OMB COST ESTIMATE
FOR PAY-AS-YOU-GO CALCULATIONS

Report No: 490
Date: September 2, 1999

1. LAW NUMBER: P.L.106-50 (H.R. 1568 )
2. BILL TITLE: Veterans Entrepreneurship and Small Business Development Act of 1999
3. BILL PURPOSE: (1) Establishes new organizational units to coordinate and deliver assistance to veteran-owned small businesses; (2) authorizes the SBA to provide technical and financial assistance to small businesses when key employees who are reservists are ordered to active duty; (3) requires specific efforts to increase the participation of service-disabled and other veterans in Federal contracting and subcontracting; and (4) makes other statutory changes designed to promote the creation and growth of veteran-owned small businesses.
4. OMB ESTIMATE:

	(Fiscal years; in millions of dollars)
	1999	2000	2001	2002	2003	2004
Net costs.....................	1	0	0	0	0	0

P.L. 106-50 mandates the SBA to defer principal and interest payments due on small business loans if a military reservist is called to active duty and the reservist is an essential employee of the small business. This deferral would increase direct spending, because it would increase the subsidy cost of existing loans to small businesses, which would be recorded as an outlay in the year in which the legislation is enacted.

The Act also establishes the Advisory Committee on Veterans Business Affairs and authorizes the committee to accept and use gifts and donations, which would insignificantly affect direct spending and governmental receipts.

5. CBO ESTIMATE:

	(Fiscal years; in millions of dollars)
	1999	2000	2001	2002	2003	2004
Net costs....................	1	0	0	0	0	0

6. EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:

The estimates are the same.

7. CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION ENACTED TO DATE:

	(Fiscal years; in millions of dollars)
	1999	2000	2001	2002	2003	2004
Outlay effect..............	1	769	945	590	866	0
Receipt effect............	-5	3,659	1,779	769	1,985	37
Net costs....................	6	-2,890	-834	-179	-1,119	-37

* $500,000 or less