The primary purpose of the Selective Service System is effective manpower utilization through classification under the Universal Military Training and Service Act. The System is responsible for supplying men to keep the Armed Forces at their authorized strength and to the extent that their needs are not met by voluntary enlistment. It will be required to supply an estimated 129,000 men for this purpose in 1964 as compared to approximately 140,000 in 1963 and 160,000 in 1962. 1. National administration, planning, training, and records management. The overall administration of the act including planning, training, and records management is accomplished by the national headquarters and six regional field offices. 2. State administration, planning, training, and records servicing. Administration of the act within the several States is the responsibility of the 56 State headquarters operating under the policies determined by national headquarters. 3. Registration, classification, and induction. These functions affecting over 26,000,000 registrants are accomplished by the over 48,000 uncompensated citizens assisted by about 6,000 clerks at over 4,000 boards. These citizens determine who shall be deferred and for how long in the national interest in agriculture, industry, or other pursuits. They also determine the availability for military service of members of the Standby Reserve. Total number of permanent positions.. Full-time equivalent of other positions.. Average number of all employees.. Number of employees at end of year: Average GS grade. Average salary of ungraded positions. SMALL BUSINESS ADMINISTRATION General and special funds: SALARIES AND EXPENSES For necessary expenses, not otherwise provided for, of the Small Business Administration, including hire of passenger motor vehicles, [$5,750,000 $7,350,000, and in addition there may be transferred "Trade adjustment loan assistance," for administrative expenses of to this appropriation (a) not to exceed $100,000 from the appropriation activities financed under that appropriation, and (b) not to exceed [$27,000,000 $28,900,000 from the revolving fund, Small Business Administration, for administrative expenses in connection with activities financed under said fund: Provided, That the amount authorized for transfer from the revolving fund, Small Business Administration, may be increased, with the approval of [the Director of] the Bureau of the Budget, by such amount (not exceeding $500,000) as may be required to finance administrative expenses incurred in the making of disaster loans: Provided further, That 10 per centum of the amount authorized to be transferred from the revolving fund, Small Business Administration, shall be apportioned for use, pursuant to section 3679 of the Revised Statutes, as amended, only in such amounts and at such times as may be necessary to carry out Change in selected resources. 26 -46 -3 Total obligations..... 35,974 37,568 38,140 Personnel Summary 5,477 5,430 5,420 985 1,174 1.159 6,413 Civilian employees. Military employees. Average GS salary. the business loan program. (72 Stat. 384, as amended; 72 Stat. 689, as amended; Departments of State, Justice, and Commerce, the Judiciary, and Related Agencies Appropriation Act, 1963.) Program and Financing (in thousands of dollars) Program by activities: 1962 actual 1963 1964 estimate estimate 1. Procurement and technical assistance....... 4,136 4,882 1,020 2,507 21,912 and bulletins, and (c) establishing administrative management courses. Research studies of matters materially affecting the competitive strength of small business are financed under this activity. 3. Investment and development company assistance and supervision. In order to stimulate and supplement the flow of private capital to small business concerns this Agency is authorized to (a) license, regulate, and examine 5,600 small business investment companies, (b) provide capital to these companies, (c) lend funds to such companies, and (d) lend funds to State and local development companies. 23,128 Beginning in 1963, funds for administrative expenses of 100 this activity are transferred from the revolving fund. 1,750 2,882 33,460 -18,846-24,4192-26,010 -100 -393 7,050 5,902 7,350 4. Financial assistance.-Small business concerns, victims of disasters, and businesses displaced because of Federal construction, are aided through loans, which are administered so as to assure return of the Government investment. In addition, financial counseling is provided to small firms requesting assistance. Funds for administrative expenses of this activity are transferred from the revolving fund. Financial statements covering these programs and the investment and development company assistance program may be found under the revolving fund section. 5. Trade adjustment loan assistance.-Following certification of proposals by the Secretary of Commerce, the Small Business Administration may make loans to assist firms to adjust to changed economic conditions resulting from increased competition from imported articles. Funds for administrative expenses will be transferred from the appropriation Trade adjustment loan assistance. Object Classification (in thousands of dollars) Proposed supplemental due to pay in 1 Selected resources as of June 30 are as follows: Positions other than permanent. 432 150 100 Other personnel compensation.. Advances. 12 Personnel benefits... 1,467 1,764 1,933 Unpaid, undelivered purchases.. 74 23 Rent, communications, and utilities. 790 1,003 1,196 24 Printing and reproduction... 285 272 284 25 Other services. 455 271 743 The Small Business Administration counsels, assists, and protects the interest of small business; provides aid to business firms and homeowners who have suffered losses through disasters; and makes loans to assist firms to adjust to changed economic conditions resulting from increased competition from imported articles. Total costs... Change in selected resources.. Total obligations............. 1. Procurement and technical assistance.