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


                     THE BUDGET FOR FISCAL YEAR 2005

[[Page 1067]]

 
                      SMALL BUSINESS ADMINISTRATION

    For 2005, the Small Business Administration (SBA) budget requests 
$678.4 million in new budget authority. SBA's continuing operations will 
provide nearly $25 billion in new loans to small businesses, funding for 
non-credit programs, and funding for the disaster loan program. SBA has 
revised its 7(a) loan subsidy model to more accurately reflect the costs 
of the program.

                              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] 106-554, 
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, [$325,750,000] $326,259,000: 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 
[$89,000,000] $88,000,000 shall be available to fund grants for 
performance in fiscal year [2004] 2005 or fiscal year [2005] 2006 as 
authorized. (Division B, H.R. 2673, Consolidated Appropriations Bill, FY 
2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-0100-0-1-376      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Government contracting and 
        minority enterprise development.          26          29          25
00.02 Disaster assistance...............         119         108         108
00.03 Office of Chief Information 
        Officer.........................                      18          28
00.04 Management and administration.....         141         114          78
00.05 Executive direction...............           4           5           6
00.06 General counsel...................           9           9          10
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..........................           6           7           7
00.12 Field operations..................           1           1           2
00.13 Equal employment opportunity and 
        civil rights compliance.........           2           2           2
00.14 Regional and district offices.....         146         145         151
00.15 Chief financial officer...........          10           9          10
00.16 Capital Access....................          58          51          32
00.17 Entrepreneurial development.......         113         115         112
00.18 Small disadvantaged businesses....           1           2           2
00.19 Veteran's Business Development....           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........         642         621         579
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          56           8           1
22.00 New budget authority (gross)......         596         613         579
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         652         621         580
23.95 Total new obligations.............        -642        -621        -579
23.98 Unobligated balance expiring or 
        withdrawn.......................          -2
24.40 Unobligated balance carried 
        forward, end of year............           8           1           1
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         369         371         326
40.35   Appropriation permanently 
          reduced.......................          -2          -4
40.36   Unobligated balance permanently 
          reduced.......................         -14
42.00   Transferred from other accounts.           1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         354         367         326
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............         242         246         253
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         596         613         579
    Change in obligated balances:
72.40 Obligated balance, start of year..         294         311         322
73.10 Total new obligations.............         642         621         579
73.20 Total outlays (gross).............        -616        -610        -597
73.40 Adjustments in expired accounts 
        (net)...........................          -8
74.40 Obligated balance, end of year....         311         322         304
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         488         448         432
86.93 Outlays from discretionary 
        balances........................         128         162         165
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         616         610         597
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Payments from business loan 
            program account.............        -128        -127        -129
88.00     Payments from disaster loan 
            program account.............        -109        -113        -118
88.00     Federal sources...............          -5          -3          -3
88.40     Non-Federal sources...........          -3          -3          -3
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -245        -246        -253
      Against gross budget authority only:

88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............           3
    Net budget authority and outlays:
89.00 Budget authority..................         354         367         326
90.00 Outlays...........................         371         364         344
---------------------------------------------------------------------------

    The appropriation for this account is necessary to cover the 
administrative expenses for headquarters and non-credit programs.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-0100-0-1-376      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............         185         184         192
11.3    Other than full-time permanent..          11          11          11
11.5    Other personnel compensation....           3           3           3
                                           ---------   ---------  ----------
11.9      Total personnel compensation..         199         198         206
12.1  Civilian personnel benefits.......          47          50          50
21.0  Travel and transportation of 
        persons.........................           4           4           4
23.1  Rental payments to GSA............          34          36          38
23.3  Communications, utilities, and 
        miscellaneous charges...........           6           6           6
24.0  Printing and reproduction.........           1           1           1
25.2  Other services....................          36          31          51
25.3  Other purchases of goods and 
        services from Government 
        accounts (disaster loan making).          95          82          82
25.3  Other purchases of goods and 
        services from Government 
        accounts (disaster loan serv)...          24          26          26
26.0  Supplies and materials............           2           1           2
31.0  Equipment.........................           2           1           2
41.0  Grants, subsidies, and 
        contributions...................         192         185         111
                                           ---------   ---------  ----------
99.9    Total new obligations...........         642         621         579
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 73-0100-0-1-376      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................       3,662       3,786       3,786
---------------------------------------------------------------------------
    Note.--The personnel summary includes regular (non-disaster) full-
time equivalents (FTEs) of 2633, 2618, and 2618 in 2003, 2004, and 2005 
respectively.

                                

                       Office of Inspector General

    For necessary expenses of the Office of Inspector General in 
carrying out the provisions of the Inspector General Act of 1978, 
[$13,000,000] $14,500,000. (Division B, H.R. 2673, Consolidated 
Appropriations Bill, FY 2004.)

