Full text of Budget of the United States Government - Appendix : Fiscal Year 2000 : Small Business Administration

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SMALL BUSINESS ADMINISTRATION
The budget provides $994.5 million in new budget authority
for the Small Business Administration (SBA). The amount
requested consists of $761.5 million in regular discretionary
appropriations and $233.0 million in contingent emergency
appropriations. This funding level, when combined with anticipated carryover and decreased loan subsidy costs, will
allow SBA to continue to provide assistance to small businesses at a reduced cost to the Federal taxpayer.
In 2000, SBA expects to continue to increase its reliance
on its private sector partners. During 1998, over 75 percent
of SBA’s business loans were underwritten by its private sector lending partners with reduced SBA involvement. This
trend is expected to continue in 1999 and 2000, with the
expansion of SBA’s PLP, LowDoc, and SBA Express programs.
Additionally, in 1998, SBA began contracting out the servicing
of 30 percent of its Disaster Home Loan portfolio and is
developing an Asset Sales program to sell its approximately
$10 billion direct and defaulted guaranteed loan portfolios.
Sales will begin in 1999 and provide SBA an effective outlet
for its current and future loan portfolio servicing needs. These
initiatives will allow SBA to focus its limited resources on
expanding assistance to small businesses while relying on
private sector partners and investors for ‘‘back end’’ activities.
The budget estimates that these initiatives will lead to lower
credit, administrative and subsidy costs.
The budget proposes targeted program growth and new initiatives to expand access to capital and provide education
and training to a greater cross-section of America through
SBA’s ‘‘New Markets’’ outreach efforts. SBA’s second major
goal for 2000 will be to continue to modernize the SBA to
be a leading edge 21st century institution, poised to assist
the small business community in 2000 and beyond in a more
efficient and effective manner.
Federal Funds
General and special funds:
SALARIES

AND

EXPENSES

For necessary expenses, not otherwise provided for, of the Small
Business Administration as authorized by Public Law ø103–403¿
105–135, including hire of passenger motor vehicles as authorized
by 31 U.S.C. 1343 and 1344, and not to exceed $3,500 for official
reception and representation expenses, ø$288,300,000, of which:
$3,500,000 shall be available for a grant to the NTTC at Wheeling
Jesuit University to continue the outreach program to assist small
business development; $4,000,000 shall be available for a grant for
Western Carolina University to develop a facility to assist in small
business and rural economic development; $2,000,000 shall be available for a grant for the City of Hazard, Kentucky for a Center for
Rural Law Enforcement Technology and Training; $1,500,000 shall
be available for a grant to the State University of New York to
develop a facility and operate the Institute of Entrepreneurship for
small business and workforce development; $1,500,000 shall be available for a grant for Pikeville College for a telemedicine learning
and resource center; $1,000,000 shall be available for a grant for
the Center for Excellence in Marine Science Education at Southampton College; $1,000,000 shall be for a grant to King’s College in
Wilkes-Barre, Pennsylvania, for the commercialization of pulverization technologies; $850,000 shall be available for a grant for the
Carbondale Technology Transfer Center in Lackawanna County,
Pennsylvania; $1,000,000 shall be available for a grant for the Institute for Software Research in Fairmont, West Virginia, for Institute
operations and to further develop their capability to perform basic
and applied research aimed at software engineering, biometrics,
image processing and networks; $500,000 shall be available for a
grant for the Altoona Science and Technology Research Academy
in Altoona, Pennsylvania; $200,000 shall be available for a grant

to the City of Prestonburg, Kentucky for a regional arts and tourism
center; $300,000 shall be available for a grant for the City of Parkersburg, West Virginia for infrastructure improvements, facility upgrades, and property acquisition associated with community non-profit service and enrichment projects; $200,000 shall be available for
a grant for the Vandalia Heritage Foundation to fulfill its charter
purposes; $1,000,000 shall be available for a grant for the
Moundsville Economic Development Council to work in conjunction
with the Office of Law Enforcement Technology Commercialization
for the establishment of the National Corrections and Law Enforcement Training and Technology Center, and for infrastructure improvements associated with this initiative; and $250,000 shall be
available for a grant for the Johnstown Area Regional Industries
Defense Procurement Center to establish a Year 2000 challenge grant
program to assist small businesses that rely heavily on the Federal
Government’s acquisition system for their livelihood, and help provide
a solution to the Year 2000 computer problem¿ $263,000,000: Provided, That the Administrator is authorized to charge fees to cover
the cost of publications developed by the Small Business Administration, and certain loan servicing activities: Provided further, That,
notwithstanding 31 U.S.C. 3302, revenues received from all such activities shall be credited to this account, to be available for carrying
out these purposes without further appropriations: Provided further,
That ø$82,000,000¿ $62,000,000 shall be available to fund grants
for performance in fiscal year ø1999¿ 2000 or fiscal year ø2000¿
2001 as authorized by section 21 of the Small Business Act, as
amended. (Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1999, as included in
Public Law 105–277, section 101(b).)
Program and Financing (in millions of dollars)
Identification code 73–0100–0–1–376

1998 actual

1999 est.

2000 est.

Obligations by program activity:
Government contracting and minority enterprise development .......................................................................
00.02 Disaster assistance .......................................................
00.04 Management and administration ..................................
00.05 Executive direction .........................................................
00.06 General counsel .............................................................
00.07 Congressional and legislative affairs ...........................
00.08 Hearings and appeals ...................................................
00.09 Communications and publications ................................
00.11 Advocacy ........................................................................
00.12 Field operations .............................................................
00.13 Equal employment opportunity and civil rights compliance ...........................................................................
00.14 Regional and district offices .........................................
00.15 Chief financial officer ....................................................
00.16 Capital Access ...............................................................
00.17 Entrepreneurial development .........................................
00.18 Small disadvantaged businesses ..................................

22
104
70
11
7
1
1
3
5
2

25
86
73
11
7
1
1
3
5
2

35
41
79
11
8
1
1
3
5
2

1
127
8
36
101
10

1
133
10
44
136
12

2
129
11
60
94
12

10.00

Total new obligations ................................................

509

550

494

21.40
22.00
22.22

3
17 ...................
523
533
494
3 ................... ...................

23.90
23.95
23.98
24.40

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance expiring ........................................
Unobligated balance available, end of year .................

529
550
494
¥509
¥550
¥494
¥3 ................... ...................
17 ................... ...................

00.01

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
254
42.00
Transferred from other accounts .............................. ...................

288
263
1 ...................

43.00

254

289

263

269

244

231

68.00

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

1077

1078

THE BUDGET FOR FISCAL YEAR 2000

Federal Funds—Continued

General and special funds—Continued
SALARIES

AND

EXPENSES—Continued

Program and Financing (in millions of dollars)—Continued
1998 actual

Identification code 73–0100–0–1–376

70.00

1999 est.

2000 est.

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

523

533

494

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance,
start of year ..............................................................
73.10 Total new obligations ....................................................
73.20 Total outlays (gross) ......................................................
73.40 Adjustments in expired accounts ..................................
74.40 Unpaid obligations, end of year: Obligated balance,
end of year ................................................................

171
509
¥484
¥14

182
550
¥403
¥7

322
494
¥471
¥12

182

322

333

197
159
18 ...................
269
244

145
95
231

72.40

86.90
86.93
86.97

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

87.00

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

484

403

471

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

¥97
¥109
¥50
¥11
¥2

¥114
¥82
¥35
¥11
¥2

¥131
¥41
¥45
¥12
¥2

88.90

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

¥269

¥244

¥231

89.00
90.00

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

254
215

289
159

263
240

Summary of Budget Authority and Outlays
(in millions of dollars)

Enacted/requested:
1998 actual
1999 est.
Budget Authority .....................................................................
254
289
Outlays ....................................................................................
215
159
Legislative proposal, not subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

254
215

289
159

2000 est.

263
240
31
17
294
257

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:
Executive Direction.—Executive Direction includes the Office of the Administrator, Advocacy, Equal Employment Opportunity and Civil Rights Compliance (EEO&CRC), Congressional and Legislative Affairs (CLA), Hearings and Appeals
(HA), General Counsel, Field Operations, Communications
and Public Liaison (CPL), and the Office of the Chief Financial Officer (CFO). The Office of the Administrator provides
general management to the SBA organization. The Office of
Advocacy is the principal voice for small business within the
government. The Office of EEO & CRC ensures SBA and
its programs comply with all applicable equal opportunity
laws and regulations. The Office of CLA provides agency wide
support and coordination for all congressional activities. The
Office of HA determines size appeals, Small Disadvantaged
Business protests and other administrative adjudication matters. The Office of the General Counsel provides agency wide
legal support and advice. The Office of Field Operations oversees and provides management and operational support to

SBA’s regional and district offices. The Office of CPL coordinates SBA’s marketing, public outreach, and public information programs. The Office of the CFO administers SBA’s budget and financial management activities, including financial
systems, subsidy rates, financial reporting, and internal control activities.
Capital Access.—The Associate Deputy Administrator (ADA)
for this function directs the following SBA programs: Financial Assistance; Surety Bond Guarantees; Investment; and
International Trade. These offices are responsible for the administration of all SBA credit and international trade and
lending programs. Starting in 1999, SBA will emphasize its
goal of increasing small business access to its capital and
credit programs, targeting ‘‘new markets.’’ These are areas
where individuals and/or communities have not previously
had ready access to SBA’s programs and services. Through
such efforts as the recent roll-out of SBA LowDoc and SBA
Express, the upcoming roll-out of Export Express, and the
regional SBIC outreach conferences, SBA will reach a greater
cross-section of America with its programs. For 2000, in addition to continuing these emphasis areas, SBA proposes to
expand most credit and capital programs and introduce new
program initiatives, such as the New Markets Venture Capital Program, to further increase lending in distressed inner
cities and rural areas, and encourage more loans in smaller
amounts.
Entrepreneurial Development.—The Associate Deputy Administrator (ADA) for this function directs the following SBA
programs: Women’s Business Ownership; Small Business Development Centers; Veteran’s Affairs; Office of Native American Affairs; and Business Initiatives, which includes the
Service Corps of Retired Executives. These programs provide
outreach and technical assistance to small business communities, especially women, Veterans, and minorities. Through
special initiatives such as the One Stop Capital Shops, Distance Learning and Welfare to Work, SBA will increase its
access to entrepreneurs, particularly in ‘‘new markets.’’
Government Contracting and Minority Enterprise Development.—The Associate Deputy Administrator for this function
directs the following SBA programs: Government Contracting;
Section 8(a) Business Development; Technology; and Size
Standards. These offices are responsible for effectively advocating for small businesses in the area of government contracting and Federal research and development. Government
contracting activities are aimed at ensuring that small businesses receive a fair share of Federal procurement awards.
The Section 8(a) Business Development program provides assistance to socially and economically disadvantaged small
business concerns, primarily in the areas of business development and Federal procurement. Through this office, SBA assists firms that are owned by disadvantaged persons to help
them develop into viable competitive businesses in a reasonable period of time. These program areas also administer
the government-wide Small Disadvantaged Business (SDB)
programs, certifying firms as SDB to facilitate their active
participation in Federal procurement. Also, starting in 1999,
SBA implemented the HUBZones legislation, intended to increase small business procurement opportunities in designated ‘‘zones’’ of the country.
Management and Administration.—The Associate Director
for Management and Administration directs the Office of the
Chief Information Officer (OCIO), Office of Administration
(OA), and Office of Human Resources (OHR). The OCIO has
lead responsibility for SBA’s systems modernization initiatives
and its Y2K resolution. The modernization plan includes a
multi-year project to upgrade and modernize all of SBA’s systems and programs providing more reliable and timely management information. The Office of Administration administers SBA’s space management, printing, and procurement
and grants management programs. The Office of Human Re-

