** **

** **

** **

**Preparing the **

**Summary Data on Subsidy Cost Estimates **

**Worksheet for the **

**Federal Credit Supplement**

** **

** **

** **

**2002 Budget**

**Table of Contents**

**DIRECT LOANS**

GENERAL INSTRUCTIONS.......................................................................................... D-1

PROGRAM INFORMATION......................................................................................... D-1

CREDIT SUBSIDY WORKSHEET................................................................................. D-2

Direct Loan Program Estimates.............................................................................. D-2

Composition of direct loan subsidy rate...................................................... D-3

Assumptions Underlying Subsidy Estimate.............................................................. D-3

Fees.......................................................................................................... D-4

Defaults..................................................................................................... D-5

Loan disbursement rates............................................................................ D-5

Reestimates........................................................................................................... D-5

Change in subsidy rates............................................................................. D-6

Net amount of lifetime reestimates.............................................................. D-7

Footnotes.............................................................................................................. D-8

APPENDIX A: Direct Loan Example.............................................................................. D-10

**LOAN GUARANTEES**

GENERAL INSTRUCTIONS.......................................................................................... G-1

PROGRAM INFORMATION......................................................................................... G-1

CREDIT SUBSIDY WORKSHEET................................................................................. G-2

Loan Guarantee Program Estimates....................................................................... G-2

Composition of loan guarantee subsidy rate................................................ G-3

Assumptions Underlying Subsidy Estimate.............................................................. G-4

Fees.......................................................................................................... G-4

Defaults..................................................................................................... G-5

Loan disbursement rates............................................................................ G-6

Reestimates........................................................................................................... G-6

Change in subsidy rate............................................................................... G-6

Net amount of lifetime reestimates.............................................................. G-8

Footnotes.............................................................................................................. G-9

APPENDIX
B: Loan Guarantee Example........................................................................ G-10

**DIRECT LOANS**

**GENERAL INSTRUCTIONS**

Please complete the spreadsheet as fully and accurately as possible. The data entered into the spreadsheet should be identical to the OMB Credit Subsidy Calculator input and output data and to the data in the Budget.

The Credit Supplement spreadsheet is now available in both Lotus “wk4” and Microsoft “xls” formats. Agencies may use either format.

To prevent production delays, the spreadsheet is write-protected except in the cells that require data input. Please do not add or delete any rows or columns, or modify the line or item titles.

Submit a spreadsheet for any reestimates that have been performed in the program to date, even if the program is not making any new loans. For reestimates for programs with no new activity, fill out the “Program Information” and “Reestimates” sections only. Please do not modify any other section.

If the Budget includes a legislative proposal to change a direct loan program, then please submit one spreadsheet for the program without the proposed changes and a separate spreadsheet that incorporates the effects of the legislative proposal. For the legislative proposal spreadsheet, enter the total value for each data item, rather than the difference between the original and amended programs.

The spreadsheet contains a column (column K) in which error messages will appear if data has been entered incorrectly (for example, a subsidy rate exceeding 100%). You should eliminate all error messages prior to submitting your responses to OMB; if the program characteristics are correctly entered but result in error messages, please explain the reason in a footnote.

For reference, an example spreadsheet is provided with these instructions.

**PROGRAM INFORMATION**

Provide the following information in the cells specified below.

__Budget
Account Title__ (*cell D11*): Enter the MAX account title of the budget
account.

__MAX
Account Number__ (*cell D12*): Enter the number of the account as it
appears in the MAX database (the OMB account number). (Please note that, as in the example spreadsheet, this number
takes the form xxx-xx-xxxx).

__Loan
Program/Risk Category__ (*cell D13*): Enter the name of the credit program as you
would like it to appear in the Credit Supplement. If possible, use a name that is descriptive to the general
public. For existing programs, consider
using the name used for the program in the previous Credit Supplement. Anything entered in this cell will appear
automatically in cell A17. For
legislative proposals, enter “(Legislative Proposal)” at the end of the title.

__Loan
Type__ (*cell D14 or F14*): Enter an “x” in either the discretionary box
or the mandatory box, as applicable to the program. Do not add any additional spaces, characters, or formatting to
the cell.

__Preparer__
(*cell B15*): Enter your name.

__Phone__
(*cell E15*): Enter your work phone number, including area code.

__Date__
(*cell B16*): Enter the date on which
you are completing the spreadsheet.

**CREDIT SUBSIDY WORKSHEET**

With the exception of footnotes and technical assumptions (the text boxes on lines 45 and 46), only enter numeric data into this part of the worksheet. Do not add text formatting to these numeric data entry cells. Footnote cells are provided next to each data entry cell to accommodate any non-numeric comments or clarifications. (See the footnote cells in the example spreadsheet.) Footnote directions are provided in a separate section below.

