropriation.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   73-4156-0-3-376    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................          12              9             7              7
    0102  Expense...........................         -10             -7            -6             -6
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............           2              2             1              1
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   73-4156-0-3-376    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................          42             41            39             42
    1206  Non-Federal assets: Receivables,
            net.............................
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          42             41            39             42
        LIABILITIES:
    2201  Non-Federal liabilities: Accounts
            payable.........................          38             37            35             36
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          38             37            35             36
        NET POSITION:
    3100  Appropriated capital..............         329            332           333            332
    3300  Cumulative results of operations..        -325           -326          -328           -326
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............           4              6             5              6
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          42             43            40             42
    -----------------------------------------------------------------------------------------------

    Credit accounts:

                         Business Loans Program Account

        For the cost of direct loans, $5,370,000, to be available until
    expended; and for the cost of guaranteed loans, [$137,800,000]
    $194,360,000, as authorized by 15 U.S.C. 631 note or subsequently
    authorized for the New Markets Venture Capital program, of which
    $45,000,000 shall remain available until September 30, [2001] 2002:
    Provided, [That of the total provided, $6,000,000 shall be available
    only for the cost of guaranteed loans under the New Markets Venture
    Capitol program and shall become available for obligation only upon
    authorization of such program by the enactment of subsequent legislation
    in fiscal year 2000: Provided further,] 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
    during fiscal year [2000] 2001, 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(e)(1)(B)(ii) of the Small Business Act, as amended: Provided further,
    That during fiscal year 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 without prior notification of the
    Committees on Appropriations of the House of Representatives and Senate
    in accordance with section 605 of this Act] $3,750,000,000: Provided
    further, That during fiscal year [2000] 2001, commitments to guarantee
    loans under section

    [[Page 1085]]

    303(b) of the Small Business Investment Act of 1958, as amended, shall
    not exceed [the amount of guarantees of debentures authorized under
    section 20(e)(1)(C)(ii) of the Small Business Act, as amended]
    $500,000,000.
        In addition, for administrative expenses to carry out the direct and
    guaranteed loan programs, [$129,000,000] $132,525,000, 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, 2000, as enacted by section
    1000(a)(1) of the Consolidated Appropriations Act, 2000 (P.L. 106-113).)

                                  (rescission)

        [Of the unobligated balances available under this heading,
    $13,100,000 are rescinded.] (Departments of Commerce, Justice, and
    State, the Judiciary, and Related Agencies Appropriations Act, 2000, as
    enacted by section 1000(a)(1) of the Consolidated Appropriations Act,
    2000 (P.L. 106-113).)

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-1154-0-1-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    0101  Business loan program, downward
            reestimates of subsidies........         695         301
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-1154-0-1-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............           2           3           5
    00.02 Guaranteed loan subsidy...........         216         146         194
    00.07 Reestimate of loan guarantee
            subsidy.........................          28           3
    00.08 Interest on reestimates of loan
            guarantee subsidy...............           7           2
    00.09 Administrative expenses...........         114         129         133
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         367         283         332
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................         104          76          53
    22.00 New budget authority (gross)......         311         259         332
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          36
    22.22 Transferred from other accounts...           7
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         458         335         385
    23.95 Total new obligations.............        -367        -283        -332
    23.98 Unobligated balance expiring or
            withdrawn.......................         -15
    24.40 Unobligated balance available, end
            of year.........................          76          53          53
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         224         267         332
    40.36   Unobligated balance rescinded...                     -13
    42.00   Transferred from other accounts.           1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         225         254         332
          Mandatory:

    60.05   Appropriation (indefinite)......          35           5
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          51
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         311         259         332
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year         136         109         110
    73.10 Total new obligations.............         367         283         332
    73.20 Total outlays (gross).............        -358        -282        -314
    73.45 Adjustments in unexpired accounts.         -36
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..         109         110         128
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         192         160         209
    86.93 Outlays from discretionary
            balances........................         131         117         105
    86.97 Outlays from new mandatory
            authority.......................          35           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         358         282         314
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -51
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         260         259         332
    90.00 Outlays...........................         307         282         314
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 73-1154-0-1-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Micro loans.......................          23                      60
                                               ---------   ---------  ----------
    1159    Total direct loan levels........          23                      60
        Direct loan subsidy (in percent):
    1320  Micro loans.......................        9.54        8.54        8.95
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...        9.54        8.54        8.95
        Direct loan subsidy budget authority:
    1330  Micro loans.......................           2                       5
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..           2                       5
        Direct loan subsidy outlays:
    1340  Micro loans.......................           1           2           3
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........           1           2           3
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Microloan guarantees..............           1          16
    2150  General business--7(a)............       9,471       9,827      11,500
    2150  General business--7(a) DELTA......          37          50          50
    2150  Section 504.......................       1,979       3,500       3,750
    2150  Section 504 DELTA.................           3           5           5
    2150  SBIC debentures...................         352         800         500
    2150  SBIC participating securities.....       1,015       1,350       2,000
    2150  New Market Venture Capital........                      40         150
    2150  Y2K...............................           4
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....      12,862      15,588      17,955
        Guaranteed loan subsidy (in percent):
    2320  Microloan guarantees..............        7.97        8.32        8.37
    2320  General business--7(a)............        1.39        1.16        1.24
    2320  General business--7(a) DELTA......        2.08        1.83        1.92
    2320  Section 504.......................        0.00        0.00        0.00
    2320  Section 504 DELTA.................        1.29        1.13        0.89
    2320  SBIC debentures...................        1.38        0.00        0.78
    2320  SBIC participating securities.....        2.19        1.80        1.31
    2320  New Market Venture Capital........        0.00       15.00       14.44
    2320  Y2K...............................        4.04        4.07        4.04
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...        1.11        1.20        1.08
        Guaranteed loan subsidy budget authority:
    2330  Microloan guarantees..............
    2330  General business--7(a)............         159         108         143
    2330  General business--7(a) DELTA......
    2330  Section 504.......................          34           5
    2330  Section 504 DELTA.................
    2330  SBIC Debentures...................           6                       4
    2330  SBIC participating securities.....          22          24          26
    2330  New Market Venture Capital........                       6          21
    2330  Y2K...............................           1
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..         222         143         194
        Guaranteed loan subsidy outlays:
    2340  Micorloan guarantees..............           1           1
    2340  General business--7(a)............         136         113         130
    2340  General business--7(a) DELTA......           1           2           2
    2340  Section 504.......................          26           5
    2340  Section 504 DELTA.................
    2340  SBIC debentures...................           5                       4
    2340  SBIC participating securities.....          22          24          24
    2340  New Market Venture Capital........                       5          18
    2340  Y2K...............................           1           1
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........         192         151         178
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................          94         129         133
    3580  Outlays from balances.............
    3590  Outlays from new authority........         114         129         133
    ---------------------------------------------------------------------------

    [[Page 1086]]

        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 2001, 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''. SBA has experienced record levels of
    demand for these loans with approvals increasing $1 billion from 1998 to
    1999. A similar increase is expected in 2000. Therefore, we request a
    program level of $11.5 billion in 2001 to continue to meet the needs of
    small businesses to start and grow their businesses. In addition, to
    encourage more small loans and to reduce the cost of loans to small
    businesses, we propose a simplification of the current fee and guaranty
    structure.

        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 $2.0 billion in participating
    securities and $500 million in debentures is requested.

        New Markets Venture Capital.--During 2000, SBA will begin to
    administer the newly created ``New Markets Venture Capital Program'':
    This program would require investment groups to have a minimum of $5
    million of investment capital and $1.5 million of technical assistance
    funding available over 5 years to participate in the program. For 2001,
    a total of $150 million of leverage in face value (approximately $100
    million in cash) will be available to fund New Market Venture Capital
    organizations. There would also be a significant technical assistance
    component, which would be in the form of a grant equal to 30 percent of
    the amount of investment capital disbursed over 5 years also on a
    matching basis.

        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 by refining program regulations for
    participating SBICs. The LMI initiative differs from New Market Venture
    Capital (NMVC) initiative in the investment criteria and the size of the
    loan. Loans made under LMI meet the same criteria as SBIC investments,
    but are made to smaller enterprises. Also, NMVC loans are smaller than
    LMI.

        Microloans.--For 2001, SBA proposes to expand the Microloan direct
    program to $60 million from $30 million in 2000. In addition, we are
    proposing legislative changes that will provide flexibility in the
    lending and technical assistance, which will result in greater access to
    capital. The Microloan program will be a key component of Agency's
    pursuit of its new markets initiative. At present, small business
    capital needs of less than $25,000 are met through SBA's microloan
    direct and guarantee programs. We propose to raise that limit to $35,000
    in 2001. SBA loans money to financial intermediaries which in turn make
    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) emphasizing
    lending to ``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 an expanded range of lending partners, electronic transmission
    of data, and high volume lending technologies; (4) reducing costs by
    maintaining a high quality portfolio through innovative oversight
    procedures and 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 1999, the SBA approved over 43,000 loans totaling $10.1
    billion. For 2001, we are requesting $142.6 million in budget authority
    to support a program level of $11.5 billion. The section 504 program has
    also shown impressive growth. In 1992, the SBA provided about 2,000
    financings totaling nearly $560 million. By 1999, those figures had
    increased to 4,700 financing for $1.8 billion.