SMALL BUSINESS ADMINISTRATION

sources administers SBA’s workforce planning and management efforts, including workforce training programs. In 2000,
SBA proposes to implement a workforce transition plan, designed to prepare SBA staff to operate the agency as a 21st
Century Financial Institution. This proposed plan includes
additional employee training and buyout authority to enable
SBA to allocate staff in an effective and efficient manner.
In addition, the ADA has principal responsibility for SBA’s
GPRA performance and strategic planning process.
Disaster Assistance.—The Associate Administrator for the
Office of Disaster Assistance directs the Disaster Loan Program which provides physical disaster loans to individuals
and businesses of any size and economic injury loans to small
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 four
percent.

Program Performance
Small Business Development Centers (SBDCs).—The SBDCs
provide long term counseling to small businesses at about
1,000 locations in 50 states and Puerto Rico, Guam, and the
District of Columbia. In 1998, more than 547,000 customers
were helped, of which 38 percent were women and 19 percent
were minorities. For 2000, the budget proposes federal funding of $62 million and the removal of the statutory prohibition
on SBDCs charging of fees for counseling. With the removal
of this language, SBDCs would be encouraged to charge reasonable fees for their services to provide sufficient resources
to support their 2000 funding needs.
Women’s Business Centers.—Through this program, the SBA
awards grants to nonprofit organizations to deliver entrepreneurial training programs to women business owners or
those interested in starting businesses. In 1998, 35 funded
and 35 graduated women’s business centers were operating
in 38 states, the District of Columbia and Puerto Rico. Each
offers financial, management, marketing and technical assistance to current and potential women business owners. With
the increased funding in 1999, this program will expand to
include coverage of all 50 states. The 2000 budget request
includes $9 million for this program to support all 1999 funded centers and to continue two initiatives begun in 1996:
OWBOZone, an intranet that links all of the Women’s Business Centers; and the Online Women’s Business Center on
the Internet, which allows women nationwide to have access
to the same services offered by the centers.
One Stop Capital Shops (OSCS).—OSCSs are located in
Empowerment Zones and Enterprise Communities. This program’s objective is to stimulate and sustain economic revitalization in distressed areas. An OSCS is a partnership between
SBA and a local community designed to offer small business
assistance under one roof from an easy to access, retail location. Each is unique, is located in a distressed area, and
targets new urban and rural markets. For 2000, the budget
proposes funding of $10 million to support 6 new OSCS locations to be established in 1999 and 14 additional OSCSs in
2000, as well as the existing network of OSCS locations.
Microloan Technical Assistance.—The Microloan Program
technical assistance component helps small businesses gain
access to private sector financing and assists SBA’s Microloan
program through grants to microloan intermediaries for ongoing management advice and counseling. The program also
supports the Administration’s initiative to help individuals
receiving welfare assistance move to work by providing opportunities to start up small businesses using SBA-guaranteed
microloans. Microloan Technical Assistance grants ensure
that microloan borrowers are provided the education and

Federal Funds—Continued

1079

training needed for them to succeed. The budget provides
$32.0 million in Microloan grants. This amount will support
the increased program level and the portfolio with a 20 percent level of funding and allow for the growth of technical
assistance providers to include both financial and non-financial intermediaries.
Native American Outreach Through Tribal Business Information Centers (TBICs).—SBA provides reservation- and nonreservation-based entrepreneurs access to state-of-the-art
computer and software technology, one-on-one business counseling services, and business development workshops. The
facilitators of these centers have received extensive technical
training in SBA’s lending, business development and entrepreneurial development programs. In 1998, these centers
served approximately 3,000 clients, and provided 4,892 hours
of business counseling, held approximately 200 workshops,
assisted in the completion of approximately 200 business
plans and 120 loan packages, and were instrumental in the
startup of approximately 170 businesses. For 2000, the budget
proposes $1 million to support the continuation of this important initiative.
Veteran’s Outreach.—This program advocates enhanced entrepreneurial development opportunities for veterans. In 1998,
the Administrator established a Veterans Task Force to examine Agency programs which could be used as vehicles to provide enhanced services to eligible veterans. Additionally, in
1998, the Congress passed legislation requiring SBA to undertake a study of assistance to veterans and to establish an
outreach program to better serve the unique needs of the
veteran community. The 2000 budget proposes $615 thousand
to support this statutory program initiative.
Service Corps of Retired Executives (SCORE).—Using oneon-one counseling and workshops, SCORE reaches about
354,000 business owners annually using approximately 12,500
counselors through 389 chapters located across the country.
Counseling costs to the Government are less than $3 per
hour. For 2000, the budget proposes a funding level of $3.5
million for this program, the same level as provided in 1999.
Business Information Centers (BIC).—These centers offer
self-help hardware, software and reference materials, and onsite 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 2000, the budget
includes $700 thousand to support these locations, the same
level of funding as provided in 1999.
Section 8(a) Business Development.—SBA administers a
number of programs and initiatives to support the business
development and contracting goals of socially and economically disadvantaged businesses. These include the Section 8(a)
program and the Section 7(j) technical assistance programs.
The Section 8(a) program certifies firms for participation in
sole-source federal contracts and access to targeted business
development, executive development, and technical assistance
through the Section 7(j) program. For 2000, the budget proposes $5 million in Section 7(j) technical assistance funding
to support the expanding executive development and business
assistance needs of these entrepreneurs.
Small Disadvantaged Business (SDB) Certification.—Starting in 1998, SBA was designated as the lead agency to certify
firms nationally as SDBs. This certification process enables
firms to receive federal contracts set aside for these small
businesses. Funding for this program is provided through reimbursements from the approximately 20 largest Federal procuring agencies. The program’s funding level for 2000 is proposed to be $12 million.
HUBZones.—Legislation passed in 1998 created a national
program to support enhanced business growth and development in designated HUBZones. SBA began implementation
of this program in 1998 and will have a viable HUBZones

1080

THE BUDGET FOR FISCAL YEAR 2000

Federal Funds—Continued

General and special funds—Continued
SALARIES

AND

EXPENSES—Continued

program operating in 1999. Funding for this program is requested at $4 million for 2000.
SBA Modernization and Workforce Transition.—In order to
continue to modernize the SBA—preparing itself for the 21st
Century—all major systems need to be replaced and updated.
SBA began its multi-year systems modernization effort in
1998. This project is being undertaken in phases, with the
first phase concentrating on SBA’s need to monitor and oversee its lenders and its increasing loan portfolio. Starting in
1999 and 2000, SBA will complete this phase and begin modernization of its financial management systems and other program systems. Funding for 2000 is requested at $8 million,
the same level as provided in 1999. Additionally, in order
to transition SBA’s workforce in an orderly manner to the
new roles and responsibilities facing the Agency today and
into the 21st Century, we request $5 million to support increased training and the transition of staff to a more customer-focused and community-based structure. Of this
amount, approximately $1 million will be used to offer retirement incentives through buyout authority, which requires legislation.
Investment Division.—In order to provide an adequate level
of administrative support necessary to this expanding program, including the new Low and Moderate Income Investments (LMI), the enhanced debenture and participating securities levels, and the proposed New Markets Venture Capital
Program, $2 million in additional administrative funding is
requested for 2000.
U.S. Export Assistance Centers.—The SBA is a partner with
the Department of Commerce and the Export-Import Bank
in the U.S. Export Assistance Center (USEAC) Program.
Through a network of 19 USEACs located across the nation,
SBA delivers financial and technical assistance and business
development counseling to small businesses that sell their
products globally. The USEACs provide ‘‘one-stop shop’’ exporting assistance. The 2000 budget includes a request for
$3.1 million for this purpose.
Other Programs and Initiatives.—In addition to the above,
SBA proposes to fund the Women’s Council for 2000 at $600
thousand; the Survey of Women Owned Businesses as part
of the Census for $790 thousand; and to Fund the Office
of Advocacy’s database and research. For 2000, SBA will provide outreach, training and support to small businesses to
increase their use of electronic commerce leading to increased
contracting. This initiative is proposed at $2 million. In order
to ensure maximum utilization of electronic commerce, we
intend to use Pro-Net, SBA’s national database of small business contractors. Leveraging Pro-Net in this way is consistent
with recent procurement streamlining initiatives. The 2000
budget requests $500 thousand for this initiative. Also, SBA
will assist in the support of BusinessLINC, an initiative to
link large businesses in a mentor/protege relationship with
small businesses; promote best practices; and help grow small
businesses in distressed urban areas and isolated communities. This initiative is proposed at a level of $3 million
for 2000.
SBA has implemented a ‘‘Welfare to Work’’ initiative
throughout its field offices to link work-ready employees with
small business employers. Starting in 1999 and continuing
through 2000, SBA will assist in the identification of employment opportunities for Americans with disabilities.
Administrative Operating Expenses.— SBA’s cost of operations are financed through direct appropriations to the Salaries and Expenses, Disaster Loans Program, and Business
Loans Program accounts. Disaster loan servicing and loan
making are funded directly through an appropriation to the
Disaster Loan Program account. SBA’s general operating ex-

penses are funded directly by the appropriations to Salaries
and Expenses and indirectly through appropriations to the
Disaster Loan Program and Business Loan Program accounts.
For 2000, the funding requested for general and administrative operating expenses will require SBA to consolidate operations, increase efficiencies, and significantly reduce overhead
expenses in order to support expanding programs. Transition
planning to a more modern, efficient SBA organizations is
emphasized in 1999, so that 2000 funding can be used to
train, relocate and motivate employees to support the SBA
of the 21st century.