__Direct Loan Program Estimates__

This section provides basic information about program size and activity.

1. __Direct loan obligations (in thousands)__: Enter the total direct loan obligations, in
thousands of dollars. This figure
should be identical to the total loan obligations provided in the Budget and in
Schedule G line 1150 of the MAX A-11 database.

*(Enter current year data in cell G21. Enter budget year data in cell I21.)*^{[1]}

2. __Number of loans obligated__: Enter the total number of direct loans
obligated. The direct loan obligations
provided in line 1 is divided by this number of loans to derive the average
loan size that appears in the Credit Supplement. If data on the number of loans is not directly available, the
total loan obligations may be divided by the average loan size to derive the
corresponding number of direct loans.

The worksheet preparer may wish to compare this average loan size as derived by dividing line 1 by line 2 against agency average loan size data. This will ensure that the average loan size as it appears in the Credit Supplement is consistent with actual program activity.

*(Enter current year data in cell G22. Enter budget year data in cell I22.)*

**Composition of direct loan subsidy rate**

This section provides information about the subsidy cost of the program. Use the output from the OMB Credit Subsidy Calculator to fill out this section.

3. __Subsidy percentage__: This is the cost to the Government of the
direct loan program, in percentage terms.
This percentage is the same as Schedule U line 1320.

*(Enter current year data in cell G25. Enter budget year data in cell I25.)*

*Subsidy
percentage due to:*

* *

In
this section, provide the components of the subsidy percentage listed in line
3. The data must be identical to the
OMB Credit Subsidy Calculator output.
Data should be provided in terms of percentage points, rather than as a
proportion of the total subsidy percentage.
For example, if the subsidy percentage is 10.0 and is entirely due to
financing, then 10.0 should be entered into the financing line 4 (rather than
100 percent).* *Please make sure that the data is entered with the correct
sign (positive or negative). Do not
round. The subsidy percentage in line 3
should be equal to the sum of the subsidy components provided in lines 4
through 7.* *(See the presentation of the subsidy percentage components in
the example spreadsheet.)

* *

4. __Financing__: Enter the portion of the subsidy percentage that is due to
financing. This is the subsidy cost
that is incurred when the borrower’s interest rate is less than the Treasury’s
cost of financing.

*(Enter current year data in cell G27. Enter budget year data in cell I27.)*

5. __Net defaults__: Enter the portion of the subsidy percentage
that is due to net defaults. Net
defaults include the subsidy costs of delinquencies, defaults, and unpaid fees,
net of recoveries.

*(Enter current year data in cell G28. Enter budget year data in cell I28.)*

6. __Fees__: Enter the portion of the subsidy percentage that is due to fees,
including up-front fees, annual fees, and other fees. For purposes of this worksheet and the OMB Credit Subsidy
Calculator, “fees” include any non-interest charges imposed on the borrower
(see further detail under fees below).
If any amount appears in this line 6, then there should also be data
provided in the fees section (lines 11-13).
If the program does not have fees, then there should be no data in line
6 or lines 11-13.

*(Enter current year data in cell G29. Enter budget year data in cell I29.)*

7. __All other__: Enter the portion of the subsidy percentage that comes from a
source other than financing, net defaults, or fees.

*(Enter current year data in cell G30. Enter budget year data in cell I30.)*

__Assumptions Underlying Subsidy Estimate__

This section includes information about the program assumptions used in determining the subsidy percentage.

8. __Average contractual loan maturity (in
years)__: Enter the average loan
maturity, in years.

*(Enter current year data in cell G33. Enter budget year data in cell I33.)*

9. __Average contractual loan interest rate__: Enter the contract interest rate charged to
the direct loan borrower. Some programs
include an interest subsidy, so that the effective interest rate paid by the
borrower differs from the contract interest rate. In such cases, use the contract interest rate for the worksheet
and include a footnote providing information on the average effective interest
rate.

*(Enter current year data in cell G34. Enter budget year data in cell I34.)*

10. __Maximum grace period (in years)__: Enter the program grace period, in years.

*(Enter current year data in cell G35. Enter budget year data in cell I35.)*

**Fees**

This section provides information about the fees charged for the direct loan program. For purposes of this worksheet and the OMB Subsidy Calculator, “fees” include any non-interest charges imposed on the borrower. For example, this may include loan origination fees, administrative charges, investigative charges, processing charges, etc. For programs with varying levels of fees, provide the average. The fee amount provided should be that included in the OMB Credit Subsidy Calculator. If there is data in any of the fee lines 11-13, then there should also be data in line 6, subsidy percentage due to fees.

11. __Up-front fees__: Enter the percentage rate for any up-front
fees charged for the direct loan program.