-The objectives of this activity are (a) to insure that a fair proportion of Government contracts for purchases of supplies and services and for the sale and disposal of property be placed with small business enterprises, (b) to insure that a fair proportion of Government contracts for research and development be placed with small business concerns and to assist small firms to obtain the benefits of research and development performed at Government expense, and (c) Average GS grade... to provide technical and managerial aid to small business concerns by advising and counseling on matters in connection with Government procurement, research and development, property disposal, methods engineering, foreign trade, and new and improved products and processes. 2. Management assistance and research.-Assistance is provided to small business through (a) management counseling, (b) developing and distributing management aids 3,000 1 Selected resources as of June 30 are as follows: Undisbursed loan obligations, 1963, $0; 1964, $1,300 thousand. Public Law 87-550, approved July 25, 1962, authorizes appropriations, without fiscal year limitation, to permit the Small Business Administration to make loans to eligible firms under the provisions of the Trade Expansion Act of 1962 (Public Law 87-794, approved Oct. 11, 1962). The Trade Expansion Act of 1962 provides for certification by the Secretary of Commerce of proposals for economic adjustment submitted by eligible firms. The Secretary is required to refer proposals to an appropriate Federal agency having lending authority. Such agency would then determine whether and to what extent it will provide financial assistance under its own legislation. With respect to firms that have been certified eligible for trade adjustment assistance, Public Law 87-550 permits Small Business Administration to make loans to any size firm, in any dollar amount for a period not to exceed 25 years. These loans may be made on a direct or participation basis. In making such loans, Small Business Administration must apply applicable sections of the Trade Expansion Act. A supplemental appropriation is proposed for separate transmittal for this program in 1963. Change in selected resources Total obligations------ SMALL BUSINESS ADMINISTRATION-Continued Public enterprise funds-Continued REVOLVING FUND-Continued This fund finances business and disaster loans and prime contracting activities as authorized by the Small Business Act, as amended (15 U.S.C. 631 et seq.), and investment and development company assistance activities, as authorized by the Small Business Investment Act, as amended (15 U.Š.C. 661 et seq.). The Congress has authorized appropriations to the fund of $1,666 million. Of this amount, not to exceed $1,325 million may be outstanding for the authorized activities under the Small Business Act and not to exceed $341 million may be outstanding for investment and development company assistance. It is estimated that the limitation on investment and development company assistance will be reached in 1964. Thus, legislation will be proposed to increase the limitation. Outstanding loans and reservations at the end of each year for the programs financed by the fund are as follows (in millions of dollars): sound value or so secured as reasonably to assure repayment. No loan may be made unless the financial assistance is not otherwise available on reasonable terms. No direct loan may be made unless it is shown that participation with a bank is not available and no immediate participation loan may be made unless it is shown that a deferred participation loan is not available. The Administration's participation in a loan is limited to 90% and the agency's maximum loan to any one borrower is limited to $350 thousand, except for a loan to a corporation formed and capitalized by a group of small business concerns for purposes authorized in the Small Business Act. With respect to such "pool" loans, the limitation is $250 thousand multiplied by the number of separate small businesses participating in the corporation. Business loans, except for the purpose of constructing facilities, are limited to a maturity of 10 years and except for "pool" loans and loans in "redevelopment areas" under the Area Redevelopment Act, bear interest at a maximum rate of 5%1⁄2% per annum on the agency's share thereof. For "pool" loans, the rate of interest on the Small Business Administration's share is no less than 3% nor more than 5% per annum. For loans in ARA designated areas, the rate of interest on the Small Business Administration's share is 4% per annum. It is the policy to assist businessmen operating small firms to secure credit for constructive purposes on terms that will meet the borrower's individual requirements. Assistance includes counseling as well as the lending of funds. From the beginning of the lending program on September 29, 1953, through June 30, 1962, 31,554 loans had been approved in a total amount of $1,566.4 million (including participating banks' share of $245.7 million). Sixty-three percent of these loans have been on a participation basis. The average size of loans approved to date has been $49,600. In 1964, it is estimated that 7,950 loans will be approved, compared to an estimate of 6,670 in 1963. It is further estimated that 12% of the loans in 1964 will be approved on a deferred participation basis, compared with an estimate of 10% in 1963 and 9% in 1962. The following tabulation reflects certain data on business loans and includes funds disbursed or collected by banks on participation loans. Accordingly, the Small Business Administration's share of disbursements and repayments will not agree with related data in the financial statements, which reflect transactions on the basis of only the Small Business Administration cash funds involved. 648.1 772.6 Deferred participation loans dis bursed by banks.. 44.1 59.9 Undisbursed loan authorizations... 78.3 90.0 84.1 105.8 Loans sold under repurchase agree ment.... Total loans and reservations.. 660.4 798.0 968.8 Disaster loans: Investment in outstanding loans. - - 71.0 83.0 Outstanding loan reservations: Deferred participation loans dis bursed by banks.. Undisbursed loan authorizations 0.5 16.8 |