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094533 1 (1973-07-19)

handle is hein.gao/gaobadxne0001 and id is 1 raw text is: 


                United States General Accounting Office
                       Washington, D.C.   20548


                                              FOR RELEASE ON DELIVERY
                                              Expected at             EDT
                                              Thursd;   July 19, 1973

                             STATEMENT OF
     HENRY ESCHWEGE, DIRECTOR, RESOURCES AND ECONOMIC DEVELOPMENT
           DIVISION, UNITED STATES GENERAL ACCOUNTING OFFICE
                              BEFORE THE
                   SUBCOMMITTEE ON RURAL DEVELOPMENT
                                OF THE
                 COMMITTEE ON AGRICULTURE AND FORESTRY
                         UNITED STATES SENATE
                                  ON
                WAYS TO IMPROVE EFFECTIVENESS OF RURAL
                        BUSINESS LOAN PROGRAMS

Mr. Chairman and Members of the Subcommittee:

     We are here today at your request to discuss the Comptroller General's
May 1973 report to the Congress on ways to improve the effectiveness of

rural business loan programs administered by the Department of Agriculture's

Farmers Home Administration (FHA).

     Under section 118 of the Rural Development Act of 1972, FHA is authorized

to make, insure, or guarantee loans for improving, developing, or financing

business, industry, and employment in rural communities. These loans may

be made available to public, private, or cooperative organizations. Sections

102 and 121 of the act also authorize FHA to make or insure loans to rural

residents acquiring, establishing, or operating small business enterprises

in rural areas.

     Although the review on which our report was based dealt with FHA's

administration of the now discontinued Economic Opportunity Cooperative





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