Performance Goals
Program and Policy Goals under the GPRA.—President
Clinton has made small business formation and growth a
component of his national economic plan. The Small Business
Administration has focused on the following five program and
policy goals in support of the plan: (1) increase opportunities
for small businesses to succeed, including increasing access
to capital and business development; (2) transform the SBA
into a 21st Century leading edge institution; (3) help communities and families recover from disasters; (4) lead small business participation in welfare-to-work; and (5) serve as a voice
for America’s small businesses. These five goals are summarized under SBA’s two focus areas for 1999–2000: ‘‘New Markets’’ and ‘‘Modernization.’’ SBA works to ensure access to
its myriad of programs and services to a wide cross-section
of America and aims to do this in an efficient and effective
manner using technology and customer-focused approaches.
SBA’s Strategic Plan.—It is the mission of the SBA to serve
America’s small businesses in the most cost-effective manner
possible to help preserve free competition, to contribute to
strengthening the Nation’s economy, and to assist disasterravaged communities recover from their losses. SBA’s fiveyear strategic plan developed in 1998 includes the specific
goals and strategies to be employed in 1998–2003 to accomplish this mission. SBA continues to enhance these performance measures—moving from outputs to outcomes.
Object Classification (in millions of dollars)
1998 actual

Identification code 73–0100–0–1–376

11.1
11.3
11.5
11.9
12.1
21.0
22.0
23.1
23.3
24.0
25.2
26.0
31.0
41.0
92.0
92.0
99.9

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

1999 est.

2000 est.

153
9
2

167
9
3

176
10
3

Total personnel compensation ..............................
164
Civilian personnel benefits ............................................
41
Travel and transportation of persons ............................
6
Transportation of things ................................................
1
Rental payments to GSA ................................................
24
Communications, utilities, and miscellaneous charges
10
Printing and reproduction .............................................. ...................
Other services ................................................................
48
Supplies and materials .................................................
1
Equipment ......................................................................
2
Grants, subsidies, and contributions ............................
108
Undistributed:
Undistributed (disaster loan making) .......................
79
Undistributed (disaster loan servicing) ....................
25

179
46
6
1
25
12
1
44
2
2
146

189
50
7
1
25
12
1
47
2
2
117

55
31

11
30

550

494

Total new obligations ................................................

509

Personnel Summary
Identification code 73–0100–0–1–376

1001

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

1998 actual

4,279

1999 est.

4,496

2000 est.

4,538

Note.—The personnel summary includes regular (non-disaster) full-time equivalents (FTEs) of 2,979, 3,242, and
3,279 in 1998, 1999, and 2000 respectively.

SMALL BUSINESS ADMINISTRATION
SALARIES

AND

1081

Federal Funds—Continued

00.04

Disaster ..........................................................................

10.00

Total new obligations ................................................

21.40
22.00

EXPENSES

(Legistative proposal, not subject to PAYGO)

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

23.90
23.95

Total budgetary resources available for obligation
Total new obligations ....................................................

Program and Financing (in millions of dollars)
1998 actual

Identification code 73–0100–2–1–376

1999 est.

2000 est.

00.04
00.16

Obligations by program activity:
Management and Administration .................................. ................... ...................
Capital Access ............................................................... ................... ...................

1
30

10.00

Total new obligations ................................................ ................... ...................

22.00
23.95

Budgetary resources available for obligation:
New budget authority (gross) ........................................ ................... ...................
Total new obligations .................................................... ................... ...................

31
¥31

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

73.10
73.20
74.40

Change in unpaid obligations:
Total new obligations .................................................... ................... ...................
Total outlays (gross) ...................................................... ................... ...................
Unpaid obligations, end of year: Obligated balance,
end of year ................................................................ ................... ...................

31
¥17
14

86.90

Outlays (gross), detail:
Outlays from new current authority .............................. ................... ...................
Net budget authority and outlays:
Budget authority ............................................................ ................... ...................
Outlays ........................................................................... ................... ...................

31
17

70.00

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

12
¥11

11
¥11

1 ................... ...................
11

Change in unpaid obligations:
Unpaid obligations, start of year: Obligated balance,
start of year .............................................................. ...................
73.10 Total new obligations ....................................................
11
73.20 Total outlays (gross) ......................................................
¥10
74.40 Unpaid obligations, end of year: Obligated balance,
end of year ................................................................
1

1
11
¥11

72.40

89.00
90.00

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

1 ................... ...................
11
11
11

Object Classification (in millions of dollars)
1998 actual

Identification code 73–0100–2–1–376

11.5

1999 est.

2000 est.

41.0

Personnel compensation: Other personnel compensation ............................................................................ ................... ...................
Grants, subsidies, and contributions ............................ ................... ...................

1
30

99.9

Total new obligations ................................................ ................... ...................

OFFICE

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

9
1

10
1

87.00

SBA will propose legislative authority for two new initiatives in 2000.
New Markets, Venture Capital (NMVC) Technical Assistance.—SBA proposes to establish a new venture capital program in 2000 to encourage equity lending in ‘‘new markets.’’
A key component to the success of this program is the provision of technical assistance grants to the firms in these inner
cities and rural areas to assure development of managerial
and technical competencies needed to be successful investments for the NMVC entities. For 2000, SBA requests $30
million for this technical assistance program to support $100
million NMVC program level.
Workforce Transition.—As part of SBA’s request for $5 million to permit an orderly transition of its workforce to new
roles and responsibilities, $1 million is requested to offer retirement incentives. SBA will propose legislative authority
to offer these incentives.

86.90
86.93

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

¥1 ................... ...................

10
10

11
11

This appropriation provides funds for agency-wide audit,
investigative, and inspection/evaluation functions to promote
economy and efficiency in agency operations and to prevent
and detect fraud, waste, and abuse. The audit function provides internal and external audits and other oversight activities. Internal audits assess the general management and efficiency of SBA program operations. External audits review
program participants and their compliance with SBA regulations and procedural requirements. Inspections/evaluations
address specific issues related to program management and
effectiveness. The investigative function detects and investigates allegations of illegal and improper activities involving
agency personnel and program participants.
The 2000 budget requests $11 million to support critical
oversight of SBA’s business loan portfolio and other programs.
The OIG oversight efforts and investigative activities: (1) enhance the SBA’s efficiency and effectiveness, (2) serve to deter
fraud and abuse in agency programs, and (3) consistently
demonstrate a high rate of return on invested funds.

INSPECTOR GENERAL

For necessary expenses of the Office of Inspector General in carrying out the provisions of the Inspector General Act of 1978, as amended (5 U.S.C. App.), ø$10,800,000¿ $11,000,000. (Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1999, as included in Public Law 105–277, section
101(b).)

Object Classification (in millions of dollars)
1998 actual

Identification code 73–0200–0–1–376

1999 est.

2000 est.

11.1
12.1

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

9
2

99.9

Total new obligations ................................................

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

00.01
00.02
00.03

Obligations by program activity:
Management and counsel .............................................
Audit ...............................................................................
Investigations .................................................................

1998 actual

1999 est.

Personnel Summary

2000 est.
Identification code 73–0200–0–1–376

2
3
5

1001

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

1998 actual

100

1999 est.

109

2000 est.

104

1082

THE BUDGET FOR FISCAL YEAR 2000

Federal Funds—Continued

Public enterprise funds:

Balance Sheet (in millions of dollars)

øSURETY BOND GUARANTEES REVOLVING FUND¿

Identification code 73–4156–0–3–376

øFor additional capital for the ‘‘Surety Bond Guarantees Revolving
Fund’’, authorized by the Small Business Investment Act, as amended, $3,300,000, to remain available without fiscal year limitation as
authorized by 15 U.S.C. 631 note.¿ (Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations
Act, 1999, as included in Public Law 105–277, section 101(b).)

1997 actual

1998 actual

1999 est.

2000 est.

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................
1206 Non-Federal assets: Receivables, net .....

42
..................

43
..................

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

1998 actual

Identification code 73–4156–0–3–376

1999 est.

2000 est.

10.00

Total new obligations (object class 42.0) ................

21.40
22.00

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

2
12

4
9

6
7

23.90
23.95
24.40

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance available, end of year .................

14
¥10
4

13
¥7
6

13
¥6
7

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

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

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

40
10
¥12

38
7
¥7

38
6
¥6

70.00

72.40

86.90
86.97

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

4
8

87.00

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

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

¥8

¥6

¥7

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

4
3

89.00
90.00

325
–323

329
–325

332
–326

335
–326

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

Obligations by program activity:
09.01 Reimbursable obligations ..............................................

Total assets ........................................
LIABILITIES:
2201 Non-Federal liabilities: Accounts payable
2999

Program and Financing (in millions of dollars)

1999

3 ...................
4
6

3999

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

4999

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

Credit accounts:
BUSINESS LOANS PROGRAM ACCOUNT
For the cost of direct loans, ø$2,200,000¿ $4,000,000, to be available
until expended; and for the cost of guaranteed loans, ø$128,030,000¿
$144,368,000, as authorized by 15 U.S.C. 631 note, of which
$45,000,000 shall remain available until September 30, ø2000¿ 2001:
Provided, That such costs, including the cost of modifying such loans,
shall be as defined in section 502 of the Congressional Budget Act
of 1974, as amended: ƒProvided further, That of the funds previously
made available under Public Law 105–135, section 507(g), for the
Delta Loan program, up to $20,000,000 may be transferred to and
merged with the appropriations for salaries and expenses:¿ Provided
further, That during fiscal year ø1999¿ 2000, commitments to guarantee loans under section 503 of the Small Business Investment Act
of 1958, as amended, shall not exceed øthe amount of financings
authorized under section 20(d)(1)(B)(ii) of the Small Business Act,
as amended¿ $3,500,000,000: Provided further, That during fiscal
year ø1999¿ 2000, commitments for general business loans authorized
under section 7(a) of the Small Business Act, as amended, shall
not exceed ø$10,000,000,000¿ $10,500,000,000 øwithout prior notification of the Committees on Appropriations of the House of Representatives and Senate in accordance with section 605 of this Act.¿ In
addition, commitments to guarantee loans under section 303(b) of
the Small Business Investment Act of 1958, as amended, shall not
exceed $800,000,000.
In addition, for administrative expenses to carry out the direct
and guaranteed loan programs, ø$94,000,000¿ $131,000,000, which
may be transferred to and merged with the appropriations for Salaries and Expenses. (Departments of Commerce, Justice, and State,
the Judiciary, and Related Agencies Appropriations Act, 1999, as included in Public Law 105–277, section 101(b).)

3 ...................
1
¥1

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 2000, the budget proposes a $1.7 billion program level
that is anticipated to be sufficient to accommodate demand
from prior-approval and preferred sureties in 2000.
Fees were lowered in 1998, and as a result, SBA expects
demand for this program to increase in 1999 and 2000. However, due to sufficient fund balances and fee revenues anticipated in 2000, an appropriation to this account is not needed
for 2000 to support the annual program level of bond guarantees.

General Fund Credit Receipt Accounts (in millions of dollars)
Identification code 73–1154–0–1–376

0101

Business loan program, downward reestimates of
subsidies ...................................................................

