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

                         THE BUDGET FOR FISCAL YEAR 2008

    [[Page 1013]]

                          SMALL BUSINESS ADMINISTRATION

        For 2008, the Budget requests $464 million in new budget authority
    for the Small Business Administration (SBA). This funding will support
    SBA's business credit, technical assistance, and disaster loan programs.

                                  Federal Funds

                              Salaries and Expenses

         For necessary expenses, not otherwise provided for, of the Small
    Business Administration as authorized by Public Law 108-447, 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, $310,103,000: Provided, That the Administrator is authorized
    to charge fees to cover the cost of publications developed by the Small
    Business Administration, and certain loan program activities, including
    fees authorized by section 5(b) of the Small Business Act: Provided
    further, That, notwithstanding 31 U.S.C. 3302, revenues received from
    all such activities shall be credited to this account, to remain
    available until expended, for carrying out these purposes without
    further appropriations: Provided further, That $87,120,000 shall be
    available to fund grants for performance in fiscal year 2008 or fiscal
    year 2009 as authorized.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-0100-0-1-376      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Executive Direction...............          47          52          55
    00.02 Capital Access....................          47          44          56
    00.03 Gov. Contracting/ Bus. Development          19          18          24
    00.04 Entrepreneurial Development.......           6           5           6
    00.05 Management & Adminstration........          20          18          20
    00.06 Office of Chief Information
            Officer.........................          29          27          29
    00.07 Regional & District Offices.......         106          90         122
    00.08 Agency Wide Costs.................          45          48          48
    00.09 Non Credit Programs...............         127         122         106
    00.10 Congressional Initiatives.........          90          20
    00.12 Disaster..........................         454         166         146
    09.00 Reimbursable program..............          13          10           6
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,003         620         618
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         349          78           3
    22.00 New budget authority (gross)......         722         545         618
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          11
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,082         623         621
    23.95 Total new obligations.............      -1,003        -620        -618
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          78           3           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         404         311         310
    40.35   Appropriation permanently
              reduced.......................          -8
    40.36   Unobligated balance permanently
              reduced.......................                      -6
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         396         305         310
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).         326         130         155
    58.00     Offsetting collections (cash).                     110         153
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......         326         240         308
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         722         545         618
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         303         361         399
    73.10 Total new obligations.............       1,003         620         618
    73.20 Total outlays (gross).............        -926        -582        -628
    73.40 Adjustments in expired accounts
            (net)...........................          -8
    73.45 Recoveries of prior year
            obligations.....................         -11
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         361         399         389
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         543         408         479
    86.93 Outlays from discretionary
            balances........................         383         174         149
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         926         582         628
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Payments from business loan
                program account.............        -124        -124        -135
    88.00     Payments from disaster loan
                program account.............        -182         -99        -155
    88.00     Federal sources...............         -12         -10          -7
    88.00     Business Loan Fees............
    88.40     Non-Federal sources...........          -4          -7         -11
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................        -322        -240        -308
          Against gross budget authority only:

    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          -4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         396         305         310
    90.00 Outlays...........................         604         342         320
    ---------------------------------------------------------------------------

        This account funds the administrative expenses of SBA headquarters
    and field office operations. Appropriations for the administration of
    the Disaster direct loan and business loan programs are merged with this
    account. In addition, this account funds grant programs.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-0100-0-1-376      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         158         166         179
    11.3      Other than full-time permanent          10          10          10
    11.5      Other personnel compensation..           4           4           4
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..         172         180         193
    12.1    Civilian personnel benefits.....          44          49          51
    21.0    Travel and transportation of
              persons.......................           5           3           5
    23.1    Rental payments to GSA..........          34          34          34
    23.3    Communications, utilities, and
              miscellaneous charges.........           8           6           8
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          58          35          63
    25.3    Other purchases of goods and
              services from Government
              accounts (Disaster
              Administrative Expenses)......         454         166         146
    26.0    Supplies and materials..........           3           2           3
    31.0    Equipment.......................           2           1           2
    41.0    Grants, subsidies, and
              contributions.................         209         133         106
                                               ---------   ---------  ----------
    99.0      Direct obligations............         990         610         612
    99.0  Reimbursable obligations..........          13          10           6
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,003         620         618
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 73-0100-0-1-376      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................       5,794       3,068       3,043
        Reimbursable:

    [[Page 1014]]

    2001  Civilian full-time equivalent
            employment......................           8           8           8
    ---------------------------------------------------------------------------

