Small Business Administration
Status of Small Business Investment Companies Gao ID: T-RCED-95-145 March 28, 1995Licensed and regulated by the Small Business Administration (SBA), the Small Business Investment Company and the Specialized Small Business Investment Company are privately owned and managed firms that fund small businesses through stock purchases and loans for starting, modernizing, and expanding operations. Over the years, GAO has reported on problems with SBA oversight of the Specialized Small Business Investment Company program, such as inadequate documentation of eligibility and prohibitive financial transactions of the program's requirements. This testimony focuses on SBA's oversight, examination, licensing, and liquidation. GAO also discusses implementation of the Three Percent Preferred Stock Repurchase program.