*(Enter current year data in cell G38. Enter budget year data in cell I38.)*

12. __Annual fees__: Enter the percentage rate for any annual
fees charged for the direct loan program.

*(Enter current year data in cell G39. Enter budget year data in cell I39.)*

13. __Other fees__: Enter the percentage rate for any other fees charged for the
direct loan program.

*(Enter current year data in cell G40. Enter budget year data in cell I40.)*

**Defaults**

This section provides information on the default assumptions for the direct loan program.

14. __Lifetime defaults of cohort (as % of
disbursements)__: Provide the
proportion of the total cohort direct loan disbursements anticipated to
default. Because this figure is a
proportion, it should always be a positive number.

* *

*(Enter current year data in cell G43. Enter budget year data in cell I43.)*

15. __Average recovery rate on defaults (as %
of defaults)__: Provide the average
rate of recovery on defaults, as a percentage of defaults. Because this figure is also a proportion, it
should also always be a positive number.

*(Enter current year data in cell G44. Enter budget year data in cell I44.)*

16. __Other outflows__: Enter any other program outflows.

*(Enter current year data in cell G46. Enter budget year data in cell I46.)*

**Loan disbursement rates (as % of original
obligations)**

This section, lines 17-26, provides information on the rate at which the direct loans are disbursed. The rate may be either the average rate of disbursement for individual loans or the total rate of disbursement for the entire cohort. Each of these sets of data should generally add to 100 percent, but may be less due to cancellations.

(*Enter current year cohort disbursement data
in cells G49-G58, as appropriate. Enter
budget year cohort disbursement data in cells I49-I58, as appropriate.*)

__Reestimates__

This section (lines 27-35) provides information about cumulative subsidy reestimates. The purpose of this information is to show how much the subsidy costs of a cohort have changed between the time of loan obligation and the most recent reestimate. Information should be provided on the basis of cohort, not budget year.

**Change in subsidy rates**

__Original
subsidy rate__: The original subsidy
rate is the subsidy rate used at the time of loan obligation. Therefore, this estimate should be the same
in each supplement.

*(Enter the FY 92 cohort original subsidy rate
in cell C64.*

*Enter the FY 93 cohort original subsidy rate
in cell C65.*

*Enter the FY 94 cohort original subsidy rate
in cell C66.*

*Enter the FY 95 cohort original subsidy rate
in cell C67.*

*Enter the FY 96 cohort original subsidy rate
in cell C68.*

*Enter the FY 97 cohort original subsidy rate
in cell C69.*

*Enter the FY 98 cohort original subsidy rate
in cell C70.*

*Enter the FY 99 cohort original subsidy rate
in cell C71.*

*Enter the FY 00 cohort original subsidy rate
in cell C72.)*

__Current
reestimated rate__: The current
reestimated rate reflects the cumulative changes in the estimated subsidy cost
of a cohort since the time of the original subsidy rate. For example, the FY 92 current reestimated
rate should reflect the net effect of all reestimates made in FY 93, FY 94, FY
95, ... through the current fiscal year for the FY 92 cohort. The current reestimated rate should equal
the sum of the original subsidy rate, the % change due to interest, and the %
change due to tech/default.

If no reestimates have been made for a cohort, report the original subsidy rate and leave the current reestimated rate blank.

*(Enter the FY 92 cohort current reestimated
rate in cell E64.*

*Enter the FY 93 cohort** current
reestimated rate in cell E65.*

*Enter the FY 94 cohort current reestimated
rate in cell E66.*

*Enter the FY 95 cohort current reestimated
rate in cell E67.*

*Enter the FY 96 cohort current reestimated
rate in cell E68.*

*Enter the FY 97 cohort current reestimated
rate in cell E69.*

*Enter the FY 98 cohort current reestimated
rate in cell E70.*

*Enter the FY 99 cohort current reestimated
rate in cell E71.*

*Enter the FY 00 cohort current reestimated
rate in cell E72.*)

__%
change due to interest__: Enter the
cumulative interest rate reestimate.
This is the change in the subsidy rate that has resulted from a
difference between the interest rate assumption used to calculate the subsidy
rate at the time of obligation and the actual average interest rate(s)
prevailing during the period of disbursement for the cohort. At a minimum, interest rate reestimates are
made after the cohort is 90 percent disbursed.
This amount should be entered in terms of percentage points, rather than
as a proportion of the total change.
For example, if the current reestimate rate of 7.0% is 2 percentage
points greater than the original subsidy rate of 5.0% and this increase is
solely the result of a change in interest rates, then 2.0 should be entered
into this cell (rather than 100%). (See
the example spreadsheet.)

