MEMORIAL TO AMERICAN DEAD IN SOUTH KOREA Senator PASTORE. Do they need an authorization on something of this kind? Senator HOLLINGS. No, I don't think so. General ADAMS. That is correct. Senator PASTORE. Why don't we write something in the report to the effect that this committee is very much disturbed over the fact that the Administration has never initiated any action for a memorial in South Korea to the American dead, and that we feel that OMB should submit a budget estimate. Senator HOLLINGS. That would lose another year. Senator PASTORE. Are you asking to put the money in now? Senator HOLLINGS. I would like to try to put it in this year. Senator PASTORE. We don't know how much this is going to cost. Senator HOLLINGS. They requested $260,000. They have been asking for it before. Senator PASTORE. I know. But we don't have the land. We can always bring this up in a supplemental. I am perfectly willing to bring it up in a supplemental when the Korean Government formally notifies us that it will provide the site. Senator HOLLINGS. Let's get their justification, and as they negotiate they can correspond with you as chairman as to the availability of the land. Let's do that. Senator PASTORE. You have made a request for Utah Beach too, haven't you, at some point? How much are you asking for that? General ADAMS. $338,000. Senator PASTORE. In your report, why don't you use the same language to cover the two, as we are very interested in both the Utah Beach memorial and this one in Korea? Unless OMB takes the initiative, we will have to take the initiative. Has this land for the Utah Beach memorial already been granted to us? General ADAMS. Yes; it is being reserved for us. We don't want to own it, just its free use in perpetuity. Senator PASTORE. But in case we get the appropriations, the land will be available? General ADAMS. Yes; the land is available to us. Senator PASTORE: That cannot be said of South Korea? General ADAMS. Specifically no, although they have indicated it is being reserved for us. The Korean Government has stated in effect. "you get the money and we will furnish the site." SMALL BUSINESS ADMINISTRATION STATEMENT OF THOMAS S. KLEPPE, ADMINISTRATOR ACCOMPANIED BY: H. GREGORY AUSTIN, GENERAL COUNSEL DIRECTOR, OFFICE OF BUDGET AND BUDGET REQUEST Senator PASTORE. The next item we will consider is the 1974 budget request for the Small Business Administration. A total of $248,273,000 is requested in direct appropriations for three accounts, namely: $22,300,000 for salaries and expenses, a decrease of $260,000 below the 1973 appropriation; $973,000 for payment of participation sales insufficiencies, which is an increase of $3,000 over 1973, and $225 million for business loan and investment fund, a decrease of $170 million below the 1973 appropriation, made to date. Also requested is authority to transfer from the SBA revolving funds to the salaries and expenses account a total of $69,700,000. JUSTIFICATION Summary justifications filed in support of the budget requests will be placed in the record. [The justifications follow:] This budget request is for $92,000,000 to provide in 1974 for salaries and expenses of the Small Business Administration. It consists of a direct appropriation of $22,300,000 including $17,300,000 for procurement and management assistance activities and $5,000,000 for specialized management and technical assistance activities. We are also requesting authority to transfer $69,700,000 from the revolving funds for administrative expenses in support of the activities financed through the Business Loan and Investment Fund, Disaster Loan Fund and Lease and Surety Bond Guarantees Fund. Included in this amount is the usual provision for a 10 percent contingency of $6,970,000 to be apportioned for use only at such times and in such amounts as required to carry out the activities of such revolving funds. The amount requested for 1974 represents a decrease of $18,000,000 from the amounts contained in the Appropriations Act for 1973, Public Law 92-544 and the supplemental appropriation for 1973 enacted August 20, 1972, Public Law 92-393. However, excluding the contingency and the other amounts used for salaries and expenses associated with disaster loanmaking and the amount placed in reserve for savings, this request is $5.5 million over the amount available for salaries and expenses for FY 1973. These increases are outlined by program and type of increase on pages S&E Employment 1 through S&E - 3. This request provides for a reduction in authorized permanent positions from 4,200 at June 30, 1973, to 4,054 filled permanent positions at June 30, 1974. These reductions from the 4,200 authorized at the end of 1973 and phased throughout the fiscal year to minimize the impact on the programs and to provide for the assignment of permanent employees to the areas where they are most needed. Business Loan and Investment Fund This