                           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,
    $15,000,000.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-0200-0-1-376      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Audit.............................           7           8           9
    00.02 Investigations....................           6           7           7
    00.03 Management Policy.................           1           1           1
    00.04 General Office/Legal Counsel......           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          15          17          18
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       6           4
    22.00 New budget authority (gross)......          21          15          16
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          21          21          20
    23.95 Total new obligations.............         -15         -17         -18
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           6           4           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          19          14          15
    58.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           2           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          21          15          16
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           2           2
    73.10 Total new obligations.............          15          17          18
    73.20 Total outlays (gross).............         -15         -17         -18
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           2           2           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          14          14          15
    86.93 Outlays from discretionary
            balances........................           1           3           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          15          17          18
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Payments from disaster
              loan program account..........          -2          -1          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          19          14          15
    90.00 Outlays...........................          13          16          17
    ---------------------------------------------------------------------------

        The Budget proposes $15 million in new budget authority and $0.5
    million transferred from the Disaster Loans Program account for a total
    of $15.5 million for the Office of Inspector General (OIG) for 2008.
    This appropriation provides funds for agency-wide audit, investigative,
    and related functions to promote economy and efficiency in SBA
    operations and to prevent and detect waste, fraud, and abuse.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-0200-0-1-376      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........           8           9          10
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..           9          10          11
    12.1    Civilian personnel benefits.....           2           2           2
    25.2    Other services..................           3           4           4
                                               ---------   ---------  ----------
    99.0      Direct obligations............          14          16          17
    99.0  Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          15          17          18
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 73-0200-0-1-376      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................          95         103         110
    ---------------------------------------------------------------------------

                      Surety Bond Guarantees Revolving Fund

         For additional capital for the Surety Bond Guarantees Revolving
    Fund, authorized by the Small Business Investment Act of 1958, as
    amended, $3,000,000, to remain available until expended.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4156-0-3-376      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    09.01 Reimbursable obligations..........          13           9          10
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 42.0)...................          13           9          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          24          22          23
    22.00 New budget authority (gross)......          11          10          11
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          35          32          34
    23.95 Total new obligations.............         -13          -9         -10
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          22          23          24
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           3           3           3
    58.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           8           7           8
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          11          10          11
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1                      -1
    73.10 Total new obligations.............          13           9          10
    73.20 Total outlays (gross).............         -14         -10         -11
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                      -1          -2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          11          10          11
    86.93 Outlays from discretionary
            balances........................           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          14          10          11
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -2
    88.40     Non-Federal sources...........          -6          -7          -8
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................          -8          -7          -8
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           3           3           3
    90.00 Outlays...........................           6           3           3
    ---------------------------------------------------------------------------

        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

    [[Page 1015]]

    up to 90 percent of the losses sustained if the contractor defaults.
    SBA's guarantees provide an incentive for sureties to issue bonds to
    small contractors who could not otherwise secure them and compete in the
    contracting industry.

        In 2008, the Budget proposes a $1.7 billion program level that is
    anticipated to be sufficient to accommodate program demand.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 73-4156-0-
    3-376

    2005 actual

    2006 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    25

    21

            Investments in US securities:
    1106

    Receivables, net

    4

    6

    1999

    Total assets

    29

    27

        LIABILITIES:
    2201

    Non-Federal liabilities: Accounts payable

    25

    24

    2999

    Total liabilities

    25

    24

        NET POSITION:
    3100

    Appropriated capital

    1

    3300

    Cumulative results of operations

    3

    3

    3999

    Total net position

    4

    3

    4999

    Total liabilities and net position

    29

    27

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

                          Business Loans Program Account

                         (including transfers of funds)

         Subject to section 502 of the Congressional Budget Act of 1974,
    during fiscal year 2008 commitments to guarantee loans under section 503
    of the Small Business Investment Act of 1958, shall not exceed
    $7,500,000,000: Provided, That during fiscal year 2008 commitments for
    general business loans authorized under section 7(a) of the Small
    Business Act, shall not exceed $17,500,000,000: Provided further, That
    during fiscal year 2008 commitments for direct loans authorized under
    section 7(m) of the Small Business Act shall not exceed $25,000,000;
    Provided further, That during fiscal year 2008 commitments to guarantee
    loans for debentures under section 303(b) of the Small Business
    Investment Act of 1958, shall not exceed $3,000,000,000: Provided
    further, That during fiscal year 2008 guarantees of trust certificates
    authorized by section 5(g) of the Small Business Act shall not exceed a
    principal amount of $12,000,000,000. In addition, for administrative
    expenses to carry out the direct and guaranteed loan programs,
    $135,414,000, which may be paid to the appropriations for Salaries and
    Expenses.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-1154-0-1-376      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loan subsidy...............           1           1
    00.05 Reestimate of direct loan.........          12           2
    00.06 Interest on direct loan
            reestimation....................          14           1
    00.07 Reestimate of loan guarantee
            subsidy.........................         329         340
    00.08 Interest on reestimates of loan
            guarantee subsidy...............          49          63
    00.09 Administrative expenses...........         125         124         135
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         530         531         135
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          14          11           7
    22.00 New budget authority (gross)......         525         527         135
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         541         538         142
    23.95 Total new obligations.............        -530        -531        -135
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          11           7           7
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         127         126         135
    40.35   Appropriation permanently
              reduced.......................          -6
    40.36   Unobligated balance permanently
              reduced.......................                      -5
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         121         121         135
          Mandatory:

    60.00   Appropriation...................         404         406
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         525         527         135
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          18          10          14
    73.10 Total new obligations.............         530         531         135
    73.20 Total outlays (gross).............        -534        -527        -135
    73.40 Adjustments in expired accounts
            (net)...........................          -2
    73.45 Recoveries of prior year
            obligations.....................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          10          14          14
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         121         121         135
    86.93 Outlays from discretionary
            balances........................           9
    86.97 Outlays from new mandatory
            authority.......................         404         406
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         534         527         135
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         525         527         135
    90.00 Outlays...........................         534         527         135
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 73-1154-0-1-376      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Micro loans.......................          20          10          25
                                               ---------   ---------  ----------
    115999Total direct loan levels..........          20          10          25
        Direct loan subsidy (in percent):
    132001Micro loans.......................        7.17       10.21        0.00
                                               ---------   ---------  ----------
    132999Weighted average subsidy rate.....        7.17       10.21        0.00
        Direct loan subsidy budget authority:
    133001Micro loans.......................           1           1
                                               ---------   ---------  ----------
    133999Total subsidy budget authority....           1           1
        Direct loan subsidy outlays:
    134001Micro loans.......................           1           1
                                               ---------   ---------  ----------
    134999Total subsidy outlays.............           1           1
        Direct loan upward reestimates:
    135001Micro loans.......................          26           3
                                               ---------   ---------  ----------
    135999Total upward reestimate budget
            authority.......................          26           3
        Direct loan downward reestimates:
    137001Micro loans.......................         -42         -15
                                               ---------   ---------  ----------
    137999Total downward reestimate budget
            authority.......................         -42         -15
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215002General business 7(a).............      13,758      17,500      17,500
    215004Section 504.......................       5,701       7,500       7,500
    215006SBIC debentures...................         477       3,000       3,000
    215010Secondary market guarantee........       3,633      12,000      12,000
                                               ---------   ---------  ----------
    215999Total loan guarantee levels.......      23,569      40,000      40,000
        Guaranteed loan subsidy (in percent):
    232002General business 7(a).............        0.00        0.00        0.00
    232004Section 504.......................        0.00        0.00        0.00
    232006SBIC debentures...................        0.00        0.00        0.00
    232010Secondary market guarantee........        0.00        0.00        0.00
                                               ---------   ---------  ----------
    232999Weighted average subsidy rate.....        0.00        0.00        0.00
        Guaranteed loan subsidy outlays:
    234011General business 7(a) Prior.......           4
                                               ---------   ---------  ----------
    234999Total subsidy outlays.............           4
        Guaranteed loan upward reestimates:
    235002General business 7(a).............          98          61
    235003General business--7(a) terrorist
            response........................                       1
    235006SBIC debentures...................          64           9
    235007SBIC participating securities.....         153         282
    235008New Market Venture Capital........           1
    235009General business 7(a) Delta.......           8           1

    [[Page 1016]]

    235010Secondary market guarantee........          53          49
    235012SBIC 301(d) Guarantee.............           1
                                               ---------   ---------  ----------
    235999Total upward reestimate budget
            authority.......................         378         403
        Guaranteed loan downward reestimates:
    237001Micro loan guarantees.............          -1
    237002General business 7(a).............        -156        -122
    237003General business--7(a) terrorist
            response........................          -7          -7
    237004Section 504.......................        -202        -166
    237005Section 504-Delta.................         -18
    237006SBIC debentures...................         -48        -121
    237007SBIC participating securities.....        -499        -318
    237009General business 7(a) Delta.......          -1
    237010Secondary market guarantee........          -4         -13
    237012SBIC 301(d) Guarantee.............         -10          -1
    237013502 Local development companies...          -4
                                               ---------   ---------  ----------
    237999Total downward reestimate subsidy
            budget authority................        -950        -748
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................         127         126         135
    3590  Outlays from new authority........         125         120         135
    ---------------------------------------------------------------------------

        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 2008, the Budget proposes $135.4 million in new budget authority
    for the Business Loans Program account. These funds will cover the
    administrative costs of SBA's business credit programs. In addition to
    loan making and servicing costs, SBA will undertake development of a new
    loan management accounting system which will enable SBA to better
    monitor and account for business loans. No appropriations are required
    to cover loan subsidy, as fees are sufficient to offset losses.