Report the sum of all interest rate reestimates made prior to the current year. The percentage due to interest will become fixed when the actual disbursement weighted average interest rate is known, but the percentage due to technical/default may continue to fluctuate over time.

(*Enter data for the FY 92 cohort in cell G64.*

*Enter data for the FY 93 cohort in cell G65.*

*Enter data for the FY 94 cohort in cell G66.*

*Enter data for the FY 95 cohort in cell G67.*

*Enter data for the FY 96 cohort in cell G68.*

*Enter data for the FY 97 cohort in cell G69.*

*Enter data for the FY 98 cohort in cell G70.*

*Enter data for the FY 99 cohort in cell G71.*

*Enter data for the FY 00 cohort in cell
G72.)*

__%
change due to tech/default__: Enter
the cumulative technical/default reestimate.
The technical/default reestimate is the change in the subsidy rate that
has resulted from changes in the technical estimates that underlie the cashflow
estimates, such as defaults, repayment patterns, fees, and other factors. It includes the effects of all changes
except interest rate changes. This type
of reestimate is made each year as long as loans in the cohort remain
outstanding. This amount should be
entered in terms of percentage points, rather than as a proportion of the total
change. For example, if the current
reestimate rate of 7.0% is 2 percentage points greater than the original
subsidy rate of 5.0% and this increase is solely the result of a change in
tech/default, then 2.0 should be entered into this cell (rather than
100%). (See the example spreadsheet.)

*(Enter data for the FY 92 cohort in cell
I64.*

*Enter data for the FY 93 cohort in cell I65.*

*Enter data for the FY 94 cohort in cell I66.*

*Enter data for the FY 95 cohort in cell I67.*

*Enter data for the FY 96 cohort in cell I68.*

*Enter data for the FY 97 cohort in cell I69.*

*Enter data for the FY 98 cohort in cell I70.*

*Enter data for the FY 99 cohort in cell I71.*

*Enter data for the FY 00 cohort in cell
I72.)*

**Net amount of lifetime reestimates**

* *

This section (lines 36-44) provides information on the dollar costs associated with subsidy rate reestimates. The amount should include both the subsidy reestimate and the interest on the reestimate. If the cohort has an upward reestimate (that is, the current reestimate rate is greater than the original subsidy rate), then this cost should generally be presented as a positive number. If the cohort has a downward reestimate (that is, the current reestimate rate is less than the original subsidy rate), then this cost should generally be presented as a negative number. (See the example spreadsheet.) For those cases in which the direction of the dollar amount differs from the direction of the current reestimate for some programmatic reason, an explanatory footnote should be provided.

*(Enter data for the FY 92 cohort in cell
E77.*

*Enter data for the FY 93 cohort in cell E78.*

*Enter data for the FY 94 cohort in cell E79.*

*Enter data for the FY 95 cohort in cell E80.*

*Enter data for the FY 96 cohort in cell E81.*

*Enter data for the FY 97 cohort in cell E82.*

*Enter data for the FY 98 cohort in cell E83.*

*Enter data for the FY 99 cohort in cell E84.*

*Enter data for the FY 00 cohort in cell
E85.)*

*Technical Assumptions*

45. __Technical assumptions used in FY 2001
execution subsidy rate estimate__:
Provide a description of the basis used for the technical assumptions
entered into the worksheet. Also, note
the source of the data used to prepare the estimates.

*(Enter current year data beginning in cell
B89. If needed, cell B90 may also be
used.)*

46. __Technical assumptions used in FY 2002
policy subsidy rate estimate__:
Provide a description of the basis used for the technical assumptions
entered into the worksheet. Also, note
the source of the data used to prepare the estimates.

*(Enter budget year data beginning in cell
B96. If needed, cell B97 may also be
used.)*

__Footnotes__

Footnotes may be used as needed to provide further detail and explanation about the program and the program data provided in the worksheet.

Cells
are provided directly to the right of each numeric data entry cell to
accommodate footnotes, with space provided at the end of the worksheet for the
footnote text. In the footnote text
section, the footnote letter should be entered into column B with the
accompanying text entered into column D.
All of the text of a footnote should be entered into a single cell in
column D.^{[2]} Each footnote should be entered into the row
immediately following the previous footnote; there should not be blank rows
between footnotes. Footnotes must be
alphabetical (a, b, c, ...), rather than numeric (1, 2, 3, ...). (See the formatting of footnotes in the
example spreadsheet.)

Enter each footnote as the agency would like it to appear to the general public. The footnote should be clear and easily understood by the general budget reader. Abbreviations not commonly known to the general public should be spelled out. If it is necessary to use technical terms, then the terms should be defined so that they will be clear to the general reader.