1998 actual

843

1999 est.

2000 est.

605

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

1998 actual

1999 est.

2000 est.

00.01
00.02
00.05
00.06
00.09

Obligations by program activity:
Direct loan subsidy ........................................................
Guaranteed loan subsidy ...............................................
Reestimate of loan guarantee subsidy .........................
Interest on reestimates of loan guarantee subsidy
Administrative expenses ................................................

1
208
284
25
99

3
5
164
151
28 ...................
7 ...................
114
131

10.00

Total new obligations ................................................

617

316

287

71
586

72
259

17
279

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

1997 actual

1998 actual

1999 est.

2000 est.

0101
0102

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

12
–12

12
–10

9
–7

7
–6

0109

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

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

Budgetary resources available for obligation:
Unobligated balance available, start of year ...............
New budget authority (gross) ........................................
Resources available from recoveries of prior year obligations .......................................................................
22.21 Unobligated balance transferred to other accounts
22.22 Transferred from other accounts ...................................

21.40
22.00
22.10

28
2 ...................
¥3 ................... ...................
7 ................... ...................

SMALL BUSINESS ADMINISTRATION
23.90
23.95
24.40

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance available, end of year .................

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
Permanent:
60.05
Appropriation (indefinite) ..........................................
68.00
Spending authority from offsetting collections: Offsetting collections (cash) .....................................
70.00

689
¥617
72

333
¥316
17

296
¥287
9

275

224

279

309

35 ...................

2 ................... ...................

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

586

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

113
617
¥576
¥28

259

279

72.40

126
139
316
287
¥301
¥293
¥2 ...................

2320
2320
2320
2320
2320
2320
2320

Guaranteed loan subsidy (in percent):
General business—7(a) ................................................
General business—7(a) DELTA .....................................
Section 504 ....................................................................
Section 504 DELTA .........................................................
SBIC debentures ............................................................
SBIC participating securities .........................................
Micro loan guarantees ...................................................

153
112
311

141
176
125
117
35 ...................

87.00

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

576

301

293

2349

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

¥2 ................... ...................

3510
3580
3590

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

89.00
90.00

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

139

584
576

259
301

133

279
293

Summary of Budget Authority and Outlays
(in millions of dollars)

Enacted/requested:
1998 actual
1999 est.
Budget Authority .....................................................................
584
259
Outlays ....................................................................................
574
301
Legislative proposal, not subject to PAYGO:
Budget Authority ..................................................................... .................... ....................
Outlays .................................................................................... .................... ....................
Total:
Budget Authority .....................................................................
Outlays ....................................................................................

584
574

259
301

2000 est.

279
293
52
33
331
326

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

1998 actual

1999 est.

2000 est.

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

1159

Total direct loan levels ............................................. ...................
Direct loan subsidy (in percent):
1320 Micro loans ....................................................................
10.31

9.54

8.54

1329

9.54

8.54

Weighted average subsidy rate .................................
10.31
Direct loan subsidy budget authority:
1330 Micro loans .................................................................... ...................
1339

Total subsidy budget authority ................................. ...................
Direct loan subsidy outlays:
1340 Micro loans ....................................................................
1

1349

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

Guaranteed loan levels supportable by subsidy budget
authority:
2150 General business—7(a) ................................................
7,523
7,754
10,259
2150 General business—7(a) DELTA ..................................... ................... ................... ...................
2150 Section 504 ....................................................................
3,000
3,500
3,500
2150 Section 504 DELTA ......................................................... ................... ................... ...................
2150 SBIC debentures ............................................................
446
640
800
2150 SBIC participating securities .........................................
526
800
1,500
2150 Microloan guarantees .................................................... ................... ................... ...................
2159

Total loan guarantee levels ......................................

11,495

12,694

16,059

1.39
2.08
0.00
1.29
1.38
2.19
7.97

1.16
1.83
0.00
1.13
0.00
1.80
8.32

Weighted average subsidy rate .................................
1.80
1.11
1.11
Guaranteed loan subsidy budget authority:
2330 General business—7(a) ................................................
279
108
118
2330 General business—7(a) DELTA ..................................... ................... ................... ...................
2330 Section 504 ....................................................................
166
27 ...................
2330 Section 504 DELTA ......................................................... ................... ................... ...................
2330 SBIC debentures ............................................................
9
5 ...................
2330 SBIC participating securities .........................................
12
17
26
2330 Micro loan guarantees ................................................... ................... ................... ...................

86.90
86.93
86.97

126

2.14
3.36
0.00
0.72
1.94
2.20
8.15

2329

Total subsidy budget authority .................................
Guaranteed loan subsidy outlays:
2340 General business—7(a) ................................................
2340 General business—7(a) DELTA .....................................
2340 Section 504 ....................................................................
2340 Section 504 DELTA .........................................................
2340 SBIC debentures ............................................................
2340 SBIC participating securities .........................................
2340 Micro loan guarantees ...................................................

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

1083

Federal Funds—Continued

2339

466

476

157

144

275
136
130
2
1
2
175
26 ...................
2 ................... ...................
9
5 ...................
12
17
27
1
1
1
186

160

99
94
131
3 ................... ...................
96
114
131

As required by the Federal Credit Reform Act of 1990,
as amended, this account records, for this program, the subsidy costs associated with the direct loans obligated and loan
guarantees committed in 1992 and beyond (including modifications of direct loans or loan guarantees that resulted from
obligations or commitments in any year), as well as administrative expenses of this program. The subsidy amounts are
estimated on a present value basis; the administrative expenses are estimated on a cash basis. For 2000, the allocation
of funding for administrative expenses has been adjusted
based on a completed cost allocation study undertaken to
allow SBA to more accurately reflect the portion of SBA’s
Salaries and Expenses operating budget that supports these
programs.
Section 7(a) Program.—The Section 7(a) program is SBA’s
largest credit assistance program to serve the financial needs
of small businesses. Under this program, SBA developed the
SBA LowDoc and SBA Express programs aimed at increasing
small business access to credit, especially in ‘‘new markets’’.
In addition, SBA will identify, under a New Market lending
company initiative, additional 7(a) lenders and target an estimated $300 million in loans of the requested $10.5 billion
program level to new markets. This program also includes
loans made for exporting (Export Working Capital Program)
and the DELTA and USCAIP programs.
Small Business Investment Companies (SBIC).—This program provides the debt and equity capital needed by small
businesses to start and grow. The Small Business Investment
Act, as amended, authorizes the SBA to guarantee the timely
payment of all principal and interest, as scheduled, on debentures issued by such companies. In addition, the SBA may
guarantee the performance of participating securities issued
by these companies. A program level of $1.5 billion in participating securities and $800 million in debentures is requested.
America’s Private Investment Companies (APIC).—This new
program has been included in the budget request for the
Department of Housing and Urban Development (HUD) and
requires enabling legislation. The program is intended to provide capital for the creation or relocation of significant operating businesses in low and moderate income areas. SBA will
work with HUD to implement this initiative.

1084

Federal Funds—Continued

Credit accounts—Continued
BUSINESS LOANS PROGRAM ACCOUNT—Continued

Low and Moderate Income (LMI) Initiative.—Using SBA’s
SBIC debenture program, SBA will encourage SBIC investments in businesses located in inner cities and rural areas,
or who draw at least 35 percent of their employees from
those areas. SBA will propose to provide the incentive to
make these investments by relaxing program regulations for
participating SBICs. For 2000, the estimated level for LMI
is $300 million and is included in the SBIC level of $800
million.
Microloans.—Small business capital needs of less than
$25,000 are met through SBA’s microloan direct and guarantee programs. Using established financial intermediaries, SBA
provides or guarantees very small loans to these businesses
to start and grow. A key component of this program is SBA’s
provision of technical assistance grants to microlending intermediaries, enabling firms to obtain the necessary managerial
and business development assistance in order to be successful.

Program Performance
Program performance and policy goals.—SBA has the following program performance and policy objectives to support
its first GPRA goal of increasing small business opportunities
to succeed: (1) focusing lending on ‘‘new markets’’ small businesses; (2) offering specialized financing, such as venture capital, export financing, and bonding opportunities; (3) improving methods of providing credit assistance through electronic
lending, less documentation, centralized functions, and onestop capital access points; (4) reducing costs by maintaining
a high quality portfolio through an improved liquidation process; and, (5) effectively implementing a loan asset sales program.
Performance Indicators— Appropriate finance program effectiveness assessment involves the consideration of a number
of indicators. First, effectiveness can be assessed by loanmaking activity levels—the number and dollar amount of
loans guaranteed by SBA. Second, effectiveness can be measured by the health of the loan portfolio—its currency and
default figures, and the agency’s ultimate record on loan recovery. Beyond these very tangible indicators of success are
the more difficult-to-measure indicators. These include such
things as the economic benefits that accrue to the small business, its employees, and the community in which it is located.
During the past three years SBA has focused on quantitative, measureable lending goals with particular emphasis
on underserved segments of the small business market in
each of SBA’s districts, e.g., minorities, women, and small
exporters. The SBA began this process in 1994 when it established internal performance agreements that contained twoyear lending goals. Using goal monitoring, the agency is able
to track, on a regular basis, the status of each district office’s
progress in meeting these goals.
The number and dollar volume of loans made under the
Section 7(a) loan program has increased dramatically in recent years. In 1992, SBA made or guaranteed approximately
24,000 loans totaling about $5.9 billion. In 1998, the SBA
approved over 42,000 loans totaling over $8.5 billion. The
section 504 program has also shown impressive growth. In
1992, the SBA provided about 2,000 financings totaling nearly
$560 million. By 1998, those figures had increased to 4,930
financings for $1.8 billion. Performance measures to be used
in 2000 to assess progress in achieving the above goals follow.
Section 7(a).—Due to improved performance of the loan
portfolio coupled with program management improvements,
the loan subsidy rate will decrease in 2000 to a baseline
rate of 1.16 percent. A legislative proposal to encourage more
small loans would increase this rate by 35 basis points to