[[Page 1068]]

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-0200-0-1-376      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 General Office....................           1           1           1
00.02 Audit.............................           5           6           7
00.03 Investigations....................           6           7           7
00.04 Management / Legal Counsel / 
        Inspection and Evaluation.......           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........          13          15          16
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          13          15          16
23.95 Total new obligations.............         -13         -15         -16
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          12          14          15
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............           1           1           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          13          15          16
    Change in obligated balances:
73.10 Total new obligations.............          13          15          16
73.20 Total outlays (gross).............         -12         -15         -16
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          12          14          15
86.93 Outlays from discretionary 
        balances........................                       1           1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          12          15          16
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Payments from disaster 
          loan program account..........          -1          -1          -1
    Net budget authority and outlays:
89.00 Budget authority..................          12          14          15
90.00 Outlays...........................          11          14          15
---------------------------------------------------------------------------

    The budget proposes $14.5 million in new budget authority and $0.5 
million transferred from the Disaster Loans Program account for a total 
of $15.0 million for the Office of Inspector General (OIG) for 2005. 
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.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-0200-0-1-376      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........           9          10          10
11.5      Other personnel compensation..           1           1           1
                                           ---------   ---------  ----------
11.9        Total personnel compensation          10          11          11
12.1    Civilian personnel benefits.....           1           1           1
25.2    Other services..................           1           1           2
                                           ---------   ---------  ----------
99.0      Direct obligations............          12          13          14
99.5  Below reporting threshold.........           1           2           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........          13          15          16
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 73-0200-0-1-376      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         100         103         103
---------------------------------------------------------------------------

                                

Public enterprise funds:

                  Surety Bond Guarantees Revolving Fund

    For additional capital for the Surety Bond Guarantees Revolving 
Fund, authorized by the Small Business Investment Act, as amended, 
$11,400,000, to remain available until expended. (15 U.S.C. 631 nte.).

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4156-0-3-376      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Reimbursable obligations..........           9          11          13
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 42.0)...................           9          11          13
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          26          23          19
22.00 New budget authority (gross)......           6           7          21
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          32          30          40
23.95 Total new obligations.............          -9         -11         -13
24.40 Unobligated balance carried 
        forward, end of year............          23          19          27
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                                  11
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............           6           7          10
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................           6           7          21
    Change in obligated balances:
72.40 Obligated balance, start of year..           1
73.10 Total new obligations.............           9          11          13
73.20 Total outlays (gross).............          -9         -11         -14
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           6           7          10
86.93 Outlays from discretionary 
        balances........................           3           4           4
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           9          11          14
    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....          -6          -7         -10
    Net budget authority and outlays:
89.00 Budget authority..................                                  11
90.00 Outlays...........................           4           4           4
---------------------------------------------------------------------------

    SBA is authorized to issue bond guarantees to surety companies for 
construction, service, and supply contracts that do not exceed 
$2,000,000 and to reimburse these sureties up to 90 percent of the 
losses sustained if the contractor defaults. 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 2005, the budget proposes a $1.7 billion program level that is 
anticipated to be sufficient to accommodate demand from prior-approval 
and preferred sureties. 

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   73-4156-0-3-376    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....          27             23
        Investments in US securities:
1106      Receivables, net..............           5              6
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          32             29
    LIABILITIES:
2201  Non-Federal liabilities: Accounts 
        payable.........................          16             20
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          16             20
    NET POSITION:
3100  Appropriated capital..............         289            281
3300  Cumulative results of operations..        -273           -272
                                        ------------ --------------  ------------  -------------
3999    Total net position..............          16              9
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          32             29
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

Credit accounts:

                     Business Loans Program Account

    [For the cost of direct loans, $1,910,000, to be available until 
expended; and for the cost of guaranteed loans, $79,132,000, as 
authorized by 15 U.S.C. 631 note, of which $45,000,000 shall remain 
avail

[[Page 1069]]

able until September 30, 2005: Provided, That such costs, including the 
cost of modifying such loans, shall be as defined in section 502 of the 
Congressional Budget Act of 1974: Provided further, That during] Subject 
to section 502 of the Congressional Budget Act of 1974, during fiscal 
year [2004] 2005 commitments to guarantee loans under section 503 of the 
Small Business Investment Act of 1958, shall not exceed $4,500,000,000: 
Provided further, That during fiscal year [2004] 2005 commitments for 
general business loans authorized under section 7(a) of the Small 
Business Act, 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] 
$12,500,000,000: Provided further, That during fiscal year [2004] 2005 
commitments to guarantee loans for debentures and participating 
securities under section 303(b) of the Small Business Investment Act of 
1958, shall not exceed the levels established by section 20(i)(1)(C) of 
the Small Business Act: Provided further, That during fiscal year 2005 
guarantees of trust certificates authorized by section 5(g) of the Small 
Business Act shall not exceed a principal amount of $10,000,000,000.
    In addition, for administrative expenses to carry out the direct and 
guaranteed loan programs, [$128,000,000] $129,000,000, which may be 
transferred to and merged with the appropriations for Salaries and 
Expenses. (Division B, H.R. 2673, Consolidated Appropriations Bill, FY 
2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-1154-0-1-376      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............           4           2
00.02 Guaranteed loan subsidy...........         103          95
00.05 Reestimate of direct loan.........           2
00.06 Interest on direct loan 
        reestimation....................           2
00.07 Reestimate of loan guarantee 
        subsidy.........................         526       1,940
00.08 Interest on reestimates of loan 
        guarantee subsidy...............         163         465
00.09 Administrative expenses...........         128         127         129
                                           ---------   ---------  ----------
10.00   Total new obligations...........         928       2,629         129
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          70          42          26
22.00 New budget authority (gross)......         899       2,612         129
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         970       2,654         155
23.95 Total new obligations.............        -928      -2,629        -129
24.40 Unobligated balance carried 
        forward, end of year............          42          26          26
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         245         209         129
40.35   Appropriation permanently 
          reduced.......................         -29          -2
40.36   Unobligated balance permanently 
          reduced.......................         -10
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         206         207         129
      Mandatory:

60.00   Appropriation...................         693       2,405
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         899       2,612         129
    Change in obligated balances:
72.40 Obligated balance, start of year..          98          87          91
73.10 Total new obligations.............         928       2,629         129
73.20 Total outlays (gross).............        -938      -2,624        -158
73.45 Recoveries of prior year 
        obligations.....................          -1
74.40 Obligated balance, end of year....          87          91          62
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         142         130          81
86.93 Outlays from discretionary 
        balances........................         103          89          77
86.97 Outlays from new mandatory 
        authority.......................         693       2,405
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         938       2,624         158
    Net budget authority and outlays:
89.00 Budget authority..................         899       2,612         129
90.00 Outlays...........................         938       2,624         158
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 73-1154-0-1-376      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001Micro loans.......................          29          20
                                           ---------   ---------  ----------
115901Total direct loan levels..........          29          20
    Direct loan subsidy (in percent):
132001Micro loans.......................       13.05        9.55       10.25
                                           ---------   ---------  ----------
132901Weighted average subsidy rate.....       13.05        9.55       10.25
    Direct loan subsidy budget authority:
133001Micro loans.......................           4           2
                                           ---------   ---------  ----------
133901Total subsidy budget authority....           4           2
    Direct loan subsidy outlays:
134001Micro loans.......................           3           1
                                           ---------   ---------  ----------
134901Total subsidy outlays.............           3           1
    Direct loan upward reestimate subsidy budget 
                authority:
135001Micro loans.......................           4
                                           ---------   ---------  ----------
135901Total upward reestimate budget 
        authority.......................           4
    Direct loan downward reestimate subsidy budget 
                authority:
137001Micro loans.......................          -2
                                           ---------   ---------  ----------
137901Total downward reestimate budget 
        authority.......................          -2
----------------------------------------------------------------------------

    Guaranteed loan levels supportable by subsidy 
                budget authority:
215001Microloan guarantees..............                       2
215002General business--7(a)............       8,938       9,484      12,500
215002General business--7(a)-terrorist 
        response........................       1,538
215003General business--7(a) DELTA......           1
215004Section 504.......................       3,142       4,500       4,500
215005Section 504 DELTA.................
215006SBIC debentures...................         461       3,000       3,000
215007SBIC participating securities.....       1,185       4,000       4,000
215008New Market Venture Capital........          53
215009Secondary market guarantee........                               5,000
                                           ---------   ---------  ----------
215901Total loan guarantee levels.......      15,318      20,986      29,000
    Guaranteed loan subsidy (in percent):
232001Microloan guarantees..............        8.42        8.66        8.66
232002General business--7(a)............        1.04        1.06
232002General business--7(a)-terrorist 
        response........................        1.04
232003General business--7(a) DELTA......        1.51        1.56
232004Section 504.......................
232005Section 504 DELTA.................        0.88        0.62        1.32
232006SBIC debentures...................
232007SBIC participating securities.....
232008New Market Venture Capital........       15.46       16.05       16.03
232009Secondary market guarantee........
                                           ---------   ---------  ----------
232901Weighted average subsidy rate.....        0.77        0.38
    Guaranteed loan subsidy budget authority:
233001Microloan guarantees..............
233002General business--7(a)............          93          79
233002General business--7(a)-terrorist 
        response........................          16
233003General business--7(a) DELTA......           1
233004Section 504.......................
233005Section 504 DELTA.................
233006SBIC debentures...................
233007SBIC participating securities.....
233008New Market Venture Capital........           8
2330097(a) secondary market.............
                                           ---------   ---------  ----------
233901Total subsidy budget authority....         118          79
    Guaranteed loan subsidy outlays:
234001Microloan guarantees..............
234002General business--7(a)............          76          86
234002General business--7(a)-terrorist 
        response........................          11
234003General business--7(a) DELTA......           1
234004Section 504.......................
234005Section 504 DELTA.................
234006SBIC debentures...................
234007SBIC participating securities.....
234008New Market Venture Capital........           8           3
2340097(a) secondary market.............
                                           ---------   ---------  ----------
234901Total subsidy outlays.............          96          89
    Guaranteed loan upward reestimate subsidy 
                budget authority:
235001Microloan guarantees..............
235002General business--7(a)............         189         305

[[Page 1070]]

235003General business--7(a) DELTA......
235004Section 504.......................         146           3
235005Section 504 DELTA.................
235006SBIC debentures...................          27         127
235007SBIC participating securities.....         327       1,865
235008New Market Venture Capital........
235009Secondary market guarantee........                     105
                                           ---------   ---------  ----------
235901Total upward reestimate budget 
        authority.......................         689       2,405
    Guaranteed loan downward reestimate subsidy 
                budget authority:
237001Microloan guarantees..............
237002General business--7(a)............        -158        -106
237003General business--7(a) DELTA......
237004Section 504.......................         -10         -82
237005Section 504 DELTA.................
237006SBIC debentures...................         -34         -38
237007SBIC participating securities.....         -54
237008New Market Venture Capital........
2370097(a) secondary market.............
                                           ---------   ---------  ----------
237901Total downward reestimate subsidy 
        budget authority................        -256        -226
----------------------------------------------------------------------------

    Administrative expense data:
351001Budget authority..................         128         129         129
358001Outlays from balances.............
359001Outlays from new authority........         128         129         129
---------------------------------------------------------------------------

    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 2005, the budget proposes $129 million in new budget authority 
for the Business Loans Program account. This amount will be used to 
administer the loan programs. For all business loan programs, borrowers' 
fees are sufficient to cover subsidy obligations.

