Small Business Administration

Actions Needed to Strengthen Small Business Lending Company Oversight Gao ID: GAO-01-192 November 17, 2000

The Farm Credit Administration (FCA) reviewed the Small Business Administration's (SBA) oversight of the Small Business Lending Companies (SBLC) program and determined that several areas could be strengthened. SBA officials said that the agency plans to take appropriate action on most of FCA's recommendations to improve the program. However, FCA expressed concern about the financial risk to SBA's loan portfolio associated with less favorable economic conditions. Such conditions could place upward pressure on SBA's 7(a) loan default rates. SBA needs to have access to information that accurately identifies risk in both individual loan and the total portfolio. The initial SBLC examination results have provided some information to aid in such risk identification, but a continued effort is needed.


Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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