        Section 7(a).--The performance of the 7(a) loan program continues to
    improve. However, the Treasury discount rate increased this year causing
    a slight increase in the loan subsidy rate to 1.24 percent.

        Section 504.--The performance of this program continues to improve.
    As a result, the fee to borrowers will again be reduced in 2001 from the
    2000 level of .60 percent to .472 percent.

        Loan asset sales.--SBA conducted its first asset sale during August,
    1999, which was highly successful bringing $95 million in additional
    revenues to the government above what would have been realized if SBA
    was to hold the loans and service them. The sale included direct and
    purchased 7(a) and 504 loans. It was especially important to SBA to
    establish a foothold in the financial market from which to conduct
    future asset sales of the remaining $9 billion loan portfolio. Future
    sales will include disaster home and business loans. Two sales are
    planned for 2000. SBA is requesting authoriza

    [[Page 1087]]

    tion to take advantage of ``gainsharing`'' provisions extended to
    federal agencies. These sales also greatly impact SBA in its workforce
    transition efforts. The Business Loan program's administrative expenses
    includes $1.525 million to cover the cost of the program financial
    advisor for the asset sales program.

        Microloan Program.--The performance of the microloan program
    continues to improve. However, the Treasury discount rate increased this
    year, causing a slight increase in the loan subsidy rate to 8.95
    percent.

        Small Business Investment Companies (SBICs).--For the participating
    securities program, the subsidy rate will be lowered to 1.31 percent
    from 1.8 percent in 2000. For the debentures program, the subsidy rate
    will be 0.78 percent due to technical adjustments.

        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 include: increased
    numbers and growth of small businesses, increased jobs, increased
    revenues, and taxes paid.

        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.

        For the 503/504 program, the calculation for jobs created/retained
    every year is based on the dollar amount of debentures sold and 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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-1154-0-1-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................         114         129         133
    41.0  Grants, subsidies, and
            contributions...................         253         154         199
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         367         283         332
    ---------------------------------------------------------------------------

                     Business Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4148-0-3-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................          15          30          60
    00.02 Interest on Treasury borrowing....          26          24          14
          Other expenses:

    00.03   Other expenses..................          30
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............          71          54          74
    08.01 Negative subsidy from loan asset
            sales...........................                                   1
    08.02 Payment of downward reestimate to
            receipt account.................           2
    08.06 Payment to liquidating account to
            purchase loan assets(73-4154)...                      15
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............           2          15           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          73          69          75
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................         271         311
    22.00 New financing authority (gross)...         127          93         116
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.40 Capital transfer to general fund..                    -297          -5
    22.60 Portion applied to repay debt.....         -15         -36         -36
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         384          71          75
    23.95 Total new obligations.............         -73         -69         -75
    24.40 Unobligated balance available, end
            of year.........................         311
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.15   Authority to borrow (indefinite)          37                      54
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).          73          79          61
    68.10     Change in receivables from
                program account.............          17          14           1
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....          90          93          62
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         127          93         116
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance, start of year          38          26          28
    72.95   Receivables from program account           2          19          33
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............          40          45          61
    73.10 Total new obligations.............          73          69          75
    73.20 Total financing disbursements
            (gross).........................         -68         -55         -75
    73.45 Adjustments in unexpired accounts.          -1
          Unpaid obligations, end of year:

    74.40   Obligated balance, end of year..          26          28          27
    74.95   Receivables from program account          19          33          34
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................          45          61          61
    87.00 Total financing disbursements
            (gross).........................          68          55          75
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: Payments from
                program account.............          -1          -2          -3
              Non-Federal sources:
    88.40       Repayments of principal, net         -15         -10         -19
    88.40       Interest received on loans..         -18         -16         -22
    88.40       Gross proceeds from loan
                  asset sales...............         -34         -51
    88.40       Other income................          -5                     -17
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -73         -79         -61
          Against gross budget authority only:

    88.95   Change in receivables from
              program accounts..............         -17         -14          -1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          37                      54
    90.00 Financing disbursements...........          -5         -24          14
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4148-0-3-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................          15          30          60
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          15          30          60
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          99          93         109
    1231  Disbursements: Direct loan
            disbursements...................          15          30          60
    1251  Repayments: Repayments and
            prepayments.....................         -16          -8          -8
    1263  Write-offs for default: Direct
            loans...........................          -5          -6          -7
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          93         109         154
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, as amended,
    this non-budgetary account records all cash flows

    [[Page 1088]]