    The Section 7(a) program provides general business credit 
assistance. The requested program level for 2005 is $12.5 billion. The 
Section 504 CDC Program is for long-term fixed rate financing and will 
require a program level of $4.5 billion in 2005. The Small Business 
Investment Companies (SBIC) program provides debt and equity capital. 
The budget proposes a program level of $4 billion for SBIC Participating 
Securities and $3 billion for SBIC Debentures.

    As part of the Secondary Market Guarantee (SMG), the Master Reserve 
Fund (MRF) is maintained by the SBA's fiscal agent as part of its 
administration of the secondary market program. SBA's loan pooling 
program provides for the pooling of loans having terms that vary with a 
range prescribed by SBA, while the secondary investors have a fixed term 
for their investment that is the term of the longest loan in the pool. 
The MRF balances include the principal portion of the borrowers' first 
payment for pooled loans and interest on borrowers' payments received 
prior to their disbursement to the secondary holders. The earnings on 
the balances are used to fund the SBA's guarantee of the timely payment 
of principal and interest owed to the holders of SBA guaranteed pool 
securities and to pay expenses of the MRF trustee and investment 
advisor.

    To improve financial management of the MRF, SBA will budget for the 
secondary market program in accordance with the Federal Credit Reform 
Act. SBA has refined its subsidy estimates and is accounting for loans 
in both financing and liquidating accounts. SBA's secondary market 
program has approximately $13 billion of currently outstanding 
investments held by secondary market pool holders.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-1154-0-1-376      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.2  Other services....................         128         129         129
41.0  Grants, subsidies, and 
        contributions...................         800       2,500
                                           ---------   ---------  ----------
99.9    Total new obligations...........         928       2,629         129
---------------------------------------------------------------------------

                                

                 Business Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4148-0-3-376      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................          25          20
00.02 Interest on Treasury borrowing....          30          33          26
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal......................          55          53          26
08.02 Payment of downward reestimate to 
        a receipt account...............           1
08.04 Payment of interest on downward 
        reestimate to a receipt account.           1
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal......................           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........          57          53          26
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         309         315
22.00 New financing authority (gross)...          78          72          26
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
22.60 Portion applied to repay debt.....         -17        -334
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         371          53          26
23.95 Total new obligations.............         -57         -53         -26
24.40 Unobligated balance carried 
        forward, end of year............         315
    New financing authority (gross), detail:
      Discretionary:

47.00   Authority to borrow.............          27          17
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............          51          55          26
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................          78          72          26
    Change in obligated balances:
72.40 Obligated balance, start of year..          23          28          20
73.10 Total new obligations.............          57          53          26
73.20 Total financing disbursements 
        (gross).........................         -51         -61         -25
73.45 Recoveries of prior year 
        obligations.....................          -1
74.40 Obligated balance, end of year....          28          20          21
87.00 Total financing disbursements 
        (gross).........................          51          61          25
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: Payments from 
            program account.............          -3          -2
88.00     Upward reestimate.............          -2
88.00     Interest on reestimate........          -2
88.25     Interest on uninvested funds..         -23         -14
88.40     Repayments of principal, net..         -15         -18         -15
88.40     Other income..................          -6         -21         -11
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -51         -55         -26
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............          27          17
90.00 Financing disbursements...........                       6          -1
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4148-0-3-376      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........          25          20
                                           ---------   ---------  ----------
1150    Total direct loan obligations...          25          20
----------------------------------------------------------------------------

[[Page 1071]]


    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         119         127         124
1231  Disbursements: Direct loan 
        disbursements...................          23          19
1251  Repayments: Repayments and 
        prepayments.....................         -15         -16         -16
1263  Write-offs for default: Direct 
        loans...........................                      -6          -6
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         127         124         102
---------------------------------------------------------------------------

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

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   73-4148-0-3-376    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         333            343
        Investments in US securities:
1106      Receivables, net..............           4
      Non-Federal assets:

1206    Receivables, net................           1
1207    Advances and prepayments........           1
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..         119            127
1405    Allowance for subsidy cost (-)..         -10            -10
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....         109            117
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         448            460
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................           1              2
2103    Debt............................         443            454
2207  Non-Federal liabilities: Other....           4              4
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         448            460
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         448            460
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

               Business Guaranteed Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4149-0-3-376      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Interest on Treasury borrwing:
      Obligations by program activity:

00.01   Default claims..................       1,247       2,311       2,000
00.02   Interet on Treasury borrowing...          74         173         125
00.05 Other Expenses....................          26          13          15
                                           ---------   ---------  ----------
00.91 Direct Program by Activities--
        Subtotal........................       1,347       2,497       2,140
                                           ---------   ---------  ----------
02.00 Interest on Treasury borrowing....       1,347       2,497       2,140
08.02 Payment of downward reestimate to 
        receipt account.................         222         189
08.04 Payment of interest on downward 
        reestimate to receipt account...          34          37
                                           ---------   ---------  ----------
08.91 Direct Program by Activities--
        Subtotal........................         256         226
                                           ---------   ---------  ----------
10.00 Total new obligations.............       1,603       2,723       2,140
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         234         226       1,032
22.00 New financing authority (gross)...       1,653       3,529       1,612
22.60 Portion applied to repay debt.....         -58
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,829       3,755       2,644
23.95 Total new obligations.............      -1,603      -2,723      -2,140
24.40 Unobligated balance carried 
        forward, end of year............         226       1,032         504
    New financing authority (gross), detail:
      Discretionary:

47.00   Authority to borrow.............         300         400         500
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...       1,353       3,129       1,112
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................           1
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......       1,354       3,129       1,112
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................       1,654       3,529       1,612
    Change in obligated balances:
72.40 Obligated balance, start of year..          19         -45          22
73.10 Total new obligations.............       1,603       2,723       2,140
73.20 Total financing disbursements 
        (gross).........................      -1,666      -2,656      -1,600
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -1
74.40 Obligated balance, end of year....         -45          22         562
87.00 Total financing disbursements 
        (gross).........................       1,666       2,656       1,600
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Payments from program account.         -96         -89
88.00     Upward reestimate.............        -526      -1,940
88.00     Interest on reestimate........        -163        -465
88.40     Fees..........................        -315        -350        -800
88.40     Recoveries....................        -249        -275        -300
88.40     other.........................          -4         -10         -12
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -1,353      -3,129      -1,112
      Against gross financing authority only:

88.95   Change in receivables from 
          program accounts..............          -1
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............         299         400         500
90.00 Financing disbursements...........         313        -473         488
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4149-0-3-376      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........      15,318      20,986      29,000
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................      15,318      20,986      29,000
2199  Guaranteed amount of guaranteed 
        loan commitments................      12,392      16,600      23,000
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........      40,023      52,630      56,858
2231  Disbursements of new guaranteed 
        loans...........................      12,796      15,000      21,000
2251  Repayments and prepayments........      -7,866      -8,420      -9,100
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....      -1,248      -2,315      -1,264
2264    Other adjustments, net..........       8,925         -37         -38
                                           ---------   ---------  ----------
2290    Outstanding, end of year........      52,630      56,858      67,456
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..      51,525      42,000      54,000
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......       1,304       1,840       3,546
2331    Disbursements for guaranteed 
          loan claims...................       1,248       2,315       1,264
2351    Repayments of loans receivable..        -249        -223        -227
2361    Write-offs of loans receivable..        -532        -294        -567
2364    Other adjustments, net..........          69         -92        -177
                                           ---------   ---------  ----------
2390      Outstanding, end of year......       1,840       3,546       3,839
---------------------------------------------------------------------------

    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.

[[Page 1072]]

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   73-4149-0-3-376    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         253            181
        Investments in US securities:
1106      Receivables, net..............         669             18
1206  Non-Federal assets: Receivables, 
        net.............................          61             30
      Net value of assets related to 
          post-1991 acquired defaulted 
          guaranteed loans receivable:

1501    Defaulted guaranteed loans 
          receivable, net...............       1,304          1,840
1505    Allowance for subsidy cost (-)..         -36
                                        ------------ --------------  ------------  -------------
1599      Net present value of assets 
            related to defaulted 
            guaranteed loans............       1,268          1,840
1901  Other Federal assets: Public and 
        other...........................         377            720
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       2,628          2,789
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................          73              5
2103    Debt............................         850          1,092
2105    Other...........................         251
      Non-Federal liabilities:

2201    Accounts payable................         103             54
2204    Liabilities for loan guarantees.       1,358          1,626
2207    Other...........................          -7             12
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       2,628          2,789
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       2,628          2,789
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

                 Business Loan Fund Liquidating Account 

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4154-0-3-376      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Interest Expense to Treasury......          10           8           6
00.05 Guaranteed loan default claims....           6           5           4
                                           ---------   ---------  ----------
10.00   Total new obligations...........          16          13          10
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         283         143
22.00 New budget authority (gross)......          66         105          48
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          92
22.40 Capital transfer to general fund..        -257        -212         -17
22.60 Portion applied to repay debt to 
        FFB.............................         -25         -23         -21
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         159          13          10
23.95 Total new obligations.............         -16         -13         -10
24.40 Unobligated balance carried 
        forward, end of year............         143
    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................                      50
69.00 Offsetting collections (cash).....          67          55          48
69.10 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -1
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................          66          55          48
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          66         105          48
    Change in obligated balances:
72.40 Obligated balance, start of year..          82          36          21
73.10 Total new obligations.............          16          13          10
73.20 Total outlays (gross).............          29         -28         -24
73.45 Recoveries of prior year 
        obligations.....................         -92
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................           1
74.40 Obligated balance, end of year....          36          21           7
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         -29          28          24
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............           3
          Loan repayments:
88.40       Financing programs-principal         -15         -13         -11
88.40       Investment programs-
              principal.................         -10          -8          -7
88.40       Interest Income-Business & 
              investment................          -6          -3          -3
88.40       Fees........................          -5          -4          -3
88.40       Collection on FFB loans.....         -25         -23         -21
88.40       Other Income-both Business 
              and Investment............          -9          -4          -3
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -67         -55         -48
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................           1
    Net budget authority and outlays:
89.00 Budget authority..................                      50
90.00 Outlays...........................         -96         -27         -24
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4154-0-3-376      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
          Business Loan Fund, Direct 
              Loans
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         148         106          76
1231  Disbursements: Direct loan 
        disbursements...................           4           4           3
      Repayments:

