THE WHITE HOUSE Office of the Press Secretary ________________________________________________________________________ For Immediate Release June 19, 1995 PRESIDENT SENDS BUDGET AMENDMENTS TO CONGRESS FOR HUD AND SBA The President has sent fiscal year 1996 budget amendments to the Congress for the Department of Housing and Urban Development (HUD) and the Small Business Administration (SBA). These amendments are a part of the second phase of the Administration's efforts to Reinvent Government and would produce savings of $1.4 billion in FY 1996 budget authority. The proposals include the following: Department of Housing and Urban Development -- Savings of $1.155 billion in the Housing Certificates for Families and Individuals Performance Funds program. This proposal results from the repricing of Incremental Rental Assistance and Section 8 Contract Renewals and further refining of the estimates of HUD's reinvention initiatives, including the Public Housing Transformation and multi-family Mark-to-Market proposals. Small Business Administration -- Savings of $200 million in the business loans program. This amendment would reduce the Government's subsidy cost to zero for the section 7(a) and the 504 loan guarantee programs. -- Savings of $24 million in salaries and related expenses. This proposal reflects savings associated with the reduction of staffing levels, consolidation of field offices, and relocation of some headquarters functions. Under this proposal, SBA would continue to fulfill its mission more efficiently under a new, streamlined organizational structure. -- Savings of $3 million in the Surety Bond Guarantee program. These savings would result from shifting a small portion of the cost of the program to its beneficiaries. # # #