**LOAN GUARANTEES**

**GENERAL INSTRUCTIONS**

Please complete the spreadsheet as fully and accurately as possible. The data entered into the spreadsheet should be identical to the OMB Credit Subsidy Calculator input and output data and to the data in the Budget.

The Credit Supplement spreadsheet is now available in both Lotus “wk4” and Microsoft “xls” formats. Agencies may use either format.

To prevent production delays, the spreadsheets are write-protected except in the cells that require data input. Please do not attempt to add or delete any rows or columns, or modify the line or item titles.

Submit a spreadsheet for any reestimates that have been performed in the program to date, even if the program is not making any new loan guarantees. For reestimates for programs with no new activity, fill out the “Program Information” and “Reestimates” sections only. Please do not modify any other section.

If the Budget includes a legislative proposal to change a loan guarantee program, then please submit one spreadsheet for the program without the proposed changes and a separate spreadsheet that incorporates the effects of the legislative proposal. For the legislative proposal spreadsheet, enter the total value for each data item, rather than the difference between the original and amended programs.

The spreadsheet contains a column (column K) in which error messages will appear if data has been entered incorrectly (for example, a subsidy rate exceeding 100%). You should eliminate all error messages prior to submitting your responses to OMB; if the program characteristics are correctly entered but result in error messages, please explain the reason in a footnote.

For reference, an example spreadsheet is provided with these instructions.

**PROGRAM INFORMATION**

Provide the following information in the cells specified below. Do not enter anything into any other cell in this section.

__Budget
Account Title__ (*cell D11*): Enter the MAX account title of the budget
account.

__MAX
Account Number__ (*cell D12*): Enter the number of the account as it
appears in the MAX database (the OMB account number). (Please note that, as in the example spreadsheet, this number
takes the form xxx-xx-xxxx).

__Loan
Program/Risk Category__ (*cell D13*): Enter the name of the program as you would
like it to appear in the Credit Supplement.
If possible, use a name that is descriptive to the general public. For existing programs, consider using the
name used for the program in the previous Credit Supplement. Anything entered in this cell will appear
automatically in cell A17. For
legislative proposals, enter “(Legislative Proposal)” at the end of the title.

__Loan
Type__ (*cell D14 or F14*): Enter an “x” in either the discretionary box
or the mandatory box, as applicable to the program. Do not add any additional spaces, characters, or formatting to
the cell.

__Preparer__
(*cell B15*): Enter your name.

__Phone__
(*cell E15*): Enter your work phone number, including area code.

__Date__
(*cell B16*): Enter the date on which you are completing the spreadsheet.

**CREDIT SUBSIDY WORKSHEET**

With the exception of footnotes and technical assumptions (the text boxes on lines 48 and 49), only enter numeric data into this part of the worksheet. Do not add text formatting to these numeric data entry cells. Footnote cells are provided next to each data entry cell to accommodate any non-numeric comments or clarifications. (See the footnote cells in the example spreadsheet.) Footnote directions are provided in a separate section below.

__Loan Guarantee Program Estimates__

This section provides basic information about program size and activity.

1. __Loan guarantee commitments (in thousands)__: Enter the total loan guarantee commitments,
in thousands of dollars. This figure
should be identical to the total commitments provided in the Budget and in
Schedule H line 2150 of the MAX A-11 database.

*(Enter current year data in cell G21. Enter budget year data in cell I21.)*^{[3]}

2. __Number of loan guarantees committed__: Enter the total number of loan guarantees
committed. The loan guarantee
commitments provided in line 1 is divided by this number of loan guarantees to derive
the average loan size that appears in the Credit Supplement. If data on the number of guaranteed loans is
not directly available, the total loan commitments may be divided by the
average loan size to derive the corresponding number of guaranteed loans.

The worksheet preparer may wish to compare this average loan size as derived by dividing line 1 by line 2 against agency average loan size data. This will ensure that the average loan size as it appears in the Credit Supplement is consistent with actual program activity.

*(Enter current year data in cell G22. Enter budget year data in cell I22.)*

**Composition of loan guarantee subsidy rate**

This section provides information about the subsidy cost of the program. Use the output from the OMB Credit Subsidy Calculator to fill out this section.

3. __Subsidy percentage__: This is the cost to the Government of the
loan guarantee program, in percentage terms.
This percentage is the same as Schedule U line 2320.

*(Enter current year data in cell G25. Enter budget year data in cell I25.)*

* *

*Subsidy
percentage due to:*

* *

In
this section, provide the components of the subsidy percentage listed in line
3. The data must be identical to the
OMB Credit Subsidy Calculator output.
Data should be provided in terms of percentage points, rather than as a
proportion of the total subsidy percentage.
For example, if the subsidy percentage is 10.0 and is entirely due to
financing, then 10.0 should be entered into the financing line 4 (rather than
100 percent).* * Please make sure that the data is entered
with the correct sign (positive or negative).
Do not round. The subsidy
percentage in line 3 should be equal to the sum of the subsidy components
provided in lines 4 through 7.* *(See the presentation of the subsidy
percentage components in the example spreadsheet.)