1251    Repayments and prepayments......         -39         -30         -22
1252    Proceeds from loan asset sales 
          to the public or discounted...          -1
      Write-offs for default:

1263    Direct loans....................         -11          -4          -3
1264    Other adjustments, net..........           5
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         106          76          54
----------------------------------------------------------------------------

          Small Business Investment 
              Company, Direct Loans
          Section 503 Development 
              Company, Direct Loans
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         103          78          55
1251  Repayments: Repayments and 
        prepayments.....................         -25         -23         -21
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          78          55          34
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4154-0-3-376      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
          Business Loan Fund, Loan 
              Guarantees
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........       1,067         758         561
2231  Disbursements of new guaranteed 
        loans...........................           4           4           3
2251  Repayments and prepayments........        -299        -191        -150
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....          -7         -10          -8
2264    Other adjustments, net..........          -7
                                           ---------   ---------  ----------
2290    Outstanding, end of year........         758         561         406
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..         666         505         365
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......         378         342         321
2331    Disbursements for guaranteed 
          loan claims...................           7          10           8
2351    Repayments of loans receivable..         -32         -19         -15
2361    Write-offs of loans receivable..         -11          -8          -7
2364    Other adjustments, net..........                      -4          -3
                                           ---------   ---------  ----------
2390      Outstanding, end of year......         342         321         304
---------------------------------------------------------------------------

    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

[[Page 1073]]

loans or loan guarantees that resulted from obligations or commitments 
in any year) is recorded in corresponding program and financing 
accounts.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   73-4154-0-3-376    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         365            179
        Investments in US securities:
1106      Receivables, net..............           5              3
1107      Advances and prepayments......           4
      Non-Federal assets:

1206    Receivables, net................          12              1
1207    Advances and prepayments........                          4
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............         251            184
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................         -74
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................         177            184
      Other Federal assets:

1901    Other assets....................         207             46
1901    Other assets 7(a) secondary 
          market........................         296
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       1,066            417
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................          19             32
2102    Interest payable................          73
2103    Debt............................          29             80
2105    Other Liabilities...............         380            274
      Non-Federal liabilities:

2201    Accounts payable................         233              6
2204    Liabilities for 7(a) secondary 
          market........................         314
2207    Other Liabilities...............          18             25
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       1,066            417
    NET POSITION:
3300  Cumulative results of operations..
                                        ------------ --------------  ------------  -------------
3999    Total net position..............
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       1,066            417
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4154-0-3-376      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
42.0  Insurance claims and indemnities..           6           5           4
43.0  Interest and dividends............          10           8           6
                                           ---------   ---------  ----------
99.9    Total new obligations...........          16          13          10
---------------------------------------------------------------------------

                                

                     Disaster Loans Program Account

    For the cost of direct loans authorized by section 7(b) of the Small 
Business Act, [$56,188,000] $78,887,000, to remain available until 
expended: Provided, That such costs, including the cost of modifying 
such loans, shall be as defined in section 502 of the Congressional 
Budget Act of 1974.
    In addition, for administrative expenses to carry out the direct 
loan program, [$114,363,000] $118,354,000 to be available until 
expended, 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; of 
which [$105,363,000] $108,000,000 is for direct administrative expenses 
of loan making and servicing to carry out the direct loan program; and 
of which [$8,500,000] $9,854,000 is for indirect administrative 
expenses: Provided, That any amount in excess of [$8,500,000,000] 
$9,854,000 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. (Division B, 
H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-1152-0-1-453      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............         117          80          79
00.05 Upward reestimate of direct loans.         305         629
00.06 Interest on upward reestimates of 
        direct loans....................         163         434
00.09 Administrative expense............         116         113         118
                                           ---------   ---------  ----------
10.00   Total new obligations...........         701       1,256         197
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          71          38          14
22.00 New budget authority (gross)......         666       1,232         197
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          11
22.21 Unobligated balance transferred to 
        other accounts..................          -9
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         739       1,270         211
23.95 Total new obligations.............        -701      -1,256        -197
24.40 Unobligated balance carried 
        forward, end of year............          38          14          14
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         191         171         197
40.35   Appropriation permanently 
          reduced.......................          -1          -2
41.00   Transferred to other accounts...          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         189         169         197
      Mandatory:

60.00   Appropriation...................         468       1,063
      Discretionary:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           9
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         666       1,232         197
    Change in obligated balances:
72.40 Obligated balance, start of year..          38          36          41
73.10 Total new obligations.............         701       1,256         197
73.20 Total outlays (gross).............        -692      -1,251        -201
73.45 Recoveries of prior year 
        obligations.....................         -11
74.40 Obligated balance, end of year....          36          41          37
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         154         130         152
86.93 Outlays from discretionary 
        balances........................          70          58          49
86.97 Outlays from new mandatory 
        authority.......................         468       1,063
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         692       1,251         201
    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..................         657       1,232         197
90.00 Outlays...........................         683       1,251         201
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 73-1152-0-1-453      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001Disaster Loan.....................         663         758         614
115001EIDL Terrorist Attack.............          99
115001PHY Terrorist Attack..............           7
                                           ---------   ---------  ----------
115901Total direct loan levels..........         769         758         614
    Direct loan subsidy (in percent):
132001Disaster Loan.....................       13.98       11.72       12.86
132001EIDL Terrorist Attack.............       23.20
132001PHY Terrorist Attack..............       13.98
                                           ---------   ---------  ----------
132901Weighted average subsidy rate.....       15.21       11.72       12.86
    Direct loan subsidy budget authority:
133001Disaster Loan.....................          93          56          79
133001EIDL Terrorist Attack.............          23
133001PHY Terrorist Attack..............           1
                                           ---------   ---------  ----------
133901Total subsidy budget authority....         117          56          79
    Direct loan subsidy outlays:
134001Disaster Loan.....................          83          75          83

[[Page 1074]]

134001EIDL Terrorist Attack.............          14
134001PHY Terrorist Attack..............           1
                                           ---------   ---------  ----------
134901Total subsidy outlays.............          98          75          83
    Direct loan upward reestimate subsidy budget 
                authority:
135001Disaster Loan.....................         468       1,063
                                           ---------   ---------  ----------
135901Total upward reestimate budget 
        authority.......................         468       1,063
    Direct loan downward reestimate subsidy budget 
                authority:
137001Disaster Loan.....................         -42          -5
                                           ---------   ---------  ----------
137901Total downward reestimate budget 
        authority.......................         -42          -5
----------------------------------------------------------------------------

    Administrative expense data:
351001Budget authority..................         116         114         118
359001Outlays from new authority........         116         113         118
---------------------------------------------------------------------------

    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.

    For 2005, SBA will rely on anticipated carry-over balances of $13 
million from 2004 plus $10 million in recoveries to support $792 million 
in loans. The subsidy rate is 12.86 percent. 

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-1152-0-1-453      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.2  Other services....................         116         113         118
41.0  Grants, subsidies, and 
        contributions...................         585       1,143          79
                                           ---------   ---------  ----------
99.9    Total new obligations...........         701       1,256         197
---------------------------------------------------------------------------

                                

                 Disaster Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4150-0-3-453      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................         745         758         792
00.02 Interest on Treasury borrowing....         504         565         600
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal......................       1,249       1,323       1,392
08.02 Payment of downward reestimate to 
        a receipt account...............          39           5
08.04 Payment of interest on downward 
        reestimate to a receipt account.           3
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal......................          42           5
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,291       1,328       1,392
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       5,486       1,192
22.00 New financing authority (gross)...       2,407       2,471       1,460
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          83
22.60 Portion applied to repay debt.....      -5,493      -2,335         -68
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       2,483       1,328       1,392
23.95 Total new obligations.............      -1,291      -1,328      -1,392
24.40 Unobligated balance carried 
        forward, end of year............       1,192
    New financing authority (gross), detail:
      Discretionary:

47.00   Authority to borrow.............         831         669         690
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...       1,625       1,802         770
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -49
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......       1,576       1,802         770
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................       2,407       2,471       1,460
    Change in obligated balances:
72.40 Obligated balance, start of year..         186         193
73.10 Total new obligations.............       1,291       1,328       1,392
73.20 Total financing disbursements 
        (gross).........................      -1,250      -1,521      -1,200
73.45 Recoveries of prior year 
        obligations.....................         -83
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          49
74.40 Obligated balance, end of year....         193                     192
87.00 Total financing disbursements 
        (gross).........................       1,250       1,521       1,200
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Payments from program account.         -98         -75         -83
88.00     Upward reestimate.............        -305        -629
88.00     Interest on upward reestimate.        -163        -433
88.25     Interest on uninvested funds..        -269        -350        -375
88.40     Repayments of principal, net..        -283        -235        -207
88.40     Collection of misc. 
            receivables.................         -59         -65         -85
88.40     Interest received on loans....         -12         -15         -20
88.40     Proceeds from loan sales......        -436
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -1,625      -1,802        -770
      Against gross financing authority only:

88.95   Change in receivables from 
          program accounts..............          49
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............         831         669         690
90.00 Financing disbursements...........        -375        -281         430
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4150-0-3-453      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
1131  Direct loan obligations exempt 
        from limitation.................         745         758         792
                                           ---------   ---------  ----------
1150    Total direct loan obligations...         745         758         792
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       3,644       2,935       3,359
1231  Disbursements: Direct loan 
        disbursements...................         686         700         750
      Repayments:

1251    Repayments and prepayments......        -283        -235        -200
1252    Proceeds from loan asset sales 
          to the public or discounted...        -436
1262  Adjustments: Discount on loan 
        asset sales to the public or 
        discounted......................        -153
      Write-offs for default:

1263    Direct loans....................         -47         -41         -42
1264    Other adjustments, net..........        -476
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       2,935       3,359       3,867
---------------------------------------------------------------------------

    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.

