U.S. Small Business Administration

1 Small Business Administration FY 2020 Congressional justification FY 2018 Annual Performance Report PERFORMANCE PLAN, BUDGET, AND REPORT. Program Index PROGRAM PAGE STRATEGIC OBJECTIVE. 504 Loans 33 Capital 7(a) Loans 29 Capital 7(j) Management & Technical Assistance 75 Business Development 8(a) Business Development 75 Business Development Acquisition Management 121 Resource Management Advocacy 180 Advocacy All Small Mentor-Prot g 79 Business Development Boots to Business 98 Entrepreneurial Ecosystem Credit Risk Management 45 Capital Disaster Preparedness & Response 109 Disaster Assistance Entrepreneurship Education 92 Entrepreneurial Ecosystem Grants Management 124 Resource Management HUBZone 75 Business Development Human Capital 127 Human Capital Information Technology 136 Information Technology International Trade Loans 53 International Trade Microloans 37 Capital National Ombudsman 105 Advocacy National Women's Business Council 108 Advocacy Native American Outreach 100 Entrepreneurial Ecosystem SBA Learning Center 93 Entrepreneurial Ecosystem SCORE 89 Entrepreneurial Ecosystem Secondary Market Guarantee 32 Capital Service-Disabled Veteran-Owned Small 58 Business Development Business Contracting Small Business Development Centers 84 Entrepreneurial Ecosystem Small

2 Business Innovation Research 68 Contracting & Innovation Small Business Investment Companies 39 Capital Small Business Procurement Set-Aside 59 Business Development Small Business Technology Transfer 68 Contracting & Innovation State Trade Expansion Program 50 International Trade Surety Bond Guarantees 66 Contracting & Innovation Veteran Business Outreach Centers 97 Entrepreneurial Ecosystem Women Owned Small Business Contracting 63 Business Development Women's Business Centers 87 Entrepreneurial Ecosystem Table of Contents FY 2018 FY 2022 STRATEGIC PLAN GOALS AND OBJECTIVES----------------------1. OVERVIEW OF FY 2020 BUDGET REQUEST--------------------------------- ------------------2. UNDERSTANDING THE BUDGET TABLES---------------------------------- -----------------4. BUDGET TABLES---------------------------------- ---------------------------------------- --------------6. FY 2020 PERFORMANCE PLAN AND FY 2018 PERFORMANCE REPORT-----------18. Strategic Goal One Support Small Business Revenue and Job Growth-------------------------25.

3 Strategic Goal Two Build Healthy Entrepreneurial Ecosystems and Create Business Friendly Environments---------------------------- ---------------------------------------- ------------72. Strategic Goal Three Restore Small Businesses and Communities after Disasters-----------109. Strategic Goal Four Strengthen SBA's Ability to Serve Small Businesses---------------------120. APPENDICES------------------------------ ---------------------------------------- ----------------------148. Appendix 1 Appropriations Language-------------------------------- -------------------------------------149 . Appendix 2 Data Validation and Verification---------------------------- --------------------------------153. Appendix 3 SBA Program Offices--------------------------------- ---------------------------------------- --154. Appendix 4 Acronyms-------------------------------- ---------------------------------------- -----------------157. Appendix 5 Performance Indicators Table----------------------------------- -----------------------------161.

4 Appendix 6 Management Challenges------------------------------ ---------------------------------------- 180. OFFICE OF ADVOCACY BUDGET REQUEST--------------------------------- --------------182. OFFICE OF INSPECTOR GENERAL BUDGET REQUEST--------------------------------2 01. FY 2018 FY 2022 Strategic Plan Goals and Objectives Strategic Goal One Support Small Business Revenue and Job Growth Strategic Goal One has three Strategic Objectives Expand Access to Capital Help Small Business Exporters Succeed in Global Markets Ensure Federal Contract and Innovation Set-Aside Goals are Met and/or Exceeded Strategic Goal Two Build Healthy Entrepreneurial Ecosystems and Create Business Friendly Environments Strategic Goal Two has three Strategic Objectives Develop Small Businesses through Technical Assistance Build Healthy Entrepreneurial Ecosystems Create a Small Business Friendly Environment Strategic Goal Three Restore Small Businesses and Communities after Disasters Strategic Goal Three has one Strategic Objective Deploy Disaster Assistance Effectively and Efficiently Strategic Goal Four Strengthen SBA's Ability to Serve Small Businesses Strategic Goal Four has three Strategic Objectives Ensure Effective and Efficient Management of Agency Resources Build a

5 High-Performing Workforce Implement Enterprise-Wide Information System Modernization and Cost-Effective Technology FY 2020 Congressional justification and FY 2018 Annual Performance Report 1. Overview of FY 2020 Budget Request and Performance Plan The President has underscored job creation and economic growth as pillars of his Administration . The Small Business Administration (SBA) is uniquely positioned to support his priorities through programs that champion Small Business creation and growth. Respecting the President's promise to be a responsible steward of taxpayer dollars, the SBA is committed to exercising its role as efficiently and effectively as possible. The SBA, through its FY 2020 budget request, has made a concerted effort to identify cost savings to support the President's request. With this budget, the SBA will provide tools and resources critical to the success of America's nearly 30 million Small businesses, which support more than 56 million jobs. The SBA will continue to advocate for Small businesses and serve as the catalyst to empower Small Business owners to start, grow, expand, and recover.

