Full text of Budget of the United States Government - Appendix : Fiscal Year 1997 : Small Business Administration

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SMALL BUSINESS ADMINISTRATION
Federal Funds
General and special funds:
SALARIES

AND

EXPENSES

For necessary expenses of the Small Business Administration as
authorized by Public Law 103–403, including hire of passenger motor
vehicles (31 U.S.C. 1343 and 1344), and not to exceed $3,500 for
official reception and representation expenses, $235,401,000: Provided,
That the Administration is authorized to charge fees to cover the
cost of publications developed by the Small Business Administration,
and certain loan servicing activities: Provided further, That notwithstanding 31 U.S.C. 3302, revenues received from all such activities
shall be credited to this account, to be available for carrying out
these purposes without further appropriations.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Program and Financing (in millions of dollars)
Identification code 73–0100–0–1–376

1995 actual

1996 est.

1997 est.

Obligations by program activity:
Government Contracting and Minority Enterprise Development ..................................................................
33
18
23
00.02 Disaster assistance .......................................................
141
109
28
00.03 Economic development ..................................................
116
108
110
00.04 Management and administration ..................................
78
81
86
00.05 Executive direction .........................................................
2
1
1
00.06 General Counsel .............................................................
4
3
3
00.07 Congressional and legislative affairs ...........................
1
1
1
00.08 Hearings and appeals ...................................................
1 ................... ...................
00.09 Communications and Publications ................................
3
2
2
00.11 Advocacy ........................................................................
8
5
7
00.12 Field Operations .............................................................
1
1
4
00.13 Equal Employment Opportunity and Civil Rights Compliance .......................................................................
2
1
1
00.14 Regional and District Offices ........................................
142
113
113
00.15 Chief Financial Office ....................................................
8
9
7
00.16 Field Support .................................................................. ...................
24
25
00.01

10.00

Total obligations ........................................................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................
22.30 Unobligated balance expiring ........................................

540

476

411

21.40

23.90
23.95
24.40

33
33 ...................
544
443
411
–4 ................... ...................
573
–540

476
–476

411
–411

33 ................... ...................

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
40.75
Procurement reduction pursuant to P.L. 103–[317]

258
219
235
–16 ................... ...................

43.00

Appropriation (total) .............................................
Permanent:
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

242

Total new budget authority (gross) ..........................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.40 Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

68.00
70.00

219

235

303

224

175

544

443

411

135
540
–558

118
476
–482

112
411
–426

118

112

185

168

180

72.40

86.90

Outlays (gross), detail:
Outlays from new current authority ..............................

86.93
86.97

Outlays from current balances ......................................
Outlays from new permanent authority .........................

70
303

90
224

71
175

87.00

Total outlays (gross) .................................................

558

482

426

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
Federal sources:
88.00
Payments from business loan program account ............................................................
88.00
Payments for disaster loan program account
88.40
Non-Federal sources .............................................

–97
–201
–5

–93
–128
–3

–94
–78
–3

88.90

Total, offsetting collections (cash) ..................

–303

–224

–175

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

241
255

219
258

236
251

This appropriation funds salaries, other administrative expenses of the Small Business Administration (SBA), and business education and training programs. The SBA provides assistance to small businesses and to victims of natural disasters through these primary program areas:
Economic Development.—The Associate Deputy Administrator for this function exercises direction over the following
SBA program offices: Financial Assistance; Surety Bond Guarantees; Investment; International Trade; Women’s Business
Ownership; Small Business Development Centers; Veterans’
Affairs; Native-American Affairs; and Business Initiatives,
which includes the Service Corps of Retired Executives. These
offices are responsible for the administration of all SBA credit
and business education training programs. In 1997, SBA
plans to continue providing business management training
and tools for the small business community through U.S.
Export Assistance Centers, Empowerment Zone One-StopCapital Shops, and Business Information Centers. In addition,
through new programs such as LowDoc, FASTRAK, and the
Export Working Capital Programs (EWCP), SBA has begun
targeting financial assistance to segments of the population
that have historically been under represented in SBA’s credit
programs. The SBA’s efforts to reduce unnecessary paperwork
and make the agency more customer-friendly has attracted
new banks interested in establishing partnerships with SBA.
Government Contracting and Minority Enterprise Development.—The Associate Deputy Administrator for this function
exercises direction over the following SBA program offices:
Government Contracting; Minority Enterprise Development;
Technology; and Size Standards. These offices are responsible
for effectively advocating for small businesses in the area
of government contracting. Government Contracting activities
are aimed at ensuring that small businesses receive a fair
share of government contracts. The Minority Enterprise Development programs provide assistance to minority small
business concerns, primarily in the area of Federal procurement. Through this office, SBA assists in the establishment
or expansion of firms that are owned by minority or other
disadvantaged business persons and have the potential to
develop into viable competitive businesses in a reasonable
period of time. The Minority Enterprise Development office
also evaluates the overall agency performance in promoting
minority business development.
Disaster Assistance.—The Associate Administrator for the
Office of Disaster Assistance oversees the Disaster Loan Program which provides physical disaster loans to individuals
and businesses of any size, and economic injury loans to small
925

926

THE BUDGET FOR FISCAL YEAR 1997

Federal Funds—Continued

General and special funds—Continued
SALARIES

AND

EXPENSES—Continued

businesses unable to obtain credit elsewhere. In addition to
Presidentially-declared disasters, the program provides loans
when a declaration is made by the SBA Administrator. Program eligibility is based on financial criteria and interest
rates are set according to statutory formulas. In recent years,
the average interest rate on disaster loans has been about
four percent. The budget proposes to reduce the cost of disaster loan subsidies by increasing the interest rate on disaster
loans to the Treasury’s cost of borrowing.
Advocacy.—The Chief Counsel for Advocacy acts as a voice
for small business within the government. Activities include
the representation of small business interests, the analysis
of the effects of federal law and regulation on small business,
the development and utilization of a small business database
to aid in this analysis, and liaison with small business and
small business organizations and the public.
Business Education and Training.—This appropriation also
provides program funds for SBA activities involving business
education and training. These programs exist to help entrepreneurs start businesses, stay in business, and grow their
businesses. Through one of the widest outreach networks of
the Federal government, SBA provides management, technical, and research assistance along with education, training,
and information to perspective and existing small business
owner/operators.
Data substantiating the benefits produced by the agency’s
business education and training programs are becoming more
readily available. A number of assessments have shown that
counseling helps small businesses. Synopses of two such studies are presented below along with program accomplishments.

Program Performance:
Small Business Development Centers (SBDCs).—The SBDCs
provide long term counseling to small businesses at 976 locations in 50 states. In FY 1995, nearly 600,000 customers
were helped. Roughly 40 percent of customers are women
and 17 percent minorities. A 1992–1993 national study compared the performance improvements of long-term recipients
of counseling at 47 SBDCs to the performance of all businesses in the participating states. The SBDC assistance resulted in approximately $5 in tax revenues for every $1 spent
on the program. Tax revenues exceeded the direct cost of
the counseling provided to long-term customers by 15 to 1.
For FY 1997, as part of the Administration’s Reinventing
Government II initiative, the agency is proposing to incorporate a portion of the 7(j) Technical Assistance Program
and the Women’s Demonstration Project into this business
education and training program. For FY 1997, the budget
proposes a funding level of $72.3 million for the enhanced
SBDC program.
Service Corps of Retired Executives (SCORE).—Through
one-on-one counseling and workshops SCORE reaches about
350,000 business owners annually using approximately 13,000
counselors in 700 locations. Counseling costs to the Government are less than $3 per hour. For 1997, the budget proposes
a funding level of $3.3 million for this program.
Outreach Initiatives.—The SBA is actively involved in fostering the development of entrepreneurial skills and economic
development opportunities involving veterans, women and
businesses engaged in international trade. The budget proposes a 1997 funding level of $1.1 million to support veterans,
women, and international trade outreach initiatives.
One-Stop-Capital Shops (OSCS).—One-stop-capital shops
are located in urban and rural areas which have been designated as Empowerment Zones. The program and policy objectives of this program are to increase access to capital in
economically-distressed areas and to provide systematical