THE BUDGET FOR FISCAL YEAR 2000

1.51 percent. To meet anticipated demand, the program level
is proposed to be $10.5 billion.
Section 504.—The 2000 subsidy rate reflects further improved 504 loan performance. The current pass through fee
charged to borrowers will be reduced from .729 to .600 to
maintain the baseline subsidy rate at zero percent.
Loan asset sales.—SBA plans to conduct its first asset sale
in the Spring of 1999 and establish an on-going sales program
to assist with the servicing and liquidation of its direct and
guaranteed portfolios of approximately $10 billion. These sales
will continue into 2000 and beyond and allow for the redeployment of SBA resources to other priority program areas.
Microloan Program.—Due to program improvements and
continued stable program performance, the subsidy rate for
2000 is lowered to 8.54 percent. The program level is increased to $60 million to support expanding the number of
intermediaries to 200 and the associated increased demand.
Small Business Investment Companies (SBICs).—Due to
management improvements introduced in the mid 1990s coupled with lower defaults and higher recoveries than originally
anticipated, SBA will see a lowering of the subsidy rates
for 2000. For the participating securities program, the subsidy
rate will be lowered to 1.80 percent. For the debentures program, the subsidy rate will be lowered to 0 percent, requiring
no new appropriations.
As the engine for continued economic growth, small business success remains a primary policy concern of the Clinton
Administration. Small firms represent a significant portion
of the Nation’s productive capacity, produce constant innovations, offer opportunities for the under-served, and create jobs.
Although it is difficult to attribute a causal relationship between SBA assistance and economic growth, factors that may
contribute to continued economic growth may be identified:
increased numbers and growth of small businesses, which
in turn produce increased jobs, revenues and taxes paid, and
results in economic and social dynamism.
SBA measures job creation and increased sales from Census/SBA longitudinal databases, client or trade association
reporting, contracted surveys/evaluations, and derivative statistics. Using an updated Census/SBA database on firms, SBA
will be able to measure more effectively job creation and
growth by firm size. For instance, between 1990 and 1995,
this database indicated that 76.5 percent of new jobs came
from small firms with less than 500 employees, and about
49 percent came from firms with less than 20 employees.
Startups provided about a third of the new jobs.
A Price Waterhouse analysis showed that firms with SBA
guaranteed loans had an 11 percent larger growth in revenues
and payroll than firms in the general business population
between 1989 and 1994. For firms receiving 504 loans, revenues increased 39 percent. However, given the absence of
a proper control group, the loan guarantee cannot be isolated
as the sole causative factor. The same methodological problems affect the study of Small Business Development Centers
(SBDCs) long term counseling on sales and jobs; nevertheless,
biennial impact assessments show that counseled firms have
had double the growth rate in sales and jobs, compared to
the general business population.
For the 503/504 program, the calculation for jobs created/
retained every year is based on the dollar amount of debentures sold and reported job data. A ratio of one job per
$12,855 debenture sold has been calculated. For the SBIC
program, surveys conducted by the National Venture Capital
Association and the Investment Advisory Council estimate
that each $32,500 invested results in one job. For the
microloan program, a database maintained on jobs created/
maintained by microloan recipients reflects that the overall
performance since the inception of the program is 1.6 jobs
created or retained per average $10,000 loan.

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

1085

Federal Funds—Continued

1998 actual

1999 est.

2000 est.

25.2
41.0

Other services ................................................................
Grants, subsidies, and contributions ............................

99
518

114
202

131
156

99.9

Total new obligations ................................................

617

316

287

New Markets Venture Capital Program.—SBA proposes to
establish a venture capital program in 2000 to encourage
investment in small businesses located in inner cities and
rural areas. This program will be structured to provide the
financial and other incentives needed to encourage investment
in these ‘‘new market’’ areas. A level of $100 million in new
debentures is proposed.
BUSINESS DIRECT LOAN FINANCING ACCOUNT

BUSINESS LOANS PROGRAM ACCOUNT
Program and Financing (in millions of dollars)

(Legislative proposal, not subject to PAYGO)

Identification code 73–4148–0–3–376

Program and Financing (in millions of dollars)
Identification code 73–1154–2–1–376

1998 actual

1999 est.

2000 est.

00.01
00.02

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

1998 actual

1999 est.

2000 est.

Total new obligations (object class 41.0) ................ ................... ...................

22.00
23.95

52
¥52

40.00

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

30
15

60
14

00.91
08.01
08.04

Direct Program by Activities—Subtotal (1 level)
34
Negative subsidy from loan asset sales ....................... ...................
Payment to liquidating account to purchase loan assets ............................................................................ ...................

45
10

74
1

550

08.91

Direct Program by Activities—Subtotal (1 level) ...................

560

Total new obligations ................................................

605

116

10.00

10
24

10.00

Obligations by program activity:
00.02 Guaranteed loan subsidy ............................................... ................... ...................

73.10
73.20
74.40

52
¥33
19

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

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

52
33

89.00
90.00

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

21.40
22.00
22.40
22.60
23.90
23.95
24.40

Budgetary resources available for obligation:
Unobligated balance available, start of year ...............
260
New financing authority (gross) ....................................
64
Capital transfer to general fund ................................... ...................
Redemption of debt .......................................................
¥19
Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance available, end of year .................

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 .........
67.15

271 ...................
635
152
¥271 ...................
¥30
¥36

305
605
116
¥34
¥605
¥116
271 ................... ...................

31
7

617
3

129
14

68.90
Identification code 73–1154–2–1–376

1998 actual

1999 est.

Guaranteed loan levels supportable by subsidy budget
authority:
2150 General business—7(a) ................................................ ................... ................... ...................
2150 New market venture capital .......................................... ................... ...................
100
2159

Total loan guarantee levels ...................................... ................... ...................
Guaranteed loan subsidy (in percent):
2320 General business—7(a) ................................................ ................... ...................
2320 New market venture capital .......................................... ................... ...................

2329

Weighted average subsidy rate ................................. ................... ...................
Guaranteed loan subsidy budget authority:
2330 General business—7(a) ................................................ ................... ...................
2330 New market venture capital .......................................... ................... ...................
2339

100
0.35
15.00

620

143

70.00

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

635

152

Change in unpaid obligations:
Unpaid obligations, start of year:
72.40
Obligated balance, start of year ...............................
72.95
Receivables from program account ..........................

34
9

38
16

19
19

43
34
¥23

54
605
¥621

38
116
¥102

38
16

19
19

18
33

54
23

38
621

51
102

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 ...........................
¥13
88.40
Interest received on loans ................................
¥18
88.40
Proceeds from loan asset sales ....................... ...................

¥1

¥2

¥31
¥35
¥550

¥40
¥46
¥41

88.90
88.95

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

¥31
¥7

¥617
¥3

¥129
¥14

89.00
90.00

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

26
¥8

15
4

9
¥27

1.35

72.99
73.10
73.20

37
15

74.40
74.95

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

74.99
87.00

Total unpaid obligations, end of year ..................
Total financing disbursements (gross) .........................

Total subsidy budget authority ................................. ................... ...................
Guaranteed loan subsidy outlays:
2340 General business—7(a) ................................................ ................... ...................
2340 New market venture capital .......................................... ................... ...................

23
10

2349

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

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

2000 est.

SBA is proposing two new credit program initiatives in
2000.
Section 7(a) Program.—In 2000, SBA proposes to provide
borrowers with affordable small loans and lenders with the
incentive to make more of those loans. This initiative, which
requires legislation, would simplify the terms for loans under
$150,000 by standardizing the guarantee percentage at 80
percent, the upfront fee at 2 percent, and the annual fee
at 30 basis points. The impact of this proposal is a 35 basis
point increase in the subsidy rate, requiring an additional
$37 million in subsidy budget authority for the proposed $10.5
billion program volume.

1086

THE BUDGET FOR FISCAL YEAR 2000

Federal Funds—Continued

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

Credit accounts—Continued
BUSINESS DIRECT LOAN FINANCING ACCOUNT—Continued
Status of Direct Loans (in millions of dollars)

1,155
¥180

1,151
6

556
10

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

975

1,157

566

¥150
356

¥157
176

122
182

206
1,071
¥1,258

19
1,060
¥775

304
605
¥512

74.40
74.95

¥157
176

122
182

205
192

74.99
87.00

Total unpaid obligations, end of year ..................
Total financing disbursements (gross) .........................

19
1,258

304
775

397
512

68.90
1998 actual

Identification code 73–4148–0–3–376

1999 est.

2000 est.

Position with respect to appropriations act limitation
on obligations:
1111 Limitation on direct loans ............................................. ................... ................... ...................
1131 Direct loan obligations exempt from limitation ............
10
40
60
1150

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

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

109
7
¥14
¥3

99
30
¥16
¥5

108
30
¥8
¥6

108

124

As required by the Federal Credit Reform Act of 1990,
as amended, this non-budgetary account records all cash flows
to and from the Government resulting from direct loans obligated in 1992 and beyond (including modifications of direct
loans that resulted from obligations in any year). The
amounts in this account are a means of financing and are
not included in the budget totals.
Balance Sheet (in millions of dollars)
Identification code 73–4148–0–3–376

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 (–) ...........
1499

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

1997 actual

1998 actual

1999 est.

2000 est.

310

328

319

123
–54

99
–6

78
–36

83
–56

379

421

361

421

361

346

2999

88.90
88.95

89.00
90.00

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

¥1,155
180

¥151
¥160
¥28 ...................
¥7 ...................
¥60
¥65
¥183
¥700
¥22

¥203
¥100
¥28

¥1,151
¥6

¥556
¥10

Net financing authority and financing disbursements:
Financing authority ........................................................ ................... ................... ...................
Financing disbursements ...............................................
104
¥376
¥44

346

379

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Federal sources:
88.00
Payments from program account .....................
¥167
88.00
Upward restimate .............................................
¥284
88.00
Interest on reestimate ......................................
¥25
88.25
Interest on uninvested funds ...............................
¥244
Non-Federal sources:
88.40
Fees ..................................................................
¥356
88.40
Proceeds from loan asset sales ....................... ...................
88.40
Recoveries .........................................................
¥79

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

72.99
73.10
73.20

1999

Identification code 73–4149–0–3–376

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

379

421

361

346

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

3999

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

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

4999

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

379

421

361

346

Program and Financing (in millions of dollars)
Identification code 73–4149–0–3–376

00.91
08.02
08.04

Obligations by program activity:
Default claims ...............................................................
Other Expenses ..............................................................
CPC ................................................................................

1998 actual

416
3
64

Direct Program by Activities—Subtotal (1 level)
483
Payment of downward reestimate to receipt account
588
Payment of negative subsidy to receipt account .......... ...................

1999 est.

425
15
25

Position with respect to appropriations act limitation
on commitments:
2111 Limitation on guaranteed loans made by private lenders ..............................................................................
2112 Uncommitted loan guarantee limitation .......................
2131 Guaranteed loan commitments exempt from limitation

2000 est.

465
40
100

465
605
580 ...................
15 ...................

08.91

Direct Program by Activities—Subtotal (1 level)

588

595 ...................

10.00

Total new obligations ................................................

1,071

1,060

605

21.40
22.00

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

1,463
975

1,367
1,157

1,464
566

23.90
23.95
24.40

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance available, end of year .................

2,438
¥1,071
1,367

2,524
¥1,060
1,464

2,030
¥605
1,425

2150

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

2210
2231
2251
2261

BUSINESS GUARANTEED LOAN FINANCING ACCOUNT

00.01
00.05
00.06

Status of Guaranteed Loans (in millions of dollars)

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

1998 actual

13,000
¥3,232
1,202

1999 est.

2000 est.