6 The FY 2020 Annual Performance Plan and Budget builds on the successes in FY 2018 and the foundations outlined by the President in his Reform Plan and Reorganization Recommendations. The Administrator will continue to serve as a champion for America's Small businesses and work with key stakeholders to ensure that the President's plans become a reality. As an example, the SBA will work with the Department of Veterans Affairs to assess the efficiency of and identify next steps for transitioning veteran-owned Small Business program certifications into the Agency's Small Business certification portfolio. The SBA will establish an electronically processed women-owned Small Business certification in alignment with its 8(a) Business Development and HUBZone programs as well. The SBA will examine how to take on Small Business loan programs, where appropriate, in partnership with other federal agencies to ensure that entrepreneurs and Small Business owners have an efficient point of reference to access capital.

7 In doing all this, and more, the SBA will continue to support the President's goals of promoting workforce development and ensuring rural areas have access to the resources and technology necessary to support Small Business growth. In support of the President's Management Agenda, the SBA will focus on several key priorities to modernize the Federal Government. Central to the SBA's commitment to management best practices in Information Technology is its focus on several priority initiatives: the enhancement of cybersecurity, migrating more data systems to cloud storage, and using the new authority provided to establish and operate an IT working capital fund. These efforts will provide greater efficiencies and continue to enhance operations to deliver services faster for America's Small businesses. As an example of progress, the SBA implemented the Disaster Credit Management System (DCMS) ; the SBA can now respond more quickly to disasters and process a greater number of loan applications.

8 Through improved lending tools such as Lender Match and a new certification portal, , the SBA is able to expedite service delivery and reduce costs for Small businesses. These efforts will improve the customer experience with Federal Government services. In addition, through its SBA Reimagined" campaign, the SBA will continue to focus on ways to best meet the needs of today's entrepreneurs. These messages have culminated in a new SBA brand that has been delivered to lending and resource partners throughout the United States. Through the Ignite Tour, Administrator McMahon has reinvigorated America's entrepreneurial spirit by visiting SBA's district offices and hosting listening sessions with Small Business owners. The SBA is using technology to serve more entrepreneurs. A new digital learning and collaboration platform will focus on women entrepreneurs seeking to scale their Business . Through online courses, peer-to-peer collaboration, and mentoring, this digital platform will provide entrepreneurs, especially FY 2020 Congressional justification and FY 2018 Annual Performance Report 2.

9 Those in rural markets, with a digital education resource. The SBA will continue to serve as a co-lead for the Presidential Cross-Agency Priority Goal for leveraging data as a strategic asset. The Federal Government needs a robust, integrated approach to using data to deliver on its mission, serve customers, and steward resources while respecting privacy and confidentiality. At the SBA, program managers collect and analyze data to help build evidence for program improvements, policy, budget, and operational decision-making. With new program evaluations and other partnerships, data will be leveraged to answer key questions and make the SBA a more effective and efficient place for America's Small Business programs. By shifting from low-value to high-value work, the SBA will help emerging markets grow and succeed. By streamlining standard operating procedures for international trade finance programs and SBIC operations, the SBA will help its employees maximize support to customers. Nearly 96 percent of all consumers are outside the United States, and the growth in the middle class depends on increasing purchasing power for America's Small businesses.

10 With streamlined procedures, SBA field staff will have greater ability to conduct outreach and provide assistance. America's entrepreneurs are innovators who take risks on ideas, invest in their communities, and create jobs. Their skills and creativity not only support their own families, but they also make our neighborhoods vibrant places to live and work, fueling the nation's economic strength. Through SBA's FY 2020 budget request, the Agency reaffirms its commitment to supporting job growth and ensuring America remains competitive in an interdependent and highly competitive global economy. To support this mission, SBA's total budget request for FY 2020 is $820 million in new budget authority. Of this amount, $272 million is for salaries and expenses and $181 million is for entrepreneurial development programs. The SBA will implement counter-cyclical policies in the SBA's Business guarantee loan programs and update fee structures to offset $155 million in Business loan Administration .