NOTE.-In addition, 46,182 paid neighborhood nonprofessionals are employed by Project Head Start throughout the United States. See Project Head Start section for details.

FARMERS HOME ADMINISTRATION'S MANAGEMENT OF RURAL AREAS

PROGRAMS

Mr. DUNCAN. You have got 250 full-time employees and 50 temporaries for the rural loan program, as I recall the justification. You made about 11,000 loans. Granting all of the clerks and stenographers that you have to have, it looks to me like that is not a very heavy workload for that many people.

Mr. DOHERTY. The 50 temporaries went off the rolls as of June 30. Mr. DUNCAN. That makes the workload about four loans per month instead of three loans per month?

Mr. DOHERTY. Congressman, actually the Farmers Home Administration has 1,600 county offices participtaing in the administration of this program. When you realize that we made 11,000 individual loans in only 6 months of 1965 and we will have approximately 15,500 individual loans in 1966 plus the cooperative loans, which will probably total close to 500 and are much more complex to make and administer, you get some idea of the sizable added caseload the agency has taken on.

Mr. DUNCAN. 500 loans on each loaning officer?

Mr. DOHERTY. No, sir; there will be an estimated 500 cooperative loans total in 1966 plus 15,500 individual loans. This caseload per professional FHA employee for the economic opportunity loan program works out pretty close to our normal caseload. However, the emphasis I want to make is this: The entire organization is participating in carrying out this program. It is not a matter of a single individual strictly on the rural loans.

Mr. DUNCAN. These 50 people may be part-time people; is that right, on this particular aspect of the program?

Mr. DOHERTY. All FHA employees work some of their time on economic opportunity programs. In 1965, the equivalent of 400 manyears was devoted to these programs in the agency. It was necessary to develop the program, prepare new procedures, train field people. And also a large volume of applications for economic opportunity loans were processed-nearly 21,000-in addition to making and services loans made.

Mr. DUNCAN. We ought to make that clear. I do not think any bank could make money with that many people handling that many loans?

Mr. DOHERTY. There is an additional factor. We provide a great deal of supervision with these economic opportunity loans, as we do with the regular FHA credit program. With the economic opportunity loan program, supervision is even more important than in the normal program. In fact, you can look at these loans as basically educational, in the sense that we try to work with the borrowers on a continuing basis. We plan with them and work with them on a continuing basis to improve their skills and management abilities. We do much more than any banker would ever dream of doing.

REPAYMENT OF RURAL AREAS LOANS

Mr. DUNCAN. Do you have any defaults on them, or is it to early? Mr. DOHERTY. No, it is too early in the program for a meaningful report on this. However, we already have interest and principal re