comprehensive business development assistance (i.e., technical, managerial, and financial assistance). Under this new
program, SBA will be establishing up to fifteen (15) OSCSs
during 1995–1996 in Empowerment Zones designated by HUD
and USDA. In addition to these sites, the SBA will be participating in the creation of several other OSCSs in similarly
distressed Enterprise Communities. For 1997, the budget proposes $2.7 million to support this initiative.
Business Information Centers (BIC).—In addition to the
self-help hardware, software and reference materials, BICs
deliver on-site counseling provided by SCORE volunteers. Individuals who are in business or are interested in starting
a business will find many resources specifically targeted at
helping businesses grow or find new market niches. For 1997,
the budget proposes $485 thousand for this program.
Native American Affairs.—This program supports the economic development needs of reservation communities. In FY
1995, over 400 loans were made to Native Americans under
the agency’s 7(a) program, amounting to nearly $60 million.
Native American firms also made up 7 percent of total contracted dollars of SBA’s section 8(a) portfolio in 1995.
Business Assistance Publications.—The SBA provides publications on a self-funding basis and distributes an estimated
300,000 items to the public each year.
Other Services.—The SBA co-sponsors a variety of special
activities with the for-profit, not-for-profit, and public sectors.
Many co-sponsored events cost customers between $35 and
$100, with comparable commercially-sponsored training costing $300 to $800. Among the most visible public/private cosponsorships undertaken is SBA Online, SBA’s electronic bulletin board for small businesses. The SBA Online system has
been principally underwritten by Sprint, which has paid the
cost of all toll-free connections to the system. Between October
1992 and January 1995, more than one million connections
to SBA Online were logged, and more than 120,000 individuals used the system on a regular basis.
Program Performance and Policy Goals.—SBA has the following program performance and policy goals: 1) provide
small businesses with user-friendly access to information,
technical and management counseling, and technical assistance and training; 2) design and deliver cost-effective programs that meet the needs of small businesses; 3) align business education programs more closely with financial assistance in a manner that maximizes benefits to customers who
obtain SBA guaranteed loans; and 4) expand the use of
SCORE volunteers to provide counseling and training on the
entire range of SBA programs and services.
Performance Indicators.—A true assessment of program effectiveness is a long-term process and there is much to learn
about what types of programs contribute to cost-effective business assistance. In the short term, SBA is committed to survey customer satisfaction levels from customers who use its
services. In the long run, the agency’s performance goal is
true economic development and the capacity to assess how
SBA business development assistance has contributed to the
economy. Performance measures that will be used in 1997
to assess progress in achieving the above goals follow.
Outputs

Intermediate Outcomes

Number of businesses counseled or
trained by SCORE volunteers.
Quality
public-private
cooperative
agreements.

Increased customer satisfaction with
services
Increased customer access to services,
increased focus of specialized programs, and increased leverage of
Federal spending
Increased use of services, lower delivery costs, better and more varied information supplied to small business
owners
Increased access by current and potential small business owners to SBA
programs and information

Increased information available on-line

More resource centers, including a BIC
in each SBA district, SBDC women’s
business subcenters, and new Tribal
BICs.

SMALL BUSINESS ADMINISTRATION
Programs targeted toward increasing
small businesses owned by veterans,
women, and Native Americans.

927

Federal Funds—Continued

Increased successful participation of
members of these groups in the
small business community

1997 Proposals.—For agency operating expenses, the budget
proposes to continue SBA’s efforts to increase administrative
efficiencies and enhance the delivery of its programs. Although the agency’s programs have grown substantially in
recent years, SBA’s administrative budget has been able to
decline gradually as efficiencies have been realized. Total employment at the agency, excluding disaster-funded positions,
which fluctuate with the incidence of natural disaster activity,
has been reduced by more than 13 percent since the end
of FY 1993.

1
9
–9

1
10
–10

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

8
1

8
2

87.00

Total outlays (gross) .................................................

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

9
9

9
10

10
10

Object Classification (in millions of dollars)

11.1
11.3
11.5

Personnel compensation:
Full-time permanent ..................................................
Other than full-time permanent ...............................
Other personnel compensation ..................................

151
7
9

138
6
2

133
6
8

11.9
12.1
21.0
23.1
23.3
24.0
25.2
26.0
31.0
41.0
92.0

Total personnel compensation ..............................
Civilian personnel benefits ............................................
Travel and transportation of persons ............................
Rental payments to GSA ................................................
Communications, utilities, and miscellaneous charges
Printing and reproduction ..............................................
Other services ................................................................
Supplies and materials .................................................
Equipment ......................................................................
Grants, subsidies, and contributions ............................
Undistributed (disaster assistance) ..............................

167
47
6
23
18
2
30
3
3
100
141

146
37
7
32
13
2
27
2
2
99
109

147
36
6
34
15
2
37
2
2
102
28

This appropriation provides funds for agency-wide audit,
investigative, and inspection/evaluative functions to identify
and recommend corrections of management or program deficiencies which may create conditions for fraud, waste, or
abuse. The audit function provides internal audit, external
audit, and inspection/evaluation oversight activities. Internal
audits assess the general management and efficiency of SBA
program operations; external audits review all program participants and their compliance with SBA regulations and procedural requirements; and inspection/evaluations address specific requirements of program management and effectiveness.
The investigative function detects and investigates allegations
of illegal and improper activities involving agency personnel,
programs, and operations.

99.9

Total obligations ........................................................

540

476

411

Object Classification (in millions of dollars)

1995 actual

Identification code 73–0100–0–1–376

1996 est.

1997 est.

Identification code 73–0100–0–1–376

1001
1005

Total compensable workyears:
Full-time equivalent employment ..................................
Full-time equivalent of overtime and holiday hours

1995 actual

5,562
320

1996 est.

1997 est.

4,178
300

4,122
290

11.1
12.1
92.0

Personnel compensation: Full-time permanent .............
Civilian personnel benefits ............................................
Undistributed .................................................................

99.9

Total obligations ........................................................

Identification code 73–0200–0–1–376

1001

INSPECTOR GENERAL

Total compensable workyears: Full-time equivalent
employment ...............................................................

For necessary expenses of the Office of the Inspector General in
carrying out the Inspector General Act of 1978, as amended (5 U.S.C.
App. 1–11, as amended by Public Law 100–504), $9,985.000.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Program and Financing (in millions of dollars)
Identification code 73–0200–0–1–376

1995 actual

1996 est.

1997 est.

Obligations by program activity:
00.01 Management and counsel .............................................
00.02 Audit ...............................................................................
00.03 Investigations .................................................................
00.04 Disaster ..........................................................................

2
2
4
1

2
3
4
1

10.00

Total obligations ........................................................

40.00

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Uninvested balance ...................................................
New budget authority (gross), detail:
Appropriation ..................................................................

Public enterprise funds:

3
9

2
9

1
10

12
–9

11
–10

1997 est.

6
1
3

1995 actual

106

1996 est.

1997 est.

106

109

SURETY BOND GUARANTEES REVOLVING FUND
For additional capital for the ‘‘Surety Bond Guarantees Revolving
Fund’’, authorized by the Small Business Investment Act, as amended,
$3,730,000, to remain available without fiscal year limitation as authorized by 15 U.S.C. 631 note.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Program and Financing (in millions of dollars)
Identification code 73–4156–0–3–376

1995 actual

1996 est.

1997 est.

Obligations by program activity:
Total obligations (object class 42.0) ............................

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ......................................................................
22.00 New budget authority (gross) ........................................

2
20

4
18

6
21

22
–18

22
–17

27
–18

10.00

21.40

1996 est.

6
1
2

Personnel Summary

Note.—The personnel summary includes regular (non-disaster) full-time equivalents (FTEs) of 3,267, 3,094, and
3,122 in 1995, 1996, and 1997, respectively.

OFFICE

1995 actual

Identification code 73–0200–0–1–376

Personnel Summary

21.90

23.90
23.95
24.90

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: Fund
balance ......................................................................

928

THE BUDGET FOR FISCAL YEAR 1997

Federal Funds—Continued

Public enterprise funds—Continued

Credit accounts:
BUSINESS LOAN PROGRAM ACCOUNT

SURETY BOND GUARANTEES REVOLVING FUND—Continued
Program and Financing (in millions of dollars)—Continued
1995 actual

Identification code 73–4156–0–3–376

1996 est.

1997 est.

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
Permanent:
68.00
Spending authority from offsetting collections: Offsetting collections (cash) .....................................

70.00

Total new budget authority (gross) ..........................

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Fund balance .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
74.90 Unpaid obligations, end of year: Obligated balance:
Fund balance .............................................................

39
18
–19

38
17
–20

35
18
–17

72.90

86.90
86.93
86.97
87.00

Outlays (gross), detail:
Outlays from new current authority ..............................
4
Outlays from current balances ...................................... ...................
Outlays from new permanent authority .........................
15

2 ...................
2 ...................
16
17

Total outlays (gross) .................................................

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources ..................................................................

–15

–16

–18

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

5
4

2
4

3
–1

89.00
90.00

For the cost of direct loans, $2,792,000, and for the cost of guaranteed loans. $318,580,000, as authorized by 15 U.S.C. 631 note, of
which $2,317,000, to be available until expended, shall be for the
Microloan Guarantee Program, and of which $21,733,000 for the
Small Business Investment Company Debentures Program and the
Small Business Investment Company Participating Securities Program, shall remain available until September 30, 1998: Provided,
That such costs including the costs of modifying such loans, shall
be as defined in section 502 of the Congressional Budget Act of 1974:
Provided further, That during fiscal year 1997, commitments to guarantee loans under section 503 of the Small Business Investment Act
of 1958, as amended, shall not exceed the amount of financings authorized under section 20(n)(2)(B) of the Small Business Act, as
amended.
In addition, for administrative expenses to carry out the direct and
guaranteed loan programs, $94,090,000, which may be transferred
to and merged with the appropriations for Salaries and Expenses.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Unavailable Collections (in millions of dollars)
Identification code 73–1154–0–1–376

04.00
07.99

Total: Balances and collections .................................... ...................
Total balance, end of year ............................................ ...................