    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    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1106    Federal assets: Receivables, net         328            355           362            367
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..          99             83            81             84
    1405    Allowance for subsidy cost (-)..          -6            -46           -56            -56
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....          93             37            25             27
    1504  Net value of assets related to
            post-1991 acquired defaulted
            guaranteed loans receivable:
            Foreclosed property.............                          9
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         421            401           387            395
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................                         24            26             28
    2104    Resources payable to Treasury...         421            377           361            367
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         421            401           387            395
        NET POSITION:
    3100  Appropriated capital..............
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         421            401           387            395
    -----------------------------------------------------------------------------------------------

                   Business Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4149-0-3-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Default claims....................         501         511         532
    00.05 Other Expenses....................          37          13          40
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............         538         524         572
    08.02 Payment of downward reestimate to
            receipt account.................         310         239
    08.04 Payment of interest on downward
            reestimate to receipt account...         515          47
    08.06 Payment to liqudating account to
            purchase loan assets(73-4154)...                     220         150
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............         825         506         150
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,363       1,030         722
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................       1,367         815         663
    22.00 New financing authority (gross)...         811         878         645
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,178       1,693       1,308
    23.95 Total new obligations.............      -1,363      -1,030        -722
    24.40 Unobligated balance available, end
            of year.........................         815         663         586
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............         811         878         645
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year        -157           7         437
    73.10 Total new obligations.............       1,363       1,030         722
    73.20 Total financing disbursements
            (gross).........................      -1,198        -600        -575
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..           7         437         584
    87.00 Total financing disbursements
            (gross).........................       1,198         600         575
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Payments from program
                  account...................        -192        -151        -179
    88.00       Upward restimate............         -28          -3
    88.00       Interest on reestimate......          -7          -2
    88.25     Interest on uninvested funds..         -22         -65         -45
              Non-Federal sources:
    88.40       Fees........................        -105        -154         -92
    88.40       Proceeds from loan asset
                  sales.....................         -34        -439        -300
    88.40       other.......................        -423         -64         -29
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -811        -878        -645
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........         387        -278         -70
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4149-0-3-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........      13,500      16,500      18,213
    2112  Uncommitted loan guarantee
            limitation......................      -2,050        -247
    2131  Guaranteed loan commitments exempt
            from limitation.................       1,202       1,507       1,571
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................      12,652      17,760      19,784
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      33,695      36,767      40,917
    2231  Disbursements of new guaranteed
            loans...........................      10,785       7,534       7,738
    2251  Repayments and prepayments........      -7,036      -2,741      -2,821
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -630        -643        -656
    2264    Other adjustments, net..........         -47
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      36,767      40,917      45,178
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      29,266      33,058      36,495
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......         834         753         738
    2331    Disbursements for guaranteed
              loan claims...................         630         643         656
    2351    Repayments of loans receivable..        -137         -82         -50
    2361    Write-offs of loans receivable..        -285        -164         -65
    2364    Other adjustments, net..........        -289        -412        -300
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......         753         738         979
    ---------------------------------------------------------------------------

        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    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....       1,209            822           838            855
            Investments in US securities:
    1106      Receivables, net..............         221             66           176            176
          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501    Defaulted guaranteed loans
              receivable, gross.............         834            753           738            979
    1502    Interest receivable.............          38             17            37             41
    1505    Allowance for subsidy cost (-)..        -215                          -78            -78
                                            ------------ --------------  ------------  -------------

    [[Page 1089]]

    1599      Net present value of assets
                related to defaulted
                guaranteed loans............         657            770           697            942
    1901  Other Federal assets: Other assets         245            128           238            238
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       2,332          1,786         1,949          2,211
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.       2,332          1,786         1,949          2,211
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       2,332          1,786         1,949          2,211
        NET POSITION:
    3100  Appropriated capital..............
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       2,332          1,786         1,949          2,211
    -----------------------------------------------------------------------------------------------

                     Business Loan Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4154-0-3-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Interest Expense to Treasury......          51          30          10
    00.03 Msc. program expenses.............         -35         115          77
    00.05 Guaranteed loan default claims....          10          40          41
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          26         185         128
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................         273         240
    22.00 New budget authority (gross)......         313         421         419
    22.21 Unobligated balance transferred to
            other accounts..................          -7
    22.40 Capital transfer to general fund..        -273        -446        -262
    22.60 Portion applied to repay debt.....         -40         -30         -29
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         266         185         128
    23.95 Total new obligations.............         -26        -185        -128
    24.40 Unobligated balance available, end
            of year.........................         240
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         313         421         419
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year         513         539         577
    73.10 Total new obligations.............          26         185         128
    73.20 Total outlays (gross).............                    -147        -159
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..         539         577         546
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                     147         159
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Loan repayments:
                Non-Federal sources:

    88.40         Financing programs-
                    principal...............         -97         -70         -75
    88.40         Investment programs-
                    principal...............         -16         -10         -10
    88.40         Interest Income-Business..         -73         -30         -50
    88.40         Interest income-Investment         -10          -8          -5
    88.40         Net changes in Receivables
                    from the Public Business          42          -5         -25
    88.40         Net changes in Receivables
                    from the public-
                    Investment..............          16          10          -7
    88.40         Sale of acquired
                    collateral-business.....         -17         -15         -16
    88.40         Principal collections on
                    judgements, notes,and
                    other receivables-
                    Business................         -48         -10         -10
    88.40         Principal collections on
                    judgements and other
                    receivables-Investment..         -15         -13         -15
    88.40         Recoveries................          21          -1         -30
    88.40         collection on FFB loans...         -40         -30         -22
    88.40         Other Income-both Business
                    and Investment..........         -15          -4          -4
    88.40         Net asset sale proceeds...         -61
    88.40         Asset sale proceeds.......                    -235        -150
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -313        -421        -419
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................        -313        -274        -260
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4154-0-3-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
              Business Loan Fund, Direct
                  Loans
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         757         555         451
    1232  Disbursements: Purchase of loans
            assets from the public..........          34          32          22
    1251  Repayments: Repayments and
            prepayments.....................        -129         -22          -6
    1262  Adjustments: Discount on loan
            asset sales to the public or
            discounted......................         -86         -94        -100
    1263  Write-offs for default: Direct
            loans...........................         -21         -20          -3
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         555         451         364
    ----------------------------------------------------------------------------

              Small Business Investment
                  Company, Direct Loans
              Section 503 Development
                  Company, Direct Loans
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         233         193         170
          Repayments:

    1251    Repayments and prepayments......         -22         -13         -11
    1252    Proceeds from loan asset sales
              to the public or discounted...         -18         -10          -9
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         193         170         150
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4154-0-3-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
              Business Loan Fund, Loan
                  Guarantees
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       3,804       2,652       2,073
    2231  Disbursements of new guaranteed
            loans...........................           2           1           1
    2251  Repayments and prepayments........      -1,078        -532        -399
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....         -69         -41         -28
    2264    Other adjustments, net..........          -7          -7          -6
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       2,652       2,073       1,641
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       2,321       1,956       1,630
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......       1,466       1,378       1,210
    2331    Disbursements for guaranteed
              loan claims...................          69          41          28
    2361    Write-offs of loans receivable..         -35          -9          -6
    2364    Other adjustments, net..........        -122        -200        -300
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       1,378       1,210         932
    ---------------------------------------------------------------------------

        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    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         102            151           107             75
    0102  Expense...........................         -99            -73           -68            -64
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............           3             78            39             11
    -----------------------------------------------------------------------------------------------

    [[Page 1090]]

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   73-4154-0-3-376    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         787            779           466            466
            Investments in US securities:
    1104      Agency securities, par........         283            245           186            186
    1107      Advances and prepayments......           6              6             5              4
          Non-Federal assets:

    1206    Receivables, net................         480            214           269            214
    1207    Advances and prepayments........           8              8             7              7
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............         990            748           621            514
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -626           -303          -207           -136
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................         364            445           414            378
    1901  Other Federal assets: Other assets          29             21            19             17
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       1,957          1,718         1,366          1,272
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................       1,325          1,123           930            878
    2102    Interest payable................          69             57            96             96
    2103    Debt to the FFB.................         233            193           156            123
          Non-Federal liabilities:

    2201    Accounts payable................          14             13            15             15
    2204    Liabilities for loan guarantees.          31             18            73             73
    2207    Other Liabilities...............         285            313           105            102
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       1,957          1,717         1,375          1,287
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       1,957          1,717         1,375          1,287
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4154-0-3-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    42.0  Insurance claims and indemnities..         -25         155         118
    43.0  Interest and dividends............          51          30          10
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          26         185         128
    ---------------------------------------------------------------------------

                         Disaster Loans Program Account

        For the cost of direct loans authorized by section 7(b) of the Small
    Business Act, as amended, [$140,400,000] $142,100,000 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, [$136,000,000] $154,000,000, which may be transferred to
    and merged with appropriations for Salaries and Expenses[, of which
    $500,000 is for the Office of Inspector General of the Small Business
    Administration for audits and reviews of disaster loans and the disaster
    loan program and shall be transferred to and merged with appropriations
    for the Office of Inspector General: Provided, That any amount in excess
    of $20,000,000 to be transferred to and merged with appropriations for
    Salaries and Expenses for indirect administrative expenses 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, 2000, as enacted by section 1000(a)(1) of the
    Consolidated Appropriations Act, 2000 (P.L. 106-113).)