        The Section 7(a) program provides general business credit
    assistance. The requested guaranteed loan program level for 2008 is
    $17.5 billion. The Section 504 Certified Development Company program is
    for long-term fixed rate financing and the requested guaranteed loan
    program level is $7.5 billion in 2008. The Small Business Investment
    Company (SBIC) program provides credit to support venture capital
    investments. The Budget proposes a program level of $3 billion for SBIC
    Debentures.

        As part of the Secondary Market Guarantee (SMG) Program, SBA's
    fiscal agent pools the guaranteed portion of 7(a) loans and sells the
    securities to investors. This mechanism provides liquidity to lenders
    participating in the 7(a) loan program. For 2008, the Budget proposes a
    program level of $12 billion in such securities. Finally, the Budget
    proposes to build upon the success of the zero-subsidy 7(a) program by
    making the Microloan program self-financing through modest increases to
    the interest rates paid by program intermediaries.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-1154-0-1-376      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.2  Other services....................         125         124         135
    41.0  Grants, subsidies, and
            contributions...................         405         407
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         530         531         135
    ---------------------------------------------------------------------------

                     Business Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4148-0-3-376      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loans......................          20          10          25
    00.02 Interest on Treasury borrowing....           8           7           9
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal......................          28          17          34
    08.02 Payment of downward reestimate to
            a receipt account...............          28           6
    08.04 Payment of interest on downward
            reestimate to a receipt account.          14           9
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal......................          42          15
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          70          32          34
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          41          14
    22.00 New financing authority (gross)...          81          37          34
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
    22.60 Portion applied to repay debt.....         -41         -19
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          84          32          34
    23.95 Total new obligations.............         -70         -32         -34
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          14
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............          30           6
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).          52          31          34
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -1
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          51          31          34
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          81          37          34
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          23          25          20
    73.10 Total new obligations.............          70          32          34
    73.20 Total financing disbursements
            (gross).........................         -66         -37         -25
    73.45 Recoveries of prior year
            obligations.....................          -3
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          25          20          29
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................          66          37          25
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: Payments from
                program account.............          -1          -1
    88.00     Upward reestimate.............         -12          -2
    88.00     Interest on reestimate........         -14          -1
    88.25     Interest on uninvested funds..          -3          -3          -8
    88.40     Repayments of principal, net..         -22         -23         -25
    88.40     Other income..................                      -1          -1
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -52         -31         -34
          Against gross financing authority only:

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

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          30           6
    90.00 Financing disbursements...........          14           6          -9
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4148-0-3-376      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:

    [[Page 1017]]

    1111  Limitation on direct loans........          20          10          25
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          20          10          25
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         134         131         122
    1231  Disbursements: Direct loan
            disbursements...................          16          16          18
    1251  Repayments: Repayments and
            prepayments.....................         -18         -23         -25
    1263  Write-offs for default: Direct
            loans...........................          -1          -2          -2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         131         122         113
    ---------------------------------------------------------------------------

        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. The Budget proposes to build upon
    the success of the zero-subsidy 7(a) program by making the Microloan
    program self-financing through modest increases to the interest rates
    paid by program intermediaries.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 73-4148-0-
    3-376

    2005 actual

    2006 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    64

    39

            Investments in US securities:
    1106

    Receivables, net

    24

    3

    1206

    Non-Federal assets: Receivables, net

    1

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    134

    131

    1405

    Allowance for subsidy cost (-)

    -24

    -17

    1499

    Net present value of assets related to direct loans

    110

    114

    1999

    Total assets

    199

    156

        LIABILITIES:
          Federal liabilities:

    2103

    Debt

    154

    142

    2105

    Other

    43

    14

    2207

    Non-Federal liabilities: Other

    2

    2999

    Total liabilities

    199

    156

    4999

    Total liabilities and net position

    199

    156

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

                   Business Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4149-0-3-376      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Default claims....................       1,199       1,140       1,150
    00.02 Interest on Treasury borrowing....          76          70          80
    00.05 Other Expenses....................         203          15          15
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal......................       1,478       1,225       1,245
    08.02 Payment of downward reestimate to
            receipt account.................         719         608
    08.04 Payment of interest on downward
            reestimate to receipt account...         231         140
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal......................         950         748
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       2,428       1,973       1,245
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       2,514       2,589       3,164
    22.00 New financing authority (gross)...       2,687       2,798       1,925
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          12
    22.60 Portion applied to repay debt.....        -196        -250        -300
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       5,017       5,137       4,789
    23.95 Total new obligations.............      -2,428      -1,973      -1,245
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       2,589       3,164       3,544
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............         716         748         225
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).       1,978       2,050       1,700
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -7
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........       1,971       2,050       1,700
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       2,687       2,798       1,925
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          16          13         341
    73.10 Total new obligations.............       2,428       1,973       1,245
    73.20 Total financing disbursements
            (gross).........................      -2,426      -1,645      -1,350
    73.45 Recoveries of prior year
            obligations.....................         -12
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           7
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          13         341         236
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................       2,426       1,645       1,350
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.          -4
    88.00     Upward reestimate.............        -329        -340
    88.00     Interest on reestimate........         -49         -63
    88.25     Interest on uninvested funds..        -122        -122        -140
    88.40     Fees..........................        -682        -725        -750
    88.40     Recoveries....................        -792        -800        -810
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................      -1,978      -2,050      -1,700
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............           7
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         716         748         225
    90.00 Financing disbursements...........         448        -405        -350
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4149-0-3-376      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........      23,569      40,000      40,000
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................      23,569      40,000      40,000
    2199  Guaranteed amount of guaranteed
            loan commitments................      18,384      31,200      31,200
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      72,880      67,000      71,690
    2231  Disbursements of new guaranteed
            loans...........................      18,860      19,900      21,900
    2251  Repayments and prepayments........     -13,304     -14,070     -15,100
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....      -1,054      -1,140      -1,150
    2263    Terminations for default that
              result in claim payments......        -145
    2264    Other adjustments, net..........     -10,237
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      67,000      71,690      77,340
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      54,396      60,000      65,500
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......       4,204       3,868       4,003
    2331    Disbursements for guaranteed
              loan claims...................       1,054       1,140       1,150
    2351    Repayments of loans receivable..        -704        -730        -730
    2361    Write-offs of loans receivable..      -1,004        -275        -275
    2364    Other adjustments, net..........         318
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       3,868       4,003       4,148
    ---------------------------------------------------------------------------

    [[Page 1018]]

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

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 73-4149-0-
    3-376

    2005 actual

    2006 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    2,529

    2,602

            Investments in US securities:
    1106

    Receivables, net

    354

    413

    1206

    Non-Federal assets: Receivables, net

    50

    49

          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501

    Defaulted guaranteed loans receivable, gross

    4,204

    3,868

    1504

    Foreclosed property

    15

    6

    1505

    Allowance for subsidy cost (-)

    -3,154

    -3,124

    1599

    Net present value of assets related to defaulted guaranteed loans

    1,065

    750

    1999

    Total assets

    3,998

    3,814

        LIABILITIES:
          Federal liabilities:

    2103

    Debt

    956

    1,477

    2105

    Other

    889

    685

          Non-Federal liabilities:

    2201

    Accounts payable

    31

    22

    2204

    Liabilities for loan guarantees

    2,143

    1,630

    2207

    Other

    -21

    2999

    Total liabilities

    3,998

    3,814

    4999

    Total liabilities and net position

    3,998

    3,814

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

                     Business Loan Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4154-0-3-376      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Interest Expense to Treasury......           6           4           3
    00.05 Guaranteed loan default claims....           1           2           1
    00.09 Other expenses....................           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           8           7           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          78          56
    22.00 New budget authority (gross)......          77          58          41
    22.40 Capital transfer to general fund..         -78         -96         -27
    22.60 Portion applied to repay debt to
            FFB.............................         -13         -11          -9
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          64           7           5
    23.95 Total new obligations.............          -8          -7          -5
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          56
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................          30          20          10
    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          47          38          31
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          77          58          41
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          10          10           4
    73.10 Total new obligations.............           8           7           5
    73.20 Total outlays (gross).............          -8         -13          -9
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          10           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           8          13           9
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Loan repayments:
    88.40     Financing Investment programs-
                principal...................         -24         -20         -15
    88.40     Interest Income-Business &
                investment..................          -6          -4          -4
    88.40     Fees..........................                      -1          -1
    88.40     Collection on FFB loans.......         -13         -11          -9
    88.40     Other Income-both Business and
                Investment..................          -4          -2          -2
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -47         -38         -31
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          30          20          10
    90.00 Outlays...........................         -39         -25         -22
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4154-0-3-376      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           9          22          18
    1251  Repayments: Repayments and
            prepayments.....................          -5          -4          -3
          Write-offs for default:

    1263    Direct loans....................          -1
    1264    Other adjustments, net..........          19
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          22          18          15
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          40          27          16
    1251  Repayments: Repayments and
            prepayments.....................         -13         -11          -9
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          27          16           7
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4154-0-3-376      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         377         240         152
    2251  Repayments and prepayments........        -136         -87         -55
    2261  Adjustments: Terminations for
            default that result in loans
            receivable......................          -1          -1          -1
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         240         152          96
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         208         132          83
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......          55          79          58
    2331    Disbursements for guaranteed
              loan claims...................           1           1           1
    2351    Repayments of loans receivable..         -18         -16         -14
    2361    Write-offs of loans receivable..          -8          -6          -4
    2364    Other adjustments, net..........          49
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......          79          58          41
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, as amended,
    this account records all cash flows to and from the Government resulting
    from SBA direct loans obligated and loan guarantees committed prior to
    1992. This account is shown on a cash basis. All new activity in this
    program in 1992 and beyond (including modifications of direct loans or
    loan guarantees made in any year) is recorded in corresponding program
    and financing accounts.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 73-4154-0-
    3-376

    2005 actual

    2006 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    88

    66

    1206

    Non-Federal assets: Receivables, net

    2

    1

    1601

    Direct loans, gross

    104

    49

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -9

    1604

    Direct loans and interest receivable, net

    104

    40

    1699

    Value of assets related to direct loans

    104

    40

    [[Page 1019]]

    1701

    Defaulted guaranteed loans, gross

    79

    1703

    Allowance for estimated uncollectible loans and interest (-)

    -27

    1799

    Value of assets related to loan guarantees

    52

    1901

    Other Federal assets: Other assets

    35

    7

    1999

    Total assets

    229

    166

        LIABILITIES:
          Federal liabilities:

    2101

    Accounts payable

    6

    6

    2103

    Debt

    41

    27

    2104

    Resources payable to Treasury

    129

    2105

    Other Liabilities

    156

    1

          Non-Federal liabilities:

    2201

    Accounts payable

    4

    2

    2207

    Other Liabilities

    22

    1

    2999

    Total liabilities

    229

    166

    4999

    Total liabilities and net position

    229

    166

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4154-0-3-376      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    42.0  Insurance claims and indemnities..           2           2           2
    43.0  Interest and dividends............           6           5           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           8           7           5
    ---------------------------------------------------------------------------

                          Disaster Loans Program Account

                         (including transfers of funds)

         For administrative expenses to carry out the direct loan program
    authorized by section 7(b), of the Small Business Act, up to
    $156,000,000, to be derived by transfer from the ``Disaster Loan
    Program'' account, of which up to $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
    paid to appropriations for the Office of Inspector General; of which up
    to $146,500,000 is for direct administrative expenses of loan making and
    servicing to carry out the direct loan program, to remain available
    until expended, which may be paid to appropriations for Salaries and
    Expenses; and of which up to $9,000,000 is for indirect administrative
    expenses, which may be paid to appropriations for Salaries and Expenses:
    Provided, That of the unobligated balances under this heading, up to
    $200,000,000 may be paid to the Federal Emergency Management Agency,
    ``Disaster Relief'' account.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-1152-0-1-453      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loan subsidy...............       1,286         471         173
    00.05 Upward reestimate of direct loans.          70         267
    00.06 Interest on upward reestimates of
            direct loans....................          10          23
    00.09 Administrative expense............         187         101         156
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,553         862         329
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         386         633         514
    22.00 New budget authority (gross)......       1,775         290
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          25         457          17
    22.21 Unobligated balance transferred to
            other accounts..................                                -200
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,186       1,380         331
    23.95 Total new obligations.............      -1,553        -862        -329
    23.98 Unobligated balance expiring or
            withdrawn.......................                      -4
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         633         514           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................
    40.00   Appropriation (supplemental)....         983
    42.00   Transferred from other accounts.         712
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,695
          Mandatory:

    60.00   Appropriation...................          80         290
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,775         290
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          59         783         600
    73.10 Total new obligations.............       1,553         862         329
    73.20 Total outlays (gross).............        -804        -588        -273
    73.45 Recoveries of prior year
            obligations.....................         -25        -457         -17
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         783         600         639
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         338
    86.93 Outlays from discretionary
            balances........................         386         298         273
    86.97 Outlays from new mandatory
            authority.......................          80         290
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         804         588         273
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -5
          Against gross budget authority only:

    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,775         290
    90.00 Outlays...........................         799         588         273
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 73-1152-0-1-453      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Disaster loan.....................       8,785       2,659       1,064
                                               ---------   ---------  ----------
    115999Total direct loan levels..........       8,785       2,659       1,064
        Direct loan subsidy (in percent):
    132001Disaster loan.....................       14.64       17.73       16.27
                                               ---------   ---------  ----------
    132999Weighted average subsidy rate.....       14.64       17.73       16.27
        Direct loan subsidy budget authority:
    133001Disaster loan.....................       1,286         471         173
                                               ---------   ---------  ----------
    133999Total subsidy budget authority....       1,286         471         173
        Direct loan subsidy outlays:
    134001Disaster loan.....................         536         197          73
                                               ---------   ---------  ----------
    134999Total subsidy outlays.............         536         197          73
        Direct loan upward reestimates:
    135001Disaster loan.....................          80         290
                                               ---------   ---------  ----------
    135999Total upward reestimate budget
            authority.......................          80         290
        Direct loan downward reestimates:
    137001Disaster loan.....................         -14         -11
                                               ---------   ---------  ----------
    137999Total downward reestimate budget
            authority.......................         -14         -11
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................         187         101         156
    3580  Outlays from balances.............                     101         156
    3590  Outlays from new authority........         187
    ---------------------------------------------------------------------------

        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 provide Federal assistance for non-farm, private sector disaster
    losses. Through this program, SBA helps homeowners, renters, businesses
    of all sizes, and non-profit organizations pay for the cost of
    rebuilding and repairing

    [[Page 1020]]

    structures damaged by natural disasters. The program is the only form of
    SBA assistance not limited to small businesses. The program provides
    subsidized loans of up to 30 years to borrowers who have incurred
    uninsured physical losses or economic injury as the result of a natural
    disaster.

        In 2008, the Budget supports $1.06 billion in loans, the ten-year
    average for such loans, excluding outlying events. The subsidy rate is
    16.27 percent.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-1152-0-1-453      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.2  Other services....................         187         103         156
    41.0  Grants, subsidies, and
            contributions...................       1,366         759         173
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,553         862         329
    ---------------------------------------------------------------------------

                     Disaster Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4150-0-3-453      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loans......................       8,785       2,659       1,064
    00.02 Interest on Treasury borrowing....         449         492         198
    00.03 Other.............................           5
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal......................       9,239       3,151       1,262
    08.02 Payment of downward reestimate to
            a receipt account...............           9           9
    08.04 Payment of interest on downward
            reestimate to a receipt account.           5           2
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal......................          14          11
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       9,253       3,162       1,262
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       3,192       4,208         921
    22.00 New financing authority (gross)...      13,488       3,663       1,464
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         194
    22.60 Portion applied to repay debt.....      -3,413      -3,788        -291
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      13,461       4,083       2,094
    23.95 Total new obligations.............      -9,253      -3,162      -1,262
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       4,208         921         832
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............      11,344       2,175         891
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).       1,419       1,488         573
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         725
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........       2,144       1,488         573
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................      13,488       3,663       1,464
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         404       4,609       6,367
    73.10 Total new obligations.............       9,253       3,162       1,262
    73.20 Total financing disbursements
            (gross).........................      -4,129      -1,404        -993
    73.45 Recoveries of prior year
            obligations.....................        -194
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................        -725
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       4,609       6,367       6,636
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................       4,129       1,404         993
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.        -536        -197         -73
    88.00     Upward reestimate.............         -70        -267
    88.00     Interest on upward reestimate.         -10         -23
    88.25     Interest income from Treasury.        -254        -254        -150
    88.40     Repayments of principal, net..        -549        -747        -350
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................      -1,419      -1,488        -573
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............        -725
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............      11,344       2,175         891
    90.00 Financing disbursements...........       2,710         -84         420
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4150-0-3-453      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................       8,785       2,659       1,064
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       8,785       2,659       1,064
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       3,618       6,793       7,124
    1231  Disbursements: Direct loan
            disbursements...................       3,667       1,110         693
    1251  Repayments: Repayments and
            prepayments.....................        -415        -747        -350
    1261  Adjustments: Capitalized interest.          30
          Write-offs for default:

    1263    Direct loans....................        -107         -32         -60
    1264    Other adjustments, net..........
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       6,793       7,124       7,407
    ---------------------------------------------------------------------------

        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 disaster direct loans obligated in 1992 and
    beyond (including modifications of direct loans that resulted from
    obligations in any year). The amounts in this account are a means of
    financing and are not included in the budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 73-4150-0-
    3-453

    2005 actual

    2006 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    3,595

    1,985

            Investments in US securities:
    1106

    Interest/Accounts Receivables

    79

    312

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    3,618

    6,793

    1405

    Allowance for subsidy cost (-)

    -689

    -1,400

    1499

    Net present value of assets related to direct loans

    2,929

    5,393

    1999

    Total assets

    6,603

    7,690

        LIABILITIES:
          Federal liabilities:

    2103

    Debt

    6,585

    7,685

    2105

    Other

    18

    5

    2999

    Total liabilities

    6,603

    7,690

    4999

    Total liabilities and net position

    6,603

    7,690

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

                     Disaster Loan Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4153-0-3-453      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    01.01 Interest expense to Treasury......           2           3           1
    01.03 Other expenses....................                       2           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           2           5           2
    ----------------------------------------------------------------------------

    [[Page 1021]]

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          62          16
    22.00 New budget authority from
            offsetting collections (gross)..          18          17          11
    22.40 Capital transfer to general fund..         -62         -28          -9
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          18           5           2
    23.95 Total new obligations.............          -2          -5          -2
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          16
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................          10          10           5
    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           8           7           6
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          18          17          11
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           2           5
    73.10 Total new obligations.............           2           5           2
    73.20 Total outlays (gross).............          -2          -2          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           2           5           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           2           2           2
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.40     Loan repayments...............          -6          -5          -4
    88.40     Other collection..............          -2          -2          -2
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................          -8          -7          -6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          10          10           5
    90.00 Outlays...........................          -6          -5          -4
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4153-0-3-453      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          28          26          23
    1251  Repayments: Repayments and
            prepayments.....................          -5          -3          -3
          Write-offs for default:

    1263    Direct loans....................                      -1          -1
    1264    Other adjustments, net..........           3           1           1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          26          23          20
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, as amended,
    this account records all cash flows to and from the Government resulting
    from SBA disaster 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 made
    in any year) is recorded in corresponding program and financing
    accounts.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 73-4153-0-
    3-453

    2005 actual

    2006 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    64

    18

    1601

    Direct loans, net

    28

    26

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -3

    1699

    Value of assets related to direct loans

    28

    23

    1999

    Total assets

    92

    41

        LIABILITIES:
          Federal liabilities:

    2101

    Accounts payable

    2

    2

    2104

    Resources payable to Treasury

    39

    2105

    Other

    90

    2999

    Total liabilities

    92

    41

    4999

    Total liabilities and net position

    92

    41

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4153-0-3-453      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.2  Other services....................                       2           1
    43.0  Interest and dividends............           2           3           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           2           5           2
    ---------------------------------------------------------------------------

              Pollution Control Equipment Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 73-4147-0-3-376      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Disbursement for Guaranty Loan
            Claim...........................                       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
    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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........           4           3           2
    2251  Repayments and prepayments........          -1          -1          -2
    2261  Adjustments: Terminations for
            default that result in loans
            receivable......................
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........           3           2
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..           3
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......          20          10          13
    2331    Disbursements for guaranteed
              loan claims...................                       3           3
    2361    Write-offs of loans receivable..          -8
    2364    Other adjustments, net..........          -2
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......          10          13          16
    ---------------------------------------------------------------------------

        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 loan program, no new activity is anticipated for this
    program.

    [[Page 1022]]

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 73-4147-0-
    3-376

    2005 actual

    2006 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    3

    3

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -15

    -8

    1701

    Defaulted guaranteed loans, gross

    20

    10

    1999

    Total assets

    8

    5

        LIABILITIES:
    2104

    Federal liabilities: Resources payable to Treasury

    8

    5

    2999

    Total liabilities

    8

    5

    4999

    Total liabilities and net position

    8

    5

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

             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.

                         GENERAL FUND RECEIPT ACCOUNTS

                               (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    Offsetting receipts from the public:
      73-272130  Disaster loan program,
        Downward reestimates of subsidies...          14          11
      73-272230  Business loan program,
        Downward reestimates of subsidies...         992         763
                                               ---------   ---------  ----------
    General Fund Offsetting receipts from
     the public.............................       1,006         774
    ---------------------------------------------------------------------------