Statement of Operations (in millions of dollars)
Identification code 73–4156–0–3–376

1994 actual

1995 actual

1996 est.

1997 est.

Revenue ...................................................
Expense ....................................................

14
–20

20
–18

18
–17

21
–18

0109

Net loss ...................................................

–6

00.01
00.02
00.03
00.04
00.07
00.08
00.09

16
16

10.00

1995 actual

1996 est.

1997 est.

Obligations by program activity:
Direct loan subsidy ........................................................
7
9
3
Guaranteed loan subsidy ...............................................
264
164
329
Section 503 prepayments ..............................................
30 ................... ...................
Grants ............................................................................
27 ................... ...................
Reestimate of loan guarantee subsidy ......................... ...................
245 ...................
Interest on reestimates of loan guarantee subsidy ...................
28 ...................
Administrative expenses ................................................
97
93
94
Total obligations ........................................................

425

539

426

26
436

37
527

24
415

462
–425

564
–539

439
–426

1996 est.

23.90
23.95
24.90

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: Fund
balance ......................................................................

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
40.05
Appropriation (indefinite) ..........................................

Balance Sheet (in millions of dollars)
1994 actual

1995 actual

1997 est.

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................
1206 Non-Federal assets: Receivables, net .....

40
2

39
2

43
2

1999

43.00

1101

Total assets ........................................
LIABILITIES:
2201 Non-Federal liabilities: Accounts payable

2999

314
–312

319
–315

322
–316

326
–317

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................
3300 Cumulative results of operations ............

1997 est.

21.90

0101
0102

Identification code 73–4156–0–3–376

1996 est.

Program and Financing (in millions of dollars)
Identification code 73–1154–0–1–376

Under this program, the Small Business Administration
guarantees a portion of the losses sustained by a surety company as a result of the issuance of a bid, payment, and/
or performance bond to a small business concern.
In 1997, the budget proposes a program level anticipated
to accommodate expected demand from the preferred surety
bond program authorized in P.L. 100–590. The SBA will continue to rely on both preferred and prior approval sureties
to deliver this program, with SBA oversight.

1995 actual

Balance, start of year:
01.99 Balance, start of year .................................................... ................... ...................
16
Receipts:
02.01 Business loan program downward reestimate of subsidy ............................................................................ ...................
16 ...................

3999

Total net position ................................

4999

Total liabilities and net position ............

60.05
68.00
70.00

405
253
415
1 ................... ...................

Appropriation (total) .............................................
406
253
415
Permanent:
Appropriation (indefinite) .......................................... ...................
274 ...................
Spending authority from offsetting collections: Offsetting collections (cash) .....................................
30 ................... ...................
Total new budget authority (gross) ..........................

436

527

415

147
425
–394

179
539
–565

153
426
–321

179

153

258

72.40

SMALL BUSINESS ADMINISTRATION

86.90
86.93
86.97
87.00

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................
Outlays from new permanent authority .........................
Total outlays (gross) .................................................

Offsets:
Against gross budget authority and outlays:
88.00
Offsetting collections (cash) from: Federal sources

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

929

Federal Funds—Continued

SMALL BUSINESS ADMINISTRATION’S SHARE OF DIRECT LOAN LEVELS
216
147
30
394

175
205
118
118
274 ...................
565

321

–30 ................... ...................

406
364

527
565

415
321

[In millions of dollars]

1995 actual

1996 est.

1997 est.

Handicapped loans ......................................................................
Section 504 loans .......................................................................
Specialized SBIC loans ................................................................
Micro loans ..................................................................................

4
0
6
13

0
0
0
60

0
2,650
0
34

Total direct loans ...........................................................

2,684

SMALL BUSINESS ADMINISTRATION’S SHARE OF GUARANTEED LOAN LEVELS
[In millions of dollars]

1995 actual

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 73–1154–0–1–376

1995 actual

1996 est.

1997 est.

Direct loan levels supportable by subsidy budget authority:
1150 Handicapped loans ........................................................
1150 Specialized SBIC loans ..................................................
1150 Micro loans ....................................................................

4 ................... ...................
6 ................... ...................
13
60
34

1159

Total direct loan levels .............................................
Direct loan subsidy (in percent):
1320 Handicapped loans ........................................................
1320 Specialized SBIC loans ..................................................
1320 Micro loans ....................................................................

41.82
43.10
19.61

0.00
42.85
15.69

0.00
0.00
8.20

1329

29.55

15.69

0.00

Weighted average subsidy rate .................................
Direct loan subsidy budget authority:
1330 Handicapped loans ........................................................
1330 Specialized SBIC loans ..................................................
1330 Micro loans ....................................................................

1339

2 ................... ...................
2 ................... ...................
3
9
3

Total subsidy budget authority .................................
Direct loan subsidy outlays:
1340 Handicapped loans ........................................................
1340 Specialized SBIC loans ..................................................
1340 Micro loans ....................................................................

1349

Total subsidy outlays ................................................

3
1 ...................
3 ................... ...................
2
8
4
9

Guaranteed loan levels supportable by subsidy budget
authority:
2150 General business—7(a) (incl. DELTA) ..........................
7,791
11,046
11,210
2150 Section 502 development company loans .....................
43 ................... ...................
2150 Section 504 (including DELTA) ......................................
1,528
2,825 ...................
2150 SBIC debenture guarantees ...........................................
104
106
82
2150 SBIC participating security guarantees ........................
220
268
149
2150 Specialized SBIC guarantees .........................................
23
2 ...................
2150 Micro loan guarantees ................................................... ...................
8
27
2159

Total loan guarantee levels ......................................
Guaranteed loan subsidy (in percent):
2320 General Business—7(a) ................................................
2320 Section 502 development company loans .....................
2320 Section 504 (including DELTA) ......................................
2320 SBIC debenture guarantees ...........................................
2320 SBIC participating security guarantees ........................
2320 Specialized SBIC guarantees .........................................
2320 Micro loan guarantees ...................................................

9,709

14,255

11,468

2.74
1.06
2.68
1.50 ................... ...................
0.57
0.00
6.85
14.65
15.46
10.01
8.90
9.00
9.07
27.85
28.93 ...................
11.77
11.95
8.43

2329

Weighted average subsidy rate .................................
2.74
1.06
2.68
Guaranteed loan subsidy budget authority:
2330 General business—7(a) ................................................
213
120
295
2330 Section 502 development company loans .....................
1 ................... ...................
2330 Section 504 (including DELTA) ......................................
9
1
2
2330 SBIC debenture guarantees ...........................................
15
16
8
2330 SBIC participating securities guarantees .....................
20
24
14
2330 Specialized SBIC guarantees .........................................
6
1 ...................
2330 Micro loan guarantees ................................................... ...................
1
2
Total subsidy budget authority .................................
264
163
321
Guaranteed loan subsidy outlays:
2340 General business—7(a) (incl. DELTA) ..........................
169
143
148
2340 Section 502 development company loans .....................
1 ................... ...................
2340 Section 504 (including DELTA) ......................................
6
6
2
2340 SBIC debenture guarantees ...........................................
15
16
8
2340 SBIC participating securities guarantees .....................
33
24
13
2340 Specialized SBIC guarantees .........................................
6
1 ...................
2340 Micro loan guarantees ................................................... ...................
1
2

1996 est.

1997 est.

General business loans ...............................................................
Development company loans (Section 502) ................................
Development company loans (Section 504) ................................
SBIC debenture guarantees ........................................................
SBIC participating security guarantees ......................................
Specialized SBIC loans ................................................................
Micro loan guarantees ................................................................

6,132
43
1,528
104
220
23
0

8,395
0
2,825
106
268
2
8

8,520
0
0
225
400
0
27

Total guaranteed loans ..................................................

8,050

11,604

9,172

As required by the Federal Credit Reform Act of 1990,
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.
General Business Assistance.—The Small Business Administration guarantees loans under its section 7(a) General Business Loan program to small businesses that are unable to
obtain private financing. These loans must be of such value
or so secured as to reasonably assure repayment. No loan
may be made unless the financial assistance is not otherwise
available on reasonable terms. Under the guarantee plan,
the SBA agrees to purchase the guaranteed portion of the
loan only upon default.
Investment Company Assistance.—A primary function of
small business investment companies is to provide a source
of equity capital or long-term loans to new or expanding small
businesses. The Small Business Investment Act, as amended,
authorizes the SBA to guarantee the timely payment of all
principal and interest, as scheduled, on debentures issued
by such companies. In addition, since 1994, the SBA has
guaranteed the performance of participating securities issued
by these companies.
Development Company Assistance.—Under the Small Business Investment Act, the SBA makes loans through State
and local development companies to small businesses.
Through these programs, the SBA promotes economic development and job creation and maintenance by stimulating the
flow of long-term financing to small business concerns for
projects that involve fixed assets. These projects are designed
to create or retain a meaningful number of jobs in the communities affected, with a special emphasis on distressed areas.
Approximately 154,000 jobs were created or maintained
through the $1.5 billion in loans guaranteed under the Development Company programs in 1995.

