[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
---------------------------------------------------------------------------