[[Page 1075]]

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   73-4150-0-3-453    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....       5,672          1,385
        Investments in US securities:
1106      Interest/Accounts Receivables.         512              4
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..       3,644          2,935
1405    Allowance for subsidy cost (-)..          35            733
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....       3,679          3,668
1504  Net value of assets related to 
        post-1991 acquired defaulted 
        guaranteed loans receivable: 
        Foreclosed property.............                         38
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       9,863          5,095
    LIABILITIES:
      Federal liabilities:

2103    Debt............................       9,742          5,081
2105    Other...........................          41
      Non-Federal liabilities:

2201    Accounts payable................          75              8
2207    Other...........................           5              6
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       9,863          5,095
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       9,863          5,095
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

                 Disaster Loan Fund Liquidating Account 

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4153-0-3-453      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
01.01 Interest expense to Treasury......           3           2           1
01.03 Other expenses....................                      12           5
                                           ---------   ---------  ----------
10.00   Total new obligations...........           3          14           6
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         115          72
22.00 New budget authority from 
        offsetting collections (gross)..          64          79          22
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           9
22.40 Capital transfer to general fund..        -113        -137         -16
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          75          14           6
23.95 Total new obligations.............          -3         -14          -6
24.40 Unobligated balance carried 
        forward, end of year............          72
    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................                      50
69.00 Offsetting collections (cash).....          64          29          22
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          64          79          22
    Change in obligated balances:
72.40 Obligated balance, start of year..          10          -8           1
73.10 Total new obligations.............           3          14           6
73.20 Total outlays (gross).............         -12          -5          -4
73.45 Recoveries of prior year 
        obligations.....................          -9
74.40 Obligated balance, end of year....          -8           1           3
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          12           5           4
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.40     Asset Sale Proceeds...........         -40
88.40     Loan repayments...............         -13         -11          -8
88.40     Other collection of Principal.                      -9          -7
88.40     Other collection of Principal.         -11          -9          -7
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -64         -29         -22
    Net budget authority and outlays:
89.00 Budget authority..................                      50
90.00 Outlays...........................         -52         -24         -18
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4153-0-3-453      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         100          44          31
      Repayments:

1251    Repayments and prepayments......         -13         -11          -8
1252    Proceeds from loan asset sales 
          to the public or discounted...         -40
1262  Adjustments: Discount on loan 
        asset sales to the public or 
        discounted......................          -3
1263  Write-offs for default: Direct 
        loans...........................                      -2          -1
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          44          31          22
---------------------------------------------------------------------------

    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.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   73-4153-0-3-453    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         124             64
        Investments in US securities:
1106      Receivables, net..............          12
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............         100             46
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................         -11
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................          89             46
1901  Other Federal assets: Other assets          16
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         241            110
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................           9              3
2105    Other...........................         104            106
      Non-Federal liabilities:

2201    Accounts payable................         127              1
2207    Other...........................           1
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         241            110
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         241            110
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4153-0-3-453      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.2  Other services....................                      12           5
43.0  Interest and dividends............           3           2           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........           3          14           6
---------------------------------------------------------------------------

                                

          Pollution Control Equipment Fund Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4147-0-3-376      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................                       3           3
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 42.0)...................                       3           3
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           3           3
22.00 New budget authority (gross)......           3           3           3

[[Page 1076]]

22.40 Capital transfer to general fund..          -3          -3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           3           3           3
23.95 Total new obligations.............                      -3          -3
24.40 Unobligated balance carried 
        forward, end of year............           3
    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................           3           3           3
    Change in obligated balances:
73.10 Total new obligations.............                       3           3
73.20 Total outlays (gross).............                      -3          -3
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                       3           3
    Net budget authority and outlays:
89.00 Budget authority..................           3           3           3
90.00 Outlays...........................                       3           3
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 73-4147-0-3-376      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........          12           8           5
2251  Repayments and prepayments........                      -2          -2
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....                      -1          -1
2264    Other adjustments, net..........          -4
                                           ---------   ---------  ----------
2290    Outstanding, end of year........           8           5           2
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..           8           5           2
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......          49          49          50
2331    Disbursements for guaranteed 
          loan claims...................                       1           1
                                           ---------   ---------  ----------
2390      Outstanding, end of year......          49          50          51
---------------------------------------------------------------------------

    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.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   73-4147-0-3-376    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................          27              3
1206  Non-Federal assets: Receivables, 
        net.............................           5
1701  Net value of assets related to 
        pre-1992 direct loans receivable 
        and acquired defaulted 
        guaranteed loans receivable: 
        Defaulted guaranteed loans, 
        gross...........................                         16
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          32             19
    LIABILITIES:
2104  Federal liabilities: Resources 
        payable to Treasury.............                         19
      Non-Federal liabilities:

2201    Accounts payable................           1
2207    Other...........................          31
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          32             19
    NET POSITION:
3300  Cumulative results of operations..
                                        ------------ --------------  ------------  -------------
3999    Total net position..............
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          32             19
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

         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. (Division B, 
H.R. 2673, Consolidated Appropriations Bill, FY 2004.)
    Note.--Section 167, Division H, HR 2673, Consolidated Appropriations 
Bill, FY 2004, appropriates additional amounts for the Small Business 
Administration for 2004. The language is presented with the government-
wide general provisions.

                                

                      General Fund Receipt Accounts

                           (in millions of dollars)

----------------------------------------------------------------------------
                                         2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
Offsetting receipts from the public:
  73-272130  Disaster loan program, 
    Downward reestimates of subsidies...          42           5
  73-272230  Business loan program, 
    Downward reestimates of subsidies...         258         226
                                           ---------   ---------  ----------
General Fund Offsetting receipts from 
 the public.............................         300         231
---------------------------------------------------------------------------
