SMALL BUSINESS ADMINISTRATION
The President’s 2009 Budget will:
-
Provide $28 billion in loan guarantees for small businesses;
-
Target $85 billion in Federal contracting dollars
for small businesses;
-
Focus and strengthen product delivery to less-served
markets;
-
Support disaster recovery through an improved disaster
loan program; and
-
Make critical investments in the Agency’s human
capital improvements and technology systems.
Promoting Small Business Development and Entrepreneurship
-
Enhances the Section 7(a)
Guaranteed Loan Program. $17.5 billion in guaranteed loans
for small businesses’ working capital and other business expenses,
a 29-percent increase over 2007 lending. The Small Business Administration
(SBA) will continue to focus its attention on providing assistance to underserved markets.
-
Expands the Section 504 Guaranteed
Loan Program. $7.5 billion in guaranteed debentures that
allow Certified Development Companies to support infrastructure investments,
a 19-percent increase over 2007 lending.
-
Supports contracting assistance.
Improves small business access to Federal prime and sub-contracting
opportunities, including automating SBA’s processes and systematically
reviewing small business size standards.
Improving Disaster Assistance
-
Supports the Disaster Loan
Program. $1.1 billion in 2009 direct loans, the normalized
10-year average loan volume, as well as program improvements initiated
in the aftermath of the 2005 Gulf Coast hurricanes, including:
-
An electronic application capability for disaster
victims, which will be operational in Summer 2008;
-
A re-engineered loan processing and approval system
that has shortened the interval between loan application and disbursement;
and
-
A recently completed Disaster Response Plan to ensure
SBA is better prepared to respond to catastrophic events in the future.
Investing in SBA’s Workforce and Technology Systems
Major Savings and Reforms
-
Operates SBA’s Microloan program on a zero-subsidy
cost basis, and eliminates non-credit technical assistance that is widely available through other
SBA programs. As currently structured, the program is too expensive, costing
the taxpayer 88 cents for every dollar loaned.
Since 2001, the Small Business Administration has:
-
Provided $114 billion in guaranteed loans to small
businesses through two key programs that promote entrepreneurship.
-
Provided $15 billion in direct loans to homeowners,
renters, and businesses that were victims of disasters.
-
Facilitated greater access for small businesses to
compete for Federal contracts, reaching nearly $397 billion of Federal
contracts through 2006.
-
Assisted America’s small businesses in a manner
consistent with strengthening competition in free markets.
Small Business Administration
(Dollar amounts in millions)
|
2007 Actual |
Estimate |
2008 |
2009 |
|
|
|
|
Spending |
|
|
|
Discretionary
Budget Authority: |
|
|
|
Salaries and Expenses |
322 |
345 |
328 |
Business Loans
Administration |
121 |
137 |
138 |
Disaster Loans |
113 |
— |
174 |
Office of the
Inspector General |
14 |
15 |
16 |
Surety Bond Guarantees
Revolving Fund |
3 |
3 |
2 |
Unrequested projects |
— |
69 |
— |
504 Negative Subsidy
receipts |
— |
— |
−1 |
Total, Discretionary
budget authority |
573 |
569 |
657 |
|
|
|
|
Total, Discretionary
outlays |
1,272 |
878 |
835 |
|
|
|
|
Total, Mandatory
outlays |
−97 |
−348 |
−10 |
|
|
|
|
Total, Outlays |
1,175 |
530 |
825 |
|
|
|
|
Credit activity |
|
|
|
Direct Loan Disbursements: |
|
|
|
Direct Disaster
Loans |
3,288 |
887 |
738 |
Direct Business
Loans |
16 |
19 |
22 |
Total, Direct
loan disbursements |
3,304 |
906 |
760 |
|
|
|
|
Guaranteed Loan
Disbursements: |
|
|
|
Guranteed Business
Loans |
18,572 |
20,915 |
22,803 |
|
|
|
|
|
Number of Programs |
|
2009 Savings |
Major Savings, Discretionary |
|
|
|
Reductions |
1 |
|
−17 |
|
|
|
|
|