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-1152-0-1-453      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    0101  Disaster loan program, downward
            reestimates of subsidies........          10
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-1152-0-1-453      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............         170         231         152
    00.03 Subsidy for Modification of Direct
            Loans...........................
    00.05 Upward reestimate of direct loan
            subsidy.........................         246
    00.06 Interest on reestimates of direct
            loan subsidy....................          91
    00.09 Administrative expense............         146         136         154
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         653         367         306
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................          81          81
    22.00 New budget authority (gross)......         635         276         296
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          19          10          10
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         735         367         306
    23.95 Total new obligations.............        -653        -367        -306
    24.40 Unobligated balance available, end
            of year.........................          81
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         293         276         296
    42.00   Transferred from USDA...........           5
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         298         276         296
          Mandatory:

    60.05   Appropriation (indefinite)......         337
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         635         276         296
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year          59          41          82
    73.10 Total new obligations.............         653         367         306
    73.20 Total outlays (gross).............        -653        -316        -310
    73.45 Adjustments in unexpired accounts.         -19         -10         -10
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..          41          82          66
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         202         213         228
    86.93 Outlays from discretionary
            balances........................         114         104          82
    86.97 Outlays from new mandatory
            authority.......................         337
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         653         316         310
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         635         276         296
    90.00 Outlays...........................         653         316         310
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         1999 actual  2000 est.   2001 est.
    Enacted/requested:
      Budget Authority..................         635         276         296
      Outlays...........................         653         317         310
    Supplemental proposal:
      Budget Authority..................                      50
      Outlays...........................
                                        ------------------------------------
    Total:
      Budget Authority..................         635         326         296
      Outlays...........................         653         317         310
                                        ====================================

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

    ----------------------------------------------------------------------------
    Identification code 73-1152-0-1-453      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct Disaster Loans.............         762       1,041         871
                                               ---------   ---------  ----------
    1159    Total direct loan levels........         762       1,041         871
        Direct loan subsidy (in percent):
    1320  Subsidy rate......................       13.10       22.20       17.46
                                               ---------   ---------  ----------
    1329    Weighted average subsidy rate...       13.10       22.20       17.46
        Direct loan subsidy budget authority:
    1330  Disaster subsidy budget authority.         100         140         142
                                               ---------   ---------  ----------
    1339    Total subsidy budget authority..         100         140         142

    [[Page 1091]]

        Direct loan subsidy outlays:
    1340  Disaster subsidy outlays..........         507         180         156
                                               ---------   ---------  ----------
    1349    Total subsidy outlays...........         507         180         156
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................         146         136         154
    3580  Outlays from balances.............
    3590  Outlays from new authority........         146         136         154
    ---------------------------------------------------------------------------

        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. The
    disaster loan programs include: physical disaster loans to individuals;
    physical disaster loans to businesses of any size; pre-disaster
    mitigation loans for small businesses; and economic injury loans to
    small businesses without credit available elsewhere (including the
    military reservist economic injury loan program).

        2001 Budget Authority.--For 2001, SBA requests funding to support
    the 5-year average loan volume, excluding the Northridge disaster event,
    or $871 million in loans, within the discretionary spending budget caps.

        This request also includes funding for the disaster administrative
    expenses within the discretionary spending budget caps. The amount
    requested for loan subsidy is $142 million. The amount requested for
    direct disaster loan making is $90 million, or 10 percent of the program
    level. The amount requested for direct disaster loan servicing is $34
    million, reflecting the increased cost of salaries and minor
    inflationary increases. The transfer to Salaries and Expenses for
    indirect expenses supporting this program is estimated at $30 million.

    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 1999 alone, SBA
    approved over 36,000 disaster loans, exceeding $936 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 65 percent in 1999 to 70
    percent in 2001. 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 has developed a standardized loan officer training
    curriculum, conducts quality reviews in each Disaster Area Office, began
    the process of automating the disaster loan making process, and reviewed
    the current processes for required policy, organizational, and
    procedural changes. SBA and FEMA will continue efforts to develop a
    joint loss inspection process.

        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 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.

