Small Business Administration

The Small Business Administration (SBA) is required to complete eight planning actions that will serve as a basis for funding the development and implementation of a proposed loan monitoring system. GAO evaluated the report produced for SBA's first planning action--a benchmark study by a contractors that compared SBA's loan monitoring business processes to those of selected public and private sector groups. In GAO's view, the study, which identified gaps between SBA's practices and its benchmark partners, was an important first step in developing a loan monitoring system. The study would be more useful, however, if it better defined processes associated with best practices, addressed monitoring processes for important activities delegated to lenders, collected measurement data on SBA's and the benchmark partners' processes, identified goals for reengineering, and identified potential outsourcing and candidate systems for purchase. SBA agreed with this analysis and plans to act on each of these items.

GAO noted that: (1) the benchmark study was an important first step in SBA's efforts to develop a loan monitoring system; (2) it identified wide gaps between SBA's practices and its benchmark partners; (3) however, the study would be more useful if it included a better definition of processes associated with best practices, addressed monitoring processes for important activities delegated to lenders, collected measurement data on SBA's and the benchmark partners' processes, identified goals for reengineering, and identified potential outsourcing and candidate systems for purchase; and (4) SBA agreed with this analysis and stated that it plans to act on each of these items.