2339

2349

Total subsidy outlays ................................................

230

191

173

Program Performance:
Program performance and policy goals.—SBA has the following program performance and policy goals: 1) effectively
intervene in the economy to correct capital market imperfections; 2) encourage small business lending and surety bonding
that results in higher employment and GDP growth; 3) promote capital access for traditionally under-served small business markets and geographic regions, e.g., women, minorities,

930

THE BUDGET FOR FISCAL YEAR 1997

Federal Funds—Continued

Credit accounts—Continued

BUSINESS LOAN PROGRAM ACCOUNT

BUSINESS LOAN PROGRAM ACCOUNT—Continued

(Legislative Proposal, not subject to PAYGO)

small exporters, inner-cities and rural areas; and 4) maintain
a high quality portfolio.
Performance Indicators.—During the past two years SBA
has focused on quantitative, measureable lending goals for
underserved segments of the small business market in each
district, e.g., minorities, women, and small exporters. The
SBA began this process in 1994 when it established internal
performance agreements that contained two-year lending
goals. Using goal monitoring, the agency is able to track on
a regular basis the status of each district office’s progress
in meeting these goals. Appropriate finance program effectiveness assessment involves the consideration of a number of
indicators. First, effectiveness can be assessed by loan-making
activity levels—the number and dollar amount of loans guaranteed by SBA. Second, effectiveness can be measured by
the health of the loan portfolio—its currency and default figures, and the agency’s ultimate record on loan recovery. Beyond these very tangible indicators of success are the more
difficult-to-measure indicators. These include such things as
the economic benefits that accrue to the small business, its
employees, and the community in which it is located.
The number and dollar volume of loans made under the
section 7(a) loan program has increased dramatically in recent
years. In 1991, SBA made or guaranteed approximately 9,000
loans totaling about $4 billion. By 1995, those figures had
risen to approximately 56,000 loans totaling about $8 billion,
and these figures could have been even higher if additional
lending authority had been available. The section 504 program has also shown impressive growth. In 1991, the SBA
provided about 1,400 financings totaling nearly $400 million.
By 1995, those figures had increased to about 4,500 financings
for $1.5 billion. Performance measures to be used in 1997
to assess progress in achieving the above goals follow.

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

Outputs

Loans guaranteed—number and dollar
amount.
Private investment leveraged—dollar
amount.
Better credit instruments developed—
number.
Focused lending for underserved markets—number, dollar amount.
Investments in underserved areas—
number.
Businesses created, maintained; jobs
created.
Increased number of EWCP loans .......
Electronic data interchange and monitoring.

Intermediate Outcomes

Lower cost loan programs
Fair and reasonable fees to offset subsidy
High currency rates
Businesses created, maintained, or expanded
Increased sources of capital
Increased capital access for underserved areas
Increased small business export sales
High quality and efficient lending
practices

Object Classification (in millions of dollars)
Identification code 73–1154–0–1–376

41.0
99.0

99.9

Direct obligations: Grants, subsidies, and contributions ...........................................................................
Reimbursable obligations: Subtotal, reimbursable obligations .......................................................................
Total obligations ........................................................

1995 actual

1996 est.

1997 est.

328

446

332

425

539

426

Identification code 73–1154–2–1–376

1995 actual

1996 est.

1997 est.

Direct loan levels supportable by subsidy budget authority:
1150 504 direct ...................................................................... ................... ...................

2,650

1159

Total direct loan levels ............................................. ................... ...................

2,650

Guaranteed loan levels supportable by subsidy budget
authority:
2150 SBIC Participating Securities ........................................ ................... ...................
2150 SBIC Debentures ............................................................ ................... ...................

251
143

2159

394

Total loan guarantee levels ...................................... ................... ...................
Guaranteed loan subsidy (in percent):
2320 SBIC Participating Securities ........................................ ................... ...................
2320 SBIC Debentures ............................................................ ................... ...................
2329

Weighted average subsidy rate ................................. ................... ...................

–5.69
–6.45
0.00

Subsidy Rate Changes.—Over the past year, pursuant to
Title V of the 1974 Budget Act, SBA and OMB have conducted a detailed analysis of the loan performance of SBA’s
7(a) and 504 credit programs during the period from 1983
through 1995. The results of this analysis have led to a revision of the FY 1997 subsidy rates for each of these programs.
For the 504 program, the data analysis indicates that previous estimates of recoveries were substantially higher than
SBA’s actual recoveries and that previous estimates of defaults were lower than the historical default rate. Consequently, the baseline (current services) subsidy rate for the
504 program was increased from zero to 6.85 percent. For
the 7(a) program, the data indicate that actual recoveries
and defaults, as well as the timing of such events, differ
from previous estimates. Therefore, the baseline (current services) subsidy rate for the 7(a) program has been increased
from 1.06 percent to 2.68 percent.
It should be noted, however, that recent trends appear to
demonstrate a gradual improvement in the 7(a) portfolio quality. Loans made over the past several years have shown a
lower incidence of defaults. This performance improvement
and recent legislative changes have been incorporated into
the new 7(a) subsidy rate. If these positive trends continue,
the 7(a) subsidy rate will begin to decline next year with
subsequent reductions to follow for as long as the portfolio
quality improves. The SBA and OMB intend to closely monitor these trends and will revise the 7(a) subsidy rate annually as appropriate.
Section 504 Reforms.—In order to keep the 504 subsidy
rate at zero in FY 1997, the budget proposes to transform
the section 504 program’s funding mechanism into a direct
loan program. Under this proposal, SBA would lend directly
to certified development companies, rather than guaranteeing
their debentures. This change would eliminate the cost of
underwriters and other financial intermediaries. Importantly,
these changes would not increase the cost of capital to the
Certified Development Companies and would not increase the
cost of borrowing to small businesses. This revision would
lower the 504 subsidy rate from 6.85 percent to zero.
SBIC Reforms.—The budget proposes to increase fees for
both participating securities and debentures. The establishment of an annual interest pass-through fee of one percent
on the outstanding loan balance and an increase in the upfront funding fee from two percent to three percent for both
programs would reduce subsidy costs as follows: from 10.01
percent to 3.65 percent for the debenture program; and from
9.07 percent to 3.38 percent for the participating security
program.

SMALL BUSINESS ADMINISTRATION
BUSINESS DIRECT LOAN FINANCING ACCOUNT
Program and Financing (in millions of dollars)
Identification code 73–4148–0–3–376

00.01
00.02

Obligations by program activity:
Direct loans ....................................................................
Interest on Treasury borrowing ......................................

1995 actual

1996 est.

1997 est.

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)

23
7

60
5

34
7

Identification code 73–4148–0–3–376

ASSETS:
Investments in US securities:
1106
Federal assets: Receivables, net ........
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1405
Allowance for subsidy cost (–) ...........

10.00

Total obligations ........................................................

22.00
23.95

Budgetary resources available for obligation:
New financing authority (gross) ....................................
New obligations .............................................................

30
–30

65
–65

41
–41

1499

24
–3
–20

27
1
–20

26
–3
–10

1999

Spending authority from offsetting collections
(total) ................................................................

Total new financing authority (gross) ......................

New financing authority (gross), detail:
Authority to borrow (indefinite) .....................................
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.10
Change in receivables from program account .........
68.47
Portion applied to debt reduction .............................
67.15

68.90
70.00

Change in unpaid obligations:
Unpaid obligations, start of year:
72.90
Obligated balance: Fund balance .............................
72.95
Receivables from program account ..........................

35
6

33
3

27
4

41
30
–35

36
65
–69

31
41
–55

74.90
74.95

Total unpaid obligations, start of year ................
New obligations .............................................................
Total financing disbursements (gross) .........................
Unpaid obligations, end of year:
Obligated balance: Fund balance .............................
Receivables from program account ..........................

33
3

27
4

15
1

74.99

Total unpaid obligations, end of year ..................

72.99
73.10
73.20

931

Federal Funds—Continued

Net present value of assets related
to direct loans ...........................

1994 actual

1995 actual

1996 est.

1997 est.

139
–9

126
–8

137
–9

145
–10

130

118

128

135

Total assets ........................................
LIABILITIES:
2104 Federal liabilities: Resources payable to
Treasury ...............................................

136

121

132

137

130

118

128

136

2999

130

118

128

136

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................

3999

Total net position ................................

4999

Total liabilities and net position ............

136

121

132

137

BUSINESS DIRECT LOAN FINANCING ACCOUNT
(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
Identification code 73–4148–2–3–376

Outlays (gross), detail:
87.00 Total financing disbursements (gross) .........................

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Federal sources: Payments from program account .................................................................
Non-Federal sources:
88.40
Repayments of principal, net ...........................
88.40
Interest received on loans ................................

–7

–9

–3

–7
–10

–6
–12

–11
–12

88.90
88.95

–24
3

–27
–1

–26
3

Total, offsetting collections (cash) ..................
Change in receivables from program accounts ............

Net financing authority and financing disbursements:
89.00 Financing authority ........................................................
90.00 Financing disbursements ...............................................

9
11

37
42

18
29

Status of Direct Loans (in millions of dollars)
Identification code 73–4148–0–3–376

1995 actual

1996 est.