13,500
14,800
¥237 ...................
1,507
1,571

10,970

14,770

16,371

30,207
9,671
¥5,767

33,695
7,336
¥2,872

37,734
7,534
¥2,949

¥416

¥425

¥465

2290

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

33,695

37,734

41,854

2299

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

27,234

29,713

33,058

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 ...................................
2364
Other adjustments, net .............................................

870
416
¥209
¥195
¥48

834
425
¥212
¥213
¥700

134
465
¥282
¥217
¥100

2390

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

834

134 ...................

LIMITATIONS ON GUARANTEED LOANS
FY 1998

Limitation on guaranteed loans made by private lenders:
7(a) .........................................................................................

10,000

FY 1999

10,000

FY 2000

10,500

SMALL BUSINESS ADMINISTRATION

Federal Funds—Continued

504 ..........................................................................................
SBIC—participating securities ...............................................
SBIC—debentures ..................................................................
7(a) DELTA ..............................................................................
504 CDC DELTA ......................................................................
Microloan guarantees .............................................................

3,000
0
0
0
0
0

3,500
0
0
0
0
0

3,500
0
800
0
0
0

Total, limitations on guaranteed loans .........................

13,000

13,500

14,800

1087

BUSINESS GUARANTEED LOAN FINANCING ACCOUNT
(Legislative proposal, not subject to PAYGO)
Program and Financing (in millions of dollars)
1998 actual

Identification code 73–4149–2–3–376

1999 est.

2000 est.

00.01

Obligations by program activity:
Default claims ............................................................... ................... ...................

Total new obligations ................................................ ................... ...................

22.00
23.95
24.40

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

25
¥11
14

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

Uncommitted loan guarantee limitation:
7(a) .........................................................................................
504 ..........................................................................................
SBIC—participating securities ...............................................
SBIC—debentures ..................................................................
7(a) DELTA ..............................................................................
504 CDC DELTA ......................................................................
Microloan guarantees .............................................................

(1,469)
(1,763)
0
0
0
0
0

(237)
0
0
0
0
0
0

0
0
0
0
0
0
0

10.00

Total, uncommitted loan guarantee limitation .............

(3,232)

(237)

68.00

Guaranteed loan commitments exempt from limitation:
7(a) .........................................................................................
SBIC—participating securities ...............................................
SBIC—debentures ..................................................................
7(a) DELTA ..............................................................................
504 CDC DELTA ......................................................................
Microloan guarantees .............................................................

0
700
462
31
5
4

0
800
640
50
5
12

0
1,500
0
50
5
16

Total, guaranteed loan commitments exempt from
limitation ...................................................................

1,202

1,507

1,571

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

10,970

14,770

16,371

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

Change in unpaid obligations:
Total new obligations ....................................................
Total financing disbursements (gross) .........................
Unpaid obligations, end of year: Obligated balance,
end of year ................................................................
87.00 Total financing disbursements (gross) .........................
73.10
73.20
74.40

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

11
¥10

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

1
10

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
88.00
Payments from program account ......................... ................... ...................
88.40
Fees ....................................................................... ................... ...................

¥33
8

88.90

¥25

89.00
90.00

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

Status of Guaranteed Loans (in millions of dollars)
1998 actual

Identification code 73–4149–2–3–376

Balance Sheet (in millions of dollars)
Identification code 73–4149–0–3–376

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............
Investments in US securities:
1106
Receivables, net .............................
1107
Advances and prepayments ...........
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

Net present value of assets related
to defaulted guaranteed loans
Other Federal assets: Other assets ........

1997 actual

1998 actual

1,291

1,209

1,326

168
..................

221
54

173
48

176
36

870
46
–340

834
38
–215

1999 est.

134
35
–112

2000 est.

..................
31
–78

657
245

57
242

–47
238

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

2,035

2,386

1,846

1,729

2,035

2,386

1,846

1,729

2999

1999

2150

2210
2231
2251
2261
2290

2299
576
..................

1901

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

2,035

2,386

1,846

1,729

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

3999

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

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

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

2,035

2,386

1,846

1,729

2000 est.

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

100

................... ................... ...................
................... ...................
63
................... ...................
¥6
................... ...................

¥10

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

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

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

................... ...................
...................
10
...................
¥3
...................
¥1
................... ...................

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

4999

1999 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 ................... ...................
100

2390

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

Balance Sheet (in millions of dollars)
Identification code 73–4149–2–3–376

1997 actual

1998 actual

1999 est.

2000 est.

ASSETS:
Federal assets:
1101
Fund balances with Treasury .............

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

1088

THE BUDGET FOR FISCAL YEAR 2000

Federal Funds—Continued

87.00

Credit accounts—Continued
BUSINESS GUARANTEED LOAN FINANCING ACCOUNT—Continued

1502
1505
1599
1901

375

348

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

–550

–41

–142
–23
–55
–9

–138
–17
–46
–7

–135
–16
–40
–5

–42

–35

–33

–82
–26

–4
–21

–3
–19

–42

–41

–39

–37
–1
–42

–35
–1
–40

–33
–1
–39

Investments in US securities:
Receivables, net .............................
Advances and prepayments ...........
Net value of assets related to post–
1991 acquired defaulted guaranteed loans receivable:
Defaulted guaranteed loans receivable, gross ......................................
Interest receivable ..............................
Allowance for subsidy cost (–) ...........

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

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

6
..................
..................

Net present value of assets related
to defaulted guaranteed loans
Other Federal assets: Other assets ........

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

6
..................

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

–38

–21

–24

88.90

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

–539

–956

–428

89.00
90.00

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

..................
–206

–756
–581

–251
–80

Identification code 73–4149–2–3–376

1501

333

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
88.00
Transfer from financing account 73–4148 .....
Loan repayments:
Non-Federal sources:
88.40
Financing programs-principal .................
88.40
Investment programs-principal ...............
88.40
Interest Income-Business ........................
88.40
Interest income-Investment .....................
Interest income:
88.40
Net changes in Receivables from the Public Business .............................................
88.40
Net changes in Receivables from the public-Investment ..........................................
88.40
Sale of acquired collateral-business ...........
88.40
Principal collections on judgements,
notes,and other receivables-Business ....
88.40
Principal collections on judgements and
other receivables-Investment ..................
88.40
Examination & License fee income .............
88.40
collection on FFB loans ...............................
88.40
Other Income-both Business and Investment ........................................................

Balance Sheet (in millions of dollars)—Continued

1106
1107

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

1999

Total assets ........................................
LIABILITIES:
2204 Non-Federal liabilities: Liabilities for
loan guarantees ..................................
2999

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

1997 actual

1998 actual

1999 est.

2000 est.

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

3999

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

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

4999

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

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

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

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

Obligations by program activity:
00.01 Interest Expense to Treasury .........................................
00.02 Care and Preservation of collateral & recoverable
expenses ....................................................................
00.03 Msc. program expenses related to Business program
assistance .................................................................
00.04 Msc progam expenses related to Investment company
assistance .................................................................
00.05 Guaranteed loan default claims ....................................

1998 actual

1999 est.

2000 est.

757

62
¥155

41
¥22

¥550
¥54

¥59
¥20

25 ................... ...................
76
61
41
218

Budgetary resources available for obligation:
Unobligated balance available, start of year ...............
New budget authority (gross) ........................................
Unobligated balance transferred to other accounts
Capital transfer to general fund ...................................
Redemption of debt .......................................................

368
273 ...................
539
200
177
¥7 ................... ...................
¥367
¥273 ...................
¥42 ................... ...................

23.90
23.95
24.40

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance available, end of year .................

491
200
177
¥218
¥200
¥177
273 ................... ...................

New budget authority (gross), detail:
Spending authority from offsetting collections:
68.00
Offsetting collections (cash) .....................................
539
68.27
Capital transfer to general fund .............................. ...................
68.47
Portion applied to debt reduction ............................. ...................
539

200

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

757

60 ...................

Small Business Investment Company, Direct
Loans
Section 503 Development Company, Direct Loans
Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
Repayments:
1251
Repayments and prepayments ..................................
1252
Proceeds from loan asset sales to the public or
discounted .............................................................

275

233

193

¥23

¥18

¥15

¥19

¥22

¥24

233

193

154

21.40
22.00
22.21
22.40
22.60

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

Business Loan Fund, Direct Loans
Cumulative balance of direct loans outstanding:
1210 Outstanding, start of year .............................................
973
1232 Disbursements: Purchase of loans assets from the
public .........................................................................
55
1251 Repayments: Repayments and prepayments .................
¥171
1262 Adjustments: Discount on loan asset sales to the
public or discounted ................................................. ...................
1263 Write-offs for default: Direct loans ...............................
¥100
1290

Total new obligations ................................................

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

1999 est.

16 ................... ...................

10.00

68.90

1998 actual

177

956
¥716
¥40

428
¥212
¥39

200

177

1290

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

Status of Guaranteed Loans (in millions of dollars)
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 .............................................

1998 actual

1999 est.

2000 est.

5,005
1
¥1,116

3,804
1
¥630

3,106
1
¥532

¥76
¥10

¥61
¥8

¥41
¥7

2290

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

3,804

3,106

2,527

2299

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

3,302

2,702

2,198

1,390
76

1,466
61

1,527
41

72.40

86.97
86.98

621
218
¥333

506
200
¥375

331
177
¥348

506

331

160

Outlays (gross), detail:
Outlays from new permanent authority .........................
333
Outlays from permanent balances ................................ ...................

139
236

136
212

SMALL BUSINESS ADMINISTRATION
2390

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

1,466

1,527

1,568

As required by the Federal Credit Reform Act of 1990,
as amended, this account records, for this program, all cash
flows to and from the Government resulting from direct loans
obligated and loan guarantees committed prior to 1992. This
account is shown on a cash basis. All new activity in this
program in 1992 and beyond (including modifications of direct
loans or loan guarantees that resulted from obligations or
commitments in any year) is recorded in corresponding program and financing accounts.
Statement of Operations (in millions of dollars)
1997 actual

1998 actual

0101
0102

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

191
–134

102
–99

220
–160

110
–120

0109

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

–10

Identification code 73–4154–0–3–376

1999 est.

2000 est.

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 (–) ....................

1997 actual

1998 actual

794

787

866

1999 est.

2000 est.

