This report, submitted pursuant to the Supplemental Report of the 1988 Budget Act, contains our findings and recommendations concerning the State Assistance Fund for Energy, California Business and Industrial Development Corporation (SAFE-BillCO). Specifically, the Supplemental Report directed our office to evaluate SAFE-BillCO's performance in meeting its original statutory goals and to determine the cost-effectiveness of providing financial assistance to small businesses through the use of federal loan guarantees as opposed to other forms of state assistance.