1997 est.

00.01
00.02

Obligations by program activity:
Direct loans .................................................................... ................... ...................
Interest on Treasury borrowing ...................................... ................... ...................

2,650
33

10.00

Total obligations ........................................................ ................... ...................

2,683

22.00
23.95

Budgetary resources available for obligation:
New financing authority (gross) .................................... ................... ...................
New obligations ............................................................. ................... ...................

2,683
–2,683

67.15
68.00

New financing authority (gross), detail:
Authority to borrow (indefinite) ..................................... ................... ...................
Spending authority from offsetting collections: Offsetting collections (cash) .............................................. ................... ...................

70.00

Total new financing authority (gross) ...................... ................... ...................

73.10
73.20
74.90

Change in unpaid obligations:
New obligations ............................................................. ................... ...................
Total financing disbursements (gross) ......................... ................... ...................
Unpaid obligations, end of year: Obligated balance:
Fund balance ............................................................. ................... ...................

1997 est.

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans ............................................. ................... ................... ...................
1131 Direct loan obligations exempt from limitation ............
23
60
34

1995 actual

87.00

2,574
109
2,683

2,683
–1,490
1,193

Outlays (gross), detail:
Total financing disbursements (gross) ......................... ................... ...................

1,490

–75
–22
–12

1150

Total direct loan obligations .....................................

1210
1231
1251
1264

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
Disbursements: Direct loan disbursements ...................
Repayments: Repayments and prepayments .................
Write-offs for default: Other adjustments, net .............

116
33
–15
–8

126
41
–18
–12

137
42
–22
–12

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Non-Federal sources:
88.40
Repayments of principal, net ........................... ................... ...................
88.40
Interest received on loans ................................ ................... ...................
88.40
Fees .................................................................. ................... ...................

1290

Outstanding, end of year ..........................................

126

137

145

88.90

Total, offsetting collections (cash) .................. ................... ...................

–109

As required by the Federal Credit Reform Act of 1990,
this non-budgetary account records all cash flows to and from
the Government resulting from direct loans obligated in 1992

89.00
90.00

Net financing authority and financing disbursements:
Financing authority ........................................................ ................... ...................
Financing disbursements ............................................... ................... ...................

2,574
1,381

932

THE BUDGET FOR FISCAL YEAR 1997

Federal Funds—Continued

90.00

Credit accounts—Continued

Financing disbursements ...............................................

–171

–400

–255

BUSINESS DIRECT LOAN FINANCING ACCOUNT—Continued
Status of Guaranteed Loans (in millions of dollars)

Status of Direct Loans (in millions of dollars)
1995 actual

Identification code 73–4148–2–3–376

1996 est.

Total direct loan obligations ..................................... ................... ...................

Outstanding, end of year .......................................... ................... ...................

1996 est.

1997 est.

Position with respect to appropriations act limitation
on commitments:
2111 Limitation on guaranteed loans made by private lenders .............................................................................. ................... ................... ...................
2131 Guaranteed loan commitments exempt from limitation
9,709
13,921
11,259

2,650

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year ............................................. ................... ................... ...................
1231 Disbursements: Direct loan disbursements ................... ................... ...................
1,325
1251 Repayments: Repayments and prepayments ................. ................... ...................
–66
1290

1995 actual

Identification code 73–4149–0–3–376

1997 est.

1,259

2150

Total guaranteed loan commitments ........................

2210
2231
2251
2261

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Disbursements of new guaranteed loans ......................
Repayments and prepayments ......................................
Adjustments: Terminations for default that result in
loans receivable ........................................................

9,709

13,921

11,259

13,007
8,402
–2,423

18,618
10,413
–3,354

25,225
11,470
–4,359

–368

–452

–688

2290

Outstanding, end of year ..........................................

18,618

25,225

31,648

2299

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

14,709

19,677

24,369

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................
2331
Disbursements for guaranteed loan claims .............
2351
Repayments of loans receivable ...............................
2361
Write-offs of loans receivable ...................................

232
368
–33
–40

527
452
–59
–84

836
688
–101
–184

527

836

1,239

BUSINESS GUARANTEED LOAN FINANCING ACCOUNT
Program and Financing (in millions of dollars)
Identification code 73–4149–0–3–376

00.01
00.02
10.00

1995 actual

Obligations by program activity:
Default claims ...............................................................
368
Payment of downward reestimate to receipt account ...................

1996 est.

1997 est.

452
691
16 ...................

Total obligations ........................................................

368

468

691

Budgetary resources available for obligation:
Unobligated balance available, start of year: Fund
balance ......................................................................
22.00 New financing authority (gross) ....................................

1,087
539

1,258
868

1,658
947

2390

1,626
–368

2,126
–468

2,605
–691

1,258

1,658

1,913

547
–8

859
9

882
64

As required by the Federal Credit Reform Act of 1990,
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.

Spending authority from offsetting collections
(total) ................................................................

539

868

946

Balance Sheet (in millions of dollars)

Total new financing authority (gross) ......................

539

868

947

21.90

23.90
23.95
24.90

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year: Fund
balance ......................................................................

New financing authority (gross), detail:
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.10
Change in receivables from program account .........
68.90
70.00

Change in unpaid obligations:
Unpaid obligations, start of year: Receivables from
program account .......................................................
73.10 New obligations .............................................................
73.20 Total financing disbursements (gross) .........................
74.95 Unpaid obligations, end of year: Receivables from
program account .......................................................
72.95

63
368
–376

55
468
–459

64
691
–627

128

86.97

Outlays (gross), detail:
Outlays from new permanent authority .........................

505

571 ...................

87.00

Total financing disbursements (gross) .....................

376

459

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Federal sources:
88.00
Federal sources: Payments from program account ............................................................
–264
88.00
Payment from program account—Reestimates ...................
88.25
Interest on uninvested funds ...............................
–65
Non-Federal sources:
88.40
Fees ..................................................................
–127
88.40
Recoveries .........................................................
–91
88.90
88.95

89.00

Total, offsetting collections (cash) ..................
Change in receivables from program accounts ............

–547
8

627

1994 actual

1995 actual

1,087

1,258

1,658

1,913

128

379
24
–161

527
23
–331

836
28
–476

1,239
43
–525

242

219

388

757

1999

Total assets ........................................
LIABILITIES:
2204 Non-Federal liabilities: Liabilities for
loan guarantees ..................................

1,392

1,532

2,110

2,798

1,329

1,451

2,034

2,703

2999

1,329

1,451

2,034

2,703

Identification code 73–4149–0–3–376

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................
Net value of assets related to post–
1991 acquired defaulted guaranteed loans receivable:
1501
Defaulted guaranteed loans receivable, gross ......................................
1502
Interest receivable ..............................
1505
Allowance for subsidy cost (–) ...........
1599

–164
–329
–274 ...................
–45
–55
–225
–151

–282
–216

–859
–9

–882
–64

Net financing authority and financing disbursements:
Financing authority ........................................................ ................... ...................

Outstanding, end of year ......................................

Net present value of assets related
to defaulted guaranteed loans

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................

1996 est.

1997 est.

3999

Total net position ................................

4999

Total liabilities and net position ............

1,392

1,532

2,110

2,798

SMALL BUSINESS ADMINISTRATION
BUSINESS GUARANTEED LOAN FINANCING ACCOUNT
(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
1995 actual

Identification code 73–4149–2–3–376

10.00

933

Federal Funds—Continued

1996 est.

1997 est.

Obligations by program activity:
Total obligations ............................................................ ................... ................... ...................

00.91
01.01

Total capital expenses ..............................................
Operating expenses: Interest expense to Treasury ........

402
99

299
89

226
76

10.00

Total obligations ........................................................

501

388

302

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Fund balance:
21.90
Committed .............................................................
21.90
Uncommitted .........................................................

2
528

1
553

2
623

21.99
22.00
22.60

Total unobligated balance, start of year .............
New budget authority (gross) ........................................
Redemption of debt .......................................................

530
744
–219

554
469
–10

625
430
–23

23.90
23.95

1,055
–501

1,013
–388

1,032
–302

24.90
24.90

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Fund balance:
Committed .............................................................
Uncommitted .........................................................

1
553

2 ...................
623
730

Change in unpaid obligations:
New obligations ............................................................. ................... ................... ...................

24.99

Total unobligated balance, end of year ....................

554

625

730

Outlays (gross), detail:
87.00 Total financing disbursements (gross) ......................... ................... ................... ...................

68.00

New budget authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

744

469

430

Offsets:
Against gross financing authority and financing disbursements:
88.40
Offsetting collections (cash) from: Fees ................... ................... ...................

–18
501
–370

113
388
–386

115
302
–302

113

115

22.00
23.95
24.90

Budgetary resources available for obligation:
New financing authority (gross) .................................... ................... ...................
11
New obligations ............................................................. ................... ................... ...................
Unobligated balance available, end of year: Fund
balance ...................................................................... ................... ...................
11

68.00

New financing authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) ..................................... ................... ...................