estimate contains a request for an additional capital appropriation of $225 million to carry out the activities of the Business Loan and Investment Fund during FY 1974. With the $48 million that was placed in reserve during FY 1973, we will have a carry over balance of $149 million to go into FY 1974. Net obligations after repayments will amount to $352 million, leaving a balance of $22 million to carry into FY 1975. Disaster Loan Fund This budget request does not provide for additional capital for the Disaster Loan Fund in FY 1974. We estimate that there will be an unobligated balance of $158 million at the end of FY 1973. Comprehensive legislation proposals for disaster loan program will be submitted to the Congress, a part of which will be to initiate the Federal Insurance Program for disaster victims. In view of the unpredictable nature of disasters, we are not requesting a capital appropriation at this time, however, in the event a large disaster should strike, or a large number of disasters, then it will be necessary that we request supplemental funds at that time. Program and Performance The Small Business Administration counsels, assists, and protects the interest of small business, and provides aid to business firms and home owners who have suffered losses through disasters. These efforts are conducted through the following activities: 1. Procurement and management assistance. The objectives of this activity are (a) to insure that a fair proportion of Government contracts for purchases of supplies and services, including research and development, and for the sale and disposal of property, be placed with small business enterprises, (b) to provide technical and management assistance through management courses, and counseling on new and improved products and processes, and (c) to provide for greater involvement of disadvantaged and minority contractors in the Federal procurement program through the use of the authority contained in section 8(a) of the Small Business Act, as amended. This section enables the Agency to act as prime contractor to provide goods and services to other Government agencies and in turn arrange for performance of such contracts by negotiating or otherwise letting subcontracts to small business concerns. 2. Research contracts. - Research studies designed to reveal matters materially affecting the competitive strength of small business and the effect on small business of Federal laws, programs, and regulations are financed under this activity. 3. Economic opportunity management assistance. As authorized by section 406, Title IV, of the Economic Opportunity Act of 1964, SBA will contract for professional management training and support of small business entrepreneurs in areas with high concentrations of unemployed or low income individuals to (1) establish the management training, counseling, and support needs of firms in target areas, (2) identify business opportunities in these areas and (3) determine the feasibility and profit potential of proposed business development to be located in such areas. Funds for these three activities are provided by direct appropriation. (a) Business loans. 5. 6. in the economic development of their respective states and (c) Disaster loans. This provides financial assistance on Investment company assistance and supervision. - In order to stimulate and supplement the flow of private capital to small business concerns, the Small Business Administration is authorized to (a) license, regulate, and examine small business investment companies, and (b) provide funds to such companies for financing small business firms. The programs level for 1974 is estimated at $115.0 million. Lease and surety bond guarantees: (a) Lease Guarantees. In order to enable small businesses to compete on an equal basis with financially strong businesses in the leasing of facilities in shopping centers and other business properties the Small Business Administration is empowered to guarantee the payment of rentals under leases of commercial and industrial property entered into by small business concerns. The program level for 1974 is estimated at 700 guarantees for $250 million (aggregate rent). (b) Surety bond guarantees. In order to enable small firms, primarily minority owned, to obtain bid, performance, and payment bonds otherwise denied them through asserted lack of financial and other capability, the Small Business Administration is authorized to guarantee sureties against losses resulting from the breaching of such bonds by small contractors who were furnished bonds by the sureties under the provisions of this program. SBA's guarantee is 90 percent of the loss under contracts not exceeding $500,000 in amount. The program level (contracts insured) for 1974 is estimated at 4,000 for $280 million. Funds for the administrative support of the above activities are transferred from the appropriate revolving funds. |