214
7

283
6

286
5

186
5

780
7

480
8

441
7

the disaster loan program, and said sums shall be transferred to
and merged with appropriations for the Office of Inspector General¿.
(Departments of Commerce, Justice, and State, the Judiciary, and
Related Agencies Appropriations Act, 1999, as included in Public Law
105–277, section 101(b).)
For an additional amount for the cost of direct loans, ø$71,000,000¿
$158,000,000, to remain available until expended to subsidize additional gross obligations for the principal amount of direct loans: Provided, That such costs, including the cost of modifying such loans,
shall be as defined in section 502 of the Congressional Budget Act
of 1974; and for administrative expenses to carry out the disaster
loan program, an additional ø$30,000,000¿ $75,000,000, to remain
available until expended, which may be transferred to and merged
with appropriations for ø‘‘¿Salaries and Expensesø’’¿: Provided further, That the entire amount is designated by the Congress as an
emergency requirement pursuant to section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That the entire amount shall be available only
to the extent that an official budget request, that includes designation
of the entire amount of the request as an emergency requirement
as defined in the Balanced Budget and Emergency Deficit Control
Act of 1985, as amended, is transmitted by the President to the
Congress. (Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999, as included in Public Law 105–277, Division
B, Title IV, chapter 2.)

466

745
7

General Fund Credit Receipt Accounts (in millions of dollars)
Identification code 73–1152–0–1–453

0101

990

253

–626

–56

–36

538
37

364
29

197
23

118
23

Total assets ........................................
LIABILITIES:
Federal liabilities:
2101
Accounts payable ................................
2102
Interest payable ..................................
2103
Debt to the FFB ..................................
Non-Federal liabilities:
2201
Accounts payable ................................
2204
Liabilities for loan guarantees ...........
2207
Other Liabilities ..................................

2,377

1,957

1,825

2999
4999

1901

Value of assets related to direct
loans ..........................................
Other Federal assets: Other assets ........

1999

1,694
96
325

1,325
69
233

1,166
96
227

1,030
96
227

15
72
168

14
31
285

15
73
248

15
73
109

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

2,377

1,957

1,825

1,550

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

2,370

1,957

1,825

1,550

Object Classification (in millions of dollars)
Identification code 73–4154–0–3–376

1998 actual

1999 est.

2000 est.

236 ...................

1998 actual

1999 est.

2000 est.

00.01
00.05
00.06
00.09

Obligations by program activity:
Direct loan subsidy ........................................................
Upward reestimate of direct loan subsidy ....................
Interest on direct loan subsidy .....................................
Administrative expense ..................................................

150
51
10
156

182
49
6 ...................
3 ...................
116
86

10.00

Total new obligations ................................................

367

307

21.40
22.00
22.10

189
234

81 ...................
206
125

1,550

1699

1999 est.

Program and Financing (in millions of dollars)

154

–787

1998 actual

Disaster loan program, downward reestimates of subsidies ......................................................................... ...................

Identification code 73–1152–0–1–453

1,325

1089

Federal Funds—Continued

23.90
23.95
24.40

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance available, end of year .................

135

449
307
135
¥367
¥307
¥135
81 ................... ...................

New budget authority (gross), detail:
Current:
40.00
Appropriation .............................................................
173
40.15
Appropriation (contingency) ...................................... ...................
40.60
Contingent emergency appropriation not available
for obligations ....................................................... ...................
42.00
Transferred from USDA .............................................. ...................

192
101

125
233

¥101
¥233
5 ...................

2000 est.

42.0
43.0

Insurance claims and indemnities ................................
Interest and dividends ...................................................

157
61

140
60

118
59

99.9

Total new obligations ................................................

218

200

177

43.00

173

60.05

Appropriation (total) .............................................
Permanent:
Appropriation (indefinite) ..........................................

70.00

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

234

206

125

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

71
367
¥354
¥26

59
307
¥263
¥20

83
135
¥158
¥10

197

125

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

72.40

DISASTER LOANS PROGRAM ACCOUNT
For the cost of direct loans authorized by section 7(b) of the Small
Business Act, as amended, ø$76,329,000¿ $39,400,000, to remain
available until expended: Provided, That such costs, including the
cost of modifying such loans, shall be as defined in section 502 of
the Congressional Budget Act of 1974, as amended.
In addition, for administrative expenses to carry out the direct
loan program, ø$116,000,000¿ $86,000,000, which may be transferred
to and merged with appropriations for Salaries and Expensesø, including $500,000 for the Office of Inspector General of the Small
Business Administration for audits and reviews of disaster loans and

86.90
86.93

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

170
184

152
111

96
62

87.00

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

354

263

158

1090

THE BUDGET FOR FISCAL YEAR 2000

Federal Funds—Continued

Credit accounts—Continued
DISASTER LOANS PROGRAM ACCOUNT—Continued
Program and Financing (in millions of dollars)—Continued
Identification code 73–1152–0–1–453

89.00
90.00

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

1998 actual

234
354

1999 est.

206
263

2000 est.

125
158

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

1998 actual

1999 est.

2000 est.

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

639

358

176

1159

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

639

358

176

23.46

22.36

22.20

1329

23.46

22.36

22.20

211

Weighted average subsidy rate .................................
Direct loan subsidy budget authority:
1330 Disaster subsidy budget authority ................................

1339

Total subsidy budget authority .................................
Direct loan subsidy outlays:
Disaster subsidy outlays ................................................

211

1340

198

147

1349

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

198

147

3510
3590

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

156
156

116
116

86
86

As required by the Federal Credit Reform Act of 1990,
as amended, this account records, for loans made pursuant
to section 7(b) of the Small Business Act, as amended, the
subsidy costs associated with the direct loans obligated in
1992 and beyond (including modifications of direct loans or
loan guarantees that resulted from obligations or commitments in any year), as well as administrative expenses of
this program. The subsidy amounts are estimated on a
present value basis; the administrative expenses are estimated on a cash basis.
Disaster loans made pursuant to Section 7(b) of the Small
Business Act are the primary form of Federal assistance for
non-farm, private sector disaster losses. For this reason, the
program is the only form of SBA assistance not limited to
small businesses. Through this program, SBA helps homeowners, renters, businesses of all sizes, and non-profit organizations pay for the cost of rebuilding. Pursuant to the Small
Business Act, the government subsidizes borrowers who have
incurred uninsured losses or economic injury as the result
of a natural disaster. These loans are also a critical source
of economic stimulation in disaster-ravaged communities,
helping to spur employment and stabilize the local tax base.
Eligibility is based on financial criteria. 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.
1999 Budget Authority.—The 1999 Omnibus Appropriations
Act provided $76.0 million for disaster loan subsidy and
$116.0 million for administrative support. The Act also provided $71.0 million for disaster loan subsidy and $30.0 million
for administrative support as contingent emergency appropriations. These contingent amounts are available for release
by the President at the request of SBA. The Budget anticipates the need for these contingent emergency appropriations
by including an allowance estimating their use.
2000 Budget Authority.—For 2000, SBA requests funding
to support the 10-year average loan volume, $934.0 million,
excluding the effects of the Northridge earthquake. Due to
the unpredictable nature of natural disasters, the program

has been principally financed through emergency funding in
prior years. As such, SBA proposes that a portion of the
appropriation requirement for loan subsidy and administrative expenses be funded as regular appropriations against
the discretionary funding cap. SBA requests the remaining
funding (approximately 65 percent) as contingent emergency
funding, consistent with past funding practices. For loan subsidy expenses, $39.4 million is requested as regular discretionary appropriations and $158.0 million is requested as contingent emergency appropriations. For administrative expenses, $86.0 million is requested as regular discretionary
appropriations and $75.0 million is requested as contingent
emergency appropriations.
To increase preparedness and reduce the costs of future
natural disasters, SBA will propose legislation to create a
Pre-Disaster Mitigation Pilot Loan Program. The program will
use up to $15 million of the requested disaster loan program
authority to assist non-farm small businesses located in communities participating in FEMA’s ‘‘Project Impact’’ program.
They will be provided low-interest, long-term disaster loans
up to $50,000 to finance protective devices or mitigation measures such as retaining walls. This pilot program would not
require the appropriation of additional funds.

Program Performance
Over the 45-year history of the program, SBA has helped
more than 1.4 million disaster victims by providing more than
$26.7 billion in disaster assistance. Over 90 percent has been
to borrowers that otherwise would not have been able to
rebuild. During 1998 alone, SBA approved 30,000 disaster
loans, exceeding $728 million to homeowners, renters, and
businesses.
Program Performance and Policy Goals.—The SBA program
performance and policy goals are to: 1) provide disaster assistance to victims in the most effective and cost efficient manner;
2) deliver an effective program that achieves its public policy
objectives; 3) provide customer-focused assistance that satisfactorily accommodates the needs of all disaster victims; 4)
simplify and streamline the loan-making process by re-engineering forms, procedures and processes; and, 5) effectively
implement the proposed asset sales program.
SBA will coordinate with FEMA and other Federal, state
and local officials as appropriate to ensure that SBA’s field
presence is established in the disaster area within 3 days
of a disaster, for 98 percent of declared events. SBA will
recruit, employ and train sufficient staff to increase the number of disaster loan applications processed within 21 days
of receipt from 77 percent in 1998 to 80 percent in 2000.
In cooperation with SBA’s regional/district offices, the Agency
will meet with local bankers to emphasize bridge lending
to businesses.
As part of our efforts to enhance the efficiency of disaster
assistance, SBA will develop a standardized loan officer training curriculum, conduct quality reviews in each Disaster Area
Office, begin the process of automating the disaster loan making process, and review the current processes for required
policy, organizational, and procedural changes. SBA and
FEMA will continue efforts to develop a joint loss inspection
report to be used in a pilot test, evaluate the results, and
make recommendations on their findings.
Based on efforts to improve commercial and home loan servicing, a number of goals have been set, subject to the availability of staff. To ameliorate commercial loan servicing, SBA
intends to improve the currency rate to 96 percent on all
SBA serviced loans, increase loan receipts to 16 percent on
all SBA serviced loans, review 100 percent of all delinquent
accounts each week, and reduce turn around times on all
servicing actions to 2 days. For disaster home servicing, SBA
intends to improve the currency rate to 95 percent, reduce
the delinquency rate to 2 percent, increase loan receipts to

SMALL BUSINESS ADMINISTRATION

16.2 percent, and review 100 percent of all delinquent accounts each week. To improve loan liquidation, SBA will increase the number of cases closed each month to 360 and
increase average collections on loans in liquidation by 20 percent.

88.90
88.95

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

¥1,333
58

¥922
¥11

¥1,108
46

89.00
90.00

1,917
195

632
593

172
100

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

1998 actual

Status of Direct Loans (in millions of dollars)
1999 est.

2000 est.
1998 actual

Identification code 73–4150–0–3–453

25.2
41.0

Other services ................................................................
Grants, subsidies, and contributions ............................

156
211

116
191

86
49

99.9

Total new obligations ................................................

367

307

135

DISASTER DIRECT LOAN FINANCING ACCOUNT

Obligations by program activity:
00.01 Direct loans ....................................................................
639
00.02 Interest on Treasury borrowing ......................................
575
00.10 Asset sale payment to liquidating account .................. ...................
00.91
08.02
08.03

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

639

1999 est.

814
363
30

2000 est.