73.10

89.00
90.00

72.90

–11

Net financing authority and financing disbursements:
Financing authority ........................................................ ................... ................... ...................
Financing disbursements ............................................... ................... ...................
–11

86.97

Outlays (gross), detail:
Outlays from new permanent authority .........................

370

386

302

87.00

Total outlays (gross) .................................................

370

386

302

Status of Guaranteed Loans (in millions of dollars)
1995 actual

Identification code 73–4149–2–3–376

1996 est.

1997 est.

2210
2231
2251
2261

Total guaranteed loan commitments ........................ ................... ...................
Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Disbursements of new guaranteed loans ......................
Repayments and prepayments ......................................
Adjustments: Terminations for default that result in
loans receivable ........................................................

................... ................... ...................
................... ...................
394
................... ...................
–28

Outstanding, end of year .......................................... ................... ...................

2299

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

2390

–183
–22
–51
–167

–170
–160
–21
–20
–3 ...................
–6
–12

–115
–32
–144

–136
–13
–120

–125
–13
–100

88.90

–744

–469

–430

–30 ................... ...................

................... ................... ...................

2290

394

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Federal sources .....................................................
Non-Federal sources:
Loan repayments:
88.40
Financing programs .....................................
88.40
Investment programs ...................................
88.40
SBIC obligations ..........................................
88.40
Section 503 development obligations .........
Interest income:
88.40
Financing programs .....................................
88.40
Investment programs ...................................
88.40
Other income ................................................
Total, offsetting collections (cash) ..................

366
89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
–374
–83
–128

366

Status of Direct Loans (in millions of dollars)
Identification code 73–4154–0–3–376

...................
...................
...................
...................

Outstanding, end of year ...................................... ................... ................... ...................

BUSINESS LOAN FUND, DIRECT LOANS
Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1232 Disbursements: Purchase of loans assets from the
public .........................................................................
1251 Repayments: Repayments and prepayments .................
1263 Write-offs for default: Direct loans ...............................
1290

Outstanding, end of year ..........................................

1995 actual

1996 est.

1997 est.

1,987

1,675

1,476

199
–205
–306

226
–175
–250

159
–152
–221

1,675

1,476

1,262

BUSINESS LOAN FUND LIQUIDATING ACCOUNT
Program and Financing (in millions of dollars)
Identification code 73–4154–0–3–376

00.02
00.03
00.05
00.06

1995 actual

1996 est.

1997 est.

Obligations by program activity:
Defaults on guarantee loans—regular .........................
238
190
145
Defaults on guarantee loans—SBIC ............................. ................... ................... ...................
Other expenses ...............................................................
134
109
81
Section 503 prepayments ..............................................
30 ................... ...................

SMALL BUSINESS INVESTMENT COMPANY, DIRECT
LOANS
Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
57
6
3
Repayments:
1251
Repayments and prepayments .................................. ...................
–3
–3
1252
Proceeds from loan asset sales to the public or
discounted .............................................................
–51 ................... ...................
1290

Outstanding, end of year ..........................................

3 ...................

934

THE BUDGET FOR FISCAL YEAR 1997

Federal Funds—Continued

1901

Credit accounts—Continued
BUSINESS LOAN FUND LIQUIDATING ACCOUNT—Continued

1995 actual

SECTION 503 DEVELOPMENT COMPANY, DIRECT
LOANS
Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1251 Repayments: Repayments and prepayments .................
1290

Outstanding, end of year ..........................................

1996 est.

1997 est.

523
–167

356
–6

350
–12

356

350

338

Status of Guaranteed Loans (in millions of dollars)
1995 actual

Identification code 73–4154–0–3–376

BUSINESS LOAN FUND, LOAN GUARANTEES
Cumulative balance of guaranteed loans outstanding:
2210 Outstanding, start of year .............................................
2231 Disbursements of new guaranteed loans ......................
2251 Repayments and prepayments ......................................
Adjustments:
2261
Terminations for default that result in loans receivable .......................................................................
2264
Other adjustments, net .............................................
2290

Outstanding, end of year ..........................................

1996 est.

488

Total assets ........................................
LIABILITIES:
Federal liabilities:
2101
Accounts payable ................................
2102
Interest payable ..................................
Debt:
2103
Debt to the FFB ..............................
2103
SBIC and development company
participation certificates ...........
Non-Federal liabilities:
2201
Accounts payable ................................
2204
Liabilities for loan guarantees ...........
2207
Unearned revenue (advances) ............

2,549

2,210

1,882

1,671

1,461
54

1,445
156

1,275
100

1,150
76

581

361

297

245

..................

18
322
38

11
200
37

10
175
25

10
165
25

2999

2,548

2,210

1,882

1,671

1999

Status of Direct Loans (in millions of dollars)—Continued
Identification code 73–4154–0–3–376

Other Federal assets: Other assets ........

1997 est.

Total liabilities ....................................

Identification code 73–4154–0–3–376

9,479
7,675
6,373
4 ................... ...................
–1,536
–1,117
–896
–266
–6

–176
–9

–127
–7

7,675

6,373

5,343

Object Classification (in millions of dollars)
1995 actual

1996 est.

1997 est.

33.0
43.0
99.0

Investments and loans ..................................................
Interest and dividends ...................................................
Subtotal, reimbursable obligations ...............................

402
99
501

299
89
388

226
76
302

99.9

Total obligations ........................................................

501

388

302

DISASTER LOANS PROGRAM ACCOUNT
Memorandum:
2299 Guaranteed amount of guaranteed loans outstanding,
end of year ................................................................

6,574

5,199

4,375

788
266

1,054
176

1,230
127

1,054

1,230

1,357

2390

Outstanding, end of year ......................................

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

For the cost of direct loans authorized by section 7(b) of the Small
Business Act, as amended, $65,800,000, to remain available until
expended: Provided, That such costs including the costs of modifying
such loans, shall be as defined in section 502 of the Congressional
Budget Act of 1974.
In addition, for administrative expenses to carry out the direct loan
program, $78,000,000, which may be transferred to and merged with
the appropriations for Salaries and Expenses.
In addition, for the cost of emergency disaster loans and associated
administrative expenses, $100,000,000, to remain available until expended: Provided, That these funds, or any portion thereof, shall be
available beginning in fiscal year 1997 to the extent that the President
notifies the Congress of his designation of any or all of these amounts
as emergency requirements under Section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.
Provided further, That Congress hereby designates these amounts as
emergency requirements pursuant to such Act.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Program and Financing (in millions of dollars)

Statement of Operations (in millions of dollars)
Identification code 73–4154–0–3–376

1994 actual

1995 actual

1996 est.

1997 est.

0101
0102

Revenue ...................................................
Expense ....................................................

558
–499

170
–185

180
–175

184
–174

0109

Net loss ...................................................

–15

Identification code 73–1152–0–1–453

1995 actual

1996 est.

1997 est.

00.01
00.09

Obligations by program activity:
Direct loan subsidy ........................................................
Administrative expenses ................................................

414
200

262
127

66
78

10.00

Total obligations ........................................................

614

389

144

Budgetary resources available for obligation:
Unobligated balance available, start of year:
Uninvested balance ...................................................
22.00 New budget authority (gross) ........................................
22.10 Resources available from recoveries of prior year obligations .......................................................................

434
130

48 ...................
231
144

Balance Sheet (in millions of dollars)
Identification code 73–4154–0–3–376

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1104
Agency securities, par ....................
1107
Advances and prepayments ...........
Non-Federal assets:
1206
Receivables, net ..................................
1207
Advances and prepayments ................
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
1601
Direct loans, gross ..............................
1603
Allowance for estimated uncollectible
loans and interest (–) ....................
1699

Value of assets related to direct
loans ..........................................

1994 actual

1995 actual

1996 est.

1997 est.

512

666

600

575

..................
17

120
12

100
15

100
16

841
19

485
7

350
10

300
9

21.40

23.90
23.95
24.40

2,036

1,827

1,586

–1,315

–1,215

–1,100

–1,000

672

821

727

586

98
662
–614

110 ...................
389
–389

144
–144

48 ................... ...................

New budget authority (gross), detail:
Appropriation ..................................................................

130

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance:
Appropriation .............................................................
73.10 New obligations .............................................................
73.20 Total outlays (gross) ......................................................
73.45 Adjustments in unexpired accounts ..............................

655
614
–705
–98

40.00
1,987

231

144

72.40

466
232
389
144
–513
–257
–110 ...................

SMALL BUSINESS ADMINISTRATION
74.40

Unpaid obligations, end of year: Obligated balance:
Appropriation .............................................................

466

232

119

86.90
86.93

Outlays (gross), detail:
Outlays from new current authority ..............................
Outlays from current balances ......................................

104
601

164
349

111
146

87.00

Total outlays (gross) .................................................

705

513

257

89.00
90.00

Net budget authority and outlays:
Budget authority ............................................................
Outlays ...........................................................................

130
705

231
513

144
257

Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
Identification code 73–1152–0–1–453

Direct loan levels supportable by subsidy budget authority:
1150 Direct Disaster Loans ....................................................
Direct loan subsidy (in percent):
1320 Disaster subsidy rate .....................................................
Direct loan subsidy budget authority:
1330 Disaster subsidy budget authority ................................
Direct loan subsidy outlays:
1340 Disaster subsidy outlays ................................................