        In addition, as mentioned above under systems modernization, the
    disaster program is developing a paperless home loan application and
    other delivery improvements that should substantially increase
    efficiencies and lower costs over time.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-1152-0-1-453      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................         146         136         154
    41.0  Grants, subsidies, and
            contributions...................         507         231         152
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         653         367         306
    ---------------------------------------------------------------------------

                     Disaster Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4150-0-3-453      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................         762         630         813
    00.02 Interest on Treasury borrowing....         579         388         388
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............       1,341       1,018       1,201
    08.02 Payment of downward reestimate to
            receipt account.................          10
    08.04 Payment of interest on downward
            reestimates to receipt account..           1
    08.06 Payment to liquidating account to
            purchase loan assets (73 4153)..                     226          96
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............          11         226          96
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,352       1,244       1,297
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................       3,956       5,124       4,169
    22.00 New financing authority (gross)...       3,182       2,071       2,159
    22.60 Portion applied to repay debt.....        -662      -1,782      -2,888
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       6,476       5,413       3,440
    23.95 Total new obligations.............      -1,352      -1,244      -1,297
    24.40 Unobligated balance available, end
            of year.........................       5,124       4,169       2,143
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.15   Authority to borrow (indefinite)         936         811         717

    [[Page 1092]]

          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).       2,244       1,297       1,442
    68.10     Change in receivables from
                program account.............           2         -37
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....       2,246       1,260       1,442
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       3,182       2,071       2,159
    ----------------------------------------------------------------------------

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

    72.40   Obligated balance, start of year         990         328          20
    72.95   Receivables from program account          39          41           4
                                               ---------   ---------  ----------
    72.99     Total unpaid obligations,
                start of year...............       1,029         369          24
    73.10 Total new obligations.............       1,352       1,244       1,297
    73.20 Total financing disbursements
            (gross).........................      -2,012      -1,589      -1,208
          Unpaid obligations, end of year:

    74.40   Obligated balance, end of year..         328          20         109
    74.95   Receivables from program account          41           4           4
                                               ---------   ---------  ----------
    74.99     Total unpaid obligations, end
                of year.....................         369          24         113
    87.00 Total financing disbursements
            (gross).........................       2,012       1,589       1,208
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Payments from program
                  account...................        -170        -270        -127
    88.00       Payments from program
                  account--reestimates......        -337
              Non-Federal sources:
    88.40       Repayments of principal, net        -566        -368        -385
    88.40       Collection of misc.
                  receivables...............        -962          -9
    88.40       Interest received on loans..        -209        -424        -407
    88.40       Proceeds from loan sales....                    -226        -523
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -2,244      -1,297      -1,442
          Against gross budget authority only:

    88.95   Change in receivables from
              program accounts..............          -2          37
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         936         811         717
    90.00 Financing disbursements...........        -232         292        -234
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4150-0-3-453      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................         814         221         951
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         814         221         951
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       5,605       5,658       5,827
          Disbursements:

    1231    Direct loan disbursements.......         755         510         902
    1233    Purchase of loans assets from a
              liquidating account...........                     140         290
          Repayments:

    1251    Repayments and prepayments......        -566        -368        -385
    1252    Proceeds from loan asset sales
              to the public or discounted...                                -424
    1262  Adjustments: Discount on loan
            asset sales to the public or
            discounted......................                              -1,644
    1264  Write-offs for default: Other
            adjustments, net................        -136        -113        -114
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       5,658       5,827       4,452
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, as amended,
    this non-budgetary account records all cash flows to and from the
    Government resulting from direct loans obligated in 1992 and beyond
    (including modifications of direct loans that resulted from obligations
    in any year). The amounts in this account are a means of financing and
    are not included in the budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   73-4150-0-3-453    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

            Investments in US securities:
              Receivables, net:
    1106        Program account.............          39             41             4              4
    1106        Interest/Accounts
                  Receivables...............       5,247          5,761         5,953          5,550
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..       5,605          5,658         5,687          3,756
    1405    Allowance for subsidy cost (-)..        -973         -1,439        -1,254         -1,254
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....       4,632          4,219         4,433          2,502
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       9,918         10,021        10,390          8,056
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............       9,918         10,021        10,390          8,056
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       9,918         10,021        10,390          8,056
        NET POSITION:
    3100  Appropriated capital..............
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       9,918         10,021        10,390          8,056
    -----------------------------------------------------------------------------------------------

                     Disaster Loan Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4153-0-3-453      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    01.01 Interest expense to Treasury......          51          51          17
    01.03 Other expenses....................           4          10          10
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          55          61          27
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance available,
            start of year...................         196          15
    22.00 New budget authority from
            offsetting collections (gross)..          70         130          29
    22.40 Capital transfer to general fund..        -196         -84          -2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          70          61          27
    23.95 Total new obligations.............         -55         -61         -27
    24.40 Unobligated balance available, end
            of year.........................          15
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         229         296         103
    69.47   Portion applied to repay debt...        -159        -166         -74
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          70         130          29
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    72.40 Unpaid obligations, start of year:
            Obligated balance, start of year          60          52          52
    73.10 Total new obligations.............          55          61          27
    73.20 Total outlays (gross).............         -63         -61         -27
    74.40 Unpaid obligations, end of year:
            Obligated balance, end of year..          52          52          52
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          59          61          27
    86.98 Outlays from mandatory balances...           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          63          61          27
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Asset Sale Proceeds (73-
                  4150).....................                    -226         -96