221
388
260

Direct Program by Activities—Subtotal (1 level)
Payment of downward reestimate to receipt account
Payment of interest on downward reestimates to receipt account .............................................................

1,214
190

1,207
869
195 ...................

41 ...................

08.91

Direct Program by Activities—Subtotal (1 level)

254

236 ...................

10.00

Total new obligations ................................................

1,468

1,443

869

21.40
22.00
22.60

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

4,003
3,192
¥1,771

3,956
1,565
¥1,117

2,961
1,234
¥1,164

23.90
23.95
24.40

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance available, end of year .................

5,424
¥1,468
3,956

4,404
¥1,443
2,961

3,031
¥869
2,162

1,917

632

172

1,333
¥58

922
11

1,108
¥46

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

1,275

933

1,062

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

3,192

1,565

1,234

2000 est.

814

1290

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

6,148

979

510

260

¥335

¥362

¥30
¥101

¥260
¥110

6,148

5,605

221

5,605

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
5,630
Disbursements:
1231
Direct loan disbursements ........................................
595
1233
Purchase of loans assets from a liquidating account ..................................................................... ...................
Repayments:
1251
Repayments and prepayments ..................................
¥521
1252
Proceeds from loan asset sales to the public or
discounted ............................................................. ...................
1264 Write-offs for default: Other adjustments, net .............
¥99
1210

Program and Financing (in millions of dollars)
1998 actual

1999 est.

Identification code 73–4150–0–3–453

1091

Federal Funds—Continued

6,186

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

990
39

907
50

1,089
1,468
¥1,528

1,029
1,443
¥1,515

957
869
¥1,208

990
39

907
50

614
4

1,029
1,528

957
1,515

618
1,208

Offsets:
Against gross financing authority and financing disbursements:
Offsetting collections (cash) from:
Federal sources:
88.00
Payments from program account .....................
¥138
¥138
¥72
88.00
Payments from program account—reestimates ...........................................................
¥60
¥9 ...................
Non-Federal sources:
88.40
Repayments of principal, net ...........................
¥521
¥335
¥362
88.40
Collection of misc. receivables ........................
¥409 ................... ...................
88.40
Interest received on loans ................................
¥205
¥410
¥414
88.40
Proceeds from loan sales ................................. ...................
¥30
¥260

1998 actual

146
1,984

39
5,247

50
5,357

4
5,469

7,891
–192

5,605
–973

6,142
–1,248

6,171
–1,254

7,699

4,632

4,894

4,917

1999
992
97

1997 actual

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

9,829

9,918

10,301

10,390

9,683

9,918

10,301

10,390

2999

9,683

9,918

10,301

10,390

146

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

Identification code 73–4150–0–3–453

ASSETS:
Federal assets:
Investments in US securities:
Receivables, net:
1106
Program account ........................
1106
Interest/Accounts Receivables ...
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 ...........................

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

1999 est.

2000 est.

3999

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

146

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

4999

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

9,829

9,918

10,301

10,390

DISASTER LOAN FUND LIQUIDATING ACCOUNT
Program and Financing (in millions of dollars)
Identification code 73–4153–0–3–453

1998 actual

1999 est.

2000 est.

01.01
01.03

Obligations by program activity:
Interest expense to Treasury ..........................................
Other expenses ...............................................................

59
8

47
6

21
6

10.00

Total new obligations ................................................

1092

THE BUDGET FOR FISCAL YEAR 2000

Federal Funds—Continued

Credit accounts—Continued

Balance Sheet (in millions of dollars)

DISASTER LOAN FUND LIQUIDATING ACCOUNT—Continued

Identification code 73–4153–0–3–453

Program and Financing (in millions of dollars)—Continued

ASSETS:
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 (–) ....................

1997 actual

1998 actual

1999 est.

2000 est.

290
75

256
64

235
39

1,457

1,254

1,041

633

–107

–114

–92

–73

1,350

1,140

949

560

4
..................

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

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

1101

1998 actual

Identification code 73–4153–0–3–453

Budgetary resources available for obligation:
Unobligated balance available, start of year ...............
New budget authority from offsetting collections
(gross) .......................................................................
22.40 Capital transfer to general fund ...................................
21.40
22.00

23.90
23.95
24.40

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance available, end of year .................

68.00

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

1999 est.

221

2000 est.

196 ...................

260
¥218

241
¥384

416
¥389

263
53
27
¥67
¥53
¥27
196 ................... ...................

260

241

416

1699

1801
1803

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

1999

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

60
53
¥59

54
27
¥33

1,719

1,461

1,224

835

68
1,651

59
1,402

46
1,102

21
1,102

2999

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

1,719

1,461

1,148

1,123

4999

70
67
¥75

Total assets ........................................
LIABILITIES:
2102 Federal liabilities: Interest payable ........
2201 Non-Federal liabilities: Accounts payable

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

1,719

1,461

1,148

1,123

Object Classification (in millions of dollars)

86.97
86.98

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

67
8

53
6

27
6

Identification code 73–4153–0–3–453

87.00

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

25.2
43.0

Other services ................................................................
Interest and dividends ...................................................

8
59

6
47

6
21

99.9

Total new obligations ................................................

Offsets:
Against gross budget authority and outlays:
Offsetting collections (cash) from:
Non-Federal sources:
88.40
Loan repayments ..............................................
¥187
88.40
Interest income .................................................
¥64
88.40
Other income ....................................................
¥9
88.40
Proceeds from loan asset sales ....................... ...................

¥160
¥46
¥5
¥30

¥132
¥21
¥3
¥260

88.90

¥241

¥416

89.00
90.00

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

¥260

Net budget authority and outlays:
Budget authority ............................................................ ................... ................... ...................
Outlays ...........................................................................
¥185
¥182
¥383

Status of Direct Loans (in millions of dollars)
1998 actual

Identification code 73–4153–0–3–453

1999 est.

Cumulative balance of direct loans outstanding:
Outstanding, start of year .............................................
1,457
Repayments:
1251
Repayments and prepayments ..................................
¥187
1252
Proceeds from loan asset sales to the public or
discounted ............................................................. ...................
1263 Write-offs for default: Direct loans ...............................
¥16

2000 est.

1998 actual

1999 est.

2000 est.

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

1998 actual

1999 est.

2000 est.

00.01

Obligations by program activity:
Direct program ...............................................................

10.00

Total obligations (object class 42.0) ........................

Budgetary resources available for obligation:
Unobligated balance available, start of year:
21.40
Unobligated balance available, start of year ...........
13
21.40
Unobligated balance available, start of year ........... ...................

12 ...................
2 ...................

1290

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

¥160

¥260
¥18

1,041

631

As required by the Federal Credit Reform Act of 1990,
as amended, this account records, for this program, all cash
flows to and from the Government resulting from direct loans
obligated prior to 1992. This account is shown on a cash
basis. All new activity in this program in 1992 and beyond
(including modifications of direct loans or loan guarantees
that resulted from obligations or commitments in any year)
is recorded in corresponding program and financing accounts.
Statement of Operations (in millions of dollars)
Identification code 73–4153–0–3–453

1997 actual

1998 actual

14 ...................
¥11 ...................

23.90
23.95
24.40
24.40

Total budgetary resources available for obligation
Total new obligations ....................................................
Unobligated balance available, end of year:
Unobligated balance available, end of year .............
Unobligated balance available, end of year .............
Total unobligated balance, end of year ....................

73.10
73.20

Change in unpaid obligations:
Total new obligations ....................................................
Total outlays (gross) ......................................................

1
¥1

3
1
¥3 ...................

86.98

Outlays (gross), detail:
Outlays from permanent balances ................................

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

¥132

¥30
¥23

1,254

1,041

Total unobligated balance, start of year ..................
13
Capital transfer to general fund ................................... ...................

89.00
90.00

1,254

21.99
22.40

24.99

1210

1999 est.

2000 est.

0101
0102

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

72
–78

64
–93

52
–53

103
–90

0109

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

–6

–29

–1

13
¥1

3 ...................
¥3
¥1

12 ................... ...................
2 ................... ...................
14 ................... ...................

Status of Guaranteed Loans (in millions of dollars)

Identification code 73–4147–0–3–376

2210

Cumulative balance of guaranteed loans outstanding:
Outstanding, start of year .............................................

1998 actual

1999 est.

2000 est.

SMALL BUSINESS ADMINISTRATION

2261
2264
2290

Adjustments:
Terminations for default that result in loans receivable ....................................................................... ................... ................... ...................
Other adjustments, net .............................................
¥19
¥11
¥11
Outstanding, end of year ..........................................

1701

Net value of assets related to pre–1992
direct loans receivable and acquired
defaulted guaranteed loans receivable: Defaulted guaranteed loans,
gross ...................................................

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

18
..................

22
..................

21
..................

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

..................
..................
7

..................
..................
6

35
1999

2299

1093

Federal Funds—Continued

Addendum:
Cumulative balance of defaulted guaranteed loans
that result in loans receivable:
2310
Outstanding, start of year ........................................
46
45
45
2331
Disbursements for guaranteed loan claims ............. ................... ................... ...................
2351
Repayments of loans receivable ...............................
¥1 ...................
¥1

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

Total liabilities ....................................
NET POSITION:
3100 Appropriated capital ................................
3300 Cumulative results of operations ............
3600 Other ........................................................
3999

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

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

4999

2390

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

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.

ADMINISTRATIVE PROVISION—SMALL BUSINESS ADMINISTRATION
Not to exceed 5 percent of any appropriation made available for
the current fiscal year for the Small Business Administration in this
Act may be transferred between such appropriations, but no such
appropriation shall be increased by more than 10 percent by any
such transfers: Provided, That any transfer pursuant to this paragraph shall be treated as a reprogramming of funds under section
605 of this Act and shall not be available for obligation or expenditure
except in compliance with the procedures set forth in that section.
(Departments of Commerce, Justice, and State, the Judiciary, and
Related Agencies Appropriations Act, 1999, as included in Public Law
105–277, section 101(b).)

Statement of Operations (in millions of dollars)
Identification code 73–4147–0–3–376

1997 actual

1998 actual

1999 est.

2000 est.

0101
0102

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

2
1

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

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

0109

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

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

GENERAL FUND RECEIPT ACCOUNTS

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

ASSETS:
1101 Federal assets: Fund balances with
Treasury ...............................................
1206 Non-Federal assets: Receivables, net .....

1998 actual

1999 est.

2000 est.

1997 actual

1998 actual

13
9

14
9

1999 est.

11
9

2000 est.

11
9

Offsetting receipts from the public:
73–272130 Disaster loan program, downward reestimates
of subsidies ........................................................................ ...................
73–272230 Business
loan
program,
Downward
resstimates of subsidies ....................................................
843

236 ...................
605

General Fund Offsetting receipts from the public .....................

Balance Sheet (in millions of dollars)
Identification code 73–4147–0–3–376

(in millions of dollars)

841

843