3510
3590

Administrative expense data:
Budget authority ............................................................
Outlays from new authority ...........................................

935

Federal Funds—Continued

1995 actual

1996 est.

1997 est.

1,311

932

406

31.54

28.08

16.21

414

262

505

384

179

200
200

127
127

78
78

As required by the Federal Credit Reform Act of 1990,
this account records, for loans made pursuant to section 7(b)
of the Small Business Act, as amended, the subsidy costs
associated with the direct loans obligated in 1992 and beyond
(including modifications of direct loans or loan guarantees
that resulted from obligations or commitments in any year),
as well as administrative expenses of this program. The subsidy amounts are estimated on a present value basis; the
administrative expenses are estimated on a cash basis.
Disaster loans made pursuant to Section 7(b) of the Small
Business Act are the primary form of Federal assistance for
non-farm, private sector disaster losses. For this reason, the
program is the only form of SBA assistance not limited to
small businesses. Through this program, SBA helps homeowners, renters, businesses of all sizes, and non-profit organizations pay for the cost of rebuilding. Pursuant to the Small
Business Act, the government subsidizes borrowers who have
incurred uninsured losses or economic injury as the result
of a natural disaster. These loans are also a critical source
of economic stimulation in disaster-ravaged communities,
helping to spur employment and stabilize the local tax base.
Eligibility is based on financial criteria. Interest rates fluctuate according to statutory formulas: a lower rate, not to
exceed four percent, available to applicants without credit
available elsewhere; and a higher rate, not to exceed eight
percent, for those with credit available elsewhere. There are
three loan programs: physical disaster loans to individuals,
physical disaster loans to businesses of any size, and economic
injury loans to small businesses without credit available elsewhere.

Program Performance:
Over the 41 year history of the program, SBA has helped
nearly 1.3 million disaster victims by providing more than
$22.1 billion in disaster assistance. Over 90 percent has been
to borrowers that otherwise would not have been able to
rebuild. During 1994 alone, SBA approved nearly 125,000
disaster loans for an all-time record amount of about $4 billion.
Given historical program performance, SBA has annually
made approximately $833 million in loans for disaster relief
(excluding the effect of the 1994 Northridge Earthquake). The

1997 request, including the program reform discussed below,
would support this program level.
Program Performance and Policy Goals.—SBA program performance and policy goals are as follows: 1) provide disaster
assistance to victims in the most effective and cost efficient
manner; 2) deliver an effective program that achieves its public policy objectives; 3) provide customer-focused assistance
that satisfactorily accommodates the needs of all disaster victims; and, 4) simplify and streamline the loan-making process
by re-engineering forms, procedures and processes.
Performance Indicators.—A true assessment of program
effectivess is a long-term process, and there is much to learn
about the true extent that the disaster loan program contributes to effective recovery. In the short term, SBA is committed to providing cost-effective delivery and high satisfaction
levels to the customers who use its services. In the long
run, the agency’s goal is to facilitate true economic recovery
and assess how the program’s business recovery assistance
contributes to the rebuilding of a local or regional economy.
Performance measures used in 1997 to assess progress in
achieving the above goals follow.
Outputs

Intermediate Outcomes

Loan decision within 7 to 20 days—
number, percent.
Initial disbursement ordered 4 days
after receipt of loan closing documents—number, percent.
Loans
approved—number,
dollar
amount.

Increased funds available at time of
need
Improved customer satisfaction due to
simplified and less burdensome
processes
Reduced costs to Government

Object Classification (in millions of dollars)
Identification code 73–1152–0–1–453

41.0
99.0
99.9

1995 actual

1996 est.

1997 est.

414

262

200

127

614

389

144

DISASTER LOANS PROGRAM ACCOUNT
(Legislative proposal, not subject to PAYGO)
Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
millions of dollars)
1995 actual

Identification code 73–1152–2–1–453

1996 est.

1997 est.

Direct loan levels supportable by subsidy budget authority:
1150 Direct Disaster Loans .................................................... ................... ...................

427

1159

427

Total direct loan levels ............................................. ................... ...................
Direct loan subsidy (in percent):
1320 Disaster subsidy rate ..................................................... ................... ...................

–8.31

To reduce the substantial subsidy in this program, the
budget proposes to increase the interest rate on all disaster
loans to the rate on Treasury securities of comparable maturity. This reform would reduce the subsidy rate from 16.21
percent down to 7.90 percent.
DISASTER DIRECT LOAN FINANCING ACCOUNT
Program and Financing (in millions of dollars)
Identification code 73–4150–0–3–453

00.01
00.02

Obligations by program activity:
Direct loans ....................................................................
Interest on Treasury borrowing ......................................

1995 actual

1,311
180

1996 est.

932
298

1997 est.

833
408

936

THE BUDGET FOR FISCAL YEAR 1997

Federal Funds—Continued

Credit accounts—Continued

Balance Sheet (in millions of dollars)

DISASTER DIRECT LOAN FINANCING ACCOUNT—Continued

Identification code 73–4150–0–3–453

Program and Financing (in millions of dollars)—Continued
Identification code 73–4150–0–3–453

10.00

Total obligations ........................................................

Budgetary resources available for obligation:
22.00 New financing authority (gross) ....................................
23.95 New obligations .............................................................
New financing authority (gross), detail:
Authority to borrow (indefinite) .....................................
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
68.10
Change in receivables from program account .........
68.47
Portion applied to debt reduction (–) .......................
67.15

1995 actual

1,491

1,491
–1,491

1996 est.

1,230

1,230
–1,230

1997 est.

1,241

1,241
–1,241

ASSETS:
Investments in US securities:
1106
Federal assets: Program account .......
Net value of assets related to post–
1991 direct loans receivable:
1401
Direct loans receivable, gross ............
1405
Allowance for subsidy cost (–) ...........
1499

Net present value of assets related
to direct loans ...........................

1994 actual

1995 actual

1996 est.

1997 est.

438

466

232

119

3,586
–235

6,748
–414

7,005
–262

7,179
–66

3,351

6,334

6,743

7,113

Total assets ........................................
LIABILITIES:
2104 Federal liabilities: Resources payable to
Treasury ...............................................

3,789

6,800

6,975

7,232

3,789

6,334

6,743

7,113

2999

7,113

1999
1,488

1,342

1,681

878
–231
–644

827
–76
–863

699
–98
–1,041

Spending authority from offsetting collections
(total) ................................................................

–112

–440

Total new financing authority (gross) ......................

1,491

1,230

1,241

Change in unpaid obligations:
Unpaid obligations, start of year:
72.90
Obligated balance: Fund balance .............................
72.95
Receivables from program account ..........................

2,112
438

1,870
207

1,400
131

2,550
1,491
–1,964

2,077
1,230
–1,776

1,531
1,241
–1,489

74.90
74.95

1,870
207

1,400
131

1,250
33

00.01
00.02

427
6

74.99

Total unpaid obligations, end of year ..................

2,077

1,531

1,283

10.00

Total obligations ........................................................ ................... ...................

433

87.00

Outlays (gross), detail:
Total financing disbursements (gross) .........................

1,964

1,776

1,489

22.00
23.95

433
–433

68.90
70.00

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................

3,789

6,334

6,743

..................

466

232

119

3999

Total net position ................................

..................

466

232

119

4999

Total liabilities and net position ............

3,789

6,800

6,975

7,232

DISASTER DIRECT LOAN FINANCING ACCOUNT
(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)

72.99
73.10
73.20

Identification code 73–4150–2–3–453

1995 actual

1996 est.

1997 est.

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Payments from program account .........................
Non-Federal sources:
88.40
Repayments of principal, net ...........................
88.40
Interest received on loans ................................

–414

–262

–66

–55
–409

–88
–478

–122
–512

68.90

Spending authority from offsetting collections
(total) ................................................................ ................... ...................

–6

88.90
88.95

Total, offsetting collections (cash) ..................
Change in receivables from program accounts ............

–878
231

–828
76

–700
98

70.00

Total new financing authority (gross) ...................... ................... ...................

433

89.00
90.00

Net financing authority and financing disbursements:
Financing authority ........................................................
Financing disbursements ...............................................

844
1,086

478
948

639
789

73.10
73.20
74.90

New financing authority (gross), detail:
Authority to borrow (indefinite) ..................................... ................... ...................
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) ..................................... ................... ...................
68.47
Portion applied to debt reduction (–) ....................... ................... ...................
67.15

438
16
–21

433
–232
200

Status of Direct Loans (in millions of dollars)
Identification code 73–4150–0–3–453

1995 actual

1996 est.

1997 est.

1210
1231
1251
1264

5,409
1,811
–55
–8

7,157
923
–88
–101

7,891
914
–122
–105

1290

Outstanding, end of year ..........................................

7,157

7,891

8,578

As required by the Federal Credit Reform Act of 1990,
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.

Outlays (gross), detail:
Total financing disbursements (gross) ......................... ................... ...................

