DEVELOPMENT FACILITIES LOANS

Mr. ROONEY. What are the details as to the $35 million requested under this item for development facilities loans?

Mr. LEWIS. The details on that are found, sir, on pages EDA÷1 and EDA-42. The basis for the estimate is primarily in the table on page 42.

Mr. ROONEY. Are you saying that the reference to page 42 would give us the details as to this $35 million requested for development facilities loans?

Mr. LEWIS. Pages 41 and 42.

Mr. ROONEY. All page 42 says is "Portion of local share financed by development facility loans, $35 million."

Mr. LEWIS. Sir, these development facility loans are made primarily in connection with the development facility grants. The purpose of this loan program is to provide an opportunity for making loans to those communities who need to obtain money to provide their matching share, but who it is felt cannot go to the private market except at a high level of interest. The basis of the estimate as to how much we may loan out in loans is almost solely related then to the proportion of the total local matching share that we will be called upon to finance.

Under the APW program, this ran something under 10 percent. Under the ARA program, it ran something like 50 percent. Within that range we have estimated here that it will run about 15 percent. Mr. ROONEY. Do you have any detail on this other than the two pages, to wit, pages 41 and 42?

Mr. LEWIS. That and my explanation is all.

COMMERCIAL AND INDUSTRIAL LOANS

Mr. ROONEY. What about the $70 million for commercial and industrial loans?

Mr. LEWIS. The description of the program is on page 43, and some information as to the anticipated volumes is on pages 44 and 45.

Mr. WILLIAMS. I would like to call to your attention the fact that the backlog of industrial and commercial loans with applications now pending before the Economic Development Administration as the successor agency to ARA is over $100 million-$110.7 million.

WORKING CAPITAL LOAN GUARANTEES

Mr. ROONEY. Do you have any detail in addition to pages 46 and 47 with regard to the $3.2 million entitled "Working capital loan guarantees"?

Mr. LEWIS. No other detail.

ADMINISTRATIVE EXPENSES

Mr. ROONEY. What are you requesting for administrative expenses! Mr. LEWIS. Administrative expenses, $3.7 million.

Mr. ROONEY. How many positions?

Mr. LEWIS. The number of positions under that is 284.

Mr. ROONEY. Where do we find detail as to the $1,966,000 for "Other objects" mentioned at page 49 ?

Mr. LEWIS. Sir, I have, as we provided with the others, some detail covering both the salaries and other object expenses.

Mr. ROONEY. We shall insert these pages at this point in the record. (The pages referred to follow :)

12.0 Personnel benefits-.

21.0

Justification of other objects

Covers the Government's share of the civil service retirement fund, social security tax, and the group life insurance and health benefits programs. The cost is approximately 7.5 percent of the compensation expenses.

Travel and transportation of persons_.

Direct: Examination, closing, and servicing of finan-
cial assistance projects estimate is based on 14
trips per Washington professional, at $175 per trip,
and almost 9 per field professional, at $100 per
trip; total direct travel_-
Administrative: Pro rata share of transportation and
per diem expenses of agency executive staff, audit-
ing, management, and other administrative person-
nel, 75 trips, at $130 each_

22.0 Transportation of things-

23.0

24.0

25.1

25.2

26.0

31.0

Direct Provides for the movement of household goods
of Federal employees to the proposed field offices-
Administrative: Pro rata share of the shipment of
forms, stationery, and other materials to field
offices---

Rent, communications, and utilities.

Direct Payment to GSA for approximately 4,000
square feet in Washington and 20,000 square feet
in the field, of general office space to house the 204
new positions assigned to this program. The esti-
mate assumes leases being in effect for % of the
fiscal year. The current square footage costs are
$5.25 in the Washington area, and averages $3.75
nationally total direct rent_

This object class also provides for the communications
expenses of this program, including local and long-
distance telephone service, telegraph, and penalty
mail charges. The estimate is based on an average
rate of $50 per man-month for each of the 128 man-
years required by this program; total direct com-
munications..
Administrative: Share of the costs of additional space
for the 31 new executive and administrative posi-
tions ($10,000) and the communications costs of the
administrative personnel ($20,000) prorated to this
appropriation__

Printing and reproduction.

Direct printing of forms, circulars, manuals, and re-
ports needed to conduct this program, at an average
rate of $175 per man-year-

Administrative: Pro rata share of the printing ex-
penses of the executive and administrative staff___
Other services.
Direct: Contracts with specialized firms to provide
confidential (a) appraisals; (b) analyses of appli-
cants' and borrowers' production and marketing
problems; and (c) evaluation of borrowers' manage-
ment efficiency, in the larger and more complex
situations; 65 contracts averaging $2,500.
Administrative: Pro rata share of contract for devel-
opment of program control and evaluation system__
Services of other agencies---

Direct: Terminal expenses of delegation of loan opera-
tions authority to Small Business Administration
and Housing and Home Finance Agency, $668,000:
evaluation of resource-based project proposals by
the Departments of Agriculture and Interior, $510,-
000 total direct..

Administrative: Pro rata share of personnel, account-
ing, and administrative services provided by the
Department ($67,000) and the machine processing
of the program control and evaluation report
($4,000)

Supplies and materials_

Direct: Provision of miscellaneous expendable office
supplies, materials, standard forms, and periodicals,
at $50 per man-year....

Administrative: Pro rata share of the provision of the
above items for the executive and administrative
staffs.

Equinment..

Direct: Procurement of equipment and furnishings
for the 204 additional positions, at approximately
$690 per new position_.

Administrative: Procurement of the above items for
the 31 new executive and administrative positions
prorated to this appropriation_

Total, other objects--

Total, administration expenses..

$190,000

10, 000

1966 estimar

$119

13, 000

2.000

172,

65,000

77,000

30.000

25 000

19,000

6, 000

167,000

160, 000
7,000

1,249,000

1, 178, 000

71,000

8.000

6. 000

2,000

160,000

140.000

20,000

2.115.000

3.700,000