Week 4 – Assignment 1: Examine Executive Visioning and Week 5 - Assignment: Assess Leadership Challenges

Small Business Administration (SBA)

Funding: Overview and Recent Trends

Robert Jay Dilger

Senior Specialist in American National Government

February 16, 2018

Congressional Research Service

7-5700

www.crs.gov

R43846

Small Business Administration (SBA) Funding: Overview and Recent Trends

Congressional Research Service

Summary This report examines the Small Business Administration’s (SBA’s) appropriations (new budget

authority, minus rescissions and sequestration) over time, focusing on developments and trends

since FY2000. It also provides total available funding (which includes carryover from the prior

fiscal year, carryover into the next fiscal year, account transfers, rescissions, and sequestration)

and, for entrepreneurial development noncredit programs, actual and anticipated expenditures for

comparative purposes.

SBA appropriations, as a whole, have varied significantly from year to year since FY2000 and

across all three of the agency’s major spending categories: disaster assistance, business loan credit

subsidies, and “other programs,” a category that includes salaries and expenses, business loan

administration, the Office of Inspector General, the Office of Advocacy, and entrepreneurial

development programs. Overall, the SBA’s appropriations have ranged from a high of

$2.545 billion in FY2018 to a low of $571.8 million in FY2007. Much of this volatility is due to

significant variation in appropriations for disaster assistance, which ranged from a high of

$1.7 billion in FY2006 to a low of $0 in FY2009. This variation can be attributed primarily to

supplemental appropriations provided to address disaster needs arising from the impact of major

hurricanes, such as Hurricanes Katrina and Sandy, and more recently, Hurricanes Harvey, Irma,

and Maria.

The SBA’s appropriations for business loan credit subsidies have also varied since FY2000,

ranging from a high of $319.7 million in FY2013 ($337.3 million before sequestration and

rescission) to a low of $1.3 million in FY2006 and FY2007. This variation is due to the impact of

changing economic conditions on the SBA’s guaranteed loan portfolios. During good economic

times, revenue from SBA fees and collateral liquidation is typically sufficient to cover the costs of

purchasing guaranteed loans that have defaulted. During and immediately following recessions,

however, that revenue is typically insufficient to cover the costs of purchasing guaranteed loans

that have defaulted.

The SBA’s appropriations for other programs, as a collective, have also varied since FY2000,

ranging from a high of $1.6253 billion in FY2010 to a low of $455.6 million in FY2007. This

variation is primarily due to congressional response to changing economic conditions. For

example, Congress approved significant, temporary increases in appropriations for the SBA’s

other programs spending category in FY2009 and FY2010. Overall, since FY2000, appropriations

for other programs have increased at a pace that exceeds inflation. This report provides

appropriations for all five major components of the other programs spending category, including

the SBA’s entrepreneurial development programs.

The SBA’s appropriations for FY1954 through FY1999 are provided in the Appendix.

Small Business Administration (SBA) Funding: Overview and Recent Trends

Congressional Research Service

Contents

Introduction ..................................................................................................................................... 1

SBA Funding Trends: FY2000-FY2019 .......................................................................................... 2

SBA Funding Within the Other Programs Category ....................................................................... 5

Salaries and Expenses ............................................................................................................... 5 Business Loan Administration .................................................................................................. 9 Office of Inspector General ...................................................................................................... 11 Office of Advocacy ................................................................................................................. 13 Entrepreneurial Development Noncredit Programs ................................................................ 15

Small Business Development Centers .............................................................................. 16 Microloan Technical Assistance Program ......................................................................... 18 Women Business Centers .................................................................................................. 20 SCORE .............................................................................................................................. 22 Program for Investment in Microentrepreneurs ................................................................ 25 Veterans Programs ............................................................................................................ 27 7(j) Technical Assistance Program .................................................................................... 31 Native American Outreach Program ................................................................................. 33 National Women’s Business Council ................................................................................ 35 HUBZone Administration ................................................................................................. 37 The Entrepreneurial Development Initiative (Clusters) .................................................... 39 Entrepreneurship Education Initiative .............................................................................. 41 Growth Accelerator Initiative ........................................................................................... 42

Tables

Table 1. Small Business Administration, FY2000-FY2019 ............................................................ 3

Table 2. Salaries and Expenses, FY2000-FY2019 .......................................................................... 6

Table 3. Business Loan Administration, FY2000-FY2019 ............................................................. 9

Table 4. Office of Inspector General, FY2000-FY2019 ................................................................ 12

Table 5. Office of Advocacy, FY2000-FY2019 ............................................................................. 14

Table 6. Small Business Development Centers, FY2000-FY2019 ................................................ 17

Table 7. Microloan Technical Assistance Program, FY2000-FY2019 .......................................... 19

Table 8. Women Business Centers, FY2000-FY2019 ................................................................... 21

Table 9. SCORE, FY2000-FY2019 ............................................................................................... 23

Table 10. Program for Investment in Microentrepreneurs (PRIME), FY2001-FY2019 ............... 25

Table 11. Veterans Outreach Programs, FY2015-FY2019 ............................................................ 29

Table 12. Veterans Business Outreach Centers (VBOC) Program, FY2000-FY2015 ................... 30

Table 13. 7(j) Technical Assistance Program, FY2000-FY2019 ................................................... 32

Table 14. Native American Outreach (NAO) Program, FY2003-FY2019 .................................... 34

Table 15. National Business Women’s Council (NWBC), FY2000-FY2019 ................................ 36

Table 16. Historically Underutilized Business Zones (HUBZone) Program, FY2000-

FY2019 ....................................................................................................................................... 38

Table 17. Entrepreneurial Development Initiative (Clusters), FY2010-FY2019 .......................... 40

Table 18. Entrepreneurship Education Initiative, FY2014-FY2019 .............................................. 41

Small Business Administration (SBA) Funding: Overview and Recent Trends

Congressional Research Service

Table 19. Growth Accelerator Initiative, FY2014-FY2019 ........................................................... 43

Table A-1. Small Business Administration Appropriations, FY1980-FY1999 ............................. 44

Table A-2. Small Business Administration Appropriations, FY1954-FY1979 ............................. 45

Appendixes

Appendix. SBA Appropriations, FY1954-FY1999 ....................................................................... 44

Contacts

Author Contact Information .......................................................................................................... 46

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