232

–1
–15

88.90

Total, offsetting collections (cash) .................. ................... ...................

–16

89.00
90.00

417
216

87.00

Status of Direct Loans (in millions of dollars)
Identification code 73–4150–2–3–453

1995 actual

1996 est.

1997 est.

SMALL BUSINESS ADMINISTRATION
1131
1150

Direct loan obligations exempt from limitation ............ ................... ...................
Total direct loan obligations ..................................... ................... ...................

Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
1231 Disbursements: Direct loan disbursements ...................
1251 Repayments: Repayments and prepayments .................
1264 Write-offs for default: Other adjustments, net .............
1290

...................
...................
...................
...................

427
86.97

Outlays (gross), detail:
Outlays from new permanent authority .........................

47 ...................

87.00

Total outlays (gross) .................................................

47 ...................

427

................... ...................
...................
143
...................
–16
...................
–17

Outstanding, end of year .......................................... ................... ...................

110

Balance Sheet (in millions of dollars)

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
Non-Federal sources:
88.40
Loan repayments ..............................................
88.40
Interest income .................................................
88.40
Other income ....................................................
88.40
Recovery on Loan Cancellations ......................

–242
–252
–213
–93
–80
–67
–12
–10
–9
–3 ................... ...................
–350

1994 actual

1995 actual

1996 est.

1997 est.

88.90

..................

89.00
90.00

..................
..................

110
..................

..................

110

Total assets ........................................
LIABILITIES:
2104 Federal liabilities: Resources payable to
Treasury ...............................................

..................

110

..................

2999

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................

..................

3999

Total net position ................................

4999

Total liabilities and net position ............

Identification code 73–4150–2–3–453

Net present value of assets related
to direct loans ...........................

1999

1995 actual

Identification code 73–4153–0–3–453

..................

110

1290

Outstanding, end of year ..........................................

..................

110

Identification code 73–4153–0–3–453

Obligations by program activity:
Operating expenses:
01.01
Interest expense to Treasury .....................................
01.03
Other expenses ..........................................................
01.04
Total operating expenses ..........................................
Total obligations ........................................................

1995 actual

1996 est.

1,918

1,620

1,368

1994 actual

1995 actual

1996 est.

1997 est.

0101
0102

Revenue ...................................................
Expense ....................................................

420
–58

105
–102

90
–92

76
–77

0109

Net income or loss (–) ............................

362

–2

–1

Balance Sheet (in millions of dollars)
1994 actual

1995 actual

392
83

304
112

350
70

340
78

2,196

1,918

1,620

1,368

–177

–154

–165

–160

2,019

1,764

1,455

1,208

8
..................

1
6

1
..................

Total assets ........................................
LIABILITIES:
Federal liabilities:
2102
Interest payable ..................................
2104
Resources payable to Treasury ...........
2201 Non-Federal liabilities: Accounts payable

2,502

2,187

1,876

1,627

40
1
2,460

89
..................
2,098

32
..................
1,789

82
..................
1,545

2999

Total liabilities ....................................

2,501

2,187

1,821

1,627

4999

Total liabilities and net position ............

2,501

2,187

1,821

1,627

Identification code 73–4153–0–3–453

5
373

4
249

4
250

Total unobligated balance, start of year .............
New budget authority (gross) ........................................
Capital transfer to general fund ...................................

378
350
–373

253
342
–249

254
289
–250

23.90
23.95

355
–102

346
–92

293
–77

24.90
24.90

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Fund balance:
Committed .............................................................
Uncommitted .........................................................

4
249

4
250

4
212

24.99

Total unobligated balance, end of year ....................

253

254

216

2,195
1,918
1,620
5 ................... ...................
–242
–252
–213
–40
–46
–39

21.99
22.00
22.40

New budget authority (gross), detail:
68.00 Spending authority from offsetting collections (gross):
Offsetting collections (cash) .....................................

1997 est.

Statement of Operations (in millions of dollars)
Identification code 73–4153–0–3–453

102

1996 est.

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

1997 est.

89
80
67
12
12
10
1 ................... ...................

–289

Status of Direct Loans (in millions of dollars)

110

Program and Financing (in millions of dollars)

–342

DISASTER LOAN FUND LIQUIDATING ACCOUNT

10.00

Total, offsetting collections (cash) ..................

1210
1231
1251
1263

937

Federal Funds—Continued

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................
1206 Non-Federal assets: Receivables, net .....
Net value of assets related to pre–1992
direct loans receivable and acquired defaulted guaranteed loans
receivable:
1601
Direct loans, gross ..............................
1603
Allowance for estimated uncollectible
loans and interest (–) ....................
1699

1801
1803
350

342

289

14
102
–65

51
96
92
77
–47 ...................

72.90

173

Value of assets related to direct
loans ..........................................
Other Federal assets:
Cash and other monetary assets .......
Property, plant and equipment, net

1999

1996 est.

1997 est.

938

THE BUDGET FOR FISCAL YEAR 1997

Federal Funds—Continued

Credit accounts—Continued

2290

Outstanding, end of year ..........................................

2299

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

53
1
–8

46
1
–6

41
1
–5

2390

DISASTER LOAN FUND LIQUIDATING ACCOUNT—Continued

Object Classification (in millions of dollars)
Identification code 73–4153–0–3–453

1995 actual

1996 est.

1997 est.

33.0
43.0

Investments and loans ..................................................
Interest and dividends ...................................................

11
91

12
80

10
67

99.9

Total obligations ........................................................

102

Outstanding, end of year ......................................

POLLUTION CONTROL EQUIPMENT FUND LIQUIDATING ACCOUNT
Program and Financing (in millions of dollars)
Identification code 73–4147–0–3–376

1995 actual

1996 est.

1997 est.

Obligations by program activity:
Total obligations (object class 42.0) ............................

12
3

11
3

10
2

10.00

21.99
22.00

Total unobligated balance, start of year .............
15
14
12
New budget authority (gross) ........................................ ................... ................... ...................

23.90
23.95

15
–1

14
–1

12
–1

24.90
24.90

Total budgetary resources available for obligation
New obligations .............................................................
Unobligated balance available, end of year:
Fund balance:
Committed .............................................................
Uncommitted .........................................................

11
3

10
2

8
2

24.99

Total unobligated balance, end of year ....................

68.00

73.10
73.20

New budget authority (gross), detail:
Spending authority from offsetting collections (gross):
Offsetting collections (cash) ..................................... ................... ................... ...................
Change in unpaid obligations:
New obligations .............................................................
Total outlays (gross) ......................................................

1
–1

87.00

Offsets:
Against gross budget authority and outlays:
88.40
Offsetting collections (cash) from: Non-Federal
sources .................................................................. ................... ................... ...................
Net budget authority and outlays:
89.00 Budget authority ............................................................ ................... ................... ...................
90.00 Outlays ...........................................................................
1
1
1

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................
Adjustments:
2261
Terminations for default that result in loans receivable .......................................................................
2264
Other adjustments, net .............................................
2210

Identification code 73–4147–0–3–376

ASSETS:
Federal assets: Fund balances with
Treasury ...............................................
1206 Non-Federal assets: Receivables, net .....
1701 Net value of assets related to pre–1992
direct loans receivable and acquired
defaulted guaranteed loans receivable: Defaulted guaranteed loans,
gross ...................................................

1995 actual

1994 actual

1995 actual

15
21

14
9

1996 est.

1997 est.

1101

Total assets ........................................
LIABILITIES:
2104 Federal liabilities: Resources payable to
Treasury ...............................................
2201 Non-Federal liabilities: Accounts payable
2999

11
7

9
6

20
22

15
..................

12
..................

10
..................

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................
3300 Cumulative results of operations ............
3600 Other ........................................................

146
–146
..................

..................
..................
14

..................
..................
11

..................
..................
9

3999

Total net position ................................

..................

4999

Total liabilities and net position ............

ADMINISTRATIVE PROVISIONS—SMALL BUSINESS ADMINISTRATION

Status of Guaranteed Loans (in millions of dollars)
Identification code 73–4147–0–3–376

Balance Sheet (in millions of dollars)

1999

Outlays (gross), detail:
86.98 Outlays from permanent balances ................................ ...................
Total outlays (gross) .................................................

Public Law 94–305 established this fund to alleviate the
adverse impact of pollution regulations on small businesses.
As a result of the elimination of tax exempt financing associated with the Pollution Control Guaranteed program, no new
activity is anticipated for this program.
During 1992, the Small Business Administration started
the process of redeeming a large number of outstanding bonds
on which it has taken over loan payments. Most of these
targeted bonds are ten years old and voluntary redemption
is now viable under the bond documents. Redemption of these
obligations would preclude the SBA from paying excessive
interest over the next ten years.

1996 est.

1997 est.

106

–1
–10

–1
–8

–1
–7

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.
Note.—A regular 1996 appropriation for this account had not been enacted at the time
this budget was prepared. The 1996 amounts included in this budget are based on the
levels provided in three continuing resolutions: P.L. 104–91, P.L. 104–92, and P.L. 104–
99.

Full text of Budget of the United States Government - Appendix : Fiscal Year 1997 : Small Business Administration

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