* *

4. __Financing__: Enter the portion of the subsidy percentage that is due to
financing. This is the cost that is
incurred through Government subsidy of the borrower’s interest cost.

*(Enter current year data in cell G27. Enter budget year data in cell I27.)*

5. __Net defaults__: Enter the portion of the subsidy percentage
that is due to net defaults. Net
defaults include the subsidy costs of delinquencies, defaults, and unpaid fees,
net of recoveries.

*(Enter current year data in cell G28. Enter budget year data in cell I28.)*

6. __Fees__: Enter the portion of the subsidy percentage that is due to fees,
including up-front fees, annual fees, and other fees. For purposes of this worksheet and the OMB Credit Subsidy Calculator,
“fees” include any non-interest charges imposed on the borrower (see further
detail under fees below). If any amount
appears in this line 6, then there should also be data provided in the fees
section (lines 12-16). If the program
does not have fees, then there should be no data in line 6 or lines 12-16.

*(Enter current year data in cell G29. Enter budget year data in cell I29.)*

7. __All other__: Enter the portion of the subsidy percentage that comes from a
source other than financing, net defaults, or fees.

*(Enter current year data in cell G30. Enter budget year data in cell I30.)*

__Assumptions Underlying Subsidy Estimate__

This section includes information about the program assumptions used in determining the subsidy percentage.

8. __Percent of loan principal guaranteed by
Government__: Enter the percent of
loan principal guaranteed under the loan guarantee program. For programs with varying guarantee
percentages, enter the average percent of principal guaranteed. This should be consistent with Schedule H
line 2199.

*(Enter current year data in cell G33. Enter budget year data in cell I33.)*

9. __Average contractual loan maturity (in
years)__: Enter the average loan
maturity, in years.

*(Enter current year data in cell G34. Enter budget year data in cell I34.)*

10. __Average contractual loan interest rate__: Enter the contract interest rate charged to
the guaranteed loan borrower. Some
programs include a subsidy, so that the effective interest rate paid by the
borrower differs from the contract interest rate. In such cases, use the contract interest rate and include a
footnote providing information on the average effective interest rate.

*(Enter current year data in cell G35. Enter budget year data in cell I35.)*

11. __Maximum grace period (in years)__: Enter the program grace period, in years.

*(Enter current year data in cell G36. Enter budget year data in cell I36.)*

**Fees**

This section provides information about the fees charged for the loan guarantee program. For purposes of this worksheet and the OMB Credit Subsidy Calculator, “fees” include any non-interest charges imposed on the borrower. For example, this may include loan origination fees, administrative charges, investigative charges, processing charges, etc. For programs with varying levels of fees, provide the average. The fee amount provided should be that included in the OMB Credit Subsidy Calculator (where applicable). If there is data in any of the fee lines 13, 15, or 16, then there should also be data in line 6, subsidy percentage due to fees.

__Up-front fees__

12. __To lender__: Enter the percentage rate for any up-front fees paid by the
borrower to the lender (and not passed on from the lender to the Government).

*(Enter current year data in cell G40. Enter budget year data in cell I40.)*

13. __To Government__: Enter the percentage rate for any up-front
fees paid by the borrower to the Government, either directly or through the
lender.

*(Enter current year data in cell G41. Enter budget year data in cell I41.)*

__ __

__Annual fees__

14. __To lender__: Enter the percentage rate for any annual fees paid by the
borrower to the lender (and not passed on from the lender to the Government).

*(Enter current year data in cell G43. Enter budget year data in cell I43.)*

15. __To Government__: Enter the percentage rate for any annual
fees paid by the borrower to the Government, either directly or through the
lender.

*(Enter current year data in cell G44. Enter budget year data in cell I44.)*

16. __Other fees__: Enter the percentage rate for any other fees charged for the loan
guarantee program.

*(Enter current year data in cell G45. Enter budget year data in cell I45.)*

**Defaults**

This section provides information on the default assumptions for the loan guarantee program.

17. __Lifetime defaults of cohort (as % of
disbursements)__: Provide the
proportion of the total cohort guaranteed loan disbursements anticipated to
default. Because this figure is a
proportion, it should always be a positive number.

*(Enter current year data in cell G48. Enter budget year data in cell I48.)*

18. __Average recovery rate on defaults (as %
of defaults)__: Provide the average
rate of recovery on defaults. Because
this figure is also a proportion, it should also always be a positive number.

