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Small Business Administration: Few Reviews of Guaranteed Lenders Have Been Conducted

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Report Type Reports and Testimonies
Report Date June 11, 1998
Report No. GGD-98-85
Subject
Summary:

This report reviews the Small Business Administration's (SBA) oversight of lenders participating in its 7(a) loan program and its efforts to comply with the preferred lender review requirements of the Small Business Programs Improvement Act of 1996. The 7(a) loan program is intended to serve small business borrowers who cannot otherwise obtain financing under reasonable terms and conditions from the private sector. In fiscal year 1997, 7(a) loan approvals totaled nearly $9.5 billion. GAO determines (1) how SBA conducts on-site reviews to monitor participating lenders' compliance with its 7(a) loan program policies and procedures and (2) what steps SBA is taking to comply with the preferred lender oversight provisions of the Small Business Programs Improvement Act.

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