    [[Page 1093]]

    88.40       Loan repayments.............        -166         -50          -5
    88.40       Interest income.............         -52         -10          -1
    88.40       Other income................         -11         -10          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -229        -296        -103
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -159        -166         -74
    90.00 Outlays...........................        -165        -235         -76
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4153-0-3-453      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,254       1,067         487
          Repayments:

    1251    Repayments and prepayments......        -166         -50          -5
    1252    Proceeds from loan asset sales
              to the public or discounted...                    -104         -96
    1262  Adjustments: Discount on loan
            asset sales to the public or
            discounted......................                    -416        -386
    1263  Write-offs for default: Direct
            loans...........................         -21         -10
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,067         487
    ---------------------------------------------------------------------------

        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    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................          64             52            42              5
    0102  Expense...........................         -93            -53           -43            -16
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............         -29             -1            -1            -11
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   73-4153-0-3-453    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         256            226           200            133
    1206  Non-Federal assets: Receivables,
            net.............................          64             59            51              5
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............       1,254          1,067           487
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -114            -46           -30
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       1,140          1,021           457
          Other Federal assets:

    1801    Cash and other monetary assets..
    1803    Property, plant and equipment,
              net...........................           1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       1,461          1,306           708            138
        LIABILITIES:
    2102  Federal liabilities: Interest
            payable.........................          59             52            31             20
    2201  Non-Federal liabilities: Accounts
            payable.........................       1,402          1,254           990            586
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       1,461          1,306         1,021            606
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       1,461          1,306         1,021            606
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4153-0-3-453      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           4          10          10
    43.0  Interest and dividends............          51          51          17
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          55          61          27
    ---------------------------------------------------------------------------

              Pollution Control Equipment Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4147-0-3-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................           3           3           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           3           3           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
          Unobligated balance available, start of year:

    21.40   Unobligated balance available,
              start of year.................          12           9           8
    21.40   Unobligated balance available,
              start of year.................           2          -9          -8
                                               ---------   ---------  ----------
    21.99   Total unobligated balance, start
              of year.......................          14
    22.00 New budget authority (gross)......           4           3           1
    22.40 Capital transfer to general fund..         -14          -2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           4           1           1
    23.95 Total new obligations.............          -3          -3          -1
          Unobligated balance available, end of year:

    24.40   Unobligated balance available,
              end of year...................           9           8           8
    24.40   Unobligated balance available,
              end of year...................          -9          -8          -8
                                               ---------   ---------  ----------
    24.99   Total unobligated balance, end
              of year.......................
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    67.15   Authority to borrow (indefinite)           4           3           1
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           2           3           1
    86.98 Outlays from mandatory balances...           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           3           3           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           4           3           1
    90.00 Outlays...........................           2           3           1
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4147-0-3-376      1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........          57          46          35
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....
    2263    Terminations for default that
              result in claim payments......         -11         -11         -11
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          46          35          24
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          46          35          24
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......          45          47          46
    2331    Disbursements for guaranteed
              loan claims...................           3
    2351    Repayments of loans receivable..          -1          -1          -1
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......          47          46          45
    ---------------------------------------------------------------------------

        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

    [[Page 1094]]

    obligations would preclude the SBA from paying excessive interest over
    the next ten years.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   73-4147-0-3-376    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................                          4             3              1
    0102  Expense...........................           3             -3            -3             -1
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............           3              1
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   73-4147-0-3-376    1998 actual    1999 actual     2000 est.      2001 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................          14              2            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              8             6              6
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          29             19            26             26
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............          22            -29            21             21
    2201  Non-Federal liabilities: Accounts
            payable.........................
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          22            -29            21             21
        NET POSITION:
    3100  Appropriated capital..............
    3300  Cumulative results of operations..           7             48             5              5
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............           7             48             5              5
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          29             19            26             26
    -----------------------------------------------------------------------------------------------

             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, 2000, as enacted by section 1000(a)(1) of the
    Consolidated Appropriations Act, 2000 (P.L. 106-113).)

                          General Fund Receipt Accounts

                               (in millions of dollars)

    ----------------------------------------------------------------------------
                                             1999 actual   2000 est.   2001 est.
    ----------------------------------------------------------------------------
    Offsetting receipts from the public:
      73-272130  Disaster loan program,
        downward reestimates of subsidies...          10
      73-272230  Business loan program,
        Downward resstimates of subsidies...         695         301
                                               ---------   ---------  ----------
    General Fund Offsetting receipts from
     the public.............................         705         301
    ---------------------------------------------------------------------------