*(Enter current year data in cell G49. Enter budget year data in cell I49.)*

19. __Other outflows__: Enter any other program outflows.

*(Enter current year data in cell G51. Enter budget year data in cell I51.)*

**Loan disbursement rates (as % of original
commitments)**

This section, lines 20-29, provides information on the rate at which the guaranteed loans are disbursed. The rate may be either the average rate of disbursement for individual loans or the total rate of disbursement for the entire cohort. Each of these sets of data should generally add to 100 percent, but may be less due to cancellations.

(*Enter current year cohort disbursement data
in cells G54-G63, as appropriate. Enter
budget year cohort disbursement data in cells I54-I63, as appropriate.)*

__ __

__Reestimates__

This section (lines 30-38) provides information about cumulative subsidy reestimates. The purpose of this information is to show how much the subsidy costs of a cohort have changed between the time of loan guarantee commitment and the most recent reestimate. Information should be provided on the basis of cohort, not budget year.

**Change in subsidy rates**

__Original
subsidy rate__: The original subsidy
rate is the subsidy rate used at the time of loan guarantee commitment. Therefore, this estimate should be the same
in each supplement.

*(Enter the FY 92 cohort original subsidy
rate in cell C69.*

*Enter the FY 93 cohort original subsidy rate
in cell C70.*

*Enter the FY 94 cohort original subsidy rate
in cell C71.*

*Enter the FY 95 cohort original subsidy rate
in cell C72.*

*Enter the FY 96 cohort original subsidy rate
in cell C73.*

*Enter the FY 97 cohort original subsidy rate
in cell C74.*

*Enter the FY 98 cohort original subsidy rate
in cell C75.*

*Enter the FY 99 cohort original subsidy rate
in cell C76.*

*Enter the FY 00 cohort original subsidy rate
in cell C77.)*

__Current
reestimated rate__: The current
reestimated rate reflects the cumulative changes in the estimated subsidy cost
of a cohort since the time of the original subsidy rate. For example, the FY 92 current reestimated
rate should reflect the net effect of all reestimates made in FY 93, FY 94, FY
95, ... through the current fiscal year for the FY 92 cohort. The current reestimated rate should equal
the sum of the original subsidy rate, the % change due to interest, and the %
change due to tech/default.

If no reestimates have been made for a cohort, report the original subsidy rate and leave the current reestimated rate blank.

*(Enter the FY 92 cohort current reestimated
rate in cell E69.*

*Enter the FY 93 cohort current reestimated
rate in cell E70.*

*Enter the FY 94 cohort current reestimated
rate in cell E71.*

*Enter the FY 95 cohort current reestimated
rate in cell E72.*

*Enter the FY 96 cohort current reestimated
rate in cell E73.*

*Enter the FY 97 cohort current reestimated
rate in cell E74.*

*Enter the FY 98 cohort current reestimated
rate in cell E75.*

*Enter the FY 99 cohort current reestimated
rate in cell E76.*

*Enter the FY 00 cohort current reestimated
rate in cell E77.*)

__ __

__%
change due to interest__: Enter the
cumulative interest rate reestimate.
This is the change in the subsidy rate that has resulted from a
difference between the interest rate assumption used to calculate the subsidy
rate at the time of commitment and the actual average interest rate(s) prevailing
during the period of disbursement for the cohort. At minimum, interest rate reestimates are made after the cohort
is 90 percent disbursed. This amount
should be entered in terms of percentage points, rather than as a proportion of
the total change. For example, if the
current reestimate rate of 7.0% is 2 percentage points greater than the
original subsidy rate of 5.0% and this increase is solely the result of a
change in interest rates, then 2.0 should be entered into this cell (rather
than 100%). (See the example
spreadsheet.)

Report the sum of all interest rate reestimates made prior to the current year. The percentage due to interest will become fixed when the actual disbursement weighted average interest rate is known, but the percentage due to technical/default may continue to fluctuate over time.

*(Enter data for the FY 92 cohort in cell
G69.*

*Enter data for the FY 93 cohort in cell G70.*

*Enter data for the FY 94 cohort in cell G71.*

*Enter data for the FY 95 cohort in cell G72.*

*Enter data for the FY 96 cohort in cell G73.*

*Enter data for the FY 97 cohort in cell G74.*

*Enter data for the FY 98 cohort in cell G75.*

*Enter data for the FY 99 cohort in cell G76.*

*Enter data for the FY 00 cohort in cell
G77.)*

__%
change due to tech/default__: Enter
the cumulative technical/default reestimate.
The technical/default reestimate is the change in the subsidy rate that
has resulted from changes in the technical estimates that underlie the cashflow
estimates, such as defaults, repayment patterns, fees, and other factors. It includes the effects of all changes
except interest rate changes. This type
of reestimate is made each year as long as loans in the cohort remain
outstanding. This amount should be
entered in terms of percentage points, rather than as a proportion of the total
change. For example, if the current
reestimate rate of 7.0% is 2 percentage points greater than the original
subsidy rate of 5.0% and this increase is solely the result of a change in
tech/default, then 2.0 should be entered into this cell (rather than 100%). (See the example spreadsheet.)

