About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

CED-82-57 1 (1982-04-06)

handle is hein.gao/gaobabdcu0001 and id is 1 raw text is: 



REPORT BY THE U S.


General Accounting Office







Additional Efforts Are Needed To

Minimize Lease Guarantee Losses


In 1976, the Small Business Administra-
tion discontinued its program for guar-
anteeing rent payments on C'ommercial and
industrial space for small businesses.
However, SBA remains contingently liable
for outstanding guarantees and pays rent in
the event of defaults on leases.
The majority of lease guarantee defaults
are resolved and losses minimized through
either rerentals or settlements with the
lessors. However, SBA has made sub-
stantial monthly rent payments for some
properties that have remained vacant or are
occupied by tenants who do not pay rent. In
some of these cases, SBA field offices have
not reviewed lessor rerental activities and
have no assurance that efforts are made to
minimize SBA payments. GAO questions
whether some lessors are making more
than a minimum rerental effort to comply
with the guarantee agreement. In two cases
GAO reviewed, SBA field offices have not
pursued rent collections that could offset
SBA losses.
GAO makes recommendations to the
Administrator, SBA, to improve the
servicing of lease guarantee defaults.

   <  D ST%'J

                                                                   118092


                                                                 CED-82-57

   *'fCcout4l                                                  APRIL 6, 1982

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Already a HeinOnline Subscriber?

profiles profiles most