*(Enter data for the FY 92 cohort in cell
I69.*

*Enter data for the FY 93 cohort in cell I70.*

*Enter data for the FY 94 cohort in cell I71.*

*Enter data for the FY 95 cohort in cell I72.*

*Enter data for the FY 96 cohort in cell I73.*

*Enter data for the FY 97 cohort in cell I74.*

*Enter data for the FY 98 cohort in cell I75.*

*Enter data for the FY 99 cohort in cell I76.*

*Enter data for the FY 00 cohort in cell
I77.)*

**Net amount of lifetime reestimates**

* *

This section (lines 39-47) provides information on the dollar costs associated with subsidy rate reestimates. The amount should include both the subsidy reestimate and the interest on the reestimate. If the cohort has an upward reestimate (that is, the current reestimate rate is greater than the original subsidy rate), then this cost should generally be presented as a positive number. If the cohort has a downward reestimate (that is, the current reestimate rate is less than the original subsidy rate), then this cost should generally be presented as a negative number. (See the example spreadsheet.) For those cases in which the direction of the dollar amount differs from the direction of the current reestimate for some programmatic reason, an explanatory footnote should be provided.

* *

*(Enter data for the FY 92 cohort in cell
E82.*

*Enter data for the FY 93 cohort in cell E83.*

*Enter data for the FY 94 cohort in cell E84.*

*Enter data for the FY 95 cohort in cell E85.*

*Enter data for the FY 96 cohort in cell E86.*

*Enter data for the FY 97 cohort in cell E87.*

*Enter data for the FY 98 cohort in cell E88.*

*Enter data for the FY 99 cohort in cell E89.*

*Enter data for the FY 00 cohort in cell
E90.)*

**Technical Assumptions**

48. __Technical assumptions used in FY 2001
execution subsidy rate estimate__:
Provide a description of the basis used for the technical assumptions
entered into the worksheet. Also, note
the source of the data used to prepare the estimates.

*(Enter current year data beginning in cell
B93. If needed, cell B94-B97 may also
be used.)*

49. __Technical assumptions used in FY 2002
policy subsidy rate estimate__:
Provide a description of the basis used for the technical assumptions
entered into the worksheet. Also, note
the source of the data used to prepare the estimates.

*(Enter budget year data beginning in cell
B100. If needed, cell B101-B104 may
also be used.)*

__Footnotes__

Footnotes may be used as needed to provide further detail and explanation about the program and the program data provided in the worksheet.

Cells
are provided directly to the right of each numeric data entry cell to
accommodate footnotes, with space provided at the end of the worksheet for the
footnote text. In the footnote text
section, the footnote letter should be entered into column B with the
accompanying text entered into column D.
All of the text of a footnote should be entered into a single cell in
column D.^{[4]} Each footnote should be entered into the row
immediately following the previous footnote; there should not be blank rows
between footnotes. Footnotes must be
alphabetical (a, b, c, ...), rather than numeric (1, 2, 3, ...). (See the formatting of footnotes in the
example spreadsheet.)

Enter each footnote as the agency would like it to appear to the general public. The footnote should be clear and easily understood by the general budget reader. Abbreviations not commonly known to the general public should be spelled out. If it is necessary to use technical terms, then the terms should be defined so that they will be clear to the general reader.

^{[1]}For the FY 2002 Credit Supplement, FY 2001 is the
current year and FY 2002 is the budget year.

^{[2]}Microsoft Excel and Lotus 1-2-3 allows users to wrap
text in a cell, so that a single line can include multiple lines of text. In Microsoft Excel, from the “Format” menu,
select “Cells.” The “wrap text” option
is found on the alignment properties sheet.
In Lotus 1-2-3, from the “Range” menu, select “Range properties.” The “wrap text in cell” option is found on
the alignment properties sheet.

^{[3]}For the FY 2002 Credit Supplement, FY 2001 is the
current year and FY 2002 is the budget year.

^{[4]}Microsoft Excel and Lotus 1-2-3 allow users to wrap
text in a cell, so that a single line can include multiple lines of text. In Microsoft Excel, from the “Format” menu,
select “Cells.” The “wrap text” option
is found on the alignment properties sheet.
In Lotus 1-2-3, from the “Range” menu, select “Range Properties.” The “wrap text in cell”
option is found on the alignment properties sheet.